Profile: Tyler Technologies, Inc. (TYL)

Tyler Technologies, Inc. is a provider of integrated information management solutions and services for local governments. It offers a line of software solutions and services to address the information technology (IT) needs of every area of operation for cities, counties, schools and other local government entities. It also provide subscription-based services, such as application service provider arrangements and other hosting services, as well as property appraisal outsourcing services for taxing jurisdictions. The Company provides professional IT services to its customers, including software and hardware installation, data conversion, and training and, at times, product modifications. Its software solutions and services are grouped in four areas: Financial Management and Education, Courts and Justice, Property Appraisal and Tax, and Public Records and Content Management. During the year ended December 31, 2008, the Company acquired School Information Systems, Inc., VersaTrans Solutions Inc. and Olympia Computing Company, Inc. In March 2009, the Company completed the acquisition of PulseMark, LLC, which provides specialized information warehouse solutions for the K-12 school and local government markets. In January 2010, the Company acquired completed the asset acquisition of Wiznet, Inc. of Delray Beach, Florida.

In April 2009, the Company acquired Assessment Evaluation Services, Inc. (AES) of San Diego, California. AES develops integrated property appraisal solutions and specializes in applications that deal with the provisions of the California Revenue and Taxation Code.

Financial Management and Education

Financial Management and Education solutions are enterprise resource planning (ERP) systems for local governments, which integrate information across all facets of a client organization. It includes modular fund accounting systems tailored to meet the needs of government agency or not-for-profit entity. It include modules for general ledger, budget preparation, fixed assets, requisitions, purchase orders, bid management, accounts payable, contract management, accounts receivable, investment management, inventory control, project and grant accounting, work orders, job costing, GASB 34 reporting, payroll and human resources. The Company also offers specialized products that automate numerous city functions, including municipal courts, parking tickets, equipment and project costing, animal licenses, business licenses, permits and inspections, code enforcement, citizen complaint tracking, ambulance billing, fleet maintenance, and cemetery records management. It also offers student transportation solutions to manage school bus routing optimization, fleet management, field trips and other related functions and software applications to manage public sector pension funds.

Courts and Justice

The Company offers an integrated suite of judicial solutions with its Odyssey family of products. Its solutions help eliminate duplicate data entry, promote business procedures across the entire justice process. The Odyssey suite is designed to handle complex, multi-jurisdictional county or statewide implementations and also, suited to manage single county systems. Its unified court case management system is designed to automate the tracking and management of information involved in all case types, including criminal, traffic, civil, family, probate and juvenile courts. It also tracks the status of cases, processes fines and fees and generates the specialized judgment and sentencing documents, documents received by the court are scanned in the electronic case file and retrieved for viewing.

Property Appraisal and Tax

The Company provides systems and software that automate the appraisal and assessment of real and personal property, including record keeping, mass appraisal, inquiry and protest tracking, appraisal and tax roll generation, tax statement processing, and electronic state-level reporting. These systems are image- and video-enabled to facilitate the storage of and access to the many property-related documents. Other related tax applications are available for agencies that bill and collect taxes, including cities, counties, school tax offices, and special taxing and collection agencies. These systems support billing, collections, lock box operations, mortgage company electronic payments, and various reporting requirements.

Public Records and Content Management

The Company offers a number of specialized software applications designed to help county governments automate courthouse operations. It records, scans and indexes information for the many documents maintained at the courthouse, such as deeds, mortgages, liens, UCC financing statements and vital records (birth, death and marriage certificates). These applications include fully integrated imaging systems with batch and scan processing capabilities and fully integrated receipting and cashiering systems as well as Web-enabled public access.

Subscription-based services revenue primarily consists of revenues derived from application service provider arrangements and other hosted service offerings, software subscriptions and disaster recovery services. The Company provides a variety of professional IT services to customers who utilize its software products. The implementation process for a system includes planning, design, data conversion, set-up and testing. Following the implementation of its software systems, the Company provides software support services to assist its customers in operating the systems and to periodically update the software. Support is provided over the phone to customers through help desks. The appraisal outsourcing services include the physical inspection of commercial and residential properties, data collection and processing, sophisticated computer analyses for property valuation, preparation of tax rolls, community education regarding the assessment process, and arbitration between taxpayers and the assessing jurisdiction.

The Company competes with Oracle Corporation, Lawson Software, Inc., SAP AG, Affiliated Computer Services, Inc., SunGard Data Systems, Inc., New World Systems, Constellation Software, Inc. and Manatron, Inc., and BearingPoint, Inc.