Intrinsyc Software International, Inc.

Intrinsyc Software International, Inc.
Company Update
December 2008
Forward-looking Statements
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This presentation contains statements and information which, to the extent that they are not recitations of historical fact, may constitute forward-looking
information under applicable Canadian securities legislation. Such forward-looking statements or information may include financial and other projections as
well as statements regarding the Company's future plans, objectives, performance, revenues, growth, profits, operating expenses or the company's
underlying assumptions. The words "may", "would", "could", "will", "likely", "expect," "anticipate," "intend", "plan", "forecast", "project", "estimate" and
"believe" or other similar words and phrases may identify forward-looking statements or information. Persons reading this press release are cautioned that
such statements or information are only predictions, and that the Company's actual future results or performance may be materially different.
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Factors that could cause actual events or results to differ materially from those suggested by these forward-looking statements include, but are not limited
to: the Company’s ability to continue to earn the revenue from Destinator products after the acquisition, and to integrate the acquired business into its own
operations; the need to develop, integrate and deploy software solutions to meet our customer's requirements; the possibility of development or deployment
difficulties or delays; the dependence on our customers' satisfaction; the timing of entering into significant contracts; our customers’ continued commitment
to the deployment of our solutions; the risks involved in developing integrated software solutions and integrating them with third-party products and services;
the performance of the global economy and growth in software industry sales; market acceptance of the Company’s products and services; customer and
industry analyst perception of the Company and its technology vision and future prospects; the success of certain business combinations engaged in by the
Company or by its competitors; political unrest or acts of war; possible disruptive effects of organizational or personnel changes; technological change, new
products and standards; risks related to acquisitions and international expansion; reliance on large customers; concentration of sales; international
operations and sales; management of growth and expansion; dependence upon key personnel and hiring; reliance on a limited number of suppliers;
industry growth; competition; intellectual property; product defects and product liability; currency exchange rate risk; and including but not limited to other
factors described in the Company’s reports filed on SEDAR, including its Annual Information Form and financial report for the year ended December 31,
2007.
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In drawing a conclusion or making a forecast or projection set out in the forward-looking information, the Company takes into account the following material
factors and assumptions in addition to the above factors: the Company’s ability to execute on its business plan; the acceptance of the Company’s products
and services by its customers; the timing of execution of outstanding or potential customer contracts by the Company; the sales opportunities available to
the Company; the Company's subjective assessment of the likelihood of success of a sales lead or opportunity; the Company's historic ability to generate
sales leads or opportunities; and that sales will be completed at or above the Company's estimated margins.
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This list is not exhaustive of the factors that may affect our forward-looking information. These and other factors should be considered carefully and readers
should not place undue reliance on such forward-looking information. All forward-looking statements made in this presentation are qualified by this
cautionary statement and there can be no assurance that actual results or developments anticipated by the Company will be realized. The Company
disclaims any intention or obligation to update or revise forward-looking information, whether as a result of new information, future events or otherwise,
except as required by law.
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All amounts are in United States dollars, unless otherwise indicated.
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Corporate Overview
ƒ Device makers rely on Intrinsyc software solutions
ƒ 12 years mobile and embedded engineering; 10 years navigation software
ƒ 75% of employees in technical roles
