Spok Holdings, Inc. · NASDAQ:SPOK
Spok — Investor Day (November 2014)
84 slides from Spok's investor day presentation, Nov 21, 2014
Slide 1: Meet Spok
MEET SPOK When COMMUNICATIONS matter, Spok delivers. Exhibit 99.1
Slide 2: Introducing Spok
INTRODUCING SPOK Vince Kelly CEO
Slide 3: Safe Harbor Statement
3 SAFE HARBOR STATEMENT This presentation may include forward-looking statements that are subject to risks and uncertainties relating to Spok’s future financial and business performance. Such statements may include estimates of revenue, expenses, and income, as well as other predictive statements or
Slide 4: Agenda – A Corporate Overview
4 • Looking ahead • Discussion / Q&A • Our company and strategy • Our team • Our customers AGENDA – A CORPORATE OVERVIEW WHO WE ARE: VINCE KELLY • Solution overview • Five growth pillars EXECUTION: THE EXECUTIVE TEAM • Operations (Hemant Goel) • Sales (Gary Ash) •Marketing (Donna Scott) • Finance (S
Slide 5: Spok – Company Overview
5 SPOK – COMPANY OVERVIEW Public Company since 2004 Profitable & Debt Free Return Shareholder Capital Focused on Growth Investing in the Company
Slide 6: Respecting Our History, Embracing the Future
6 RESPECTING OUR HISTORY EMBRACING THE FUTURE 2011 USA Mobility acquires Amcom Software 2014 USA Mobility and Amcom Software come together under single identity and new, exciting brand 2007 Merger of Amcom and Xtend Comms 2008 Amcom acquires Telident 911 and Commtech Wireless 2009 Amcom acquires SDC
Slide 7: Spok – Our Strategy
7 SPOK – OUR STRATEGY A CRITICAL COMMUNICATIONS COMPANY Spok delivers smart, reliable communication solutions to help protect the health, well-being, and safety of people around the globe. STRATEGY FOR LONG-TERM SHAREHOLDER VALUE • Are accretive to our business • Accelerate our revenue growth • Util
Slide 8: Company Overview: Investing in Our Business Globally
8 Minneapolis, MN Jacksonville, FL New York, NY Bedford, NH London Dubai Perth Plano, TX Springfield, VA EMPLOYEES 606 125,000 CUSTOMERS ME TRI C S LO C A TION S COMPANY OVERVIEW INVESTING IN OUR BUSINESS GLOBALLY Q3 YTD 2014 REVENUE $149 FY14 Guidance $183 – $201 (in millions)
Slide 9: Our Team
9 OUR TEAM Vince Kelly Chief Executive Officer Colin Balmforth President Tom Saine Chief Information Officer Bonnie Culp Executive Vice President of Human Resources Sharon Woods Keisling Corporate Secretary & Treasurer Shawn Endsley Chief Financial Officer Donna Scott Senior Vice President of Market
Slide 10: Company Values
10 COMPANY VALUES VALUES We put the customer first in everything we do What we do matters: our solutions improve communications in critical situations We are committed to innovation and offering new solutions for future growth We are accountable to each other, to shareholders, and to our customers
Slide 11: The Best Adult and Children's Hospitals Choose Spok
11 THE BEST ADULT AND CHILDREN’S HOSPITALS CHOOSE SPOK Source: U.S. News & World Report’s “Best Hospitals” study 2014-2015 4,743 ADULT HOSPITALS SURVEYED 17 QUALIFIED for “HONOR ROLL” ALL USE SPOK SOLUTIONS 183 CHILDREN’S HOSPITALS SURVEYED 10 QUALIFIED for “HONOR ROLL” ALL USE SPOK SOLUTIONS Source
Slide 12: President's E-Award
12 PRESIDENT’S E-AWARD Award Criteria • Significant contributions to expansion of U.S. export trade • Minimum of four consecutive years of export growth • Overcome key challenges to achieve growth EXPORT EXPANSION AWARD “[Spok’s] achievements have undoubtedly contributed to national export expansion
Slide 13: 2014 Reflects Successful Execution of Our Strategy
