The Web Conferencing Blog

WebEx Is Staying Ahead of the Crowd

EVER SINCE THE SUCCESS of Salesforce.com's (ticker: CRM) initial public offering in 2004, Subrah Iyar, the CEO of rival WebEx Communications, has argued that WebEx is much more than an online-meeting facilitator, and should be valued as such. We helped him make that case last summer ("Why WebEx Will Shine," June 12, 2006), and we're still glad we did.

The Santa Clara, Calif., provider of "on demand" software shot the lights out in its fiscal fourth quarter, and the news could get better from here. Its shares have rallied about 27%, to around 47, since Jan. 31, when WebEx (WEBX) reported that its quarterly profit rose 18%, to 33 cents a share, on a 22% gain in revenue, to $101.9 million.

Critics have worried that WebEx would fall victim to competitive threats from Microsoft (MSFT), as well as commoditization. But so far, the company is providing reliability and scale that others can't seem to match.

"We see Web collaboration as the 'killer app' over the Internet, and we are the best in class at delivering that service," Iyar says.

One fan, software analyst Peter Goldmacher of Cowen, calls WebEx "the most interesting company in the software space." He's sticking with his July prediction that the shares could top 60 in the next few years.

Our bet? It could happen sooner.

(Article provided by Barron's Online)

Thanks,
David Chao
The Web Conferencing Expert

Goldman Sachs Initiates Coverage

Highly respected and Wall Street analyst giant, Goldman Sachs, initiated coverage on WebEx (WEBX). From an investment standpoint, Goldman Sachs' research indicates that WEBX outperforms its peer group in the areas of Growth, Returns, Multiple, and Volatility.

Areas of great interest include WebEx Connect and the AIM Pro solution.

Download goldman_sachs_2107.pdf

Thanks,
David Chao
The Web Conferencing Blog

Credit Suisse Initiates Coverage

The well respected Credit Suisse initiated coverage on WebEx (WEBX) with a neutral rating and a $50 price target.

Research Analysts, Jason Maynard and Bryan McGrath agree that, "WebEx is the premier player in the Web conferencing and collaboration market. In our opinion, the company boasts a vastly superior technology delivery platform and a pure On demand model."

Key advantages for WebEx:

• Tremendous market growth opportunities
• Pure On Demand Model
• Differentiated Technology Platform

" The WebEx MediaTone Network was built on more than $180 million in R&D investment, runs on 37 global clusters, and delivers five 9s reliability. This piece of technology would be extremely difficult to replicate and thus has a significant strategic asset value."

Download credit_suisse_initiation_rpt_2607.pdf

Other investment firms such as Goldman Sachs and Citigroup, now have their eyes on WebEx...

Thanks,

David Chao
The Web Conferencing Expert

Lehman Brothers and WebEx

WebEx will be making a presentation to investors at the Lehman Brothers Global Technology Conference on Wednesday, December 6.

A webcast and replay of each presentation will also be available on the company's investor relations website. Click Here to View the WebCast

Thanks,
David Chao
The Web Conferencing Expert

"Outperform" Upgrade by Two Analyst Firms

Yesterday, the financial analysts at Robert W. Baird held firm on their "outperform" rating while raising the target price from $38 to $42.

Casey Ryan from Nollenberger Capital set a price target of $40 on August 21st and with a close on Friday of $38.71.

Peter Goldmacher and Jim Bao, both analysts from Cowen and Company also maintain their "outperform" rating. With the release of new WebEx products, Cowen and Company believes this will translate into new top line revenue.

New Products include the following:

• WebOffice
• WebEx Mail
• Workspace
• AIM Pro Business Edition
• Desktop Management/Systems Management

Thanks,
David Chao
The Web Conferencing Expert