ƒ 36 patents in wireless and navigation
ƒ Proven wireless software products:
ƒ Soleus® and Destinator® software
ƒ Solutions for C-PND, consumer handsets, handhelds
ƒ Positioned to support global markets
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Development: Beijing, Bellevue, Vancouver, Israel
Solutions Engineering: Taipei, Vancouver
Sales Coverage: North America, EMEA, Asia
Headquarters: Vancouver
3
Seasoned Leadership Provides
Deep Industry Experience
Tracy Rees, Interim Chief Executive Officer
ƒ BSQUARE, CalAmp, Annasoft
ƒ Joined Intrinsyc: May 2007
George Reznik, Chief Financial Officer
ƒ Pivotal Software, Infowave, DDS, Deloitte
ƒ Joined Intrinsyc: April 2008
Souheil Gallouzi, SVP & GM, Mobile Products & Development
ƒ Qualcomm, Leap Wireless, Nortel
ƒ Joined Intrinsyc: November 2007
Mark Longo, General Counsel & VP Corporate Development
ƒ Datawire Communications, Star Data
ƒ Joined Intrinsyc: June 2007
Also:
ƒ Simon Poile, VP Development (Microsoft)
ƒ Zoey Zhao, VP Development (Destinator, Bitfone)
ƒ David Manuel, VP Customer Engineering (MacDonald Dettwiler)
4
Mobile and Embedded Business
Built on a Strong Foundation
ƒ Intrinsyc software products have momentum
ƒ Soleus® released December 2006 – Have already achieved 8 design wins for wireless
handsets and connected PNDs, including chipset with Samsung Systems LSI
ƒ Destinator® provides best in class navigation and LBS solutions for tier one OEMs
ƒ Soleus wins Microsoft 2008 Partner Excellence Award for connected PNDs
ƒ Solutions Engineering provides the foundation:
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12 year Microsoft Windows Mobile and Embedded Partner
Only North American-based Symbian Competence Center
Co-inventor ARM Intelligent Energy Manager for Windows Mobile
Experts in UI, telephony and power management
2007 Microsoft Excellence Award for Systems Integration
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Significant and Growing Market Opportunities
for Mobile and Navigation Technology
5.6 Billion (2013)
OS
Commoditization
3.1 Billion (2007)
Mobile 2.0:
Mobile Web
Mobile Phone Subscribers
– Strategy Analytics
100 Million (2012)
27 Million (2007)
Mobile
Services
1.7 Billion (2013)
577 Million (2008)
LBS Subscribers
Mobile Internet Users
- Berg Insight
- Juniper Research
Location Aware
Devices
550 Million (2012)
Context Aware
Gesture UI
833 Million (2013)
Multimedia
Convergence
462 Million (2013)
240 Million (2008)
341Million (2008)
24 Million (2007)
GPS Enabled Handsets
Touch Screens Shipped
Mobile TV Subscribers
– ABI Research
- iSuppli
– ABI Research
6
Software Products
Mobile device makers, carriers
and silicon vendors rely on
Intrinsyc software products to
enable:
ƒ Connected navigation
ƒ Location Based Services (LBS)
ƒ Multimedia
ƒ Advanced UI
ƒ Differentiated user experience
ƒ Best-in-class routing and turn-by-turn
navigation
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Soleus - Enabling the Next Generation
Wireless Experience
Soleus value proposition:
ƒ Design flexibility
ƒ OxMs and operators can completely brand and
customize UI
ƒ OxMs can generate unlimited customer experiences
on multiple form factors
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Consumer smartphones
C-PNDs
MDTVs
eReaders
THIRD PARTY
APPLICATIONS
SOLEUS CORE
APPLICATION
SUITE
SOLEUS UI FRAMEWORK
ƒ R&D costs reduced
ƒ Enables re-use of software from one device to another
ƒ Leverages Microsoft Windows Embedded CE
ƒ Faster time-to-market
SOLEUS
TELEPHONY
STACK
OPERATING
SYSTEM:
WINDOWS
EMBEDDED CE
KERNEL & HW DRIVERS
SOLEUS REFERENCE BSP & PDM
ƒ Windows Embedded CE telephony stack (3G)
ƒ Tool chain based on Visual Studio and Platform
Builder (used by 6M+ developers)
ƒ Pre-integrated 3rd party mobile applications
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HARDWARE PLATFORM
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Destinator Software Delivers a
World-Class Navigation Experience
ƒ Enables navigation and Location Based Services
(LBS) on handsets and PNDs
ƒ Customizable user interface
ƒ Integrates with phone features
ƒ Best-in-class routing makes for faster and safer trips
GUI
Application SDK
GUI Toolkit
Navigation SDK
OS Abstraction Layer
ƒ Content and LBS
Device
ƒ Global support and map coverage
ƒ Traffic updates, cheapest gas, travel guides
ƒ Supports all high-level operating systems
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Windows Embedded CE
Windows Mobile
Symbian
Linux
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Industry Accolades for Destinator-based
MotoNav Devices
Coolest-gadgets.com “With the most accurate maps on
display and the choice between 2D or 3D display modes,
getting to your destination has never gotten any
easier…”
ConsumerReports.org “...we liked the clear
graphics, and ease of use seemed like a strong
suit [of the TN20 and TN30].
