UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

SCHEDULE 14A INFORMATION

Proxy Statement Pursuant to Section 14(a) of the Securities
Exchange Act of 1934
(Amendment No.   )

Filed by the Registrant o  Filed by a Party other than the Registrant þ

Check the appropriate box:
o    Preliminary Proxy Statement
o    Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2))
o    Definitive Proxy Statement
þ    Definitive Additional Materials
o    Soliciting Material Pursuant to §240.14a -12

EMAGEON INC.
(Name of the Registrant as Specified In Its Charter)

OLIVER PRESS PARTNERS, LLC
OLIVER PRESS INVESTORS, LLC
AUGUSTUS K. OLIVER
CLIFFORD PRESS
DAVENPORT PARTNERS, L.P.
JE PARTNERS, L.P.
OLIVER PRESS MASTER FUND, L.P.
BENNER A. ULRICH
(Name(s) of Person(s) Filing Proxy Statement, if other than the Registrant)

Payment of Filing Fee (Check the appropriate box):

þ No fee required.
 
o

Fee computed on table below per Exchange Act Rules 14a-6(i)(4) and 0-11.
 
  (1)     

Title of each class of securities to which transaction applies: N/A
  (2)

Aggregate number of securities to which transaction applies: N/A
  (3)

Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11 (Set forth the amount on which the filing fee is calculated and state how it was determined): N/A
  (4)

Proposed maximum aggregate value of transaction: N/A
  (5)

Total fee paid: N/A
 
o

Fee paid previously with preliminary materials.
 
o

Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and identify the
filing for which the offsetting fee was paid previously. Identify the previous filing by registration statement number, or the Form or Schedule and the date of its filing.
     
  (1)

Amount Previously Paid: N/A
  (2)

Form. Schedule or Registration Statement No.: N/A
  (3)

Filing Party: N/A
  (4)

Date Filed: N/A
 

OPP Presentation to Risk Metrics/ISS
Emageon, Inc


11 June, 2008

Oliver Press Partners, LLC

Oliver Press Partners, LLC is an investment management firm based in New York City. OPP serves as
investment manager for several investment partnerships, including Davenport Partners, L.P., Oliver Press
Master Fund, L.P., and JE Partners, L.P. Under the direction of OPP principals Augustus K. Oliver and
Clifford Press, the partnerships invest in companies that the principals believe are undervalued and that
have available strategic options to enhance value for shareholders. Between them, Messrs. Oliver and Press
have almost 60 years of experience in investment management and the financial and legal aspects of
merger and acquisition transactions.

1

Reasons for this Solicitation



Background of this Solicitation

The partnerships under OPP’s management initially purchased approximately 12% of the outstanding shares of
Emageon in the summer of 2007 because OPP believed them to be undervalued and that Emageon was at an
inflection point as an independent public company.

In August 2007 we commenced discussions with Emageon’s management and directors about the desirability of
restoring an ownership perspective to the Board.  This appeared to coincide with the Board’s own judgment that
the Company needed to explore its strategic alternatives in order to unlock the value in the business.

The Company’s initial response was to start a review process of shareholder representation that we were led to
believe would result in an invitation to us and possibly one or more other large shareholders to join the Board.

In November 2007 the Company announced third quarter results and sales guidelines that were not well received.  
Immediately following this announcement, the market capitalization of the Company was cut in half bringing the
share price decline for the year to 74%. Subsequent to this price decline, OPP increased its position to 16.6%.

Despite numerous attempts by us to negotiate meaningful shareholder representation to the Board, the Company
has renominated all incumbents for the 2011 class at the 2008 Annual Meeting. In the absence of any
representation by us or any other significant shareholder, we commenced this solicitation for our nominees.

3

Dramatic Decline in Share Price and Valuation

EMAG shares have declined 72% in the LTM from $8.53 to $2.40

In the prior calendar year, EMAG shares declined 40% from $13.84 to $8.26

EMAG shares are currently trading at an extreme discount valuation when compared to
enterprise software trading levels (see Appendix 1)

As a multiple of maintenance revenue, the stock is trading at 0.4 times, a substantial drop
from a multiple of 3.1 times one year ago

4

Board Share Ownership – Actions Speak Louder Than Words

The current board owns less than 1.0% of the common stock

At the time of the IPO in February 2005, Emageon had a Board that collectively
owned 22% of the outstanding shares. The largest holder on the Board, Chris
Horgan was the beneficial owner of 3,079,160 shares. He distributed this entire
position during 2005 and left the Board in 2007

The continuing directors, who collectively owned more than 6.0% of the outstanding
shares at the IPO, have divested the overwhelming majority of their position as
demonstrated on the following slides

5

Unsuccessful Sales Process

“In April 2007 our Board of Directors began a comprehensive investigation to explore the possibility of a strategic transaction. The
Board appointed a Strategic Committee to lead the investigation. The committee consisted of Hugh H. Williamson, III, Fred C. Goad,
Jr. and Roddy J.H. Clark, with Mr. Williamson serving as the committee’s chairman. The committee engaged SunTrust Robinson
Humphrey as its financial advisor, and Bass, Berry & Sims PLC as its legal counsel. In conducting its investigation, the committee
considered all alternatives, including a sale of the company, a merger of equals, smaller acquisitions, recapitalizations and share
repurchases. The investigation concluded in April 2008. The Committee did not identify a viable prospect for a strategic transaction
at this time, and recommended to the Board of Directors that the Company continue as an independent company and focus on
improving its core products and services.”

