Professional Documents
Culture Documents
Web 2.O Weekly: Launched Coverage of Poynt Developer, M Ulti Pli Ed Media
Web 2.O Weekly: Launched Coverage of Poynt Developer, M Ulti Pli Ed Media
2,000 BlackBerry
Development
Challenge
Grand Prize
1,500 European
Poynt launches in UK expansion
1,000
Poynt
available on
500 BlackBerry
App World
Poynt launches in Germany
-
Oct-08
Dec-08
Feb-09
Apr-09
Jun-09
Aug-09
Oct-09
Dec-09
Feb-10
Apr-10
This report has been created b y Anal ysts that are emplo yed b y Research Capital Corporation, a Canadian Investment Dealer.
For further disclosures, please see last page of this report.
w w w . r e s e a rc h c a p i t a l . c o m
T o ro n t o 4 1 6 . 8 6 0 . 7 6 0 0 Montreal 514.399.1500 Vancouver 604.662.1800 Calgary 403.265.7400 Regina 306.566.7550
Page 2
C A P I T A L M A R K E T S A C T I V I T Y (M & A A N D F I N A N C I N G )
November – making some big deals: Total transaction value in the W eb 2.0 universe for November is $201.9 million.
November has shown improvement with the number of financings up to 17 averaging $11.9 million each (vs. an average of
$9.4 million over 14 deals as of last week). In comparison, total capital raised in October was $171.3 million, averaging
$6.3 million (27 deals); September was $232.8 million, averaging $9.0 million (26 deals); and August was $221.6 million,
averaging $7.6 million (29 deals).
400.0 16.0
14.6
350.0 14.0
11.9
300.0 12.0
11.1
250.0 10.0
9.0
(US$m)
(US$m)
200.0 7.6 8.0
7.1
6.7 6.6
6.5 6.3
6.2
150.0 5.6 6.0
4.9
100.0 4.0
50.0 2.0
0.0 0.0
Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09
Deal round-up for November: The large deal highlights for the month include:
• Playfish – the UK-based social gaming company – was acquired by Electronic Arts in a deal potentially valued up
to $400 million.
• Playdom – social network-based games developer– raised $43 million in its first venture financing.
• Sezmi – maker of set top box tech – raised $25 million in a third round of VC funding.
• Phoenix New Media – the subsidiary of Phoenix Television, a popular Chinese news portal and media site – raised
$25 million from Intel Capital and Bertelsmann Asia Investment Fund.
• Motley Fool – the financial information site – raised $25 million in an unattributed financing.
• Millennial Media – a mobile media network – raised $16 million in Series C funds.
• Qunar.com – a Beijing-based travel price aggregation site – received $15 million in funding.
• Zynga – developer of popular Facebook game, Farmville, among others – raised $15 million in its third financing.
All other deals in the month were in the amount of $10 million or less. For additional details on financings, see Figures 23
and 24 (at end of note).
200.0
180.0
160.0
140.0
120.0
Nov-09
(US$m)
100.0 Oct-09
Sep-09
80.0
60.0
40.0
20.0
0.0
Phoenix New Media
DailyMotion
Millennial Media
Jive Software
Mzinga
InXpo
NextBio
Motley Fool
Yext
Box.net
Reality Mobile
HiveLive
Fwix
Skype
PlayFish
Mint
Twitter
Playfire
NowPublic
Ecast Network
Livebookings
Zynga
Dopplr
Evernote
Ooyala
Jobvite
wooga
Aviary
Eventbrite
AppNexus
Booyah
YuMe
Mocapay
Vantrix
Fizzback
MashLogic
Overtone
Greystripe
Tiny Pictures
DataSync
DailyBooth
Linkedex
Fluther
Scoopler
OnLive
SocialMedia
RockYou
Ensequence
Engine Yard
Sezmi
HubSpot
Spigit
ScanScout
CubeTree
Vuclip
Placecast
Altruik
Vdopia
NeoEdge
Scout Labs
Unisfair
Conduit Labs
ViVu
Credit Karma
Blekko
Godengo
Loomia
FourSquare
EduFire
Onehub
Hot Potato
Technorati
StatusNet
IngBoo
Chango
Adfonic
Listia
Aurora Feint
VEVO
PopCap Games
Qunar.com
FeedRoom
Riot Games
Alice.com
Sometrics
Amie Street
Prosper.com
TransGaming Inc.
Imeem
Watercooler
Gamelab.com
Social Networks the most active sector: Social Networks experienced the most financing activity among our W eb 2.0
sector categories in the past three months by number of transactions (nine). Advertising continues to be among the
highest activity sectors in the past quarter (eight deals). Gaming and Collaboration-related companies have been hot
recently, garnering the third highest number of deals (seven each). (Figure 4). The $2.0 billion acquisition of Skype skews
the dollars transacted to the SMS/Voice segment, while the $400 million acquisition of Playfish brings the Virtual W orlds
segment to the second highest total. Finally, the $170 million acquisition of Mint brings the Vertical Communities segment
into third place.
200.0
180.0
160.0
140.0
120.0
(US$m)
100.0
80.0
60.0
40.0
20.0
2,025.0 417.1 178.3 102.0 100.9 93.3 57.0 51.4 50.0 49.9 45.5 37.5 30.0 25.6 18.6 17.2 16.2 15.0 13.0 10.0 9.9 7.0 6.4 4.0 3.6 2.2
0.0
Social Commerce
Communities
Gaming
Documents
Travel
Microblog
Media
Collaboration
Enterprise
Mobile
Publishing
Music
Financial Services
Widget
SMS/Voice
Infrastructure
Search
Mobile Ad
Classified
Social Networks
Virtual World
Video
Advertising
Crowdsourced
Aggregation
Analytics
Vertical
Content
# companies
1 4 2 7 2 6 3 9 1 8 7 3 4 2 3 2 5 1 4 1 2 2 2 3 2 1
C A P I T A L M A R K E T S A C T I V I T Y (P R I C E P E R F O R M A N C E )
Web 2.0 index continues to outpace NASDAQ recovery: Our W eb 2.0 index (market-cap weighted) essentially mirrored
the performance of the NASDAQ composite index from mid-2008 until Q1/09. Since then, the index has diverged in a much
stronger recovery relative to the NASDAQ index (Figure 5).
250
200
150
100
50
0
11/24/2008
12/8/2008
12/22/2008
1/5/2009
1/19/2009
2/2/2009
2/16/2009
3/2/2009
3/16/2009
3/30/2009
4/13/2009
4/27/2009
5/11/2009
5/25/2009
6/8/2009
6/22/2009
7/6/2009
7/20/2009
8/3/2009
8/17/2009
8/31/2009
9/14/2009
9/28/2009
10/12/2009
10/26/2009
11/9/2009
11/23/2009
Index: Web 2.0 (Market Cap) ^COMP - Share Pricing
Market pull-back continues: Twelve companies in our universe had positive stock price performances over the past week
(for stocks with prices greater than $1) (Figure 6), while 30 companies showed negative 1-week returns.
P U B L I C C O M P A N Y I N D U S T R Y N E W S (P A R T N E R S H I P S , F I N A N C I A L R E S U L T S , N E W P R O D U C T S )
K ey Developments
C ompany Headline Notes
E xtens ions , Inc . (OTC P K : E XTI) E xtens ions , Inc. a nnounced dela yed 10-Q O n 11/16/2009, E xtens ions , Inc. a nnounced tha t they will be unable to file their next 10-Q by the deadline required by the
filing S EC.
is eemedia Inc . (TS XV: IE E ) is eemedia Inc. a nnounced it expects to receive is eemedia Inc. (T S XV : IE E ) announced a private pla cement of 15, 625, 000 units a t a price of C AD 0. 16 per unit for gros s
C AD 2. 5 million in funding. proceeds of C AD 2. 5 million on November 16, 2009. E a ch unit will cons is t of one common s ha re and one-half of one
common s hare purcha s e warra nt. E ach wa rrant entitles the holder to purchas e one common s ha re of the compa ny a t C AD
0. 32 for a period of 24 months .
Northern S ecurities Inc. a cted as a placement a gent to the tra ns action. T he agent will ha ve the option to purcha s e up to a n
a dditional 3, 125, 000 units at C AD 0. 16 per unit, for a dditional gros s proceeds of up to $500, 000 prior to clos ing of the
trans a ction. T he s ecurities is s ued a re s ubject to a hold period of four months . T he tra ns action is expected to clos e by
December 11, 2009. Northern S ecurities Inc. will receive a ca s h commis s ion of 8% of the gros s proceeds . In a ddition the
a gent will als o receive a work fee of C AD 25, 000.
