Slide 1: Integrated Research Limited FY2008 financial results
For personal use only Integrated Research Limited FY2008 financial results ABN: 76 003 588 449 August 2008 Investor Presentation Precise performance monitoring for business-critical systems
Slide 2: A Solid Result in a Turbulent Year
A Solid Result in a Turbulent Year For personal use only • Net profit after tax up 6% on last year to $5.8m • New licence sales up 1% to $19.6m • Total revenue up 3% to $37.4m • Result impacted by: • Higher AUD • Slowdown in US economy Precise performance monitoring for business-critical systems
Slide 3: Financial results
Financial results For personal use only 30 June 2008 30 June 2007 % change A$000’s A$000’s Licence fees 19,623 19,517 1% Maintenance fees 16,344 15,856 3% Other 1,417 1,004 41% Total revenue 37,384 36,377 3% R&D expenses 8,717 6,369 37% Sales & Marketing 17,114 18,923 (10%) General & Admin 4,345 4,1
Slide 4: Balance sheet
Balance sheet For personal use only Key balance sheet items 30 June 2008 30 June 2007 A$000’s A$000’s Cash at bank 11,148 11,704 Receivables 10,157 11,300 Development cap. 12,641 11,365 Deferred Revenue 9,293 10,741 Net assets 23,791 24,153 Precise performance monitoring for business-critical system
Slide 5: Cash Flow
Cash Flow For personal use only • Cashflow from Operating Activities was A$5.9m (2007: A$7.6m) • Capex for 2008 was A$0.4m (2007: A$2.4m) • Low bad debt experience • Blue chip customers • Currency Impact Precise performance monitoring for business-critical systems
Slide 6: R&D spending
R&D spending For personal use only 30 June 2008 30 June 2007 % change A$000’s A$000’s Gross spending 10,098 7,831 29% Development – Cap. 7,255 5,454 33% Capitalised % 72% 70% Amortised 5,874 3,992 47% Net Expense 8,717 6,369 37% % of revenue 23% 18% • Major release of all products in FY08 • IPT: Sup
Slide 7: Review of Operations – By Segment
Review of Operations – By Segment For personal use only 30 June 2008 30 June 2007 % change $000’s $000’s Revenue by Geographic region: Americas ($US) 20,720 17,063 21% Europe (GBP) 2,863 2,821 1% Asia Pacific ($A) 7,357 7,198 2% • US scaling well • Europe and Asia mixed results Precise performance m
Slide 8: Review of Operations – By Product
Review of Operations – By Product For personal use only 30 June 2008 30 June 2007 % change $000’s $000’s Billings by Product Line ($A): NonStop 22,642 25,816 (12%) IP Telephony 7,345 7,807 (6%) Windows / Unix / Linux 5,528 3,476 59% Total ($A) 35,516 37,099 (4%) • Not adjusted for currency impact Pr
Slide 9: Effect of Higher Rising AUD
Effect of Higher Rising AUD For personal use only • Movement in currency adversely impacted results • Removing effects of currency: • Revenue up 14% to $41.3m • NPAT up 42% to $7.7m Impact of Currency on Revenue Growth Impact of Currency on PAT Growth ($’000) ($’000) 8,000 45,000 - 40,000 - 7,000 4,
Slide 10: Rising AUD Long Term Impact (A$)
Rising AUD Long Term Impact For personal use only 10-year revenue history – A$ millions $40.0 $35.0 $30.0 $25.0 $20.0 $15.0 $10.0 $5.0 $0.0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Licence Revenue Maintenance Revenue Other Revenue Precise performance monitoring for business-critical systems
Slide 11: Rising AUD Long Term Impact (US$)
Rising AUD Long Term Impact For personal use only 10-year revenue history – US$ millions $35.0 $30.0 $25.0 $20.0 $15.0 $10.0 $5.0 $0.0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Licence Revenue Maintenance Revenue Other Revenue Precise performance monitoring for business-critical systems
Slide 12: Newer Products Growing
Newer Products Growing For personal use only • Windows / Unix and IPT revenue growing steadily • Not adjusted for currency impact 14,000 12,000 10,000 AUD 8,000 ($’000) Windows / Unix 6,000 Revenue IPT Revenue 4,000 2,000 - 2001 2002 2003 2004 2005 2006 2007 2008 Precise performance monitoring for b
Slide 13: Underlying Trends for IPT Very Solid
Underlying Trends for IPT Very Solid For personal use only • IP phone lines will surpass TDM lines by 2009 (Infonetics) • Process and productivity demands will drive the move to IP- based Unified Communications (Gartner) • Communication and business applications will converge • Fixed and mobile netw
Slide 14: Windows / Unix Products Proven
Windows / Unix Products Proven For personal use only • Major deals in 2008 • Wins against ‘Big 4’ competitors • Enterprise Non-Stop customers who value our product • Proven player in $7bn+ market Precise performance monitoring for business-critical systems
Slide 15: Strategy
Strategy For personal use only • Continue to invest in R&D for the longer term • New products and extensions • Increase market coverage • Adding sales heads • Target prime markets • Increase channel focus • Anticipate further turbulence • Caution regarding impact of US economy • Falling AUD an oppor