Aladdin Knowledge Systems
Aladdin Knowledge Systems (Aladdin), founded in 1985, provides Internet security and software commerce. The Company’s products include: eToken, a two-factor authentication USB device; the eSafe suite of anti-virus and content security solutions; HASP and Hardlock hardware-based software security systems; and Privilege software commerce solutions.


Aladdin Knowledge Systems provides Internet security and software commerce. The Company’s products include: eToken, a two-factor authentication USB device; the eSafe suite of anti-virus and content security solutions; HASP and Hardlock hardware-based software security systems; and Privilege software commerce solutions. Aladdin offers four eToken products: eToken Enterprise, eToken SDK, eToken R2 and eToken PRO. The eSafe family of products includes eSafe Gateway, eSafe Enterprise, eSafe Mail and eSafe Desktop. The HASP family includes HASP USB Cross Platform, HASP Standard, MemoHASP-1 and MemoHASP-4, NetHASP, TimeHASP and HASP PC-Card. Hardlock is a family of software commerce solutions that enable the secure management, distribution and sale of copyrighted content in electronic form, enabling publishers to grow their business. Privilege is an integrated electronic software licensing system. Privilege allows software vendors to increase their revenue through flexible business models.


GROWTH RATES
1 Year3 Years5 Years
Sales %-0.779.0712.30
EPS %-82.89-49.03-27.45
Dividend %NMNMNM
REVENUE
Quarters1998199920002001
MAR9,48110,86211,77312,328
JUN8,83710,41910,65410,533
SEP8,01011,05210,13510,724
DEC9,81112,35811,783
Totals36,13944,69144,34533,585
Note: Units in Thousands of U.S. Dollars
EARNINGS PER SHARE
Quarters1998199920002001
MAR0.2600.1000.200-0.042
JUN0.2700.030-0.020-0.170
SEP0.2300.360-0.080-1.110
DEC-0.6900.2400.020
Totals0.0700.7300.120-1.322
Note: Units in U.S. Dollars
RATIO COMPARISON
Valuation RatiosCompanyIndustrySectorS&P 500
P/E Ratio (TTM)NM51.0246.3530.72
P/E High – Last 5 Yrs.NA85.4266.2450.15
P/E Low – Last 5 Yrs.NA21.4918.6617.51
Beta1.851.901.831.00
Price to Sales (TTM)0.6610.496.263.81
Price to Book (MRQ)0.697.205.695.59
Price to Tangible Book (MRQ)0.698.627.488.57
Price to Cash Flow (TTM)NM40.7232.5921.09
Price to Free Cash Flow (TTM)NA30.8939.6238.21
% Owned Institutions23.9041.0243.5459.04
DividendsCompanyIndustrySectorS&P 500
Dividend Yield0.000.280.671.75
Dividend Yield – 5 Year Avg.0.000.010.221.25
Dividend 5 Year Growth RateNM-10.1510.309.17
Payout Ratio (TTM)0.000.126.0628.29
Growth Rates(%)CompanyIndustrySectorS&P 500
Sales (MRQ) vs Qtr. 1 Yr. Ago5.814.45-13.00-0.56
Sales (TTM) vs TTM 1 Yr. Ago1.0016.145.347.78
Sales – 5 Yr. Growth Rate12.3032.7527.3115.32
EPS (MRQ) vs Qtr. 1 Yr. AgoNM-34.66-40.34-12.30
EPS (TTM) vs TTM 1 Yr. AgoNA-33.41-32.02-2.93
EPS – 5 Yr. Growth Rate-27.4530.4428.6917.13
Capital Spending – 5 Yr. Growth Rate11.5723.1918.3112.75
Financial StrengthCompanyIndustrySectorS&P 500
Quick Ratio (MRQ)3.112.772.331.15
Current Ratio (MRQ)4.113.072.901.68
LT Debt to Equity (MRQ)0.000.070.220.70
