Cardiac Science — Needham Investor Conference 2007
20 slides from Cardiac Science's conference presentation, Jun 14, 2007
Slide 1: Needham Investor Conference
Needham Investor Conference June 14, 2007 Nasdaq: CSCX Cardiac Science Corporation
Slide 2: Forward Looking Statements
Forward Looking Statements This press release contains forward-looking statements, including, but not limited to, those relating to Cardiac Science Corporation’s future revenue growth and profitability that involve a number of risks and uncertainties. These are forward- looking statements for purpos
Slide 3: At the Heart of Saving Lives
TM At the Heart of Saving Lives 3 Cardiac Science Corporation
Slide 4: Investment Highlights
Investment Highlights Growing $2 billion plus market expected to exceed $3 billion by end of decade Strong product portfolio Leading brands Broad global distribution Substantial IP / development expertise Leveraged business model Near term competitive opportunity 4 Cardiac Science Corp
Slide 5: From Discovery to Recovery
From Discovery to Recovery 5 Cardiac Cardiac Science Science Corporation Corporation 5
Slide 6: Estimated Worldwide Market
Estimated Worldwide Market 2006 (1) 2010 (1) Annual demand Annual demand should exceeds $2 billion exceed $3 billion Defibrillation Defibrillation Cardiac Monitoring Cardiac Monitoring Growth will be driven primarily by AEDs (1) Public Filings, Frost & Sullivan and Company Estimates 6 Cardiac Scienc
Slide 7: Products – Defibrillation
Products – Defibrillation Automated Patient External Defibrillators Hospital Defibrillators Monitor Defibrillators ECG Analysis ECG Monitoring ECG Analysis / Monitoring with Automated Defibrillation with Manual Defibrillation with Automated Defibrillation Distinguishing characteristics: Features, Re
Slide 8: Products – Diagnosis and Monitoring
Products – Diagnosis and Monitoring Electrocardiographs Cardiac Stress Testing Holter Monitors ECG Analysis ECG Analysis ECG Analysis / Monitoring Heart at Rest Elevated Heart Rate Various Heart Rates Distinguishing characteristics: Brand, Innovation and Service 8 Cardiac Science Corporation
Slide 9: Products – Rehabilitation & Management
Products – Rehabilitation & Management Cardiac Rehabilitation Cardiology Telemetry Data Management ECG Analysis / Monitoring ECG Analysis during Rehabilitation Exercise during Data Collection Distinguishing characteristics: Workflow, Flexibility and Implementation 9 Cardiac Science Corporation
Slide 10: Intellectual Property
Intellectual Property Expertise in algorithms, signal processing, high voltage applications and data management for cardiology devices Over 100 patents issued and pending Historically successful in licensing and defense of patents Recent patents cover diagnostic tools and various defibrillat
Slide 11: Growth Strategy
Growth Strategy Capitalize on emerging AED market Continue new product introductions Broaden distribution in international markets Expand through innovative marketing efforts Leverage our service capabilities Complement organic growth with acquisitions 11 Cardiac Science Corporation
Slide 12: Growth History
Growth History Revenue ($ in millions) $180 $160 $140 R 29% CAG $120 $100 $80 $60 $40 $20 $0 2002 2003 2004 2005 2006 2007E 12 Cardiac Science Corporation
Slide 13: 2007 Focus
2007 Focus Continue worldwide AED growth and capitalize on current competitive opportunity Revitalize cardiac monitoring sales Enhance domestic and international distribution and service capabilities Add to product and technology portfolio Launch hospital defibrillator product Manage lit
Slide 14: Recent Progress
Recent Progress Defibrillation business grew 43% year-over- year in Q1 US defibrillation channel up 59% Added US AED distributors, PAD Programs Restructured US cardiac monitoring channels New product introductions Settled two significant lawsuits Philips IAML 14 Cardiac Science Corpo
Slide 15: Annual Results
Annual Results 2006(4) 2005(1) Revenue $155.4M $141.9M Net Income (Loss) $ 49K $ (7.1M) EPS $ 0.00 $ (0.48) Adjusted EBITDA (2) $ 8.2M $ (9.0M) Adjusted EBITDA % 5.2% (6.3%) Operating Cash Flow (3) $ 8.6M $ (0.9M) (1) 2005 represents pro forma combined CSI and Quinton results, excluding non-cash goo
Slide 16: Q1'07 Results
Q1’07 Results Q1’07 (1) Q1’06 (1) Revenue $ 41.7M $39.1M Net Income (Loss) $ (0.2M) $ 0.3M EPS $ (0.01) $ 0.01 Adjusted EBITDA (2) $ 2.0M $ 2.9M Adjusted EBITDA % 4.7% 7.4% Operating Cash Flow $ 2.3M $ 3.6M (1) Includes litigation related expense of $1.7M and $0.7M for Q1’07 and Q1’06, respectively
Slide 17: Balance Sheet Highlights
Balance Sheet Highlights 03/31/07 Cash and Short-Term Investments $ 12.2M A/R DSO 60 Inventory Turns/Year 4.7 Net Working Capital $ 31.4M Deferred Tax Assets $ 40.6M Long-Term Debt $ 0.0 Shareholder’s Equity $ 216.2M 17 Cardiac Science Corporation
Slide 18: Financial Model (next 2-3 years)
Financial Model (next 2-3 years) Income Statement: Revenue growth in a range around 10% Improving gross margins (subject to mix) Operating expense growth about half of revenue growth rate Operating margin to 10 - 15% target Cash Flow: Free cash flow higher than implied by earnings Minima
Slide 19: Summary
Summary Growing $2 billion plus market expected to exceed $3 billion by end of decade Strong product portfolio Leading brands Broad global distribution Substantial IP / development expertise Leveraged business model Near term competitive opportunity 19 Cardiac Science Corporation
Slide 20: Cardiac Science Corporation
Cardiac Science Corporation Nasdaq: CSCX Cardiac Science Corporation