High Performance Embedded High Performance Embedded Systems Systems IT Integration Solutions IT Integration Solutions Investor Presentation 1 February, 2011
CSP Inc. The Company wishes to take advantage of the ‘safe harbor’ provisions of the Private Securities Litigation Reform Act of 1995 with respect to statements that may be deemed to be forward- looking statements under the Act. Such forward-looking l ki d h A S h f d l ki statements may include, but are not limited to, statements regarding the future growth of the CSP Inc., and the success of the Company’s and its subsidiary’s products and services The the Company s and its subsidiary s products and services. The Company cautions that numerous factors could cause actual results to differ materially from any forward-looking statements made by the Company. Please refer to the section on forward- made by the Company. Please refer to the section on forward looking statements included in the Company’s filings with the Securities and Exchange Commission. 2
Corporate Overview • Diversified multinational technology company founded in 1968: • Leading supplier of cutting edge IT Integration solutions and rugged high performance cluster computer systems. – 2 Segments 2 Segments • Service and Systems Integration • Systems – 139 People • • Businesses Include: Businesses Include: MultiComputer MODCOMP 9% 9% 91% 91% 3
Investment Highlights • Differentiated Systems Integration business model with ability to grow and increase market share when the market rebounds. • Open systems technology based high performance cluster systems with the ability to meet the unique requirements of military applications. • Financial Strength: Strong balance sheet - no debt • Experienced Management with proven acquisition integration success. • Positioned to grow profitably. g p y 4
CSP Inc. 95.0 95 0 100 83.4 76.8 $ Millions 80 60 60 Revenue - $ 40 22.1 20 0 FY 2008 FY 2009 FY 2010 FY 2011 Q1 1.25 1.00 00 d hare - Diluted 0.75 0.50 $0.25 $0.11 0.25 arnings per Sh 0 00 0.00 ($0.11) (0.25) 1 2 3 4 (0.50) (0.75) Ea (1.00) ($1.05) (1.25) 5
Strategy • Provide cutting edge integration solutions for complex IT d d l f l T environments. • Develop architecturally superior high performance cluster systems p y p g p y based on open systems technologies for military applications. • Leverage core competencies to extend key technologies to new growth markets like unified communications and “value added” growth markets like unified communications and value added cluster systems. • Attract a greater percentage of higher margin consulting, solutions and managed services business. d d i b i • Provide pipeline of innovative products and services to maintain strong customer relationships. g p • Seek opportunities for growth through acquisitions and strategic partners. 6
Partnerships Dense Clusters Systems Integration Services 7
MODCOMP A leading provider of solutions and services for complex IT environments that include storage and servers, network security, unified communications, unified computing and managed and consulting services. Network Cloud Compute Cloud 8
The Security Landscape Firewall Vulnerability Intrusion Patch Monitoring Scanning Detection Management Penetration tion Exterior trusion Detect External Access Int Anti-Virus 9
Network Operations Center for Managed Services • The NOC monitors key T e N C o o s ey elements of a customer’s network infrastructure on a 24x7x365 basis • Value proposition to customers is to “leverage the skill of a team of experts for less than the cost of one high- level employee” • Recurring revenue model 10
The Big IT Story: “New” IT Spending Source: IDC Directions 2007 11
MultiComputer Division A leading supplier of High Performance dense and rugged Cluster A leading supplier of High-Performance dense and rugged Cluster computing systems based on open systems technologies for military applications. Highlights Highlights – Excellent Customer references Sonar Systems – 40 years experience – Technology leadership in open systems software model Rugged Blades Systems 12
