infologix, inc. nasdaq: iflg june 2008
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InfoLogix, Inc.NASDAQ: IFLG
June 2008
© 2008 InfoLogix, Inc. Confidential materials.
Forward Looking Statements
This presentation contains certain forward-looking statements within the
meaning of the federal securities laws. We make forward-looking statements which
represent our expectations or beliefs about future events and financial performance.
Forward-looking statements are identifiable by words such as "believe," "anticipate,"
"expect," "intend," "plan," "will," "may" and other similar expressions. In addition, any
statements that refer to expectations, projections or other characterizations of future
events or circumstances are forward-looking statements. Forward-looking statements are
subject to known and unknown risks and uncertainties, including those described in the
filings of InfoLogix, Inc. with the Securities and Exchange Commission.
In addition, actual results could differ materially from those suggested by the
forward-looking statements, and therefore you should not place undue reliance on the
forward-looking statements. We do not make any commitment to revise or update any
forward-looking statements to reflect events or circumstances occurring or existing after
the date of any forward-looking statement is made.
2© 2008 InfoLogix, Inc. Confidential materials.
Investment Highlights
National provider of mobile information technology solutions, that delivers location and asset management tracking of workforce and inventory at the point of POC and POA.
Solutions include consulting, software, managed services, devices and infrastructure
– Demonstrated return on investment (ROI) for corporate & hospital organizations
Extensive customer base in healthcare and enterprise
– 1,400 hospitals
– 800 enterprise installations
Proprietary software and intellectual property, RFID patent portfolio
2007 revenue of $78.8 million, up 27% from $62.1 million in 2006
2008 guidance: $100 million in revenue, or 27%+ growth, and profitability
3© 2008 InfoLogix, Inc. Confidential materials.
About InfoLogix
We enable customers to deploy mobile enterprise solutions to improve productivity and reduce costs through real-time data collection
Total solution, from infrastructure through business process re -engineering
Design, implement and manage sector-leading mobility and wireless solutions
Short sales cycle and implementation period
Primarily focused on healthcare with secondary focus on retail, distribution and logistics
Proprietary software applications and RFID patent portfolio
National company with a national sales force
4© 2008 InfoLogix, Inc. Confidential materials.
Competitive Positioning
5
Deeper offering of complementary services
Higher blended margin target of 30% to 40%
CiscoVerizonCingular
RFID-BarcodeHandheldCare Station
Customer Care Help DeskProvisioning
Mobile and RFID Applications eLearningDelta, Aware and AMTSystems IP
Streamline workflowsBusiness process re-engineeringHIA, Delta and Aware50%-60% Margin50%-60% Margin
75% Margin75% Margin
50%-60% Margin50%-60% Margin
35% Margin35% Margin
20%-25% Margin20%-25% Margin
© 2008 InfoLogix, Inc. Confidential materials.