P erfec t W orld C o., L td. P erfect W orld C o. L td. R eports C ons olida ted P erfect W orld C o. L td. reported cons olidated una udited ea rnings res ults for the third qua rter ended S eptember 30, 2009. F or
(Nas daqG S : P WR D) Unaudited E arnings R es ults for the T hird the quarter, tota l revenues were R MB 589, 994, 239 agains t R MB 381, 802, 248 a yea r ago. O pera ting profit wa s R MB
Q uarter E nded S eptember 30, 2009 ; P rovides 297, 665, 297 a ga ins t R MB 200, 004, 263 a yea r a go. P rofit before ta x was R MB 300, 066, 077 agains t R MB 207, 573, 759 a
E arnings G uidance for the F ourth Q uarter of yea r ago. Net income was R MB 289, 013, 119 a gains t R MB 198, 803, 747 a yea r ago. Net income attributable to the
2009 compa ny's s ha reholders was R MB 288, 321, 111 or R MB 1. 10 per bas ic a nd diluted s hare a gains t R MB 198, 803, 747 or R MB
0. 67 per bas ic a nd diluted s hare a yea r ago. Net ea rnings per ADS diluted were R MB 5. 50 agains t R MB 3. 34 a year ago.
Net ca s h provided by opera ting a ctivities wa s R MB 326, 332, 320 a ga ins t R MB 265, 481, 664 a yea r a go. C a pital expenditure
on purcha s e of property, equipment, a nd s oftware wa s R MB 59, 754, 724 agains t R MB 62, 749, 284 a yea r a go. Non-G AAP
opera ting profit wa s R MB 317, 891, 325 aga ins t R MB 213, 364, 826 a year a go. Non-G AAP net income a ttributa ble to the
compa ny's s ha reholders was R MB 308, 547, 139 a gains t R MB 212, 164, 310 a yea r a go. Non-G AAP net ea rnings per ADS Diluted wa s
F or the fourth qua rter of 2009, the compa ny's tota l revenues a re expected to be between R MB 578 million a nd R MB
602 million, repres enting a decline of 2% to an increa s e of 2% on a s equentia l ba s is and an increa s e of 38% to 44% on
a yea r-over-yea r ba s is . T his reflects the expected growth from the company's exis ting ga mes a nd the a nticipated
contribution from the newly la unched F a ntas y Zhu Xian.
B etawave C orporation (OTC B B : B WAV) B etawa ve C orporation R eports C ons olida ted B eta wa ve C orporation reported cons olidated earnings res ults for the third qua rter and nine months ended S eptember 30,
E arnings R es ults for the T hird Q uarter a nd 2009. T he compa ny's tota l revenues decrea s ed to $1, 725, 499 from $2, 786, 139 for the three months of 2009. T his is
Nine Months E nded S eptember 30, 2009 ; primarily becaus e reta il a dvertis ing, which compris ed the ma jority of the compa ny's third qua rter 2008 revenue, wa s one of
P rovides R evenue G uida nce for the F ourth the advertis ing s ectors hardes t hit by the recent economic cris is . F or the quarter, net los s wa s $4, 331, 469 or $0. 15 per ba s ic
Q uarter of 2009 and F irs t Qua rter of 2010 a nd diluted s ha re a ga ins t $3, 249, 036 or $0. 13 per ba s ic a nd diluted s ha re la s t year.
S NAP Interac tive, Inc. (OTC B B : S TVI) S NAP Intera ctive Inc. R eports E arnings S NAP Interactive Inc. reported ea rnings res ults for the third quarter a nd nine months ended S eptember 30, 2009. F or the
R es ults for the T hird Q uarter a nd Nine Months qua rter, the company reported revenue decreas ed from $871, 324 to $801, 120 for the three months ended S eptember 30,
E nded S eptember 30, 2009 2009, a decrea s e of $70, 204. T hes e revenues are prima rily genera ted from a dvertis ements a nd premium features pla ced on
various applica tions . Net Income decreas ed to $22, 736 from $410, 283 for the three months ended S eptember 30, 2008,
repres enting a decrea s e of $387, 547. T he decreas e in net income wa s prima rily due to the provis ion for income taxes which
were not incurred during mos t of the s ame period las t yea r due to a net opera ting los s carry-forwa rd from previous quarters ,
increa s ed expens es due to the hiring of additiona l s ta ff a nd the overall expa ns ion of operations , a s well as decreas ed
a dvertis ing payouts a nd the revenue recognition impa ct of s hift to a s ubs cription model in which revenue is recognized on a
deferred ba s is when s ubs criptions occur over more
than a s ingle month. T he decrea s e in revenue for the three months ended S eptember 30, 2009 a s compa red to the
s a me period in 2008 is primarily due to decrea s ed advertis ing payouts as well a s the revenue recognition impact of
s hift to a s ubs cription model in which revenue is recognized on a deferred ba s is when s ubs criptions occur over more
NeXplore C orporation (OTC P K : NXP C ) NeXplore C orporation Announces NeXplore C orporation a nnounced the a ddition of two former Micros oft executives to the company's s trategic development
Ma nagement Appointments team a nd boa rd of a dvis ors . Ama r Nehru, former general ma nager, emerging ma rkets group for Micros oft C orporation, a nd
Ha ni Ima m, former genera l ma na ger, finance opera tions for Micros oft C orpora tion, will provide s tra tegic guida nce to
NeXplore's s enior executive team in s upport of the compa ny's a ggres s ive bus ines s and revenue growth goals . During his 12-
yea r tenure with Micros oft C orporation, Ama r Nehru held numerous s enior mana gement pos itions while contributing to
Micros oft's market expa ns ion a nd revenue growth. Mos t recently, Nehru s erved as general ma na ger, emerging markets
group for Micros oft C orpora tion, where he led bus ines s development a nd market s trategy for Micros oft's mobile a nd low-cos t
computing bus ines s es . Ha ni Imam's career with Micros oft s pans a cros s 10 yea rs and touches on virtua lly a ll a s pects of
corpora te financia l a nd a ccounting operations , including reporting, pla nning, forecas ting and inves ting. As general ma nager,
Imam led a corporate initia tive to improve worldwide fina nce proces s es , s ys tems a nd orga niza tions in the a rea s of cus tomer propos a
contra cts , credit, revenue a s s ura nce and collections .
K ey Developments
C ompany Headline Notes
W izzard S oftware C orporation W izza rd S oftwa re C orporation R eports W izzard S oftwa re C orpora tion reported earnings res ults for the third quarter of 2009. T he company recorded revenues of
(AME X: W ZE ) E arnings R es ults for the T hird Q uarter of 2009 $1, 384, 218, a 10% decrea s e from revenues of $1, 533, 339 in the third quarter of 2008. T he decreas e for the third quarter of
2009 reflects a decrea s e in revenue in hea lthca re bus ines s s egment due to the economic reces s ion, primarily due to a
decreas e in s ta ffing revenues within B illings , Monta na hea lthca re s ubs idiary. T he compa ny's net los s a vailable to common
s ha reholders wa s $1, 508, 249, or $0. 03 per s hare, in the third quarter of 2009, vers us a net los s of $1 460, 219, or $0. 03 per
s ha re, in the third qua rter of 2008. Included in the net los s wa s non-cas h charges of $909, 154 for interes t expens e on the
dis count of notes pa ya ble a nd the re-pricing of warra nts .
E olith C o. L td. (K OS E : A041060) E olith C o. Ltd. ha s filed a F ollow-on E quity E olith C o. L td. has filed a F ollow-on E quity Offering in the a mount of K R W 999. 90 million.