13 2014 REFLECTS SUCCESSFUL EXECUTION OF OUR STRATEGY Launched the Global Spok Brand Integrated Software and Wireless Companies Recruited Highly Qualified Execs to Management Team Made Significant Investments in Key Spok Teams Met/Exceeded Majority of Key Performance Goals Expanded Sales Capabilitie
Slide 14: Progress on Repositioning Spok for Long-Term Growth
14 PROGRESS ON REPOSITIONING SPOK FOR LONG-TERM GROWTH $20.4 million (Q3’14 record) 1.9% (10 year low) Software offsetting decline in Wireless Public safety growth of 6.7X Mobile app sales +53.6% Maintenance renewal rates at 95%+ Software Bookings Unit Erosion
Slide 15: Our Capital Allocation Strategy
15 OUR CAPITAL ALLOCATION STRATEGY RETURN CAPITAL TO SHAREHOLDERS ACCRETIVE ACCELERATE REVENUE GROWTH UTILIZE OUR DEFERRED TAX ASSETS INVEST IN PRODUCT DEVELOPMENT & INNOVATION ACQUISITIONS THAT MEET OUR CRITERIA:
Slide 16: Capital Allocation Strategy: Shareholder Return
16 OUR CAPITAL ALLOCATION STRATEGY: SHAREHOLDER RETURN We intend to distribute approximately $26 million to shareholders in 2015 in the form of dividends/share repurchases
Slide 17: Our Solutions & Growth Strategy
OUR SOLUTIONS & GROWTH STRATEGY Colin Balmforth President
Slide 18: Our Critical Communication Solutions
18 OUR CRITICAL COMMUNICATION SOLUTIONS DIRECTORY CLINICAL ALERTING AND NOTIFICATION 9-1-1 CALL CENTER SOLUTIONS MOBILE COMMUNICATIONS PAGING CONTACT CENTER SOLUTIONS SCHEDULING EMERGENCY NOTIFICATION ALARM MONITORING
Slide 19: Our Critical Communication Solutions: Directory
19 OUR CRITICAL COMMUNICATION SOLUTIONS DIRECTORY CLINICAL ALERTING AND NOTIFICATION 9-1-1 CALL CENTER SOLUTIONS MOBILE COMMUNICATIONS PAGING CONTACT CENTER SOLUTIONS EMERGENCY NOTIFICATION ALARM MONITORING • Heart of Communication System • Source of Truth for Contact Information • Collaboration Poi
Slide 20: Our Critical Communication Solutions: Clinical Alerting
20 OUR CRITICAL COMMUNICATION SOLUTIONS CLINICAL ALERTING AND NOTIFICATION 9-1-1 CALL CENTER SOLUTIONS MOBILE COMMUNICATIONS PAGING CONTACT CENTER SOLUTIONS EMERGENCY NOTIFICATION ALARM MONITORING • Incident Management • Emergency Notification • Radiology, Lab, Cardio, Other • Nurse Call • Patient M
Slide 21: Our Critical Communication Solutions: 9-1-1 Call Center
21 OUR CRITICAL COMMUNICATION SOLUTIONS CLINICAL ALERTING AND NOTIFICATION 9-1-1 CALL CENTER SOLUTIONS MOBILE COMMUNICATIONS PAGING CONTACT CENTER SOLUTIONS EMERGENCY NOTIFICATION ALARM MONITORING • 9-1-1 Call-Taking and Dispatch • Enhanced 9-1-1 • NG9-1-1 DIRECTORY SCHEDULING
Slide 22: Our Critical Communication Solutions: Mobile Communications
22 OUR CRITICAL COMMUNICATION SOLUTIONS CLINICAL ALERTING AND NOTIFICATION 9-1-1 CALL CENTER SOLUTIONS MOBILE COMMUNICATIONS PAGING CONTACT CENTER SOLUTIONS EMERGENCY NOTIFICATION ALARM MONITORING • Secure Messaging on a Smart Device • Care Team Communication and Collaboration • Driving Critical Inf
Slide 23: Our Critical Communication Solutions: Paging
23 OUR CRITICAL COMMUNICATION SOLUTIONS CLINICAL ALERTING AND NOTIFICATION 9-1-1 CALL CENTER SOLUTIONS MOBILE COMMUNICATIONS PAGING CONTACT CENTER SOLUTIONS EMERGENCY NOTIFICATION ALARM MONITORING Wide-Area Paging • One-Way and Two-Way Messaging • ReadyCall Waiting Area Pagers • Paging Management Se
Slide 24: Our Critical Communication Solutions: Contact Center
24 OUR CRITICAL COMMUNICATION SOLUTIONS CLINICAL ALERTING AND NOTIFICATION 9-1-1 CALL CENTER SOLUTIONS MOBILE COMMUNICATIONS PAGING CONTACT CENTER SOLUTIONS EMERGENCY NOTIFICATION ALARM MONITORING • Operator Console • Web-Based Directory • Speech Recognition • Call Recording and Quality Management D
Slide 25: Our Critical Communication Solutions: Scheduling
