Integral Systems (ISYS) 8-K This presentation contains forward-looking statements within the meaning of

FALL 2009

Exhibit 99.1

2

SAFE HARBOR

INTEGRAL SYSTEMS

•

This presentation contains forward-looking statements within the meaning of

Section 27A of the Securities Act of 1933 and Section 21E of the Securities

Exchange Act.  Such forward-looking statements include, but  are not necessarily

limited to, our anticipated financial performance, business prospects, technological

developments, new products, research and development activities and similar

statements concerning anticipated future events and expectations that are not

historical facts.

•

These forward-looking statements are based on current information and

expectations. We caution you that these statements are not guarantees of future

performance and are subject to numerous risks and uncertainties, including our

reliance on contracts and subcontracts funded by the U.S. government, intense

competition in the ground systems industry, the competitive bidding process to

which our government and commercial contracts are subject, our dependence on

the satellite industry for most of our revenues, rapid technological changes in the

satellite industry, our acquisition strategy and other risks and uncertainties noted in

our Securities and Exchange Commission filings, including our Annual Report on

Form 10-K for the year ended September 30, 2008, and subsequent filings.  We

undertake no obligation to publicly update or revise any forward-looking statement,

whether as a result of new information, future events or otherwise.

3

OUR VISION

To be the market leader

in providing integrated

solutions for satellite and

terrestrial networks

INTEGRAL SYSTEMS

4

INTEGRAL SYSTEMS

AT A GLANCE

•

NasdaqGS:

ISYS

•

Founded:

1982

•

Est. FY2009 Sales:

$164.0 million

•

Est. FY2009 Earnings:

$2.9 million/$0.15 per diluted share

•

Employees:

600 employees -

13 Locations in five countries

U.S.

SBA

Region

III

Contractor

of

the

Year,

2009

Washington

Post

Top

200

Companies,

2009

Forbes

Top 200 Small Companies in America, 2008

5

INTEGRAL SYSTEMS

BUSINESS APPROACH

World Class Systems

Engineering

Best-In-Class Commercial

Product-Based Solutions

Back to Basics

•Disciplined Investment in R&D and B&P

•Reduction of Indirect and Unallowable Costs

•Improved Communications

•Improved Forecasting

•Renewed Focus on Core Business

Improved Performance

•Emphasis on Backlog Growth & Gross Margin

•Reasonable Organic Growth

•Strategic Acquisitions

•Focus on Next Nearest Market Opportunities

-Other Military Services

-Managed Services

-Network: Design, Installation, Operation

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CUSTOMER COMMITMENT

Our Commitment to Customer Service…

Integral Systems Has Supported 250+ Satellite Missions

INTEGRAL SYSTEMS

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ALIGNED OPERATIONS

INTEGRAL SYSTEMS

Military &

Intelligence

Civil &

Commercial

Products

Services

•

US Air Force

•

DISA

•

Intelligence

•

NASA

•

NOAA

•

Commercial

Operators

•

International

•

U.S. Military

•

Satellite

Operators

•

Network

Operators

•

Commercial and

government

satellite operators

•

Space Situational

Awareness

•

U.S. Army, U.S.

Navy

•

NATO

•

Antenna/RF

systems integration

•

Leverage footprint

•

DHS

•

Military Test

Range

•

Interference

detection,

characterization,

and geolocation

•

Satellite

communications

managed services

•

Technical support

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NOC

Toulouse

NOC         

C. Springs

UK

UAE

Hawaii

Singapore

Brazil

Australia

NOC

Columbia

GLOBAL OPERATIONS

Current presence

Future Services Expansion (Teleports)

Future Network Operation Center (Services)

INTEGRAL SYSTEMS

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SERVICE SOLUTIONS

Services Offered

•

Network Operations Management

-

Network planning, resource

allocation, and link optimization

-

Satellite transponder, network, and

link Quality of Service monitoring

-

RF interference detection and

geolocation

-

Service Level Agreement (SLA)

validation

•

Technical Services & Sustainment

-

Remote monitoring and control of

equipment at teleport & customer

ground terminal facilities

-

Tech refresh and sustainment

-

Expert operations and maintenance

services

•

Systems Integration

-

Low cost turn-key systems

integration capabilities

Rollout Strategy

1. Initial Infrastructure from current

ISYS products

-

satID

from RT Logic (geolocation)

-

Monics

from SAT Corp. (signal

monitoring)

-

Compass from Newpoint

(network

management)