G eoS entric Oyj (HL S E : G E O1V) O
G ffering in the
eoS entric O yj,amount of Kxtraordinary
S pecial/E R W 999. 90 million. G eoS entric O yj, S pecial/E xtraordinary S hareholders Meeting, Nov 17, 2009, at 07: 30 G MT T ime. L ocation: Hotel K ämp,
S ha reholders Meeting, Nov 17, 2009 P ohjois es pla na di 29, 00100 Hels inki, F inland. Agenda : T o cons ider a uthorizing the B oa rd to decide upon ra is ing new
fina ncing through G eoS olutions Holdings N. V . T he C ompany ha s negotia ted with certa in ins titutional and qua lified inves tors
a bout new fina ncing a mounting up to E UR 25, 000, 000 a t maximum a nd the conditions thereof. T he purpos e of the financing
is to s ecure the working ca pital needs of the group a nd s upport the execution of the bus ines s pla n. T he current pla n is to
rais e the fina ncing in one or s evera l tranches by Ma rch 2010. T he fina ncing would be in a form of a convertible note is s ued
by company's 100% owned s ubs idia ry G eoS olutions Holdings N. V . T he B oa rd propos es to the E xtra ordina ry G enera l
Meeting tha t it will a uthorize the B oard decide upon the terms a nd condition of the financing. T he main terms of the fina ncing
would be as follows : T he fina ncing s hall be implemented by offering of convertible notes entitling to s ubs cription of
G eoS olutions Holdings N. V 's s ha res to a limited number of s elected inves tors .
Openwave S ys tems Inc. O penwa ve S ys tems Inc. Introduces New O penwave S ys tems Inc. announced O penwave(R ) Integra 3. 0, a L inux-ba s ed, proactive s ervice mediation a nd policy
(Nas daqG S : OP WV) P roactive S ervice Mediation a nd P olicy management s olution tha t s upports a ll of O penwave's s ervice mana gement products and affords opera tors the flexibility to
Ma nagement S olution s elect the deployment architecture and features tha t meet their s pecific needs , while ena bling overa ll T C O . O penwave will
demons tra te Integra 3. 0, at s ta nd B 01 a t Mobile As ia C ongres s loca ted in Hong K ong, on November 18-19, 2009. Integra
3. 0 is des igned to allow operators to effectively ma na ge, monitor a nd monetize mobile traffic from a n increas ingly divers e
s et of devices a nd internet content all from a s ingle point of control in-network. W ith Integra 3. 0, the operator is fully capa ble
of continuing to ma nage and provide s ervices for tra ffic from lega cy devices a nd networks while at the s ame time catering to
the often s eparate needs of data hungry devices tha t a re emerging in the market. Integra can rapidly and ma s s ively s cale a s
traffic grows and ca n deploy new mobile data s ervices a cros s converging a cces s networks and devices .
IB 3 Networks , Inc . (OTC B B : IB NW ) IB 3 Networks Inc. Announces Ma na gement O n November 13, 2009, immediately prior to the Annua l Meeting of S tockholders of IB 3 Networks Inc. , Mr. E ric S chmidt
C hanges ; to Amend B ylaws of the C ompany indica ted tha t he would be s ubmitting his T hirty Da y letter of res ignation a s C E O and C ha irman of the B oa rd of Directors of
the C ompa ny a t the conclus ion of the S tockholders meeting. Immedia tely following the Annual Meeting of the S tockholders
of the company the newly elected B oa rd of Directors , cons is ting of Mr. Micha el J a cobs on a nd Mr. Arthur K apla n met a nd
a ppointed Ms . C a rolyne S . J ohns on to fill a newly created va ca ncy on the B oard. T he new B oa rd then met to dis cus s Mr.
S chmidt's letter of res ignation. O n November 13, 2009, Mr. Micha el J a cobs on, 47, was a ppointed as C ha irma n of the B oa rd
a nd P res ident of the C ompany to s erve until the next Annual Meeting of S tockholders of the C ompa ny. F rom December,
2008 and continuing, Mr. J acobs on is P res ident of NY C Ma gs Inc. and Madis on Avenuematch. com. P rior to that time, Mr.
J a cobs on wa s P ublis her/E ditor of T rump Maga zine. O n November 13, 2009, Ms . C a rolyne S . J ohns on, a ge 62, wa s
a ppointed a s a Director of the C ompany to fill a newly crea ted pos ition on the B oa rd to s erve until the next Annual Meeting of
B urda Digital G mbH; C inco C apital B urda Digita l G mbH a greed to acquire 25. 1% B urda Digita l G mbH a greed to acquire 25. 1% s take in XING AG (X T R A: O 1B C ) from C inco C apita l G mbH for €48. 3 million
G mbH; XING AG (XTR A: O1B C ) s take in XING AG (XT R A: O 1B C ) from C inco on November 18, 2009. Under the terms , B urda Digita l will acquire 1. 3 million s hares in C inco C a pita l a t a price of €36. 5 per
C a pital G mbH for €48. 3 million. s ha re. T he dea l is s ubject to G erma n F ederal C a rtel Office. T he dea l was approved by XING 's boa rd.
Ac er Inc. (TS E C : 2353); Advanc ed Micro P erfect W orld F orms P a rtners hips with P erfect W orld C o. L td. a nnounced s tra tegic marketing pa rtners hips with Adva nced Micro Devices Inc. a nd Acer Inc. T he
Devices Inc . (NYS E : AMD); P erfec t Adva nced Micro Devices Inc. a nd Acer Inc three pa rties jointly promoted gaming la ptops .
W orld C o., L td. (Nas daqG S : P W R D)
G iant Interac tive Group, Inc. G ia nt Interactive G roup Inc. E s ta blis hes F ive G ia nt Interactive G roup Inc. a nnounced to forma lly s tart its reform of property rights by es ta blis hing five s ubs idia ries . T he
(NYS E : G A) S ubs idia ries to R eform P roperty R ights compa ny holds 51% s ha res in each s ubs idia ry a nd the members of the projects ' core tea m hold the res t 49% . According to
the company's articles of a s s ocia tion, thes e five s ubs idia ries ha ve full decis ion-ma king autonomy, including the res ea rch
a nd development (R & D) of projects and domina tion of the manpower, ma teria l a nd fina ncial res ources . T he core team
numbers a nd the pa rent s hare profits ga ined from ea ch project in proportion to their res pective contributions .
K ey Developments
C ompany Headline Notes
DigitalP os t Interactive, Inc . Digita lP os t Intera ctive Inc. R eports E arnings Digita lP os t Interactive Inc. reported earnings res ults for the third quarter a nd nine months ended S eptember 30, 2009. F or
(OTC B B : DG L P ) R es ults for the T hird Q uarter a nd Nine Months the quarter, the compa ny's tota l revenue grew 160% to $371, 600, from $142, 700 in third-qua rter 2008. T he compa ny's cas h
E nded S eptember 30, 2009 us ed in operations improved to $75, 600 from $279, 200 in third-quarter 2008. T he decline in cas h us age is the res ult of the
C ompany's revenue growth and reduced opera ting expens es . T he compa ny's net los s na rrowed to $600, 900 from net los s es
of $883, 800 in third-qua rter 2008. Net los s for third-qua rter 2009 includes non-ca s h items of $171, 500 in s tock-bas ed
compens ation, $155, 000 of a mortiza tion of debt dis counts , $187, 100 of beneficial convers ion lia bility a nd $42, 800 of
depreciation and amortiza tion. On a s equential qua rterly bas is the decreas e of tota l revenue was $4, 800 from $376, 400 for
the s econd-qua rter 2009 to $371, 600 for the third-quarter 2009. T he decrea s e wa s due to the compa ny's growth in
profes s ional s ervice revenues of $11, 900 which was pa rtially offs et by a decreas e in s ubs cription revenues of $16, 700.
Open Text C orp. (Nas daqG S : OTE X) O pen T ext Deepens Integration with S AP O pen T ext C orp. a nnounced upgrades a cros s its s olutions portfolio in s upport of S AP (R ) applica tions . T he upgra des
S olutions a cros s E C M S uite with C ontent- increa s e cus tomer value and boos t us er productivity by enriching bus ines s proces s es through deeper integra tion with all
E nriched B us ines s P roces s es types of content. T he integration of bus ines s proces s es with content increa s es productivity by reducing the need for us ers to
s top in the middle of a trans a ction to look for documents a nd other s upporting informa tion. T his new level of integra tion
ens ures that informa tion is a va ila ble when and where it is needed, helping the Open T ext E C M S uite contribute to overall
bus ines s performa nce, increa s e opera tions excellence, enha nce complia nce a nd lower tota l cos t of owners hip (T C O ). Open
T ext E xtended E C M delivers na tive integra tion of content into S AP bus ines s proces s es . P rocurement, a s s et ma na gement,
profes s ional s ervices , quality ma na gement, pla nt ma intena nce and ma ny others proces s es tha t rely heavily on documents
or s ca nned ima ges benefit s ignifica ntly from E xtended E C M. O pen T ext's E C M s olutions for us e with S AP a pplications
leverage two deca des of pa rtners hip and co-development, a nd expertis e gained from delivering s olutions to more tha n 3, 000 S AP
cus tomer s ites around the world. O pen T ext is a n S AP s oftwa re s olution pa rtner with multiple products tha t have
a chieved S AP certified integration s ta tus . Open T ext is als o currently the only E C M vendor with a number of E C M
s olutions res old by S AP .
