nasdaq lccinasdaq: lcci december 19,...

LCC International LCC International -- Investor BriefInvestor BriefNASDAQ LCCINASDAQ LCCINASDAQ: LCCINASDAQ: LCCI

www.lcc.comwww.lcc.com

December 19, 2007

LCC Proprietary & Confidential 1

Safe Harbor GuidelinesSafe Harbor Guidelines

Statements included in this presentation that are not historical in nature are "forward-looking statements" within the meaning of Section 21E of the U.S. Securities Exchange Act of 1934 and the U S Private Securities Litigation ReformSecurities Exchange Act of 1934 and the U.S. Private Securities Litigation Reform Act of 1995. These statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. There are many risks, uncertainties and other factors that can prevent the Company from achieving its goals or causeand other factors that can prevent the Company from achieving its goals or cause the Company's results to differ materially from those expressed or implied by these forward-looking statements. These statements are based on management’s current expectations and assumptions, which may be affected by developments and business conditions and necessarily involve risks and uncertainties includingand business conditions, and necessarily involve risks and uncertainties including, without limitation those risk factors outlined in the Company’s Annual Report on Form 10-K, its Quarterly Reports on Form 10-Q, and related SEC filings.

In providing projections and other forward looking statements the Company doesIn providing projections and other forward-looking statements, the Company does not make, and specifically disclaims, any undertaking or obligation to update them at any time in the future or at all to reflect new information, future events or otherwise.

2LCC Proprietary & Confidential

Company SnapshotCompany Snapshot

Founded

IPO

1983

1996 (Nasdaq: LCCI)IPO

Business Focus

1996 (Nasdaq: LCCI)

Design, manage, optimize & maintain fixed and mobile wireless networks

d ti

Target Market

and operations

Wireless Carriers, Content Providers, and Wireless Equipment Vendors

Headquarters

Employees

McLean, Virginia

Approximately 1400 employeesEmployees

Presence

Approximately 1400 employees

Operations in 22 countries


Experienced Management TeamExperienced Management Team

Dean Douglas, President and Chief Executive Officer

25 years of experience in systems and Telco industries

Previously with IBM Global Services, Invisix, Motorola

Lou Salamone, Exec. Vice President and Chief Financial Officer

38 years of finance and accounting experience

CFO at GXS Corporation, US Internetworking, Applied Graphics Technologies & Nextel CFO at GXS Corporation, US Internetworking, Applied Graphics Technologies & Nextel Communications, Deloitte & Touche

Kenny Young, Chief Marketing Officer & President of Americas

20 years of Telco marketing and sales experience20 years of Telco marketing and sales experience

Formerly with Liberty Media/TruePosition, Cingular Wireless, AT&T (Southwestern Bell and SBC Wireless)

Peter Deliso Sr Vice President New Ventures and General CounselPeter Deliso, Sr. Vice President New Ventures and General Counsel

20 years of experience within Telecommunications industry including 12 years in senior management with LCC

Formerly with Mobile Telecommunication Technologies Corp., which included SkyTel.


LCC’s Customer Base Is Diverse and Expansive LCC’s Customer Base Is Diverse and Expansive

5

REPRESENTATIVE SAMPLE OF LCC CUSTOMER BASE

LCC Proprietary & Confidential

2007 Challenges 2007 Challenges LCC has overcome significant events in 2007LCC has overcome significant events in 2007

Delay of Algeria Telecom phase III roll out and of consulting servicesContract for deployment services delayed into 2008 (-$15M impact)

Ongoing engineering services for design of new sites reduced significantly (-$8.3M impact)

AT&T slowdown in network engineering and consulting servicesNew AT&T management team reduced dependency on outside consulting services (-$23.9M impact compared to LCC & WFI in 2006)

i ( CC & ) f i 2Q0 hil i i i i iAmericas (LCC & WFI) freeze in 2Q07 while awaiting WFI acquisition

Joint Radio Network JV stalled UK build out and engineering services (-$7.2M impact)

JV announced in 2Q07 by Vodafone and Orange

JV announced by T-Mobile and 3JV announced by T-Mobile and 3

O2 evaluating alternatives

Restructuring of resources, facilities to support business going forward and integration of new acquisitions

