Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - AXESSTEL INC | d356441d8k.htm |
| EX-99.1 - PRESS RELEASE - AXESSTEL INC | d356441dex991.htm |
 Exhibit 99.2
Axesstel, Inc.
AXST
13
Annual B. Riley & Co. Investor Conference
May 21
, 2012
th
st
©
2012 Axesstel, Inc. |
 2
Safe Harbor Statement
©
2012 Axesstel, Inc.
This
presentation
contains
forward
looking
statements.
These
statements
relate
to
future
events
or
our
future
financial
performance
and
involve
known
and
unknown
risks,
uncertainties
and
other
factors
that
may
cause
our
actual
results,
levels
of
activity,
performance
or
achievements
to
differ
materially
from
any
future
results,
levels
of
activity,
performance
or
achievements
expressed
or
implied
by
these
forward-looking
statements.
You
can
identify
forward-looking
statements
by
terminology
such
as
“may,”
“will,”
“should,”
“expects,”
“intends,”
“plans,”
“anticipates,”
“believes,”
“estimates,”
“predicts,”
“potential,”
“continues”
or
the
negative
of
these
terms
or
other
comparable
terminology.
These
risks
and
other
factors
include
those
listed
under
“Risk
Factors”
and
elsewhere
in
the
company's
prospectus.
Although
we
believe
that
the
expectations
reflected
in
the
forward-looking
statements
are
reasonable,
we
cannot
guarantee
future
results,
levels
of
activity,
performance
or
achievements.
You
should
not
place
undue
reliance
on
any
forward-looking
statements
that
reflect
our
management’s
view
only
as
of
the
date
of
this
presentation
and
prospectus.
We
will
not
update
any
forward-looking
statements
to
reflect
events
or
circumstances
that
occur
after
the
date
on
which
such
statement
is
made. |
 ©
2012 Axesstel, Inc.
3
Providing fixed wireless voice and broadband access
solutions for the worldwide telecommunications market
Axesstel At A Glance
•
Quoted as AXST on the OTC Markets’
OTCQB
•
Founded in 2000 –
In business 12 years
•
Completed business transition in mid-2011 |
 ©
2012 Axesstel, Inc.
4
Voice and Data Cord Cutting Pure Play
“Cutting the Cord” |
 ©
2012 Axesstel, Inc.
AXST Transformed!
5
•
Spent
past
two
years
transforming
the
company
–
completed
in
mid-
2011
•
Reorganized company to cut OpEx from $23-$26M in 2007/2008 to
$10M in 2011
•
Repositioned ODM & manufacturing to China
•
Launched key new products including:
•
Reported three consecutive profitable quarters: 3Q11, 4Q11 & 1Q12
•
Expect to achieve consistent quarterly profitability and year-over-year
revenue growth in 2012
Wire-line replacement terminals into the US markets (Sprint &
Verizon) MV600 series gateway product into Europe featuring 4G data speeds
and VoIP voice application
HSPA gateway devices into MEA |
 ©
2012 Axesstel, Inc.
Product Portfolio
6
3G & 4G Gateways
Wire-line Replacement
Terminals
Fixed Wireless
Phones |
 7
•
Only company focused exclusively on cord cutting opportunity
–
Focused on both voice and data products
–
Overall growth trend moving toward wireless solutions and fixed wire-line
networks will become less profitable as more people cut the cord
–
Regulatory regime is moving in favor of wireless with many governments
removing requirements to offer fixed lines to everyone
•
Strong relationships with current customers
–
Customized products for specific customer needs
–
Majority of revenue comes from sole source customers
•
Barrier to entry: Testing and design process can take 3-15 months
•
Recognized leader in CDMA 450MHz telecom gateway products
–
Ideal for rural areas
–
Low frequency travels farther and lowers network investment to operators
Competitive Advantages
©
2012 Axesstel, Inc. |
 ©
2012 Axesstel, Inc.
Sprint Agreement
Sprint Phone Connect: Sole source supplier of voice terminal
•
Sprint’s “Cut the Cord”
initiative
•
$19.99/month unlimited local and long-distance service
Sprint Agreement
•
Began joint development in 2010
•
Began shipping in 3Q11
•
Initial rollout to Sprint store locations with further rollout planed
to “big box”
stores (Radio Shack, Best Buy)
