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gnulaw (54.44)

(Pervasive:PVSW) What's Wrong With This Picture?

Recs

3

June 29, 2012 – Comments (17) | RELATED TICKERS: PVSW.DL , SPLK

 
                      2012       2011       2010       2009       2008       2007       2006
Revenue                       48.4M     47.2M     47.2M     42.5M     40.8M     45.6M
Net Income                     2.9M      4.1M       5.3M       3.0M      4.0M       4.8M
R&D                             11.8M     11.8M     10.6M     10.2M      9.8M      10.3M
R&D (%)                        24.4%    25.0%     22.5%    24.0%     24.0%     22.6%       

                      2005       2004       2003       2002       2001       2000       1999
Revenue          48.4M     49.6M     39.2M     37.2M     42.2M     52.1M     58.0M
Net Income       4.0M        7.3M      6.8M      5.4M      (2.5M)    (28.9M)     3.6M
R&D                11.1M      10.0M     8.0M      7.1M      10.5M     13.7M       9.6M
R&D (%)         22.9%      20.2%    20.4%    19.1%     24.9%     26.3%     16.6%

Source: 1999-2011 data:wikinvest  

Note: PVSW will report Q4 Fy 2012 numbers around July 24-31 and possibly provide guidance around July 11-18.


References

1.  (April 29, 2012)  $PLUNK IPO. PVSW - SPLK: In Perspective PVSW - Q3 Ending March 31, 2012 (Including comments 1-19)

2.  (March 23, 2012)  Is Pervasive's (NASDAQ:PVSW) Future / Shareholder Value Hiding in Plain Sight? (Including comments 1-10)

3.  (Jan 28, 2012)  PVSW - Q2 2012 Ending 31 Dec 2011 (Including comments 1-8)

4.  January 12, 2012 (NASDAQ:PVSW) Non-insiders Sustain Shareholder Value Destruction As Insiders Award Themselves $1.6M  (Including comment #1)

5.  October 28, 2011 OPS OCCUPY PERVASIVE SOFTWARE - (NASDAQ:PVSW) Q1 Fiscal 2006 v Q1 Fiscal 2012 (Including comments #1 - #20)

6.  September 02, 2011  (NASDAQ:PVSW) 2011 Sees No Insider Buying But Much Insider Selling, Share Buybacks a Sham? (Including comments #1 - #20)

 

17 Comments – Post Your Own

#1) On July 01, 2012 at 5:11 PM, gnulaw (54.44) wrote:

Issues Of Fact

1. Approximately $150 million spent on R&D 1999 through fiscal 2012 ending June 30 2012.

2. Revenues decreased.

3. No insider buying of shares on the open market...ever. This is arguably the single-most important and disturbing fact/shareholder value indicator. It says key insiders including Sr officers and each member* Board of Directors believes the shares have always been overvalued. Another key question here is: Is PVSW buying back these shares when divested by insiders e.g. the CTO pursuant to their share repurchase program?  (See above references 1-6).

4. There is no incentive to perform given share option issuances/awards not based on performance and issued annually (and divested consistently/annually as the Company shows no growth and declining earnings).

5. This is all symptomatic of an entrenched, and allegedly complicit, malfeasant. and negligent (at a minimum) Board and CEO, none of whom wish to disrupt their insider ATM, all at the expense of all non-insider shareholders, specifically, and maximization of shareholder value itself, generally.

* Executive Team and Board of Directors

 

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#2) On July 01, 2012 at 6:33 PM, gnulaw (54.44) wrote:

The above said (main post, all references, all comments)  SPLK commanded a $3B market cap with its recent IPO (unprofitable on appx $120M in FY 2011 revenues with losses of $11M).  Given this fact and this recent ZDNet Webcast on Big Data where the Pervasive CTO states "...I think we're in a highly disruptive phase right now in data management. I think Big Data is the biggest thing to come down the pike in ages. I think it's a discontinuous leap..."  So, why isn't MSFT, GOOG, SPLK, Cloudera (post IPO), et al acquiring PVSW? [and accordingly]  is PVSW positioning itself for a bidding war to be acquired in what is unanimously perceived as the most disruptive phase in IT in decades...given PVSWs lead in this space (and $150M in R&D)?

