Reports Analyst Briefing Note Brady | Page 3
Viveo
Switzerland,
acquired
in
March
2010,
was
a
provider
of
CTRM
software
for
metals,soft
commodities,
oil,
gas
and
metals
with
a
sizable
installed
base
primarily
in
Central
and
Eastern
Europe.
The
FinTrade
product
has
become
a
core
product
for
Brady
and
continues
to
be
a
strong
performer
while
Viveo’s
location
in
Switzerland
has
also
proven
to
be
strategic.
Commodities
Software
(ComSoft),
acquired
in
January
2009,
was
the
provider
of
Aquarius,
a
leading
solution
for
the
administration
of
raw
materials,
physical
metal
and
associated
hedge
and
risk
management.
The
combination
of
Brady
and
ComSoft
ensured
that
Brady
became
the
market
leader
in
metals.
Outlook and Analysis
With
57%
recurring
revenues,
consistently
profitable
and
no
debt,
Brady
PLC
is
well
positioned
to
challenge
the
current
CTRM
leaders
across
all
commodities
and
on
an
increasingly
global
basis.
To
do
so,
it
must
continue
its
strategy
of
addressing
holes
in
its
product
lines
by
either
building
or
acquiring
and
continue
to
ensure
that
its
other
products
both
remain
functionally
competitive
and
increasingly
integrated.
Its
cloud
strategy
is
proving
successful
and
is
further
contributing
to
an
already
predictable
revenue
stream;
a
critical
requirement
for
a
publically
listed
company.
Brady
has
access
to
additional
capital
and
has
a
track
record
of
concluding
several
successful
acquisitions.
Though
the
company
has
demonstrated
several
years
of
good
growth,
Brady
will
face
a
challenge
in
closing
the
revenue
gap
between
itself
and
the
top
2-‐vendors
without
overstretching
itself
or
sacrificing
customer
service.
Opportunities
•
•
•
•
•
As
a
public
company,
with
a
strong
balance
sheet
and
no
debt,
Brady
provides
excellent
visibility
into
its
financials
and
operations,
giving
the
company
an
advantage
in
sales
opportunities
in
which
vendor
stability
is
a
concern
for
companies
seeking
new
software.
With
comprehensive
asset
coverage
and
strengthened
global
distribution
and
support,
Brady
has
the
opportunity
to
continue
to
grow
further
globally.
Ability
to
leverage
a
growing
installed
base
of
more
than
300
customers
for
cross
selling
of
additional
products
and
services.
Well
positioned
to
leverage
cloud
deployed
solutions
market
growth.
Proven
ability
to
identify
and
make
other
strategic
acquisitions
to
support
its
growth
and
fill
in
any
holes
in
its
geographic
and
functional
coverage.
Risks
•
•
•
Long-‐term
success
in
global
CTRM
will
require
continued
penetration
into
North
American
markets
and
increased
success
selling
into
Asian
markets.
Public
company
financial
visibility
does
increase
risks
of
damaging
market
confidence
should
Brady
lose
momentum
in
a
traditionally
volatile
market.
Growth
via
acquisition
does
have
risk
associated
with
difficulty
of
integration,
retention
of
skilled
and
experienced
resources,
and
long-‐
term
retention
of
acquired
client
base.
____________________________________________________________________________________________________________
About ComTech Analyst Briefing Notes
Commodity
Technology
Advisory
(ComTech)
is
the
leading
analyst
organization
covering
the
Energy
and
Commodity
Trading
and
Risk
Management
(E/CTRM)
technology
markets.
We
provide
invaluable
insights,
backed
by
primary
research
and
years
of
experience,
into
the
issues
and
trends
affecting
both
the
users
and
providers
of
the
applications
and
services
that
are
crucial
for
success
in
markets
constantly
roiled
by
globalization,
regulation
and
innovation.
ComTech
Analyst
Briefing
Notes
are
intended
only
to
provide
an
overview
of
a
technology,
vendor
or
product
of
interest
in
the
Commodity
Trading
and
Risk
Management
market
space.
These
Notes
are
not
an
endorsement
of
any
product
or
vendor
and
should
be
viewed
only
as
an
additional
source
of
information
or
data
relating
to
the
covered
topic.
Disclosures:
At
the
time
of
this
writing,
Brady
plc
is
a
customer
of
Commodity
Technology
Advisory
and
the
company’s
management
cooperated
in
the
preparation
of
this
ComTech
Analyst
Briefing
Note.
____________________________________________________________________________________________________________
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