INX 8-K INX Announces Preliminary 1st Quarter Results

Preliminary Financial Results

1st Quarter Ended March 31, 2009

INX Inc.

Nasdaq: INXI

www.INXI.com

May 4, 2009 Investor Call

1.Brian Fontana:Financial results

2.Mark Hilz:Operations update, vision and strategy

3.Jim Long:Business trends and outlook

4.Take questions

Agenda:

2

GAAP Reconciliation and
Forward-Looking Statements

All financial results shown are for continuing operations unless otherwise noted

GAAP Reconciliation

Safe Harbor Statement

3

Q1 Accomplishments

Achieved revenue slightly above the mid-point of our range of guidance

Service revenue grew 42% y/y to record quarterly level:

Professional services growth:44% y/y

Managed services growth:30% y/y

Gross profit margin percentage rose to record 21.7%

Gross profit dollars rose 3% compared to prior year period

Effectively managed non-revenue-producing costs, with non-sales personnel down slightly
during the quarter

GAAP and Non-GAAP net income results were above consensus analyst expectations

Added 9% more sales personnel during the quarter, taking advantage of opportunities to
position INX to continue gaining market share

Began 5-city marketing event around data center virtualization - positioning for Cisco Unified
Computing System and VMware vSphere 4 availability within the next few months

Brian Fontana

Vice President & CFO

5

First Quarter Operating Results

6

Balance Sheet Data

(dollars in thousands)

7

Summary Of Change In Net Cash In 1Q-2009

(dollars in thousands)

8

Accounts Receivable Quality

% of Total A/R Aged Over 60 Days At Month End Through April 2009

Primary Industry Sector A/R

Mark Hilz

President & COO

10

INX Operations Update

Aggressively managed costs during Q1 and will continue to do so as the economy
improves

Continuing to enhance our voice practice with the upcoming expansion of capabilities in our
enterprise call center practice

Focused on enhancing our security practice especially in our federal business unit to
coincide with the federal government’s emphasis on providing better information assurance
such as being able to thwart hackers like the ones that recently gained access to multiple
DOD and contactors’ IT systems

Introducing new additional managed services offerings during Q2 focused around the
enterprise data center

Continuing to train and recruit resources for our rapidly growing data center/Cloud
Computing practice

11

“Cloud Computing”
The Coming Transformation In The Enterprise Data Center

VMware creates software that allows the creation of virtual servers in a data center rather
than all servers being physical servers.

This technology enables huge advantages for flexibility and cost efficiency in the data
center.It allows you to construct virtual data centers using resources to run applications
that can be a combination of both private and public computing resources.This concept is
called “Cloud Computing”.

Over the next several years a large percentage of enterprise data centers will be
redesigned using virtualization as the fundamental building block of the architecture.

HP, IBM, Cisco, Netapp, EMC and many other vendors are aggressively designing and
launching product strategies around this concept.

In March Cisco announced (and is expected to ship in late June) their Unified Computing
System (“UCS”).This system integrates computing and network resources into a single
unified fabric and enhances connectivity to network storage.It is designed to take full
advantage of virtualization. This is a big departure from server architecture of the past.

VMware just announced a new version of their virtualization software, Vsphere 4 (expected
to ship in late May). This significantly enhances the ability to build a fully virtualized Data
Center and provides substantial cost efficiencies and security enhancements.

With most of the key elements now in place, the transformation to Cloud Computing using
virtualized servers is expected to be the start of the largest transformation in enterprise
technology infrastructure since the invention of the PC.

12

The Total Market And INX’s Position Within It

Wireless

Networking

$3 billion market

INX = $13 million

Unified

Communications

$9 billion market

INX = $43 million

Security

$8 billion market

INX = $17 million

Virtualization

$2 billion market

INX = $3 million

Data Center

Servers

$50 billion market

INX = $2 million

Network

Storage

$45 billion market

INX = $16 million

Market size is total worldwide market
for products, excluding related services

Market size source:IDC; VMware

INX size based on 2008 product billings

13

INX Is Focused On 3 Key Areas Of Enterprise Technology

(dollars in millions)

Today INX is a provider of “enterprise technology infrastructure solutions”
with offerings in three key interrelated areas of enterprise technology:

14

Capacity To Grow Newer Technology Offerings

Market size source:IDC; VMware, based on end-user product
revenues only, excluding services;INX billings is products only

Because video systems
and data center solutions
are more recent additions
to INX’s offerings, there is
better growth potential for
those offerings within
INX’s existing customers
and geographic markets

The total market is large
relative to INX’s
participation in the market

Plenty of room to grow if
we can gain market share

15

INX’s opportunity around Cloud Computing

The new enterprise data center will require solutions integrators to be able to architect a
complete data center with a cloud computing strategy in mind.This means the solutions
integrator must be capable of designing all elements of the data center, including computing,
storage and network resources into an integrated design with virtualization at the core.

This will be a struggle for some legacy integrators that do not have expertise in all three areas.

INX has had a strategy of adding capabilities that are focused on the data center either
organically or through acquisition for more than 2 years.

Many customers will not want to risk having smaller solution providers designing these new
data centers since they are the heart of an enterprise IT infrastructure.This will create a
consolidation opportunity and an opportunity to gain market share.

