NumberOne
15 년 전
By Scott Austin
This morning’s Web roundup:
As we reported last night, underwriters priced LogMeIn Inc.’s initial public offering at $16 a share, at the top of an expected range. LogMeIn begins trading on Nasdaq under the symbol LOGM. It’s the fourth venture-backed company to go public this year, all in the past six weeks. That’s a positive sign for VCs, but liquidity is still very hard to secure, judging by this report from research firm VentureSource detailing a horrible first half for venture capitalists selling their companies or taking them public. Only two companies were sold for more than $100 million in the first half, and both were bought by Cisco Systems Inc….
ZDNet assesses whether investors should buy into LogMeIn’s IPO or not. It’s conclusion: “LogMeIn looks promising and is definitely worth a spot on the watchlist. Buying on an IPO launch, however, rarely pays off.”….
http://blogs.wsj.com/venturecapital/2009/07/01/the-daily-start-up-vcs-need-a-pep-talk-at-the-half/
NumberOne
15 년 전
From Marketwatch:
After riding out a chilly period, the market for initial public stock offerings looks poised to get a day in the sun this week with the expected debut of software maker LogMeIn Inc.
The roughly $100 million offering by LogMeIn is now oversubscribed "to a strong retail and institutional book," IPO Boutique analyst Scott Sweet wrote late last week, while noting that pricing is at the high end of the $14 to $16 a share range targeted by the firm.
LogMeIn plans to offer 5 million shares of common stock, while executives and other shareholders will sell an additional 1.7 million shares.
Sweet's current rating for the IPO is a 3, or a "Buy." The offering is expected to price Tuesday evening, and LogMeIn anticipates trading under the ticker "LOGM."
Woburn, Mass.-based LogMeIn, founded in 2003 and originally called 3am Labs Inc., provides subscriptions to software that enables users to set up private, remote networks. The company said revenue for the three months ended in March was $17.2 million, up from $9.9 million in the same period a year earlier.
The company showed an 11-cents-a-share profit for the quarter ended in March, but has consistently logged losses over the past three years, according to financial data filed by LogMeIn with the Securities & Exchange Commission.
LogMeIn, which would be the third venture capital-backed firm to go public this year, initially filed for an IPO in Jan. 2008 - though it didn't disclose any terms of an offering at that time.
In addition to venture capital firms, backers of the closely-held company include Intel Corp. /quotes/comstock/15*!intc/quotes/nls/intc (INTC 16.56, +0.18, +1.10%) . Intel will not be selling its roughly 4% stake in the IPO, which it acquired for $10 million in 2007, according to public filings.
A joint-marketing agreement with Intel is key provider of revenue for LogMeIn, the company said in public filings.
LogMeIn said it intends to use proceeds from the IPO for working capital, to develop new services and to acquire other companies.
Underwriters for the offering including J.P. Morgan /quotes/comstock/13*!jpm/quotes/nls/jpm (JPM 34.37, -0.23, -0.67%) , Barclays Capital /quotes/comstock/13*!bcs/quotes/nls/bcs (BCS 18.53, +0.18, +0.95%) and RBC Capital Markets.
OpenTable Inc. /quotes/comstock/15*!open/quotes/nls/open (OPEN 30.10, -0.31, -1.02%) and SolarWinds Inc., the two other venture-backed firms to IPO in 2009, have seen their shares increase in value since becoming available on the public market in May.
Shares of reservation system provider OpenTable have risen from $28.48 to over $33 a share, while those of network management software maker SolarWinds /quotes/comstock/13*!swi/quotes/nls/swi (SWI 16.74, +1.24, +7.97%) have increased from $13.75 to over $15 a share. See related story about OpenTable IPO.
http://www.marketwatch.com/story/logmein-raises-strong-interest-prior-to-ipo
NumberOne
15 년 전
Interesting analysis here fwiw imho...
LogMeIn, the company behind a recent Webware 100-selected remote-desktop application that lets users access files and data on different computers, plans to go public.
