Ferris Research Free News
Wednesday, May 06, 2009
  May 6, Daily Compliance & Messaging News
Ferris Research Home

Sign up for the Ferris News Service here

News on messaging, collaboration, and compliance: email, archiving, e-discovery, information leak prevention, unified communications, instant messaging, SharePoint, mobile communications, and more...
Daily Digest: May 6, 2009

CaseCentral Introduces First eDiscovery Business Continuity Planning Protocol
Builds on its industry-first eDiscovery disaster recovery protocol; Minimizes client risk by ensuring that core business processes and service to clients are maintained
Comment on CaseCentral here

Survey of Spam Control Products, and Survey of Archiving Products -- See what others think of these products/services. If you add your own data, we will send you a summary of the findings.

Sherpa Software Unveils Automated Data Movement to Ease E-Discovery for Microsoft Exchange Users
Sherpa Software Releases Mail Attender for Exchange Version 4.5
Comment on Sherpa Software here

Jatheon Announces Next-Generation Email Archiving Solutions
The new Plug N Comply email archiving appliances provide simplified archiving and management yet the ultimate in regulatory compliance and e-discovery requirements for SMB, Enterprise, Education, Government
Inference Data Launches Inference Metrics Portal with Industry-Leading Suite of eDiscovery Reporting & Monitoring Tools  
BakBone Software Announces Acquisition of Assets from Asempra Technologies, Inc.
Extends BakBone's Real-Time Data Protection Capabilities, Provides Customers with Cost-Effective Solutions for Enhancing Existing Windows Applications
Safecore Completes Acquisition of InBoxer
Safecore Now Delivers Full Range Of Archiving, Compliance and Discovery Capabilities For Hosted (SAAS) and On-Premises Markets
Messaging & Collaboration

TELE2 Russia Selects Comverse Solutions to Optimize Messaging and Browsing Experience for Mobile Users  

Funambol Launches First SaaS Mobile Cloud Sync and Push Email Solution
Hosted service powered by open source lets mobile operators, device makers, portals and ISPs 'just add water' to provide mobile cloud services for billions of wireless phones

Cemaphore Provides Complete Email Cloud Solution with Microsoft
Powerful Combination of Microsoft Business Productivity Online Suite and Cemaphore MailShadow with Email Migration and Synchronization for Any Business
Neverfail Extends BlackBerry Enterprise Server Solution to Include Novell GroupWise
Award-Winning Software Provider Announces Extended Messaging System Protection and Demonstrates End-to-End Mobile Messaging Protection
Gist Secures $6.75 Million Series A Investment Round Led by Foundry Group
Funding accelerates growth as the company extends the inbox to deliver new business insights
Blog Item(s)

Unify Buys AXS-One for $8M

On April 16, 2009, application solutions vendor Unify announced it would acquire records management and archiving company AXS-One in an all-stock deal.

Products, Facilities, and Competitors:

  • Unify offers software tools and services that modernize old database applications, support modern applications, and migrate from Notes to Exchange.
  • AXS-One has an email-and-other-content archiving/records management/e-discovery product. The company has had its greatest success among large Notes users.

Recent Trading Performance:

  • Unify is in a healthy financial state:
    • Has $5M in cash.
    • Roughly $20M/year in revenues, with respectable profitability. Revenues for the nine months to January 31, 2009, were up by 9% to $16M. Net income was $2.2M, up from $1.6M in the prior year.
    • However, in the quarter to January 31, revenues were down 11% quarter over quarter on 2008 at $5.2M, while net income remained constant at $1.1M.
  • AXS-One has roughly $13M/year in revenues, with a long history of substantial losses:
    • AXS-One revenues for the year ended December 31, 2008, were up by 12%, to $13.4M; a net loss of $10.1M was incurred, a reduction from a net loss of $14.9M in 2007.
    • However, in the quarter to December 31, revenues were down 24% on 2007, at $2.5M, as a result of license income falling by 85%. Nevertheless, the operating loss in Q4 2008 reduced to $2.4M from $3.5M in 2007.

Transaction Detail:

  • Unify will acquire AXS-One in an all-stock deal valued at $8M; or a price/trailing 12-month revenue ratio of about 0.6.
  • Common stockholders in AXS-One will receive Unify stock worth around 6 cents per AXS-One share, which is the current AXS-One stock price.
  • Holders of $13M of convertible debt will get stock worth around 42 cents on the dollar. There is also an earn-out that may enable the debt holders to recoup their investment based on the performance of AXS-One license revenues over the next year, and with Unify stock appreciation.
  • Unify says current Unify stockholders will own around 73% of the combined company and existing AXS-One stockholders 27%.

