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State of the U.S. Capital Markets - July 2005


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State of the U.S. Capital Markets - July 2005

  1. 1. Jefferies & Company, Inc. State Of The U.S. Capital Markets July 11, 2005 CONFIDENTIAL DRAFT
  2. 2. Table of Contents U.S. Capital Markets Environment 1 M&A And Private Investment Environment 9 Issues Facing New Public Companies 15 Jefferies Broadview Overview 17 i
  3. 3. U.S. Capital Markets Environment 1
  4. 4. U.S. Technology Capital Markets Environment <ul><ul><li>Uncertain economic conditions and outlook have impacted the equity markets </li></ul></ul><ul><ul><ul><li>Interest rate increases have caused equity mutual fund flows to decline to US$6.3B per month in 2005YTD vs. US$10.3B in 1H04 </li></ul></ul></ul><ul><ul><ul><li>While the S&P and NASDAQ indices are down 11% and 4% since 1/1/05, they are still up 9% and 6% respectively, compared to 1 year ago </li></ul></ul></ul><ul><ul><ul><li>High-profile IPOs have had difficulty generating investor interest </li></ul></ul></ul><ul><ul><ul><ul><li>Boise Cascade withdrawn </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Lazard trading below offer price </li></ul></ul></ul></ul><ul><ul><li>The Technology IPO market is also trying to weather the storm. Companies with strong businesses are still able to issue public equity </li></ul></ul><ul><ul><ul><li>The number of quarterly Technology IPO issuances has dropped 50% from Q4 ’04 to Q1 ’05 and continues to decline in Q2 ‘05 </li></ul></ul></ul><ul><ul><ul><li>Despite extremely tough market conditions, China Techfaith Wireless was able to complete its offering, priced within range and has traded up slightly </li></ul></ul></ul><ul><ul><li>The IPO bar is high but the market rewards strong companies </li></ul></ul><ul><ul><ul><li>2005YTD IPOs have a median EBIT margin of 17% and 8 quarters of profitability at pricing </li></ul></ul></ul><ul><ul><ul><li>2004-2005YTD Chinese IPOs are down a median 7% to date from their offer price </li></ul></ul></ul>2
  5. 5. U.S. Market Overview (1) Source: Equidesk and Jefferies Equity Market Overview. Excludes REITs, close-end funds and private placements. (2) As of June 24, 2005. ($Billions) 3
  6. 6. U.S. IPO Market Overview Note: Technology defined per SDC Platinum high technology industry classification. (1) As of June 24 2005. There are currently over 55 Asian companies listed on U.S. exchanges. Approximately 20 of these companies went public in the last 18 months 4
  7. 7. The U.S. And Western Europe Technology IPO Markets Have Demonstrated A Selective Recovery For High Quality Issuers <ul><li>Recent tightening of the IPO and equity capital markets </li></ul><ul><li>The IPO market remains stronger than it was for over the previous three years, particularly in technology (but the “bar” is high) </li></ul><ul><li>Comparable public companies are now benefiting from improved economic conditions and trading at healthier multiples, but IPO backlog remains high </li></ul>U.S. Western Europe Current IPO Environment Tech IPO Activity – Number of Transactions 25 16 137 244 1997 171 204 1998 323 415 1999 398 289 2000 78 23 2001 20 2002 21 2003 2004 59 34 TTM IPO Issuances by Subsector 1 Q1 2003 – Q2 2005 U.S. IT Sector IPOs 1 IPO Backlog (2) # IPOs Historic Tech IPO Activity <ul><li>As of June 17, 2005. </li></ul><ul><li>Source: Capital IQ. </li></ul>2005 YTD 1 19 13 1 2 7 11 9 12 20 18 11 8 0 20 40 60 80 100 Q1 '03 Q2 '03 Q3 '03 Q4 '03 Q1 '04 Q2 '04 Q3 '04 Q4 '04 Q1 '05 Q2 '05 5
