Mks Inc. · NASDAQ:MKSI
Mks — Investor Presentation (September 2009)
28 slides from Mks's investor presentation, Sep 9, 2009
Slide 1: Investor Presentation
Investor Presentation September 9, 2009
Slide 2: Forward-Looking Statement
Forward-Looking Statement Some of the statements made in this presentation, including those relating to MKS's strategies and other statements that are predictive in nature, that depend upon or refer to future events or conditions, or that include words such as “expects,” “anticipates,” “intends,” “p
Slide 3: Conclusions: We Did Well in 2009
Conclusions • We Did Well in 2009 MKS Investor Presentation September 9, 2009
Slide 4: Annual Results 2009
MKS Revenue by Segment Fiscal Years ending April 30, Millions $70 Annual Results 2009 $60 $61.2 $7.4 $58.4 $7.4 $48.3 $48.3 $50 • Revenue declined by 5% to $8.2 $41.1 $8.3 $40 $1.1 $58.4 million $30 $28.1 $31.8 $3.2 $32.0 $1.9 $8.8 $53.8 $9.0 $51.0 $8.2 $10.1 • “Non-license” categories of $20 $39.3
Slide 5: Admin, Finance and Facilities Costs
Admin, Finance and Facilities Costs $16 30% 26.0% $14 25% 22.7% $12 21.3% 20.6% 20% $10 14.9% 14.6% $8 13.5% 15% 12.9% $6 10% $4 5% $2 $0 0% 2006 2007 2008 2009 R&D Admin & Corp. Percentage of Revenue Percentage of Revenue MKS Investor Presentation September 9, 2009
Slide 6: MKS Quarterly Revenue
MKS Quarterly Revenue $25 $21.2 $20 $2.0 $16.3 $15.4 $15 $13.6 $13.6 $2.1 $13.6 $1.9 $13.2 $12.6 $12.6 $12.8 $10.9 $11.5 $11.6 $1.9 $1.8 $1.6 $1.8 $2.1 $1.8 $5.1 $2.4 $1.8 $5.0 $1.9 $2.8 $10 $4.2 $3.1 $2.8 $4.7 $4.7 $3.4 $3.2 $3.9 $2.2 $2.8 $2.5 $2.7 $2.1 $2.4 $2.1 $1.6 $1.6 $1.6 $1.4 $5 $1.4 $5.8 $
Slide 7: New MKS Integrity Mandates
New MKS Integrity Mandates • We won more new enterprise mandates than ever in 2009 • Winning enterprise mandates takes time and money • Many of them came with much less license revenue than past patterns would have suggested • We announced a few of them during and just after the year – TRW, Honeywel
Slide 8: Conclusion #1 - We Did Well in 2009
Conclusion #1 - We Did Well in 2009 • We improved profitability in spite of a tough economy • We won more major enterprise mandates in 2009 than ever before • We maintained our 91% maintenance renewal rate • We boosted our dividend based on continued strong cash flow MKS Investor Presentation Septem
Slide 9: Conclusions: We are Well Positioned for Growth
Conclusions • We Did Well in 2009 • We are Well Positioned for growth MKS Investor Presentation September 9, 2009
Slide 10: MKS Integrity 2009
MKS Integrity 2009 • MKS Integrity 2009 shipped last week • Major new features include • New web interface • New scalability and performance improvements • New test management capabilities • Test Management completes the ALM vision of MKS Integrity • It is the last leg of the ALM stool • It opens a
Slide 11: Gartner Group Magic Quadrant
Gartner Group Magic Quadrant MKS Investor Presentation September 9, 2009
Slide 12: Partnership with BMC
Partnership with BMC • IBM and HP are increasingly presenting complete visions of IT management in including ALM • MKS is the most capable independent enterprise ALM provider • For enterprise software companies trying to compete with IBM and HP, a partnership with us gives them the ability to presen
Slide 13: We Are Committed to Growth
We Are Committed to Growth • We are well positioned with the best ALM platform in the market • We have earned significant new mandates, particularly in embedded systems, that give us a new level of credibility • We have newly earned experience in deploying our product to manage the full software lif
Slide 14: Conclusion #2 – We are Well Positioned for Growth
Conclusion #2 – We are Well Positioned for Growth • We just launched our upgraded product including test management capabilities • Gartner just increased their assessment of our technology leadership position • We signed our first major partnership with BMC to resell our product • We are investing i
Slide 15: Conclusions: Our Financial Position is Strong