Total Debt to Equity (MRQ)0.000.080.290.99
Interest Coverage (TTM)NM-9.055.388.34
Profitability Ratios (%)CompanyIndustrySectorS&P 500
Gross Margin (TTM)78.1179.4750.3248.13
Gross Margin – 5 Yr. Avg.74.0878.1152.7248.80
EBITD Margin (TTM)-33.5635.0715.6020.77
EBITD – 5 Yr. Avg.10.9435.1521.3022.34
Operating Margin (TTM)-33.5628.089.1815.92
Operating Margin – 5 Yr. Avg.4.2227.3915.4018.24
Pre-Tax Margin (TTM)-31.6227.1310.0713.91
Pre-Tax Margin – 5 Yr. Avg.11.2933.5018.5017.66
Net Profit Margin (TTM)-31.3814.473.669.02
Net Profit Margin – 5 Yr. Avg.8.2920.9311.4511.39
Effective Tax Rate (TTM)NM33.8433.3233.74
Effective Tax Rate – 5 Yr. Avg.40.3136.2534.9635.55
Management Effectiveness (%)CompanyIndustrySectorS&P 500
Return On Assets (TTM)-20.897.562.066.06
Return On Assets – 5 Yr. Avg.6.2514.959.518.25
Return On Investment (TTM)-25.2810.843.789.74
Return On Investment – 5 Yr. Avg.7.0624.0214.3213.14
Return On Equity (TTM)-27.2311.415.8616.70
Return On Equity – 5 Yr. Avg.7.0526.1518.7122.14
EfficiencyCompanyIndustrySectorS&P 500
Revenue/Employee (TTM)128,158401,264365,956640,237
Net Income/Employee (TTM)NM105,09453,02087,148
Receivable Turnover (TTM)3.796.386.509.21
Inventory Turnover (TTM)1.5321.4010.9410.53
Asset Turnover (TTM)0.670.600.750.97
Ownership Summary
% Shares Owned:24.90 Price Range Quarter:$2.75 – $4.09
% Change in Ownership:4.56 # New Buyers:2
# Institutions:9 # Closed Positions:0
Total Shares Held:2,817,220
3 Mo. Shares Purchased:123,781 # Buyers:3
3 Mo. Shares Sold:(800) # Sellers1
3 Mo. Net Change:122,981 # Net Buyers:2
Top Institutional Holders
Institution NameShares HeldPosition Value (000)% Shs. Out.Portfolio Date
MILLS VALUE ADVISER, INC. 2,200,387$6,601.1619.43%9/30/2001
BAUPOST GROUP 477,056$1,431.174.21%9/30/2001
LEHMAN BROTHERS ASSET MGMT 80,400$241.200.71%9/30/2001
ROYCE & ASSOCIATES 27,300$81.900.24%9/30/2001
CREDIT SUISSE ASSET MANAGEMENT 26,000$780.23%9/30/2001
US TRUST CORP /NY 4,000$120.04%9/30/2001
DEUTSCHE BANK SECURITIES 996$2.990.01%9/30/2001
MERRILL LYNCH & CO INC 915$2.750.01%9/30/2001
DEUTSCHE BANKERS TRUST 166$0.500%9/30/2001
Top Changes in Ownership
Institution NameChange in Shares HeldTotal Shares Held% Change in Shares HeldPortfolio Date
BAUPOST GROUP 122,700477,05635%9/30/2001
MERRILL LYNCH & CO INC 915915 9/30/2001
LEHMAN BROTHERS ASSET MGMT (800)80,400-1%9/30/2001
DEUTSCHE BANKERS TRUST 166166 9/30/2001
MILLS VALUE ADVISER, INC. 02,200,3870%9/30/2001
CREDIT SUISSE ASSET MANAGEMENT 026,0000%9/30/2001
ROYCE & ASSOCIATES 027,3000%9/30/2001
US TRUST CORP /NY 04,0000%9/30/2001
DEUTSCHE BANK SECURITIES 09960%9/30/2001
Top Purchasers
Institution NameShares PurchasedShares Purchased Value (000)Shares HeldPortfolio Date
BAUPOST GROUP 122,700$368.10477,0569/30/2001
MERRILL LYNCH & CO INC +915$2.759159/30/2001
DEUTSCHE BANKERS TRUST +166$0.501669/30/2001
Note:+ Denotes new position.


Top Sellers
Institution NameShares SoldShares Sold Value (000)Shares HeldPortfolio Date
LEHMAN BROTHERS ASSET MGMT (800)($2.40)80,4009/30/2001
Words
/ Pages : 562 / 24