25 OUR CRITICAL COMMUNICATION SOLUTIONS CLINICAL ALERTING AND NOTIFICATION 9-1-1 CALL CENTER SOLUTIONS MOBILE COMMUNICATIONS PAGING CONTACT CENTER SOLUTIONS SCHEDULING EMERGENCY NOTIFICATION ALARM MONITORING • On-Call Scheduling • Staff Assignment • Care Team Availability DIRECTORY
Slide 26: Our Critical Communication Solutions: Emergency Notification
26 OUR CRITICAL COMMUNICATION SOLUTIONS CLINICAL ALERTING AND NOTIFICATION 9-1-1 CALL CENTER SOLUTIONS MOBILE COMMUNICATIONS PAGING CONTACT CENTER SOLUTIONS EMERGENCY NOTIFICATION ALARM MONITORING • Group Alerting • Audit Trail • Escalation Management DIRECTORY SCHEDULING
Slide 27: Our Critical Communication Solutions: Alarm Monitoring
27 OUR CRITICAL COMMUNICATION SOLUTIONS CLINICAL ALERTING AND NOTIFICATION 9-1-1 CALL CENTER SOLUTIONS MOBILE COMMUNICATIONS PAGING CONTACT CENTER SOLUTIONS EMERGENCY NOTIFICATION ALARM MONITORING DIRECTORY SCHEDULING Non-Clinical Alerts on Mobile Devices • Building Management • Security • Fire Alar
Slide 28: Company Strategy: Five Growth Pillars
28 COMPANY STRATEGY: FIVE GROWTH PILLARS VERTICAL MARKETS MID-MARKET HEALTHCARE INTERNATIONAL PRODUCT INNOVATION MERGERS & ACQUISITIONS Strategy: Expand mid-market healthcare share Strategy: Leverage marquee brand position in new geographic markets Strategy: Identify and grow secondary vertical indu
Slide 29: Growth Pillars: Mid-Market Healthcare
29 GROWTH PILLARS: MID-MARKET HEALTHCARE 85% HEALTHCARE of business comes from MI D -MAR K ET : 200 600 TO BEDS US MID- MARKET HOSPITALS 36% MID-MARKET HEALTHCARE Strategy: Expand mid-market healthcare share Highlight win: A 400+-bed hospital in Virginia continues to add new solutions, including add
Slide 30: Growth Pillars: International
30 GROWTH PILLARS: INTERNATIONAL 2014 SUCCESS INT’L WEB TRAFFIC EMEA: new RVP with expansion in sales resources for UK and Middle East regions. 1 APAC: continued expansion in Services and Support delivery resources to meet record sales activity. 2 STRENGTHENING THE TEAMS: INTERNATIONAL Strategy: Lev
Slide 31: Growth Pillars: Vertical Markets
31 GROWTH PILLARS: VERTICAL MARKETS VERTICAL MARKETS Strategy: Identify and grow secondary vertical industry markets $5.3 million in new logo U.S. Air Force deals to date in 2014 EXHIBITED AT TEN PUBLIC SAFETY SHOWS IN 2014 SO FAR: Government Higher Education Hospitality Public Safety Enterprise 866
Slide 32: Growth Pillars: Product Innovation
32 GROWTH PILLARS: PRODUCT INNOVATION PHYSICIAN ADVISORY BOARD Quarterly Meetings Active physician engagement PRODUCT INNOVATION Strategy: Innovate in Web, Cloud & Mobile technologies • Added 2 Stanford CMIOs • Adding CNO Launch of Spok Mobile™ secure communications app MEMBERS 350 ORGANIZATIONS 200
Slide 33: Growth Pillars: M&A
33 GROWTH PILLARS: M&A ACTIVELY PURSUING MERGERS & ACQUISITIONS Strategy: Target accretive, long-term growth and leverage DTAs 2014 BALANCE SHEET “Spok is evaluating adjacent technology companies that are accretive, offer meaningful growth and allow us to leverage our sizable tax assets…” No Debt Si
Slide 34: Operations
OPERATIONS Hemant Goel Chief Operating Officer
Slide 35: Healthcare Industry Technology Trends
35 HEALTHCARE INDUSTRY TECHNOLOGY TRENDS MOBILE DEVICE USE AND BYOD MEDICAL IDENTITY THEFT CLOUD COMPUTING CARE TEAM MOBILITY AND IMPROVED WORKFLOW Sources of Trends: • “5 Trends For Health CIOs In 2014” – InformationWeek Healthcare. Article link • “Health IT Trends for 2014” – CDW Industry View. Ar
Slide 36: How Spok Meets These Needs
36 • Secure messaging that protects PHI • HIPAA-compliant communication solutions for healthcare • Ability to deliver clinical value across the device continuum • Support BYOD and hospital-issued devices including smartphones, tablets, Wi-Fi phones, and pagers • Care team enablement across all venue
