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  "documentTitle": "Legion One Span Presentation May 2021",
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  "presentationDate": "2021-05-01 00:00:00",
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  "notes": "The slide uses an SOTP (Sum-of-the-Parts) valuation argument to pressure management for better disclosure.",
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      "text": "With enhanced financial disclosures, public markets investors may be better able to value OSPN’s Software segment in an SOTP framework, which in turn could help avert the need for any strategic action on the legacy Hardware segment",
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      "text": "We believe an SOTP valuation approach can work in the public markets – if investors are provided with sufficient financial disclosures. Given Hardware’s ongoing and negative optical impact to consolidated growth and margins, we believe the lack of segment-level profitability disclosures may be preventing investors from utilizing a full and fair valuation multiple, and instead assigning a discounted multiple, for OneSpan’s Software business (in an SOTP analysis) as its long-term economics are unclear. Software is not only growing significantly faster than Hardware (which is declining), it carries ~30-40 points higher gross margins per our estimates. The Company has not provided gross and operating margin disclosures for Software, previously citing the burden of a $500,000 audit expense for goodwill analysis – this is truly unacceptable",
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      "text": "We believe the high-growth and high-margin profile of OneSpan’s Software business remains underappreciated given the lack of profit disclosures, thus contributing to OSPN’s discounted valuation",
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      "text": "Source: SEC Filings, Legion Partners’ Estimates and Meetings with OSPN Management",
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      "text": "Better Financial Clarity Could Avert Need for Strategic Action",
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