Agilysys (AGYS) 8-K Agilysys Reports Unaudited Fiscal 2013 First-Quarter Results

Fiscal 2013 Unaudited First-Quarter Results

July 26, 2012

Exhibit 99.2

Agilysys, Inc. (Nasdaq: AGYS)

Forward-looking statements & non-GAAP financial

information

Forward-looking statements & non-GAAP financial

information

Forward-Looking Language

This presentation and other publicly available documents, including the documents incorporated herein and therein by reference, contain, and

our officers and representatives may from time to time make, "forward-looking statements" within the meaning of the safe harbor provisions of

the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: "anticipate,"

"intend," "plan," "goal," "seek," "believe," "project," "estimate," "expect," "strategy," "future," "likely," "may," "should," "will" and similar

references to future periods. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions

that

are

difficult

to

predict.

These

statements

are

based

on

management’s

current

expectations,

intentions

or

beliefs

and

are

subject

to

a

number of factors, assumptions and uncertainties that could cause actual results to differ materially from those described in the forward-

looking statements. Factors that could cause or contribute to such differences or that might otherwise impact the business include the risk

factors

set

forth

in

Item

1A

of

the

company’s

Annual

Report

for

the

fiscal

year

ended

March

31,

2012.

Copies

are

available

from

the

SEC

or

the Agilysys website. We undertake no obligation to update any such factor or to publicly announce the results of any revisions to any

forward-looking statements contained herein whether as a result of new information, future events or otherwise.

Use of Non-GAAP Financial Information

To supplement the unaudited condensed consolidated financial statements presented in accordance with U.S. GAAP in this press release,

certain non-GAAP financial measures as defined by the SEC rules are used. These non-GAAP financial measures include adjusted operating

loss, adjusted net loss and adjusted cash flow from operations. Management believes that such information can enhance investors'

understanding of the company's ongoing operations. See the accompanying tables below for reconciliations of adjusted operating income

(loss) and adjusted net income (loss), and adjusted cash flow from operations, to the comparable GAAP measures.

2

2

Q1 review: consolidated results from continuing

operations

Q1 review: consolidated results from continuing

operations

3

Q1 Year-over-Year Commentary

Statement of Operations ($Mil., except per share)

3

•

Consolidated revenue decreased $1.0M

•

Products revenue decreased 14%

•

Support, Maintenance and Subscription

Services grew 5%

•

Professional Services increased 28%

•

Gross profit increased 13% and gross margin,

as a percentage of sales, increased 5.1% on

improved revenue mix

•

Restructuring charges totaled $1M

•

Adjusted operating income increased $3.5M to

$1.0M, reversing prior-period loss of $2.5M

•

Adjusted net income grew $3.6M

•

Adjusted EPS improved to $0.03, compared

with loss of $0.12 in fiscal 2012

Three Months Ended

June 30

2012

2011

%

Revenue:

Products

$24.1

$28.0

(13.7%)

Support, maintenance and

subscription services

$18.4

$17.5

5.2%

Professional services

$9.1

$7.1

27.8%

Total revenue

$51.6

$52.6

(1.8%)

Products

$18.9

$23.3

(19.1%)

Support, maintenance and

subscription services

$6.8

$6.5

5.1%

Professional services

$5.6

$4.7

18.7%

Cost of goods sold

$31.3

$34.5

(9.4%)

Gross profit

$20.4

$18.1

12.7%

39.5%

34.4%

Operating loss

($1.4)

($8.4)

Adjusted operating income (loss)

$1.0

($2.5)

Adjusted net income (loss)

$0.7

($2.9)

Adjusted net income (loss) per share

$0.03

$  (0.12)

Q1 review: Hospitality (“HSG”)

Q1 review: Hospitality (“HSG”)

•

Total revenue increased 15%

•

Products revenue increases 44% on higher

software sales and prior-period adjustment

•

Support, maintenance and subscription

services increased 7%

•

Professional Services 2%, respectively

•

Gross margin expanded 420 basis points due

to shift to higher-margin business and

increased sales of proprietary software

•

Operating income increased to $3.2M vs.

loss of $1.0M in 1Q FY12

•

Adjusted operating income grew $3.3M to

$4.2M

4

HSG Segment Profit ($Mil.)

Q1 Year-over-Year Commentary

4

Three Months Ended

June 30

2012

2011

%

Revenue:

Products

$6.6

$4.5

44.2%

Support, maintenance and

subscription services

$12.4

$11.6

6.5%

Professional services

$3.4

$3.4

1.8%

Total revenue

$22.4

$19.5

14.5%

Cost of goods sold

$7.7

$7.5

5.1%

Gross profit

$14.7

$12.0

22.2%

65.6%

61.4%

Operating income (loss)

$3.2

($1.0)

Adjusted operating income

$4.2

$0.9

Q1 review: Retail (“RSG”)

Q1 review: Retail (“RSG”)

•

Revenue declined 11% due to decline in

Products revenues

•

Gross profit margin expanded 110 basis

points as a result of a improved revenue mix

•

Operating income was $1.7M, compared with

$1.8M last year

•

Adjusting for stock compensation and

restructuring charges, operating income was

$1.9M, versus $2.2M in FY 2012’s first

quarter

5

RSG Segment Profit ($Mil.)

