My initial Seeking Alpha write-up on Datawatch
Please click to get background and investment thesis
At this time based on Friday’s announcement I see Datawatch as a 1 -3 year hold.
Friday 09/09/10 Datawatch reported the newly created seat on the company’s board. Doesn’t sound too exciting but for a tiny BI software publisher like DWCH it’s very significant when you can attract David C Mahoney. “Mr. Mahoney is a recognized entrepreneur, executive and early stage investor in the software industry. He began his career developing software at MIT Lincoln Labs and in 1973 he joined Data General where he spent 10 years leading the design and development of communications, networking and workstation products. In 1983, Mr. Mahoney founded Banyan Systems, the first software company to create a comprehensive enterprise networking solution that integrated mainframes, minicomputers and personal computers. Within one year, the company delivered the innovative VINES Operating System, Banyan Network Server and Streettalk, the first commercially available enterprise wide directory service. Banyan went public in 1992 and grew its revenues to more than $150 million. Under Mr. Mahoney's leadership, the company later created Switchboard, an Internet white/yellow pages service which grew to become jointly funded by AOL and CBS and went public in 1999.
In 2003, Mr. Mahoney became CEO of Applix, Inc. and led a restructuring that enabled the company to attain a sustained growth rate in excess of 35 percent annually and resulted in a successful merger in 2007 with Cognos, Inc. During his tenure at Applix, the company achieved a twenty times increase in market valuation. Mr. Mahoney continues to work with venture firms and their early to mid-stage companies as a key board member, advisor or investor, and is currently a director in several U.S. and Canada-based software companies where he works with management and boards to develop and execute growth strategies, secure funding, expand management teams and develop strategic relationships.”
Mr. Mahoney said, "I am very excited to be involved with Datawatch at this time in its history. Businesses more than ever require innovative, cost effective means to enable them to make good business decisions. The company offers a truly unique value proposition to its customers with its suite of easy-to-use, rapid time to implementation BI solutions. Datawatch has a solid infrastructure to support domestic and global opportunities in business intelligence, data transformation and analytics. I look forward to working with the Board of Directors to accelerate the company's growth and the adoption of its BI solutions."
I believe Dave Mahoney will become hands on member of the Datawatch team and leverage his knowledge, contacts and proven BI success to move DWCH from a tiny17 million market cap with no debt, and positive FCF to a more relevant player in the BI space with their unique solutions.