SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Current Report Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report: November 17, 2000
COLORADO MEDTECH, INC.
(Exact name of registrant as specified in its charter)
Colorado 000-12471 84-0731006
(State or other jurisdiction (Commission File I.R.S. Employer
of incorporation) Number) Identification No.)
6175 Longbow Drive
Boulder, Colorado 80301
(Address, including zip code, of principal executive offices)
(303) 530-2660
(Registrant's telephone number,
including area code)
Item 7. Financial Statements and Exhibits
(c) Exhibits
No. Description
99.1 Investor and analyst presentation materials of the President and
Chief Executive Officer of Colorado MEDtech, Inc. used at the
November 17, 2000 annual meeting of shareholders and to be used
from time to time thereafter.
Item 9. Regulation FD Disclosure
On November 17, 2000, Colorado MEDtech, Inc. held its annual meeting of
shareholders. A copy of the presentation materials of the company's President
and Chief Executive Officer that were used at that meeting and which are to be
used from time to time thereafter is filed as Exhibit 99.1 hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
DATED this 17th day of November, 2000.
COLORADO MEDTECH, INC.
By: /s/ Peter J. Jensen
Peter J. Jensen
Vice President
Exhibit 99.1
Slide 1:
Safe Harbor Statement
The statements in this presentation that are not historical facts are
forward-looking statements that represent management's beliefs and assumptions
based on currently available information. Forwardlooking statements can be
identified by the use of words such as "believes," "intends," "may," "will,"
"should," "anticipated" or comparable terminology or by discussions of strategy.
Although the Company believes that the expectations reflected in such
forward-looking statements are reasonable, it cannot assure that these
expectations will prove to be correct. Such statements involve risks and
uncertainties including, but not limited to, the risk that the Company's
existing level of orders may not be indicative of the level or trend of future
orders, the risk that the Company may not successfully complete the work
encompassed by current or future orders, the risk that unforeseen technical or
production difficulties may adversely impact project timing and financial
performance, the risk that the management changes will not produce the desired
results, the risk of potential litigation, the risk that acquired companies
cannot be successfully integrated with the Company's existing operations and the
risk that a downturn in general economic conditions or customer budgets may
adversely affect research and development and capital expenditure budgets of
potential customers upon which the Company is dependent. Should one or more of
these risks materialize (or the consequences of such a development worsen), or
should the underlying assumptions prove incorrect, actual results could differ
materially from those forecasted or expected. These factors are more fully
described in the Company's documents filed from time to lime with the Securities
and Exchange Commission. The Company assumes no duty to update any
forward-looking statements.
Slide 2:
Colorado MEDtech, Inc;.
Graphic: Photo montage of Colorado Medtech, Inc. products
Slide 3:
OUR VISION
To be the worldwide leader in advanced medical products outsourcing - design,
development, critical components and manufacturing.
Slide 4:
Executive Summary
On June 23, 2000 Stephen K. Onody was appointed CEO and quickly:
- - Implemented a corporate restructuring program
- - Appointed a new management team
- - Positioning the Company for a near-term turnaround and operating margin
improvement
- - Announced board authorization of a 10% share repurchase program on August 22,
2000
- - Greater focus on strengthening core businesses in designing, engineering and
manufacturing of value-added medical products to establish the platform for
future growth
-- CMED RELA
-- Imaging & Power Systems ("IPS")
-- CMED Manufacturing ("CMED MFG")
Slide 5:
Executive Summary
- - Cultivation of CIVCO's growth potential
- - Assessment of non-core businesses
- - Rationalization of the overall Company to enhance long-term profitability
and growth as a quality leader in its core businesses
- - HEI, Inc. announced it will not commence exchange offer for CMED
Slide 6:
Executive Summary
- - Greater focus on restoring investor goodwill
- - Greater focus on key success elements:
-- People and management team
-- Processes
-- Customer satisfaction
-- Sales and profitability
-- Execution across ALL functions
Q1 Results: We did what we said we would do.
Slide 7:
Key Accomplishments FY01 Q1
PEOPLE and MANAGEMENT TEAM
- - Significant progress in hiring and retaining technical personnel
- - Morale improvements continue
- - New management
-- Bill Wood: Senior VP Product Development and Technology
-- Greg Gould: Chief Financial Officer
-- Richard Schoen: VP Business Development
-- Kenneth Taylor, Ph.D.: VP and RELA GM
-- Frank Maguire: Chief Operations Officer
-- Chuck Philipp: VP Sales
Slide 8:
Key Accomplishments FY01 Q1
Processes and Infrastructure
- - Developed a manufacturing plan which addresses:
-- People
-- Systems
-- Facilities
-- Quality
- - Emphasizing training
- - Upgrading material control systems
- - Establishing manufacturing centers
- - Consolidating facilities
We have made organizational changes in order to achieve our goal of developing a
world-class manufacturing organization.
