EXHIBIT 99.1
Slide 1
Annual Shareholder Meeting
November 16, 2001
24 Years of Innovation
Graphic: Photographs of products designed, developed, manufactured or
proprietary of Colorado MEDtech, Inc.
Graphic: Colorado MEDtech, Inc. logo
Slide 2
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. Forward-looking statements can be
identified by the use of words such as "believes," "expects", "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 existing and potential litigation, the risks associated
with regulation by the Federal Food and Drug Administration including compliance
with the Quality System Regulation, the risk that acquired companies cannot be
successfully integrated with the Company's existing operations, 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 and other factors as are more fully
described in the Company's documents filed from time to time with the Securities
and Exchange Commission. 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. The Company disclaims any intention or obligation to update publicly
or revise any forward-looking statements whether as a result of new information,
future events or otherwise.
Graphic: Colorado MEDtech, Inc. logo
Slide 3
Agenda
- - FY 2001 Highlights
- - FY 2001 Technology Demonstration
- - Why This Is a Good Business
- - Growth Strategies
- - The Future of Colorado MEDtech
- - Questions & Answers
Graphic: Photograph of TheraSense(TM)PDA-based glucose meter
Graphic: Colorado MEDtech, Inc. logo
Slide 4
FY 2001 Highlights
Graphic: Photographs of products designed, developed, manufactured or
proprietary of Colorado MEDtech, Inc.
Graphic: Colorado MEDtech, Inc. logo
Slide 5
FY 2001: A Transition Year
- - We expected a transition year as we focused on infrastructure
- - We worked through challenges
- - We are now poised to move forward
Graphic: Photograph of TheraSense(TM)PDA-based glucose meter
Graphic: Colorado MEDtech, Inc. logo
Slide 6
Goals We Set
Strengthen management team
Improve quality systems and infrastructure
Integrate business operations
Expand the business
Graphic: Drawing with the word "Goals" in center; arrows indicating each of
the goals set as listed above
Graphic: Colorado MEDtech, Inc. logo
Slide 7
Unexpected Challenges
FDA warning letter
Cancellation of manufacturing program by Hitachi
Graphic: Colorado MEDtech, Inc. logo
Slide 8
FY 2001
A year of significant accomplishments
Graphic: Colorado MEDtech, Inc. logo
Graphic: Arrow backing photographs of products designed, developed,
manufactured or proprietary of Colorado MEDtech, Inc.
Slide 9
Accomplishments
Strengthened management team
Added 4 new players to executive team:
- - Division President
- - VP Quality & Regulatory Affairs
- - Senior VP Product Development & Technology
- - VP Sales
Strongest and most experienced team
Graphic: Photograph of Cochlear, Inc.'s Crystal Integrity Test System(TM)
Graphic: Colorado MEDtech, Inc. logo
Slide 10
Accomplishments
Improved quality systems
- - Implemented comprehensive quality program
- - Hired experienced personnel
- - Achieved resolution of FDA warning letter
Graphic: Photograph of Xanthon Xpression Analysis System(TM)
Graphic: Colorado MEDtech, Inc. logo
Slide 11
Accomplishments
Focused business by integrating operations
- - Restructured manufacturing
- savings of $2M
- - Divested non-core business
- CMED Catheter for $1.3M cash
- - Phased out 2 units
- CMED Automation
- BioMed Y2K
Graphic: Photograph of CIVCO engineers in front of CAD workstation
Graphic: Colorado MEDtech, Inc. logo
Slide 12
Accomplishments
Expanded the business
- - Introduced Link-iT(TM)
- medical device connectivity technology
- - Allied with Red-M(TM)
- provider of Bluetooth(TM)wireless connectivity solutions
- - Acquired imaging products line from ATL Ultrasound
- strengthens our medical products segment
Introduced leading-edge technologies
Strengthened our intellectual property
Graphic: zPhotograph of Link-iT(TM)medical device connectivity module shown
with Nellcor Puritan Bennett, Inc. pulse oximeter. Photo used by permission of
Nellcor Puritan Bennett, Inc.
Graphic: Colorado MEDtech, Inc. logo
Slide 13
Accomplishments
Positive results in a transition year
Revenues
Graph comparing fiscal year 2000 and fiscal year 2001
($ in millions)
FY2000 $74M
FY2001 $77M
+4% (with graphic of arrow)
Booked Orders
Graph comparing fiscal year 2000 and fiscal year 2001
($ in millions)
FY2000 $65M
FY2001 $85M
+31% (with graphic of arrow)
Graphic: Colorado MEDtech, Inc. logo
Slide 14
Accomplishments
Positive results in a transition year
Backlog
Graph comparing fiscal year 2000 and fiscal year 2001
($ in millions)
FY2000 $29M
FY2001 $37M
+28% (with graphic of arrow)
New Customers
Graph comparing fiscal year 2000 and fiscal year 2001
FY2000 17
FY2001 28
+65% (with graphic of arrow)
Graphic: Colorado MEDtech, Inc. logo
Slide 15
FY 2001 Technology Demonstration
Graphic: Photographs of products designed, developed, manufactured or
proprietary of Colorado MEDtech, Inc.