Neteas e.c om Inc. (Nas daqG S : NTE S ) Netea s e. com Inc. R eports Unaudited Netea s e. com Inc. reported unaudited cons olidated earnings res ults for the third qua rter ended S eptember 30, 2009. F or the
C ons olida ted E a rnings R es ults for the T hird qua rter, the company's total revenues were C NY 879. 4 million (US D 128. 8 million), compa red to C NY 872. 1 million (US D
Q uarter E nded S eptember 30, 2009 127. 8 million) a nd C NY 806. 6 million (US D 118. 2 million) for the preceding quarter a nd the third quarter of 2008,
res pectively. Net profit wa s C NY 393. 8 million (US D 57. 7 million), compa red to C NY 468. 1 million (US D 68. 6 million) and
C NY 313. 3 million (US D 45. 9 million) for the preceding qua rter a nd the third qua rter of 2008, res pectively. T he compa ny
reported ba s ic and diluted ea rnings per American depos ita ry s hare, or ADS of US D 0. 45 and US D 0. 44, res pectively for the
third qua rter of 2009. T he company reported bas ic a nd diluted ea rnings per ADS of US D 0. 53 each for the preceding
qua rter, and US D 0. 36 a nd US D 0. 35, res pectively for the third qua rter of 2008. E arnings per s ha re, diluted wa s C NY 0. 12
compa red to C NY 0. 10 a yea r a go. C a s h flows generated from operating a ctivities were C NY 270. 0 million (US D 39. 5
million), compa red to C NY 544. 4 million (US D 79. 7 million) and C NY 495. 5 million
(US D 72. 6 million) for the preceding qua rter and the third quarter of 2008, res pectively. O perating profit was C NY
408, 137, 590 compa red to C NY 466, 634, 900 a yea r a go. Net income before tax wa s C NY 459, 340, 021 compa red to
C NY 438, 998, 031 a yea r ago. Net income after ta x was C NY 393, 795, 365 compa red to C NY 313, 310, 365 a yea r a go.
P urchas e of property, equipment and s oftwa re was C NY 91, 139, 494 compared to C NY 49, 664, 942 a yea r a go.
S NAP Interac tive, Inc. (OTC B B : S TVI) S NAP Intera ctive Inc. Unveils Live C ha t for S NAP Interactive Inc. a nnounced the la unch of its new G P S -bas ed chat feature on its popula r Are Y ou Interes ted? iP hone
S ingles mobile dating a pplication. T he cha t functiona lity enables s ingles to communica te with other s ingles through their iP hone in
rea l time in their choice of chat rooms , which are broken down by a ge range a nd other ca tegories including s exua l
orientation. Additionally, s ingles have the a bility to identify us ers that a re nearby a nd initia te private cha t convers ations with
a s pecific us er. As a res ult of its new live chat feature, meeting s ingles jus t beca me a lot eas ier a nd more fun than it was
even a few da ys a go. S ingles can us e their iP hone applica tion a nd its G P S technology to identify other s ingles that a re
nea rby and proceed to initia te priva te cha ts with thos e us ers .
G ravity C o., L td (Nas daqG M: G R VY) G ra vity C o. Ltd. R eports Unaudited G ra vity C o. L td. reported unaudited cons olidated earnings res ults for the third qua rter and nine months ended S eptember
C ons olida ted E a rnings R es ults for the T hird 30, 2009. F or the qua rter, the compa ny reported operating income of K R W 1, 209 million, income before income ta x
Q uarter a nd Nine Months E nded S eptember expens e, minority interes t and equity in los s of rela ted joint venture of K R W 1, 323 million and net income of K R W 16 million
30, 2009 or K R W 2 per ba s ic a nd diluted s ha re on tota l net revenues of K R W 13, 798 million compa red to the operating income of
K R W 241 million, income before income ta x expens e, minority interes t and equity in los s of rela ted joint venture of K R W
1, 879 million and net income of K R W 869 million or K R W 125 per ba s ic and diluted s ha re on tota l net revenues of K R W
12, 782 million for the s a me quarter yea r a go.
VOIS , Inc. (OTC B B : VOIS ) R obert C ohen R es igns from the B oard of V OIS Inc. a nnounced tha t Mr. R obert C ohen, a member of the B oard of Directors of the compa ny res igned his boa rd s ea t.
V O IS , Inc
NeXplore C orporation (OTC P K : NXP C ) NeXplore C orporation Announces NeXplore NeXplore C orporation a nnounced tha t the compa ny's fla gs hip product NeXplore S ea rch (www. NeXplore. com) ha s emerged
S ea rch S heds B eta , R ebra nds as NeXplore from beta a nd is now bra nded NeXplore S ea rch 2. NeX plore S ea rch 2 is a n intera ctive a nd vis ua lly engaging W eb 2. 0
S ea rch 2 s ea rch engine optimized for a s uperior end-us er experience, multi-media dis pla y and s ocia l s ha ring integra tion. F irs t
introduced in public beta in J a nua ry 2008, NeXplore S ea rch 2 currently a vera ges more tha n 5 million unique monthly vis itors
a ccording to W eb-a nalytics company C ompete. com.
G eoS entric Oyj (HL S E : G E O1V) G eoS entric O yj to R eport Nine Months , 2009 G eoS entric O yj a nnounced tha t they will report nine months , 2009 res ults on November 23, 2009.
C DC C orp. (Nas daqG S : C HIN.A) R
C es
DCults on November
C orp. R eports Una 23,udited
2009 C ons olida ted C DC C orp. reported una udited cons olida ted earnings res ults for the third quarter a nd nine months ended S eptember 30,
E arnings R es ults for the T hird Q uarter a nd 2009. F or the third quarter of 2009, the compa ny reported revenue of $76. 6 million a nd net income a ttributa ble to controlling
Nine Months E nded S eptember 30, 2009 interes t of $5. 6 million, or $0. 05 per s ha re. T his compa res to revenue of $104. 1 million and a net los s attributable to
controlling interes t of $10. 0 million, or a los s per s ha re of $0. 09 for the third qua rter of 2008. T hird qua rter operating cas h
flow wa s $12. 1 million, compa red to $11. 2 million in the s econd qua rter of 2009, a nd a 52% increas e from $8. 0 million in the
third qua rter of 2008. T hird qua rter adjus ted E B IT DA from continuing opera tions or a djus ted E B IT DA was $9. 0 million
compa red to adjus ted E B IT DA of $13. 7 million in the third qua rter of 2008. Opera ting los s wa s $2 million a gains t opera ting
income of $0. 2 million reported a yea r a go. Income before income ta xes wa s $8. 5 million a ga ins t los s before income ta xes
of $4. 8 million reported a yea r a go. Income from continuing operations wa s $6. 6 million a gains t los s from continuing
opera tions of $7. 1 million a yea r a go. Net ca s h provided
by operating a ctivities was $12. 1 million a gains t $8 million a yea r a go. P urcha s e of property, plant & equipment wa s $2
million aga ins t $1. 5 million a yea r a go.
The9 L imited (Nas daqG S : NC TY) T he9 Limited to R eport Q 3, 2009 R es ults on T he9 Limited announced tha t they will report Q 3, 2009 res ults a fter the market clos es on November 23, 2009.
November 23, 2009
Figure 7c. Key Developments – continued
Source. Capital IQ
Page 11
VALUATION
Online Gaming companies lead market-cap charts: Fourteen companies in our W eb 2.0 universe top US$1 billion in
market capitalization (Figure 8). Fifty-eight of the 89 companies have market caps under US$100 million, with 38 under
US$25 million. Online gaming companies dominate the top of the list, led by Tencent Holdings (SEHK:700) with a market
cap of approximately US$34.7 billion.
