Mercury Systems Inc · NASDAQ:MRCY
Mercury Systems — Mercury Computer Systems — Investor Day (November 2010)
80 slides from Mercury Systems's investor day presentation, Nov 10, 2010
Slide 1: Eleventh Annual Investor Conference
© 2010 Mercury Computer Systems, Inc. Eleventh Annual Investor Conference November 10, 2010 New York, NY Exhibit 99.1
Slide 2: Forward-looking statements
© 2010 Mercury Computer Systems, Inc. This presentation contains certain forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995, including those relating to fiscal 2011 business performance and beyond and the Company’s plans for growth and improve
Slide 3: Agenda
© 2010 Mercury Computer Systems, Inc. • Corporate Overview – Mark Aslett, President & CEO • Keynote: ADM Edmund P. Giambastiani (USN Ret) Former Vice Chair, US Joint Chiefs of Staff • Coffee Break (20 min) • Mercury Federal Systems (MFS) • Advanced Computing Solutions (ACS) • Financial Review • Clos
Slide 4: Introducing Mercury Computer Systems
© 2010 Mercury Computer Systems, Inc. • MRCY on NASDAQ • 500+ employees worldwide • FY10 revenues of $200M, 15% Adj. EBITDA • Defense revenue ~80% and 42% growth (12% CAGR) FY07–10 • Real-time digital image, signal and sensor processing solutions • Advanced Computing Solutions (ACS), Mercury Federal
Slide 5: The Mercury executive team
© 2010 Mercury Computer Systems, Inc. The Mercury executive team Gerald M. Haines II SVP Corporate Development David R. Martinez President, MFS Mark Aslett President & CEO Robert E. Hult CFO & Treasurer Didier M.C. Thibaud SVP & GM, ACS Craig A. Saline SVP Human Resources Dr. Ian Dunn CTO, ACS Steph
Slide 6: The Mercury board of directors
© 2010 Mercury Computer Systems, Inc. The Mercury board of directors George W. Chamillard Retired Chairman & CEO, Teradyne Inc. Vincent Vitto Chairman of the Board Retired President & CEO, Draper Labs George K. Muellner Retired President, Advanced Systems for Integrated Defense Systems, Boeing; Form
Slide 7: Mercury continues to transform and grow
First two phases complete. Focused on growth and acquisitions © 2010 Mercury Computer Systems, Inc. Mercury continues to transform and grow
Slide 8: FY07-FY10: Restored profitability and growth
© 2010 Mercury Computer Systems, Inc. FY07 – FY10: Restored profitability and growth Defense 42% growth (12% CAGR) since FY07. FY10 Adjusted EBITDA 15% Not Reported Notes: • FY07 figures are as reported in the Company’s fiscal 2007 form 10K and have not been restated for discontinued operations. • F
Slide 9: Mercury's vision
Transform Mercury’s profile and market position from a commercial item (“COTS”) vendor to the Primes to a “National Asset” and critical component of the Prime, DoD and Intelligence Community industrial base for affordable Intelligence, Surveillance and Reconaissance subsystems and capabilities Best-
Slide 10: Prime contractor customers
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Slide 17: C4ISR spending is approx 6% of total DoD spending annually
C4ISR spending is approx 6% of total DoD spending annually © 2010 Mercury Computer Systems, Inc. • DoD budget projections are: – $667B in 2009 – $693B in 2010 – $708B in 2011 • Frost & Sullivan DoD C4ISR spending: – $41.2B in 2009 – $42.7B in 2010 – $43.3B in 2011 DoD budget request and C4ISR foreca
Slide 18: DoD focused on better buying power
DoD focused on better buying power through government and industry productivity growth © 2010 Mercury Computer Systems, Inc. • Topline DoD budget pressure • 2-3% budget growth in real terms • Save $100B in overhead over 5 years • Provide the war fighting capability our Nation needs with the dollars
Slide 19: DoD focused on better buying power
© 2010 Mercury Computer Systems, Inc. DoD focused on better buying power through government and industry productivity growth 1. Target affordability and control cost growth 2. Incent productivity and industry innovation 3. Promote real competition 4. Improve tradecraft in services acquisition 5. Red
Slide 20: DoD focused on better buying power
© 2010 Mercury Computer Systems, Inc. 1. Target affordability and control cost growth 2. Incent productivity and industry innovation 3. Promote real competition 4. Improve tradecraft in services acquisition 5. Reduce non-productive processes and bureaucracy DoD focused on better buying power through
Slide 21: Primes moving to outsourcing with best-of-breed partners
• Reduce risk (technical – programmatic – business) • Increase P-Win on must win new programs and upgrades • Maintain or improve margins under firm fixed contract awards • Compress development and deployment cycles • Differentiate from competition with less IRAD • Turn fixed operating costs to varia
Slide 22: Approaches Primes have used over the years
© 2010 Mercury Computer Systems, Inc. Let’s look at these in more detail … Best-of-breed Open and extensible subsystem solution - choices from best among eco-system Catalog / COTS boards Integrate commodity solution In-house make vs. buy Internal development 18 © 2010 Mercury Computer Systems, Inc.