Slide 37: How Spok Meets These Needs (continued)
37 • Access electronic data to deliver patient care context to enhance clinical communications HOW SPOK MEETS THESE NEEDS • Launched freemium secure messaging app • Developing a hosted offering for secure messaging • Developing SaaS call center solution for the midmarket CLOUD COMPUTING ELECTRONIC H
Slide 38: Hospitals Need Solutions to Improve Quality of Care and Patient Safety
38 (1) Improving America’s Hospitals: The Joint Commission’s Annual Report on Quality and Safety HOSPITALS NEED SOLUTIONS TO IMPROVE QUALITY OF CARE AND PATIENT SAFETY • Inadequate communication is the main cause of sentinel events in hospitals(1) • Spok customer experiences illustrate need for rapi
Slide 39: Spok Delivers Quality of Patient Care and Safety Improvements
39 SPOK DELIVERS QUALITY OF PATIENT CARE AND SAFETY IMPROVEMENTS RESULTS: Reduced pediatric mortality by 21% (saving 24 children annually) RESULTS: Reduced “door-to-balloon” time from 129 to 68 minutes for heart attack patients RESULTS: Time required to rally additional staff in response to major ac
Slide 40: Hospitals Need Solutions to Improve Patient and Clinician Satisfaction
40 (1) Improving America’s Hospitals: The Joint Commission’s Annual Report on Quality and Safety HOSPITALS NEED SOLUTIONS TO IMPROVE PATIENT AND CLINICIAN SATISFACTION • Legislation links hospital reimbursement to patient satisfaction(1) • Clinicians are demanding better communication solutions • Sp
Slide 41: Spok Delivers Improved Patient and Clinician Satisfaction
41 SPOK SOLUTION: Clinical Alerting RESULTS: More rapid response time to patient requests and reduced nurse travel time RESULTS: Improved paging accuracy: 9,000 pages reached the right person 99.6% of the time SPOK SOLUTION: Contact Center RESULTS: Rapid response time to patient requests and reduced
Slide 42: Hospitals Need to Increase Productivity and Reduce Costs
42 HOSPITALS NEED TO INCREASE PRODUCTIVITY AND REDUCE COSTS • Improving productivity and reducing costs are imperatives • Spok customer experiences illustrate need for reduced costs and increased productivity – Tracking down clinicians consumes caregiver time – Patient requests, growth in alarms inc
Slide 43: Spok Delivers Increased Productivity and Reduced Costs
43 SPOK DELIVERS INCREASED PRODUCTIVITY AND REDUCED COSTS SPOK SOLUTION: Contact Center (Operator Console) RESULTS: Automation reduced agents from 48 to 22 and improved call completion rate to 92% (annual savings of $1 million) RESULTS: Reduced agent-processed calls by 20% (Processes 2,800 pages per
Slide 44: Sales
SALES Gary Ash Global Executive Vice President of Sales
Slide 45: Sales Overview – Building a World-Class Sales Organization
45 SALES OVERVIEW – BUILDING A WORLD-CLASS SALES ORGANIZATION Sean Collins SVP: Americas Steve Armstrong RVP: EMEA John Jordan RVP: APAC Investing In Top Sales Talent Investing in Best-in-Class Sales Process and Support Strong 2014 Sales Momentum Successful Global Sales Strategy
Slide 46: Strong Sales Momentum
46 105% 2012 > 100% 2014 est. STRONG SALES MOMENTUM Consistent Performance in Wireless and Sustained Growth in Bookings Software Bookings Growth $33 Million 2012 $35 Million 2013 > $40 Million 2014 est. Wireless Revenue Attainment 104% 2013
Slide 47: Investing in Top Talent
47 INVESTING IN TOP TALENT 2012-2014: Increase in Sales Talent Americas: Expanded in new markets including Federal, VA, Canada APAC: Increased FTE – Sales (66%), Services/Support (43%) EMEA: New Regional Vice President, added UK/London, Dubai/UAE Sales Ensuring Sales Success “Investments in new tale