Graphic: Colorado MEDtech, Inc. logo
Slide 16
What is Connectivity?
- - Ability to connect medical devices to hospital computer systems
- - Hard-wired or wireless
- - Connectivity supports:
- Value-added use of information
- Improved patient care
Graphic: Photograph of Link-iT(TM)medical device connectivity module shown
with Nellcor Puritan Bennett, Inc. pulse oximeter
Graphic: Colorado MEDtech, Inc. logo
Slide 17
Introducing Link-iT(TM) Technology
- - Link-iT is a hardware and software solution
- - Proprietary technology under provisional patent
- - Value-added connection of:
- Instruments
- Hospital information systems
- Care providers
Graphic: Photograph of Link-iT(TM)medical device connectivity module shown
with Nellcor Puritan Bennett, Inc. pulse oximeter
Graphic: Colorado MEDtech, Inc. logo
Slide 18
Link-iT(TM) Advantages
- - Meets current market needs for interconnection
- - Platform for providing:
- Patient billing
- Remote instrument servicing
- Monitoring of consumable use
Graphic: Photograph of Link-iT(TM)medical device connectivity module shown
with Nellcor Puritan Bennett, Inc. pulse oximeter
Graphic: Colorado MEDtech, Inc. logo
Slide 19
What is Gene Expression?
- - Genes determine the role of cells
- - Modern pharmaceuticals affect genes and cell function
- - Gene Expression Analysis is a tool to understand how drugs impact
certain genes
- - Used to identify promising compounds
Graphic: Photograph of Xanthon Xpression Analysis System(TM)
Graphic: Colorado MEDtech, Inc. logo
Slide 20
New Technology: Xanthon
Colorado MEDtech designed, developed and is manufacturing
- - Supports rapid gene expression
- - Leverages patented detection chemistry
- - Surpasses conventional, biochemical-based approaches
Colorado MEDtech designed, developed and is now manufacturing
Graphic: Photograph of Xanthon Xpression Analysis System(TM)
Graphic: Colorado MEDtech, Inc. logo
Slide 21
Making a Difference
- - Excitement in technology
- - Excitement in healthcare applications
- - Excitement in our business sector
Graphic: Photograph of nurse at computer
Graphic: Colorado MEDtech, Inc. logo
Slide 22
Why This is a Good Business
Graphic: Photographs of products designed, developed, manufactured or
proprietary of Colorado MEDtech, Inc.
Graphic: Colorado MEDtech, Inc. logo
Slide 23
Why This is a Good Business
1. Positioned in a long-term growth market
2. Focused on attractive niche
3. Customers include industry leaders
4. Full service OneSource OutSource(TM)
5. Strong financial position
Graphic: Colorado MEDtech, Inc. logo
Slide 24
1. Positioned in Long-Term Growth Market
Electronics Manufacturing Services (EMS) Market ($B)
Graph depicting estimated growth of the EMS market
1998 $90 billion
2001 $130 billion
2004 $260 billion
Graphic: arrow marked "CAGR 28%"
Worldwide estimates for 2001. Sources: Frost & Sullivan, Robert W. Baird & Co.,
Inc.
