Attached files
| file | filename |
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| 8-K - FORM 8-K - INTEGRAL SYSTEMS INC /MD/ | d8k.htm |
 Winter
2009 Exhibit 99.1 |
 2 • This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act. Such forward- looking statements include, but are not necessarily limited to, our anticipated financial performance, business prospects, technological developments, new products, research and development activities and similar statements concerning anticipated future events and expectations that are not historical facts. • These forward-looking statements are based on current information and expectations. We
caution you that these statements are not guarantees of future performance and are subject to numerous risks and uncertainties, including our reliance on contracts and subcontracts funded by the U.S. government, intense competition in the ground systems industry, the competitive bidding process to which our government and commercial contracts are subject, our dependence on the satellite industry for most of our revenues,
rapid technological changes in the satellite industry, our acquisition strategy and other
risks and uncertainties noted in our Securities and Exchange Commission filings,
including our Annual Report on Form 10-K for the year ended September 30, 2008, and subsequent filings. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. INTEGRAL SYSTEMS SAFE HARBOR |
 3 INTEGRAL SYSTEMS OUR VISION To be the market leader in providing integrated solutions for satellite and terrestrial networks |
 •
NasdaqGS: ISYS • Founded: 1982 • Est. FY2009 Sales: $164.0 million • Est. FY2009 Earnings: $2.9 million/$0.15 per diluted share • Employees: 600 employees - 13 Locations in five countries U.S. SBA Region III Contractor of the Year, 2009 Washington Post Top 200 Companies, 2009 Forbes Top 200 Small Companies in America, 2008 INTEGRAL SYSTEMS AT A GLANCE |
 5 World Class Systems Engineering Best-In-Class Commercial Product-Based Solutions Back to Basics • Disciplined Investment in R&D and B&P • Reduction of Indirect and Unallowable Costs • Improved Communications • Improved Forecasting • Renewed Focus on Core Business Improved Performance • Emphasis on Backlog Growth & Gross Margin • Reasonable Organic Growth • Strategic Acquisitions • Focus on Next Nearest Market Opportunities — Other Military Services — Managed Services — Network: Design, Installation, Operation INTEGRAL SYSTEMS BUSINESS APPROACH |
 6 Our Commitment to Customer Service… Integral Systems Has Supported 250+ Satellite Missions INTEGRAL SYSTEMS CUSTOMER COMMITMENT |
       7 Military & Intelligence Civil & Commercial Products Services • US Air Force • DISA • Intelligence • NASA • NOAA • Commercial Operators • International • U.S. Military • Satellite Operators • Network Operators • Commercial and government satellite operators • Space Situational Awareness • U.S. Army, U.S. Navy • NATO • Antenna/RF systems integration • Leverage footprint • DHS • Military Test Range • Interference detection, characterization, and geolocation • Satellite communications managed services • Technical support INTEGRAL SYSTEMS ALIGNED OPERATIONS |
 8 INTEGRAL SYSTEMS GLOBAL OPERATIONS Current presence Future Services Expansion (Teleports) Future Network Operation Center (Services) AUSTRALIA BRAZIL SINGAPORE UAE HAWAII NOC COLUMBIA NOC TOULOUSE UK NOC C. SPRINGS |
 9 Services Offered • Network Operations Management — Network planning, resource allocation, and link optimization — Satellite transponder, network, and link Quality of Service monitoring — RF interference detection and geolocation — Service Level Agreement (SLA) validation • Technical Services & Sustainment — Remote monitoring and control of equipment at teleport & customer ground terminal facilities — Tech refresh and sustainment — Expert operations and maintenance services • Systems Integration — Low cost turn-key systems integration capabilities Rollout Strategy 1. Initial Infrastructure from current ISYS products — satID from RT Logic (geolocation) — Monics from SAT Corp. (signal monitoring) — Compass from Newpoint (network management) — Antennas purchased COTS — COTS work stations and servers 2. Global Services offered initially to existing customer through existing sales channels 3. Grow regionally as customer base evolves — Leverage current international sales channels INTEGRAL SYSTEMS SERVICE SOLUTIONS |
