5 Underlying Trends Supporting Guidance Software, Inc. (GUID)

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Guidance’s full year 2012 revenues came in at $130.9 million. After the market sell off, the company is valued between $230 and $250 million. After backing out the $32 million in cash, Guidance can be acquired for roughly 1.7 to 1.9 times sales— about a 77% discount compared to Symantec’s comparable acquisition.

The company has guided an uptick in R&D, Marketing, and Selling related expenditures in 2013. Fruits of this investment will begin to appear in the back half and throughout 2014.

Lastly, don’t forget to mark May 19th on your calendar. Guidance will be hosting the CEIC Conference in Orlando and unveiling their new IT Security product — it could be a market moving event. The new product will compliment EnCase Enterprise, and in many cases they will be sold together, which should increase overall ASPs.

The article 5 Underlying Trends Supporting GUID originally appeared on Fool.com and is written by Daniel Cook.

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