20100414 small cap tech update

1,290 views

Published on

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
1,290
On SlideShare
0
From Embeds
0
Number of Embeds
28
Actions
Shares
0
Downloads
9
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

20100414 small cap tech update

  1. 1. Small Cap Tech Update April 14, 2010 TARGET N/A Recommendation: N/A BREAKOUT 2010: SMALL CAP TECH Canadian publicly listed Small Cap Tech companies have, as a group, significantly outperformed The S&P TSX Index over the past year. Even still, the Small Cap Tech group is trading at an historic discount to the S&P/TSX Index based on P/E multiples over the past five years. As a result, we believe that there is more fundamental value in the group because the earnings discount to the S&P/TSX appears unwarranted. Recovery in technology spending is forming a solid V-shape, repeating a similar pattern to the most recent 2002-2004 technology rebound, which lasted approximately nine quarters. We are in the third quarter of a similar, but more fundamentally sound, recovery. Unlike in 2002, earnings are more prevalent, and balance sheets are generally more solid. In addition, the macro economic conditions appear to be more robust than they were in 2002. A transition from the fixed web to the mobile web is a fundamental and worldwide catalyst that could represent a 10-fold increase in connectivity among the world population. The impact of convergence among the mobile web, social web, and utility computing ecosystems could be more profound than the adoption of the internet itself during the 1990s. Below are some example companies within the S&P/TSX Small Cap Tech sector that participate within the identified ecosystems. Total Cash & LTM LTM 1 Year % TEV/LTM Revenues, 3 Market Cap Equiv. Revenues EBITDA Price Total TEV/LTM Yr CAGR % Share Price ($mm) ($mm) ($mm) ($mm) Change Revenues EBITDA [LTM] Mobile Ecosystem Bridgewater Systems Corporation (TSX:BWC) $ 10.35 $ 253.0 $ 67.3 $ 66.7 $ 12.0 161.5 2.8x 15.5x 29.1 Redknee Solutions, Inc. (TSX:RKN) $ 1.67 $ 99.4 $ 23.5 $ 50.8 $ 6.5 297.6 1.5x 11.7x 9.4 Sandvine Corporation (TSX:SVC) $ 2.11 $ 286.8 $ 88.4 $ 72.1 $ (8.3) 106.0 2.8x NM 21.6 MOSAID Technologies Inc. (TSX:MSD) $ 21.78 $ 256.2 $ 70.3 $ 69.3 $ 40.6 87.9 2.7x 4.6x 20.8 Sierra Wireless Inc. (TSX:SW) $ 8.90 $ 276.4 $ 134.4 $ 526.4 $ 15.8 52.5 0.3x 8.4x 33.5 DragonWave Inc. (TSX:DWI) $ 9.83 $ 363.1 $ 104.0 $ 118.6 $ 15.9 425.4 2.2x 16.3x 85.8 Tranzeo Wireless Technologies Inc. (TSX:TZT) $ 1.42 $ 66.0 $ 1.8 $ 11.6 $ (3.9) 287.0 5.6x NM -13.8 Vecima Networks Inc. (TSX:VCM) $ 7.00 $ 160.0 $ 0.8 $ 97.0 $ 11.3 42.0 1.7x 14.8x 3.8 iseemedia Inc. (TSXV:IEE) $ 0.15 $ 10.5 $ 2.1 $ 2.4 $ (3.4) 40.9 4.1x NM 94.4 Multiplied Media Corporation (TSXV:MMC) $ 0.17 $ 21.8 $ 5.0 $ 0.3 $ (4.0) 164.3 56.1x NM NM Payments and Transaction Processing GuestLogix Inc. (TSX:GXI) $ 1.80 $ 114.6 $ 9.4 $ 18.6 $ 1.0 354.5 6.1x 119.0x 159.5 PNI Digital Media Inc. (TSXV:PN) $ 1.70 $ 57.3 $ 6.5 $ 25.0 $ 6.2 9.5 2.0x 8.3x 70.4 Selectcore Ltd. (TSXV:SCG) $ 0.07 $ 7.2 $ - $ 83.0 $ 0.9 300.0 0.1x 10.5x 34.8 TIO Networks Corp. (TSXV:TNC) $ 0.55 $ 25.4 $ 2.2 $ 21.8 $ (0.1) 22.5 1.1x NM 22.9 Cloud/SaaS Descartes Systems Group Inc. (TSX:DSG) $ 6.32 $ 388.1 $ 94.6 $ 73.8 $ 16.1 55.1 3.7x 16.8x 12.4 iLOOKABOUT Corp. (TSXV:ILA) $ 0.50 $ 15.5 $ 2.2 $ 1.8 $ (2.3) 25.0 7.4x NM 0.0 Cortex Business Solutions Inc. (TSXV:CBX) $ 0.50 $ 68.3 $ 2.5 $ 3.5 $ (3.7) 217.6 18.5x NM 46.8 Source: Capital IQ, Bloomberg, Company Reports Research M|PARTNERS Member of the Investment Industry Regulatory Organization of Canada (IIROC) Participating Organization – Toronto Stock Exchange (TSX) Member Canadian Investor Protection Fund (CIPF) Research • Trading • Advisory