 10 • Interference Detection & Geolocation • Emerging Niche Satellite Operators • Expanded Military Footprint • Space Situational Awareness • Network Operations – Remote site monitoring – Data fusion – Payload signal processing • Managed Services – Outsourced operations management and systems monitoring – Service-level agreement/Quality of Service (QoS) management INTEGRAL SYSTEMS GROWTH STRATEGY |
 11 Recent Contract Awards: •Restructured U.S. Air Force contract for
rapid attack, identification, detection (RAIDRS): $77.0M ceiling •Command and Control System – Consolidated (CCS-C): $7.5M Extended through 2011 •Hill Air Force Base: $4M new
contract Key Updates: • Opened Integral Systems Europe UK in FY2009 • Expect International to represent over 10% of total revenue in FY10 • Announced 6 new/expanded contracts in Asia in FY09 totaling ~$15M *BASED UPON FY 2009 RESULTS SALES BY SEGMENT* SALES GEOGRAPHY* INTEGRAL SYSTEMS DIVERSIFIED GLOBAL PERSPECTIVE |
 12 FINANCIAL OVERVIEW |
 13 Back to Basics Management Approach • Cost-cutting measures implemented • Aligned for growth – capitalize on installed base • Completed infrastructure investments Management Enhancement • Appointment of Paul G. Casner as President & CEO • Appointment of Maj Gen (Ret.) H. Marshal Ward as COO Business Developments • Major Air Force Contracts extended through 2011/2012 - Over $50Min new backlog • International Expansion — Approx. $15.0M in Asia in FY09 — Significant European contracts with CNES, Thales, NATO FY10 GUIDANCE Revenue $170M - $174M Gross Profit Margin 35% - 37% EBITDA $20M Bookings $200M Cash Flow from Operations $25M - $30M INTEGRAL SYSTEMS FY 2010 OUTLOOK & RECENT DEVELOPMENTS |
 14 REVENUE EBITDA & MARGIN GROSS PROFIT MARGIN CAPITAL EXPENDITURES INTEGRAL SYSTEMS DIVERSIFIED GLOBAL PERSPECTIVE |
 15 Key Opportunities FY10 – FY12 • Space Network Ground Segment Sustainment • GPS Operational Control Segment (OCX) Phase B • Restricted Program, National Reconnaissance Office (NRO) • RAIDRS ECP 10 • Space Situational Awareness • NATO Expansion • Managed Services • Antenna and Ground System Integration (ISE UK) INTEGRAL SYSTEMS BOOKINGS, BACKLOG, AND PIPELINE |
 16 INTEGRAL SYSTEMS SUMMARY |
 17 BACK UP INTEGRAL SYSTEMS |
 18 USE OF NON-GAAP FINANCIAL MEASURES INTEGRAL SYSTEMS EBITDA (earnings before interest, taxes, depreciation and amortization) is a non-GAAP financial
measure used by management to evaluate operating performance. Management believes
that the presentation of EBITDA helps management and investors to make a meaningful
comparison between our operating results and those of other companies, as well as
providing a consistent comparison of our relative historical financial performance.
The presentation of this non-GAAP financial measure is not to be considered in
isolation or as a substitute for our financial results prepared in accordance with GAAP. Below are reconciliations of fiscal years 2007 - 2012 net income to EBITDA: Fiscal Year Ended September 25, 2009 2007 2008 2009 2010(E) 2011(E) 2012(E) ($ millions) Net Income $ 12.8 $ 18.2 $ 1.1 $ 8.0 $ 13.5 $ 16.0 Other Income (Expense), net (2.2) (0.3) 0.1 0.4 0.6 0.8 Provision for Income Taxes 6.3 7.1 (1.0) 4.5 5.5 6.2 Income From Operations $ 16.9 $ 25.0 $ 0.1 $ 12.9 $ 19.6 $ 23.0 Non-Cash Stock Compensation 0.9 1.1 3.5 3.1 3.2 3.5 Depreciation and Amortization 3.0 2.6 4.3 5.0 5.2 5.5 EBITDA $ 20.8 $ 28.7 $ 8.0 $ 21.0 $ 28.0 $ 32.0 |