Investor Presentation Q2 2009

Transcription

1 THE PEOPLE BEHIND BIRT THE PEOPLE BEHIND BIRT THE PEOPLE BEHIND BIRT THE 1 Investor Presentation Q BIRT Actuate Corporation THE PEOPLE 2009 BEHIND BIRT THE PEOPLE BEHIND BIRT THE PEOPLE BEHIND BIRT THE

2 Safe Harbor Statement The statements contained in this presentation that are not purely historical are forward looking statements within the meaning of Section 21E of the Securities Exchange Act of These include statements regarding Actuate s expectations, beliefs, hopes, intentions or strategies regarding the future. All such forward-looking statements in this presentation are based upon information available to Actuate as of the date hereof, and Actuate disclaims any obligation to update or revise any such forward-looking statements based on changes in expectations or the circumstances or conditions on which such expectations may be based. Actual results could differ materially from Actuate s current expectations. Factors that could cause or contribute to such differences include, but are not limited to, the general spending environment for information technology products and services in general and Business Intelligence, Performance Management and Rich Internet Application software in particular, quarterly fluctuations in our revenues and other operating results, our ability to expand our international operations, our ability to successfully compete against current and future competitors, the impact of acquisitions on the company s financial and/or operating condition, the ability to increase revenues through our indirect channels, general economic and geopolitical uncertainties and other risk factors that are discussed in Actuate s Securities and Exchange Commission filings, specifically Actuate s 2008 Annual Report on Form 10-K filed on March 12, 2009 as well as its quarterly reports on Form 10-Q. Use of Non-GAAP Financial Measures The non-gaap financial measures are included in this presentation to provide an additional analytical tool for understanding the Company s financial and operating performance, and to facilitate comparability of financial results between historical financial reporting periods, among other reasons. Non-GAAP financial measures discussed in this presentation exclude the amortization of purchased technology and other intangible assets related to Actuate s acquisition transactions, restructuring charges, stock-based compensation expense, expenses related to idle facilities and an adjustment to the tax provision. It is management s belief that these items are not indicative of ongoing operations and as a result, non-gaap financial measures that exclude such items provide additional insight for investors in evaluating the Company s financial and operational performance. However, these non-gaap financial measures should not be considered in isolation or as a substitute for the Company s GAAP results. Pursuant to the requirements of SEC Regulation G, a detailed reconciliation between the Company s GAAP and non- GAAP financial results is provided in today s press release, as well as in the investor relations section of Actuate s website at Investors are advised to carefully review and consider this information strictly as a supplement to the GAAP financial results that are disclosed in the Company s SEC filings. 2

3 About Actuate Corporation Headquarters Offices Customers Services Key Partners San Mateo, California Regional HQs: Fribourg, London, Singapore, Tokyo, Toronto R&D: San Mateo, Kansas City, Shanghai, Toronto Over 4,400 with top-tier accounts in banking, insurance, securities, government, health care, education, utilities and high tech Design, consulting, development, integration, training, support 3 Rich Internet Applications Without Limits

4 Investment Highlights Unique business model focuses both on enterprises and open source/developer communities BIRT (open source) related revenues grew from $1 million in 2006 to $8 million in 2007 and is expected to grow by 30% in $20 million in 2009 Over 4,400 blue chip customers across a variety of verticals providing solid maintenance revenue Experienced management team Best in class operating margin and cash flow profile Strong balance sheet, highlighted by $75 million in cash, or over $1.50 per share 4

5 Actuate The people behind BIRT Founder and Co-leader of the Open Source Eclipse BIRT Project 95% of developers on the project Staff of evangelists on eclipse.org newsgroup and BIRT Exchange Forums help application developers get up and running quickly BIRT Exchange community site for application developers to share knowledge Strategic Developer and Board Member of Eclipse Foundation 4.5 million developers worldwide use Eclipse-based IDE 191 member organization, 923 committers and 93 projects Commercial enterprise and ISV friendly license BIRT 5