Source: EMAG Form 10K/A filed 04/29/08

6

Insider Sales – Hugh Williamson
(Lead Director and Special Committee member)

Hugh Williamson sells 138,544 shares between September 06 and February 07

Hugh Williamson owned 192,805 shares at the IPO and owns 9,560 shares today, having
reduced his ownership position by 95%

Source: Bloomberg

7

Insider Sales – Roddy Clark (Special Committee member)

Roddy Clark divested 245,347 shares between January 06 and June 06

Roddy Clark owned 595,421 shares at the IPO and owns 2,000 shares today, having reduced
his ownership position by 99%

Source: Bloomberg

8

Insider Sales – John Thompson

John Thompson divested 273,700 shares between September 06 and February 07

John Thompson owned 290,090 shares at the IPO and owns 120,353 shares today

Source: Bloomberg

9

Insider Sales – Charles Jett

Charles Jett divested 175,000 shares between September 06 and February 07

Charles Jett owned 108,948 shares at the IPO and owns 64,620 shares today

Source: Bloomberg

10

“Emageon 2.0”

We believe this is an opportunistic response, filed late in the proxy
contest – no explanation provided to shareholders, lacks articulated
targets and objectives

No information is disclosed to shareholders about proposed sources
of financing, or dilutive effects on existing holders

11

The OPP Platform

OPP believes that Shareholders need urgent representation:

Loss of confidence in current Board by investors, as evidenced by the discounted valuation

The failure by the current management and Board to articulate any vision for the Company’s
future suggests they are either unwilling or unable to address the strategic issues that now
demand resolution.

Continued ‘pay for failure’ – after he presided over an 84% decline in market value in the
preceding year, the Board granted Charles Jett 100,000 options (and 25,000 RSU’s) in
February 2008

After a full year of discussing shareholder representation with us, the current Board has re-
nominated all incumbents

Although they will only occupy a minority of the Board, if elected, the OPP nominees
possess the ownership interest and motivation to single-mindedly pursue the best
outcome for the Company, its customers and employees above any other agenda

12

OPP Benefits to shareholders

Immediate benefits to shareholders by restoring direct shareholder representation and
credibility

Demonstrated record of Board participation and an established history for negotiating
shareholder Board representations

CMVT – Comverse Technologies, Inc.

Gus Oliver is a director of this $3.8 billion market capitalization provider of telecommunications software and
       services.

OPP has 1,693,307 shares (1% position)

COHR – Coherent, Inc.

Clifford Press is a director of this $770 million market capitalization manufacturer of laser based photonic products.

OPP has 2,604,089 shares (11% position)

PNX – Phoenix Companies

Gus Oliver is a director of this $1.1 billion provider of life insurance annuities and investment products.

OPP has 5,688,206 shares (5% position)

In our view, direct shareholder representation on the Emageon Board will be a significant improvement:

13

OPP Nominees

Gus Oliver - Gus is a graduate of Yale University and American University Law School. He began his career as a lawyer
with Skadden, Arps, Slate, Meagher & Flom, becoming a partner in 1983. In 1984, he became a partner of the investment firm
Gollust, Tierney and Oliver and its principal investment partnership, Coniston Partners, which engaged in the same investment
strategy as Oliver Press. Since 1999, he has been a partner of WaterView Advisors, the investment manager for two
companion private equity investment partnerships. Gus is currently a director of Scholastic Corp., Comverse Technology, Inc.
and The Phoenix Companies, Inc. He is also a director of Lincoln Center Theater

Clifford Press - Clifford has been a managing member of Oliver Press Partners, LLC, an investment advisory firm, since
March 2005. Prior to 1986 he was employed as an investment banker at Morgan Stanley & Co., Incorporated. From 1986 to
March 2003, Clifford was a General Partner of Hyde Park Holdings, Inc., a private equity investment firm ("HPH"). Clifford is
currently a director of Coherent, Inc., and a director of GM Network Ltd., a private holding company. Clifford received his MA
degree from Oxford University and an MBA degree from Harvard Business School.

Benner Ulrich - Benner has been a Principal and director of research of Oliver Press Partners, LLC, an investment
advisory firm, since March 2007. He has over 7 years of analytical experience focused on various healthcare sectors. From
2000 to 2007, Benner worked at UBS Investment Bank in the healthcare group, most recently as a director covering medical
technology companies. Benner is a graduate of Lehigh University.