Timing/multiples) is/are everything(.)

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#3) On July 05, 2012 at 9:32 PM, gnulaw (54.44) wrote:



Attunity (ATTUF:OTC BB)[1] CEO, culture, mindset, at least, appear to be everything John Farr and PVSW [2] do not possess.* (See References and Cautionary Notes).

 

Attunity [3] arguably accomplished in 18 months what John Farr failed to do in most key areas since 1999. It's all about vision, technology, passion, company culture, maximizing shareholder value. Attunity accordingly seems to be hitting on all [those] cylinders...

Revenues (ttm): $18.28M **

Qrtly Rev Growth (yoy): 105.6% **

Leveraged Free Cash Flow (ttm): $6.02M **

** source: finance.yahoo .com/q/ks?s=ATTUF+Key+Statistics

 

 

* Cautionary Notes:

Attunity is still not fully listed NASDAQ. This is pending.[4] Also, the author of this recommendation per the below citations also recommended Atrinsic (ATRN) on July 24, 2011. And updated again August 21, 2011 [5] and again in his April 19, 2011 update cited below. However, what he failed to update is that ATRN is currently trading at $0.01.[6]

 

 

 

References:

[1] Attunity   Link:  finance.yahoo .com/echarts?s=ATTUF+Interactive#symbol=attuf;range=1y;compare=;indicator=volume;charttype=area;crosshair=on;ohlcvalues=0;logscale=off;source=undefined;

[2] PVSW    Link: caps.fool .com/Ticker/PVSW.aspx

[3] Attunity   Link: attunity .com/company

[4] Pending listing   Link: attunity .com/news/attunity-files-application-relisting-nasdaq-capital-market-and-announces-special-meeting

[5] (August 21, 2011) seekingalpha .com/article/288731-a-review-of-stocks-that-are-poised-to-triple

[6] ATRN current price   Link: finance.yahoo .com/q?s=atrnq&ql=1

[7] (July 4, 2012) Portfolio Reflections: 4 Stocks That Stand Out Link: seekingalpha .com/article/701121-portfolio-reflections-4-stocks-that-stand-out

[8] (June 20, 2012) Attunity Replicate Named Winner in the Best of TechEd 2012 Awards by Penton Media’s SQL Server Pro Magazine   Link: www.attunity .com/news/attunity-replicate-named-winner-best-teched-2012-awards-penton-media%E2%80%99s-sql-server-pro-magazine

[9] (June 13, 2012) Attunity Earns Top Distinction as ‘Innovator’ in New Managed File Transfer Vendor Landscape Report   Link: attunity .com/news/attunity-earns-top-distinction-%E2%80%98innovator%E2%80%99-new-managed-file-transfer-vendor-landscape-report

[10] (April 29, 2012) Attunity (ATTUF): Enhancing Data Management Link: seekingalpha .com/instablog/1064236-scott-ende/563731-attunity-attuf-enhancing-data-management

[11] (April 27, 2012) Splunk Explodes On Big Data Demand -- Who's Next? Link: seekingalpha .com/article/537721-splunk-explodes-on-big-data-demand-who-s-next

[12] (April 27, 2012) Attunity: A Big Quarter For Big Data Link: seekingalpha .com/article/536151-attunity-a-big-quarter-for-big-data

[13] (April 19, 2012) Seeking Triples: Early April Diary - Part II Link: seekingalpha .com/article/511021-seeking-triples-early-april-diary-part-ii

[14] (Feb 06, 2012) Software Earnings: Attunity Reports 100% Growth; Broadvision Looms Link: seekingalpha .com/instablog/84364-mark-gomes/257170-software-earnings-attunity-reports-100-growth-broadvision-looms

[15] (Feb 01, 2012) These Stocks Are Poised To Triple In 2012 Link: seekingalpha. com/article/332522-these-stocks-are-poised-to-triple-in-2012

[16] (Jan 25, 2012) Attunity (ATTUF) Reports Q4, FY2011 Results Link: seekingalpha. com/instablog/200555-qualitystocks/256999-attunity-attuf-reports-q4-fy2011-results

Note: Above link references need to be adjusted as there is a space preceeding .com.

