Slide 1: High Performance Embedded Systems, IT Integration Solutions
High Performance Embedded Systems IT Integration Solutions Investor Presentation 1 February, 2011
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- l ki statements under looking d the h A Act. SSuch h fforward-looking d l ki statements may include, but
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 – 139 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. 95 0 95.0 100 83.4 76.8 Revenue - $ Millions 80 60 40 22.1 20 0 FY 2008 FY 2009 FY 2010 FY 2011 Q1 1.25 1.00 00 hare - Diluted d 0.75 0.50 $0.25 0.25 $0.11 Eaarnings per Sh 0 00 0.00 (0.25) ($0.11) 1 2 3 4 (0.50) (0.75) (1.00) (1.25) ($1.05) 5
Slide 6: Strategy
Strategy • Provide d cutting edge d integration solutions l for f complex l ITT environments. • Developp architecturallyy superior p high g performance p cluster systems y based on open systems technologies for military applications. • Leverage core competencies to extend key technologies to new gro
Slide 7: 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 Inttrusion Detecttion Exterior Penetration External Access Anti-Virus 9
Slide 10: Network Operations Center for Managed Services
Network Operations Center for Managed Services • The T e NOC N C monitors o o s keyey 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 re
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 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 syste
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 d – E2-D – Sonar – GASS – C4ISR – HYDRA • Command, Control, Communications, Computers, Intelli
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 $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: DoD program example: E-2D Advanced Hawkeye
DoD program example: E-2D Advanced Hawkeye Revenue Stream $10.0 $70.0 $9.0 $60.0 $8.0 ative Revenue (in $ Millions) Millions) $7.0 $50.0 nual Revenue (in $ M $6.0 $40.0 $5.0 Pilot LRIP Production EDM and $30.0 $4.0 $3 - 10M SD&D $3.0 $20.0 $3.5M Cumula Ann $2.0 $10.0 $1.0 $- $- Y05 Y06 Y07 Y08 Y09 Y
Slide 17: Financial Review
Financial Review - Strong Balance Sheet - Leverageable model 17
Slide 18: Annual Sales
Annual Sales 100 95.0 83.4 76.8 80 Reveenue - $ Miillions 60 40 22.1 20 0 FY 2008 FY 2009 FY 2010 FY 2011 Q1 Fi l Y Fiscal Year 18
Slide 19: Annual Earnings per Share (Diluted)
Annual Earnings per Share (Diluted) 1 25 1.25 1.00 0.75 gs per Sharee - Diluted d 0.50 $0.25 0.25 $0.11 0.00 (0.25) ($0.11) Earning (0.50) (0.75) (1.00) ($1.05) (1.25) FY 2008 FY 2009 FY 2010 FY 2011 Q1 Fiscal Year 19
Slide 20: Net Income (loss)
Net Income (loss) 4.50 4.00 3.50 3.00 2.50 Net Income - $ Millions 2.00 1.50 0.91 1.00 0.39 0 50 0.50 0.00 (0.50) (0.41) (1.00) (1 50) (1.50) (2.00) (2.50) (3.00) (3 50) (3.50) (3 80) (3.80) (4.00) FY 2008 FY 2009 FY 2010 FY 2011 Q1 Fiscal Year 20
Slide 21: Sales by Geography
Fiscal Year Ended September 30, 2010 Sales by Geography 71% Americas Europe Asia 28% 1% 21
Slide 22: Sales by Segment & Gross Margin
Fiscal Year Ended September 30, 2010 Sales by Segment & Gross Margin 91% Service and Systems Integration (GM @ 13%) Blended GM of 18 % Systems (GM @ 67%) 9% 22
Slide 23: Balance Sheet Highlights
Balance Sheet Highlights Dollars in Millions 9/30/2009 9/30/2010 12/31/2010 Assets Cash & Short Term Investments $ 18.99 18 $ 15.55 15 $ 16.00 16 Accounts Receivable $ 7.4 $ 12.2 $ 11.5 Inventory $ 5.9 $ 5.9 $ 6.2 Other current assets $ 3.7 $ 2.4 $ 2.4 C Current A Assets $ 35 9 35.9 $ 36 0 36.0 $ 36
Slide 24: Goals
Goals Increase Market Share – MODCOMP • Expand “solution” offerings to growth markets like network security management and unified communications • Increase sales force and forge new supplier partnerships to leverage success in infrastructure solutions • Increase higher margin consulting services an
Slide 25: 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