  2. 2. Small Cap Tech Update April 14, 2010 TARGET N/A Recommendation: N/A S&P/TSX vs Small Cap Tech 1-Yr Relative Performance 200 180 42% 160 Outperformance = Happy Tech Investors 140 120 100 80 Nov-05-2009 Nov-19-2009 Jun-04-2009 Jun-18-2009 Jul-02-2009 Jul-16-2009 Jul-30-2009 Jan-14-2010 Jan-28-2010 Apr-09-2009 Apr-23-2009 May-07-2009 May-21-2009 Aug-13-2009 Aug-27-2009 Sep-10-2009 Sep-24-2009 Oct-08-2009 Oct-22-2009 Dec-03-2009 Dec-17-2009 Dec-31-2009 Feb-11-2010 Feb-25-2010 Mar-11-2010 Mar-25-2010 Apr-08-2010 S&P/TSX Composite Index - Share Pricing Index: Small Cap Tech (Equal Weights) - Index Value Source: Capital IQ, M Partners Relative TTM P/E Ratios 30 25 20 32% DISCOUNT = Historical Opportunity = More Happy to Come! 15 10 5 0 Nov-02-2005 Nov-02-2006 Nov-02-2007 Nov-02-2008 Nov-02-2009 May-02-2005 May-02-2006 May-02-2007 May-02-2008 May-02-2009 Aug-02-2005 Aug-02-2006 Aug-02-2007 Aug-02-2008 Aug-02-2009 Feb-02-2006 Feb-02-2007 Feb-02-2008 Feb-02-2009 Feb-02-2010 Source: Bloomberg, Capital IQ, M Partners Index: Small Cap Tech - P/E S&P/TSX *Small Cap Tech Index is made up of 130 technology companies as defined by the TSX with market caps between $5M to $500M Research M|PARTNERS Member of the Investment Industry Regulatory Organization of Canada (IIROC) Participating Organization – Toronto Stock Exchange (TSX) Member Canadian Investor Protection Fund (CIPF) Research • Trading • Advisory
  3. 3. Small Cap Tech Update April 14, 2010 TARGET N/A Recommendation: N/A Small Cap Tech Investors Happy … More Happy to Come! Small cap tech has significantly outperformed the S&P/TSX over the past year – tech investors should be happy Despite 42% outperformance, the index still trades at a 32% TTM PE 3-yr discount to the S&P/TSX – there is more happy to come 5-yr April 1 Revenue Median 2010 CAGR Small cap tech remains a high growth sub-sector - 3 year revenue Tech 18.5x 15.3x 13.4% growth has outperformed the index by 86% S&P/TSX 18.2x 22.2x 7.2% Global technology sector revenue growth implies recovery … a 2002- Spread 0.32x -7.0x 6.2% 2004 redux but with better fundamentals Source: Capital IQ, Bloomberg, M Partners Technology spending recovery in 2002 was v-shaped and lasted 9 quarters Current indications imply another v-shaped recovery – we are in the 3rd quarter of the recovery We believe the recovery in spending may be more robust than in 2002 due to the following catalysts: Transition from fixed to mobile web Technology replacement cycle Cloud computing / SaaS Global Technology Sector Revenue & Y/Y Growth, CQ1:96 – CQ4:09E $600 40% 30% $500 Average Y/Y Growth = 10% 20% Quarterly Revenue ($B) $400 Y/Y Growth (%) 10% $300 0% $200 Similar Patterns -10% $100 -20% $ -30% CQ3:09E CQ1:96 CQ3:96 CQ1:97 CQ3:97 CQ1:98 CQ3:98 CQ1:99 CQ3:99 CQ1:00 CQ3:00 CQ1:01 CQ3:01 CQ1:02 CQ3:02 CQ1:03 CQ3:03 CQ1:04 CQ3:04 CQ1:05 CQ3:05 CQ1:06 CQ3:06 CQ1:07 CQ3:07 CQ1:08 CQ3:08 CQ1:09 Revenue ($B) Y/Y Growth (%) Source: Economy + Internet Trends, Mary Meeker, Morgan Stanley Web 2.0 Summit, October 20, 2009 Research M|PARTNERS Member of the Investment Industry Regulatory Organization of Canada (IIROC) Participating Organization – Toronto Stock Exchange (TSX) Member Canadian Investor Protection Fund (CIPF) Research • Trading • Advisory
