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| 8-K - FORM 8-K - INTEGRAL SYSTEMS INC /MD/ | d8k.htm |
 PAUL CASNER,
CHIEF EXECUTIVE OFFICER ANNUAL SHAREHOLDER MEETING
FEBRUARY 16, 2011
Exhibit 99.1 |
 2
INTEGRAL SYSTEMS
SAFE HARBOR
•
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 24, 2010, 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 FY2010 FINANCIAL HIGHLIGHTS |
 4
INTEGRAL SYSTEMS
FY2010 OPERATIONS HIGHLIGHTS |
 5
INTEGRAL SYSTEMS
FY2010 CHALLENGES |
 6
SATCOM Solid State Power Amplifiers (SSPA)
•
Smaller, Lighter, More Power Efficient
•
Ku, Ka -Band 25W –
100W
•
Travelling Wave Tube Amplifier (TWTA) Replacement
Space Situational Awareness & Cyber Security
•
RF Interference, Detection, Geolocation & Cataloging
•
Cyber-Enabled Products
•
Space Situational Awareness Architecture
INTEGRAL SYSTEMS
FUTURE GROWTH ENGINES
Unmanned Aerial Systems (UAS)
•
Positive Data Link Technology
•
UAS Modems & Communication Systems
•
UAS Flight & Ground RF Interference (RFI) Detection &
Countermeasure Systems |
 7
Intelligence Programs
•
Satellite
Command
&Control
(Market
Leader
for
Commercial
Geo
Operations)
•
SATCOM RFI Detection, Characterization, & Geolocation
•
SATCOM Data Link Information Assurance & Cyber Security
Range Operations
•
Modular, Next-generation Architecture to Support Move to All IP-
based System
•
Products and System-level Solutions Leveraging Full Product Line
and In-house System Integration Capabilities
INTEGRAL SYSTEMS
FUTURE GROWTH ENGINES
Network Operations Services
•
Global Quality of Service, RFI Detection & Geolocation
Services for
Future COMSATCOM Services Acquisition (FCSA)
•
RFI, Geolocation, & Network Operations Outsourcing for SATCOM
Network Providers
•
SATCOM Data Link Information Assurance & Cyber Security |
  8
Recent Developments
•
Announced the Company is considering strategic
alternatives to enhance shareholder value
–
Stone Key Partners LLC retained as financial advisor.
•
Eliminated Excess Facilities Expense
–
Sublease of 2/3 of Columbia, MD Facility (2/8/11)
Expected to Generate $2.2M in Cash/Year
Reduced SG&A Expense by $2.2M/Year
–
Operations Return to Remaining Lanham, MD Facility
Reverse $1.9M of Prior Lease Loss Reserve in Q2
FY11
–
Sublease of Bldg 5000 in Lanham, MD (9/24/10)
Anticipate Cash Generation of ~$1M over 5 Years
–
Right-Size Staffing Levels
–
Reduce Reliance on Consulting Support
INTEGRAL SYSTEMS
RECENT DEVELOPMENTS
Recent Contract & Product
Announcements
•
RT Logic Reports Strong
Channel Simulator Sales
and Interest (2/15/11)
•
Raptor X-band Ultra Small
Aperture Terminal Receives
Wideband Global SATCOM
Certification (2/7/11)
•
$13.7M CCS-C Contract
Modification (1/31/11)
•
Introduced Ultra-Compact
& Efficient 100 Watt Ku-
band Solid State Power
Amplifier (SSPA) (1/18/11)
•
Successful Factory
Acceptance Test for RAIDRS
Block 10 (1/5/11)
•
$10M IDIQ to Modernize
SATCOM Network for USCG
(1/4/11)
Reduced Management Layer
In Progress: |
 9
INTEGRAL SYSTEMS
SUMMARY |
 |
 11
USE OF NON-GAAP FINANCIAL MEASURES
EBITDA (earnings before interest, taxes, depreciation and amortization) is a non-GAAP
financial measure used by management to evaluate operating performance. Management
believes that the presentation of EBITDA helps management and investors to make a
meaningful comparison between our operating results and those of other companies, as well
as providing a consistent comparison of our relative historical financial
performance. The presentation of this non-GAAP financial measure is not to be
considered in isolation or as a substitute for our financial results prepared in
accordance with GAAP. Below is a reconciliation for the first three quarters of fiscal
years 2010 and 2009 net income to EBITDA:
($ millions)
Quarter
Ended
Quarter
Ended
Quarter
Ended
Quarter
Ended
Quarter
Ended
Quarter
Ended
Quarter
Ended
Quarter
Ended
25-Dec-2009
26-Mar-2010
25-Jun-2010
24-Aug-2010
26-Dec-2008
27-Mar-2009
26-Jun-2009
25-Sep-2009
Q1 2010
Q2 2010
Q3 2010
Q4 2010
Fiscal Year
2010
Q1 2009
Q2 2009
Q3 2009
Q4 2009
Fiscal Year
2009
Net Income (Loss)
$ 1.2
$
0.1 $
(3.8)
$ 0.1
$ (2.4)
$ 1.0
$ 2.7
$ (1.5)
$ (1.1)
$ 1.1
Other(Income) Expense
$ 0.2
$ (0.1)
$ 0.3
$
0.8 $ 1.2
$
0.0
$
0.0 $ (0.1)
$
0.0 $ (0.1) Provision
for Income Taxes (Benefit)
$ 0.6
$
0.3 $
(1.6)
$ 0.4
$ (0.3)
$ 0.3
$ 1.5
$ (2.4)
$ (0.4)
$ (1.0)
Income (Loss) from Operations
$ 2.0
$
0.3 $
(5.1)
$ 1.3
$ (1.5)
$ 1.3
$ 4.2
$ (3.8)
$ (1.5)
$ 0.2
Non-Cash Stock Compensation
$ 0.6
$
0.6
$ 0.9
$
0.5 $ 2.6
$ 1.0
$ 0.6
$ 1.0
$ 0.9
$ 3.5
Depreciation & Amortization
$ 1.4
$
1.2
$ 2.4
$
2.1 $ 7.1
$ 0.6
$ 1.0
$ 1.3
$ 1.4
$ 4.3
EBITDA
$ 4.0
$
2.2 $
(1.8)
$ 3.8
$ 8.2
$ 2.9
$ 5.8
$ (1.5)
$ 0.8
$ 8.0
INTEGRAL SYSTEMS |