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

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April 29, 2012 – Comments (23) | RELATED TICKERS: INTU , PVSW , SPLK

 

PVSW Conference Call/Q3 Highlights

 

(Apr 24, 2012) Pervasive Software Reports Results for Its Third Quarter of Fiscal Year 2012

(Apr 24, 2012) Seeking Alpha - Pervasive Software's CEO Discusses F3Q12 Results - Earnings Call Transcript

 

See Table I below re: distribution of PVSW divisional income sources. dB growth not good. A dead end as in zero long-term competitive advantages, however, [currently] a cash cow providing PVSWs 25% quarterly R&D investmens in innovation incl. Big Data. 

 

                          Q1 2012          Q2 2012    Q3 2012


Database                 60%               53%         58%

Integration                35%               43%          38%

BX, BD*                     5%               4%             4%

*Business Xchange, Big Data Divisions

Table I.

 

"...Intuit recently deployed a tighter integration service for QuickBooks and Salesforce CRM with Pervasive DataCloud platform and Pervasive DataSynch technology at its core. Our Intuit Salesforce and DataCloud implementation continues to mature as we work closely with both Intuit and Salesforce. Now the cloud update for this call, you can now begin to see marketing activities appearing on Intuit's website for Intuit’s privately branded Salesforce for QuickBooks application..."- John Farr, Apr 24 Conference Call

PVSWs alliance with (NASDAQ:INTU) strengthens (also see video) viz-a-viz (NASDAQ:CRM) SalesForce integration with (NASDAQ:INTU) Quickbooks. 

"...And lastly, I’m happy to say that the Big Data team recently closed a multi-year partnership with one of the world’s leading Big Data predictive analytics companies providing both commercial and custom analytics solutions for large enterprise. Now more on this new relationship in the future, we will make further announcements following initial deployments as our Pervasive Big Data products and solutions by our newest partner..." -  (Source: John Farr, Apr 24 Conference Call).

 

Recent IPO and M&A in PVSWs Space

(Apr 27, 2012) Intuit to Acquire Demandforce for $423.5 Million

"...Demandforce generated sales of $37.5 million last year, Patrick Barry, the company’s chief marketing officer, said today in an e-mail..." Note: PVSW market Cap was $98.7M as of Fri Apr 27 close.

(Apr 25, 2012)  IBM Acquires Enterprise Search Software Company Vivisimo To Boost Big Data Analytics

(April 20, 2012) Big-data investors look for the next Splunk

"...Splunk Inc's impressive debut on Nasdaq Thursday, where it doubled its $17 initial public offering price, has investors suddenly paying attention to a sector that has grown in relative obscurity: big data..."*[1.]

(Apr 19, 2012) PVSW: In Perspective Big Data IPO (NASDAQ:SPLK)

Splunk IPO'd with a $3 Billion market cap (unprofitable on appx $120M in FY 2011 revenues with losses of $11M...PVSW ignominiously closed the same day also making Headline news as one of the leading Nasdaq stocks posting largest volume decreases...(NASDAQ:PVSW) closed with a market cap around $95 milllion and is at a $50M annual revenue run rate, profitable, patented BigData technology *[1.]

Note: PVSW is scheduled to present at the B. Riley Investor Conference in Santa Monica, on May 22; the Benchmark Company Investor Conference in Milwaukee on May 23; and the Three Part Advisors Investor Conference in Boston on June 5. (Source: John Farr, Apr 24 Conference Call).

 

The Elephant In The Room

Is SPLK Extremely Overvalued at $3 Billion or is PVSW Extremely Undervalued at $100M? And why isn't SPLK (et al) using their arguably overvalued / fully valued shares to pick up PVSW?

 

References: 

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

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

 

 

23 Comments – Post Your Own

#1) On May 04, 2012 at 8:05 PM, gnulaw (57.22) wrote:

>>The Elephant In The Room Is SPLK Extremely Overvalued at $3 Billion or is PVSW Extremely Undervalued at $100M? And why isn't SPLK (et al) using their arguably overvalued / fully valued shares to acquire PVSW? 

The disturbing and more relevant question is

How many elephants can PVSW fit in a room? 

Elephant 1. SPLK valuation juxtaposed with PVSWs market cap (above post).

Elephant 2. Why isn't PVSW monetizing DataRush, Big Data competitive advantages, patents...? 

Elephant 3. Why did the integration division not increase as % of revenues? The Database division is a DEAD END which currently accounts for 60% of PVSW revenues.


