The Software Industry

Even in times of economic uncertainty, software remains a significant component of the global economy, generating annual revenues of approximately $75 billion. The drive for greater efficiency and the increasing globalization of business markets spurs much of the spending, as companies must continue to invest in the hardware and software infrastructure that enables them to operate in increasingly competitive markets.

The following companies are representative of this vibrant and diverse industry:

Profile: Art Technology Group Inc.


Art Technology Group, Inc. (ATG) provides e-business solutions covering customer lifecycle worldwide. The company offers online marketing, sales, and self-service software applications for consumer facing e-commerce sites. ATG also offers professional services, including education and implementation services, as well as application hosting and support, and maintenance services.

 Contact Information 

25 First Street
Cambridge, MA 02141
Phone: 617-386-1000
Web Site: www.atg.com

 Valuation Measures

Market Cap:  185.03M
Enterprise Value:  155.45M
Forward P/E:  18.67
PEG Ratio (5 yr expected):  1.20
Price/Sales (ttm):  2.16

Upgrade/Downgrade History

Date Research Firm Action From To
23-Jul-03 RBC Capital Mkts Upgrade Underperform Sector Perform
24-Jan-03 RBC Capital Mkts Downgrade Sector Perform Underperform
06-Dec-02 USB Piper Jaffray Downgrade Strong Buy Outperform

 Average Trading Volume

Profile: Borland Software Corp.


Borland Software Corporation provides cross-platform software technology solutions to build, deploy, and manage enterprise applications worldwide. The company offers integrated development solutions designed to address various dimensions of an application's lifecycle, including definition, design, development, testing, and deployment.

 Contact Information

20450 Stevens Creek Boulevard, Suite 800
Cupertino, CA 95014
Phone: 831-431-1000
Web Site: www.borland.com

 Valuation Measures

Market Cap:  497.72M
Enterprise Value:  303.27M
Forward P/E:  43.53
PEG Ratio (5 yr expected):  8.28
Price/Sales (ttm):  1.71

Upgrade/Downgrade History

Date Research Firm Action From To
8-Jul-05 Piper Jaffray Downgrade Market Perform Underperform
8-Apr-05 JP Morgan Downgrade Overweight Neutral
15-Dec-04 KeyBanc Capital Mkts Initiated   Hold

 Average Trading Volume

Profile: Manugistics Group Inc.


Manugistics Group, Inc. provides supply chain, demand, and revenue management software products and services worldwide. It offers demand management and pricing; supply management; transportation and logistics management; collaboration and visibility; contract materials resource planning, and maintenance, repair, and overhaul; performance management; and revenue management solutions.

 Contact Information 

9715 Key West Avenue
Rockville, MD 20850
Phone: 301-255-5000
Web Site: www.manugistics.com

 Valuation Measures

Market Cap:  149.16M
Enterprise Value:  196.12M
Forward P/E:  29.67
PEG Ratio (5 yr expected):  4.55
Price/Sales (ttm):  0.82

Upgrade/Downgrade History

Date Research Firm Action From To
26-Sep-05 JMP Securities Downgrade Strong Buy Mkt Outperform
15-Jun-05 JMP Securities Upgrade Mkt Perform Strong Buy
22-Dec-04 Wachovia Downgrade Mkt Perform Underperform

 Average Trading Volume

Profile: webMethods Inc.


webMethods, Inc. (WMI) provides business integration software worldwide. It offers webMethods Fabric, a business integration product suite that enables organizations link their enterprise software applications and databases, connect electronically with their trading partners, automate the business processes that span these systems and interfaces, and implement software applications.

 Contact Information 

3877 Fairfax Ridge Road, South Tower
Fairfax, VA 22030
Phone: 3703-460-2500
Web Site: www.webmethods.com

 Valuation Measures

Market Cap:  406.91M
Enterprise Value:  265.32M
Forward P/E:  27.07
PEG Ratio (5 yr expected):  2.05
Price/Sales (ttm):  2.01

Upgrade/Downgrade History

Date Research Firm Action From To
26-Oct-05 Prudential Upgrade Underweight Overweight
3-May-05 Friedman Billings Downgrade Outperform Mkt Perform
8-Apr-05 Garban Upgrade Sell Buy

 Average Trading Volume