  8. 8. Summary Of Median Performance For U.S. Technology IPOs Since Mid-2003 H2 2003 H1 2004 % Companies with Revenue < $25MM 11% 10% % Companies Unprofitable 16% 19% Median Quarters of Profitability 6 5 % Companies Trading Below IPO 37% 52% IPO Performance Statistics H2 2003 $85,000 $72,493 36.3% 6 4.5% 13.5% H1 2004 $86,000 $87,357 54.8% 5 7.6% (3.0%) Offering Amount TTM Revenue TTM Revenue Growth Quarters of Profitability EBIT Margin % Change From IPO (1) TTM H2 2004 $74,300 $47,447 60.3% 3 4.4% 5.3% H2 2004 34% 32% 3 34% YTD 2005 $141,813 $93,436 70.1% 8 17.0% 0.4% Period Median Profile (1) YTD 2005 (1) 5% 26% 8 47% <ul><li>As of June 17, 2005. Source: Jefferies Broadview’s IPO Database / Hoover’s IPO Central / Capital IQ. </li></ul>IPO Statistics (1) 6
  9. 9. Chinese Technology Capital Markets (NASDAQ) Activity In 2004 and 2005 YTD ($Millions) <ul><li>As of 5/30/05. Source: Broadview’s IPO Database / Hoover’s IPO Central / Capital IQ </li></ul>7
  10. 10. Only 6 Non-Chinese Asian Technology Companies Have Gone Public In The U.S. Since January 1, 2004 8
  11. 11. M&A And Private Investment Environment 9
  12. 12. Private Equity / VC Investment Activity For Chinese Technology Companies Continues To Be Strong Representative Chinese Technology Investments Over The Past 12 Months ($Millions) While the majority of investment activity has been in the sub-$20 range, investors are increasingly gaining a higher level of comfort and looking to put more money into larger enterprises VC firms raised a total of U.S.$699 million in 2004 for investing in Mainland China, according to Zero2IPO 10 Japan-China Bridge $6.0 BeyondSoft Jun-05 Carlyle Group $20.0 Target Media Jun-05 Apax, Greylock $20.0 Fiberxon Jun-05 Legend, Doll Capital $6.0-7.0 Worksoft Jun-05 Doll Capital, Walden $10.0 ApexOne Microelectronics Jun-04 IDG, Qualcomm, Tom Online $3.5 Great Wall Software Aug-04 Granite, Intel, International Finance, JAFCO $20.0 HiSoft Oct-04 McGraw-Hill, Tiger NA PRCEdu Jan-05 Granite, Venrock, NEA, Redpoint, Acer, JAFCO, Intel UOB $50.0 BCD Semiconductor Jun-04 DFJ, Google, Integrity, Peninsula Capital, Bridger, China Equity, China Value, Venture TDF $100.0 Baidu Jun-04 Warburg Pincus $70.0 Datang Microelectronics Jul-04 WanJie Group $12.1 King-Hope Jul-04 Carlyle, Qualcomm $3.0 Enorbus Jul-04 2b Holdings, strategic investors $8.3 Smartpay Aug-04 Carlyle $15.0 Target Media Sep-04 IDG $5.0 Oct-04 NA $16.9 Soutec Nov-04 Goldman Sachs, 3i $30.0 Focus Media Nov-04 Carlyle, Chengwei Ventures, Pacific Venture $13.0 Huaya Microelectronics Dec-04 3i $20.0 GST Dec-04 Kongzhong $0.5 eFriendsNet / Yeeyoo Dec-04 Carlyle, China Merchants, Fortune, Sino-Korea Wireless $14.0 9you Dec-04 Tiger Tech $11.0 Dangdang Dec-04 Siemens Mobile Acceleration, Morningside Tech $3.0 LinkRich Jan-05 Rensheng Fund $3.0 Jan-05 Softbank, Shanda $0.6 Blogchina Jan-05 Carlyle Group NA Easyeb Feb-05 TVG Capital, Temasek, Warburg Pincus, DragonTech $37.0 Harbour Networks Mar-05 IDG, Newbridge $12.1 HiChina / MyMai Mar-05 Jafco, Intel NA Pollex Mobile Mar-05 IDG NA Mar-05 TPG, General Atlantic, Newbridge $350 Lenovo Mar-05 IDG, Legend Capital $6.0 Zhongsou Mar-05 Union Fortune Investment $7.6 Gasoft Mar-05 IDG $10 Emay Softcom Apr-05 Legend, Fidelity, IDG $16.0 Zhongsou Apr-05 Gobi Partners, NTT DoCoMo, Dentsu $6.0 Digital Media Group Apr-05 IDG $4.0 Netmovie May-05 IDG $0.2 May-05 IDG, Sumitomo NA Tengwu Digi-Tech May-05 Dragon Groove $5.0 9you May-05 Investor(s) Capital Raised Company Date
