president & ceo analogic corporation - iis windows...
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The 29th Annual Cowen Health Care Conference
March 18, 2009
Jim Green, President & CEO
Analogic Corporation
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Safe Harbor Statement
Any statements about future expectations, plans, and prospects for the Company, including statements containing the
words “believes,” “anticipates,” “plans,” “expects,” and similar expressions, constitute forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those
indicated by such forward-looking statements as a result of various important factors, including risks relating to product
development and commercialization, limited demand for the Company’s products, risks associated with competition,
uncertainties associated with regulatory agency approvals, competitive pricing pressures, downturns in the economy,
the risk of potential intellectual property litigation, and other factors discussed in our most recent quarterly report filed
with the Securities and Exchange Commission. In addition, the forward-looking statements included in this presentation
represent the Company’s views as of the date of this document. While the Company anticipates that subsequent events
and developments will cause the Company’s views to change, the Company specifically disclaims any obligation to
update these forward-looking statements. These forward-looking statements should not be relied upon as representing
the Company’s views as of any later date.
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Excellence in Signal and Image Processing
Stability through diversification
- Medical Imaging for OEMs
- End User Medical
- Imaging for Aviation Security
Strong Balance Sheet
- Strong Cash Position
- No Short or Long Term Debt
Global Sales
- North America, Europe, Asia
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At a Glance
Analogic (NASDAQ: ALOG)
Peabody, MA. USA
Founded 1967
FY2008 Year End Results
• Consolidated revenue of $413.5M
• EPS $1.77 (GAAP)
• EPS $2.26 (Non-GAAP*)
• Free Cash Flow $25.1M
* Non-GAAP, please refer to the non-GAAP reconciliation table in Analogic’s Q2 FY 2009 earnings announcement
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Weathering the Financial Storm
Financial
Crisis
Revenue and Non-GAAP Earnings / ShareCopley
Acquisition
1st Half 2009 Results
• Revenues of $204.3M
• EPS $0.13 (GAAP)
• EPS $0.59 (Non-GAAP)
• Free Cash Flow $14.5M*
* Free cash flow excludes $25M stock repurchase
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Global Footprint
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Canton, MA
Gradient amplifiers for MRI and
precision motion control systems
Copenhagen, Denmark
Specialized Ultrasound scanners
for Urology and Surgery
Montreal, Canada
Direct Digital Selenium flat
panel x-ray detectors for
mammography
State College, PA
Leading developer of Ultrasound probes
and transducers for medical OEMs
Peabody, MA
Worldwide Headquarters
Engineering and manufacturing of medical
imaging subsystems and aviation security
Shanghai, China
In development to serve the
needs of our customers in
China
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Diversification
Enabling Stability while Leveraging Technology for Growth
End User
Medical
OEM MedicalEnd User
MedicalSecurity
Advanced Technology
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Revenue Diversification
Medical
Imaging56%
Digital Radiography
7%
BK Medical
22%
Security12%
Other
3%
Business Segments
Medical Technology – 85%
US
44%
ROW56%
2008 Revenue by Geography
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Healthcare
Aging Population Drives Demand for Procedures
0
500
1000
1500
2000
2500
1950
1955
1960
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1975
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1985
1990
1995
2000
2005
2010
2015
2020
2025
2030
2035
2040
2045
2050
Wo
rld
Po
pu
lati
on
Over
65
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
Perc
en
tag
e o
f W
orl
d P
op
ula
tio
n
60+
Percent of World
Source: Espicom 2008
0
50
100
150
200
250
300
Pro
ced
ure
s (
Millio
ns)
2003 2004 2005 2006 2007 2008 2009
U.S. Imaging Procedures
MRI
CT
Ultrasound
Aging Population - World
U. S. Imaging Procedures
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Healthcare
Solid OEM Customers
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Healthcare
Medical Technology Applications
• Magnetic Resonance Power Systems
- RF Amplifiers
- Gradient Amplifiers
• Computed Tomography
- Data Acquisition and Data Management
Systems
- PowerLink™ Non-contact Power Transfer
• Digital Mammography Detectors
• Clinical Ultrasound Scanners Transducers
• Radiation Treatment
- CT Guided Gantry Systems
Leading OEM Supplier of Subsystems for:
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Healthcare
Leader in MR Technology
• Gradient Amplification
• Integrated MR Power
• RF Amplification
• Spectrometer
• Applications1.5T, 3.0T, 7.0T Wide Bore
Functional MRI
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Healthcare
Digital Mammography Detectors
Proprietary Amorphous
Selenium Technology
Digital Mammography Market ~ $600M (10+% CAGR)*
Leading Customers:
• Siemens’ “Inspiration”
• Philips’ “MammoDiagnost DR”
• Toshiba’s “Peruru”
• Early adopters: IMS & Planmed
*InMedica 2007
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Healthcare
Advancing the Technology…
Today• Superior Image Quality
• Fastest Throughput Available
• Tomosynthesis Ready
Today’s best in class image quality
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Today• Superior Image Quality
• Fastest Throughput Available
• Tomosynthesis Ready
Today’s best in class image quality
Healthcare
Advancing the Technology…
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Healthcare
End-User Specialized Ultrasound
BK MedicalNew Product Family Introductions:
• Pro Focus UltraView Scanner launched in late Q2
• Flex Focus Scanner launched in Q3
World market leader in:
• Colorectal Ultrasound
• Surgical Ultrasound, including Brachytherapy
New market opportunities:
– Pelvic Floor
– Interventional Radiology
– Highly mobile acute care
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Aviation Security
Explosive Detection Systems (EDS) Market
GE Security
28%
L-3
32%
Smiths
19%
Reveal
13%
Gilardoni
2%
Others
6%
Checked Baggage Inspection Equipment
% of Total World Revenues in 2008 (est.)
Total EDS Market CY2008– $422M
EDS Systems Opportunity• 1700 EDS systems installed for checked
baggage at 450 U.S. airports
• New sockets available at large and medium
size airports
• Replacement market opportunity begins
over next two years
• New dual-use market for checked/checkpoint
• Europe to adopt certified EDS starting CY2012
Source: IMS Research
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Aviation Security
Advanced 3-D Imaging Technology
2D Projection Displays
Interactive, 3D Threat Display
Interactive, 3D Display
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Aviation Security
Explosive Detection Systems
eXaminer™ XLB - Ultra-high throughput next
generation EDS
- In certification testing, Fall 09 shipments
- Up to 1100 bags per hour
New eXaminer™ SX - Multi use
applications in small to mid size airports
-Completed certification testing
- Up to 360 bags per hour
EXACT™ AN6000 - First and only
CT based, full volumetric scanner
-850 units installed worldwide
-550 bags per hour
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Medical OEM Businesses
• Expect further erosion in CT, as hospitals delay large, capital purchases
• Motion Controls remain slow as automation customers are affected by the financial crisis
• Expect modest improvement of CT guidance subsystems for radiation treatment customer
• MRI related subsystems holding steady, though the MRI market is under pressure
• Stable demand for Digital Mammo Detectors outside the US
End User Medical Customer B-K Ultrasound
• Hospital sales of specialized ultrasound products remain stable and poised to grow with
the introduction of our new generation products
Aviation Security
• With the broader product offering in security, we expect increased checked baggage
revenue shipments this fall
Business Outlook
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• We’re operating the business as though Q1 reset the revenue run-rate.
• We’re managing the business to maintain profitability and positive cash
flows in this current environment.
• While carefully investing to position for profitable growth as the
economy recovers.
Summary
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Thank You