Research Intensive Investing

Risk May Outweigh Reward for Newly Public Deltek

Interesting write-up. I started doing some work on this: looks like they are basically the are one of only two companies out of ~20 in their space that carries a net debt position. Also, much of that growth came from acquisitions: they had nice organic growth in 06', but in first 6 months of 07' about 80% of license revenue growth came from acquisitions. Maintenance revenue seems safe, but Licensing revenue depends on new sales, and consulting revenue is highly tied to implementation levels. They also are tied directly to government contractors, who could be facing some serious issues going forward as the government presumably clamps down some on spending. Thanks again--I plan to keep an eye on this one.

Eric
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