-

Antennas purchased COTS

-

COTS work stations and servers

2. Global Services offered initially to

existing customer through existing

sales channels

3. Grow regionally as customer base

evolves

-

Leverage current international

sales channels

INTEGRAL SYSTEMS

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GROWTH STRATEGY & MARKETS

•

Interference Detection &

Geolocation

•

Emerging Niche Satellite

Operators

•

Expanded Military Footprint

•

Space Situational

Awareness

•

Network Operations

–

Remote site monitoring

–

Data fusion

–

Payload  signal processing

•

Managed Services

–

Outsourced operations

management and

systems monitoring

–

Service-level

agreement/Quality of

Service (QoS)

management

INTEGRAL SYSTEMS

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DIVERSIFIED GLOBAL PERSPECTIVE

Recent Contract Awards:

•Restructured U.S. Air Force contract for

rapid attack, identification, detection

(RAIDRS): $77.0M ceiling

•Command and Control System –

Consolidated (CCS-C): $7.5M Extended

through 2011

•Hill Air Force Base: $4M new contract

Key Updates:

•

Opened Integral Systems Europe UK in

FY2009

•

Expect International to represent over

10% of total revenue in FY10

•

Announced 6 new/expanded contracts in

Asia in FY09 totaling ~$15M

*BASED UPON FY 2009 RESULTS

INTEGRAL SYSTEMS

SALES BY SEGMENT*

SALES GEOGRAPHY*

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FINANCIAL OVERVIEW

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FY 2010 OUTLOOK & RECENT UPDATES

Back to Basics Management Approach

•

Cost-cutting measures implemented

•

Aligned for growth –

capitalize on installed base

•

Completed infrastructure investments

Management Enhancement

•

Appointment of Paul G. Casner

as President &

CEO

•

Appointment of Maj

Gen (Ret.) H. Marshal Ward as

COO

Business Developments

•

Major Air Force Contracts extended through

2011/2012 -

Over $50Min new backlog

•

International Expansion

-

Approx. $15.0M in Asia in FY09

-

Significant European contracts with CNES,

Thales, NATO

INTEGRAL SYSTEMS

FY10 GUIDANCE

Revenue

$170M -

$174M

Gross Profit Margin

35% -

37%

EBITDA

$20M

Bookings

$200M

Cash Flow from

Operations

$25M -

$30M

FINANCIALS

REVENUE

EBITDA & MARGIN

GROSS PROFIT MARGIN

CAPITAL EXPENDITURES

INTEGRAL SYSTEMS

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BOOKINGS, BACKLOG, AND PIPELINE

Key Opportunities

FY10 –

FY12

•

Space Network Ground Segment

Sustainment

•

GPS Operational Control Segment

(OCX) Phase B

•

Restricted Program, National

Reconnaissance Office (NRO)

•

RAIDRS ECP 10

•

Space Situational Awareness

•

NATO Expansion

•

Managed Services

•

Antenna and Ground System

Integration (ISE UK)

INTEGRAL SYSTEMS

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SUMMARY

INTEGRAL SYSTEMS

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Back-Up

INTEGRAL SYSTEMS

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Use of Non-GAAP Financial Measures

INTEGRAL SYSTEMS

EBITDA (earnings before interest, taxes, depreciation and amortization) is a non-GAAP financial

measure used by management to evaluate operating performance.  Management believes that

the presentation of EBITDA helps management and investors to make a meaningful comparison

between our operating results and those of other companies, as well as providing a consistent

comparison of our relative historical financial performance.  The presentation of this non-GAAP

financial measure is not to be considered in isolation or as a substitute for our financial results

prepared

in

accordance

with

GAAP.

Below

are

reconciliations

of

fiscal

years

2007

-

2012

net

income to EBITDA:

Fiscal Year Ended September 26, 2009

2007

2008

2009(P)

2010(E)

2011(E)

2012(E)

($ millions)

Net Income

$      12.8

$      18.2

$        2.9

$        8.0

$      13.5

$      16.0

Other Income (Expense), net

(2.2)

(0.3)

0.1

0.4

0.6

0.8

Provision for Income Taxes

6.3

7.1

0.1

4.5

5.5

6.2

Income From Operations

$      16.9

$      25.0

$        3.1

$      12.9

$      19.6

$      23.0

Non-Cash Stock Compensation

0.9

1.1

3.5

3.1

3.2

3.5

Depreciation and Amortization

3.0

2.6

4.3

5.0

5.2

5.5

EBITDA

$      20.8

$      28.7

$      10.9

$      21.0

$      28.0

$      32.0