Slide 48: Best-in-Class Sales Process – Buyer Focused
48 BEST-IN-CLASS SALES PROCESS – BUYER FOCUSED Not in Market Stimulated Problem Definition Options Evaluation Preferred Option Final Approval Implement Self-Guided Sales-Assisted Aligning our sales processes with new buying behaviors and training on social selling to achieve success The new buyer
Slide 49: Deal Anatomy – Large Northwestern Hospital System
49 DEAL ANATOMY – LARGE NORTHWESTERN HOSPITAL SYSTEM Sales Process • Lengthy, complex process where competitors were pitted against each other • Responded then worked to differentiate our product • Demonstrated capabilities and ability to meet the need and solve the issues • Built a broad base of in
Slide 50: Investing in Sales Operations and Support
50 INVESTING IN SALES OPERATIONS AND SUPPORT Sales Enablement Technology & Tools Business Analytics Process & Operations Training & Sales Comm. Consolidation of Wireless and Software Sales Operations – New Sales Operations Leader New Sales Trainer – sales process, product, sales onboarding Salesforc
Slide 51: Ensuring a Successful Global Sales Strategy
51 ENSURING A SUCCESSFUL GLOBAL SALES STRATEGY 2015 APAC: Healthcare, Mobile, Gaming, Hospitality Large System Integrators, Consultants, Builders, Technology Partners, Expanded Direct Sales Distribution EMEA: Healthcare and Mobile Partner Orientation, Focus on Patient Experience in the ME, Efficienc
Slide 52: Marketing
MARKETING Donna Scott Senior Vice President of Marketing
Slide 53: Marketing Overview
53 MARKETING OVERVIEW BRAND AWARENESS LEAD GENERATION SALES SUPPORT PR and social media drip campaigns customer relations whitepapers, case studies & eBriefs website tradeshows Search Engine Optimization MARKETING TEAM videos
Slide 54: Rebranding
54 REBRANDING Front page of business section: At Spok, crisis communication is ‘about minutes and seconds’ It’s about movement, strength, reliability and speed…all the things you need in your critical communications. Integral part of a greater whole: like the spokes of a wheel, each supporting the o
Slide 55: Marketing: Nurturing the Prospect
55 Intro via high-value educational content Know Spok Like Spok Buy from us Come back for more Marketing: Nurturing the Prospect * Sources: http://stevepatticmo.com/category/lead-generation-2/ http://www.curata.com/blog/the-buyers-journey-demystified-by-forrester/ CONTENT MARKETING B2B buyers comple
Slide 56: Marketing Automation: Lead Generation
56 Marketing Automation LEAD GENERATION Leads Marketing Qualified Leads Pipeline Contribution Closed Won • 137% of Plan YTD • Breaking records for Monthly MQLs • 34% Increase in MQLs • 40% Increase in Public Safety MQLs • 18% Increase in Pipeline Contribution
Slide 57: Marketing: Alignment with Strategy
57 MARKETING: ALIGNMENT WITH STRATEGY VERTICAL MARKETS MID-MARKET HEALTHCARE INTERNATIONAL PRODUCT INNOVATION 2014 •Spok Mobile Spheres •B2C Marketing Approach •500K Impressions-Twitter •350K Impressions-Facebook 2015 •25% Increase in marketing investment 2014 •12 Spok webinars • 3 Spok seminars •8
Slide 58: Finance
FINANCE Shawn Endsley Chief Financial Officer
Slide 59: Grow Our Software Bookings and Revenue: Bookings
59 GROW OUR SOFTWARE BOOKINGS AND REVENUE Software Bookings - Cumulative M ill ion s * *The software business was acquired on March 3, 2011. $8.7 $7.0 $8.8 $8.8 $16.6 $14.3 $17.4 $19.9 $25.1 $23.8 $26.5 $32.4 $32.7 $33.2 $35.1 $- $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 $35.0 $40.0 2011 2012 2013 2014 1Q
Slide 60: Grow Our Software Bookings and Revenue: Revenue