  13. 13. While Cross Border M&A Market In China Is Nascent, Deal Frequency Is On The Rise Representative Chinese Technology Cross Border M&A/Strategic Investments Over The Past 12 Months ($Millions) Date Announced Target Name Acquiror Name Transaction Value Transaction Type 4/21/05 PCHome CNET Networks Inc. 11.0 Acquisition 3/30/05 Three-Five System International DisplayWorks 10.4 Acquisition 2/3/05 ChinaHR 50.0 Minority Investment 1/25/05 Reed Elsevier NA Acquisition 1/25/05 PRCEDU Corporation McGraw-Hill Education NA Minority Investment 1/13/05 C-Valley THQ Wireless NA Minority Investment 12/27/04 Digital Media Group NTT DoCoMo 4.2 Minority Investment 12/17/04 Indiagames Tom Online 17.7 Acquisition 12/7/04 IBM PC Business Lenovo Group Ltd. 1,750.0 Acquisition 11/29/04 Actoz Shanda 91.7 Minority Investment 11/25/04 Konka Thomson 19.0 Minority Investment 10/14/04 Zhongguancun On Line Corp CNET Networks Inc. 15.0 Acquisition 10/14/04 Fengniao Photography On Line CNET Networks Inc. 1.0 Acquisition 8/19/04 Ltd Inc 75.0 Acquisition 7/26/04 IAC/InterActiveCorp 60.0 Minority Investment 7/5/04 Davidhill Capital Inc Sina Corp 36.0 Acquisition 6/21/04 Rakuten, Inc. 109.6 Minority Investment 6/15/04 Google Inc. 10.0 Minority Investment 5/11/05 Tsinghua-Shenxun (certain assets) Microsoft Corp. NA Acquisition 3/16/05 Skyinfo Index Corp. 80.0 Acquisition 11
  14. 14. Select Cross Border M&A Transactions Involving Asian Technology Companies Representative Asian (ex-China) Technology Cross Border M&A/Strategic Investments Since 1/1/2004 ($Millions) 12
  15. 15. Select Cross Border Indian Technology Deals In 2004 ($Millions) 13 Ygyan Consulting Ltd Moirai Media Solutions Inc Oramasters Inc Afrocom Technologies Pvt Ltd Daksh eServices Pvt Ltd Paral System Software Pvt Ltd e-Serve International Ltd Webneuron Services Ltd Ivega Corp Pvt Ltd Hughes Software Systems Ltd Netkraft Pvt Ltd Bennett Cole & Co Ltd-Assets EAP Global India Software Group Soft Systems Ltd Future Software Ltd Majoris Systems Pvt Ltd Smart Yantra Technologies Pvt iNuCom Inc EXIMSOFT Technologies Pvt Ltd In-Reality Software Pvt Ltd Mensamind GE Capital International Target Name 2.0 Cognizant Technology Solutions 2/20/04 NA DG2L Technologies Inc 3/17/04 NA Kenexa Corp 4/2/04 NA Financial Objects PLC 4/6/04 150.0-200.0 IBM Corp 4/7/04 3.1 Kewill Systems PLC 4/8/04 .03 Citibank Overseas Invest Corp 4/10/04 8.7 5/23/04 NA TCG Software Services Inc 6/2/04 226.5 Flextronics International Ltd 6/8/04 12.0-15.9 Adea Solutions Inc 6/10/04 NA BBC 6/25/04 NA Sight & Sound Education Ltd 7/6/04 NA Novasoft Information Tech 7/25/04 NA iSmart International Ltd 8/22/04 25.0 Flextronics International Ltd 8/26/04 5.8-10.2 Valtech SA 9/9/04 NA Genesis Microchip Inc 9/16/04 0.3 Ascential Software Corp 10/4/04 NA Trianz Inc 10/6/04 NA Symphony Services Corp 10/19/04 NA Alliance Consulting 10/27/04 NA Investor Group 11/8/04 Transaction Value Acquiror Name Date Announced
  16. 16. Private-Equity Investment Into India From Abroad 14
  17. 17. Issues Facing New Public Companies 15
  18. 18. Common Issues Facing Asian NASDAQ Companies <ul><ul><li>Language barrier for key management team members </li></ul></ul><ul><ul><li>Lack of CFOs with U.S. public company experience </li></ul></ul><ul><li>Credibility of financial forecasts </li></ul><ul><li>Managing Wall Street’s expectations </li></ul><ul><li>Sarbanes-Oxley compliance </li></ul><ul><li>Sarbanes-Oxley costs </li></ul><ul><li>Issues Facing Non-Chinese Companies Listed on U.S. Exchanges </li></ul><ul><li>Competition for investor mindshare versus their Chinese counterparts </li></ul><ul><ul><ul><li>The focus on China has diverted investors’ attention away from companies based in Japan, Hong Kong, Taiwan and Singapore. Companies are being classified as “Non-China” </li></ul></ul></ul><ul><li>Higher size threshold for going public in the U.S. </li></ul><ul><ul><ul><li>Unlike Chinese technology companies which have successfully gone public at market capitalizations below US$500MM, there is a higher implicit size threshold for companies based in other Asian countries </li></ul></ul></ul>16
