Content

Executive Summary
Integration Status
Acquisition Synergies
Operating Expense
Reductions Guiding Principles

Executive Summary

  • Our plan for diversification is under construction.
  • We're getting organized to extract maximum value from the merger
  • We've identified the synergies required to meet our operational plan.
  • We've maintained focus on our long-term vision.

Integration Status

  • Today we want to let you know what is happening on the integration of our two businesses Integration teams have worked over the last 60 days to determine the the changes required to meet our goals
  • Extensive evaluation has been conducted of business needs, product roadmaps, and organization required to meet our objectives
  • Integration of headquarter functions is nearing completion
  • Sales force integration has already taken place
  • The Business Plan was signed off by the Board of Directors on June 6

Acquisition Synergies

  • Anticipated $30- $35 million synergies

  • Synergies were expected from the following:

    • Revenue increases
    • Product cost reductions
    • OpEx savings

  • Revenue

    • While we are seeing some successes, the market remains difficult to predict, competition is intensifying and there is no certainty that we will generate the level of revenue required to deliver the synergy target
    • On last week’s Earnings Call, CEO set out a wide band for revenue in 2025

  • Product Cost Reductions

    • Progress is being made in this area but will not deliver the level of savings required

  • Operating Expense Savings

    • It is important to recognize that while revenues and product cost reductions require the involvement of third parties, Operating Expenses are under our control and we are determined to meet our commitments.
    • To hit our synergy target, we have taken action to remove overlapping activities and reduce the number of locations...

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