Phoenix Technologies Ltd.

Transcription

1 Phoenix Technologies Ltd. Woodson (Woody) Hobbs Kaufman Bros. 11 th Annual Investor Conference New York, NY - September 4, 2008 Phoenix Technologies Ltd.

2 Safe Harbor Statement With the exception of historical information, the statements in this presentation include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, regarding, but not limited to, the Company s business prospects and development intentions. These statements involve risk and uncertainties, including: our dependence on certain key customers; technical challenges and delays relating to our new products; our ability to successfully continue to enhance existing products and develop and market new products and technologies; our ability to increase the number of volume purchase agreements and pay-as-you-go arrangements with customers; the product and service offerings of competitors; our ability to attract and retain key personnel; market demand for our products; the ability of our customers to introduce and market new products that incorporate our products; risks associated with any acquisition strategy that we might employ, including integration risks; our ability to protect our patents and intellectual property; our ability to defend against third party infringement claims, other litigation and contingent liabilities; our ability to maintain sufficient liquidity to operate our business; any unidentified weaknesses or deficiencies in our internal controls over financial reporting; and risks relating to operating internationally. For a further list and description of risks and uncertainties that could cause actual results to differ materially from those contained in the forward looking statements in this release, we refer you to the Company's filings with the Securities and Exchange Commission, including, but not limited to, its annual report on Form 10-K and quarterly reports on Form 10-Q. All forward-looking statements included in this document are based upon assumptions, forecasts and information available to the Company as of the date hereof, and the Company assumes no obligation to update any such forward-looking statements. 2

3 Dollars in Millions Q Financials Revenue Q4'06 Q1'07 Q2'07 Q3'07 Q4'07 Q1'08 Q2'08 Q3'08 Fiscal Quarter 3

4 Dollars in Millions Q Financials Gross Margin Q4'06 Q1'07 Q2'07 Q3'07 Q4'07 Q1'08 Q2'08 Q3'08 Fiscal Quarter 4

5 Dollars in Millions Q Financials Non-GAAP Net Income/(Loss) Q4'06 Q1'07 Q2'07 Q3'07 Q4'07 Q1'08 Q2'08 Q3'08 Fiscal Quarter 5 A detailed reconciliation of the GAAP to Non-GAAP financials can be found on the last slide of this presentation

6 Dollars in Millions Q Financials (2.0) (4.0) (6.0) (8.0) (10.0) (12.0) Cash Flow from Operations (0.6) (9.4) (10.2) Q4'06 Q1'07 Q2'07 Q3'07 Q4'07 Q1'08 Q2'08 Q3'08 Fiscal Quarter 6

7 Dollars in Millions Q Financials Cash Balances Q4'06 Q1'07 Q2'07 Q3'07 Q4'07 Q1'08 Q2'08 Q3'08 Fiscal Quarter Cash & Equivalents Short Term Balances Restricted Cash 7

8 Total Number Q Financials Headcount Q1'07 Q2'07 Q3'07 Q4'07 Q1'08 Q2'08 Q3'08 Fiscal Quarter Engineering Other 8

9 Internet Usage Is A Primary Driver of PC Industry Growth Source: Intel/Economist Intelligence Unit Intel Developer Forum August 19, 2008, Moscone Center, San Francisco, Intel s Senior Vice President Pat Gelsinger predicted: there will be over fifteen billion internet-connected devices by

10 Worldwide PC Shipments Are Growing ~14% Per Annum WORLDWIDE PC SHIPMENTS BY TYPE Forecast Source: IDC 10

11 Notebook Shipments Are Growing About 30% Per Annum WORLDWIDE NOTEBOOK SHIPMENTS Forecast Source: IDC 11

12 Units in Millions Billions of non-intel Architecture Processors 12 Source: ARM Holdings PLC May 2008

13 Units in Millions RISC Processors Exploding Beyond Phones 13 Source: ARM Holdings PLC May 2008

14 Intel moving to lower power portable devices 14

15 New Markets Being Addressed by Intel Architecture Mobile Internet Device (MID) and UltraMobile PC (UMPC) Embedded Applications requiring Low Cost or Low Power but also benefiting from more processing power New Intel Architecture Chips Lower Cost, Lower Power Req ts New Low Cost PC s like those for students and low income households Applications that benefit from virtualization 15

16 New Markets Being Addressed by Industry Low cost Manufacturing Linux Low Cost Mobile Devices like Asus Eee PC New Mobile Platforms Like Moblin and Android 16

17 OUR ASSETS, PRODUCTS AND VISION Phoenix Technologies Ltd.

18 Phoenix Resources and Assets Human and Intellectual Capital World s most experienced, proven core systems software engineering team Over 250 skilled engineers Strong history of innovation 155 patents issued/137 pending, many more in development Industry Leadership Phoenix core firmware embedded in more than one billion systems since 1984 Phoenix BIOS ships in more than half of today s PCs and more than 60 percent of mobile PCs We support our customers with a wide variety of BIOS platforms Strong Relationships All leading PC OEM & ODM s worldwide Intel, AMD, Microsoft Every top PC chip maker in the world Numerous other hardware and software leaders 18

19 Phoenix Product Groups Existing Products New Products Developed Products Partially Acquired and Partially Developed Acquired Products Core BeInSync (Sync, Backup, Share) (BIOS) HyperCore (Virtual Machine Monitor) FailSafe (PC Security and Policy Management) Touchstone (Subscription Update Maintenance) HyperSpace (Linux OS) General Software (Embedded BIOS and OS) 19

20 Phoenix Investment Strategy Move from Single Product, Single Channel Model to Multi-product, Multi-channel Model New Product and Channel Development - Manage Risk vs. Reward Evolve Continue developing existing assets Extend Build or buy new products for our existing channels Explore New revolutionary products and new channels Improvements to our Core products and deepen relationships with industry partners FailSafe, BeInSync, Touchstone, General Software HyperCore and the Web Channel 20

21 Phoenix Vision for PC 3.0 PC User Gratification Design Distinction and Flexibility ENABLES Aftermarket Value & Recurring Revenue Plug-in Functionality & Convergence 21

22 Phoenix FailSafe Login Screen 22

23 Phoenix Vision For FailSafe Theft Deterrence Mobile Tracking and Management Asset and Policy Management Security Policy and Corporate Asset Management Backup and Recovery 23

24 Phoenix Vision for HyperCore and HyperSpace 24

25 HyperCore and HyperSpace 25

26 HyperCore and HyperSpace 26

27 What We Plan to Deliver For: 27

28 Our Expectations Fiscal Year 2008 Full year revenue above $75 Million Small revenue contribution from acquisitions Substantial expensed investment in new products, mostly in R&D Full year non-gaap earnings about 10% of Revenue Fiscal Year 2009 Revenue about $110 Million Continued growth in spending to support new products and services Full Year non-gaap target 10% of revenue December 2011 Targets Annualized revenue ending run rate above $275 Million Gross margins around 80-85% R&D spending around 30% of revenue GAAP net income around 15% of revenue 28

29 Phoenix Technologies Ltd. Woodson (Woody) Hobbs Kaufman Bros. 11 th Annual Investor Conference New York, NY - September 4, 2008 Phoenix Technologies Ltd.