IPO Watch: Model N (MODN) Shares Pop 30% by TechStockProspector


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									Robert DeFrancesco’s
March 20, 2013

IPO Watch: Model N (MODN) Shares Pop 30%
NOW AVAILABLE: The March 2013 issue of Tech-Stock Prospector for your
Amazon Kindle or Kindle for iPad/iPhone reading app.

Here are some of the topics covered in the March 2013 issue:

*The tech sector’s earnings season winners
*Workday takes on legacy software vendors
*Imperva & Guidewire Software raise guidance
*Infoblox broadens its portfolio into security
*Electronic Arts on the rebound
*International expansion propels Sourcefire
*Qlik Technologies recovers thanks to larger deals
*Is BroadSoft now a networking rebound play?
*Acquisitions are paying off for ValueClick
*Aruba Networks sees accelerated growth
*Salesforce battles Oracle in the marketing cloud
*Why some smart investors like Splunk now
*Proofpoint moves security to the cloud
*Various growth drivers in place at Google
*Harmonic attracts an activist investor
*Deal Report: JDS Uniphase buys Arieso

Order the March 2013 issue here: http://www.amzn.com/B004T6Z0ME


Shares of Model N (MODN, $20.15), a provider of revenue management software
targeted at the tech & life sciences industries, performed well on their first trading
day. The IPO was priced at $15.50 a share (above the expected range of $12.50 to
$14.50), opened for trading at $20.40 and closed with a gain of 30%.

Customers use Model N solutions to maximize revenue and reduce revenue
compliance risk by transforming their revenue lifecycles; this is accomplished by
properly managing pricing, contracting, incentives and rebates. Model N’s
application suites are built on a Web-based platform that can be deployed both on-
premise or in the cloud.
Model N’s Revenue Management Enterprise suite (85% of the company’s revenue)
automates the execution of revenue management processes—such as pricing,
contracting and rebate management. The Revenue Management Intelligence suite
provides analytical insights to define and optimize revenue management strategies.

Model N primarily targets large and mid-size organizations worldwide. Customers
include Abbott Labs, Amgen, Boston Scientific, Johnson & Johnson and Merck. On the
tech side, Dell, Nokia, STMicroelectronics and VMware are customers.

Model N faces competition from spreadsheet-assisted manual processes, internally
developed solutions, large integrated systems vendors (SAP and Oracle) and smaller
companies with point solutions.

Here is Model N’s revenue breakdown by year (FY ended Sept):
2012: $84.2 million +29%
2011: $65.2 million +29%
2010: $50.4 million

For the quarter ended December 31, revenue rose 23.7% to $22.3 million.

The IPO raised $104.5 million. There are 21.43 million shares outstanding after the
offering, giving the company a current market cap of $432 million.


Read the latest issue of Tech-Stock Prospector on your Amazon Kindle or Kindle for
iPad/iPhone reading app.

Here’s the Kindle link: http://www.amzn.com/B004T6Z0ME


Tech-Stock Prospector Managing Editor Rob DeFrancesco has more than 20
years of experience covering the tech sector. He is a former senior writer with
Louis Rukeyser’s Wall Street.

TechStockProspector.com, launched in 2003, is an investment-research service
focused primarily on the networking, storage, security, wireless and software
sectors. Annual subscription: $350.

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