Shortages of specific skill sets within industry worldwide

Revamped Americas go to market team


Preliminary Key Financial Measures Preliminary Key Financial Measures -- Statement of Operations Statement of Operations Nine Months Ended September 30, 2007 Nine Months Ended September 30, 2007 -- Unaudited Unaudited

Statement of Operations ($ millions except percentage and per share amounts)

Revenue $ 96.6$

Gross Margin $ 15.6

Gross Margin as % of Revenue 16.1%

S lli G l &Selling, General &Administrative Expense $ 28.9

Interest Expense $ 2.0

Other Expense (net) $ 2.1

(Loss) From Continuing Operations ($ 22.8)

(Loss)from Discontinued Operations ($ 1 1)(Loss)from Discontinued Operations ($ 1.1)

Net (Loss) ($ 23.9)

Net (Loss) per Common Share ($ 0.77) per share


Preliminary Key Financial Measures Preliminary Key Financial Measures –– Balance Sheet Balance Sheet As of September 30, 2007 As of September 30, 2007 -- UnauditedUnaudited

Balance Sheet ($ millions)

Cash $ 4.1Working Capital $ 26.6g p $

Current Assets $83.7Current Liabilities $57.1

Goodwill $ 56.9

Total Assets $150.1

DebtShort-Term $ 7.0 Long-Term $ 43.5

Total Liabilities $102.2Stockholders’ Equity $ 47.9

Total Liabilities and Stockholders Equity $150.1


2007 Highlights2007 Highlights

Acquisition of WFI European and Americas Engineering OperationsGave LCC key skills and scale

Broadened reach into France and Turkey

Added Land Mobile Radio line of businessAdded Land Mobile Radio line of business

Improved market conditions in Americas and EuropeReal growth in European markets, especially Spain

Americas region has grown in 3Q07 and 4Q07Americas region has grown in 3Q07 and 4Q07

Significantly broadened our revenue and profits across a larger set of customers in Europe, MEA and Americas

Very limited reliance on a single customer of regiony g g

Broader reach should limit traditional cyclical nature of business

Migrated away from Deployment (very cyclical) in all but Algeria

We have improved converting working capital to cashNo borrowings under Bank of America facility since early September despite existing capacity

Have flattened out EMEA organizationEliminated a level of executive management


ImpactsImpacts of WFI Acquisitionof WFI Acquisition

LCC has regained its reputation for wireless engineering leadership

Increased size and scale have given LCC greater flexibility in offerings

Broader revenue base has limited concentration challenge

LCC has expanded its relationship with several OEMs

AT&T wireless demand for network services is returning

Sprint WiMAX business is growing despite conflicting external reports

LCC has realized over $5M in merger synergies

Consolidation strategy will continue to be part of LCC expansion

LCC has expanded customer footprint in Europe

Americas revenue run rate including WFI is approaching $6M per month


LCC’s Strategy is Returning ResultsLCC’s Strategy is Returning Results

Invest in High Growth Elements of Core Business

Expand market presence broaden reach into broadbandExpand market presence, broaden reach into broadband networks, engagements such as automatic optimization

Focus on Higher Margin Revenues

Consulting engagements that leverage intellectual capital and intellectual propertyp p y

Tools-Based Services

Expand tools-based services, offerings to integrate LCC consulting capabilities with unique software tools


Wireless Carriers Network SpendWireless Carriers Network Spend

Wireless Operators will Spend $88 Billion on Networks Globally

Total Network Spend

Total Network Services Spend


The New LCC Going ForwardThe New LCC Going Forward

LCC is the largest independent wireless engineering and consulting organization

Now entering our 25th year in the wireless industry

The largest depth of actual WiMAX experience

Industry is reboundingSpectrum auctions globallySpectrum auctions globallyWireless broadband deployed globallyManaged services are growing

