Slide 1: Q2 Fiscal 2009 Financial Results Conference Call
Q2 Fiscal 2009 Financial Results Conference Call Thursday, May 7, 2009 4:30 p.m. ET
Slide 2: Safe Harbor Statement & Non-GAAP Financial Measures
Safe Harbor Statement & Non-GAAP Financial Measures "Safe Harbor" Statement under the U.S. Private Securities Litigation Reform Act of 1995; certain matters in this presentation, including forecasts of future demand and future Company performance, are forward-looking statements that are subject to r
Slide 3: Restructuring and Cost Control Reduce Pass Through from Revenue Decline
Restructuring and Cost Control Reduce Pass Through from Revenue Decline $millions Q1 Q2 Change Revenues $ 73.4 $ 37.3 ($ 36.1) Gross Profit (Loss) 6.4 ( 3.7) ( 10.1) Research & Development 9.3 7.7 1.6 SG&A, continuing 25.8 21.6 4.2 Equity investigation 1.8 3.6 ( 1.8) Operating Loss before Special Ch
Slide 4: Driving Down Quarterly Breakeven Below Prior Target Levels
Driving Down Quarterly Breakeven Below Prior Target Levels Q U A R T E R L Y $ M I L L I O N S
Slide 5: Revenues Reflect Market Declines and OEM Inventory Holdings
Revenues Reflect Market Declines and OEM Inventory Holdings Management did not provide specific revenue guidance for the quarter Revenues declined by 49% $millions Q1 Q2 9 Semiconductor OEM's $ 25.1 $ 8.5 Other customers 47.3 28.8 Total $ 73.4 $ 37.3 Semiconductor 66% 65% Other markets 34% 35%
Slide 6: Q2 reflects over $40 million annualized cost reduction
Q2 reflects over $40 million annualized cost reduction Q1 $ 73.4 ($ 30.5) Products & service revenue declines ( 35.5) ( 15.0) Manufacturing and service cost reductions 5.0 License income ( 0.6) ( 0.6) Research & development cost reductions 1.6 SG&A cost reductions 3.0 Discretionary costs in 1st quar
Slide 7: Special charges impact GAAP Net Income
Special charges impact GAAP Net Income $ millions Q1 Q2 Comments on Sequential Trends Operating loss before Special Charges ($ 30.5) ($ 36.5) Special charges ( 5.3) ( 116.4) Goodwill & asset impairments; restructuring related expenses Interest income, net 0.8 0.6 Declining rate environment and reduc
Slide 8: Loss Per Share Impact of Special Charges
Loss Per Share Impact of Special Charges Impairment of Goodwill and Intangibles Severance and inventory write-offs from realignment of the company $ millions Q1 $m Q2 $m Q1 LPS Q2 LPS Loss before Special charges ( 29.8) ( 36.2) ($0.48) ($0.58) Impairment charges - ( 106.9) - ($1.70) Restructuring re
Slide 9: Cash utilization
Cash utilization Adjusted LBITDA ($ 26.7) Restructuring cash flow ( 4.9) Net Interest income 0.6 Change in assets 5.7 Cash flow from Continuing Operations ( 25.3) Capital Expenditures ( 4.0) Currency and other ( 0.2) Net Change in Cash and Marketable Investments ($ 29.5) A reconciliation of Adjusted
Slide 10: Critical Balance Sheet accounts
Critical Balance Sheet accounts $ millions December 2008 March 2009 Comments on Sequential Trends Cash and Marketable Securities 159.6 130.2 Accounts receivable, net 40.9 25.6 DSO moves out to 62 days with stronger late quarter revenues Inventories, net 109.6 98.5 Gross inventory reduction of $5.6 m
Slide 11: Critical Solutions Segment
Critical Solutions Segment $ millions Q1 Q2 Comments on Sequential Trends Revenues $35.9 $17.2 52% decline Gross Profit before amortization & special charges 7.7 1.0 37% flow through of revenue declines after cost reductions GAAP Gross Profit 6.7 ( 0.1) Operating Expenses 15.7 13.0 Removal of duplic
Slide 12: Systems Solutions Segment
Systems Solutions Segment $ millions Q1 Q2 Comments on Sequential Trends Revenues $22.6 $8.2 64% decline Gross Loss before amortization & special charges ( 1.6) ( 3.6) 14% net flow through of revenue declines after cost reductions GAAP Gross Loss ( 1.7) ( 5.9) Carrying surplus Extended Factory capac
Slide 13: Global Customer Operations
Global Customer Operations $ millions Q1 Q2 Comments on Sequential Trends Revenues $14.9 $11.8 21% decline Gross Profit before amortization & special charges 2.6 1.4 40% net flow through of revenue decline after cost reduction GAAP Gross Profit 1.4 ( 1.3) Underleveraged global service & repair infra
Slide 14: Driving Down Breakeven Below Prior Target Levels
Driving Down Breakeven Below Prior Target Levels Q U A R T E R L Y $ M I L L I O N S
Slide 15: Looking Forward
Looking Forward Continued limited business visibility Targeting Adjusted EBITDA, "Cash", breakeven towards $70 million exiting the June quarter Inventory reduction plans our regular focus Regular cash utilization targeted at below $10 million after the June quarter
Slide 16: Q2 Fiscal 2009 Financial Results Conference Call
Q2 Fiscal 2009 Financial Results Conference Call Thursday, May 7, 2009 4:30 p.m. ET
Slide 17: Supplemental Data
Supplemental Data New segment reporting - results for past 6 quarters
Slide 18: Critical Solutions Group - "CSG"
Critical Solutions Group - "CSG"
Slide 19: Systems Solutions Group - "SSG"
Systems Solutions Group - "SSG"
Slide 20: Global Customer Operations Group - "GCOG"
Global Customer Operations Group - "GCOG"
Slide 21: Q2 Fiscal 2009 Financial Results Conference Call
Q2 Fiscal 2009 Financial Results Conference Call Thursday, May 7, 2009 4:30 p.m. ET