6 BIRT: The Market Opportunity Goal: Use Open Source to grow the developer community and establish a dominant position in RIAs inside and outside the firewall BIRT is a key RIA development layer for Eclipse Top-level Eclipse project Over 6.5 million downloads BIRT Exchange BIRT is only product that can capture these markets 4.0MBIRT Eclipse Developers Java Developers PHP Developers 6 6 Report Developers

7 BIRT is the Best for All Rich Information Applications BIRT + BIRT iserver Express + BIRT Performance Scorecard BIRT + Flash Widgets BIRT Open Source + JavaScript + SQL BIRT + BIRT iserver Enterprise Engage users and let them drive rich apps Implement security & management Publish rich Performance Management apps Publish rich apps outside the firewall Secure and support millions of users Scale, performance, reliability, security Free Open Source Tools Embedded Applications Department Applications Enterprise Applications Other Open Source Vendors Traditional BI Vendors Actuate 7

8 BIRT: Premier Development Environment for Building Web 2.0 Rich Information Applications BIRT Bringing rich information to web applications Accesses the data Transforms and integrates the data Performs calculations, summarizations and functions on the data Formats the data into instantly usable and meaningful visualizations Delivers it to users in their preferred file format and delivery method 8 Actuate Workgroup and enterprise application deployment platforms End-user interactivity Flashy visualizations Scheduling, distribution and administration Scale Performance Reliability Security Service and Support Community Making application development faster and easier Over 6 Million downloads ½ million developers BIRT Exchange community Actuate customer community BIRT Global Partners

9 Rich Information Applications Outside and Inside the Firewall Extranet Customer-Facing Information Applications Cash Management Wealth Management Merchant Card Services Online Corporate Banking Drive revenue through higher customer satisfaction and loyalty Run your business more effectively 9 Intranet Performance Management, Reporting and Business Intelligence Applications Operational Performance Management Sustainability Management Stimulus Package Transparency Scorecard Applications

10 BIRT Exchange Metrics How Active is the BIRT Community? 18,000 total BIRT registrations BIRT Exchange Q2 09 Year-over-year increase Average daily page views Average monthly visitors Unique commercial downloads 6,000 66% 32, % 1,000 26% BIRT-related business exceeded $3.3 million in Q2, with more than 110 transactions Added 10 new BIRT Global Partners from Canada, China, France, Scandinavia, Switzerland and US 10

11 Key Market Drivers Open Source generating low-cost, high-quality prospects Multi-million dollars in potential business from companies that downloaded Eclipse BIRT and now expresses interest in Actuate commercial products Over 40 opportunities identified to date from around the globe and across many industries Financial services regaining strength Positive financial results among leading financial services companies in Q2 Financial services continues to represent over 50% of Actuate business Multi-million Dollars in Potential Business from Open Source 11

12 Actuate Customers Singapore & Luxembourg Abu Dhabi Police 12

13 Financial Update 13

14 Revenue $ Millions $32.0 $34.7 $34.7 $39.2 $29.5 $34.6 $33.7 $33.2 $29.3 $ Q1:07 Q2:07 Q3:07 Q4:07 Q1:08 Q2:08 Q3:08 Q4:04 Q1:09 Q2:09 Maintenance Service License 14

15 2Q9 Non-GAAP P&L ($ Millions) License Revs Maint/Supp Revs Services Revs Total Revenue 2Q8 $ % rev. 36% Q9 $ % rev. 29% V% (31)% 3 (50) (15) Oper. Expense (18) Operating Income Oper. Margin % 19% % 22% (1)% +2.8 pp Fully Diluted EPS $0.08 $ % Non-GAAP financial results were calculated by excluding amortization of purchased technology and other intangibles related to Actuate s acquisition transactions, stock-based compensation expense, restructuring charges related to the exit of certain facilities, expenses related to idle facilities and an adjustment to the income tax provision. All of these expenses are included in Actuate's GAAP results. The income tax rate used to compute 2009 non-gaap financial results was 20% financial results were calculated using a non-gaap tax rate of 30%. 15