Hardware and software vendors will work hard to assure solution integrator loyalty around this
large opportunity.This should result in opportunities for solutions integrators that have
substantial practices focused around Cloud Computing.

The complexity and multivendor aspect of these solutions will provide significant growth
opportunities in both the professional services and managed services areas of our business.

INX was built on a much smaller technology transformation around voice moving onto the
network.We have positioned INX to take advantage of this new, larger technology
transformation.

Jim Long

Chairman & CEO

17

Total Revenue

(Dollars in millions)

Ø20% decrease from 3Q-2008 peak

Ø3.5% decrease y/y

Ø170%increase over past 4 years

18

Services Revenue Outperformance

(Dollars in millions)

Product Revenue:

Ø12% decrease y/y for 1Q-2009

Ø125% increase over past 4 years

19

Services Revenue Outperformance
Results In Improving Gross Margin

(Dollars in millions)

Gross Margin On Total Revenue

Service Revenue % of Total Revenue

20

Gross Profit On Total Revenue

(Dollars in millions)

Ø9% decrease from 3Q-2008 peak

Ø3% increase y/y

Ø240% increase over past 4 years

21

Gross Profit & Non-GAAP Net Income

(Dollars in millions)

Gross Profit

Non-GAAP Net Income

$0.9 million of unusual expenses

22

Staffing Trends
- Key To Both Growth and Improving Margins

Dec 31,

2004

+169%

+279%

%

Incr.

Dec 31,

2008

+16%

+37%

Q1-2009

Direct employee costs were68% and 70% of total operating expenses for 2007 and 2008, so
leveraging employee costs is key to improving operating profit margin

Sales staff and engineering staff are direct revenue producing staffing, with engineering staff
reflected as cost of service revenue and sales staff primarily compensated through commissions

In Q1-2009:

Engineering staff:net reduction of 6% due primarily to staff reductions

Sales staff:net increase of 9% due primarily to opportunistic hiring

Non-direct-revenue-producing staff:net reduction of 2% due primarily to staff reductions

Long-Term Trend

%

Incr.

vs.

vs.

2008

Dec 31,

2007

0%

-2%

Mar 31,

2009

%

Incr.

23

Outlook - - General Market Conditions

For the past 18 months enterprise customers have been facing a weak and uncertain
economy + difficult credit markets for funding capital expenditures

Projects with better ROI have been receiving more attention and many customers are
downsizing some of the projects they are moving forward with

Data center virtualization projects have the best ROI of the major categories of technology
that INX offers, however, anticipation of two recent product announcements has negatively
influenced demand recently, and will continue to negatively impact demand in Q2:

Cisco’s recent announcement of their new Unified Computing System, expected to
begin shipping in late June or early July; and

VMware’s recent announcement and pending availability of their new vSphere 4
virtualization software, expected to begin shipping in late May

Customer demand, measured in terms of organic product sales contract/order bookings, a
good near-term indicator of customer demand, on a year-over-year basis, has improved
since a very weak month of January:

24

Outlook - - Expectations For 2Q-2009

We are continuing to provide the same guidance we have for the past several years - a
range of expected revenue for the current quarter

For 2Q-2009 we expect:

     Ø       Total revenue in the range of $56-$60 million compared to prior year period total

                   revenue of $64.0 million

Ø            Services revenue in the range of $11.5-$13.5 million compared to prior year period

         service revenue of $12.6 million

Ø   We continue to maintain our long-term target ranges for gross profit margin of 15%-
        9% for products and 30%-35% for services, and for operating profit margin in the

range of 4%-7%, the achievement of which is dependent upon leveraging certain
operating expenses against revenue growth, with revenue growth begin dependent in
part upon economic conditions

As we have previously stated, we expect both gross margin percentage and operating
profit margin percentage to be pressured somewhat through Q2 due to our efforts to
expand newer practice areas and our efforts to gain market share in a period of soft
customer demand, and because of our efforts to position the company to take advantage
of the substantial data center / cloud computing opportunity

25

Summary / Highlights

Revenue decreased only 3.5% for the quarter in spite of very difficult market conditions,
exceeding growth of benchmark technology industry companies

1st quarter revenue was within our expected range, gross margins were within our target
range, and GAAP and Non-GAAP earnings were above analyst expectations

Growth of our higher margin services revenues grew to record quarterly levels; +41.8% y/y
growth, with professional services growth of 44% and managed services growth of 30%

We further reduced costs in Q1, reducing staffing levels other than sales personnel, where
we were hiring;sales personnel increased 9% in Q1 compared to 12/31/2008

Product order bookings improved throughout the quarter, reflecting improvement in
customer sentiment and improving credit market conditions, in spite of the fact that some
customers continue to await availability of Cisco’s UCS and VMware’s vSphere 4 products

We currently expect Q2 revenue to be flat to a small increase as compared to Q1 in spite
of the fact that Cisco’s UCS product and VMware’s vSphere 4 will not be available in Q2

We currently expect that availability of Cisco’s UCS and VMware’s vSphere 4 will begin to
positively impact customer demand and revenue starting in Q3