According to documents LogMeIn filed with the Securities and Exchange Commission on Friday, the company plans to offer 6.6 million shares. It hopes to price those shares between $14 and $16.
Assuming that LogMeIn completes its filings and is eventually listed on the Nasdaq stock market, it will be faced with enhanced scrutiny. Not only will it be confronted with more, costly regulations at the hands of the Sarbanes-Oxley Act of 2002, it will also have a slew of new stakeholders that will require the company to operate at a high level. It's a tall order.
Regardless, LogMeIn ostensibly believes that it's up to the challenge. So now the question is whether its finances can match its desire. Is LogMeIn financially sound, now performing better than it has in the past? Let's take a look.
Revenue and profit
One of the first things investors look for after considering a stock's price is its financial health. In LogMeIn's case, it's a mixed bag. The company had been incurring a loss for years. Only recently has it been able to generate a profit.
According to its SEC filing, LogMeIn's revenue grew from $11.3 million in 2006 to $51.7 million by the end of 2008. It's currently on track to beat that figure this year, thanks to $17.2 million in generated revenue for the first quarter of 2009.
For the year ended December 31, 2006, LogMeIn incurred a net loss of $6.7 million. And for 2007, it incurred a net loss of $9 million. But by the end of 2008, the company had reduced its losses to $5.4 million. And during the first quarter of 2009, the company enjoyed a profit of $2.1 million.
The fact that LogMeIn finally turned a profit might be a sign of good things to come. During the same period last year, the company lost $3.6 million.
Is it financially healthy?
The balance sheet is an important financial instrument. It tells investors what a company owns and how much it owes to creditors. It does a fine job of giving investors a clear picture of the firm's financial health.
LogMeIn's balance sheet, which was compiled by independent auditors, reports that it currently has $27 million in cash on hand and total assets of $40.7 million.
Besides accounts payable of $1.8 million, long-term liabilities of $133,000, and expenses that haven't been paid of almost $5 million, LogMeIn's principal liability is deferred revenue--cash collected from customers that can't be called revenue until the company performs the action it was paid to complete. That account is valued at $29 million.
The balance of the difference between assets and liabilities is made up by the company's stockholders' equity, which is currently valued at $4.8 million.
LogMeIn seems to be in fine financial health. It has little debt, no major liabilities, and a hefty amount of cash.
Cash management
This brings us to the cash flow statement, a good indicator of the short-term viability of investing in a company. Is it capable of paying its bills? Are executives managing the firm's cash well to ensure future success?
According to its filing, LogMeIn added $10.7 million to its coffers in 2007. For its 2008 calendar year, it added $4.2 million in cash to its books. During the first quarter of 2009, LogMeIn added $4.1 million in cash.
Perhaps more important to investors, the majority of that cash over the years has been added through operating activities. In other words, much of LogMeIn's cash is principally being generated from the sale of its services to customers.
Dividends
For some investors, dividends matter. They show that a company is financially sound and can afford to give some money back. Dividends can also be used to increase awareness for a stock that's being ignored by investors. And since they provide a regular cash flow outside of selling shares, dividends are coveted by some.
According to LogMeIn's filing, it does not intend to issue dividends. The company instead wants to invest in its future growth. That's not uncommon. Most companies so young and new to the public markets do not offer dividends. In fact, Google has never issued a dividend. So LogMeIn looks to be following suit.
Investment strategy
Since investing in a company is a long-term endeavor, most investors want to know what the company has planned. Investing in LogMeIn would be no different. That's why the company listed a variety of plans it has for the future.
"We intend to use the net proceeds to us from this offering for working capital and other general corporate purposes, including the development of new services, sales and marketing activities, and capital expenditures," LogMeIn wrote in its filing. "We may also use a portion of the net proceeds to us for the acquisition of, or investment in, companies, technologies, services, or assets that complement our business."
The bottom line
Is LogMeIn in sound financial health? Ultimately, it's up to the individual investors to decide. But a quick glance at its financial performance tells us that things are going relatively well for LogMeIn.
http://news.cnet.com/8301-17939_109-10275931-2.html