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#4) On July 05, 2012 at 9:44 PM, gnulaw (54.44) wrote:

CORRECTION (previous comment, #3)

>>* Cautionary Notes:

Attunity is still not fully listed NASDAQ. This is pending.[4] Also, the author of this recommendation per the below citations also recommended Atrinsic (ATRN) on July 24, 2011. And updated again August 21, 2011 [5] and again in his April 19, 201[2] update cited below. However, what he failed to update is that ATRN is currently trading at $0.01.[6]

April 19, 2012 not 2011.

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#5) On July 06, 2012 at 2:26 PM, gnulaw (54.44) wrote:

>>Note: PVSW will report Q4 Fy 2012 numbers around July 24-31 and possibly provide guidance around July 11-18.

PVSW "...will announce its fiscal year 2012 fourth-quarter ending June 30 results after the close of market on Tuesday, July 24, 2012..." Source: Pervasive 11:48AM EDT July 6, 2012.

 

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#6) On July 08, 2012 at 5:33 PM, gnulaw (54.44) wrote:

So, the Fifth Annual Hadoop Summit [1] was held June 13-14.

On June 13th PVSW announced [2] their Hadoop Edition Data Integrator. 

On June 12th [3] HortonWorks, a Pervasive Big Data Partner [4]  issued this press release "Hortonworks Data Platform Generates Excitement Among Partner Community"

The following is excerpted from said release (link provided above):

"...Hortonworks partners including Attunity, Dataguise, Datameer, Karmasphere, Kognitio, MarkLogic, Microsoft, NetApp, StackIQ, Syncsort, Talend, 10gen, Teradata and VMware have expressed their support and excitement for the release of HDP 1.0, and here is what some of them have to say:

'Attunity’s data integration solutions enable enterprises to leverage their big data for making smarter business decisions,” said Itamar Ankorion, VP, business development and corporate strategy at Attunity. “As the Hortonworks Data Platform makes it easier to use and consume Apache Hadoop, Hortonworks is an ideal partner for Attunity as we focus on making big data easier to load and readily available for analytics.'..."

Three interesting facts stand out here...

1.  Pervasive is conspicuously absent from this list.

2.  (Attunity:ATTUF) [is] mentioned as a Hadoop/Big Data player and

3.  Attunity did not co-release this news ie it is not listed on their news site [5]. One would think they would given their OTC BB status/NASDAQ listing --> establishing/reinforcing credibility, association as a Big Data player, brand equity, shareholder value, ad infinitum...

What's the significance of these points [1:28/3:15] [6]?

 

References

 

[1].  hadoopsummit .org/

[2].  pervasive .com/News/PressReleaseArchive/EntryId/1049/Pervasive-Software-Launches-Pervasive-Data-Integrator-Hadoop-Edition-to-Unite-Little-Data-with-Big-Data.aspx

[3].  hortonworks .com/about-us/news/hortonworks-data-platform-generates-excitement-among-partner-community

[4].  bigdata.pervasive .com/Partners/Partner-List.aspx

[5].  attunity .com/news

[6].  youtube .com/watch?v=XjSVRsoBYNY

Note: above links need to be adjusted. There is a space immediately before ".com"

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#7) On July 08, 2012 at 5:33 PM, gnulaw (54.44) wrote:

So, the Fifth Annual Hadoop Summit [1] was held June 13-14.

On June 13th PVSW announced [2] their Hadoop Edition Data Integrator. 