Conclusions • We Did Well in 2009 • We are Well Positioned for growth • Our Financial Position is Strong MKS Investor Presentation September 9, 2009
Slide 16: Cash and EBITDA
Cash and EBITDA $25 $19.7 $20 $17.4 $17.1 $16.3 $15.4 $15.1 $15.3 $14.7 $15 $13.2 $11.9 $11.5 $10.5 $10.6 $10.6 $9.9 $10 $8.9 $4.7 $5 $2.7 $2.9 $1.8 $1.6 $0.8 $1.0 $0.9 $1.0 $1.0 $1.1 $0.1 $0.1 $- -$0.2 -$0.6 -$0.2 -$0.7 -$5 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 FISCAL 2006 FISCAL 2007 FISCAL 2008 FISCA
Slide 17: Hedge Rates vs. Actual CAD
Hedge Rates vs. Actual CAD $1.05 $1.00 $0.95 $0.90 $0.85 $0.80 $0.75 $0.70 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 FISCAL 2005 FISCAL 2006 FISCAL 2007 FISCAL 2008 FISCAL 2009 FISCAL 2010 FISCAL 2011 FCST Canadian Exchange Rate Hedge Prices MKS Investor Presentation September 9, 2009
Slide 18: Profitability and Dividends
Profitability and Dividends • We pay a dividends to return cash not required to grow our business to shareholders • We continue to fund R&D sufficient to maintain and extend product leadership • We are planning to steadily build our sales and services personnel • We continue to be committed to profi
Slide 19: Share Consolidation
Share Consolidation • MKS believes that our share consolidation will bring several important advantages to retail and institutional shareholders • Many institutions place a $2 or even $5 lower limit to purchases by their portfolio managers. The consolidation should make MKS trade in excess of these
Slide 20: Conclusion #3 - Our Financial Position is Strong
Conclusion #3 - Our Financial Position is Strong • We have a strong balance sheet, with record cash levels • We have locked in low Canadian currency rates for 2010 and beyond • We are committed to return cash not needed for growth to shareholders • We are making our shares more attractive to investo
Slide 21: Conclusions: We got off to a good start in Q1 2010
Conclusions • We Did Well in 2009 • We are Well Positioned for growth • Our Financial Position is Strong • We got off to a good start in Q1 2010. MKS Investor Presentation September 9, 2009
Slide 22: License Deals by Size
License Deals by Size $12.0 $11.0 $10.0 $9.0 $8.0 $7.0 $6.0 $5.0 $4.0 $3.0 $2.0 $1.0 $0.0 FY04 FY04 FY04 FY04 FY05 FY05 FY05 FY05 FY06 FY06 FY06 FY06 FY07 FY07 FY07 FY07 FY08 FY08 FY08 FY08 FY09 FY09 FY09 FY09 FY10 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 1. Less th
Slide 23: ALM Services
ALM Services 3,000 100% 90% 2,500 80% 70% 2,000 60% 1,500 50% 40% 1,000 30% 20% 500 10% 0 0% 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 FISCAL 2005 FISCAL 2006 FISCAL 2007 FISCAL 2008 FISCAL 2009 FISCAL 2010 Service Margin % Service as percent of license MKS Investor Presentation September 9, 2
Slide 24: MKS Quarterly Revenue
MKS Quarterly Revenue $25 $21.2 $20 $2.0 $16.3 $15.4 $15.7 $15 $13.6 $13.6 $1.9 $2.1 $13.2 $13.6 $1.4 $12.8 $10.9 $1.9 $1.8 $1.6 $1.8 $1.8 $5.1 $5.0 $5.0 $2.8 $10 $4.7 $4.2 $3.1 $2.8 $2.8 $2.7 $2.7 $2.2 $2.5 $2.1 $2.4 $2.1 $1.6 $5 $5.9 $6.3 $6.4 $6.3 $6.3 $6.7 $5.4 $5.6 $5.8 $0 -$5 1 2 3 4 1 2 3 4 1
Slide 25: Product and Administrative Costs
Product and Administrative Costs $10.0 30% $9.0 28% 27% 27% 27% 26% 25% $8.0 24% 23% 23% $7.0 20% 22% 22% 21% 21% 21% 21% 21% 20% 19% 19% $6.0 16% 15% 15% 15% 15% 15% 15% 14% $5.0 13% 14% 14% 15% 13% 13% 12% 12% $4.0 $3.7 $3.6 11% $3.5 $3.4 $3.2 $3.3 $3.2 $3.2 $3.2 $2.9 $3.0 $3.0 $3.1 10% $3.0 $2.6
Slide 26: Results Summary
Results Summary • Total revenue increased 2% to $15.7 million from $15.4 million • Net income of $1.4 million or $0.14 per share compared to $0.6 million, or $0.06 per share, a 127% increase • ALM license revenue was unchanged (from a year ago) at $5.0 million • ALM revenue increased 7% to $14.4 mil
Slide 27: Conclusions
Conclusions • We Did Well in 2009 • We are Well Positioned for growth • Our Financial Position is Strong • We got off to a good start in Q1 2010. MKS Investor Presentation September 9, 2009
Slide 28: Thank you
Thank you