  19. 19. Jefferies Broadview Overview 17
  20. 20. Jefferies Broadview Delivers The Full Spectrum To Clients <ul><li>Investment Banking </li></ul><ul><li>Leading banking franchise focused on high growth companies </li></ul><ul><li>Over 400 Investment Bankers (nearly 100 in technology) in over 25 offices worldwide </li></ul><ul><li>Equity Offerings – Completed over 245 public equity offerings since 1993 </li></ul><ul><li>M&A - Ranks #1 in Technology M&A advisory assignments for 2004 (1) </li></ul><ul><li>Private Equity - Regular dialogue and relationships with over 250 financial sponsors </li></ul><ul><li>Restructuring - Restructured approximately $150 billion in securities and liabilities </li></ul><ul><li>Equity </li></ul><ul><li>Over 150 account execs cover over 2,000 institutional accounts; make markets in over 4,000 stocks </li></ul><ul><li>#1 volume trader of NASDAQ stocks; handle over 10% of NYSE volume; top 5 trader in nearly 2,000 stocks </li></ul><ul><li>Over 90 research analysts covering over 600 companies, over 70% of companies having a market cap less than $5.0 billion </li></ul><ul><li>Debt </li></ul><ul><li>Dedicated high yield team of over 40 experienced senior professionals </li></ul><ul><li>Integrated sales, trading, research, capital markets and banking functions </li></ul><ul><li>#1 underwriter of mid-cap high yield, led by team that joined Jefferies from Drexel Burnham </li></ul>Investment Banking Equity Asset Management Debt Technology Companies Cash Management Capital Partners High Yield Private Placements Structured Finance Trading Sales Research Capital Markets Industry Coverage Mergers and Acquisitions Financial Sponsors Restructuring Private Client Services Offers A Full Suite Of Investment Banking Products And Services To Serve High Growth Companies Throughout The Corporate Lifecycle <ul><li>Ranked by volume of reported deals. Source: Mergermarket. </li></ul>18
  21. 21. Global Investment Bank With Top Technology Franchise <ul><ul><li>A leading institutional brokerage and investment banking firm – led by one of the most powerful capital markets trading platforms in the industry </li></ul></ul><ul><ul><li>Principal operating subsidiary of Jefferies Group, Inc. (NYSE: JEF), a holding company with an equity market capitalization of over $2 billion and over 1,800 employees in over 25 offices worldwide </li></ul></ul><ul><ul><li>“ Investment grade” ratings by Standard & Poor’s and Moody’s </li></ul></ul><ul><ul><li>#1 performing investment bank by stock price over the last 10 years (1) with over 50% employee ownership </li></ul></ul>(1) Wall Street Journal, March 2004. * Offices of Jefferies Group, Inc. subsidiaries Jefferies International Limited or Quarterdeck Investment Partners, LLC, or affiliate Broadview International LLC. ** Sydney and Melbourne Offices of Australian affiliate, Burdett Buckeridge Young Limited, Israel office affiliate, Axcess International, Inc. Austin San Francisco Los Angeles Dallas Houston New Orleans Chicago Nashville Atlanta Richmond Boston Stamford New York Jersey City Washington* London * Paris* Zurich* Tokyo* Sydney ** Melbourne ** Silicon Valley Hong Kong* $0 $4 $8 $12 $16 $20 $24 $28 $32 $36 $40 $44 12/31/92 11/5/93 9/9/94 7/14/95 5/17/96 3/21/97 1/23/98 11/27/98 10/1/99 8/4/00 6/8/01 4/12/02 2/14/03 12/19/03 10/22/04 Jefferies Share Price ($ U.S.D) $0 $4 $8 $12 $16 $20 $24 $28 $32 $36 $40 $44 12/31/92 11/5/93 9/9/94 7/14/95 5/17/96 3/21/97 1/23/98 11/27/98 10/1/99 8/4/00 6/8/01 4/12/02 2/14/03 12/19/03 10/22/04 Jefferies Share Price ($ U.S.D) Austin Recent Asia Transactions $80,600,000 Initial Public Offering Co - Manager China Finance Online Co. Limited $80,600,000 October 2004 Initial Public Offering Co-Manager China Finance Online Co. Limited $66,000,000 August 2004 has been acquired by $66,000,000 August 2004 has been acquired by $66,000,000 August 2004 has been acquired by $66,000,000 August 2004 has been acquired by $165,100,000 has divested its Handset Division to June 2004 $165,100,000 has divested its Handset Division to Initial Public Offering Co - Manager $106,000,000 December 2004 Ninetowns Digital World Trade Initial Public Offering $106,000,000 December 2004 Ninetowns Digital World Trade Co-Manager Financial Advisor to the Seller June 2004 Financial Advisor to the Seller 19 $0 $4 $8 $12 $16 $20 $24 $28 $32 $36 $40 $44 12/31/92 11/5/93 9/9/94 7/14/95 5/17/96 3/21/97 1/23/98 11/27/98 10/1/99 8/4/00 6/8/01 4/12/02 2/14/03 12/19/03 10/22/04 Jefferies Share Price ($ U.S.D) San Francisco Los Angeles Dallas Houston New Orleans Chicago Nashville Atlanta Richmond Boston Stamford New York Jersey City Washington* London * Paris* Zurich* Tokyo* Sydney ** Melbourne ** Silicon Valley Hong Kong*
  22. 22. Jefferies Broadview Is A Leader In Technology M&A 2004 年媒体及电讯企业并购奖 2004 最大的安全技术项目 2004 软件项目 2003 Technology M&A League Table 2 1 CSFB 20 2 Jefferies Broadview 19 3 Citigroup Inc 16 3 UBS 16 5 Houlihan Lokey 14 Citigroup JP Morgan Credit Suisse First Boston Goldman Sachs Morgan Stanley Jefferies & Company 6 29 5 33 4 33 3 38 2 40 1 44 Rank Financial Advisor 2004 Technology M&A League Table 1 # of Deals Rank Financial Advisor # of Deals <ul><li>Ranked by volume of reported deals. Source: SDC </li></ul><ul><li>Ranked by volume of reported deals. Source: MergerMarket </li></ul>20
  23. 23. Substantial Public Equity Issuance Track Record Focused On High Growth Companies Since 1993, Jefferies has raised over $29 billion through over 240 IPOs and follow-on offerings April 2005 $40,842,000 Follow - On Offering Co - Manager April 2005 $40,842,000 Follow - On Offering Co - Manager $99,000,000 May 2005 Initial Public Offering Co-Manager May 2005 $554,200,000 Initial Public Equity Offering Co-Manger 21 November 2004 $257,933,296 Initial Public Offering Co - Lead Manager November 2004 $257,933,296 Initial Public Offering Co - Lead Manager $78,000,000 March 2005 Initial Public Offering Co-Manager
  24. 24. Superior Aftermarket Distribution Support for our Clients <ul><ul><li>Jefferies Broadview is committed to becoming the top trader of our clients’ stock 1 </li></ul></ul><ul><li>Source: Autex, as of June 1, 2005; data from the later of offering or January 1, 2004. </li></ul>Lead Manager Co-Manager Co-Manager Co-Manager Lead Manager Co-Manager Sole Book Manager Book Running Lead Manager Book Running Lead Manager Co-Lead Manager Lead Manager Co-Lead Manager 22
  25. 25. A Trading Powerhouse Of NASDAQ and OTC Stocks <ul><ul><li>Extensive trading relationships and aftermarket support help maximize valuation of new issues </li></ul></ul><ul><ul><ul><li>Typically top trader in lead-managed underwritings </li></ul></ul></ul><ul><ul><ul><li>#1 or #2 trader in 80% of co-managed underwritings since 2003 </li></ul></ul></ul><ul><ul><li>Continued expansion of our Research Sales group to enhance new issue capabilities </li></ul></ul><ul><ul><ul><li>Our seasoned research sales professionals have previously worked at firms such as Bear Stearns, Lehman Brothers, JP Morgan, Morgan Stanley, Merrill Lynch and Citigroup </li></ul></ul></ul>Top Volume Trader of NASDAQ Stocks Top 5 Trader of NASDAQ Stocks Jefferies’ superior equity sales and trading platform is leveraged by the reach of our Investment Banking clients Source: Autex, January 1, 2004 – December 31, 2004. Market share weighted by total volume traded in Bulletin Board Market, Nasdaq National Market, and Nasdaq Small Cap Market segments as a percentage of total trading; rank does not include trading firms. % of Total Volume Traded 0.0% 5.0% 10.0% 15.0% Jefferies Bear Stearns UBS Citigroup Goldman Sachs FGP Morgan Stanley Merrill Lynch CSFB SG Cowen 23 Bear Stearns Citigroup UBS CSFB Merrill Lynch Jefferies Morgan Stanley RJ JP Morgan Goldman Sachs Number of Stocks 405 1,208 1,248 1,569 1,868 2,188 2,376 2,403 2,566 4,831 0 500 1,000 1,500 2,000 2,500 3,000