Graphic: Colorado MEDtech, Inc. logo
Slide 25
1. Positioned in Long-Term Growth Market
Medical Device Market in which Colorado MEDtech Operates ($B)
Graph depicting estimated growth of the medical device market
1998 $2.4
1999 $3.1
2000 $3.4
2001 $3.6
2002 $3.9
2003 $4.2
2004 $4.6
Graphic: arrow marked "CAGR 8.3%"
Worldwide estimates. Sources: Frost & Sullivan, Contract Manufacturing Market,
Electronic Manufacturing Services, Medical Device Link, U.S. Business Reporter,
Thomas Register, Electronic Business News, Hoovers Online, Business Services and
Manufacturing Capabilities, Medical Device Technology, Medical Device
Diagnostics
Graphic: Colorado MEDtech, Inc. logo
Slide 26
1. Factors Driving Market Growth
- - OEMs focusing on core competencies
- - Outsourcing offers:
- reduced costs
- improved time-to-market
- reduced capital outlays
Graphic: "C" portion of Colorado MEDtech, Inc. logo above the word "GROWTH"
Graphic: Colorado MEDtech, Inc. logo
Slide 27
2. Focused on Attractive Niche
$3.6B medical device outsource market
Graphic: Sphere filled with photograph of an integrated power and control
subsystem for high-field MRI, divided in half; top half marked with the words
"High tech, value-added segment"; bottom half marked with the words "Low value
segment"
Graphic: "C" portion of Colorado MEDtech, Inc. logo
Graphic: Colorado MEDtech, Inc. logo
Strongly positioned in advanced tech segment
Slide 28
3. Customers Include Industry Leaders
Graphic: logos for the following:
Johnson & Johnson
Gene Logic
Boston Scientific
Baxter
Medtronic
Siemens
Du Pont
Tyco
Becton Dickinson
Lilly
GE Medical Systems
Xanthon
Abbott Laboratories
"C" portion of Colorado MEDtech, Inc. logo
Graphic: Colorado MEDtech, Inc. logo
Slide 29
4. Full Service Provider
Advanced Solutions
- - Services
- - Products
- - Components
- - OneSource OutSource(TM) Provider
Graphic: Montage image of clock face with multiple product images; center "C"
portion of Colorado MEDtech, Inc. logo
Graphic: Colorado MEDtech, Inc. logo
Slide 30
4. The OneSource OutSource(TM)
- - One-stop service
- - Faster time-to-market
- - Innovative technical solutions
- - Integrated development and manufacturing
Graphic: Montage image of clock face with multiple product images; center "C"
portion of Colorado MEDtech, Inc. logo
Graphic: Colorado MEDtech, Inc. logo
Slide 31
5. Strong Financial Position
- - Cash and short-term investments $8.8M
- - Working capital $22.5M
- - Long-term debt Almost zero
We have the resources to grow
Numbers as of 9/30/01
Graphic: Colorado MEDtech, Inc. logo
Slide 32
Growth Strategies
Graphic: Photographs of products designed, developed, manufactured or
proprietary of Colorado MEDtech, Inc.
Graphic: Colorado MEDtech, Inc. logo
Slide 33
Our Goal: World Leader
- - Advanced medical outsourcing services
- - Medical imaging components and accessories
Graphic: Montage of Colorado MEDtech product images with image of globe
Graphic: Colorado MEDtech, Inc. logo
Slide 34
Growth Strategies
1. Become the 1st choice supplier (OneSource OutSource(TM))
2. Provide world-class medical connectivity technology
3. Expand imaging product portfolio
4. Complementary acquisitions and alliances
Graphic: Photographs of products designed, developed, manufactured or
proprietary of Colorado MEDtech, Inc.
Graphic: Colorado MEDtech, Inc. logo
Slide 35
FY 2002 - Key Initiatives
- - Resolve the FDA warning letter
- - Resume profitable growth
- - Continue to strengthen Board of Directors
Graphic: Photograph of Second Look(TM)by CADx Medical Systems
Graphic: Colorado MEDtech, Inc. logo
Slide 36
Initiative: FDA Warning Letter
- - Announced warning letter resolution Oct. 15, 2001
- - Only 8 1/2 months after its receipt
Impact:
- - Growth in sales pipeline
- - Now shipping Class III products
Graphic: Photograph of Colorado MEDtech manufacturing
Graphic: Colorado MEDtech, Inc. logo
Slide 37
Initiative: Resume profitable growth
- - Focus on increasing bookings and sales
- - Implementing strategic cost reductions
- Have generally frozen executive salaries
- Number of employees decreased in first quarter
Impact:
- - Reduced operating expenses by 9% in first quarter FY 2002
- - Reducing our quality consulting expenditures
Graphic: Photograph of Xanthon Xpression Analysis System(TM)
Graphic: Colorado MEDtech, Inc. logo
Slide 38
Initiative: Strengthen Board of Directors
- - In FY 2001, Tony Dimun joined the Board of Directors (20 years medical
device and financial leadership)
- - Will replace Mr. Atanasoff's board position
- - We are interviewing talented people who can have an immediate impact
Graphic: Colorado MEDtech, Inc. logo
Slide 39
Summary
- - First Quarter:
FDA warning letter resolved
Improvements in sales opportunities
- - Second Quarter:
Cost reduction program
- - Quarters Three and Four:
Consolidation of Facilities
Savings of $1M annually
- - Focused on return to profitability
We believe our actions will return CMED to profitability
Graphic: Colorado MEDtech, Inc. logo
Slide 40
The Future of Colorado MEDtech
Strong platform for growth:
- - People
- - Processes
- - Technology
- - Opportunity
Graphic: Photograph of Second Look(TM)by CADx Medical Systems
Graphic: Colorado MEDtech, Inc. logo
Slide 41
The Future of Colorado MEDtech
- - Impressive customer base
- leveraging relationships
- - Expanding capabilities in high potential areas
- device connectivity and imaging
- - Solid business model
- - Strong balance sheet
Significant increase in shareholder value
Graphic: Photograph of Second Look(TM)by CADx Medical Systems
Graphic: Colorado MEDtech, Inc. logo