60 GROW OUR SOFTWARE BOOKINGS AND REVENUE Software Revenue $20.2 $25.4 $32.4 $20.7 $25.5 $13.8 $25.9 $27.9 $20.8 $22.8 $0.0 $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 $35.0 2011 2012 2013 2013 2014 M ill ion s Through 3Q TOTAL: $34.0 TOTAL: $51.3 TOTAL: $60.3 TOTAL: $41.5 TOTAL: $48.3 Growth: 17.5% Growth:
Slide 61: Retain Our Profitable Wireless Subscribers
61 RETAIN OUR PROFITABLE WIRELESS SUBSCRIBERS Annual Subscriber Trends (Direct) Thou san d s Direct Gross Additions & Gross Add Rate Direct Disconnects & Gross Churn Rate Total Net Unit Change & Net Churn Rate 750 375 0 (375) (750) (1,125) (1,500) 578 14.1% 433 12.4% 325 11.5% 269 12.3% 220 11.7% 18
Slide 62: Conservatively Return Capital to Shareholders: 2004-2014
62 CONSERVATIVELY RETURN CAPITAL TO SHAREHOLDERS: 2004-2014 Return of capital: $485.5 million returned to shareholders • $425.7 million Dividends • 6.3 million shares of common stock repurchased for $59.8 million $85.8 $230.8 $350.2 $456.4 $554.0 $636.1 $708.7 $771.9 $829.3 $879.6 $905.6 $0 $100 $20
Slide 63: Conservatively Return Capital to Shareholders: Total Return
63 CONSERVATIVELY RETURN CAPITAL TO SHAREHOLDERS: TOTAL RETURN Spok has materially outperformed other small-cap dividend paying companies¹ and other Telecom companies since lowering its quarterly dividend to $0.25 per share in May 2008 Spok +126.2% Spok + Dividends +227.2% Telecom +0.7% Software +90
Slide 64: Implementation of Our Strategy
64 IMPLEMENTATION OF OUR STRATEGY • Shown the ability to exceed customer expectations through good times and bad • Maintain high standards of legal and regulatory compliance • Provide detailed public information on our business – Full Disclosure • Demonstrate strong financial performance and balance
Slide 65: Human Resources
HUMAN RESOURCES Bonnie Culp Executive Vice President of Human Resources
Slide 66: Investing in Top Talent: Recruiting & Onboarding
66 INVESTING IN TOP TALENT Turn Candidates into Contributors Enhance Engagement from Recruiting to Hire Expedite Forms Completion & Approvals Verify Employment Eligibility Integrate Background Verification Automate Provisioning & Access to Systems Streamline Compliance Reporting • Increase new emplo
Slide 67: Building a World-Class Organization
67 BUILDING A WORLD-CLASS ORGANIZATION Career History submission Early verification of details Interview Guide & Interview Teams The key to building a superior company is the ongoing ability to recruit and retain superior personnel.1 1 Smart, Bradford D., and Greg Alexander. Topgrading for Sales: Wo
Slide 68: Planning for International Expansion
68 PLANNING FOR INTERNATIONAL EXPANSION As we expand internationally, we monitor the country’s reputation for corruption using Transparency International’s survey results. Our locations and their actual rankings are: Minneapolis, MN Jacksonville, FL New York, NY Bedford, NH London Dubai Perth Plano,
Slide 69: International Expansion & Compliance
69 INTERNATIONAL EXPANSION & COMPLIANCE • 29 Int’l Cleared • 40 U.S. Cleared “Partner Referral Notice” Sales Rep Recommendation “Partner Questionnaire” completed by Partner Compliance Committee reviews questionnaires, assesses risk to Company Restricted Party Check of 200+ Lists If higher risk: more
Slide 70: Supporting Global Compliance
70 SUPPORTING GLOBAL COMPLIANCE Corporate Compliance Program Leadership Risk Assessment Standards & Controls Training Oversight Leadership Involvement, Tone at the Top, Chief Compliance Officer Reports to Audit Committee Risk-Based Due Diligence: Country, Industry/Sector, Partner, Deal, Business Opp