Elephant 4.  PVSW boasts about its Innovation Labs which spawned DataRush but the difference between a startup and PVSWs Innovation Labs is that DataRush and any/all technologies conceived by their Innovation Labs are tied to Pervasive's [incumbent] Marketing and Sales team...a team which has not grown revenues since 2006.  PVSW is simply missing unbridled passion as a corporate culture. The only time one witnesses a pulse from PVSW is when they consistently and disturbingly sing to the choir tweeting and RETWEETING to EACH OTHER !?#^%# what @MikeHSays or when they are awarding themselves multimillion dollar options, or dumping shares, all as they again report negative quarterly earnings growth...

A. No CEO. An entrenched Board of Directors guilty of alleged gross negligence, malfeasance..tbd.

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#2) On May 19, 2012 at 2:45 PM, gnulaw (57.22) wrote:

>>Elephant 2. Why isn't PVSW monetizing DataRush, Big Data competitive advantages, patents...? 

A: Ray Newmark, VP Sales & Marketing Datarush Division, Pervasive leaves PVSW to Flexera , Ron Halversen, Director Marketing, Pervasive leaves to Clarity-Ventures (5/2012). Source: LinkedIn.

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#3) On May 19, 2012 at 2:51 PM, gnulaw (57.22) wrote:

May 15, 2012

Big Data at PVSW ‏@BigDataPVSW

We have a job opening for a #BigData Account Executive here in #Austin, Tx http://ow.ly/aVMaC Please apply online if you're interested!

© 2012 Twitter

 

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#4) On May 24, 2012 at 4:07 PM, gnulaw (57.22) wrote:

PVSW closes down today on a humiliating 2,515 shares volume. On the heels of PVSWs May 22nd B Riley Investor Conference John Farr, CEO, continues to fail to impress the street despite patented datarush technology and multi-year Big Data lead over the competition. The incumbent Board, including John Farr, along with a failed marketing team continue to destroy non-insider/fail to maximize non-insider shareholder value.

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#5) On May 25, 2012 at 6:23 PM, gnulaw (57.22) wrote:

>>"...And lastly, I’m happy to say that the Big Data team recently closed a multi-year partnership with one of the world’s leading Big Data predictive analytics companies providing both commercial and custom analytics solutions for large enterprise. Now more on this new relationship in the future, we will make further announcements following initial deployments as our Pervasive Big Data products and solutions by our newest partner..." -  (Source: John Farr, Apr 24 Conference Call, above post).

Is Opera Solutions the company PVSW closed a multi-year Big Data predictive analytics partnership with? 

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#6) On May 27, 2012 at 10:56 AM, gnulaw (57.22) wrote:

Did (Pervasive:PVSW) Blow Its Multi-Year Big Data Lead?

>>comments 2,4 above:

>>Elephant 2. Why isn't PVSW monetizing DataRush, Big Data competitive advantages, patents...? 

A: Ray Newmark, VP Sales & Marketing Datarush Division, Pervasive leaves PVSW to Flexera , Ron Halversen, Director Marketing, Pervasive leaves to Clarity-Ventures (5/2012). Source: LinkedIn.

On 5:18 PM - 23 Aug 10  the following was tweeted by @DataRush:

Pervasive DataRush ‏@DataRush

Intel and Pervasive Deliver Transformative Performance on a Single Server for Big Data Problems http://bit.ly/bZpA0w

© 2012 Twitter

DataRush's tweet followed Pervasive's Aug 17, 2010 press release.

"...today announced that Pervasive DataRush™ processes MalStone B-10 data at rates of two Terabytes per hour on a 32-core Intel Xeon 7550 server.  The implementation demonstrates performance that can effectively power cyber-security, fraud detection, data preparation, predictive analytics and optimization on large datasets while providing future-proof scalability.
 
“These results provide powerful validation of the ability of Pervasive DataRush to scale massively and consume all available cores as commercially available core counts increase,” said Ray Newmark, vice president of sales and marketing for Pervasive DataRush.  “This kind of performance is a beacon for organizations struggling with complex or large data who want to harness the power of multicore.  We enable users to process large amounts of data to obtain actionable information faster and more cost-effectively than other technologies..." [emphasis added]. - Source: Pervasive, August 17, 2010.

Note: Per comment #2 above Ray Newmark joined Flexera this month.

Elephants in the room 2,4,5: Was Pervasive's skunkworks aka Innovation Labs and beneficiary of PVSWs 25% R&D budget which established a multi-year lead with patented Big Data technology sobotaged by alleged incompetent marketing and sales spearheaded by an alleged gross negligent and incumbent Board of Directors and CEO whom have consistently failed to grow revenues while contemporaneously liquidating and awarding themselves multi-million $ options?