Slide 23: Mercury is helping the Primes succeed
© 2010 Mercury Computer Systems, Inc. Catalog / COTS boards Best-of-breed subsystem In-house make vs. buy Mercury is helping the Primes succeed in this new environment © 2010 Mercury Computer Systems, Inc. Evaluation of alternative approaches from Prime’s viewpoint Lowest Risk Least Cost Reduced Tim
Slide 24: Our business model evolved significantly in FY08
© 2010 Mercury Computer Systems, Inc. • Forward looking business model established FY08 – ACS Services and Systems Integration – Mercury Federal Systems • Focused on application ready and ISR subsystems • ACS application ready ‘White Box’ subsystems to Primes • MFS classified, platform ready ISR ‘Bl
Slide 25: What is an application ready ISR subsystem?
EO/IR C4I EW Radar EO/IR • Customizable configurations: – Open, best-of-breed building blocks from Mercury and 3 parties – From RF to visualization – SWaP and performance optimized – Application middleware: portability, scalability, high availability, virtualization – Prime ISR application ready – P
Slide 26: Application middleware and systems expertise differentiate us
If you want a system you need to buy it from a systems vendor ACS SSI Primes Primes Primes Traditional / Competition MFS Prime, MFS or Gov’t Application or IP Open, Best-of-breed, Platform Ready, ISR Subsystem ‘Black Box’ © 2010 Mercury Computer Systems, Inc. Mercury’s application middleware and sys
Slide 27: 'White Box' success story - Ground Missile Defense
© 2010 Mercury Computer Systems, Inc. ‘White Box’ success story – Ground Missile Defense ACS SSI services-led sale leads to production subsystem annuity stream PROGRAM BACKGROUND: • Prime embraced outsourcing. 80% external vs 20% last time around • Desired best-of-breed partners • Rapidly needed ope
Slide 28: 'Black Box' success story - Wide Area Persistent ISR
© 2010 Mercury Computer Systems, Inc. ‘Black Box’ success story – Wide Area Persistent ISR MFS services-led sale leads to production subsystem annuity stream PROGRAM BACKGROUND: • Real-time full motion video direct to troops at tactical edge day and night • QRC phase 1 deployment ~12 months QRC phas
Slide 29: MFS and ACS capability and flexibility
• DCAA contracting business model • Top secret / SCI personnel • Leverages $40M ACS product and subsystem IRAD investments • Enhances ACS application ready ‘White Box’ with classified IP • Platform ready, affordable ISR ‘Black Box’ subsystems • Uniquely positioned to transition IP from Government la
Slide 30: Acquisition strategy
Best-of-breed provider of commercially developed, open application ready and multi-INT subsystems for the ISR market © 2010 Mercury Computer Systems, Inc. Acquisition strategy 1. Strengthen and grow the core ACS Defense business: – Extend / enhance current product portfolio to include RF, mission co
Slide 31: Acquisition candidate likely characteristics
Best-of-breed provider of commercially developed, open application ready and multi-INT subsystems for the ISR market © 2010 Mercury Computer Systems, Inc. Acquisition candidate likely characteristics: • Focused on ACS product line extensions and ISR business platform for MFS • Businesses that are pr
Slide 32: Positioned for growth in a changing industry
© 2010 Mercury Computer Systems, Inc. Continuing to build a pure-play, best-of-breed ISR subsystems and technology-enabled software and services company © 2010 Mercury Computer Systems, Inc. Positioned for growth in a changing industry • Focused on growing ISR market – strong position on important,
Slide 33: Agenda
© 2010 Mercury Computer Systems, Inc. • Corporate Overview • Keynote: ADM Edmund P. Giambastiani (USN Ret) Former Vice Chair, US Joint Chiefs of Staff • Coffee Break (20 min) • Mercury Federal Systems (MFS) • Advanced Computing Solutions (ACS) • Financial Review • Closing Remarks / Q&A Agenda
