It's not everyday we come across a company that piques our interest; Qlik Technologies is one of the few. Key to any companies success is a solid business model, improving financial results and a diversified customer base -- Qlik has all three. Add into the mix industry longevity and the potential for significant market share growth and you have a story worth telling.

QlikView is an easy-to-use business intelligence solution, which allows its users to make "better and faster business decisions" as its software platform combines "enterprise-class analytics" and search capabilities, powered by its in-memory associative search technology. The Readers Digest version is that Qlik has designed its solutions to "mirror associative nature of human thought," with the commingling of data translating into a more efficiently run business.

QlikView can be installed and implemented throughout an organization in less than three months, with its time for deployment significantly less than that of competing products, as the average install time for others is roughly 18 months. Moreover, according to Qlik, its solutions require less expenditures on hardware, software, services and ongoing IT support.

  • Qlik Technologies -- QLIK
  • Lead Underwriter -- Morgan Stanley
  • 11.2 million shares
  • Current price range -- $8.50 to $9.50
  • Deal size to the mid-range -- $100.8 million
  • Market cap to the mid-range -- 674.6 million
  • Sector -- enterprise software services

Typically, larger enterprises employ software such as this as the pricing model for these types of products is quite costly. However, Qlik has structured its services to make it affordable for all size businesses. Moreover, the company notes that the platform can be installed and used with "minimal training," while licensing rights can be purchased that best meets a businesses needs. Nevertheless, the bottom line for most companies today is whether or not an investment such as this justifies the cost. Based on data collected IDC, Qlik users achieved an average of a 186% return on investment on QlikView projects, a 23% increase in cash flow, a 20% decrease in operating costs and a 34% increase in productivity. Clearly, these stats speak for themselves as the benefits of deploying Qlik's solutions are obvious.

Currently, Qlik estimates that its customer base is around 14,000 and the majority of its revenue is generated outside of the U.S. with its domestic penetration just beginning to ramp up. While that may seem odd, given its U.S. domiciled address, Qlik is a Sweedish-based firm and has been in business since 1993 -- its initial sales and marketing efforts were focused in the Nordic region. Subsequent to 2004, the company began to expand into the U.S. and will now look to penetrate other regions including Japan, Australia, China, Russia and Brazil.

Based on industry analysis, the business intelligence market is expected to increase to roughly $8.6 billion in 2010, with Qlik looking to expand its piece of the pie in this space. Qlik expects that much of its growth will come from the U.S., as penetration within this region remains limited, while significant demand for solutions such as this exists across a broad spectrum of industries.

The only wrench in the system is the current uncertainty on Wall Street as investors have wavered in their support for new issues. Of the 69 initial public offerings that have been priced since January, only 23 are trading at or above their initial price. The quality of these offerings does vary, with many of these deals featuring a private-equity component leading many investors to walk away from these new issues.

However, others have been fundamentally sound businesses with profitable results and strong growth prospects. The fact is that this is a difficult market to come public in. Clearly, based on the current price range, Qlik realizes that it's moving against the tide. While we expect Qlik to buck the trend, there does remain that risk that it may break its initial price in the near term.

The IPO of Qlik is expected to price Thursday. in Millburn, N.J., is the oldest equity new issues research firm on the Street, with 20 years of experience. IPOfinacial projects the opening premiums of IPOs and secondaries before they price. Its research packages are available to individual investors and institutions alike.