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#7) On May 31, 2012 at 7:14 PM, gnulaw (57.22) wrote:

UPDATE >>"...And lastly, I’m happy to say that the Big Data team recently closed a multi-year partnership with one of the world’s leading Big Data predictive analytics companies providing both commercial and custom analytics solutions for large enterprise. Now more on this new relationship in the future, we will make further announcements following initial deployments as our Pervasive Big Data products and solutions by our newest partner..." -  (Source: John Farr, Apr 24 Conference Call, above post).

Is Opera Solutions the company PVSW closed a multi-year Big Data predictive analytics partnership with? 

Update 

At the May 22nd B Riley Investor Conference, page 43, John Farr presented this slide:

• Key Account win in April
– $100M (600 person) Big Data Predictive Analytics Solutions Provider

Opera Solutions?

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#8) On June 05, 2012 at 4:40 PM, gnulaw (57.22) wrote:

The Street simply has not and continues to not buy in to Jahn Farr as CEO nor his inability to grow revenues concomitant with exclusive insider selling i.e. no open market share purchases, again using Pervasive as an ATM for insiders. How long will ROYCE, DIALECTIC CAPITAL, DIMENSIONAL FUND, et al put up with this? How long will Michael Hoskins (11.2%) tolerate it, although he has also been the lead insider seller. I am thinking Hoskins might just be the person to succeed Farr as CEO or certainly Hoskins [should] align with Royce, Dialectic, Dimensional to force an immedaite change. John Farr is proximate cause for Pervasive's inability to grow revenues while cultivating a Board of Directors complicit with consistently and egregiously issuing themselves shares based on non-performance. Why else would John Farr still remain as CEO other than an entrenched Board that does not want to rock the boat i.e. put their private ATM in jeopardy?  What needs to happen:

1. Bring on a new CEO. With all due respect John Farr's performance has been acceptable, however, now is not the time for a merely "acceptable" CEO. John Farr has appx 6.3% of outstanding shares of PVSW. He should be highly motivated and agreeable to this. He/THe Board should honorably lead this transition. If they don't Hoskins should lead this move with Royce, et al. 

2. Build a marketing team cut from the same cloth as Pervasive's Innovation Labs. Hoskins is on fire. Falgout, Hoskins, Ivey, Royce, Dimensional, Dialectic, PVSW employee shareholders, non-insiders... deserve better.

3. Rebuild the Board of Directors.

all immediately...

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#9) On June 11, 2012 at 6:22 PM, gnulaw (57.22) wrote:

Around 7:00 AM EDST today (6/11/12) (Actuate:BIRT)* issued this press release:

Actuate and Pervasive Software Team to Provide Interactive Visualization of Big Data Analytics

ActuateOne® and Pervasive RushAnalyzer™ Integrate Seamlessly via BIRT to Expand Big Data Analytics Possibilities for Business Users

Around two hours later, at 9:00 AM EDST, (Pervasive:PVSW) issued this press release:

Pervasive Software and Actuate to Democratize Predictive Analytics on Hadoop

Pervasive RushAnalyzer™ Integrates Seamlessly with ActuateOne® via BIRT to Deliver Big Data Visualization to Business Users

Is Actuate Pervasive's • "...Key Account win in April.."
– $100M (600 person)** Big Data Predictive Analytics Solutions Provide? (See original post above, including comments #5, and #7 above). If so,the CEO certainly dialed down his enthusiasm as relayed on the April 24 Conference Call i.e. no mention of it today.

PVSW closed down today 4.00% on 2.03X ADV (3 mo)...

*Actuate Corporation (Key Stats):

Market Cap: $315.4M

Forward P/E: 10.67

ROE: 12.9%

Cash: $67.66M

Revenues: $137.69M

**Employees: 553

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#10) On June 13, 2012 at 3:10 PM, gnulaw (57.22) wrote:

>>The Street simply has not and continues to not buy in to Jahn Farr as CEO nor his inability to grow revenues ...(comment #8 above)

I keep thinking about what is the core/organic problem with Pervasive's multi-year inability to grow revenues and then I started thinking about Steve Jobs and Apple. John Farr/Pervasive is the opposite of Steve Jobs/Apple. Pervasive [had] no vision, fire, passion, mindset, nor requisite [marketing] intelligence to make this happen. Pervasive hires locally not from the doers and shakers from Silicon Valley nor Stanford, Harvard, MIT, Wharton.

