Integrated Research Limited · ASX:IRI
Integrated Research — H1 FY2011 Earnings Presentation
21 slides from Integrated Research's earnings presentation, Feb 18, 2011
Slide 1: FY2011 First Half Results
For personal use only Integrated Research Limited FY2011 First Half Results 17 February 2011 ABN: 76 003 588 449 Providing Business Insight™
Slide 2: Agenda
Agenda For personal use only Financial Results Peter Adams Growth Strategy Mark Brayan Questions Providing Business Insight™
Slide 3: Integrated Research at a glance
Integrated Research at a glance For personal use only Developers of Prognosis, for real-time, high definition monitoring of continuity- critical systems Market leadership in IP Telephony, Payments and HP NonStop A sustainable competitive advantage that can be extended quickly, easily and cost effect
Slide 4: Leading in high-growth markets
Leading in high-growth markets For personal use only 8 of the world’s 10 largest companies 3 of the 5 biggest banks 6 of the 10 biggest stock exchanges 6 of the 10 biggest telcos 4 of the 5 biggest oil and gas companies 6 of the 10 biggest aerospace /defence The 2 biggest aircraft manufacturers Prov
Slide 5: Financial Results
For personal use only FINANCIAL RESULTS Peter Adams Providing Business Insight™
Slide 6: Key Highlights
Key Highlights For personal use only Improving conditions IP Telephony growth New licence sales up to 16% to 10.6M 88 new customers Strong growth in Europe (up 40%) and Over 2.4 million phones licensed Americas (up 29%) Billings up 11% (19% in USD) Total revenue up 12% to 20.5M Cashflow from operati
Slide 7: Financial Results
Financial Results For personal use only Revenue for 1st half years… 31 Dec 2010 31 Dec 2009 25.0 A$000’s A$000’s % change Licence fees 10,581 9,118 16% 20.0 15.0 Maintenance fees 8,583 8,718 (2%) 10.0 Consulting fees 1,342 696 93% 5.0 Total revenue 20,506 18,532 11% 0.0 R&D expenses - net 4,429 4,08
Slide 8: Balance sheet and Cashflow
Balance sheet and Cashflow For personal use only Interim and special dividends 31 Dec 2010 30 Jun 2010 2.5 BALANCE SHEET $000’s $000’s Cash at bank 8,660 8,396 2.0 Receivables 13,766 16,062 1.5 Development cap. 13,801 13,957 1.0 Deferred Revenue 8,827 10,748 0.5 Net assets 25,234 24,502 0.0 2005 200
Slide 9: Review of operations: products & services
Review of operations: products & services For personal use only Billings by 31 Dec 2010 31 Dec 2009 Product Line ($A) $000’s $000’s % change NonStop / Infrastructure All results impacted by rising AUD 10,403 8,558 22% and Payments NonStop rebound due to focus and improved economic conditions IP Tele
Slide 10: Review of operations: IPT
Review of operations: IPT 1st Half Billings For personal use only 8.0 7.0 6.0 5.0 Strong IPT growth in Europe 4.0 First Alcatel sale IPT billings up 19% in USD from 1HFY10 3.0 2.0 1.0 0.0 2004 2005 2006 2007 2008 2009 2010 2011 AUD USD Providing Business Insight™
Slide 11: Review of operations: regions
Review of operations: regions For personal use only Revenue by region Revenue by Geographic 31 Dec 2010 31 Dec 2009 14.0 region (in local currency) $000’s $000’s % change 12.0 Americas (USD) 11,550 8,976 29% 10.0 8.0 6.0 Europe (GBP) 2,186 1,564 40% 4.0 2.0 Asia Pacific (AUD) 3,787 3,858 (2%) 0.0 20
Slide 12: Risk Management
Risk Management For personal use only Current Challenges Unfavorable movements in currency exchange rates Speed of global economic recovery Lumpiness of end of quarter license sales Proactive Management Proactive approach to currency hedging Diversification of risks through multiple product offering
Slide 13: Growth Strategy
For personal use only GROWTH STRATEGY Mark Brayan Providing Business Insight™
Slide 14: Highlights H1 FY2011
Highlights H1 FY2011 For personal use only IP Telephony growth 88 new customers Over 2.4 million phones licensed Billings up 11% (19% in USD) New products and alliances New IPT products launched 90+ IPT resellers enabled globally HP NonStop Sales increase as customer investment returns Providing Bus
Slide 15: Growth strategy - new products and services
Growth strategy - new products and services For personal use only 3. Consulting services to increase product use and Implementation, integration and training services penetration, and develop Customized development Unique and repeatable solutions repeatable solutions Return on IPT investment Device
Slide 16: R&D spending – new product development
R&D spending – new product development For personal use only 31 Dec 31 Dec 2010 2009 % Change A$000’s A$000’s Gross spending 4,286 3,975 8% Development – Cap. 2,996 2,874 4% R&D investment in new products Capitalised % 70% 72% and features Increased R&D productivity Amortised 3,139 2,979 5% Improved
Slide 17: Growth strategy - IPT
Growth strategy - IPT For personal use only Worldwide IP Phone Shipments Growth strategy - IPT Source: Gartner Q2 FY10 Americas APAC Europe IP phone Shipment growth in 2010 forecast to continue 14,000 Multi-vendor strategy 12,000 Unified Communications ecosystem monitoring – voice, video, apps. 10,0
Slide 18: Growth strategy – NonStop and Payments
Growth strategy – NonStop and Payments For personal use only Growth strategy - Payments Multi-vendor strategy: Support for ACI, Connex, Postilion and customised switches Strategic alliance with ACI Worldwide: Added support for Risk Management Global Online Payments Volume Wholesale payments support
Slide 19: Growth strategy - more channels to market
Growth strategy - more channels to market For personal use only Global network of IR offices and value-added resellers Strategic alliances and managed service providers Enterprise sales All segments Partner support Large Enterprise Enterprise Americas Europe Head Office Sales Sales Marketing Support
Slide 20: Summary
Summary For personal use only Improving conditions Sales up 16%, revenue up 11% and cashflow up 59% Americas up 29% and Europe up 40% Results impacted by strong AUD Profit down 12% Revenue up by 18% and profit up 12% on a constant currency basis Strong product and service results IPT billings up 11%
Slide 21: Thank You
For personal use only Thank You Providing Business Insight™
Integrated Research — H1 FY2011 Earnings Presentation on 6ix