Csp Inc. · NASDAQ:CSPI
Csp — Investor Presentation (February 2010)
24 slides from Csp's investor presentation, Feb 9, 2010
Slide 1: High Performance Embedded Systems, IT Integration Solutions Investor Presentation
High Performance Embedded Systems Systems IT Integration Solutions Investor Presentation 1 February 9, 2010
Slide 2: Forward-Looking Statements Safe Harbor
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 statements may include, but are not limited to, st
Slide 3: Corporate Overview
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 • Service and Systems Integration • Systems – 150 People • Businesses Include: MultiComput
Slide 4: Investment Highlights
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 S
Slide 5: Revenue and Earnings per Share
CSP Inc. 100 94.0 83.4 Revenue - $ Millions 76.8 80 60 40 20 0 FY 2007 FY 2008 FY 2009 1.25 $1.03 1.00 Earnings per Share - Diluted 0.75 0.50 0.25 ($0.11) ($1.05) 0.00 1 2 3 (0.25) (0.50) (0.75) (1.00) (1.25) 5
Slide 6: Strategy
Strategy • Provide cutting edge integration solutions for complex IT environments. • Develop architecturally superior high performance cluster systems based on open systems technologies for military applications. • Leverage core competencies to extend key technologies to new growth markets like unif
Slide 7: Dense Clusters, Systems Integration Services, Partnerships
Partnerships Dense Clusters Systems Integration Services 7
Slide 8: MODCOMP
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
Slide 9: The Security Landscape
The Security Landscape Firewall Vulnerability Intrusion Patch Monitoring Scanning Detection Management Intrusion Detection Exterior Penetration External Access Anti-Virus 9
Slide 10: Network Operations Center for Managed Services
Network Operations Center for Managed Services • The NOC monitors key 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
Slide 11: The Big IT Story: New IT Spending
The Big IT Story: “New” IT Spending Source: IDC Directions 2007 11
Slide 12: MultiComputer Division
MultiComputer Division A leading supplier of High-Performance dense and rugged Cluster computing systems based on open systems technologies for military applications. Highlights – Excellent Customer references Sonar Systems – 40 years experience – Technology leadership in open systems software model
Slide 13: Defense Market
Defense Market • Environments – Air, Land and Sea Platforms – Extended Temperature, Humidity, Sand, Dust, Shock, Vibration and Corrosive Elements • Digital Signal Processing Applications • Programs – Radar – E2-D – Sonar – GASS – C4ISR – HYDRA • Command, Control, Communications, Computers, Intellige
Slide 14: The Challenges of Today's Warfare
The Challenges of Today’s Warfare 14
Slide 15: COTS Defense Market
COTS Defense Market COTS in Defense Defense Electronics Market COTS $0.7 (Boards) $27.0 $3.0 $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
Slide 16: Financial Review
Financial Review - Strong Balance Sheet - Leverageable model 16
Slide 17: Annual Sales
Annual Sales 100 94.0 83.4 80 76.8 Revenue - $ Millions 60 40 20 0 FY 2007 FY 2008 FY 2009 Fiscal Year 17
Slide 18: Annual Earnings per Share (Diluted)
Annual Earnings per Share (Diluted) 1.25 $1.03 1.00 0.75 Earnings per Share - Diluted 0.50 0.25 ($0.11) ($1.05) 0.00 (0.25) (0.50) (0.75) (1.00) (1.25) FY 2007 FY 2008 FY 2009 Fiscal Year 18
Slide 19: Net Income (Loss)
Net Income (loss) 4.50 4.00 4.00 3.50 3.00 2.50 Net Income - $ Millions 2.00 1.50 1.00 0.50 (0.41) (3.80) 0.00 (0.50) (1.00) (1.50) (2.00) (2.50) (3.00) (3.50) (4.00) FY 2007 FY 2008 FY 2009 Fiscal Year 19
Slide 20: Fiscal Year 2009 Sales by Geography
Fiscal Year 2009 Sales by Geography 64% Americas Europe Asia 33% 3% 20
Slide 21: Fiscal Year 2009 Sales by Segment & Gross Margin
Fiscal Year 2009 Sales by Segment & Gross Margin 90% Service and Systems Integration (GM @ 14%) Blended GM of 18 % Systems (GM @ 59%) 10% 21
Slide 22: Balance Sheet Highlights
Balance Sheet Highlights Dollars in Millions 9/30/2008 9/30/2009 Assets Cash & Short Term Investments $ 18.5 $ 18.9 Accounts Receivable $ 11.5 $ 7.4 Inventory $ 8.1 $ 5.9 Other current assets $ 3.2 $ 3.7 Current Assets $ 41.3 $ 35.9 Long-term assets $ 8.7 $ 4.6 Total Assets $ 50.0 $ 40.5 Liabilities
Slide 23: Goals: Increase Market Share
Goals Increase Market Share – MODCOMP • Expand “solution” offerings to growth markets like network security management and application delivery • Increase sales force and forge new supplier partnerships to leverage success in infrastructure solutions • Increase higher margin consulting services and
Slide 24: Investment Highlights
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 S