  4. 4. Small Cap Tech Update April 14, 2010 TARGET N/A Recommendation: N/A ROI Performance of Technology Companies 12 Month Return 100.0 88.4 80.0 72.6 62.9 60.0 % Return 40.0 20.0 0 Mega Cap Large Cap Mid Cap Small Cap (20.0) (11.0) Large Cap Mid Cap Small Cap Mega Cap (>$5B) ($5B>X>$1B) ($1B>X>$500M) ($500M>X>$5M) Count 1 6 3 130 Source: Capital IQ Like Finding a Needle in a Needle Store There are 130 companies with market caps of between $5M to $500M (See Appendix A) Small caps have significantly outperformed mid and large caps Over 27% (35/130) of small caps were homeruns, returning over 100% Only 34 of 130 companies showed negative returns Only 10 of 35 homeruns have analyst coverage Median daily volume on the homeruns were 130,500 (1 year) and 160,000 (3 months) Median daily dollar value traded were $58,000 (1 year) and $93,500 (3 months) This is Not 1999 or Even 2002 45% of small cap tech companies are TTM EBITDA positive vs 13.2% in Metals & Mining TSX/TSXV sub- sector 48% generate cash flow from operations $0.21 of cash for every $1.00 of market cap Low degree of leverage - median debt to capital ratio is 10.2% Research M|PARTNERS Member of the Investment Industry Regulatory Organization of Canada (IIROC) Participating Organization – Toronto Stock Exchange (TSX) Member Canadian Investor Protection Fund (CIPF) Research • Trading • Advisory
  5. 5. Appendix A: Small Cap Technology Companies % Price % Price % Price Fwd P/E - Avg Daily Volume Avg Daily Avg Daily Value Avg Daily Value Cash & LTM Cash Change [1 Change [3 Change [1 TEV/LTM Total TEV/LTM Capital IQ Last 3 Months Volume Last Traded Last 3 Traded Last Year Gross Margin EBITDA Margin Total Debt/Capital Total Revenues, 3 Company Name Market Cap ($mm) Equiv. ($mm) Flow Ops Month] Months] Year] Revenues EBITDA [NTM] (x) [Latest] Year [Latest] Months [Latest] [Latest] % [LTM] % [LTM] % [Latest Quarter] Yr CAGR % [LTM] Electrovaya Inc. (TSX:EFL) 196.6 5.2 0.2 268.4 233.3 1265.9 48.8x NM - 613,000 272,000 1,570,000 506,000 58.8 6.34 - 6.12 Star Navigation Systems Group Ltd. 55.7 1.2 (1.7) 6.4 176.7 654.5 176.3x NM - (36.0) - NM - (TSXV:SNA) 943,000 394,000 305,000 95,000 Zarlink Semiconductor Inc. (TSX:ZL) 210.4 61.9 21.0 3.0 71.3 606.1 1.1x 7.9x 7.8x 497,000 305,000 781,000 311,000 49.2 13.3 45.8 12.4 SENSIO Technologies, Inc. (TSXV:SIO) 140.4 2.9 (2.0) 48.9 (2.8) 600.0 206.4x NM - 410,000 336,000 921,000 688,000 62.8 - 6.07 21.9 Azure Dynamics Corp. (TSX:AZD) 151.3 33.6 (17.1) 25.0 13.6 455.6 13.3x NM - 843,000 993,000 179,000 202,000 (54.4) (274.5) 4.95 17.7 DragonWave Inc. (TSX:DWI) 382.3 104.0 14.4 (0.6) (25.9) 425.4 2.2x 16.6x 9.3x 586,000 390,000 6,410,000 3,550,000 39.9 13.4 - 85.8 VRX Worldwide, Inc. (TSXV:VRW) 5.19 0.3 0.6 (3.2) (6.3) 400.0 1.0x 4.4x - 13,000 22,000 2,000 2,000 57.9 21.0 391.5 18.8 GuestLogix Inc. (TSX:GXI) 111.4 9.4 4.9 11.5 63.6 354.5 6.1x 119.0x 23.6x 311,000 151,000 434,000 182,000 59.2 5.13 37.0 159.5 Diagnos Inc. (TSXV:ADK) 25.8 1.8 (1.8) 31.6 12.4 334.8 80.6x NM - 98,000 113,000 41,000 32,000 25.5 - - (27.9) TransGaming, Inc. (TSXV:TNG) 43.4 0.9 (0.8) (5.0) (27.6) 322.2 12.3x NM - 40,000 65,000 30,000 42,000 65.4 (30.2) 27.5 34.5 Wavefront Technology Solutions Inc. 181.7 14.0 (5.5) 