14

Appendix 1

15

    SOFTWARE
 
      Bear, Stearns & Co. Inc. – U.S. Equity Research
   May 30, 2008    
 
 
      
  Sector Rating    

Software Sector Consolidation Weekly Refresh (Week 22 - 2008):
What Price Is Right?

  • SOFTWARE SECTOR CONSOLIDATION LIKELY TO CONTINUE. We believe that consolidation within the software industry will continue at an accelerated rate. The primary goal of this note is to identify likely financial (versus strategic) acquisitions in the software sector and their respective takeout values. We have focused on the value of maintenance revenue and organic, federal NOLs.

  • THIS WEEKLY NOTE FOLLOWS A SERIES OF PREVIOUS NOTES ON SOFTWARE CONSOLIDATION (the first published March 22, 2005 and a full report dated August 2007) and provides investors with the latest updated values for maintenance revenue and enterprise values for 103 software companies.

  • For financial acquisitions, we calculate implied logical take-out multiples at 3.5x-5.1x on an adjusted EV/Maintenance basis. The following companies fall within or below this range, have over $150M market cap, and have an average trading volume of greater than 200,000: VIGN, LAVA, OPTV, ENTU, INTV, ITWO, NOVL, CHRD, SNWL, CDNS, ACIW, MSCS, VTAL, MENT, ACTU, JDAS, IWOV, JKHY, SPRT, PFWD, TLEO, PMTC, ININ, LWSN, WIND, SNPS, RNOW, EPIC, SPSS, QSFT, CA, MSTR, and CPWR.

  • CHANGES FROM LAST WEEK: ARBA was deleted because it appreciated above the 3.5-5.1x EV/Maintenance.

  • WE CURRENTLY RATE THE SOFTWARE SECTOR MARKET WEIGHT. However, we believe that a consolidation play at the low end may be a logical long strategy at this time.
  Software Market Weight    
           
 
Companies Covered
   
    Company Cl. Price
Rtg
      
  ANSYS, Inc. $47.30 O    
  Autodesk, Inc. $41.16 O    
  BMC Software $40.10 U    
  CA Inc. $26.54 P    
  Citrix Systems Inc. $34.23 P    
  McAfee, Inc. $36.25 O    
  Microsoft Corp. $28.32 P    
  Oracle Corporation $22.84 O    
  Parametric Technology $18.78 O    
  Corp.        
  Symantec Corp. $21.73 P    
  Tibco Software, Inc. $7.72 P    
  VMware Inc. $68.67 O    
  O=Outperform; P=Peer Perform; U=Underperform  
  Securities in this report priced as of:  
  May 30, 2008 16:00ET  
           
           
           
             
             
             
             
             
             
             
             
             
             
             
 
 
      
  Equity Research Analyst(s)          

 

            
  John DiFucci          
  212-272-0171          
  jdifucci@bear.com          
  Andrew Matorin          
  212-272-5998          
  amatorin@bear.com          
  Nathan Zhou          
  212-272-9412          
  nzhou@bear.com          
             
             
             
             

 

† All numbers are after stock-based compensation expense, normalized consistent with BSC option expense policy.
Bear Stearns does and seeks to do business with companies covered in its research reports. As a result investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Customers of Bear Stearns in the United States can receive independent, third-party research on the company or companies covered in this report, at no cost to them, where such research is available. Customers can access this independent research at www.bearstearns.com/independentresearch or can call (800) 517-2327 to request a copy of this research. Investors should consider this report as only a single factor in making their investment decision.

PLEASE REFER TO PAGE 8 OF THIS REPORT FOR IMPORTANT DISCLOSURES AND ANALYST CERTIFICATION
BEAR, STEARNS & CO. INC.   383 MADISON AVENUE NEW YORK, NY 10179   (212) 272-2000   WWW.BEARSTEARNS.COM

Exhibit 1. “Adjusted” Maintenance Valuation Matrix for Software Companies, Sorted According to EV/Adjusted Maintenance (LTM)

   
 
    
 
    
 
Price
 
 
 Software  
 
Shares
 
 
Market
 
 
52 Wk.
 
 
Ent
 
 
NPV of "Organic"
 
Adjusted Ent
 
Revenue*
 
 
EV/Revenue
 
 
Mtn
 
 
EV/Mtn
 
 
Adj. EV/Mtn
               Company   Symbol    
Rating
   
05/30/08
    Segment    
Outstg
   
Cap
   
Avg. Vol.
   