Reasons for the Deal:

  • To finance trading losses, AXS-One has had equity and convertible debt funding of over $100M, including $13M of new funds in mid-2007 to early 2009.
  • The restructuring of its business in 2007, with $8.5M convertible debt raised, did not bring the success in 2008 that AXS-One was hoping for, and ongoing losses had to be funded by additional convertible debt of over $4M in 2008.
  • The general economic situation impacted heavily on AXS-One’s trading performance in the final quarter of 2008, and the company needed a further injection of funds early in 2009.
  • AXS-One's stock price has fallen by nearly 90% since June 2008.
  • Generally, AXS-One's technology assists in email migrations from Notes to Exchange, which is an important element of Unify's business.
  • Unify has taken advantage of AXS-One’s extremely fragile financial position to acquire the company for a very good price and without any cash outlay.

Ferris Research Comments:

  • Given the competition that Unify faces in the marketplace, its present cash resources of $5M will not enable it to make the impact it needs to become a leading archiving player.
  • AXS-One has attractive and highly scalable archiving technology. However, its shaky finances have greatly discouraged prospective customers from engaging with the firm. The merger helps to allay such fears.
  • AXS-One has major customers in the U.S. military-industrial complex. Our sources indicate that the value of AXS-One technology to these customers is such that they would not allow it to disappear. In our view, it is likely that these customers have been a major driver for this acquisition by Unify.
  • It's worth looking at the recent Ferris Research gossip on AXS-One.
  • It's imperative that AXS-One's ongoing and substantial losses be stemmed. Unless this takes place, Unify's healthy financials are likely to be very adversely affected.

... Mike Stackpoole


Latest Buzz ... Email Archive Migration: Plan for Stubbing

We hear that Kazeon is in acquisition talks with Symantec. Any further information is welcome--please contact David Ferris at david.ferris@ferris.com or +1 415 367 3436.

Below are various active gossip threads on current events in the industry. To contribute information, follow the appropriate link or see our Gossip page for other vendor threads.

Recent Research

Recent Reports Available:

For more reports, visit our reports page.

Recent Ferris Webcasts:

About Ferris Research

Messaging. Collaboration. Compliance. Ferris Research analysts bring more experience in these areas than any other firm. Period.

Major areas of interest are email, archiving, e-discovery, information leak prevention, unified communications, instant messaging, SharePoint, and mobile communications. We help:

  • IT staff evaluate, implement, and maintain these technologies
  • Vendors understand the marketplace and its technologies; explain their products or services to the marketplace; and find strategic partners, raise funds, or sell their company
  • Investors find and evaluate investment opportunities

We've been in business since 1990-longer than any other analyst firm in our field:

  • Clients include many of the world's largest organizations as well as computer vendors from major corporations to small startups.
  • We have published more than 200 formal reports and 1,100 short bulletins.
  • Our news service has approximately 10,000 readers and covers more than 2,000 highly specialized announcements annually.
  • Our research team shares many decades of experience in our core competencies.

In short, our technology and industry depth helps you understand today's products, where they've come from, where they're going, and their value.

Have news you want to share with us or product or interest area that you would like us to cover? Send press releases to releases@ferris.com.

Copyright © Ferris Research 2008.


Links to this post:

Create a Link

<< Home
Lets anyone with a professional interest in messaging and collaboration keep up with the news and key trends ... To sign up, go to www.ferris.com ... If you want a version that includes analysis of the news and puts everything in a single email, subscribe to our Analyzer Information Service ... Got some news you want to share with us? Send press releases and conference announcements relevant to messaging to releases@ferris.com ... Copyright © Ferris Research 2005-2006.

September 2005 / October 2005 / November 2005 / December 2005 / January 2006 / February 2006 / March 2006 / April 2006 / May 2006 / June 2006 / July 2006 / August 2006 / September 2006 / October 2006 / November 2006 / December 2006 / January 2007 / February 2007 / March 2007 / April 2007 / May 2007 / June 2007 / July 2007 / August 2007 / September 2007 / October 2007 / November 2007 / December 2007 / January 2008 / February 2008 / March 2008 / April 2008 / May 2008 / June 2008 / July 2008 / August 2008 / September 2008 / October 2008 / November 2008 / December 2008 / January 2009 / February 2009 / March 2009 / April 2009 / May 2009 / June 2009 / July 2009 / August 2009 / September 2009 / October 2009 / November 2009 / December 2009 / January 2010 / February 2010 / March 2010 / April 2010 / March 2011 / March 2012 /

Powered by Blogger