Slide 9:
Key Accomplishments FY01 Q1
CUSTOMER SATISFACTION
- - Expanded existing business with current customers
- - Added 10 new customers
- - Continue to transition key projects from development to manufacturing
Slide 10:
"OneSource OutSource"TM
Sales and Profitability
- - Continued focus on "OneSource OutsourceTM" strategy
Graphic: Drawing of funnel
"Filling the Funnel": Sales = Design & Engineering = Marketing = Specialized
Manufacturing = Products
- - One-stop service
- - Faster time to market
- - Innovative technical solutions
- - Integrated development and manufacturing
Results: Increased Bookings
Slide 11:
Key Accomplishments FY01 Q1
EXECUTION
- - Execution across all functions:
-- People: timely reviews, training, salary and bonus
-- Processes: centralize, streamline, align with customer requirements
-- Customer satisfaction: linked to bonuses
-- Sales and profitability: linked to commission plans and bonuses
Slide 12:
U.S. Outsource Market (1998 figures)
- - $60B Medical Device Market Growing 8-10% per year
- - $90B Electronics Manufacturing Services Market Growing 25% per year
- - $3B Medical Device Outsourcing Market
Source: HIMA, Technology Forecasters, Inc. and analyst estimates
Graphic: Photo montage of products
Slide 13:
A Closer Look:
CMED's Portion of the Outsourcing Market:
- - Ultra-High Tech and Value Added
- - Low Value Built-to-Print
Graphic: Photo montage of products
Slide 14:
Current Core Organizational Structure
- - Colorado MEDtech
FY2000 Revenue: $74.0MM
EBIT $7.1MM (Excludes non-recurring items)
-- CMED RELA
-- IPS
-- CMED MFG
-- CIVCO
Slide 15:
Core Business Units -- CMED RELA
CMED RELA
- - Custom engineering, design and development for medical products which
include diagnostics, biotechnology, therapeutics and software
- - Objectives for FY2001
-- Continue expansion strategy: 5 new customers and 6 new contracts
added in Q1
Slide 16:
Core Business Units -- Imaging & Power Systems
IPS
- - Outsourcing services and products for medical imaging system market
- - Objectives for FY2001
-- Product Pipeline
- Fully commercialize Computed Tomography ("CT") power source
- Development of state-of-the art MRI system for Hitachi
- Development of MRI -- Solid state power source
- Increase sales by capitalizing on strong relationships with existing
customer base
- Launch sales and marketing efforts on new accounts
- Expansion strategy: new products with existing customers: 5 new
contracts in Q1
Slide 17:
Core Business Units -- Manufacturing
CMED MFG
- - Manufacture of engineered medical products for the diagnostic,
biotechnology and therapeutic markets
- - Objectives for FY2001
-- Improve manufacturing processes to achieve economies of scale
-- Continue expansion strategy: 4 new customers and 6 new contracts added
in Q1
Slide 18:
Core Business Units -- CIVCO
CIVCO
- - Develops and manufactures specialized medical products for ultrasound
imaging and minimally invasive surgical equipment
- - Objectives for FY2001
-- Focus on corporate accounts for single source solutions in product
development and distribution
-- Expansion of market opportunity via exclusive development arrangements
with manufacturers
Slide 19:
Conclusion: "Achieving our vision"
- - Focus on core operations will improve profitability and operating cash flow
while providing a more complete solution for our clients
- - Rationalization and integration of business units will also improve
operating margins
- - Re-dedication to strong customer service and customer satisfaction will
lead to revenue growth acceleration due to new contracts in core businesses
Slide 20:
Conclusion: "Achieving our vision"
- - Performance-based stock and bonus compensation will continue to improve
employee satisfaction and align their interests with shareholders
- - Once operating turn-around is substantially completed, strategic
acquisitions and alliances will create synergies and further power growth
Slide 21:
Key Accomplishments FY01 Q1
Financial
- - Revenue $17 million
- - $489K net income and $0.04 EPS prior to one-time charges
- - Net cash flow provided by operating activities of $1.2 million
- - Bookings increased--keeps us on track toward meeting goals announced on
August 22, 2000
- - Strengthened balance sheet
-- $19.1 million up from $16.8 million
-- A/R decreased $2.6 million
-- Debt ~ $100K
-- Current Ratio 3.4 to 1 compared to 3.3 to 1
Slide 22:
Key Accomplishments FY01 Q1
We did what we said we would do.
We expect to see continued quarter over quarter improvement in revenue and net
income, excluding one-time charges.