  26. 26. Top Tier Equity Research Platform Focused on High Growth Companies <ul><ul><li>19 research professionals dedicated to technology </li></ul></ul><ul><ul><li>620 companies under coverage with emphasis on growth and middle market companies </li></ul></ul><ul><ul><li>Have initiated coverage on over 149 technology companies since January 2004 </li></ul></ul>0 2002 2003 2004 Market Cap. Of Companies Under Coverage: <ul><li>Software Services & Media </li></ul><ul><li>Applications Software Rob Schwartz </li></ul><ul><li>Infrastructure Software Katherine Egbert </li></ul><ul><li>IT Services & Federal IT Joe Vafi </li></ul><ul><li>Internet & New Media Youssef Squali </li></ul><ul><li>Business & IT Services Craig Peckham </li></ul><ul><li>Knowledge Services Richard Close </li></ul><ul><li>Communication & Media </li></ul><ul><li>Romeo Reyes </li></ul><ul><li>Media Robert Routh </li></ul><ul><li>European Software Simon Andrews </li></ul><ul><li>Software, Services & Media </li></ul><ul><li>Derrick Wenger </li></ul><ul><li>IT Services </li></ul><ul><li>Matthew McKay </li></ul><ul><li>Communications & Computing </li></ul><ul><li>Infrastructure </li></ul><ul><li>Network Infrastructure George Notter </li></ul><ul><li>U.S. and European Telecom </li></ul><ul><li>Ian Macleod </li></ul><ul><li>Semiconductors </li></ul><ul><li>John Lau </li></ul><ul><li>Semiconductors Adam Benjamin </li></ul><ul><li>European Hardware Tech Titus Menzies </li></ul><ul><li>Healthcare </li></ul><ul><li>Biotechnology Adam Walsh’ </li></ul><ul><li>Healthcare Delivery & Technology </li></ul><ul><li>Glen Santangelo </li></ul><ul><li>Medical Devices & Diagnostics </li></ul><ul><li>Ryan Rauch </li></ul>24 Other Companies Under Coverage Technology Companies Under Coverage 100 200 300 400 500 600 700
  27. 27. Jefferies’ Equity Research Ranks 2nd in The Wall Street Journal's “Best on the Street 2005 Analysts Survey” Source: The Wall Street Journal 13 th annual “Best on the Street”, May 16 th , 2005 25 0.833 6 5 Avondale Partners 15 0.133 45 6 UBS 0.133 45 6 Banc of America Securities 13 0.171 35 6 Deutsche Bank 12 0.250 24 6 Legg Mason 11 0.261 23 6 Robert W. Baird 10 0.175 40 7 Standard & Poor’s 9 0.184 38 7 A.G. Edwards 8 0.212 33 7 Raymond James 7 0.219 32 7 Wachovia Securities 6 0.259 27 7 Friedman, Billings, Ramsey 5 0.318 22 7 Piper Jaffray 4 0.157 51 8 J.P. Morgan Chase 3 0.421 19 8 Jefferies 2 0.169 59 10 Merrill Lynch 1 Batting Average No. of Qualifying Analysts Total Awards Firm Rank
  28. 28. Jefferies Covers A Wide Range Of Companies Across The Various Technology Verticals Computer Services/Financial Tech. Craig Peckham <ul><li>Automatic Data Processing </li></ul><ul><li>BISYS Group, Inc. </li></ul><ul><li>Ceridien </li></ul><ul><li>Certegy </li></ul><ul><li>Checkfree Corp. </li></ul><ul><li>eFunds </li></ul><ul><li>Equifax </li></ul><ul><li>First Data Corp. </li></ul><ul><li>Fiserv, Inc. </li></ul><ul><li>Global Payments </li></ul><ul><li>Hewitt Associates </li></ul><ul><li>InterCept </li></ul><ul><li>Intuit Inc. </li></ul>Life Sciences – Pharma. Services David Windley, Glen Santagelo <ul><li>aaiPharma, Inc. </li></ul><ul><li>Albany Molecular