Chordiant Software (NASDAQ–CHRD)
Price March 3, 2010-$3.63
CHRD is another software company.
As of December 31, 2009, CHRD had just over $50 million in net cash and investments and was profitable on a Non-GAAP basis in Q1 (December quarter). Our valuation is $7.50 per share so it is trading at 48% of our valuation. Cash is $1.73 per share or 47% of the market price.
Revenues are about $70 million a year, with just over 70% gross margins.
In January CDC Software made a low ball bid to buy CHRD for $3.46 a share. This was dismissed outright by the company as being too low.
A Wall Street research firm (451 Group) recently listed CHRD as a company that VMware could buy.
Their latest Proxy Statement listed 6 investment groups with more than 5% holdings.
All in all, CHRD fits in our valuation range and has obviously attracted some takeover interest.
CHRD trades about 170,000 shares a day, so liquidity is not an issue
There are about 30 million fully diluted shares outstanding.
About Chordiant Software, Inc.
Chordiant Software optimizes the customer experience to help global brands multiply customer lifetime value. Chordiant arms marketing, customer service and customer loyalty executives with a suite of intelligent conversation management applications to deliver an order of magnitude improvement in customer experience. By maximizing the value of every conversation across all channels, Chordiant enables today’s fast-paced brands to engage more effectively with customers and quickly measure whether business strategies are succeeding, resulting in faster acquisition, improved competitiveness, less churn, and superior customer service.