Technorati.com "When not building phones (like the Krave ZN4
or the AURA), Motorola tries and succeeds to make various
other products, like GPS navigation systems…”
Mobiletechreviews.com
“MOTONAV TN20 is perfect for a wide range of
drivers, combining must-have features in an easyto-use product…”
Mobile888.com [the A1600] helps
consumers find new destinations or
just the easiest routes between
meetings…
Senior Director Motorola The
A1600, is our first GPS-enabled
mobile phone in India…
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Intrinsyc Amongst Top Three Navigation
Software Vendors
ABI Research ranks Intrinsyc
third in on-board navigation
software vendor matrix
ABI Research On-board Navigation Software Vendor Rankings
160
140
“…Intrinsyc is the rising star thanks to
its Soleus® flexible and open software
platform and the recent acquisition of
most of the assets of Destinator®
Technologies.”
Dominique Bonte,
Research Director, ABI Research
120
100
80
Implementation
60
Innovation
40
20
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On October 29, 2008, ABI Research released an evaluation of handset-based navigation software vendors and ranked Intrinsyc third, following Nokia (first)
and Garmin (second) in a mix of criteria focused on innovation and implementation.
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Soleus and Destinator Deliver New
Connected PND Platform Solution
ƒ Synergy of Soleus and
Destinator
ƒ Market-ready connected PND
solution
ƒ World class telephony and
navigation
ƒ Full localization capability
ƒ Fully customizable UI
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Focused on Enabling Next Generation Context
Aware Consumer Devices
You are enjoying an MP3 you downloaded as you pass your favorite venue
You stop to take a photo and
receive an LBS message that the
band is playing tomorrow
Save Photo
Buy Tickets
With the press of a button, you
buy tickets for the show
*Conceptual User Scenario Only
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Context Aware Digital World:
Mobile on the Move
As you drive home, your GPS enabled
phone updates the best route based on
latest road and traffic conditions
Update Route
Home Based
on Traffic
Conditions?
OK
*Conceptual User Scenario Only
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Context Aware Digital World:
The Mobile “Home Experience”
As you enter your
home, daily activities
and downloads are
backed up on your PC
Your phone UI is
updated with your
“Home Experience”;
allows you to control
lights, temperature
and interact with TV
and order movies
Welcome Home.
Syncing with
Computer
Phone
Lights
Temp
Music
TV
+Channel+Volume-
Watch Movie
*Conceptual User Scenario Only
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Intrinsyc Next Generation Products Direction
ƒ Upcoming Soleus® and Destinator ® releases will focus on the
next geneneration user experience:
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Enabling Tools
Dynamic user interface
Seamlessly integrated navigation and LBS
Web
Multimedia and mobile web
Support for custom mobile services
LBS
Multimedia
Comm
3rd
Party
Apps
Core Applications
UI Framework
Application Engine
ƒ Enabling technology and tools
Device
Drivers
OS
kernel
ƒ Support for the “new programming model”
ƒ Support for multiple OS platforms and open source libraries
Modem
Interfaces
ƒ Development tools to enable faster time-to-market
Next generation Soleus will enable rapid development of
context aware user experience platforms
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Intrinsyc Financial Overview
ƒ Record revenues driven by strong Solutions Engineering, software
licensing and royalties in Q3 2008:
ƒ Q3 2008 revenue: $7.9M – up from $5.6M in Q2
ƒ Q3 2008 gross margin: 61% - up from 47% in Q2
ƒ Initiatives to streamline organizational structure, deliver operating efficiencies and
reduce costs undertaken
ƒ Intrinsyc software products provide growth:
Recent Quarterly Performance
ƒ Licensing and maintenance fee
ƒ Per unit royalties at 80-90% gross margin
ƒ Blended gross margin of 70 to 80%
$7.9
$5.3
$4.5
ƒ 2008 revenues to result in solid growth
ƒ Over 1/3 from software solutions (38% in Q3)
ƒ Improved gross margin
ƒ Reduced costs
52%
$5.6
$5.6
61%
$4.3
49%
46%
47%
36%
Q307
Q407
TP07
Revenue
(Millions)
Q108
Q208
Q308
Gross Margin
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Thank You
© 2008 Intrinsyc Software International, Inc. All rights reserved.
Intrinsyc, Soleus, Destinator and their respective logos are trademarks, registered and otherwise, of Intrinsyc Software International, Inc.
in Canada, European Union, Taiwan, United States of America and other jurisdictions. Other products and services mentioned in this
document are identified by the trademarks or service marks of their respective companies or organizations.