Q1 Year-over-Year Commentary

5

Three Months Ended

June 30

2012

2011

%

Revenue:

Products

$17.6

$23.4

(25.0%)

Support, maintenance and

subscription services

$6.0

$5.9

2.6%

Professional services

$5.7

$3.8

51.1%

Total revenue

$29.3

$33.1

(11.4%)

Cost of goods sold

$23.6

$27.0

(12.6%)

Gross profit

$5.7

$6.1

(6.2%)

19.5%

18.4%

Operating income

$1.7

$1.8

Adjusted operating income

$1.9

$2.2

Q1 review: Corporate and Company Adjusted

Operating Expenses

Q1 review: Corporate and Company Adjusted

Operating Expenses

•

Relocation of corporate services and staff

ramp-up in Atlanta are essentially complete

•

Realized cost savings are on plan

Excluding stock-based compensation:

•

Product development expenses decreased

$1.6M, or 20.5%;

•

Sales and marketing expenses

increased

$0.4M, or 7.3%; and

•

General and administrative expenses

decreased $0.9M, or 12.2%.

6

Corporate continuing operations

Q1 Year-over-Year Commentary

6

Company adjusted operating expenses

Three Months Ended

June 30

($Mil)

2012

2011

Consolidated operating expenses as reported:

Product development

$ 6.3

$ 7.9

Sales and marketing

5.9

5.6

General and administrative

6.8

8.7

Depreciation

0.7

1.0

Total

$19.7

$23.2

Stock-based compensation:

Product development

$  0.1

$ 0.1

Sales and marketing

0.0

0.1

General and administrative

0.3

1.3

Total

$  0.4

$ 1.5

Adjusted operating expense:

Product development

$  6.2

$ 7.8

Sales and marketing

5.9

5.5

General and administrative

6.5

7.4

Depreciation

0.7

1.0

Total

$19.4

$21.7

Three Months Ended

June 30

2012

2011

Total revenue

$0.0

$0.0

Cost of goods sold

$0.0

$0.0

Gross profit

$0.0

$0.0

Operating loss

($6.3)

($9.2)

Adjusted operating loss

($5.1)

($5.6)

Fiscal 2013 Q1 review: summary cash flow

performance and key balance sheet metrics

Fiscal 2013 Q1 review: summary cash flow

performance and key balance sheet metrics

•

Cash and liquid investments on hand decreased to $80.3M from $97.6M

•

Fiscal 2013 1Q Uses of Cash Included:

•

$6.3M in BEP/SERP payments

•

$3.7M in cash expenses related to restructuring activities

•

Other cash outlays included annual bonus payments, audit and litigation expenses

•

Working capital management resulted in a decrease of approximately $6M in cash during the

quarter

•

Deferred

revenue

increased

32%

to

$25M,

from

$19M,

at

the

end

of

the

prior

fiscal

year’s

first

quarter on higher annual support and maintenance contract awards

7

7

8

8

Fiscal 2013 Outlook

Fiscal 2013 Outlook

Agilysys, Inc. (Nasdaq: AGYS)

Agilysys, Inc. (Nasdaq: AGYS)

Fiscal 2013 Unaudited First-Quarter Results

Questions & Answers

July 26, 2012

Reconciliation of operating income (loss) to adjusted

net income (loss) (unaudited)

Reconciliation of operating income (loss) to adjusted

net income (loss) (unaudited)

10

10

2012

2011

Operating loss

(1,386)

$    

(8,362)

$        

Stock-based compensation expense

353

1,481

Amortization of intangibles

880

931

Asset impairments and related charges

208

-

Impact from revision to prior-period financial statements

-

1,127

Restructuring and related charges

961

2,346

Adjusted operating income (loss) from continuing operations (a)

1,016

(2,477)

Other expense, net

290

268

Cash income tax expense (b)

36

124

Adjusted net income (loss) (a)

690

$        

(2,869)

$        

Weighted average shares outstanding: basic and diluted

21,836

22,953

Adjusted net income (loss) per share (a)

0.03

$       

(0.12)

$          

(a) Non-GAAP financial measure

(b) Taxes calculated based upon our cash tax rate for the three months ended June 30, 2012 and 2011

(In thousands, except per-share data)

Three Months Ended

June 30,

Reconciliation

of operating cash flows from continuing

operations to adjusted cash flow from continuing operations

(unaudited)

Reconciliation

of operating cash flows from continuing

operations to adjusted cash flow from continuing operations

(unaudited)

11

11

Three Months Ended

(In thousands)

June 30,

2012

2011

Operating activities:

Net cash used in continuing operations

$   (19,807)

$    (8,679)

Non-recurring cash items:

Restructuring payments

3,707

344

BEP/SERP payments

6,271

--

Adjusted cash used in continuing operations

$    (9,829)

$    (8,335)