2.9 (5.6) 320.0 115.1x NM - 45.2 - 0.173 45.0 (TSXV:WEE) 219,000 394,000 502,000 626,000 Selectcore Ltd. (TSXV:SCG) 8.19 0 0.1 6.7 45.5 300.0 0.1x 10.5x - 190,000 170,000 11,000 9,000 5.43 1.11 NM 34.8 Redknee Solutions, Inc. (TSX:RKN) 99.4 23.5 0.6 9.9 53.2 297.6 1.5x 12.2x 15.8x 225,000 223,000 308,000 244,000 77.7 12.8 - 9.38 Tranzeo Wireless Technologies Inc. 69.2 1.8 (0.3) (12.4) (0.7) 287.0 6.2x NM - 27.2 (33.8) 5.97 (13.8) (TSX:TZT) 299,000 184,000 445,000 199,000 Route1 Inc. (TSXV:ROI) 50.5 0.3 (1.3) 100.0 100.0 271.4 13.4x NM - 1,160,000 790,000 91,000 56,000 56.4 (70.3) - 101.4 Eurocontrol Technics, Inc. (TSXV:EUO) 14.8 0.7 (0.8) 38.1 11.5 262.5 5.0x 28.7x - 14,000 30,000 4,000 7,000 79.3 16.2 19.4 74.1 Zaio Corp. (TSXV:ZAO) 10.1 0.0 (3.0) (7.4) 13.6 257.1 NM NM - 60,000 79,000 7,000 9,000 100.0 - NM (91.9) Cortex Business Solutions Inc. (TSXV:CBX) 73.7 2.5 (2.2) (1.8) 120.4 217.6 21.3x NM - (67.1) (105.5) - 46.8 389,000 199,000 164,000 60,000 Espial Group, Inc. (TSX:ESP) 12.5 8.7 (2.1) (11.0) 74.5 187.1 0.4x NM - 16,000 31,000 14,000 13,000 75.7 (19.7) 3.06 4.57 20-20 Technologies Inc. (TSX:TWT) 63.4 22.2 3.8 11.7 11.7 165.9 0.9x 5.9x 15.3x 4,000 13,000 14,000 35,000 74.6 15.3 20.8 0.046 Multiplied Media Corporation (TSXV:MMC) 24.5 0 0 (24.5) (22.9) 164.3 - 0.0x - - - - - Bridgewater Systems Corporation (TSX:BWC) 249.4 67.3 22.2 (2.4) 22.9 161.5 2.7x 15.2x 17.2x 68.6 18.0 - 29.1 78,000 78,000 726,000 555,000 Alter NRG Corp. (TSX:NRG) 127.8 24.8 (11.6) 0.5 (21.9) 130.0 37.9x NM - 45,000 42,000 96,000 81,000 47.6 - 0.158 - Synergex Corp. (TSX:SYX) 8.66 1.1 10.9 (14.4) (8.3) 126.5 0.2x NM - 15,000 18,000 7,000 7,000 21.8 (0.89) 46.6 (4.82) Decision Dynamics Technology Ltd. 5.38 2.4 (2.5) (10.0) 80.0 125.0 1.0x NM - 67.3 (42.9) - (23.0) (TSXV:DDY) 58,000 55,000 5,000 4,000 EnWave Corp. (TSXV:ENW) 43.6 1.7 (1.4) (11.8) (14.3) 125.0 82.0x NM - 99,000 94,000 98,000 70,000 5.59 - - 147.5 Cantronic Systems, Inc. (TSXV:CTS) 26.8 0.6 (5.4) (28.4) 15.3 119.4 2.9x NM 10.5x 130,000 136,000 43,000 36,000 44.7 (1.42) 4.84 61.1 CriticalControl Solutions Corp. (TSX:CCZ) 30.4 1.0 1.5 (5.3) (7.7) 118.2 1.5x 8.1x - 57,000 67,000 39,000 36,000 49.5 16.9 41.8 10.8 Tucows Inc. (AMEX:TCX) 45.7 9.6 6.5 (4.9) 10.1 117.1 0.5x 5.5x - 212,000 125,000 164,000 83,000 28.4 8.75 9.38 7.57 AeroMechanical Services Ltd. (TSXV:AMA) 55.9 0 (2.4) 1.9 (3.6) 116.0 10.8x NM - 50.2 (89.8) NM 83.4 203,000 185,000 102,000 79,000 Quorum Information Technologies Inc. 7.07 0.9 0.7 (28.0) 5.9 111.8 1.1x 8.1x - 58.9 13.9 9.57 4.48 (TSXV:QIS) 28,000 24,000 5,000 3,000 Wanted Technologies Corporation 8.28 2.5 0.7 (11.5) 1.5 109.1 1.2x 8.4x - 96.5 13.9 9.35 29.4 (TSXV:WAN) 21,000 24,000 7,000 6,000 Sandvine Corporation (TSX:SVC) 280.0 88.4 (0.1) 10.8 32.1 106.0 3.1x NM 60.6x 570,000 543,000 943,000 736,000 74.0 (11.5) - 21.6 CRS Electronics Inc. (TSXV:LED) 9.27 0.3 (0.9) 8.0 62.0 102.5 4.3x NM - 49,000 36,000 37,000 20,000 30.0 (26.9) 32.8 - OneMove Technologies Inc. (TSXV:OM) 5.55 0.2 0.3 45.5 60.0 100.0 3.1x NM - 220,000 162,000 13,000 8,000 45.2 (9.89) 12.0 36.0 DDS Wireless International Inc. (TSX:DD) 22.8 1.6 3.9 (2.9) 10.7 94.1 0.6x 9.3x - 3,000 4,000 4,000 5,000 46.4 6.31 1.77 14.7 Matrikon Inc. (TSX:MTK) 114.4 5.2 (0.5) (0.5) 15.9 91.1 1.5x 18.4x 10.6x 32,000 28,000 112,000 71,000 54.0 7.17 - 2.32 Serenic Corp. (TSXV:SER) 5.31 3.1 1.4 (16.7) (25.5) 89.2 0.2x 3.2x - 26,000 17,000 10,000 