•
Recognized $14.4M in 2011 revenue from Sprint
8
Sprint
®
Phone
Connect |
 ©
2012 Axesstel, Inc.
Tomorrow’s Opportunities
•
Delivering next generation wire-line replacement devices for Sprint in second
half of 2012 •
Continuing to roll-out our HSPA and EVDO gateway devices into MEA
•
Penetrating European market with 4G gateway product (EV-DO Rev B) and
leveraging our first in market combination of Rev. B gateway device with
VoIP (QoS) functionality for both voice and broadband data service
•
Commencing development and expect to launch in second half of 2012:
–
Specialized dual-mode (GSM & CDMA) gateway device for Europe market
–
Security alert device for North America market
9 |
 ©
2012 Axesstel, Inc.
Macro Themes/Long-Term Trends
•
450
MHz
expansion
into
Latin
America;
key
spectrum
auction
expected
in
June
for Brazil market
•
Continued expansion of wire-line replacement roll-out and migration to
“all-in” device with 4G data speeds, combining voice, data,
security and potential “smart-home”
applications
•
Roll out of security alert devices to US and European operators,
adding
diversification to existing product lines
•
Expansion of rural telecom operators to roll-out 3G and 4G technology
benefiting from Rural Broadband Stimulus Plan
•
Selective LTE opportunities for Tier 1 and Tier 2 USA operators
•
Selective fixed wireless phone opportunities
10 |
 ©
2012 Axesstel, Inc.
11
Year Ended
12/31/11
Year Ended
12/31/10
Year Ended
12/31/09
Year Ended
12/31/08
Revenues
$ 54.1
$
45.4
$ 50.8
$ 109.6
Gross profits
12.9
7.5
8.3
26.3 Gross
margins 24%
17%
16%
24%
Operating expense
10.3
12.6
17.1
23.1
Operating income
(loss)
2.6
(5.1)
(8.8)
3.2
Net income (loss)
1.1
(6.3)
(10.1)
1.4
EPS (loss)
$ 0.05
$ (0.27)
$ (0.43)
$ 0.06
Ave. diluted shares
23.7
23.6
23.4
23.6
Annual Operating Results
$ in millions |
 ©
2012 Axesstel, Inc.
12
Quarter Ended
3/31/12
Quarter Ended
3/31/11
Revenues
$ 12.0
$ 12.6
Gross profits
3.2
2.5
Gross margins
26%
20%
Operating expense
2.3
2.8
Operating income
(loss)
0.9
(0.2)
Net income (loss)
0.5
(0.5)
EPS (loss)
$ 0.02
$ (0.02)
Ave. diluted shares
25.6
23.7
Quarterly Operating Results
$ in millions |
 ©
2012 Axesstel, Inc.
13
Balance Sheet Highlights
3/31/12
Cash and cash equivalents
$
1,941,000 Accounts
receivable $ 9,637,000
Total current assets
$ 12,855,000
Total assets
$ 13,019,000
Accounts payable
$ 12,757,000
Bank financings
$ 6,696,000
Total liabilities
$ 24,167,000
Stockholders
’
deficit
$
(11,148,000)
Total liabilities & stockholders’
deficit
$ 13,019,000 |
 ©
2012 Axesstel, Inc.
14
•
Delivered in support of Sprint Phone Connect launch in 2011, and
expect to release next generation of this product in 2012
•
Recognized leader in CDMA 450MHz telecom gateway products
•
Planned rollout of several new products in 2012
•
Successfully penetrated five key carriers, both domestically and
internationally with potential for additional key customers
Investor Highlights |
 ©
2012 Axesstel, Inc.
15
•
Major turnaround completed
•
Outstanding shares of 23.7M largely unchanged since 2008
•
Management has purchased 1M+ shares since May 2011
•
Significant operating leverage to grow EPS
–
Reduced OPEX from $23M (2008) to $10M (2011)
–
Expect to reduce cost of capital in 2012
•
Anticipate continuing profitability and year-over-year revenue growth
•
Our Goal: return to a $100+ million revenue company
Committed To The Future |
 ©
2012 Axesstel, Inc.
16
Target Model
Revenues
$100.0
Gross Margins as % of Revenue
Low to mid-
20% range
Operating Expenses as % of Revenue
10%-11%
Operating Income
$10.0+
Target Operating Model
$ in millions |
 ©
2012 Axesstel, Inc.
17
Thank You |