Many questions here including...Can Pervasive realistically compete based in Austin vs. Silicon Valley? (See RIM).  

How did database pioneer Pervasive [miss] the NoSql [database] revolution? Same reason.

John Farr was appointed CEO of PVSW in Jan 2006 after the CEO left to start another Company. Farr is a CPA by training. John Farr was not a founder. This is key for a company this size. Actually critical. Revenues have not increased since John Farr became CEO...and the Board keeps taking their option awards...

 

      

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#11) On June 15, 2012 at 9:27 PM, gnulaw (57.22) wrote:

Pervasive CTO puts pressure on PVSW shares dumps 2x ADV June 13-14-15 while talking up Pervasive Big Data at DeployCon June 13. Company insiders have never purchased on open market...Form 4 Sells as PVSW employees tweet him on " @araffalovich RT @wendywhite: RT @alexwilliams: @MikeHSays delivers visionary keynote about #PaaS and its future. Great stuff. #deploycon  he is brilliant 4:20 PM - 13 Jun 12 via TweetDeck · Details " © 2012 Twitter

A one-man closed-loop Investor Relations closed-loop feedback system? Insider maximization of shareholder value on steroids...

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#12) On June 16, 2012 at 11:16 AM, gnulaw (57.22) wrote:

Clarification:

>>Pervasive CTO puts pressure on PVSW shares dumps 2x ADV June 13-14-15 while talking up Pervasive Big Data at DeployCon June 13. Company insiders have never purchased on open market...Form 4 Sells as PVSW employees tweet him on

" @araffalovich RT @wendywhite: RT @alexwilliams: @MikeHSays delivers visionary keynote about #PaaS and its future. Great stuff. #deploycon  he is brilliant 4:20 PM - 13 Jun 12 via TweetDeck · Details " © 2012 Twitter

>> while talking up Pervasive Big Data at DeployCon June 13.

Source: @duncanjw  enjoying keynote @MikeHSays talking ‪#bigdata‬ at ‪#paassummit‬ 10^6 ‪#hadoop‬ clusters have been stood up in ‪#AWS‬ ‪#cloud‬ 3:56 PM - 13 Jun 12 via TweetDeck

© 2012 Twitter

Elephant (#6) in the room (1-5 above post and comments): Why aren't insiders acquiring shares in the open market if they feel they are on to something with their latest successes in Integration and Big Data (DataRush)? It's very disturbing when the CTO responsible for the latest Innovation Labs' Big Data product development (DataRush, RushAnalyzer, et al) is dumping shares as he is keynoting on the subject...

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#13) On June 19, 2012 at 7:51 PM, gnulaw (57.22) wrote:

[Update1] Pervasive CTO puts pressure on PVSW shares - Comment #12 Update.

June 4, PVSW CTO Micheal Hoskins files SEC Form 144 to SELL 100,000 shares. June 4-6, Hoskins sold 56,000 shares and change pressuring the shares down on June 4 and 5. Per comment #12 above He sold 36,000 shares and change between June 13-15. June 18 he sold an additional 6,674 shares. Contemporaneous with said transactions Pervasive was issuing these press releases. 

 Q: Who was absorbing said SELL transactions? It may be nothing* but it better not have been part of Pervasive's share repurchase program**. That would be blatant alleged criminal gross negligence, and alleged stock fraud and would be vigorously pursued accordingly with all legal recourse including but not limited to immediately seeking an investigation by the SEC, et al. Developing...

* Reasons for concern:

1. PVSW has not increased revenues going back to at least 2006.

2. PVSW has not increased revenues going back to at least 2006.

3. PVSWs Board is entrenched and there is an alleged very unhealthy relationship between the entrenched Board, the CEO, certain Sr Management, and PVSWs option awards not based on performance. No one wants to give up their insider ATM so nothing ever changes...until now.

4.  PVSW has not increased revenues going back to at least 2006.

5.  There has never been any insider purchases of PVSW common stock on the open market. There has only been insider SELLS of options awards not based on performance.

6.  PVSW has not increased revenues going back to at least 2006.

** "...During the twenty-four fiscal quarters ending March 31, 2012, the Company has acquired approximately 10.5 million shares of its common stock on the open market at a total cost of approximately $46.1 million, or approximately $4.36 price per share. The Company’s Board of Directors approved the current stock repurchase plan effective July 27, 2010, whereby the Company may repurchase additional shares of its common stock with a value of up to $10 million, of which approximately $1.6 million remains available as of March 31, 2012. Depending on market conditions and other factors, such purchases may be commenced or suspended at any time without prior notice. There can be no assurance that we will continue to buy any of our common stock under our share repurchase program or that any past or future repurchases will have a positive impact on our stock price. Important factors that could cause us to discontinue our share repurchases include, among others, unfavorable market conditions, the market price of our common stock, the nature of other investment opportunities presented to us from time to time, and the availability of funds necessary to continue purchasing common stock..." Source SEC Form 10-Q for the period ended March 31, 2012.