Defense Market • Environments – Air, Land and Sea Platforms – Extended Temperature, Humidity, Sand, Dust, Shock, Vibration and Corrosive Elements • Programs • Digital Signal Processing Applications – E2-D – Radar d – GASS – Sonar – HYDRA – C4ISR – SAPPS • Command, Control, Communications, Computers, Intelligence, – C4ISR/AJCN Surveillance and Reconnaissance – Raytheon • CSPI MultiComputer – Dense / High Performance Clusters g – Open – Linux / VxWorks – Commercial (VME), Rugged and Conduction Cooled Solutions • Preserve customer software investment • • E Engineering expertise needed to meet customer’s unique i i ti d d t t t ’ i requirements 13
The Challenges of Today’s Warfare 14
COTS Defense Market COTS in Defense Defense Electronics Market COTS $0.7 (Boards) $27.0 $3.0 $2 3 $2.3 (Systems) All amounts are in Billions of dollars Sources: Venture Development Corp. Embedded COTS in Military, Aerospace and Defense Study, 2008 COTS Journal October 2008 15
DoD program example: E-2D Advanced Hawkeye Revenue Stream $10.0 $70.0 $9.0 $60.0 $8.0 Millions) Millions) $50.0 $7.0 nual Revenue (in $ M ative Revenue (in $ $6.0 $40.0 Pilot $5.0 LRIP Production $30.0 EDM and $4.0 $3 - 10M SD&D $3.0 $20.0 $3.5M $3.5M Cumula Ann $2.0 $10.0 $1.0 $- $- Y05 Y06 Y07 Y08 Y09 Y10 Y11 Y12 Y13 Y14 Y15 Y16 Y17 Y18 Y19 Y20 $1 5M $1.5M $2M $2M FY $4M $4M FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY Note: Revenue opportunity in 2012 and beyond is subject to DoD funding and schedule decisions 16
Financial Review - Strong Balance Sheet - Leverageable model 17
Annual Sales 95.0 100 83.4 76.8 80 illions enue - $ Mi 60 40 Reve 22.1 20 0 FY 2008 FY 2009 FY 2010 FY 2011 Q1 Fi Fiscal Year lY 18
Annual Earnings per Share (Diluted) 1 25 1.25 1.00 0.75 0.75 d e - Diluted 0.50 $0.25 0.25 $0.11 $0.11 gs per Share 0.00 ($0.11) (0.25) Earning (0.50) (0.75) (1.00) ($1.05) (1.25) FY 2008 FY 2009 FY 2010 FY 2011 Q1 FiscalYear Fiscal Year 19
Net Income (loss) 4.50 4.00 3.50 3.00 2.50 Millions 2.00 1.50 0.91 1.00 0.39 0.39 ncome - $ 0 50 0.50 0.00 (0.50) (0.41) (1.00) (1.50) (1 50) Net I (2.00) (2.50) (3.00) (3 80) (3.80) (3 50) (3.50) (4.00) FY 2008 FY 2009 FY 2010 FY 2011 Q1 Fiscal Year 20
Fiscal Year Ended September 30, 2010 Sales by Geography 71% Americas Europe Asia Asia 28% 1% 21
Fiscal Year Ended September 30, 2010 Sales by Segment & Gross Margin 91% Service and Systems Integration (GM @ 13%) Blended GM of 18 % Systems (GM @ 67%) 9% 22
Balance Sheet Highlights Dollars in Millions Dollars in Millions 9/30/2009 9/30/2009 9/30/2010 9/30/2010 12/31/2010 12/31/2010 Assets Cash & Short Term Investments Cash & Short Term Investments $ $ 18 9 18.9 $ $ 15.5 15 5 $ $ 16.0 16 0 Accounts Receivable $ 7.4 $ 12.2 $ 11.5 Inventory $ 5.9 $ 5.9 $ 6.2 Other current assets $ 3.7 $ 2.4 $ 2.4 Current Assets C A $ $ 35 9 35.9 $ $ 36.0 36 0 $ $ 36.1 36 1 Long-term assets $ 4.6 $ 5.4 $ 5.4 Total Assets $ 40.5 $ 41.4 $ 41.5 Liabilities & Shareholders' Equity Current Liabilities $ 13.2 $ 13.9 $ 13.9 Pensions & Other Long Term Liabilities $ 8.6 $ 9.0 $ 8.9 Shareholders' equity $ 18.7 $ 18.5 $ 18.7 Total Liabilities & Shareholders' Equity $ 40.5 $ 41.4 $ 41.5 Working Capital $ 22.7 $ 22.1 $ 22.2 23
Goals Increase Market Share – MODCOMP • Expand “solution” offerings to growth markets like network security management and unified like network security management and unified communications • Increase sales force and forge new supplier partnerships to leverage success in infrastructure solutions • Increase higher margin consulting services and leverage NOC to expand managed services – CSPI MultiComputer CSPI MultiComputer • Win a Deployment phase from a current program • Ramp up sales of FastCluster 4000 SERIES and OpenVPX 3000 SERIES product lines. – Evaluate acquisition opportunities 24
Investment Highlights • Differentiated Systems Integration business model with ability to grow and increase market share when the market rebounds. • Open systems technology based high performance cluster systems with the ability to meet the unique requirements of military applications. • Financial Strength: Strong balance sheet - no debt • Experienced Management with proven acquisition integration success. • Positioned to grow profitably g p y 25
Recommend
More recommend