Market C ap (US D m)
Tenc ent Holdings Ltd. 34711.8
Neteas e.c om Inc . 4898.8
S handa Interactive Entertainment Ltd. 3323.7
Modern Times G roup Mtg A B 3099.3
IA C/InterA c tiveCorp. 2635.4
G ree, Inc . 2182.9
Perfec t World Co. , Ltd. 2172.9
S ohu.c om Inc . 2071.3
Open Tex t Corp. 2068.1
Changy ou. c om Limited 1868.9
G iant Interac tive G roup, Inc . 1551.1
Mix i, Inc . 1204.6
Chines e Gamer International 1185.2
K ings of t Co. Ltd. 1001.5
V alueClick Inc . 871.2
NEOWIZ Games Corporation 730.5
United Online Inc . 599.7
S hutterf ly , Inc . 381.8
NetDragon WebS of t, Inc . 338.3
S K Communications Co. , Ltd. 280.7
CDC Corp. 271.3
XING A G 251.3
OA O R B C Inf ormation S ys tems 222.0
G igaMedia Ltd. 220.8
G amania Digital Entertainment Co. , Ltd. 217.8
Openw ave S y s tems Inc . 208.8
My riad G roup A G 207.1
G ungHo Online Entertainment, Inc . 201.8
The9 Limited 189.4
DA DA S pA 162.5
A c toz S of t Co. , Ltd. 121.3
Fluid Mus ic Canada, Inc . 94. 1
NeuL ion Inc orporated 89. 9
Y D Online Corp. 77. 3
Cy berplex Inc . 76. 7
Tree.Com, Inc . 76. 4
TheS treet.c om, Inc . 72. 5
G ameOn Co Ltd. 70. 4
HanbitS of t, Inc . 64. 4
Frogs ter Interac tive Pictures A G 62. 2
PNI Digital Media Inc . 53. 5
G eoS entric Oy j 52. 6
S park Netw orks , Inc . 51. 2
NeXplore Corporation 41. 3
DXN Holdings B hd 40. 1
G ravity Co., L td 40. 0
DigitalTow n, Inc . 38. 3
Eolith Co. Ltd. 34. 9
Ngi Group Inc . 33. 9
Webz en Inc . 33. 7
A s s oc iated Media Holdings Inc . 32. 9
Wiz z ard S of tw are Corporation 24. 6
A Q Interac tive, Inc . 24. 3
Northgate Tec hnologies Limited 19. 7
L ookS mart, Ltd. 19. 4
S ocialw is e, Inc . 19. 2
Y nk K orea Inc . 18. 0
Dolphin Digital Media, Inc . 16. 1
A c c eleriz e New Media, Inc . 15. 8
Quepas a Corp. 15. 8
J umbuc k Entertainment Limited 14. 2
Ex tens ions , Inc . 13. 3
MOK O. mobi Limited 11. 5
L ingo Media Corporation 11. 3
Magnitude Information S y s tems Inc . 10. 6
V OIS , Inc . 9. 9
is eemedia Inc . 9. 7
IA S Energy , Inc . 7. 8
B roadWebA s ia Inc . 7. 6
S pec trumDNA , Inc . 6. 8
UOMO Media, Inc 5. 7
Worlds .c om Inc . 5. 4
B right Things plc 5. 1
DigitalPos t Interactive, Inc . 4. 4
CornerWorld Corporation 3. 8
B ey ond Commerce, Inc . 3. 0
S NA P Interactive, Inc . 2. 2
B igs tring Corp. 2. 0
Wy nds torm Corporation 1. 8
Unis erve Communic ations Corp. 1. 1
L iveWorld Inc . 1. 0
B etaw ave Corporation 0. 9
K A B Dis tribution Inc . 0. 6
CL ICK ER Inc . 0. 4
The Parent Company 0. 2
China G atew ay Corporation 0. 0
Dibz International, Inc . 0. 0
S NM G lobal Holdings 0. 0
S oc ial Media V entures Inc . 0. 0
0 500 1,000 1, 500 2, 000 2,500 3,000 3, 500 4,000
TEV/Revenue (LTM) averages 5.1x: The overall average TEV/Revenue (LTM) multiple for our group is 5.1x (vs. 5.1x last
week) (Figure 9). Three companies are trading above 25x revenue – Bigstring Corp. (OTCBB:BSGC) at 48.4x, Dolphin
Digital Media, Inc. (OTCBB:DPDM) at 29.3x, and NexPlore Corporation (OTCPK:NXPC) at 27.6x. The median of 1.5x
compares with 1.8x last week. Note that we exclude multiples greater than 50x. Thirty-one companies have multiples
under 1.5x.
60. 0
48.4
50. 0
40. 0
29.3
30. 0 26.6
24.0
20. 0 16.9
15.3 16.2
9.9
8.7 9.7
10.
A 0vera ge, 5.1 7.1 7.7 7.8
6.1 6.3 6.4
4.5 4.8 5.0 5.5
3.5
2.4 2.5 2.6 3.1 3.1 3.2 3.2
1.2 1.3 1.3 1.4 1.4 1.5 1.5 1.8 2.1 2.1
0.0 0.0 0.0 0.1 0.2 0.2 0.2 0.2 0.4 0.4 0.5 0.5 0.5 0.5 0.7 0.7 0.7 0.8 0.8 0.8 0.8 0.9 0.9 1.0 1.1
0. 0
MO K O .mobi L imited
UO MO Media, Inc
C LIC K E R Inc.
DXN Holdings B hd
C DC C orp.
B ey ond C ommerc e, Inc.
G eoS entric O y j
S N M G loba l Holdings
O pen T ex t C orp.
C hina G atewa y C orporation
AQ Intera ctive, Inc .
C y berplex Inc .
G igaMedia Ltd.
S pa rk N etwork s , Inc .
Y D O nline C orp.
S ohu.com Inc .
is eemedia Inc .
Mix i, Inc .
G ree, Inc .
Y nk K orea Inc .
TEV/Revenue (LTM) by country/exchange: W e have also calculated multiples based on where the companies are listed
or domiciled. Figure 10 shows the average TEV/Revenue multiples by stock exchange. The OTCBB has the largest
number of companies (18), trading at an average multiple of 11.1x (vs. 11.5x last week). On a geographic basis, the
United States has the most companies (38), trading at an average of 6.6x revenue (vs. 6.6x last week) (Figure 11). Ten of
the companies are Canadian (average 7.1x revenue).
6.0
6.5 5.9 4.8 4.7
4.0 4.7 4.3 4.0 3.9
3.2 2.9 3.2
1.8 1.7 1.7
2.0 1.4 0.9 0.7 2.0 1.8 1.7 0.9 0.7
0.4 0.7 0.4
0.2
0.0 0.0 0.0 0.0
OTCPK
OTCBB
GTSM
NasdaqGM
SEHK
HLSE
TSE
KOSE
NasdaqGS
OSE
CM
RTS
OM
TSX
XTRA
AMEX
KLSE
BSE
SWX
TSXV
ASX
Germany
Finland
China
United
Japan
Canada
Hong Kong
Malaysia
India
Russia
Italy
South
Korea
States
Australia
Taiwan
Switzerland
Sweden
# Companies 18 3 1 2 2 4 11 5 2 4 1 2 1 6 14 1 1 1 1 5 1
# Companies 1 2 10 38 3 6 2 10 1 1 8 1 1 1 1 1
TEV/EBITDA (LTM) averages 12.8x: The average multiple for the 37 companies with positive EBITDA (and multiples
under 100x) is 12.8x LTM EBITDA (vs. 11.6x last week), led by Tencent Holdings Ltd. (SEHK:700) at 46.9x (Figure 12).
Fifteen companies have EBITDA multiples under 7x. The median multiple is 12.8x (vs. 11.6x last week).
T E V/L T M E B IT DA (x)
50. 0 46. 9
45. 0
38. 7
40. 0
36. 0
35. 0
30. 0 27. 9
20. 0
16. 1 16. 7 17. 0
15. 0 A verage, 12. 8 12.9 12.9 13.7
11. 6 12.0
9. 9 10. 0 10. 1 10. 6
10. 0 7. 5 7. 8
6. 3 6. 7 7. 0 7. 0
5. 2 5. 4
3. 4 4. 0 4. 1 4. 7 4. 9
5. 0
0. 6 0. 9 1. 1
0. 0
C DC C orp.