6,000 71.4 6.29 0.655 14.9 MOSAID Technologies Inc. (TSX:MSD) 258.6 70.3 37.4 (8.4) 6.6 87.9 2.9x 4.6x 9.6x 60,000 41,000 1,270,000 726,000 86.3 58.6 - 20.8 Dynex Power Inc. (TSXV:DNX) 26.1 2.5 2.6 16.1 6.6 85.7 1.0x 8.4x - 15,000 20,000 8,000 11,000 22.7 11.1 60.6 17.8 Glentel Inc. (TSX:GLN) 173.5 16.1 10.0 (1.5) 12.8 85.4 0.5x 5.1x - 13,000 11,000 188,000 136,000 42.2 10.1 1.76 19.4 Icron Technologies Corp. (TSXV:IT) 8.89 2.5 (0.2) (4.8) 11.1 81.8 0.7x NM - 19,000 17,000 8,000 6,000 52.2 (2.14) - 19.2 Wi-Lan Inc. (TSX:WIN) 298.0 94.8 0.1 (5.8) (4.3) 81.4 6.7x 13.8x - 260,000 266,000 719,000 615,000 88.4 48.3 - - Call Genie Inc. (TSX:GNE) 12.0 3.4 (7.1) (9.4) (23.7) 81.3 4.1x NM - 40,000 79,000 7,000 12,000 40.5 (291.7) 88.5 70.9 01 Communique Laboratory Inc. (TSX:ONE) 11.3 1.8 (1.1) (8.3) (6.4) 76.0 26.6x NM - 99.1 (285.7) 80.8 (2.51) 46,000 57,000 10,000 11,000 Member of the Investment Industry Regulatory Organization of Canada (IIROC) Research Participating Organization – Toronto Stock Exchange (TSX) Member Canadian Investor Protection Fund (CIPF) M|PARTNERS Research • Trading • Advisory
  6. 6. % Price % Price % Price Fwd P/E - Avg Daily Volume Avg Daily Avg Daily Value Avg Daily Value Cash & LTM Cash Change [1 Change [3 Change [1 TEV/LTM Total TEV/LTM Capital IQ Last 3 Months Volume Last Traded Last 3 Traded Last Year Gross Margin EBITDA Margin Total Debt/Capital Total Revenues, 3 Company Name Market Cap ($mm) Equiv. ($mm) Flow Ops Month] Months] Year] Revenues EBITDA [NTM] (x) [Latest] Year [Latest] Months [Latest] [Latest] % [LTM] % [LTM] % [Latest Quarter] Yr CAGR % [LTM] Prestige Telecom, Inc. (TSXV:PR) 24.8 0.0 (2.5) 0.0 (8.7) 75.0 0.4x 16.6x 7.6x 73,000 121,000 14,000 26,000 20.8 2.51 62.0 - Computer Modelling Group Ltd. (TSX:CMG) 325.4 28.9 14.5 8.6 19.7 73.0 6.9x 13.2x 20.4x 95.6 50.0 - 27.2 24,000 26,000 369,000 388,000 Aptilon Corporation (TSXV:APZ) 35.8 0.5 (0.1) 35.7 18.8 72.7 5.0x NM - 113,000 320,000 17,000 30,000 67.1 (10.4) 77.7 - Mediagrif Interactive Technologies Inc. 93.9 32.3 3.4 11.6 12.7 72.6 1.4x 6.4x 16.9x 78.1 20.7 - (1.42) (TSX:MDF) 15,000 15,000 90,000 70,000 MKS Inc. (TSX:MKX) 118.0 22.1 8.9 1.6 20.7 71.3 1.6x 10.9x 19.6x 8,000 6,000 89,000 54,000 79.3 13.7 - 7.13 Aastra Technologies Ltd. (TSX:AAH) 484.8 116.9 68.1 12.3 3.6 69.5 0.5x 4.6x - 34,000 51,000 1,040,000 1,400,000 45.9 10.5 9.84 11.5 Wellpoint Systems Inc. (TSXV:WPS) 8.18 0.5 1.8 (20.0) (34.7) 68.4 1.1x 4.4x - 74,000 71,000 13,000 11,000 70.6 24.7 94.4 31.9 Mad Catz Interactive Inc. (AMEX:MCZ) 25.5 5.8 5.0 (11.5) 24.3 64.3 0.5x 5.1x 4.4x 286,000 349,000 130,000 137,000 30.1 9.9 77.3 5.74 Hosted Data Transaction Solutions Inc. 13.9 1.1 0.0 (16.9) (10.9) 63.3 1.4x NM - 60.8 (7.93) 3.78 71.1 (TSX:HDX) 10,000 41,000 5,000 13,000 Sangoma Technologies Corp. (TSXV:STC) 24.1 7.4 3.3 (6.8) (13.7) 57.7 1.5x 3.9x 5.7x 67.6 35.6 0.676 26.1 35,000 39,000 31,000 28,000 Enghouse Systems Ltd. (TSX:ESL) 201.3 89.8 16.0 2.3 (2.3) 55.5 1.5x 6.2x 17.0x 9,000 31,000 66,000 203,000 68.2 22.5 - 10.5 Gennum Corporation (TSX:GND) 251.5 37.0 (4.7) 17.2 52.0 55.4 2.5x 22.8x 15.1x 68,000 64,000 395,000 306,000 71.4 10.2 - (4.63) Descartes Systems Group Inc. (TSX:DSG) 388.7 94.6 16.5 (0.3) 1.0 55.1 3.9x 16.7x - 68.6 21.8 - 12.4 171,000 166,000 1,100,000 912,000 Sierra Wireless Inc. (TSX:SW) 274.2 134.4 47.7 3.2 (31.4) 52.5 0.3x 8.1x - 172,000 152,000 1,720,000 1,330,000 32.8 3.0 0.17 33.5 