Upload
abner-flowers
View
221
Download
7
Tags:
Embed Size (px)
Citation preview
WWW.GVISS.COM
This material contains statements that are not statements of historical fact, but instead
are forward-looking statements. All forward-looking statements involve risks and
uncertainties that could cause actual results to differ materially from those in the
forward-looking statements. Such factors include, but are not limited to, the company’s
ability to market existing and new products, ability to access capital for expansion, and
changes from anticipated levels of sales, future national or regional economic and
competitive conditions, changes in relationships with customers, dependence on our
relationship with our primary supplier and other factors detailed from time to time in the
Company's filings with the United States Securities and Exchange Commission and other
regulatory authorities. The company undertakes no obligation to publicly update or
revise any forward-looking statements, whether as a result of new information, future
events or otherwise. This presentation is based upon information available to the public,
as well as other information from sources which management believes to be reliable,
but is not guaranteed by GVSS as being accurate nor does it purport to be complete.
Opinions expressed herein are those of management as of the date of this presentation
and are subject to change without notice.
Safe Harbor Statement
WWW.GVISS.COM
Video Surveillance
For Today’s Analog Systems &For Today’s Analog Systems & Tomorrow’sTomorrow’s IP IP NetworkNetwork
WWW.GVISS.COM
• Extremely Undervalued
• Share Buyback
• “Baby Blue Chip”
• Profitable
• Growing
Investment Considerations
WWW.GVISS.COM
Prime + 0.75% Prime + 0.25%
10% + warrants
11% convertibles with resets
Pick the Blue Chip?
WWW.GVISS.COM
$2.6 million$2.6 million
Seven Straight Profitable Quarters Q1 2007 – Q3 2008
Net Income 2007Net Income 2007
Profits
Profitable
WWW.GVISS.COM
$2.6 million$2.6 million
Net Income 2007Net Income 2007
20062006LossLoss
$16 million$16 million
• New Management Team and Board
• Eliminated Loss-Making Activities
• Set Appropriate Expense Levels and Implemented Controls
• Focused on Key Working Capital Items
• Strengthened Samsung Strategic Partnership and Contract
• New $15M Credit Facility with Wells Fargo Business Credit
New Direction
WWW.GVISS.COM
Management Team
Steven E. Walin, CEO/Chairman – 26 years of experience in the security industry. Former president of GE Security Enterprise Solutions; former Senior VP for the security systems division of Siemens Building Technologies; former President / COO of Security Technologies Group (STG)
Joseph Restivo, COO/CFO – 19 years of experience in the security industry. Former VP of North American Services and Business Development for Siemens Building Technologies. President/COO of Casi-Rusco
Rich Anderson , CTO –19 years of experience in the security industry. Former VP of Marketing of GE Security’s Enterprise Group, where he was charged with defining the product strategy. Prior to that position, Rich worked for GE as the VP of Business and Market Development, where he helped lead the definition of their security acquisition and technology strategy. Rich was also the VP of Engineering, and in charge of the development of access control products.
Michael Capulli, Sr. VP North American Sales – 26 years of experience in security sales; was VP of Sales for Tri-Ed Inc.; recently was Director of Global Accounts for Tyco Safety Products.
Fernando Tomasiello, Sr. VP International Sales – 10 years of experience in the security industry; was Director of Sales for South America for Global Options International Inc.; from 1998 to 2000, was VP of Sales for International Security Experts Systems.
Esra Pope, VP Marketing – 9 years of experience in the security industry; former leader of project integration for Military and Government security sales and marketing in Turkey.
Chris Young, VP of Finance – Former Director of Finance at i2 Technologies. Prior to i2, he worked at GE for 5 years. Chris holds a BA in Finance from the University of Kentucky, a MBA from the University of Illinois, and is a licensed CPA.