Slide 34: Keynote outline
© 2010 Mercury Computer Systems, Inc. • Opening remarks • DoD efficiency initiatives, acquisition reform and affordability • DoD budget outlook • Addressing today’s wars and tomorrow’s potential conflicts • Program implications for ISR – and Mercury • Summary Outline
Slide 35: Agenda
• Corporate Overview • Keynote: ADM Edmund P. Giambastiani (USN Ret) Former Vice Chair, US Joint Chiefs of Staff • Coffee Break (20 min) • Mercury Federal Systems (MFS) – David Martinez, President • Advanced Computing Solutions (ACS) • Financial Review • Closing Remarks / Q&A Agenda © 2010 Mercury C
Slide 36: MFS in the context of Mercury's five defense growth drivers
© 2010 Mercury Computer Systems, Inc. © 2010 Mercury Computer Systems, Inc. • UAV EO/IR QRC & production • SIGINT QRC & production • ISR government labs IP transfer • Best-of-breed solution provider • Classified ISR subsystems Growth based organically and through acquisitions MFS in the context of M
Slide 37: US DoD C4ISR: Technology roadmap and trends
Mercury well positioned given its capabilities and programs Intelligence Surveillance and Reconnaissance Electronic Warfare Information Operations Focus on COMINT, MTI and FMV. Cross cueing and interoperability for geolocation Tactical and strategic computing supporting all source intelligence with
Slide 38: US DoD C4ISR: Technology roadmap and trends
Mercury well positioned given its capabilities and programs Computers Command and Control Tactical Communications Embedded COTS for tactical users. Intel, GPUs, FPGAs. Shift to more open integrated subsystems New architectures and onboard for exploitation on smaller form factors Wearable, networked
Slide 39: Mercury Federal Systems: vision and approach
• Acquire companies with strong ISR capabilities • Team to force-multiply Mercury’s expertise • Transition gov’t IP: Labs, FFRDCs, UARCs, academia • Best-of-breed solutions across ISR spectrum • Emphasis on application ready subsystems critical to ISR market • Rapid and modular implementation of cla
Slide 40: Layered ISR architecture
• Wide area multi-INT persistent ISR • Find and precisely target enemy intents and activities • Monitor activity in difficult environments • Cross-platform cueing • Rapid capabilities at low cost: 80% solution OK Best-of-breed provider of commercially developed, open application ready and multi-INT
Slide 41: MFS business value-add evolving towards onboard exploitation
© 2010 Mercury Computer Systems, Inc. • Leveraging ACS building blocks • Deployed applications for onboard exploitation • Affordable and open architectures enabling rapid spiral development • Future growth driven by multi-INT net centric systems, software and services © 2010 Mercury Computer Systems
Slide 42: Migrating ground multi-INT to onboard platforms
© 2010 Mercury Computer Systems, Inc. Value of Timely Results: • Reduces amount of data processed on the ground • “Heavy lifting” onboard platform to address comm’s bottlenecks • Focuses analysts on transforming knowledge into action “ Analysts at the AF 480th ISRW review approximately 820 hours of
Slide 43: MFS major program: Persistent ISR airborne surveillance
© 2010 Mercury Computer Systems, Inc. Validation of ACS & MFS leadership and agility • Quick reaction capability with MFS as the payload provider • Partnered with other agile companies (Sierra Nevada Corp, ITT, BAE, L3, Adam Works) • Rapid prototyping and demonstration of best-of-breed • Real-time t
Slide 44: Growth into SIGINT market
© 2010 Mercury Computer Systems, Inc. • Interoperable COMINT systems • Modular ISR planning and collection • Scalable solutions to include different manned and unmanned platforms • Rapid integration at affordable costs – Prototypes – Low rate initial production – Full production Acquisition is focus
Slide 45: Delivered strong revenue growth since FY08 startup