On June 12th [3] HortonWorks, a Pervasive Big Data Partner [4]  issued this press release "Hortonworks Data Platform Generates Excitement Among Partner Community"

The following is excerpted from said release (link provided above):

"...Hortonworks partners including Attunity, Dataguise, Datameer, Karmasphere, Kognitio, MarkLogic, Microsoft, NetApp, StackIQ, Syncsort, Talend, 10gen, Teradata and VMware have expressed their support and excitement for the release of HDP 1.0, and here is what some of them have to say:

'Attunity’s data integration solutions enable enterprises to leverage their big data for making smarter business decisions,” said Itamar Ankorion, VP, business development and corporate strategy at Attunity. “As the Hortonworks Data Platform makes it easier to use and consume Apache Hadoop, Hortonworks is an ideal partner for Attunity as we focus on making big data easier to load and readily available for analytics.'..."

Three interesting facts stand out here...

1.  Pervasive is conspicuously absent from this list.

2.  (Attunity:ATTUF) [is] mentioned as a Hadoop/Big Data player and

3.  Attunity did not co-release this news ie it is not listed on their news site [5]. One would think they would given their OTC BB status/NASDAQ listing --> establishing/reinforcing credibility, association as a Big Data player, brand equity, shareholder value, ad infinitum...

What's the significance of these points [1:28/3:15] [6]?

 

References

 

[1].  hadoopsummit .org/

[2].  pervasive .com/News/PressReleaseArchive/EntryId/1049/Pervasive-Software-Launches-Pervasive-Data-Integrator-Hadoop-Edition-to-Unite-Little-Data-with-Big-Data.aspx

[3].  hortonworks .com/about-us/news/hortonworks-data-platform-generates-excitement-among-partner-community

[4].  bigdata.pervasive .com/Partners/Partner-List.aspx

[5].  attunity .com/news

[6].  youtube .com/watch?v=XjSVRsoBYNY

Note: above links need to be adjusted. There is a space immediately before ".com"

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#8) On July 13, 2012 at 7:07 PM, gnulaw (54.44) wrote:

>>Note: PVSW will report Q4 Fy 2012 numbers around July 24-31 and possibly provide guidance around July 11-18.

PVSW "...will announce its fiscal year 2012 fourth-quarter ending June 30 results after the close of market on Tuesday, July 24, 2012..." Source: Pervasive 11:48AM EDT July 6, 2012. (comment #5 above)

Note: Given PVSW announced they will be releasing q4 numbers July 24 they [should] have announced updated guidance today in juxtapostion with last year on July 13th. One thing that can be said about John Farr is that he is very consistent. If not on Monday that would be significant.

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#9) On July 13, 2012 at 7:19 PM, gnulaw (54.44) wrote:

[CORRECTION]

>>Note: Given PVSW announced they will be releasing q4 numbers July 24 they [should] have announced updated guidance [July 11] in juxtapostion with last year on July 13th (earnings released July 26). One thing that can be said about John Farr is that he is very consistent. This [is] significant.

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#10) On July 17, 2012 at 8:32 AM, gnulaw (54.44) wrote:

CORRECTION
3. Attunity did not co-release this news ie it is not listed on their news site [5]. One would think they would given their OTC BB status/NASDAQ listing establishing/reinforcing credibility, association as a Big Data player, brand equity, shareholder value, ad infinitum...(comment #6 above)
Attunity did not co-release during the Hadoop Summit (June 13-14). They did joint-release with Hortonworks a week earlier, March 5.

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#11) On July 22, 2012 at 11:03 AM, gnulaw (54.44) wrote:

Some observations (Pervasive PVSW v Attunity ATTUD)

1.   PVSW CAPS RATING has recently gone from five stars to three stars [1]

2.   Attunity (ATTUD) , also in the integration space, appears to be smoking Pervasive, esp. in the past 18 months. ATTUD reports Q2 numbers ending June 30 Wednesday.