Value
   
NOLs
 
Value
 
LTM+
   
2008E
    LTM+    
LTM+
   
LTM+
   
LTM+
  ActivIdentity    ACTI      NR      $ 2.84      Security      45.8      130.0      0.103      13.3     
16.2
  
(2.9)
   59.1      64.7      0.2      20.7      0.6      (0.1 )
  Merge Technologies 2, 20 MRGE   NR   $ 0.69   Health Care   33.9   23.4   0.263   7.1  
3.7
3.5
57.4   56.6   0.1   22.5   0.3   0.2  
  Emageon 2 EMAG   NR   $ 2.30   Health Care   21.5   49.3   0.219   31.1  
7.7
23.4
96.5   83.5   0.3   53.0   0.6   0.4  
  Borland BORL   NR   $ 1.41   App / Infra Dev   72.8   102.6   0.784   111.5  
16.1
95.4
256.1   221.7   0.4   100.2   1.1   1.0  
  SoftBrands SBN   NR   $ 1.12   Application   41.8   46.8   0.051   58.3  
5.1
53.2
92.9   103.4   0.6   54.9   1.1   1.0  
  Kana Software 11 KANA   NR   $ 1.50   Application   41.2   61.8   0.105   59.1  
9.7
49.4
66.0   72.1   0.9   45.9   1.3   1.1  
  Vignette VIGN   NR   $ 12.95   Content Management   24.4   315.6   0.243   141.2  
49.4
91.8
189.0   192.7   0.7   83.3   1.7   1.1  
  Tumbleweed Communications 2 TMWD   NR   $ 1.85   Messaging & Comm   51.2   94.6   0.136   66.1  
14.8
51.3
57.7   61.5   1.1   32.7   2.0   1.6  
  QAD 19 QADI   NR   $ 7.66   Application   31.9   244.3   0.066   216.0  
1.9
214.1
262.7   280.0   0.8   133.2   1.6   1.6  
  Magma Design Automation 6 LAVA   NR   $ 7.55   Engineering   42.3   319.1   0.542   315.3  
26.4
288.9
198.9   219.8   1.6   174.6   1.8   1.7  
  SumTotal Systems 1,5 SUMT   NR   $ 4.65   Education & Training   32.5   151.0   0.146   109.2  
NA
109.2
128.9   135.4   0.8   64.1   1.7   1.7  
  OpenTV 2 OPTV   NR   $ 1.47   Messaging & Comm   140.5   206.5   0.688   110.5  
32.3
78.2
118.7   111.5   0.9   41.9   2.6   1.9  
  Retalix 5, 10 RTLX   NR   $ 15.20   Supply Chain   20.1   305.6   0.030   272.2  
3.1
269.1
222.6   229.8   1.2   144.0   1.9   1.9  
  Entrust 17 ENTU   NR   $ 2.80   Security   61.2   171.3   0.364   148.3  
26.8
121.5
100.9   108.1   1.5   64.0   2.3   1.9  
  IONA IONA   NR   $ 3.62   Integration   36.6   132.6   0.118   77.6  
12.1
65.5
78.5   78.1   1.0   32.9   2.4   2.0  
  Intervoice 5 INTV   NR   $ 6.46   Messaging & Comm   39.4   254.6   0.322   215.9  
0.5
215.5
202.4   217.8   1.1   105.5   2.0   2.0  
  Bottomline Technologies 5 EPAY   NR   $ 9.95   Fin / Legal / Gov't   23.9   238.1   0.149   161.1  
NA
161.1
127.6   140.0   1.3   78.7   2.0   2.0  
  Kintera KNTA   NR   $ 1.08   Application   40.2   43.5   0.048   41.0  
NA
41.0
43.1   43.1   1.0   19.6   2.1   2.1  
  Saba Software SABA   NR   $ 3.82   Education & Training   29.4   112.2   0.096   98.5  
17.6
81.0
105.2   113.3   0.9   34.6   2.8   2.3  
  Unica UNCA   NR   $ 8.40   Application   20.4   171.4   0.092   130.3  
0.0
130.3
111.4   128.1   1.2   54.9   2.4   2.4  
  i2 Technologies ITWO   NR   $ 12.00   Supply Chain   26.4   317.3   0.247   270.3  
49.7
220.6
257.3   254.4   1.1   88.5   3.1   2.5  
  Novell NOVL   NR   $ 7.08   Operating Systems   354.3   2,508.4   4.505   1,514.9  
23.9
1,491.0
948.3   968.3   1.6   552.4   2.7   2.7  
  Chordiant Software 2, 22 CHRD   NR   $ 6.42   Application   33.1   212.3   0.566   143.5  
25.2
118.3
122.7   114.6   1.2   40.5   3.5   2.9  
  Sonicwall 5 SNWL   NR   $ 8.00   Security   61.0   487.9   0.678   285.4  
0.6
284.7
209.4   228.9   1.4   97.4   2.9   2.9  
  Cadence Design Systems 13 CDNS   NR   $ 11.62   Engineering   262.8   3,054.0   4.319   2,947.7  
4.7
2,943.0
1,537.0   1,505.8   1.9   1,002.0   2.9   2.9  
  Opnet OPNT   NR   $ 9.45   NSM   20.2   190.9   0.080   105.1  
NA
105.1
101.3   115.3   1.0   34.8   3.0   3.0  
  ACI Worldwide 5 ACIW   NR   $ 17.41   Fin / Legal / Gov't   35.2   612.2   0.488   578.6  