LCC has size, scale, services and reputation to drive real industry change


LCC's Expanded Services OfferingsLCC's Expanded Services Offerings

Research & Innovation Consulting

TotalViewServices Delivery

RF Engineering

Services

Wireless Broadband

Services

Fixed Network

Engineering Services

Spectrum Management

Services

Land Mobile Radio

Services

Technical Strategy and Evaluations

Market analysis

Network Audit &Due Diligence

ContentView™ QoE Solutions

NetworkView™ Tool Based Services

Broadband Planning

Radio Network Plan and Design

Network Optimization & Performance

Network Dimensioning

Technology Field Trials

Radio Network

Microwave Engineering

Transport Network Design

Core Network

Real Time Web-Based Microwave Relocation Project Management

Interference Analysis Tools

Network Consulting/Planning

System Architecture Design & Interoperability

Due Diligence

Service Profiles & Delivery

Technology assessment

g& Dimensioning

ROI and Business Case Analysis

Mobile Content Assurances

Expansion Planning& Traffic Engineering

QoS, Handset, CW,& Benchmarking

E-911 & LBS

Planning and Design

CW Testing & Propagation Model Optimization

Performance

Engineering

Transport Network Optimization & Performance

IP Network – Core

Site Audits & Onsite Spectrum Sweeps & Measurements

Spectrum Evaluation & Auction Support

RF Coverage Predictions, Model Tuning, Drive Testing

800MHz Re-banding & Narrow banding

CapEx / OpEx modeling

Business planning & Financial Diligence

Vendor evaluation &

Revenue & Service Assurances

Optimization & Performance Solutions

E 911 & LBS Accuracy Testing

Software Release Integration Testing

Performance Benchmarking

Testing

Network Optimization

Benchmarking

Design & Integrations

Network Architecture Design

Soft & Circuit Based

(700Mhz)

AWS Spectrum Relocation Support – 1.7Ghz Program Management & 2.1Ghz Negotiations and Relocation

& Narrow banding

IM / TNRD Studies, Interference Mitigation

Infrastructure & Subscriber

Operations & ManagementPreventive & Corrective Maintenance

Network Monitoring & Performance

Vendor evaluation & Field trials

Research and Intellectual Property

Managed & Hosted Services

BenchmarkingSwitch Audit, Design & Dimensioning

Turnkey Services

and Relocation

Path Status & Incumbent Assessment

Subscriber Retuning / Reprogramming

Staff Augmentation

Wireless Institute

Deployment Services – EMEA RegionsTurn-Key Deployment Services

Site Acquisition,Zoning & Permitting, Construction Management


Europe, MEA and Americas Europe, MEA and Americas –– 2007 Recent Wins2007 Recent Wins

Middle East & AfricaUAE End to End Network Evaluation and AuditAl i E d t E d Di t R S iAlgeria End to End Disaster Recovery ServicesPakistan Radio Planning & BenchmarkingEgypt Pre-Launch Drive Testing

AmericasC i WiMAX Fi ld T i l d N t k D i

EuropeTurkey Site Quality Audits & BenchmarkingUK Data Benchmarking UK C l i

Carrier WiMAX Field Trials and Network DesignCarrier Benchmarking and Drive TestingCarrier E-911 Drive TestingOEM Backhaul and Fixed Network ServicesOEM WiMAX Optimization

UK Consultancy assignmentNetherlands SLA on NOC servicesFrance Consultancy Frame AgreementAustria Drive-Testing contractFrance Renewal Optimization contract

O Opt at oCarrier UMTS OptimizationCarrier I-phone Consultancy AgreementOEM Land Mobile Radio ServicesCarrier Backhaul Services

France Renewal Optimization contractSpain Benchmarking ServicesGermany Network Inventory Services


Geographic Mix of RevenuesGeographic Mix of Revenues

Geographic revenue mix estimated for 4Q07 has significantly changed over 4Q06

LCC backlog for period ending 9/30/07 is $83.6M


2007 Year End Summary2007 Year End Summary

LCC leaves 2007 in a significantly stronger and healthier position with less reliance upon one or two major customers

Strong backlog of $83.6M entering 4Q07g g $ g QBroad base of customers within each geographical region

Committed management team is solid and showing results against strategy execution

Strategy has proven to be correct and yielding improved operating performance

New spectrum auctions worldwide and high penetration and growth of wireless broadband supports LCC’s strategy in 2008pp gy

Revenues in 4Q07 are expected to be between $44M to $46M or approximately 56% to 63% higher than 4Q06 ($28.2M)

We expect 4Q07 operating income from continuing operations before interest to be about breakeven and to meet our amended bank Loan Covenants


nasdaq lccinasdaq: lcci december 19,...

Documents