O pen T ex t C orp.
S park Network s , Inc .
C yberplex Inc.
Y D O nline C orp.
S ohu. c om Inc .
G ree, Inc .
Mix i, Inc .
Y nk K orea Inc.
TEV/EBITDA (LTM) by country/exchange: Figure 13 shows the average TEV/EBITDA multiples by stock exchange. The
OTCBB has the largest number of companies (18), trading at an average multiple of 0.6x. On a geographic basis, the
United States has the most companies (38), trading at an average of 7.0x EBITDA (Figure 14). Ten of the companies are
Canadian (average 19.0x EBITDA).
17.8 11.8
(x)
NasdaqGM
SEHK
KOSE
TSE
NasdaqGS
OSE
RTS
OM
CM
XTRA
TSX
AMEX
TSXV
ASX
0.0 0.4
Germany
Canada
China
Japan
Hong
United
Russia
Italy
South
Korea
Kong
States
Taiwan
Australia
Sweden
# Companies 4 3 2 6 5 1 2 14 1 1 4 2 5 2 18 1 10 3 8 10 1 6 2 1 38 1 2 1
# Companies
P/E (LTM) averages 19.1x: The average multiple for the 34 companies with positive earnings (and multiples under 100x)
is 19.1x LTM EPS (vs. 19.4x last week), led by LiveW orld Inc. (OTCPK:LVW D) with a 63.3x multiple (Figure 15). Fourteen
companies have P/E multiples under 10x. The median is 12.6x.
P /E L T M (x)
70.0
63.3
60.2 60.3
60.0
50.0
43.6 45.1
38.0
40.0 36.3 36.9
33.1
30.0
23.2
A verage, 19.1 19.9 20.0
20.0 16.7 17.0 17.2
13.8
11.2 11.5 12.6 12.6
8.2 8.7
10.0 5.9 7.1 7.3
3.8 4.1
1.8 2.2 2.4 2.6 2.7
0.0 0.0
0.0
NE O W IZ G ames C orporation
J umbuck E ntertainment Limited
G ameO n C o Ltd.
T he9 Limited
O pen T ex t C orp.
C y berplex Inc.
Y D O nline C orp.
G igaMedia Ltd.
S ohu.com Inc.
G ree, Inc.
Mix i, Inc.
P/E (LTM) by country/exchange: Figure 16 shows the average P/E multiples by stock exchange. The OTCBB has the
largest number of companies (18), trading at an average multiple of 11.9x. On a geographic basis, the United States has
the most companies (38), trading at an average of 23.1x earnings (Figure 17). Ten of the companies are Canadian
(average 26.2x EPS).
31.3 22.8
(x)
OTCBB
GTSM
NasdaqGM
OSE
TSE
SEHK
KOSE
NasdaqGS
OM
XTRA
AMEX
TSX
KLSE
NYSE
ASX
0.0
Germany
Japan
Canada
United
China
Malaysia
South
Korea
States
Taiwan
Australia
Sweden
# Companies 11 1 5 2 3 2 6 2 1 18 14 4 1 2 1 5
# Companies 6 2 10 38 3 1 10 8 1 2
UPCOMING EVENTS
E arnings C alendar
C ompany Date Time Quarter C onf C all Details
The9 Limited (NasdaqGS:NCTY) 24-Nov-09 8:00 p.m. EST Q3/09 800-884-5695
Giant Interactive Group, Inc. (NYSE:GA) 25-Nov-09 8:00 p.m. EST Q3/09 866-510-0712
NetDragon WebSoft, Inc. (SEHK:777) 25-Nov-09 7:00 a.m. EST Q3/09 800-130-0399
Shanda Interactive Entertainment Ltd. (NasdaqGS:SNDA) 1-Dec-09 9:30 a.m. EST Q3/09 866-271-6130
Figure 18. Earnings Calendar
Source. Company reports
Page 16
A ccelerize New Media, Inc. US D AC L Z OT C B B 15.8 0.55 -24.7% 0.0% -3.5% 5. 8% 37.5% -31.3%
A ctoz S oft C o. , L td. KR W A052790 K OS E 121.3 16, 700 1. 5% 3.7% -15.2% -25.8% 60.6% -53.6%
A Q Interactive, Inc. JPY 3838 TS E 24.3 40, 000 -9.1% -18.3% -21.7% -35.5% 14.3% -51.8%
A s s ociated Media H oldings Inc. US D AS MH OT C P K 32.9 0.76 8344.4% 5328. 6% 5328. 6% 50566. 7% 25233.3% 0.0%
B igs tring C orp. US D BSGC OT C B B 2.0 0.03 -3.1% -8.8% 67.6% 29.2% 19.2% -45.6%
B eta wave C orpora tion US D B W AV OT C B B 0.9 0.03 -14.0% -24.9% -62.4% -66.6% -88. 4% -89.6%
B eyond C ommerce, Inc. US D B Y OC OT C B B 3.0 0.05 -10.8% -50.0% -68.5% -94.6% -94. 7% -97.2%
B right T hings plc GB P AIM:B G T A IM 5.1 0.01 0. 0% -14.5% -16.1% -21.7% 29.1% -52.4%
B roadW ebA s ia Inc. US D BWBA OT C P K 7.6 0.09 28.6% 200.0% -60.9% -69.8% -91. 1% -96.9%
C DC C orp. US D C H IN.A Nas da qG S 271.3 2.56 0. 8% 3.2% -1.5% 45.5% 181. 3% -34.7%
C ha ngyou.com Limited US D C Y OU Nas da qG S 1, 868.9 33.98 -1.5% -2.8% -9.0% 6. 2% NM -29.7%
C hina G a tewa y C orporation US D CGWY OT C P K 0.0 0.00 -86.7% -86.7% -86.7% 0. 0% -80. 0% -93.3%
C hines e G a mer International TWD G T S M:3083 GTS M 1, 185.2 457.00 -0.1% 2.5% 14.8% 21.4% 471. 3% -11.9%
C LIC K E R Inc. US D CLK Z OT C B B 0.4 0.01 -21.4% -31.3% 10.0% 83.3% -93. 1% -96.6%
C ornerW orld C orpora tion US D CW R L OT C B B 3.8 0.04 -33.3% -33.3% -33.3% -55.6% -80. 0% -91.5%
C yberplex Inc. C AD T S X: C X TS X 76.7 1.27 -5.9% -2.3% -17.5% -20.6% 323. 3% -36.2%
DADA S pA E UR C M:DA CM 162.5 6.85 -3.4% -9.6% 6.3% 16.2% 7.0% -16.4%
DXN Holdings B hd MY R DXN K LS E 40.1 0.62 -1.6% -3.9% 16.0% 50.0% 68.5% -10.9%
Dibz Interna tional, Inc. US D DIB Z OT C P K 0.0 0.00 20.0% NM 20.0% -88.0% -97. 6% -97.6%
DigitalP os t Intera ctive, Inc. US D DG LP OT C B B 4.4 0.05 -15.3% -16.7% -23.1% 127.3% 66.7% -49.5%
DigitalT own, Inc. US D DG T W OT C B B 38.3 1.40 16.7% -30.0% 3.7% 7. 7% -30. 0% -60.0%
Dolphin Digital Media, Inc. US D DP DM OT C B B 16.1 0.30 -9.1% -34.8% -17.8% -50.0% -62. 5% -64.7%
E olith C o. L td. KR W A041060 K OS E 34.9 575.00 0. 9% 1.8% -41.6% -18.4% 10.6% -50.4%
E xtens ions , Inc. US D E XT I OT C P K 13.3 0.30 20.0% -14.3% 275.0% 100.0% 471. 4% -70.3%
F luid Mus ic C anada, Inc. C AD T S X: F MN TS X 94.1 1.95 8. 3% 2.6% 39.3% 160.0% 413. 2% -9.3%
F rogs ter Intera ctive P ictures AG E UR FR G XT R A 62.2 16.57 -8.2% -17.6% 2.3% 107.1% 299. 3% -22.9%
G amania Digita l E ntertainment C o., L td. TWD 6180 GTS M 217.8 46.50 0. 0% -5.9% -4.1% -20.6% 253. 6% -32.4%
G ameO n C o L td. JPY 3812 TS E 70.4 65, 100 -4.4% -28.0% -38.1% -28.5% -56. 6% -57.2%