1.0
577.6
376.9   401.6   1.5   190.7   3.0   3.0  
  MSC.Software MSCS   NR   $ 12.37   Engineering   44.8   553.6   0.256   412.5  
6.9
405.6
250.2   258.1   1.6   125.9   3.3   3.2  
  Vital Images 8 VTAL   NR   $ 15.45   Health Care   17.1   263.8   0.344   84.9  
5.6
79.3
66.7   69.0   1.3   23.5   3.6   3.4  
  Mentor Graphics 2 MENT   NR   $ 11.65   Engineering   90.8   1,057.2   1.586   1,126.5  
14.2
1,112.2
864.4   902.3   1.3   324.4   3.5   3.4  
  American Software AMSWA   NR   $ 6.54   Supply Chain   26.4   173.0   0.139   98.1  
1.2
96.9
89.9   95.6   1.1   27.8   3.5   3.5  
  Actuate ACTU   NR   $ 4.96   Business Intelligence   67.3   333.7   0.599   260.9  
NA
260.9
138.2   137.7   1.9   72.9   3.6   3.6  
  JDA Software JDAS   NR   $ 20.40   Supply Chain   35.1   715.7   0.390   699.9  
NA
699.9
376.7   384.5   1.9   179.5   3.9   3.9  
  Interwoven IWOV   NR   $ 13.41   Content Management   46.7   626.5   0.411   453.1  
61.9
391.3
234.4   257.1   1.9   99.2   4.6   3.9  
  Jack Henry & Associates 2,4 JKHY   NR   $ 23.80   Fin / Legal / Gov't   88.9   2,116.0   0.742   2,159.6  
0.0
2,159.6
736.8   791.9   2.9   547.2   3.9   3.9  
  SupportSoft SPRT   NR   $ 3.73   NSM   46.2   172.1   0.201   64.8  
NA
64.8
49.0   50.7   1.3   16.2   4.0   4.0  
  Progress PRGS   NR   $ 31.14   App / Infra Dev   44.2   1,375.6   0.274   1,057.8  
10.2
1,047.6
499.8   525.0   2.1   258.3   4.1   4.1  
  Phase Forward 5 PFWD   NR   $ 17.34   Content Management   43.7   758.4   0.429   559.2  
18.0
541.2
142.2   168.3   3.9   129.2   4.3   4.2  
  Taleo 3 TLEO   NR   $ 19.79   HR & Workforce Mgmt   28.9   571.9   0.330   480.3  
9.6
470.6
136.5   157.6   3.5   111.6   4.3   4.2  
  PTC 21 PMTC   O   $ 18.78   Engineering   117.2   2,201.9   1.804   2,107.4  
70.9
2,036.5
1,042.3   1,089.9   2.0   481.1   4.4   4.2  
  Interactive Intelligence 9 ININ   NR   $ 13.03   Messaging & Comm   19.2   250.4   0.229   200.9  
12.5
188.4
115.1   132.3   1.7   43.9   4.6   4.3  
  Lawson Software LWSN   NR   $ 8.72   Application   178.8   1,559.2   2.351   1,421.0  
NA
1,421.0
810.1   879.2   1.8   325.6   4.4   4.4  
  Wind River Systems 3 WIND   NR   $ 10.82   Operating Systems   87.4   945.7   0.885   701.5  
21.2
680.4
328.6   375.4   2.1   155.7   4.5   4.4  
  Synopsys, Inc 13 SNPS   NR   $ 26.35   Engineering   145.3   3,827.9   1.274   3,010.4  
26.0
2,984.4
1,259.3   1,369.7   2.4   680.4   4.4   4.4  
  RightNow Technologies 1 RNOW   NR   $ 14.86   Application   33.5   498.3   0.284   399.4  
NA
399.4
119.3   139.8   3.3   90.5   4.4   4.4  
  Callidus Software 5 CALD   NR   $ 6.08   HR & Workforce Mgmt   29.8   180.9   0.169   138.7  
NA
138.7
104.9   117.6   1.3   30.8   4.5   4.5  
  Epicor Software EPIC   NR   $ 8.58   Application   57.9   496.8   0.754   781.0  
19.7
761.2
456.1   536.1   1.7   167.4   4.7   4.5  
  SPSS SPSS   NR   $ 39.37   Business Intelligence   19.2   755.2   0.294   610.6  
28.4
582.1
299.1   315.9   2.0   121.5   5.0   4.8  
  Quest Software QSFT   NR   $ 17.01   NSM   106.0   1,803.9   1.020   1,420.4  
5.3
1,415.1
654.0   720.3   2.2   294.5   4.8   4.8  
  CA 1,14 CA   P   $ 26.54   NSM   537.0   14,252.0   3.251   14,289.0  
157.4
14,131.6
4,277.0   4,463.4   3.3   2,902.6   4.9   4.9  
  MicroStrategy MSTR   NR   $ 79.61   Business Intelligence   12.4   985.7   0.300   885.8  
46.0
839.8
364.9   362.9   2.4   171.3   5.2   4.9  
  Jacada JCDA   NR   $ 3.71   Integration   20.6   76.3   0.026   42.5  
3.2
39.2
13.3   NA   3.2   7.8   5.5   5.0  
  Compuware   CPWR     NR     $ 10.19     App / Infra Dev     268.7     2,738.4     4.009     2,452.0    
0.9
 