Opsens Inc. (TSXV:OPS) 24.8 2.1 (2.8) (14.9) (36.7) 50.0 6.3x NM - 77,000 53,000 57,000 43,000 38.0 (52.3) 6.62 54.3 D-Box Technologies Inc. (TSXV:DBO.A) 41.4 2.4 (5.2) 17.6 21.2 48.1 8.7x NM - 110,000 109,000 39,000 35,000 41.1 (116.1) 1.14 5.47 Tecsys Inc. (TSX:TCS) 24.5 7.5 1.8 (2.9) (0.5) 47.4 0.6x 7.3x - 5,000 9,000 10,000 15,000 45.5 8.24 20.7 5.48 Functional Technologies Corp. (TSXV:FEB) 21.9 1.1 (3.1) 6.5 29.4 46.7 - NM - - - 13.3 - 55,000 48,000 36,000 25,000 Logibec Groupe Informatique Ltee (TSX:LGI) 183.8 1.2 20.8 1.9 (1.2) 43.4 2.9x 8.3x 15.6x 55.3 33.1 25.5 22.2 8,000 6,000 158,000 109,000 Pure Technologies Ltd. (TSXV:PUR) 155.7 15.6 (3.0) 10.8 6.8 42.4 4.6x 31.5x - 22,000 22,000 96,000 85,000 65.1 14.2 - 53.9 QHR Technologies Inc. (TSXV:QHR) 18.5 0.5 2.5 (10.1) 22.4 42.0 1.8x 7.2x - 32,000 29,000 20,000 16,000 58.9 22.5 24.0 35.1 Vecima Networks Inc. (TSX:VCM) 162.3 0.8 (1.3) 5.2 14.5 42.0 1.8x 15.0x 9.0x 16,000 12,000 102,000 64,000 38.7 11.6 5.5 3.83 iseemedia Inc. (TSXV:IEE) 10.8 2.1 (3.5) (13.9) (26.2) 40.9 4.7x NM - 154,000 162,000 26,000 26,000 90.8 (143.7) 47.6 94.4 Advent Wireless Inc. (TSXV:AWI) 9.67 7.8 0.5 6.6 1.3 39.7 0.1x 0.9x - 11,000 9,000 7,000 6,000 36.7 11.2 - 2.26 Natcore Technology, Inc. (TSXV:NXT) 7.07 0 0 11.1 (7.7) 34.8 - 0.0x - - - 2.42 - EXFO Inc (TSX:EXF) 372.5 71.8 11.3 4.3 38.8 33.2 1.5x 16.5x 22.7x 60,000 52,000 353,000 231,000 61.6 9.59 - 8.21 Calian Technologies Ltd. (TSX:CTY) 141.5 34.2 32.9 3.2 3.8 28.4 0.5x 4.4x 10.1x 6,000 9,000 94,000 144,000 21.6 11.0 - 7.49 Craig Wireless Systems Ltd (TSX:CWG) 35.1 1.7 (9.6) 185.7 268.4 27.3 31.7x NM - 46,000 30,000 28,000 12,000 72.7 - 40.3 - Nightingale Informatix Corporation 20.5 1.9 0.7 11.5 20.8 26.1 1.4x 39.2x - 72.3 3.51 75.6 14.4 (TSXV:NGH) 21,000 63,000 5,000 15,000 Intrinsyc Software International Inc. (TSX:ICS) 12.2 11.7 (2.3) 0.0 (40.0) 25.0 0.0x NM - 55.7 (6.99) 0.327 - 524,000 544,000 44,000 55,000 TIO Networks Corp. (TSXV:TNC) 22.6 2.2 0.0 (5.8) (9.3) 22.5 1.0x NM - 26,000 42,000 13,000 23,000 27.4 (0.352) 3.89 22.9 RDM Corp. (TSX:RC) 18.9 16.2 0.3 15.2 0.0 21.3 0.1x NM - 13,000 12,000 11,000 11,000 42.0 (4.86) - (9.37) Mint Technology Corp. (TSXV:MIT) 6.31 0.0 (3.0) 4.4 0.0 20.0 10.7x NM - 198,000 107,000 21,000 11,000 (160.9) - NM 18.0 Dynetek Industries Ltd. (TSX:DNK) 7.02 1.3 (1.4) 11.7 (6.9) 19.6 0.5x 16.4x - 23,000 17,000 7,000 6,000 19.4 2.51 23.4 (0.269) Redline Communications Group Inc. 7.02 5.0 (4.9) (26.7) (40.0) 15.8 0.1x NM - 35.5 (32.8) 25.1 10.1 (TSX:RDL) 38,000 38,000 15,000 16,000 Radiant Communications Corp. (TSXV:RCN) 10.2 3.2 2.0 (6.1) (8.8) 13.4 0.3x 4.0x 31.0x 41.9 5.5 2.85 15.4 12,000 16,000 11,000 13,000 Axia NetMedia Corp. (TSX:AXX) 108.7 32.3 29.4 (0.6) 3.0 12.6 1.3x 7.6x 39.5x 41,000 59,000 69,000 86,000 37.0 17.0 7.66 13.4 VIQ Solutions Inc. (TSXV:VQS) 30.7 0.8 0.4 5.7 17.5 12.1 2.8x NM - 83,000 91,000 26,000 23,000 43.4 (0.156) 19.5 2.75 Resin Systems Inc. (TSX:RS) 55.5 1.9 (24.8) (17.1) (15.9) 11.5 12.0x NM - 231,000 208,000 72,000 69,000 (80.4) (275.0) 357.2 25.9 March Networks Corporation (TSX:MN) 64.9 50.2 5.5 (2.9) (5.1) 10.8 0.2x NM - 50,000 30,000 191,000 113,000 43.8 (3.36) - (0.879) PNI Digital Media Inc. (TSXV:PN) 58.3 6.5 7.7 6.1 2.4 9.5 2.3x 8.5x 13.4x 21,000 20,000 33,000 32,000 75.1 24.6 3.69 70.5 Peer 1 Network Enterprises, Inc. (TSX:PIX) 126.1 7.6 18.8 (2.8) (3.7) 8.3 1.5x 5.6x 25.2x 41.1 25.5 26.7 9.57 21,000 