16 Q2 Y/Y Revenue By Region N. AMERICA INTERNATIONAL $30 M $25 M $25.1 M (8%) $22.9 M LICENSE SERVICES TOTAL $20 M $15 M $16.2 M + 0% $16.2 M $10 M $5 M $8.9 M (24%) $6.7 M $3.4 M $6.1 M $9.5 M (47)% (22)% $4.8 M (31)% $6.6 M $1.8 M $0 M 16 2Q8 2Q9 2Q8 2Q9

17 Maintenance Revenue History TTM ENDED TTM MAINT REVS (a) Increase % Q1 08 $69.9M 8% Q2 08 $71.8M 9% Q3 08 $75.0M 12% Q4 08 $76.7M 12% Q1 09 $77.3M 11% Q2 09 $77.9M 8% (a) Excludes $3 million unusual back maintenance item from Q

18 Value of Recurring Maintenance Revenues $77.9 million TTM maintenance revenues 8% - 12% TTM growth rates during prior 6 quarters 92% maintenance gross margin 3%-5% average annual maintenance price increases 90%-95% maintenance renewal rates 20% tax rate 18

19 Maintenance Revenue Drives Strong Operating Cash Flow 70.00% Maint % of Total Rev CFFO/% Rev 60.00% 50.00% 40.00% 43.4% 30.00% 49.5% 49.1% 50.7% 58.6% 63.9% 20.00% 10.00% 4.7% 12.5% 17.2% 16.3% 22.5% 22.2% 0.00% H 2009

20 Balance Sheet ($ Millions) Cash & Investments Accounts receivable Goodwill & Purch Intang. Other assets Total Assets 12/31/08 6/30/09 Change $ $150.5 $ $157.3 $16.4 (9.7) (0.4) 0.5 $6.8 Accrued liabilities Debt Deferred revenue Equity Total liab/equity $ $150.5 $ $157.3 $(3.4) 0.0 (3.3) 13.5 $6.8 20

21 Selected FY2009 Guidance No specific revenue guidance BIRT business expected to increase by 30% Maintenance revenues will continue to increase Non-GAAP operating margin in the range of 16-21% Increased EPS and positive cash flow The above information concerning our forecast for the fiscal year represents our outlook only as of the date hereof, and we undertake no obligation to update or revise any financial forecast or other forward looking statements, as a result of new developments or otherwise. The above fiscal year 2009 non-gaap forecasts exclude the amortization of purchased technology and other intangible assets related to Actuate s acquisition transactions, stock-based compensation expense, restructuring charges related to severance costs and/or the exit of certain facilities, expenses related to idle facilities and an adjustment to the income tax provision. These non-gaap items may change depending on changes in Actuate s business. 21

22 Actuate s Long Term Financial Model (Non-GAAP) (% of Revenue) (E) Long-Term Gross Margin 82% 82-84% 84-86% Operating Expenses 63% 63-66% 51-54% Operating Margin 19% 16-21% 30-35% 2008 non-gaap financial results were calculated by excluding amortization of purchased technology and other intangibles related to Actuate s acquisition transactions, stock-based compensation expense, restructuring charges, other non-recurring employee termination costs, non-recurring professional fees, operating expenses related to idle facilities and an adjustment to the income tax provision. All of these expenses are included in Actuate's 2008 GAAP results. The income tax rate used to compute 2008 non-gaap financial results was 30%. The above fiscal year 2009 non-gaap forecasts exclude the amortization of purchased technology and other intangible assets related to Actuate s acquisition transactions, stock-based compensation expense, restructuring charges related to severance costs and/or the exit of certain facilities, operating expenses related to idle facilities and an adjustment to the income tax provision. These non-gaap items may change depending on changes in Actuate s business. 22

23 & 23

24 THE PEOPLE BEHIND BIRT THE PEOPLE BEHIND BIRT THE PEOPLE BEHIND BIRT THE 24 Q2 FY2009 Earnings Call BIRT Actuate Corporation THE PEOPLE 2009 BEHIND BIRT THE PEOPLE BEHIND BIRT THE PEOPLE BEHIND BIRT THE