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#14) On June 22, 2012 at 4:43 PM, gnulaw (57.22) wrote:

BREAKING: 633,676 shares trade [at] the Closing Bell.  (Pervasive:PVSW) shares down $0.02 on 804,012 shares volume on 35.95X ADV (3 mo)...

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#15) On June 22, 2012 at 5:53 PM, gnulaw (57.22) wrote:

[Update2] Pervasive CTO puts pressure on PVSW shares - Comment #13 Update.

@MikeHSays* "...Now I'm a very active trader still..." source: [3:50/17:35] TEDxBGSU - MIKE HOSKINS- CTO, PERVASIVE SOFTWARE - HOW BIG DATA IS CHANGING THE WORLD

* © 2012 Twitter

 

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#16) On June 22, 2012 at 6:15 PM, gnulaw (57.22) wrote:

[Update3] Pervasive CTO puts pressure on PVSW shares - Comment #13 Update.

@MikeHSays* "...Now I'm a very active trader still..."

source: [3:50/17:35] TEDxBGSU - MIKE HOSKINS- CTO, PERVASIVE SOFTWARE - HOW BIG DATA IS CHANGING THE WORLD

* © 2012 Twitter

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#17) On June 22, 2012 at 9:32 PM, gnulaw (57.22) wrote:

[Update1] (comment #14) BREAKING: 633,676 shares trade [at] the Closing Bell.  (Pervasive:PVSW) shares down $0.02 on 804,012 shares volume on 35.95X ADV (3 mo)...

Another 878,505 shares traded after the bell. PVSW share volume today was 1,682,517 or 75X ADV (3 mo). Who bailed?

Note: Most trades crossed at $7.30.

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#18) On June 22, 2012 at 10:40 PM, gnulaw (57.22) wrote:

(Actuate:BIRT) (Pervasive:PVSW) Merger Pending? (see comment #9 above)

 

Makes sense...for all reasons cited here on Motley Fool including this.

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#19) On June 25, 2012 at 7:10 PM, gnulaw (57.22) wrote:

[Update4] Comments #13, #16 Update.

Issues of Fact

AS A MATTER OF RECORD Pervasive CTO dumps another 50,000 shares* June 21-22. 

 

*SEC Form 4 filed June 25, 2012.

 

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#20) On July 23, 2012 at 6:19 PM, gnulaw (57.22) wrote:

B Riley Downgrades PVSW The Day Before Earnings Call. Pervasive CTO SOLD 150,000 shares in the last half of the last month, i.e. days before the end of Pervasive's Q4 FY ending June 30, 2012 (see above comments #11 - #19). Not only were these stock SELLS during the alleged Blackout/Quiet/Closed Trading Window period for Pervasive insiders esp given the fact the CTO is a Director but these trades may also be an alleged violation of the Insider Trading Sanctions Act of 1984 and the Insider Trading and Securities Fraud Enforcement Act of 1988.

Q1. How does B Riley issue a downgrade the day before the Earnings Call?

Q2. What did the CTO know and when did he know it?

Story developing...

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#21) On July 23, 2012 at 6:49 PM, gnulaw (57.22) wrote:

See (Pervasive:PVSW) What's Wrong With This Picture? (including comments #1 - #11).

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#22) On July 24, 2012 at 6:05 PM, gnulaw (57.22) wrote:

>>Is Opera Solutions the company PVSW closed a multi-year Big Data predictive analytics partnership with? (comment #5 above)

 

Per this afternoon's FY2012 ending June 30 conference call PVSW is, in fact, in a (yet to be formally disclosed) alliance with Opera Solutions. 

 

 

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#23) On July 28, 2012 at 8:00 AM, gnulaw (57.22) wrote:

>>Per this afternoon's FY2012 ending June 30 conference call PVSW is, in fact, in a (yet to be formally disclosed) alliance with Opera Solutions. 

Again, Opera Solutions is, in fact [the] alliance referred to in the Q312 conference call (comments #5, #7 above) and [NOT] Actuate (NASDAQ:BIRT) announced June 11, 2012.  What is interesting the Actuate alliance formally announced was never mentioned on the July 23 Conference Call.

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