45,000 23,000 51,000 Empower Technologies Corp. (TSXV:EPT) 12.0 0.0 (1.7) 40.0 21.7 7.7 NM NM - 59.9 - NM - 39,000 24,000 9,000 6,000 Healthscreen Solutions Inc. (TSXV:MDU) 12.8 1.3 (0.0) (8.6) (38.5) 6.7 1.1x 17.9x - 66,000 56,000 12,000 10,000 78.3 5.47 57.6 - Groupe Odesia Inc. (TSXV:ODS) 5.71 0.4 0.8 18.2 73.3 4.0 0.6x NM - 74,000 52,000 11,000 8,000 (6.87) (6.8) 93.9 - Ballard Power Systems Inc. (TSX:BLD) 224.4 82.2 (27.0) 10.8 11.7 3.1 3.0x NM - 111,000 123,000 289,000 295,000 12.7 (76.6) 1.28 (2.12) Xebec Adsorption Inc. (TSX:XBC) 28.4 5.4 (3.2) (19.0) (14.7) 1.3 1.4x NM - 16,000 16,000 15,000 13,000 22.6 (30.5) 18.6 - Member of the Investment Industry Regulatory Organization of Canada (IIROC) Research Participating Organization – Toronto Stock Exchange (TSX) Member Canadian Investor Protection Fund (CIPF) M|PARTNERS Research • Trading • Advisory
  7. 7. % Price % Price % Price Fwd P/E - Avg Daily Volume Avg Daily Avg Daily Value Avg Daily Value Cash & LTM Cash Change [1 Change [3 Change [1 TEV/LTM Total TEV/LTM Capital IQ Last 3 Months Volume Last Traded Last 3 Traded Last Year Gross Margin EBITDA Margin Total Debt/Capital Total Revenues, 3 Company Name Market Cap ($mm) Equiv. ($mm) Flow Ops Month] Months] Year] Revenues EBITDA [NTM] (x) [Latest] Year [Latest] Months [Latest] [Latest] % [LTM] % [LTM] % [Latest Quarter] Yr CAGR % [LTM] Computer Modelling Group Ltd. (TSX:CMG) 325.4 28.9 14.5 8.6 19.7 73.0 6.9x 13.2x 20.4x 95.6 50.0 - 27.2 24,000 26,000 369,000 388,000 Aptilon Corporation (TSXV:APZ) 35.8 0.5 (0.1) 35.7 18.8 72.7 5.0x NM - 113,000 320,000 17,000 30,000 67.1 (10.4) 77.7 - Mediagrif Interactive Technologies Inc. 93.9 32.3 3.4 11.6 12.7 72.6 1.4x 6.4x 16.9x 78.1 20.7 - (1.42) (TSX:MDF) 15,000 15,000 90,000 70,000 MKS Inc. (TSX:MKX) 118.0 22.1 8.9 1.6 20.7 71.3 1.6x 10.9x 19.6x 8,000 6,000 89,000 54,000 79.3 13.7 - 7.13 Aastra Technologies Ltd. (TSX:AAH) 484.8 116.9 68.1 12.3 3.6 69.5 0.5x 4.6x - 34,000 51,000 1,040,000 1,400,000 45.9 10.5 9.84 11.5 Wellpoint Systems Inc. (TSXV:WPS) 8.18 0.5 1.8 (20.0) (34.7) 68.4 1.1x 4.4x - 74,000 71,000 13,000 11,000 70.6 24.7 94.4 31.9 Mad Catz Interactive Inc. (AMEX:MCZ) 25.5 5.8 5.0 (11.5) 24.3 64.3 0.5x 5.1x 4.4x 286,000 349,000 130,000 137,000 30.1 9.9 77.3 5.74 Hosted Data Transaction Solutions Inc. 13.9 1.1 0.0 (16.9) (10.9) 63.3 1.4x NM - 60.8 (7.93) 3.78 71.1 (TSX:HDX) 10,000 41,000 5,000 13,000 Sangoma Technologies Corp. (TSXV:STC) 24.1 7.4 3.3 (6.8) (13.7) 57.7 1.5x 3.9x 5.7x 67.6 35.6 0.676 26.1 35,000 39,000 31,000 28,000 Enghouse Systems Ltd. (TSX:ESL) 201.3 89.8 16.0 2.3 (2.3) 55.5 1.5x 6.2x 17.0x 9,000 31,000 66,000 203,000 68.2 22.5 - 10.5 Gennum Corporation (TSX:GND) 251.5 37.0 (4.7) 17.2 52.0 55.4 2.5x 22.8x 15.1x 68,000 64,000 395,000 306,000 71.4 10.2 - (4.63) Descartes Systems Group Inc. (TSX:DSG) 388.7 94.6 16.5 (0.3) 1.0 55.1 3.9x 16.7x - 68.6 21.8 - 12.4 171,000 166,000 1,100,000 912,000 Sierra Wireless Inc. (TSX:SW) 274.2 134.4 47.7 3.2 (31.4) 52.5 0.3x 8.1x - 172,000 152,000 1,720,000 1,330,000 32.8 3.0 0.17 33.5 Opsens Inc. (TSXV:OPS) 24.8 2.1 (2.8) (14.9) (36.7) 50.0 6.3x NM - 77,000 53,000 57,000 43,000 38.0 (52.3) 6.62 54.3 D-Box Technologies Inc. (TSXV:DBO.A) 41.4 2.4 (5.2) 17.6 21.2 48.1 8.7x NM - 110,000 109,000 39,000 35,000 41.1 (116.1) 1.14 5.47 Tecsys Inc. (TSX:TCS) 24.5 7.5 1.8 (2.9) (0.5) 47.4 0.6x 7.3x - 5,000 9,000 10,000 15,000 45.5 8.24 20.7 5.48 Functional