Phoenix Technologies Ltd. (PTEC)
Q2 2010 Earnings Call
May 4, 2010 8:30 am ET
Tom Lacey – President & CEO
Robert Anderson – Interim CFO
Brandi Floberg - IR
Nathan Schneiderman – Roth Capital Partners
Joe Maxa – Dougherty & Company
Richard Kugele – Needham & Company
Previous Statements by PTEC
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Ladies and gentlemen, welcome to the Phoenix Technologies fiscal 2010 second quarter financial results conference call. (Operator Instructions) I’ll now hand the conference over to Brandi Floberg.
Good morning and thank you everyone for joining us to discuss Phoenix Technology’s second quarter fiscal year 2010 financial and operating results. With me on the call this morning are Tom Lacey, President and Chief Executive Officer; and Robert Anderson, Interim Chief Financial Officer.
On the call today you will hear various forward-looking statements, including those relating to the company’s products, strategy, businesses, and financial goals. Actual outcomes and results may differ materially from the expectations contained in these statements due to a number of risks and uncertainties.
Please refer to the company’s recent SEC filings at the SEC website at www.sec.gov or www.phoenix.com and to the Safe Harbor statement located in our press release distributed earlier this morning for a detailed discussion of these relevant risks and uncertainties. Phoenix Technologies undertakes no responsibility to update any forward-looking statements made on this morning’s call.
The press release distributed this morning that announced the company’s results is also available on the Phoenix website,
in the Investor Relations section under the Press Releases tab. Our current report on Form 8-K furnished with respect to our press release is also available on the website under the Investor Relations section.
With that, I would now like to turn the call over to Tom Lacey, Phoenix Technologies President, and CEO.
Thanks Brandi, good morning to all of you who are joining us today, especially those of you like us who have gotten up early to join us live from the West Coast. First of all I am really pleased to be conducting my first earnings conference call as President and CEO of Phoenix.
Phoenix was a terrific fit for me as I hold extensive experience running publically traded companies and very familiar with the PC market ecosystem including OEMs and ODMs. Just a bit of a background on myself, I hold a degree in Software Engineering and spent six years as a programmer before moving on to marketing, sales, business, and general management aspects of my career.
I spent 13 years at Intel, five of which I served as President of Intel Americas where I was responsible for overseeing approximately half of Intel’s revenue, including managing the world’s leading PC OEMs such as HP, Dell, IBM, and Compact.
In my final year in that role my quota was about $12.5 billion. From there I moved on to run Intel’s flash business unit where we grew business from approximately $1.8 billion to $2.3 billion during my tenure in that job. I also lived in Asia for three years while I was at Intel and was responsible for microprocessors and chipsets and as a result I am very familiar with the Taiwan ODMs who are at the heart of the worldwide PC ecosystem.
Taiwan is the PC island capital of the world and familiarity with these leading companies is very important in this business. The primary reason I joined Phoenix is because I saw a strong fit with my background and believe I can make a difference in getting the company back on a sustainable growth path.
I am now beginning my third month at Phoenix and I’m even more convinced of the exciting prospects and growth opportunities that lie ahead for us. I entered the company with a plan on how to quickly get broad and comprehensive feedback on what we were doing right, and should keep doing, and what improvements needed to be made.
I quickly gathered input from a variety of sources, our customers, employees, partners, shareholders, Board members, and research and industry analysts. To date I have made several operational, organizational, and strategic changes.
First I reduced the number of operational levels in our organization and made several changes at my executive staff level. Additionally operating costs have been reduced from the strategic sale of our FailSafe business as well as additional headcount reduction.
We are comfortable with our forecast to return the company to operating profitability during the second half of this year and we believe we will be well positioned to achieve sustained operating profitability and revenue growth into 2011 and beyond.
Second I refocused the employees on our core BIOS business and aligned them behind our new mission statement, which is to do a great job for our customers, employees, and shareholders, by delivering world class, innovative, core system software, and services, to the computing communication imbedded devices.
As well as getting our employees aligned behind our new core values which are become a world class organization by practicing our core values of customer orientation, team work, innovation, and quality. We also have the company aligned behind a targeted set of measureable priorities such as revenue growth, sustained operating profitability and delighting our customers be delivering innovative products on time and by practicing operational excellence across all aspects of the company.
To date I’ve been pleasantly surprised to see the depth of the core strengths of our company. The core strengths include an installed base of over one billion Phoenix licensees, a strong and well recognized brand, a leading market position, the sell through rate of more than 100,000 units a day, a strong underlining core BIOS business, an IP portfolio of more than 200 patents, an excellent customer base, a strong distribution channel, and an experienced and talented worldwide team of Phoenix employees.