• 95% revenue growth FY10 • Beginning FY11 backlog $2.7M • Next-generation persistent ISR program driving growth • Best-of-breed, ISR subsystem architect, developer & integrator • Leverages ACS application ready ISR subsystem solutions • Open platform-independent architectures © 2010 Mercury Compute
Slide 46: Growth opportunities for MFS
Innovative solutions at an affordable price Broad range of customers and government sponsors © 2010 Mercury Computer Systems, Inc. Growth opportunities for MFS • Multi-INT onboard processing • Initial focus is on EO/IR and COMINT • Leverage ACS investments • Transition government IP from lab to depl
Slide 47: Agenda
• Corporate Overview • Keynote: ADM Edmund P. Giambastiani (USN Ret) Former Vice Chair, US Joint Chiefs of Staff • Coffee Break (20 min) • Mercury Federal Systems (MFS) • Advanced Computing Solutions (ACS) – Didier Thibaud, SVP and GM, ACS business unit • Financial Review • Closing Remarks / Q&A Age
Slide 48: Advanced Computing Solutions (ACS)
• Focus on providing application ready subsystems for C4ISR • Leverage technologies and product between commercial and defense markets • Optimized performance for SWaP • Quick Response Capabilities (QRC) through service offerings • Defense continues its growth 11% CAGR; Radar (32% CAGR) and EO (29%
Slide 49: Commercial segment dynamics
© 2010 Mercury Computer Systems, Inc. • Semiconductor – Market rebounding – ASML in production – KT at end of cycle • Communication – Entering new area: 4G test equipment – New satellite communication systems in deployment • Homeland Security – Design wins still in development – New opportunities Co
Slide 50: Go-To-Market strategy driving growth
© 2010 Mercury Computer Systems, Inc. • Design wins: – New products & tech refresh – New customers – New segments • Services and Systems Integration: – Outsourcing by Primes – Application ready subsystems • Program production: – Missile defense – UAV radar/EW/EO/IR – Fighter radar – Airborne EW Well
Slide 51: Open architecture solutions driving design wins
Unique Value Driver RF Tuner Fastest tuning speed Best Signal to Noise Ratio Leader in DSP First OpenVPX architecture for Intel and GPU Highest density in storage Market Impact Meet next generation EW requirements Best detection in SIGINT Lead Radar, EW and WAAS markets First deployed system for UAV
Slide 52: ACS design wins
© 2010 Mercury Computer Systems, Inc. Defense Highlights • Aegis – Naval BMD, C4I • Patriot – Missile Defense • BAMS – SIGINT, Radar • Predator / Reaper – Radar • ASIP – Airborne SIGINT • JCREW – Ground SIGINT • SEWIP – Naval SIGINT • Cobra Ball – EO/IR • SSEE(F) – Naval SIGINT Commercial Highlights
Slide 53: SEWIP Block 2
© 2010 Mercury Computer Systems, Inc. • Next generation EW upgrade for NAVY • Deployment met compressed schedule for field test • Leveraged Mercury application expertise • Delivered best-of-breed application ready subsystem • EW performance-optimized Strong partnership with Prime driving content exp
Slide 54: Services and Systems Integration delivered 119% CAGR FY08-FY10
• 85% revenue growth FY10 • Expands addressable market • Outsourcing partner to Defense Primes given acquisition reform • Best-of-breed application ready ISR subsystem solutions • Services-led engagement leading to long-term platform production annuity streams © 2010 Mercury Computer Systems, Inc. S
Slide 55: aed
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Slide 56: JCREW 3.3: Next generation Counter IED
• 12 month development cycle: – Services and Systems Integration engagement – OpenVPX application ready building blocks – SWaP processing optimized • Previous generations high volume ground mobile – JCREW 2.1 25,000 systems – JCREW 3.2 5,000 systems • DoD to begin acquiring JCREW 3.3 systems in FY13
Slide 57: Positioned in major programs aligned to defense budget
