Slide 1: Fiscal 2010 Unaudited First Quarter Results
Agilysys, Inc. (Nasdaq: AGYS) Fiscal 2010 Unaudited First Quarter Results August 5, 2009
Slide 2: Q1 review: highlights
Q1 review: highlights Demand for IT products, especially hardware, was significantly softer than expected Costs in quarter were consistent with our expectations - benefit of fiscal 2009 cost saving initiatives realized Cash increased by $14.8M to $51.0M as of June 30, 2009 primarily as a result of r
Slide 3: Q1 review: consolidated results
Q1 review: consolidated results Hardware revenue decreased 32%, services revenue decreased 26% and software declined 1% from prior year SG&A, excluding depr. & amort., decreased $11.2M Comp and benefits decreased $10.0M T&E decreased $1.0M Professional fees decreased $0.6M Bad debt expense decreased
Slide 4: Software and services revenue mix
Q1 review: revenue mix Q1FY09 Q2FY09 Q3FY09 Q4FY09 Q1FY10 Software & services as % of total 0.285 0.289 0.306 0.339 0.325 Software & services revenue 51.2 49.5 68.5 52.8 42.3 Software and Services Mix ($Mil.) Year-over-year, software revenue decreased 1% and services revenue decreased 26%
Slide 5: Hospitality (HSG)
Q1 review: Hospitality ("HSG") Revenue decreased 35% Demand in commercial gaming market remained soft and hardware product sales slowed Increased sales of hosted software Gross margin increased slightly due to higher proportion of software and services SG&A, excluding depr. & amort., decreased by $1
Slide 6: Retail (RSG)
Q1 review: Retail ("RSG") Revenue was consistent with our expectations given absence of several large customer roll- outs in Q1 FY09 Revenue decreased 36% primarily due to lower volumes of point-of-sale hardware and implementation services Gross margin remained flat due to relatively higher mix of h
Slide 7: Technology (TSG)
Q1 review: Technology ("TSG") Soft demand for IT infrastructure solutions, especially hardware, contributed to 23% decline in revenue Market was weaker than expected Oracle pending acquisition of Sun muted historical seasonal growth in Sun product line Gross margin expanded in quarter due to higher
Slide 8: Corporate
Q1 review: Corporate Gross profit decreased $2.6M due to non- recurring, miscellaneous pricing adjustments SG&A, excl. depr. & amort., decreased $6.0M due to FY09 cost saving actions Payroll related costs were down $4.3M T&E decreased $0.4M Outside services and professional fees decreased $0.6M Corp
Slide 9: Summary balance sheet performance
Q1 review: summary balance sheet performance Cash at June 30th was $51.0M - an increase of $14.8M from 3/31/09 A/R generated $47.0M of cash Inventory generated $6.8M of cash A/P generated $48.3M of cash due to termination of floor plan financing agreement Floor plan financing payments consumed $74.2
Slide 10: Quarterly revenue
Quarterly revenue Jun '08 Sep '08 Dec '08 Mar '09 Jun '09 EBITDA 116.9 118.7 161.4 111 89.8 Jun '08 Sep '08 Dec '08 Mar '09 Jun '09 Organic 24.7 23.4 27.9 23.6 16 HSG Revenue ($Mil.) TSG Revenue ($Mil.) Jun '08 Sep '08 Dec '08 Mar '09 Jun '09 Organic 38.1 29.3 34.8 20 24.4 RSG Revenue ($Mil.) AGYS C
Slide 11: Outlook and dividend
Outlook Dividend With evolution of business and company not maintaining its fixed charge coverage ratio, Board voted to eliminate dividend Elimination of dividend will preserve $2.7M annually Outlook Demand environment remains weak and visibility is limited Company continues to suspend revenue guida
Slide 12: Fiscal 2010 Unaudited First Quarter Results
Agilysys, Inc. (Nasdaq: AGYS) Fiscal 2010 Unaudited First Quarter Results August 5, 2009
Slide 13: Reconciliation of net loss to adjusted EBITDA
Reconciliation of net loss to adjusted EBITDA