2,451.1
  1,229.6     1,271.8     2.0     476.4     5.1     5.1  
 
  Ariba1   ARBA     NR     $ 14.84     Supply Chain     77.6     1,152.3     1.027     1,057.7    
180.4
 
877.3
  308.6     345.8     3.4     160.9     6.6     5.5  
  Open Text   OTEX     NR     $ 35.91     Content Management     52.8     1,895.7     0.579     1,988.3    
45.6
 
1,942.8
  700.5     739.1     2.8     350.7     5.7     5.5  
  Tyler TYL   NR   $ 13.96   Fin / Legal / Gov't   39.5   551.8   0.256   510.8  
0.0
510.8
228.8   259.7   2.2   90.3   5.7   5.7  
  Deltek PROJ   NR   $ 10.04   Application   44.4   445.8   0.133   603.8  
NA
603.8
280.4   308.3   2.2   106.3   5.7   5.7  
  Sybase SY   NR   $ 32.02   Integration   90.8   2,906.7   1.365   2,529.1  
NA
2,529.1
1,055.6   1,095.8   2.4   432.1   5.9   5.9  
  TIBCO TIBX   P   $ 7.72   Integration   190.1   1,467.3   3.416   1,226.8  
NA
1,226.8
598.3   660.6   2.1   206.9   5.9   5.9  
  Blackboard 5 BBBB   NR   $ 37.88   Education & Training   30.2   1,145.8   0.381   1,245.4  
12.7
1,232.7
252.6   313.9   4.9   194.6   6.4   6.3  
  Advent Software 1 ADVS   NR   $ 42.97   Fin / Legal / Gov't   28.1   1,206.6   0.326   1,148.6  
NA
1,148.6
228.8   254.3   5.0   178.1   6.4   6.4  
  The TriZetto Group 5 TZIX   NR   $ 21.47   Health Care   60.2   1,293.1   0.755   1,461.2  
10.7
1,450.5
445.1   497.7   3.3   223.5   6.5   6.5  
  BMC Software BMC   U   $ 40.10   NSM   194.8   7,811.5   2.312   6,336.3  
0.0
6,336.3
1,731.6   1,883.9   3.7   967.7   6.5   6.5  
  S1 SONE   NR   $ 6.54   Fin / Legal / Gov't   57.1   373.4   0.447   311.9  
NA
311.9
212.0   223.9   1.5   46.8   6.7   6.7  
  Intuit 2 INTU   NR   $ 28.96   Consumer Software   333.4   9,656.3   3.495   9,461.9  
0.0
9,461.9
3,025.5   3,170.3   3.1   1,410.6   6.7   6.7  

 
Source: Bear, Stearns & Co. Inc.; FactSet Research Systems Inc.; SEC filings.

 

 

 
 
BEAR, STEARNS & CO. INC. 383 MADISON AVENUE NEW YORK, NY 10179 (212) 272-2000 WWW.BEARSTEARNS.COM  
3

Exhibit 1 (cont’d). “Adjusted” Maintenance Valuation Matrix for Software Companies, Sorted According to EV/Adjusted Maintenance (LTM)

   
 
    
 
    
 
Price
 
 
 Software  
 
Shares
 
 
Market
 
 
52 Wk.
 
 
Ent
 
 
NPV of "Organic"
 
Adjusted Ent
 
Revenue*
 
 
EV/Revenue
 
 
Mtn
 
 
EV/Mtn
 
 
Adj. EV/Mtn
               Company  
Symbol
   
Rating
   
05/30/08
    Segment    
Outstg
   
Cap
   
Avg. Vol.
   