G eoS entric Oyj E UR G E O1V H LS E 52.6 0.04 -33.3% -20.0% -20.0% -20.0% 33.3% -33.3%
G ia nt Interactive G roup, Inc. US D GA NY S E 1, 551.1 6.85 -2.3% -8.9% -9.7% -9.7% 12.5% -28.4%
G igaMedia L td. US D G IG M Nas da qG S 220.8 4.05 -7.1% -13.1% -15.6% -33.3% -17. 3% -47.6%
G ra vity C o., Ltd US D GR VY Nas da qG M 40.0 1.44 -1.4% -12.7% -36.0% 22.0% 121. 5% -45.2%
G ree, Inc. JPY T S E :3632 TS E 2, 182.9 4, 360 -15.7% -12.8% 1.3% 62.4% NM -23.6%
G ungH o Online E ntertainment, Inc. JPY 3765 OS E 201.8 157, 500 -6.8% -27.6% -35.2% 1. 6% 55.0% -43.7%
H anbitS oft, Inc. KR W A047080 K OS E 64.4 3, 510 1. 9% -3.8% -9.9% -32.4% 18.8% -47.1%
IAC /InterA ctiveC orp. US D IA C I Nas da qG S 2, 635.4 19.97 0. 2% 5.1% 4.1% 24.6% 35.0% -6.2%
IAS E nergy, Inc. US D IA S A. E OT C B B 7.8 0.11 -7.6% 5.7% -7.5% -57.3% 270. 0% -60.4%
is eemedia Inc. C AD IE E T S XV 9.7 0.20 17.6% 42.9% 300.0% 122.2% 263. 6% -25.9%
J umbuck E ntertainment Limited AU D AS X: J MB AS X 14.2 0.34 -1.5% -1.5% -9.5% -25.6% -22. 1% -33.0%
K AB Dis tribution Inc. C AD T S X: K AB TS X 0.6 0.01 -50.0% -99.2% -99.2% -98.6% -99. 4% -99.4%
K ings oft C o. L td. HK D 3888 S E HK 1, 001.5 7.10 -3.1% -5.5% -18.7% 25.9% 219. 8% -25.0%
L ingo Media C orpora tion C AD T S XV :LM T S XV 11.3 0.99 1. 0% 5.3% 5.3% -5.7% -16. 1% -30.8%
L iveW orld Inc. US D LV W D OT C P K 1.0 0.03 -3.1% -24.4% -38.0% -48.3% -38. 0% -87.6%
L ookS mart, L td. US D LO OK Nas da qG M 19.4 1.13 0. 9% -13.1% -8.9% -12.4% -35. 4% -37.6%
Ma gnitude Information S ys tems Inc. US D MAG Y OT C B B 10.6 0.02 26.3% 166.7% 200.0% 118.2% 41.2% -38.5%
Mixi, Inc. JPY 2121 TS E 1, 204.6 699,000.00 3. 9% -2.9% 14.6% 53.3% 19.1% -11.6%
Modern T imes G roup Mtg AB SEK MT G B OM 3, 099.3 327.50 -2.2% -1.7% 7.4% 48.9% 132. 3% -3.7%
MO K O .mobi L imited AU D MK B AS X 11.5 0.13 38.9% 58.2% 78.6% 89.4% 212. 5% 0.0%
Myriad G roup AG C HF MY R N S WX 207.1 4.83 3. 2% 7.6% 7.3% -11.4% -31. 2% -32.1%
NE O W IZ G ames C orporation KR W A095660 K OS E 730.5 41,350.00 -0.5% 10.0% 40.6% 17.3% 378. 0% -7.9%
NetDra gon W ebS oft, Inc. HK D 777 S E HK 338.3 4.96 -1.8% -3.3% -27.1% -8.3% 88.6% -30.6%
Netea s e. com Inc. US D NT E S Nas da qG S 4, 898.8 37.85 -8.8% 1.2% -11.1% 19.7% 105. 7% -22.0%
NeuLion Incorpora ted C AD T S X: NL N TS X 89.9 0.84 16.7% 10.5% -27.6% 5. 0% 112. 7% -35.4%
NeXplore C orpora tion US D NXP C OT C P K 41.3 0.74 7. 2% -7.5% 23.3% 5. 7% -41. 7% -49.0%
Ngi G roup Inc. JPY 2497 TS E 33.9 24,480.00 -1.5% -14.7% -23.7% -18.4% -55. 7% -60.3%
Northgate T echnologies Limited INR 590057 BSE 19.7 27.05 -7.2% -27.7% -31.3% -33.6% -51. 4% -63.7%
O pen T ext C orp. US D OT E X Nas da qG S 2, 068.1 36.68 -4.1% -6.6% 3.4% 9. 2% 37.8% -11.5%
O penwa ve S ys tems Inc. US D OP W V Nas da qG S 208.8 2.50 0. 4% -10.1% -11.3% 38.9% 363. 0% -20.1%
P erfect W orld C o., Ltd. US D PWRD Nas da qG S 2, 172.9 43.67 -3.7% -6.3% 9.3% 114.8% 150. 3% -13.5%
P NI Digital Media Inc. C AD T S XV :P N T S XV 53.5 1.70 -2.3% 4.3% -4.5% 6. 2% 47.8% -20.9%
Q uepa s a C orp. US D QP S A OT C B B 15.8 1.24 -4.6% -8.1% -17.3% 22.8% -44. 6% -47.2%
O AO R B C Information S ys tems US D R BCI R TS 222.0 1.60 0. 0% 6.7% 52.4% 62.4% 6.7% -5.9%
S ha nda Interactive E nterta inment L td. US D S NDA Nas da qG S 3, 323.7 49.42 0. 6% 6.6% 3.0% -7.3% 130. 3% -24.0%
S hutterfly, Inc. US D S F LY Nas da qG S 381.8 14.87 -5.6% 1.7% -1.5% 4. 2% 117. 4% -18.0%
S K C ommunications C o. , L td. KR W A066270 K OS E 280.7 8,000.00 9. 7% 3.1% -14.9% -35.0% 72.0% -37.7%
S NA P Intera ctive, Inc. US D S TVI OT C B B 2.2 0.20 -50.0% -42.9% -50.0% -62.3% -73. 2% -81.5%
S NM G loba l H oldings US D S NMN OT C P K 0.0 0.00 0. 0% -33.3% -77.8% -60.0% -98. 0% -98.0%
S ocial Media V entures Inc. US D S MV I OT C P K 0.0 0.01 -24.2% -78.6% -93.2% -25.0% -99. 5% -99.9%
S ocialwis e, Inc. US D S CLW OT C B B 19.2 0.41 -19.6% -29.3% -31.7% -39.7% -77. 8% -78.1%
S ohu.com Inc. US D S O HU Nas da qG S 2, 071.3 53.86 -5.4% -24.5% -17.6% -6.8% 11.0% -25.5%
S pa rk Networks , Inc. US D LO V A ME X 51.2 2.49 -4.2% -2.7% 11.2% 11.2% -14. 1% -17.0%
S pectrumDNA, Inc. US D S P XA OT C B B 6.8 0.14 -6.7% 0.0% -39.1% -56.3% -41. 7% -68.9%
T encent H oldings Ltd. HK D 700 S E HK 34,711. 8 148 -0.1% -0.4% 25.1% 83.5% 248. 5% -3.2%
T he P a rent C ompany US D K IDS . Q OT C P K 0.2 0.01 0. 0% 0.0% -64.5% 600.0% -99. 1% -99.2%
T he9 L imited US D NC T Y Nas da qG S 189.4 7.55 1. 9% -6.3% -11.2% -15.6% -41. 2% -54.6%
T heS treet.com, Inc. US D TS CM Nas da qG M 72.5 2.37 -4.4% -18.0% -2.5% 22.8% -30. 1% -36.6%
T ree.C om, Inc. US D TR E E Nas da qG M 76.4 7.01 -4.0% -8.1% -19.5% -39.7% 283. 1% -46.4%
U nis erve C ommunica tions C orp. C AD T S XV :US S T S XV 1.1 0.05 42.9% 0.0% 11.1% 0. 0% -72. 2% -50.0%
U nited O nline Inc. US D UNT D Nas da qG S 599.7 7.09 -13.7% -20.0% -3.3% 9. 9% 6.9% -25.1%
U OMO Media, Inc US D UO MO OT C B B 5.7 0.07 -2.9% -34.0% -56.0% -71.6% -49. 2% -93.8%
V alueC lick Inc. US D V CLK Nas da qG S 871.2 10.17 -1.3% -20.9% -6.1% -0.8% 64.8% -27.0%
V OIS , Inc. US D V O IS OT C B B 9.9 0.01 41.2% 166.7% 100.0% 33.3% 60.0% -47.8%
W ebzen Inc. US D W ZE N Nas da qG M 33.7 2.84 -4.1% -2.1% 3.3% -30.4% 242. 2% -39.3%
W izzard S oftwa re C orporation US D W ZE A ME X 24.6 0.46 -5.6% 12.2% 0.0% -16.4% -54. 0% -73.4%