Global Hawk BAMS F-35 SEWIP AEGIS Guardrail Sampson Patriot Predator Reaper Ocean Eye P8 THAAD F-16 JCREW 3.3 SSEE (E) SSEE (F) On key programs which are the foundation for growth © 2010 Mercury Computer Systems, Inc. Global Hawk BAMS F-35 SEWIP AEGIS Guardrail Sampson Patriot Predator Reaper Ocean
Slide 58: Aegis ballistic missile defense: SPY-1 BMD Radar
© 2010 Mercury Computer Systems, Inc. © 2010 Mercury Computer Systems, Inc. 54 • Program in production • $35M booked in FY10 • First systems installed on Aegis ships • 30+ ship upgrade scheduled over 5 years • Upside opportunities: – New data recorder design win in FY10 – Lockheed Martin awarded Aeg
Slide 59: Patriot missile defense: Next generation ground radar
© 2010 Mercury Computer Systems, Inc. © 2010 Mercury Computer Systems, Inc. $50M-$80M expected additional business over next 5 years • First award $18M – Development – UAE – Entering production • Second award received – Taiwan • Future awards: – < 12 months: Saudi Arabia, Turkey – > 12 months: Other
Slide 60: Well positioned for growth
© 2010 Mercury Computer Systems, Inc. Commercial stabilized; strong growth in defense • Focused on growing ISR market • Strategically positioned on important, well funded defense programs • Business model aligned with expected defense procurement reform • Outsourcing partner to the primes • Best-of-
Slide 61: Agenda
© 2010 Mercury Computer Systems, Inc. • Corporate Overview • Keynote: ADM Edmund P. Giambastiani (USN Ret) Former Vice Chair, US Joint Chiefs of Staff • Coffee Break (20 min) • Mercury Federal Systems (MFS) • Advanced Computing Solutions (ACS) • Financial Review – Bob Hult, CFO • Closing Remarks / Q
Slide 62: FY07-FY10: Restored profitability & growth
GAAP FY07 FY08 FY09 FY10 Revenue ($M) Gross Margin % Revenue Operating Expenses ($M) Op Income ($M) % Revenue EPS (Continuing) Adj EBITDA ($M) % Revenue Operating Cash Flow ($M) # Employees EOY © 2010 Mercury Computer Systems, Inc. FY07 – FY10: Restored profitability & growth 55.6% 57.8% 55.8% 56.3%
Slide 63: Major business dynamics
© 2010 Mercury Computer Systems, Inc. Major business dynamics Focus on strengthening and growing the defense business Note: Excludes $5M interco eliminations Note: Excludes $2M interco eliminations Note: FY07-10 figures adjusted for discontinued operations
Slide 64: Growth in bookings and backlog
© 2010 Mercury Computer Systems, Inc. Growth in bookings and backlog FY07-FY10 Defense CAGR: Bookings 10%, Backlog 10%, 12-month Backlog 18% Note: FY07-FY10 Total CAGR: Bookings 7%, Backlog 14%, 12-month Backlog 21%. FY07-10 figures adjusted for discontinued operations
Slide 65: FY07-FY10 profitability improves
© 2010 Mercury Computer Systems, Inc. FY07-FY10 profitability improves Notes: • FY07 figures are as reported in the Company’s fiscal 2007 form 10K and have not been restated for discontinued operations. • FY08 – FY10 figures are as reported in the Company’s fiscal 2010 form 10K. • FY10 Earnings per
Slide 66: Efficient working capital platform to support growth
© 2010 Mercury Computer Systems, Inc. • Supply chain transformation – Engineering methods – Investments in DFM – Operational efficiencies – Reduced lead times – Improved cost of quality – Inventory reduced $10M from Q3 FY08 to Q1 FY11 • Customer satisfaction – Blue chip customers – End-of-quarter sh
Slide 67: Much improved cash conversion cycle
© 2010 Mercury Computer Systems, Inc. Much improved cash conversion cycle Note: Cash conversion calculation = DSO’s + Inventory Days – A/P Days
Slide 68: Mercury's balance sheet poised for investment
Generating positive free cash flow from operations; zero debt © 2010 Mercury Computer Systems, Inc. Mercury’s balance sheet poised for investment Acquisition financing available Q1’11 ($M) Cash and marketable securities Other financing sources: • Operating line of credit • Acquisition line of credit
Slide 69: Robust target business model