3. ATTUD has two substantive OEM Agreements multiple OEM partners [2] One with IBM and one with Microsoft. PVSW has not reported one OEM agreement generating revenues. What happened to Pervasive's Big Data alliance with Intel [3] (Aug 17, 2010)?  PVSW should have been all over this with a top gun in-house OEM Marketing swat team aggressively closing deals viz-a-viz visicalc:apple ][ [4] RushAnalyzer:intel (all tech Apple iPhone, iPad, Dell, Samsung, Lenovo, Android...).

4. Pervasive Galaxy [5]. A trainwreck/Clusterf***? Again, no marketing.Download numbers have not changed in months and months...many 0.

5. How did John Farr [also] [miss] the Repliweb acquisition [6] Attunity brilliantly executed on? 

Pervasive again is updating their website in the pst 48 hours... reorganizing the deck chairs on the Titanic?

Pervasive reports Q4/FY 2012 Tuesday July 24.


[1]   caps.fool. com/Ticker/PVSW.aspx

[2]   attunity. com/customers-partners/partners/oem-partners

[3]   hpcinthecloud. com/hpccloud/2010-08-17/intel_pervasive_deliver_transformative_performance_on_a_single_server_for_big_data_problems.html

[4]   lowendmac. com/orchard/06/visicalc-origin-bricklin.html

[5]   pervasive. com/galaxy

[6]   prnewswire. com/news-releases/attunity-acquires-repliweb-to-offer-extensive-data-and-content-replication-platform-for-cloud-and-enterprise-data-centers-129369533.html

Note: above links need to be adjusted. There is a space immediately before "com"

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#12) On July 23, 2012 at 6:48 PM, gnulaw (54.44) wrote:

We fill in the blanks tomorrow folks                  

                      2012       2011       2010       2009       2008       2007       2006
Revenue                       48.4M     47.2M     47.2M     42.5M     40.8M     45.6M
Net Income                     2.9M      4.1M       5.3M       3.0M      4.0M       4.8M
R&D                             11.8M     11.8M     10.6M     10.2M      9.8M      10.3M
R&D (%)                        24.4%    25.0%     22.5%    24.0%     24.0%     22.6%       

                      2005       2004       2003       2002       2001       2000       1999
Revenue          48.4M     49.6M     39.2M     37.2M     42.2M     52.1M     58.0M
Net Income       4.0M        7.3M      6.8M      5.4M      (2.5M)    (28.9M)     3.6M
R&D                11.1M      10.0M     8.0M      7.1M      10.5M     13.7M       9.6M
R&D (%)         22.9%      20.2%    20.4%    19.1%     24.9%     26.3%     16.6%

Source: 1999-2011 data:wikinvest  

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#13) On July 24, 2012 at 7:54 AM, gnulaw (54.44) wrote:

See $PLUNK IPO. PVSW - SPLK: In Perspective PVSW - Q3 Ending March 31, 2012

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#14) On July 24, 2012 at 5:13 PM, gnulaw (54.44) wrote:

Q4/FY 2012 numbers in... Q4 2012 revenues down 6.6% v Q4 2011 and slightly below 2004 Revenues, Net Income down 41.4% YoY, Revenue up 1.7% YoY.  Further breakdown to follow...     

 

                      2012        2011       2010       2009       2008       2007       2006
Revenue         49.2M      48.4M     47.2M     47.2M     42.5M     40.8M     45.6M
Net Income      1.7M        2.9M       4.1M       5.3M       3.0M      4.0M       4.8M
R&D              12.7M       11.8M     11.8M     10.6M     10.2M      9.8M      10.3M
R&D (%)        25.8%       24.4%     25.0%     22.5%    24.0%     24.0%     22.6%       

                      2005       2004       2003       2002       2001       2000       1999
Revenue         48.4M     49.6M     39.2M     37.2M     42.2M     52.1M     58.0M
Net Income      4.0M        7.3M      6.8M      5.4M      (2.5M)    (28.9M)     3.6M
R&D              11.1M      10.0M      8.0M      7.1M      10.5M     13.7M       9.6M
R&D (%)        22.9%      20.2%    20.4%    19.1%     24.9%     26.3%     16.6%

Source: 1999-2011 data:wikinvest and Pervasive.