Value
   
NOLs
 
Value
 
LTM+
   
2008E
    LTM+    
LTM+
   
LTM+
   
LTM+
  Moldflow 10   MFLO     NR     $ 22.01     Engineering     12.1     265.2     0.109     174.7    
0.5
  174.2   61.3     NA     2.8     25.4     6.9     6.8  
  McAfee MFE   O   $ 36.25   Security   164.9   5,976.4   1.638   4,682.8  
0.0
4,682.8 1,363.0   1,507.8   3.4   660.2   7.1   7.1  
  Aspen Technology AZPN.PK   NR   $ 14.40   Engineering   89.0   1,281.5   NA   1,335.6  
44.6
1,291.0 341.7   379.7   3.9   180.8   7.4   7.1  
  Citrix 18 CTXS   P   $ 34.23   Integration   190.0   6,503.3   3.442   5,719.5  
3.5
5,716.0 1,460.9   1,625.8   3.9   792.4   7.2   7.2  
  Symantec SYMC   P   $ 21.73   Security   856.7   18,617.1   13.761   18,490.2  
0.0
18,490.2 5,937.2   6,257.2   3.1   2,518.3   7.3   7.3  
  Double-Take Software DBTK   NR   $ 13.04   Storage   23.1   301.4   0.288   231.6  
NA
231.6 87.8   103.0   2.6   31.5   7.3   7.3  
  Commvault 2 CVLT   NR   $ 17.51   Storage   45.5   797.5   0.428   705.8  
23.3
682.5 198.3   233.8   3.6   89.3   7.9   7.6  
  Manhattan Associates MANH   NR   $ 25.40   Supply Chain   24.9   632.2   0.273   567.8  
0.0
567.8 347.5   375.4   1.6   69.2   8.2   8.2  
  MICROS Systems 4 MCRS   NR   $ 32.97   Business Intelligence   83.2   2,742.2   0.843   2,298.8  
NA
2,298.8 919.2   997.9   2.5   279.1   8.2   8.2  
  Blackbaud 3 BLKB   NR   $ 23.66   Fin / Legal / Gov't   44.7   1,056.7   0.349   1,057.0  
0.2
1,056.9 271.3   297.5   3.9   127.0   8.3   8.3  
  Macrovision 2 MVSND   NR   $ 13.53   Content Management   54.1   731.7   1.085   526.1  
NA
526.1 151.3   610.8   3.5   63.1   8.3   8.3  
  Avid Technology 7 AVID   NR   $ 21.46   Multimedia   39.4   844.7   0.547   694.3  
39.2
655.1 908.9   881.1   0.8   76.3   9.1   8.6  
  Cerner 3 CERN   P   $ 45.37   Health Care   83.5   3,789.7   0.743   3,629.4  
0.0
3,629.4 1,539.1   1,660.8   2.4   411.7   8.8   8.8  
  Pegasystems PEGA   NR   $ 12.32   Application   37.3   459.7   0.087   298.8  
3.5
295.3 172.9   NA   1.7   33.0   9.1   9.0  
  CheckPoint 16 CHKP   NR   $ 24.83   Security   219.4   5,447.5   1.770   4,128.8  
214.6
3,914.3 758.5   803.0   5.4   419.9   9.8   9.3  
  Art Technology Group ARTG   NR   $ 3.75   App / Infra Dev   128.4   481.6   1.201   434.7  
37.5
397.1 144.4   161.8   3.0   42.5   10.2   9.3  
  Infomatica INFA   NR   $ 18.00   Business Intelligence   103.7   1,867.1   1.430   1,571.3  
6.9
1,564.5 407.9   458.3   3.9   158.0   9.9   9.9  
  The Ultimate Software Group 5 ULTI   NR   $ 37.83   HR & Workforce Mgmt   26.5   1,001.0   0.226   971.8  
23.7
948.0 158.4   189.3   6.1   93.2   10.4   10.2  
  Red Hat 1,3 RHT   NR   $ 24.36   Operating Systems   220.4   5,367.9   2.326   4,606.0  
NA
4,606.0 523.0   630.1   8.8   449.8   10.2   10.2  
  SAP SAP   NR   $ 54.60   Application   1,197.0   65,356.2   2.376   61,407.8  
0.0
61,407.8 14,180.8   18,743.5   4.3   5,955.9   10.3   10.3  
  Concur Technologies 1,3 CNQR   NR   $ 36.67   Application   47.3   1,736.3   0.640   1,751.1  
78.8
1,672.2 172.0   222.2   10.2   160.0   10.9   10.5  
  Salesforce.com 1,3 CRM   NR   $ 72.31   Application   124.4   8,996.4   1.836   8,245.7  
47.9
8,197.9 833.9   1,074.0   9.9   758.2   10.9   10.8  
  Oracle ORCL   O   $ 22.84   App / Infra Dev   5,235.0   119,567.4   36.528   115,299.4  
NA
115,299.4 21,211.0   23,483.8   5.4   9,962.0   11.6   11.6  
  Guidance Software GUID   NR   $ 9.99   Fin / Legal / Gov't   23.1   230.6   0.075   195.0  
0.1
194.9 83.0   97.6   2.4   14.6   13.3   13.3  
  ANSYS 1 ANSS   O   $ 47.30   Engineering   81.6   3,861.7   0.774   3,708.7  
10.2
3,698.5 407.0   459.0   9.1   271.4   13.7   13.6  
  Autodesk ADSK   O   $ 41.16   Engineering   232.6   9,573.8   3.453   8,663.5  
127.7
8,535.8 2,262.1   2,481.5   3.8   594.6   14.6   14.4  
  F5 Networks 10 FFIV   NR   $ 30.05   Networking   83.8   2,518.3   2.549   2,068.6  
3.7
2,064.9 591.4   664.2   3.5   139.6   14.8   14.8  
  Quality Systems QSII   NR   $ 32.93   Health Care   27.7   912.0   0.339   833.6  
0.0
833.6 180.4   214.1   4.6   52.7   15.8   15.8  
  Ansoft 2 ANST   NR   $ 36.48   Engineering   25.0   913.3   0.286   838.1  
0.4
837.7 103.4   111.8   8.1   42.2   19.9   19.9  
  Falconstor FALC   NR   $ 8.94   Storage   51.7   462.1   0.509   405.3  
7.0
398.3 82.9   103.1   4.9   19.4   20.9   20.5  
  Riverbed Technology 2 RVBD   NR   $ 17.95   Networking   74.0   1,327.6   2.063   1,058.5  
10.0
1,048.5 266.6   321.3   4.0   46.7   22.7   22.4  
  Nuance Communications NUAN   NR   $ 19.72   Messaging & Comm   206.3   4,069.2   3.042   4,619.0  
NA
4,619.0 734.8   975.3   6.3   137.5   33.6   33.6  
  ANTs Software ANTS   NR   $ 1.10   App / Infra Dev   57.8   63.6   0.032   70.7  
8.4
62.2 0.3   NA   NM   0.1   NM   NM  
  Adobe ADBE   NR   $ 44.06   Consumer Software   571.3   25,169.7   7.554   23,697.2  
0.0
23,697.2 3,398.9   3,587.9   7.0   NA   NA   NM  
  Microsoft MSFT   P   $ 28.32   Operating Systems   9,428.0   267,001.0   71.337   240,660.0  
0.0
240,660.0 57,954.0   63,524.3   4.2   NA   NA   NM  
  Secure Computing SCUR   NR   $ 5.33   Security   67.4   359.3   0.813   377.2  
37.5
339.7 244.8   273.6   1.5   NA   NA   NM  
  Verisign VRSN   NR   $ 40.04   Security   210.5   8,427.3   4.436   9,233.5  
67.0
9,166.5 1,522.1   946.4   6.1   NA   NA   NM  
  VMware 20 VMW   O   $ 68.67   NSM   398.1   27,335.0   3.395   26,479.0  
0.0
26,479.0 1,505.3   1,997.1   17.6   374.5   NM   NM  

