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Robert DeFrancesco¶s
July 4, 2011

Tech IPO Roundup²LinkedIn (LKND) Rebounds 57%
-----------------------------------------------------------------------------------------------------Tech-Stock Prospector is now available in the Kindle Store in the Business & Investing section of the online magazine stand. Here¶s the Kindle link: -----------------------------------------------------------------------------------------------------The big news in the tech deal world last week was the rebound of a few recent IPOs along with the overall market. Since these stocks have limited floats, volatility levels are extremely high, which means the upside gets as exaggerated as the downside. LinkedIn (LNKD, $94.54) shares moved back above $90 after dipping to a low of $60.14 on June 20, while Responsys (MKTG, $17.80) recovered from the June 24 low of $14.80. Pandora Media (P, $20.04) staged a major comeback from the June 17 low of $12.16 and Fusion-IO (FIO, $31.19) jumped to a high of $36.98 after dipping to $19.28 on June 17. There was much anticipation for the debut of the S-1 filing from online social game maker Zynga, which could see the company valued at $15 billion to $20 billion. Zynga had 2010 revenue of $597.4 million, up from $121.4 million in 2009. For the three months ended March, Zynga¶s revenue rose a whopping 133% to $235.4 million. *In the networking security space, Imperva has filed an S-1 for an upcoming IPO. The company, founded by the co-founder of Check Point Software (CHKP), has more than 1,300 end-user customers for its solutions aimed at providing visibility and control over high-value business data across critical systems within the datacenter. Imperva¶s dynamic profiling technology allows customers to create and monitor security policies based on actual application and database behavior. Live application and database traffic is examined to build a baseline of acceptable user behavior. By building an accurate profile of acceptable usage, the dynamic profiling technology streamlines monitoring and security configuration. Imperva¶s SecureSphere Data Security Suite is designed to prioritize and mitigate risks to enterprise data, protect against hackers and malicious insiders and address & streamline regulatory compliance. SecureSphere is an integrated, module suite that provides database, file and Web application security across various systems, including traditional on-premise datacenters as well as private, public and hybrid cloud computing

environments. Imperva also offers a cloud-based security service that delivers on-demand Web application security. Imperva¶s 2010 revenue totaled $55.4 million, representing a year-over-year increase of 41%. For the three months ended March, revenue rose 45% to $16.4 million. The company¶s customers include four of the top five telecom companies, three of the top five commercial banks in the U.S., three of the top five financial data services firms, three of the top five computer hardware companies, two of the top five food & drug companies, over 150 government agencies worldwide and more than 100 of the Fortune 1000 companies. Imperva primarily sells its products through a network of more than 350 channel partners worldwide. *In the storage sector, BlueArc re-filed an S-1 in late June after pulling its IPO back in the late 2008 because of poor market conditions. The company¶s systems compete with the big guns of storage²NetApp, EMC, IBM and HP²in the $8.1-billion NAS and iSCSI SAN markets. BlueArc has 750 customers and an OEM agreement with Hitachi Data Systems, which accounted for 41% of total revenue in FY11. For fiscal 2011 (January), revenue rose to $85.5 million from $65.8 million in the previous year and $74.2 million in fiscal 2009. For the three months ended April, revenue rose 33% year over year to $24.7 million. CEO Michael Gustafson has been with BlueArc since June 2004. Prior to that, he held various executive roles at McData, an enterprise storage network company, which was bought by Brocade in 2006. Christopher White, VP/Global Channel Sales, joined the company in June. Previously, he was a senior director of channel sales at NetApp and worked for Veritas Software (now owned by Symantec) in various sales management roles. BlueArc¶s VP of marketing and business development, Bridget Warwick, is also a NetApp veteran. In an interesting management twist, Dave deSimone, ousted by Blue Coat Systems in May, has landed at BlueArc as Sr. VP of product operations and technology. Here are BlueArc¶s big investors (and their ownership stakes prior to the offering): Meritech Capital Partners (23.3%), Crosslink Capital (14.8%), Investor Growth Capital (10.9%) and Morgenthaler Venture Partners (9.4%). The CEO owns 3.3%. For full coverage of all of the latest tech IPOs, check outTech-Stock Prospector. -----------------------------------------------------------------------------------------------------Tech-Stock Prospector is now available in the Kindle Store in the Business & Investing section of the online magazine stand. Here¶s the Kindle link: ------------------------------------------------------------------------------------------------------

Tech-Stock Prospector Managing Editor Rob DeFrancesco has more than 20 years of experience covering the tech sector. He is a former senior writer with Louis Rukeyser¶s Wall Street., launched in 2003, is an investment-research service focused primarily on the networking, storage, security, wireless and software sectors. Annual subscription: $350. For more information or to place an order, call 800-392-0998.