Technologies Corp. (TSXV:FEB) 21.9 1.1 (3.1) 6.5 29.4 46.7 - NM - - - 13.3 - 55,000 48,000 36,000 25,000 Logibec Groupe Informatique Ltee (TSX:LGI) 183.8 1.2 20.8 1.9 (1.2) 43.4 2.9x 8.3x 15.6x 55.3 33.1 25.5 22.2 8,000 6,000 158,000 109,000 Pure Technologies Ltd. (TSXV:PUR) 155.7 15.6 (3.0) 10.8 6.8 42.4 4.6x 31.5x - 22,000 22,000 96,000 85,000 65.1 14.2 - 53.9 QHR Technologies Inc. (TSXV:QHR) 18.5 0.5 2.5 (10.1) 22.4 42.0 1.8x 7.2x - 32,000 29,000 20,000 16,000 58.9 22.5 24.0 35.1 Vecima Networks Inc. (TSX:VCM) 162.3 0.8 (1.3) 5.2 14.5 42.0 1.8x 15.0x 9.0x 16,000 12,000 102,000 64,000 38.7 11.6 5.5 3.83 iseemedia Inc. (TSXV:IEE) 10.8 2.1 (3.5) (13.9) (26.2) 40.9 4.7x NM - 154,000 162,000 26,000 26,000 90.8 (143.7) 47.6 94.4 Advent Wireless Inc. (TSXV:AWI) 9.67 7.8 0.5 6.6 1.3 39.7 0.1x 0.9x - 11,000 9,000 7,000 6,000 36.7 11.2 - 2.26 Natcore Technology, Inc. (TSXV:NXT) 7.07 0 0 11.1 (7.7) 34.8 - 0.0x - - - 2.42 - EXFO Inc (TSX:EXF) 372.5 71.8 11.3 4.3 38.8 33.2 1.5x 16.5x 22.7x 60,000 52,000 353,000 231,000 61.6 9.59 - 8.21 Calian Technologies Ltd. (TSX:CTY) 141.5 34.2 32.9 3.2 3.8 28.4 0.5x 4.4x 10.1x 6,000 9,000 94,000 144,000 21.6 11.0 - 7.49 Craig Wireless Systems Ltd (TSX:CWG) 35.1 1.7 (9.6) 185.7 268.4 27.3 31.7x NM - 46,000 30,000 28,000 12,000 72.7 - 40.3 - Nightingale Informatix Corporation 20.5 1.9 0.7 11.5 20.8 26.1 1.4x 39.2x - 72.3 3.51 75.6 14.4 (TSXV:NGH) 21,000 63,000 5,000 15,000 Intrinsyc Software International Inc. (TSX:ICS) 12.2 11.7 (2.3) 0.0 (40.0) 25.0 0.0x NM - 55.7 (6.99) 0.327 - 524,000 544,000 44,000 55,000 TIO Networks Corp. (TSXV:TNC) 22.6 2.2 0.0 (5.8) (9.3) 22.5 1.0x NM - 26,000 42,000 13,000 23,000 27.4 (0.352) 3.89 22.9 RDM Corp. (TSX:RC) 18.9 16.2 0.3 15.2 0.0 21.3 0.1x NM - 13,000 12,000 11,000 11,000 42.0 (4.86) - (9.37) Mint Technology Corp. (TSXV:MIT) 6.31 0.0 (3.0) 4.4 0.0 20.0 10.7x NM - 198,000 107,000 21,000 11,000 (160.9) - NM 18.0 Dynetek Industries Ltd. (TSX:DNK) 7.02 1.3 (1.4) 11.7 (6.9) 19.6 0.5x 16.4x - 23,000 17,000 7,000 6,000 19.4 2.51 23.4 (0.269) Redline Communications Group Inc. 7.02 5.0 (4.9) (26.7) (40.0) 15.8 0.1x NM - 35.5 (32.8) 25.1 10.1 (TSX:RDL) 38,000 38,000 15,000 16,000 Radiant Communications Corp. (TSXV:RCN) 10.2 3.2 2.0 (6.1) (8.8) 13.4 0.3x 4.0x 31.0x 41.9 5.5 2.85 15.4 12,000 16,000 11,000 13,000 Axia NetMedia Corp. (TSX:AXX) 108.7 32.3 29.4 (0.6) 3.0 12.6 1.3x 7.6x 39.5x 41,000 59,000 69,000 86,000 37.0 17.0 7.66 13.4 VIQ Solutions Inc. (TSXV:VQS) 30.7 0.8 0.4 5.7 17.5 12.1 2.8x NM - 83,000 91,000 26,000 23,000 43.4 (0.156) 19.5 2.75 Resin Systems Inc. (TSX:RS) 55.5 1.9 (24.8) (17.1) (15.9) 11.5 12.0x NM - 231,000 208,000 72,000 69,000 (80.4) (275.0) 357.2 25.9 March Networks Corporation (TSX:MN) 64.9 50.2 5.5 (2.9) (5.1) 10.8 0.2x NM - 50,000 30,000 191,000 113,000 43.8 (3.36) - (0.879) PNI Digital Media Inc. (TSXV:PN) 58.3 6.5 7.7 6.1 2.4 9.5 2.3x 8.5x 13.4x 21,000 20,000 33,000 32,000 75.1 24.6 3.69 70.5 Peer 1 Network Enterprises, Inc. (TSX:PIX) 126.1 7.6 18.8 (2.8) (3.7) 8.3 1.5x 5.6x 25.2x 41.1 25.5 26.7 9.57 21,000 45,000 23,000 51,000 Empower Technologies Corp. (TSXV:EPT) 12.0 0.0 (1.7) 40.0 21.7 7.7 NM NM - 59.9 - NM - 39,000 24,000 9,000 6,000 Member of the Investment Industry Regulatory Organization of Canada (IIROC) Research Participating Organization – Toronto Stock Exchange (TSX) Member Canadian Investor Protection Fund (CIPF) M|PARTNERS Research • Trading • Advisory

×