© 2010 Mercury Computer Systems, Inc. • Target business model organic growth only • ACS / MFS approx 90% / 10% revenue split • High mix, low volume • R&D investments delivering significant added value • Increased services and systems integration • Services-led design wins lead to production subsyste
Slide 70: Results approaching the target business model
GAAP FY08 FY09 FY10 Target Business Model Revenue Gross Margin SG&A R&D Operating Income Adj EBITDA © 2010 Mercury Computer Systems, Inc. Results approaching the target business model Operating leverage with growth 100% 100% 100% 100% 58% 56% 56% 54+% 37% 29% 27% Low-mid 20’s 24% 22% 21% High Teens
Slide 71: Q1 FY11 year over year comparison (GAAP)
GAAP Q1 FY10 Q1 FY11 Delta Revenue ($M) Gross Margin % Revenue Operating Expenses ($M) Operating Income ($M) % Revenue Adj EBITDA EPS Op Cash Flow ($M) Total Backlog ($M) 12-mo Backlog($M) Q1 FY11 year over year comparison (GAAP) 10% 57.6% 58.8% 120 bps (3) 10.7% 10.1% (.6) pts $0.19 $0.16 ($0.03) 5
Slide 72: Q2 FY11 guidance
Q2 FY10 Actual Quarter Ending Dec 31, 2010 Low High $54 $55 $0.10 $0.12 $7.1 $7.7 2.4 2.8 1.3 1.3 0.0 0.0 0.0 0.0 (0.0) (0.0) 1.4 1.6 0.4 0.4 1.6 1.6 7.1 7.7 © 2010 Mercury Computer Systems, Inc. Revenues ($M) $45 GAAP EPS $0.08 Adj EBITDA ($M) $5.5 Note - Adj EBITDA Adjustments: ($M) Net Income (Co
Slide 73: Last 13 quarters revenues and EPS exceeded or met guidance
2008 Q1 Q2 Q3 Q4 Revenue ($M) EPS ($) 2009 Q1 Q2 Q3 Q4 Revenue ($M) EPS ($) 2010 Q1 Q2 Q3 Q4 Revenue ($M) EPS ($) 2011 Q1 Q2 Q3 Q4 Revenue ($M) EPS ($) Non-GAAP GAAP Last 13 quarter’s revenues and EPS exceeded or met the top end of guidance Reported Guidance Reported Guidance Reported Guidance Repor
Slide 74: Poised for growth and investment
© 2010 Mercury Computer Systems, Inc. • Restored profitability and growth • Improved working capital efficiencies • Healthy cash flows from operations • Strong balance sheet with zero debt • Capital available for acquisitions • Closing on robust target business model 17-18% adj. EBITDA Poised for gr
Slide 75: Agenda
• Corporate Overview • Keynote: ADM Edmund P. Giambastiani (USN Ret) Former Vice Chair, US Joint Chiefs of Staff • Coffee Break (20 min) • Mercury Federal Systems (MFS) – David Martinez, President • Advanced Computing Solutions (ACS) • Financial Review • Closing Remarks / Q&A Agenda © 2010 Mercury C
Slide 76: MRCY positioned for growth in a changing industry
Continuing to build a pure-play, best-of-breed ISR subsystems and technology-enabled software and services company © 2010 Mercury Computer Systems, Inc. MRCY positioned for growth in a changing industry • Focused on growing ISR market – strong position on important, well funded programs • Outsourcin
Slide 77: Appendix
© 2010 Mercury Computer Systems, Inc. Appendix
Slide 78: Glossary
Glossary ACS Advanced Computing Solutions Group JCREW AEGIS Aegis Ballistic Missile Defense System JSTARS Joint Surveillance and Target Attack Radar System API Application Programming Interface KT KLA Tencor ASIP Airborne Signals Intelligence Payload LSRS Littoral Surveillance Radar System ASML Adva
Slide 79: Adjusted EBITDA Reconciliation ($M)
© 2010 Mercury Computer Systems, Inc. Adjusted EBITDA Reconciliation ($M) Year Ended Year Ended Year Ended Year Ended June 30, 2007 June 30, 2008 June 30, 2009 June 30, 2010 Operating Income (loss) $ (40.5) $ (5.4) $ 7.7 $ 17.3 Adjustment to include interest income/(expense) 2.6 3.1 (0.5) 0.2 Adjust
Slide 80: Adjusted EBITDA Reconciliation ($M)
© 2010 Mercury Computer Systems, Inc. Adjusted EBITDA Reconciliation ($M) Quarter Ended Quarter Ended September 30, 2009 September 30, 2010 Operating Income (loss) $ 5.1 $ 5.2 Adjustment to include interest income/(expense) 0.0 (0.0) Adjustment to include other income/(expense) 0.3 0.5 Adjustment to
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