WWW.GVISS.COM
Strategic Partner: Samsung Electronics
• • The World’s Largest and Leading Electronics The World’s Largest and Leading Electronics and IT Companyand IT Company
• • #1 Consumer Electronics Brand Worldwide#1 Consumer Electronics Brand Worldwide
• • Annual Sales over $100 Billion USAnnual Sales over $100 Billion US
• • Operates in over 100 CountriesOperates in over 100 Countries
• • Driven to be #1 in Security ElectronicsDriven to be #1 in Security Electronics
WWW.GVISS.COM
• Samsung and GVI Branded Video Security Surveillance Systems
• Sell Through Distributors, Installers and Dealers
• Industry Leading Service and Technical Support
• 75% Samsung, 25% GVI Branded Products to Supplement Samsung Line
Branding
WWW.GVISS.COM
MAJORRETAILER
MAJOR APPARELRETAILER
Baton Rouge
Parish Schools
Baton Rouge
Parish Schools
Sarasota Sarasota School School
DistrictDistrict
Chesterfield Chesterfield County VA County VA SchoolsSchools
Selected Customers
Joshua IndependentSchool District
Joshua IndependentSchool District
Banco Banco de la Republicade la Republica
ColombiaColombia
Brazil Brazil
MetroMetro
Aduana Mexico Gov’t Customs Organization
Tribunal of Justice de Rio de Janeiro
Poder Judicial Republica de Chile
Guatemala Government Customs Agency
Los Angeles Air Force Base
North Carolina Department of Corrections
WWW.GVISS.COM
Changing Architecture Creates Big Opportunity
Access Control
Closed Circuit Video
Closed Circuit Video
Stand-alone systems loosely integrated via relays or custom software
IP VideoIP based systems integrated via common standards with a master control console
LAN Internet
Analog Cameras
IP Cameras
WWW.GVISS.COM
High EndMarket
Mid Market (SMB)
Entry Level Market
MarketSweet Spot
The High End Enjoys:• Larger project sizes• Reduced price sensitivity
Entry Level Enjoys:• Higher unit volumes• Reduced system complexity• Reduced sale complexity• Shorter sales cycles
Number of Employees
50 to 1000
>1000
<50
Americas VideoMid MarketSize: $1.3BCAGR: 12%
Source: Phare Consulting Inc.
Targeting the Mid Market
WWW.GVISS.COM
Growth Strategy: Core Business
• Strong Strategic Partnership with Samsung
• Samsung has High Growth Goals – Double Market Share
• Strong Partner – $1.5 Million Initial Investment
• Deploying our own resources
• Delivering results up 14% last quarter
• Samsung is Poised to Extend their Leadership in Electronics and IT to the Full Electronic Security Market with GVI as their Strategic Partner
WWW.GVISS.COM
• New Products
• New Distribution Channels
• Fastest Growing Part of Video Security which is the Fastest Growing Part of Security Business
• Samsung is committed to growth and increasing R&D
Growth Strategy: IP
WWW.GVISS.COM
• Video Management Software
• Access Control
• Accessories
• Samsung has Demonstrated Willingness to Co-Invest in Growth and Acquisitions
Growth Strategy: Complementary Acquisitions
WWW.GVISS.COM
2005 2006 2007 (est.)
($12.99) ($4.46) $.05
(9,388) (7,887) 2,300
Gross MarginGross Margin
Income Statement
Pre Tax Income Continuing Ops.Pre Tax Income Continuing Ops.
($ in thousands) 2007 2006 9 mo 2008 9 mo 2007 Net Sales 45,025 43,973 36,393
34,055 Gross Profit % 28.4% 15.0% 29.9% 27.8%
EPS (fully diluted) $0.08 ($4.46) $0.03 $0.03
Net Income 2,637 (16,491) 949 942
Pre Tax Income Cont. Op. 1,463 (13,803) 1,639 978
0.0%
10.0%
20.0%
30.0%
2006 2007 9mo 2007 9mo 2008
$(15,000)
$(12,000)
$(9,000)
$(6,000)
$(3,000)
$-
$3,000
2006 2007 9mo
2007
9mo
2008
WWW.GVISS.COM
($ in thousands) 9-30-08 12-31-07 12-31-06
Total assets
19,694 20,892 17,912
23,328 23,356 16,472
Current assets 22,367 21,752 15,846
Total liabilities
Cash and cash equivalents 31 313 225
9,512 9,292 17,850Current liabilities
Stockholder’s equity 3,634 2,464 (1,440)
Balance Sheet
WWW.GVISS.COM
Favorable Credit Facilities
• $15 Million Secured Credit Facility• Prime + .75%• Resets to Prime + .25% on $1M Net Profit in 2008
WWW.GVISS.COM
Exchange/Symbol: OTCBB/GVSS
Price (2/12/2009): $0.29
Shares Outstanding: 28.1M
Market Capitalization: $8.18M
Price/Sales (ttm): 0.17X
Price/Earnings (ttm) 3.67X
Equity Snapshot
Sep Nov Jan 08
Source: Yahoo! Finance