ENG 0.00% 89.0¢ engin limited

summer of 2010 : us voip valuations rebounding

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    lightbulb Created with Sketch. 17
    Just found a link to the 8x8 Investor Presentation:

    Extract from http://investors.8x8.com/events.cfm

    Summer of 2010 : VoIP Valuations Rebounding

    June 16, 2010 : Broadsoft (Nasdaq: BSFT) goes public at an enterprise
    value (approximately $200 million) or approximately 2.9x 2009 revenue
    ($69 million)

    July 16, 2010 : YMAX/magicJack (Nasdaq: CALL) consummates reverse
    merger into VocalTec. At $30 per share, the enterprise value
    (approximately $325 million) is 2.6x 2009 revenue ($124 million)

    August 9, 2010 : Skype files S-1 ? assuming valuation equates price paid
    to eBay in 2009 Skype will trade at an enterprise value of approximately 5x
    2009 revenue

    8x8 only used revenue valuation metrics for the three companies listed
    above because none of these companies generated net income in 2009.

    These valuation metric are huge! SEVEN is currently offering something like 0.43x for ENGIN's 2010 revenue of $21m.

    If we used something like 2.5x 2010 revenue for ENGIN (ENG) then we should be considering an offer more like $4.03 per share, not $0.70 (based on 13m shares on issue)!!

    Bastards!
 
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