By Witisada Wattananimitgul

March 30, 2013

Founded in 1999 in Chicago by Stuart Bailey

2003 – Moved to Santa Clara

2010 – Acquired Netcordia to broaden its range

of network infrastructure automation products

Jan 2011 – Acquired Patents from Avaya

April 2011 – Acquired SolSoft from LogLogic

April 2012 – IPO

Service 6,000 customers in 25 countries

1/3 Fortune 500 companies use products and

services from BLOX

Partnership with Cisco Systems, F5 Networks, Microsoft, Riverbed Technology, VMware, FireEye for joint product development

Rely on intellectual property (patent, trademark and copyright laws, license agreements, etc)

28 patents issued in the U.S. and 7 in foreign jurisdictions (duration of patents ~17 years)

603 employees, 140 in R&D

33% revenue growth

Positive operating cash flows of $209.3 million

Gross profit margin of 78.6%

“We offer a solution that combines real-time IP address management with the

automation of key network control and network change and configuration

management processes through a range of purpose-built physical and

virtual appliances that are integrated with our proprietary software and

provide varying levels of performance targeted to meet specific end

customer needs.”

DNS, DHCP, and IP Address Management

2 Family of Products

Trinzic DDI

NetMRI

Trinzic DDI Automates key network

control processes and is

augmented with

optional functionality

to protect against

security vulnerabilities

related to these

network control

processes, such as DNS-

based malware attacks

NETMRI Automatically comparing each

change against policies, NetMRI

proactively identifies violations

and streamlines the audit

process with less time and

manual effort

Helps users control and maintain

consistent networks for both

internal best practices/gold

standards and external

compliance mandates including

PCI, NSA, SANS, DISA and others

Undervalued

Much room for growth in the company and in the

market

Unique products and services

$19.56 as of Friday, March 29, 2014

Market Cap: 1.05B

52 week Range: $17.10 – $48.97

Operating Multiples Average

EV/Revenue 5.08030874 0.592548398 2.298673698 3.462695227 2.117972

EV/EBIT -

364.3381134 -0.842976044 5.543212861 419.795039 141.4984

EV/EBITDA 44.66686201 -0.901335573 4.914482286 15.9992011 6.670783

EV/ Unlevered FCF 20.08633368 -0.760138394 6.071127043 11.66700983 5.659333

P/E -

247.3899228 7.804477046 12.32178608 -250.4429055 -76.7722

In Thousands BLOX HPQ IBM RVBD

Network Management has become

increasingly crucial

DNS servers vulnerable to hacking attacks

Rapid Growth in Numbers and Types of

Connected Devices

Rapid Growth in Number of Connected

Software Applications

Proliferation of Virtualization and Cloud

Computing

Adoption of IPv6

Dynamic Network

Services

BlueCat Networks

SolarWinds

EMC

BMC

HP

IBM

Consolidated Statements of Operations Data:

Year Ended July 31,

2013 2012 2011

(In thousands)

Net revenue:

Products and licenses $ 128,203 95,012 80,274

Services 96,841 74,234 52,561

Total net revenue 225,044 169,246 132,835

Cost of revenue (1):

Products and licenses (1) 29,228 21,778 16,652

Services 19,025 15,342 12,187

Total cost of revenue 48,253 37,120 28,839

Gross profit 176,791 132,126 103,996

Operating expenses:

Research and development (1) 43,056 36,624 29,605

Sales and marketing (1)(2) 112,385 86,474 67,390

General and administrative (1) 24,488 15,548 10,831

Total operating expenses 179,929 138,646 107,826

Loss from operations (3,138) (6,520) (3,830)

Other expense, net (618) (946) (690)

Loss before provision for income taxes (3,756) (7,466) (4,520

Provision for income taxes 650 744 802

Net loss $ (4,406) (8,210) (5,322)

History of losses, may not be profitable

Compete in a highly competitive markets

Significant majority of products and license

revenue from sales of Trinzic DDI family…but

what if sales slows?