W orlds .com Inc. US D W DDD OT C B B 5.4 0.10 0. 0% 0.0% -9.1% -33.3% -54. 5% -56.5%
W ynds torm C orpora tion US D W Y ND OT C P K 1.8 0.10 0. 0% 0.0% 0.0% -80.4% -16. 7% -80.4%
XING A G E UR O1B C XT R A 251.3 32.55 -0.5% -12.3% 18.4% -2.8% 38.0% -14.3%
Y D Online C orp. KR W A052770 K OS E 77.3 6,150.00 -5.7% -22.0% -26.4% -39.7% -4.1% -50.4%
Y nk K orea Inc. KR W A023770 K OS E 18.0 4,035.00 -7.9% -12.7% -2.1% -45.5% -27. 9% -53.6%
H igh 8344.4% 5328. 6% 5328. 6% 50566. 7% 25233.3% 0.0%
L ow -86.7% -99.2% -99.2% -98.6% -99. 5% -99.9%
Average 796.6 90.7% 56.0% 58.4% 576.2% 343.4% -45.0%
Media n -2.2% -6.3% -8.9% -2.8% 14.3% -39.3%
United S tates 38 C hina 49, 633. 4 C hina 4,963. 3 C hina 4,152. 4 C hina 2, 070. 2 C hina 48. 8%
C a na da 10 U nited S ta tes 5, 811. 3 S weden 2,974. 2 United S tates 3,887. 3 S weden 304. 6 A us tralia 42. 8%
C hina 10 J a pan 3, 871. 5 J apan 645. 3 S weden 1,982. 6 United S tates 290. 0 T aiwan 37. 1%
S outh K orea 8 S weden 2, 974. 2 T aiwan 577. 9 C a na da 1,015. 0 C a na da 200. 0 J apan 24. 2%
J a pa n 6 C anada 2, 488. 2 Hong K ong 294. 6 S outh K orea 707. 3 J a pa n 186. 0 S weden 15. 4%
T a iwa n 3 T a iwa n 1, 733. 6 C anada 248. 8 J a pa n 634. 4 S outh K orea 121. 9 Mala ys ia 14. 4%
Aus tralia 2 S outh K orea 1, 527. 4 S outh K orea 190. 9 T a iwa n 385. 8 T a iwa n 59. 8 Italy 13. 1%
G erma ny 2 G ermany 317. 0 Ita ly 165. 4 Hong K ong 361. 6 Ita ly 31. 9 R us s ia 13. 1%
S witzerla nd 1 Hong K ong 294. 6 R us s ia 160. 9 Ita ly 242. 6 Hong K ong 25. 1 S outh K orea 12. 7%
Hong K ong 1 Ita ly 165. 4 G ermany 158. 5 R us s ia 156. 2 R us s ia 20. 4 Hong K ong 6. 9%
F inla nd 1 R us s ia 160. 9 U nited S ta tes 152. 9 India 82. 8 G erma ny 12. 5 S witzerla nd 1. 9%
Ita ly 1 S witzerla nd 92. 0 S witzerla nd 92. 0 Ma lays ia 77. 1 Ma lays ia 11. 1 C anada -8. 5%
United K ingdom 1 F inland 65. 9 F inland 65. 9 G erma ny 68. 7 Aus tralia 4. 5 G ermany -9. 1%
India 1 Malays ia 39. 8 Malays ia 39. 8 S witzerla nd 40. 0 S witzerla nd 0. 8 U nited S ta tes -21. 9%
S weden 1 India 31. 0 India 31. 0 Aus tralia 17. 8 Norwa y -1. 1 India -50. 0%
R us s ia 1 Aus tralia 22. 1 Aus tralia 11. 0 F inla nd 5. 5 United K ingdom -2. 7 Norway -50. 6%
Ma lays ia 1 U nited K ingdom 6. 0 U nited K ingdom 6. 0 Norwa y 2. 3 F inla nd -17. 5 U nited K ingdom NA
Norwa y 1 Norway 0. 1 Norway 0. 1 United K ingdom 0. 0 India -41. 4 F inland NA
G rand Total 89 G rand Total 69,234.6 G rand Total 777.9 G rand Total 13,819.5 G rand Total 3,276.1 G rand Total 5.1%
G rand Total 89 G rand Total 69,234.6 G rand Total 777.9 G rand Total 13,819.5 G rand Total 3,276.1 G rand Total 5.1%
G rand Total 6.2 2.0 110.1 137.7 162.3 77.6 110.0 606.0
1. None applicable.
ANALYST CERTIFICATION
Each analyst of Research Capital Corporation whose name appears in this report hereby certifies that (i) the
recommendations and opinions expressed in this research report accurately reflect the analyst’s personal views and (ii)
no part of the research analyst’s compensation was or will be directly or indirectly related to the specific conclusions or
recommendations expressed in this research report.
I n f o r ma t i o n a b o u t Re s e a r ch C a p i t a l C o r p o r a t i o n ’ s Ra t i n g S y s t e m, t h e d i s t r i b u t i o n o f o u r r e s e a r ch t o cl i e n t s a n d t h e p e r ce n t a g e o f r e c o m me n d a t i o n s wh i c h a r e i n e a c h
o f o u r r a t i n g c a t e g o r i e s i s a v a i l a b l e o n o u r we b si t e a t ww w. r e s e a r ch c a p i t a l . c o m.
T h e i n f o r ma t i o n c o n t a i n e d i n t h i s r e p o r t h a s b e e n d r a wn f r o m s o u r c e s b e l i e ve d t o b e r e l i a b l e b u t i t s a c cu r a c y o r co mp l e t e n e ss i s n o t g u a r a n t e e d , n o r i n p r o vi d i n g i t
d o e s R e s e a r c h Ca p i t a l C o r p o r a t i o n a s s u me a n y r e sp o n si b i l i t y o r l i a b i l i t y . R e s e a r ch C a p i t a l C o r p o r a t i o n , i t s d i r e ct o r s , o f f i c e r s a n d o t h e r e mp l o y e e s ma y , f r o m t i me t o
t i me , h a v e p o si t i o n s i n t h e s e cu r i t i e s me n t i o n e d h e r e i n . Co n t e n t s o f t h i s r e p o r t c a n n o t b e r e p r o d u c e d i n wh o l e o r i n p a r t wi t h o u t t h e e xp r e ss e d p e r mi s si o n o f R e se a r ch
C a p i t a l C o r p o r a t i o n . ( U . S . I n s t i t u t i o n a l Cl i e n t s — Re s e a r ch C a p i t a l U . S. A . I n c. ( a wh o l l y o wn e d s u b si d i a r y o f R e s e a r c h C a p i t a l Co r p o r a t i o n ) a cc e p t s r e s p o n si b i l i t y f o r
t h e c o n t e n t s o f t h i s r e p o r t s u b je c t t o t h e t e r ms & l i mi t a t i o n s s e t o u t a b o v e . F i r ms o r i n s t i t u t i o n s r e ce i vi n g t h i s r e p o r t s h o u l d e f f e ct t r a n s a ct i o n s i n s e c u r i t i e s d i sc u s se d
i n t h e r e p o r t t h r o u g h R e s e a r ch C a p i t a l U . S . A . I n c. , a B r o k e r - D e a l e r R e g i s t e r e d wi t h t h e U n i t e d S t a t e s S e cu r i t i e s a n d E xc h a n g e C o m mi s si o n ) .
Tor on to 4 16. 8 60. 76 00 M ontr eal 51 4. 39 9. 150 0 V anco u ver 60 4. 66 2. 180 0 C al gar y 40 3. 26 5. 740 0 R egi na 306. 566. 7550
www.researchcapital.com