Ratings Key: O=Outperform, P=Peer Perform, U=Underperform, NR=Not Rated.
* Calendarized Revenue and EPS Estimates
+ LTM numbers as of calendar first quarter of 2008, where available
1. Maintenance includes license component
2. Maintenance includes prof. services component
3. Maintenance included in license revenue due to subscription model
4. Includes maintenance on hardware
5. Maintenance includes all recurring revenue
6. Maintenance revenue is taken from backlog revenue
7. Maintenance estimated at 60% of combined services revenue
8. Maintenance estimated at 72% of combined maintenance and services revenue
9. Maintenance estimated at 80% of combined services revenue
10. Maintenance estimated at 85% of combined services revenue
11. Maintenance estimated at 87% of combined services revenue
12. Maintenance includes 50% of license revenue to account for term licenses
13. Maintenance includes 60% of license revenue to account for term licenses
14. Maintenance for CA assumes 75% of subscription revenue is maintenance (25% the equivalent of license revenue)
15. Company is not current in its filings with the SEC. Numbers based on most recent available data.
16. Maintenance includes 100% of software subscriptions and an estimated 90% of support, training, and consulting is renewable support contracts.
17. Recurring revenue estimated at 66% of services line for maintenance contracts and $12M LTM revenue for renewable ssl license revenue
18. Includes 50% of Technical Services & 100% of Online Services
19. Includes 3% of license revenue which represents estimated renewable software subscriptions
20. Maintenance estimated at 75% of the combined service revenue
21. PTC LTM revenue and LTM maintenance revenue numbers are normalized to account for the CoCreate acquisition.
22. Maintenance estimated at 50% of combined services revenue

Source: Bear, Stearns & Co. Inc.; SEC filings; FactSet Research Systems Inc.; Bloomberg.

 

 

 

 
BEAR, STEARNS & CO. INC. 383 MADISON AVENUE NEW YORK, NY 10179 (212) 272-2000 WWW.BEARSTEARNS.COM  
4