Slide 71: Information Systems and Technology
INFORMATION SYSTEMS AND TECHNOLOGY Tom Saine Chief Information Officer
Slide 72: Systems Integration
72 SYSTEMS INTEGRATION • SalesForce.com – Consolidating all Customer Resource Management (CRM) functions onto the Sales Cloud – Consolidating all Incident Management functions onto the Services Cloud – Expanding use of add-on tools for Marketing and Sales support – Integrating Project Management and
Slide 73: Security
73 SECURITY • Multilayered Security Framework – HIPAA and PCI compliant security policies and procedures – Hardware and software security appliances (firewalls, DMZ, Anti- Virus, SPAM Blocking, Syslog monitoring, etc.) – Executive level Risk Assessment and Breach Response Team – Business Continuity
Slide 74: Messaging Architecture
74 MESSAGING ARCHITECTURE • Technology Refresh – All primary markets converted to commercially available 2way satellite (VSAT) network using two satellites and two geographically separated uplinks – Ported paging terminal and encoder software to open systems Linux environment running on commercial o
Slide 75: Survivable Architecture
75 SURVIVABLE ARCHITECTURE • Our network sites are deployed to provide overlapping coverage • Devices communicate with multiple towers at the same time • We provide built-in messaging redundancy where dependence on a single tower is minimized • Because paging is a business traffic network, it is not
Slide 76: Information Technology Architecture
76 INFORMATION TECHNOLOGY ARCHITECTURE • Expanding and upgrading development and sales demo environments • Conducting SOC2 Type II audit of Plano datacenter in preparation for SaaS offerings • Consolidating server environments into Plano datacenter where possible • Upgrading phone system to support
Slide 77: Governance
GOVERNANCE Sharon Woods Keisling Corporate Secretary and Treasurer
Slide 78: Organization Structure
78 ORGANIZATION STRUCTURE SPOK Holdings, Inc. SPOK Canada (Canadian) SPOK, Inc. SPOK AUS Pty Ltd (Australian Corp) SPOK Middle East, Inc. SPOK Philippines (Philippines) In July 2014, our organization structure was streamlined to reflect one name and one management team Amcom Software, Inc. and USA M
Slide 79: Annual Meeting 2014
79 ANNUAL MEETING 2014 Due to short window between ISS’ report and our meeting, management had little time to contact shareholders, explain the issues and seek support. Even with minimal time, the vote on NEO compensation almost passed. Directors unanimously elected and auditors ratified while advis
Slide 80: 2015 Compensation Review
80 2015 COMPENSATION REVIEW • Engaged a compensation consultant who has assisted in identifying a new peer group and provided benchmarking data for compensation analysis • Continue to engage ISS consultation services • Initiated Shareholder Outreach Program • Ensured tax gross-ups were removed from
Slide 81: Creating Long-Term Shareholder Value
81 CREATING LONG-TERM SHAREHOLDER VALUE Bob Lougee Investor Relations 800-611-8488 Sharon Woods Keisling Corporate Secretary 703-269-6905 Investor Inquiries • Spok is focused on and committed to creating long-term shareholder value • We look forward to finishing the year strong and making progress a
Slide 82: Wrap-Up
®spok WRAP-UP Vince Kelly CEO
Slide 83: Wrap Up – Looking Ahead
83 • Investment in research and development • Investment in sales and marketing resources • Targeted acquisition plan • Return of capital to stockholders in the form of cash distributions and share repurchases • Many years of industry experience in both wireless and software businesses • Internation
Slide 84: Questions and Discussion
®spok QUESTIONS AND DISCUSSION