Integrated Research Limited · ASX:IRI
Integrated Research — FY2007 Earnings Presentation
13 slides from Integrated Research's earnings presentation, August 2007
Slide 1: Integrated Research Limited FY2007 financial results
Integrated Research Limited - FY2007 financial results ABN: 76 003 588 449 August 2007 Precise performance monitoring for business-critical systems
Slide 2: 2007 Full year results
2007 Full year results 30 June 2007 30 June 2006 % change A$000’s A$000’s Licence fees 19,517 18,633 5% Maintenance fees 15,856 15,467 3% Other 1,004 423 137% Total revenue 36,377 34,523 5% R&D expenses 6,369 6,687 (5%) Gross R&D spending 7,831 7,348 7% SG&A expenses 23,026 20,279 14% Interest Incom
Slide 3: Balance sheet
Balance sheet Key balance sheet items 30 June 2007 30 June 2006 A$000’s A$000’s Cash at bank 13,286 10,736 Receivables 11,301 13,615 Development cap. 11,365 9,567 Deferred Revenue 10,279 10,163 Net assets 24,513 23,208 Precise performance monitoring for business-critical systems
Slide 4: Gross Revenue (billings) by Segment
Gross Revenue (billings) by Segment 30 June 2007 30 June 2006 % change $000’s $000’s By Geographic region: Americas ($US) 17,329 15,363 13% Europe (GBP) 2,836 3,504 (19%) Asia Pacific ($A) 8,134 5,961 36% Total ($A) 37,099 34,868 6% By Product Line ($A): NonStop 25,816 26,065 (1%) IP Telephony 7,807
Slide 5: Gross Revenue (billings) by Segment - USD
Gross Revenue (billings) by Segment - USD 30 June 2007 30 June 2006 % change $US 000’s $US 000’s By Product Type: New Licence 15,617 13,898 12% Maintenance 13,610 12,172 12% Total 29,227 26,070 12% By Product Line: NonStop 20,273 19,502 4% IP Telephony 6,196 3,230 92% WUL 2,758 3,338 (17%) Total 29,
Slide 6: Review of operations
Review of operations • Regional sales: • Europe down 19%, US up 13%, AsiaPac up 36% • Improved consistency of IP telephony revenues • 92% growth in real terms • Improved channel reach • Growth in repeat business • Strong recurring revenue (Maintenance) growth: • Maintenance renewals • IPT maintenanc
Slide 7: IP Telephony (VoIP)
IP Telephony (VoIP) • Prognosis now managing approx. 1 million endpoints: • Nearest 3rd party vendor is 425,000 • Further accelerate leadership position: • Additional market coverage (Direct, Channel, OEM) • More products increases addressable market • Market continues to offer excellent growth oppo
Slide 8: Sales by region - FY 2003 – 2007
Sales by region - FY 2003 – 2007 Americas – US$ millions UK/Europe – GBP millions Asia Pacific – US$ millions Americas Europe Asia Pacific 10.0 2.5 5.0 9.0 4.5 8.0 2.0 4.0 7.0 3.5 6.0 1.5 3.0 5.0 2.5 4.0 1.0 2.0 3.0 1.5 2.0 0.5 1.0 1.0 0.5 0.0 0.0 0.0 2003 2004 2005 2006 2007 2003 2004 2005 2006 200
Slide 9: 10-year revenue history
10-year revenue history 10-year revenue history – A$ millions Ten-year Revenue History - A$ Millions $40.0 $35.0 Other Revenue $30.0 Licence Fees Maintenance $25.0 $20.0 $15.0 $10.0 $5.0 $0.0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Precise performance monitoring for business-critical syste
Slide 10: 10-year revenue history
10-year revenue history 10-year revenue history – US$ millions 35 30 25 Other Revenue Licence Fees 20 Maintenance 15 10 5 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 FY2003 affected by Iraq war Precise performance monitoring for business-critical systems
Slide 11: Cashflow
Cashflow • Cashflow from Operating Activities was A$7.7m (2006: A$5.1m) • Capex for 2007 was A$2.1m (2006: A$0.2m) • A$1.8m on Sydney office fitout / relocation • Focus on improving receivable days outstanding paying off • DSO of 81 days (2006: 96 days) • % greater than 120 days of 11% (2006: 13%) •
Slide 12: R&D spending
R&D spending 30 June 2007 30 June 2006 % change A$000’s A$000’s Gross spending 7,831 7,348 7% Development – Cap. 5,454 4,657 17% Capitalised % 70% 63% Amortised 3,992 3,996 - Net Expense 6,369 6,687 (5%) % of revenue 18% 19% Precise performance monitoring for business-critical systems
Slide 13: Income Statement – Normalised for tax
Income Statement – Normalised for tax 30 June 2007 30 June 2006 $000’s $000’s Profit before tax 7,453 7,922 Tax expense – per accounts 2,020 947 Prior year adjustments: Belonging to prior year(s) (353) - FDT credit - 806 Belonging to prior year(s) - 140 Tax expense - normalised 1,667 1,893 Tax expen