Software International, Inc. (SWII) Founded in 1997 is a provider of custom information technology (IT) design, development, integration and maintenance services primarily for Fortune 1000 and mid-market companies located in the United States. SWII’s software products are Case Management, Equity Trading, RFID (Middleware), Customer Value Management, and a SiiOX (Sarbanes-Oxley compliance solution. SWII’s services are Consulting (Strategic & Management consulting, and Technology consulting), Technology Services (Delivery through: Onsite, Offsite, Offshore), and Business Process Outsourcing (Analytics, Equity Research).
Share Price Drives: SWII represents an attractive investment opportunity with the following share price drivers:
· M&A activity will put FY05 consolidated revenues at $80M with a consolidated net of $8.6M; we expect the company to continue M&A activity without any deleterious effect on shareholder equity.
· Diversified revenue streams from products and services.
· Growing Market – The products and services that SWII provide serve an ever-expanding market place, which should lead to increased sales and improved margins.
· Clients - Fleetwood, Avaya, Merrill Lynch, ABN Amro, Bessemer Trust, Microsoft, Lucent, Business Objects, Informatica, the Alliance for SOX 404 Compliance.
· Management and advisors with knowledge about the Software and IT business, but also of financial markets.
· OTC BB listing 1Q06
· Acquisitions - will enable SWII to increase it cash flow and profitability through expanded customer base, low risk revenue, stronger competitive positioning and broader market footprint.
Investor Economics: Significant stock appreciation is possible for SWII investors with stock prices to be in the $1.75 - $3.00 range, if the company hits the projections below.
FY 2006 Pro Forma (millions)
Consolidated Revenues $80
Consolidated Earnings $ 8.60
EPS 38M Shares $0.20
Stock Price P/E 20* $4.00
*note: Current industry average P/E = 40
Competitive advantage: SWII has developed a business model that gives the Company a competitive advantage over many suppliers of products and services in the marketplace, a number of whom are quite large and have substantial resources. SWII differentiates itself in the following ways:
· Privileged relationships: SWII’s management will leverage their very high level privileged relationships, gaining access to new markets and the ability to up sell and cross sell new products and services.
· Development: Management will continue M&A activity, only if the acquisitions can be accretive to the bottom line and give SWII access to new clients.
· IT Diversity: Skilled on/offshore resources allow flexibility in meeting customer requirements.
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