Southwall
Technologies
Needham and Company
Growth Conference
New York, January 2005
Forward Looking Statements
Our comments this afternoon may contain forward-
looking statements as that term is defined in the Private
Securities Reform Act of 1995, including, without
limitation, statements regarding the Company’s
expectations, beliefs, intentions or strategies regarding
the future. All forward-looking statements included in
our presentation and discussion today are based on
information available to the Company today. The
Company assumes no obligation to update any such
forward-looking statements. Further risks are detailed
in the Company’s filings with the SEC.
Financial
Overview
2004 Financial Highlights
A year of:
Successful restructuring and financial recovery
Increasing quarterly revenues
Improving gross margins
A return to profitability & positive cash flow
Strengthening our balance sheet
Operations Statement Summary
$ in
Millions
Balance Sheet Summary
$40.0
$22.5
$41.7
$13.9
$1.9
2003
$36.1
$16.8
$76.6
$17.5
$2.0
2002
$39.9
Total Assets
$12.0
A/R and Inventory
$42.9
Total Liabilities
$3.3
Total Cash and
Equivalents
$18.8
Short & Long term
Debt
9/04
( Period Ending $ in millions )
Target Business Model
(8)
17
12
6
7
34
12
16
37
35
100%
YTD 9/04
15 - 20
17
14
Window Film
3
4
4
Non Op Charges
7 - 13
8 - 9
7 - 8
7 - 8
35 - 38
5 - 10
35 - 40
35 - 40
~ 12 Mo.
Target
13
(79)
Net income
9
16
G&A
5
13
R&D
5
7
Sales / Marketing
36
14
Gross profit
13
10
Architecture
41
36
Display
29
40
Automotive
100%
100%
Revenues
Q3 04
2003
(percent of revenues )
2005 Financial Trends & Goals
Continued profitability and positive cash flows from
Operations
Stable overall revenue growth trends with net single digit
Revenue growth into 2005
Plasma product cost reductions efforts underway to take
advantage of strong unit growth opportunities
Enhancements to our Marketing and Development
capabilities
Financial consistency & positioning for growth