Research, Inc. </li></ul><ul><li>Alkermes, Inc </li></ul><ul><li>Charles River Laboratories International </li></ul><ul><li>Connectics Corporation </li></ul><ul><li>Covance, Inc. </li></ul><ul><li>Endo Pharmaceuticals Holdings </li></ul><ul><li>Forest Laboratories, Inc </li></ul><ul><li>ICON Plc </li></ul><ul><li>IMS Health, Inc. </li></ul><ul><li>ISTA Pharmaceuticals </li></ul><ul><li>Kendle International, Inc. </li></ul><ul><li>Noven Pharmaceuticals, Inc </li></ul><ul><li>PAREXEL International, Inc. </li></ul><ul><li>PRA International, Inc </li></ul><ul><li>Professional Detailing </li></ul><ul><li>Pharmaceutical Prod. Dev. </li></ul><ul><li>SFBC International,Inc </li></ul><ul><li>Ventiv Health </li></ul><ul><li>AmerisourceBergen Corp </li></ul><ul><li>Cardinal Health </li></ul><ul><li>Caremark Rx </li></ul><ul><li>Express Scripts </li></ul><ul><li>Henry Schein </li></ul><ul><li>McKesson Corp </li></ul><ul><li>Medco Health Solutions </li></ul><ul><li>Owens & Minor </li></ul><ul><li>The Patterson Companies </li></ul>Life Sciences – Biotechnology Adam Walsh, Robin Campbell <ul><li>Abgenix, Inc </li></ul><ul><li>Advanced Magnetics, Inc </li></ul><ul><li>Amgen, Inc. </li></ul><ul><li>Biogen, Inc. </li></ul><ul><li>Cypress Bioscience </li></ul><ul><li>Genentech, Inc. </li></ul><ul><li>Genzyme Corp </li></ul><ul><li>Hollis-Eden Pharmaceutical </li></ul><ul><li>Keryx Biopharmaceuticals </li></ul><ul><li>MannKind Corporation </li></ul>Internet & New Media Youssef Squali <ul><li>aQuantive, Inc </li></ul><ul><li>Ask Jeeves, Inc </li></ul><ul><li>China Finance Online Co </li></ul><ul><li>Earthlink, Inc. </li></ul><ul><li>eBay, Inc. </li></ul><ul><li> </li></ul><ul><li>Google, Inc </li></ul><ul><li>iVillage, Inc </li></ul><ul><li>J2 Global Communications </li></ul><ul><li>Netflix, Inc </li></ul><ul><li>United Online, Inc </li></ul><ul><li>ValueClick, Inc </li></ul><ul><li>Yahoo!, Inc </li></ul>IT Services Joseph Vafi <ul><li>Affiliated Computer Services </li></ul><ul><li>Anteon Corporation </li></ul><ul><li>BearingPoint </li></ul><ul><li>CACI International </li></ul><ul><li>CCC Information Services Group </li></ul><ul><li>Cognizant Technology Solutions </li></ul><ul><li>Computer Services Corporation </li></ul><ul><li>Dynamics Research, Corp. </li></ul><ul><li>Electronic Data Systems </li></ul>Telecom Services & Equipment Richard Klugman, Ian Macleod <ul><li>Alaska Communications </li></ul><ul><li>AT&T Corp. </li></ul><ul><li>BellSouth Corp. </li></ul><ul><li>CenturyTel, Inc. </li></ul><ul><li>Cincinnati Bell </li></ul><ul><li>Citizens Communication </li></ul><ul><li>Commonwealth Telephone </li></ul><ul><li>CT Communications </li></ul><ul><li>Earthlink, Inc </li></ul><ul><li>General Communication </li></ul><ul><li>IDT Corp </li></ul><ul><li>InterNap </li></ul>Application Software Robert Schwartz, Simon Andrews <ul><li>Aspen Technology, Inc </li></ul><ul><li>Cognos </li></ul><ul><li>Hyperion Solutions </li></ul><ul><li>Kronos, Inc </li></ul><ul><li>Manhattan Associates </li></ul><ul><li>MicroStrategy </li></ul><ul><li>Open Text </li></ul><ul><li>RightNow Technologies </li></ul><ul><li> </li></ul><ul><li>Siebel Systems </li></ul><ul><li>Sybase, Inc </li></ul>Media & Entertainment David Brenner, Meredith Fischer, Robert Routh <ul><li>Mediacom Communications </li></ul><ul><li>Carmike Cinemas, Inc </li></ul><ul><li>Central European Media Enterprises </li></ul><ul><li>4Kids Entertainment, Inc </li></ul><ul><li>Cedar Fair, LP </li></ul><ul><li>Crown Media Holdings,Inc </li></ul><ul><li>Insight Communications </li></ul><ul><li>Lions Gate Entertainment </li></ul><ul><li>Marvel Enterprises </li></ul><ul><li>Outdoor Channel Holdings </li></ul><ul><li>Pixar Animation Studios </li></ul><ul><li>Playboy Enterprises </li></ul><ul><li>The Topps Company </li></ul><ul><li>ValueVision Media </li></ul><ul><li>World Wrestling Entertainment </li></ul>Semiconductor Cap Equipment Adam Benjamin <ul><li>Applied Materials, Inc </li></ul><ul><li>Cymer,Inc. </li></ul><ul><li>KLA-Tencor Corporation </li></ul><ul><li>LTX Corporation </li></ul><ul><li>Mattson Technology,Inc </li></ul><ul><li>Nova Measuring Instruments </li></ul><ul><li>Novellus Systems, Inc </li></ul><ul><li>Photronics, Inc </li></ul><ul><li>Rudoplh Technologies, Inc </li></ul><ul><li>Semiconductor Manufacturing Intl. </li></ul>Communications Equipment George Notter <ul><li>ADC Telecommunications </li></ul><ul><li>ADTRAN Corp </li></ul><ul><li>Advanced Fibre Communications </li></ul><ul><li>Carrier Access Corp </li></ul><ul><li>CIENA Corp. </li></ul><ul><li>Lucent Technologies </li></ul><ul><li>Nortel Networks </li></ul><ul><li>Redback Networks, Inc </li></ul><ul><li>Sonus Networks </li></ul><ul><li>Tekelec </li></ul><ul><li>Tellabs, Inc </li></ul><ul><li>Terayon Communications Systems </li></ul>Infrastructure Software Katherine Egbert <ul><li>Akamai Technologies, Inc. </li></ul><ul><li>Altiris, Inc </li></ul><ul><li>BEA Systems Inc </li></ul><ul><li>CheckPoint Software Technologies </li></ul><ul><li>Citrix Systems, Inc </li></ul><ul><li>Internet Security Systems </li></ul><ul><li>McAfee, Inc </li></ul><ul><li>Mercury Interactive Corp </li></ul><ul><li>Novell Inc </li></ul><ul><li>Opsware, Inc </li></ul><ul><li>Red Hat Inc </li></ul><ul><li>RSA Security Inc. </li></ul><ul><li>Secure Computing Corp </li></ul><ul><li>TIBCO Software Inc. </li></ul><ul><li>Websense, Inc. </li></ul><ul><li>Labor Ready </li></ul><ul><li>Manpower </li></ul><ul><li>MoneyGram International </li></ul><ul><li>Online Resources Corp. </li></ul><ul><li>Paychex </li></ul><ul><li>Robert Half International </li></ul><ul><li>SS&C Technologies, Inc. </li></ul><ul><li>Total System Services </li></ul><ul><li>Watson Wyatt </li></ul><ul><li>Infosys Technologies Ltd </li></ul><ul><li>ManTech International Corp. </li></ul><ul><li>MTC Technologies </li></ul><ul><li>Ninetowns Digital </li></ul><ul><li>PEC Solutions </li></ul><ul><li>Perot Systems </li></ul><ul><li>SRA International </li></ul><ul><li>Syntel </li></ul><ul><li>Unisys </li></ul><ul><li>Taiwan Semiconductor Manu </li></ul><ul><li>Therma-Wave Inc </li></ul><ul><li>Ultratech, Inc. </li></ul><ul><li>Cirrus Logic </li></ul><ul><li>Sigmatel </li></ul><ul><li>Silicon Image </li></ul><ul><li>SiRF Technology Holdings </li></ul><ul><li>Omnivision </li></ul><ul><li>SigmaTel </li></ul><ul><li>Silicon Image </li></ul><ul><li>NPS Pharmaceuticals, Inc. </li></ul><ul><li>SciClone Pharmaceuticals </li></ul><ul><li>XOMA, Ltd. </li></ul><ul><li>Acambis </li></ul><ul><li>Cambridge Antibody Technology </li></ul><ul><li>deCODE Genetics </li></ul><ul><li>SkyePharma </li></ul><ul><li>Net2Phone </li></ul><ul><li>Primus Telecom </li></ul><ul><li>Qwest Communications International Inc. </li></ul><ul><li>SBC Communications Inc. </li></ul><ul><li>Sprint FON Group </li></ul><ul><li>SureWest Communications </li></ul><ul><li>United Online, Inc </li></ul><ul><li>Verizon Communications Inc. </li></ul><ul><li>Ericcson ADR </li></ul><ul><li>France Telecom SA </li></ul><ul><li>Hellenic Telecommunications </li></ul><ul><li>Koninklijke(Royal) </li></ul><ul><li>Nokia ADR </li></ul>26
  29. 29. Contact Information CONFIDENTIAL DRAFT <ul><li>DAVID A. LIU Managing Director Technology Investment Banking Jefferies & Company, Inc. Broadview, a division of Jefferies 950 Tower Lane, 18 th Floor Foster City, CA 94404 T: (650) 573-4803 F: (650) 573-4801 Email: [email_address] ; [email_address] </li></ul>