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#15) On July 27, 2012 at 6:44 PM, gnulaw (54.44) wrote:

Some initial talking points regarding John Farr's PVSWs FY12 conference call [i].

1. "...With $49 million in annual revenue we achieved our best annual revenue result in the last eight years..." -John Farr, July 24, 2012

Comment: (Refer to comment #13 1999 - 2012 chart). Year 1 (2005) of "eight years" John Farr is referring to, Pervasive generated $48.4M in revenue. That comes out to .23% annual increase over those eight years to finally reach $49.2M for Fiscal 2012.

John Farr should have been removed for cause immediately after the conference call.

2. Why did John Farr not mention revenue growth over nine years?

Because nine years ago Pervasive generated $49.6M in revenues.

3. John Farr arguably is a good COO or CFO but as CEO has and continues to fail to create shareholder value and superior competitive advantages hence said 1999 - 2012 results. Listening to Tuesday's conference call one disturbingly and immedaitely knows why.

4. Said failure to create shareholder value over a decade(s) is symptomatic of an entrenched Senior management and Board of Directors who are in a disturbing bear hug. Directors have been on the Board since the 1990's [ii]. This is an outrageous Corporate Governance fail but again confirms an alleged fraud perpetrated by an out of control Board interested solely in maximizing [insider] shareholder value viz-a-viz annual option awards (over decades) not based on performance [iii], and consistent insider SELLS and no insider BUYing on the open market [iv]. 

5. It is obvious Pervasive should have alreaady replaced John Farr given said numbers over the last [decade]. These consistent actions and patterns speak volumes of [alleged] criminal gross negligence and fraud. I maintain some of PVSWs management are unemployable. But because of said  Board and Management bear hug this hasn't changed. No one wants to lose the Insider ATM.

Let me again put said points in perspective and provide blunt-force Issues of Fact: In one year, Attunity (NASDAQ:ATTU)  [v] has accomplished what has still eluded this Management and Board of Directors.

We will accordingly continue to pursue this situation with all legal recourse including, but not limited to, working with the SEC [vi] , and largest shareholders [vii]

 

Footnotes 

[i]  seekingalpha. com/article/745641-pervasive-software-s-ceo-discusses-f4q-2012-results-earnings-call-transcript

[ii]  pervasive. com/Company/BoardofDirectors.aspx

[iii]  caps.fool. com/Blogs/nasdaqpvsw-non-insiders/690676

[iv]  caps.fool. com/Blogs/nasdaqpvsw-2011-sees-no/637589

[v]  Comment #3 above ref/ Attunity.

[vi]  caps.fool. com/Blogs/plunk-ipo-pvsw-splk-in/730708 (comments 11, 12, 13, 15, 16, 19)

[vii]  nasdaq. com/symbol/pvsw/institutional-holdings

Note: above links need to be adjusted. There is a space immediately before "com"

 

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#16) On July 27, 2012 at 6:57 PM, gnulaw (54.44) wrote:

CORRECTION (Comment #15)

 >>Comment: (Refer to comment [#14] 1999 - 2012 chart).

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#17) On July 27, 2012 at 7:44 PM, gnulaw (54.44) wrote:

Addendum to Comment #15.

Pervasive Analyst B Riley Downgraded (comment #20) Pervasive July 23rd, the day before the FY2012 conference call. Also, review Kevin Liu – B. Riley & Co. questions during the Q&A. John Farr could not answer one of his questions. I would not doubt not only did he formally downgrade from BUY to NEUTRAL but if B Rileys clients are now out of any PVSW position.

qed.

 

Disclosure: Long PVSW, ATTU

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