Revenue Outlook – Product/Service Mix
InfoLogix Revenue Mix (Target)
Distributor Hardware10% Software / Services
40%
Infologix Mobile50%
Revenue Growth
REVENUE MIX BY SERVICE LINE
Software/Services
InfoLogix Mobile
Distributor Hardware
2006 Actual
15%
18%
45%
37%
2007 Actual
27%
33%
47%
20%
Forward Target
30-40%
40%
50%
10%
6 Confidential Copyright InfoLogix, Inc. 2008
Our Approach to Engagements
Positioned as single-source provider of enterprise mobility solutions
– From handheld devices to business process and workflow re-engineering
Presence at the customer is an opportunity to upsell additional solutions
“Small engagements lead to big engagements” Engagements start at approximately $300k,
below radar of industry giants but above capability of local firms
Recurring revenue opportunities – Proprietary software
– Managed Services
© 2008 InfoLogix, Inc. Confidential materials. 7
Consulting Services
Customized solutions for unique client needs focused on delivering concrete results
– Project assessment, planning and design
– Implementation
– Training
75 full-time consultants, 500 successful engagements– Certified Healthcare Practitioners - RNs, pharmacists, nurse practitioners, lab
technicians, radiologists, revenue cycle management
– Experienced project managers and engineers
Focused on faster ROI through successful, efficient HIS implementation– Improve process efficiencies
– Improve profitability
– Increase cash flow
50% - 60% gross margin
© 2008 InfoLogix, Inc. Confidential materials. 8
Product Offerings
Proprietary RFID, mobility and OnDemand software applications– HealthTrax RFID Asset Tracking Software
• Patient and equipment location tracking
• Procedure tracking
• Patient Security
– Customer Care Portal
• Real-time access to service information maintained by our professional staff
• Allows us to competitively manage our implementations
– Commercial RFID and Software Solutions
• Vehicle tracking and fleet management
• Warehousing logistics / inventory management
• Mobile point of sale systems
– 75% gross margins
Infrastructure– Mobile Care Stations
– Mobile point of activity devices
– Wireless networking solutions
© 2008 InfoLogix, Inc. Confidential materials. 9
10
Real Time Tracking and Location System
11
It’s NOT about the RFID TAG, It’s about the Data
Dashboard – RFID Data Analytics Trending
Empowers customers full visibility into mobile solution deployment
Web-based, centralized reporting center
Data Analytics - Customer Portal
Self Service Support Visibility
Asset Tracking
Get Service
Role Based Access
Site, Region, Corporate
Summary Dashboards
Standard Reports
Custom Reports
Trends
7x24x365
Dedicated Hosting
Intellectual Property
19 patents issued for:– RFID technology that manages proper medication delivery and administration
– Wearable computers
Patent applications pending for:– Medication delivery and administration
– Power solution for mobile workstations
– System and method for live interactive distance learning
– Mobile wireless computer systems
Potential to monetize these assets through partnerships and licenses with companies developing these technologies
© 2008 InfoLogix, Inc. Confidential materials. 12
Sales and Marketing
Direct sales force doubled to 45 reps in 2007– 6 – 9 months for new reps to ramp to productivity
– Focused mostly on higher margin professional and managed services
– Investment in sales force expansion compressed margins in 2007 but will fuel growth in 2008 and beyond
Sales force leverages complementary HIS and ERP software and solutions from leading technology partners
– Partners include Eclipsys, Meditech, Oracle and Motorola
Numerous synergistic channel relationships– Preferential pricing, new referrals for generating referrals from existing
customers
– These relationships are leveraged primarily for hardware and device sales
© 2008 InfoLogix, Inc. Confidential materials. 13
Recent Acquisitions
DDMS Holdings (April 9, 2007)– Acquired patents related to ePedigree solutions for managing and delivering
drugs through RFID technology
– Five U.S. patents, one U.S. patent application, four foreign patents and five pending foreign patent applications
– Purchase price: $0.2 million cash, 400,000 common shares
AMTSystems, Inc. (May 10, 2007)– Develops software applications for mobile computing that enable materials
management, patient charge capture and patient identification
– Purchase price: $0.1 million cash, 138,160 common shares, $0.5 million payable in 72 monthly installments plus interest
Healthcare Informatics Associates, Inc. (September 30, 2007)– Healthcare management and clinical systems consulting company
– Purchase price: $4.6 million cash, 755,478 common shares, $3.5 million convertible note, earn-out $2.0 million and $2.5 million over two years
– 2006 revenue of $10.7 million with net income of $2.9 million
© 2008 InfoLogix, Inc. Confidential materials. 14
Recent Acquisitions
Delta Health Systems, Inc. (May 2, 2008)– Focus is strategic cost management consulting: improving hospital resource
management and financial results without compromising quality
– Strong relationship with hospital CEOs and CFOs - Over 300 customer engagements
– MRS-Web analytics software: a proprietary measuring and monitoring tool
– Purchase price: $1.5 million cash, $1.0 million earn-out over two years
Aware Interweave, Inc. (May 19, 2008)– SAP Software Partner with SAP Certified Products
– A+ SAP and Microsoft development team
– Business Focused on three (3) primary product and solution sets – (1)Mobility and Mobile Line of Business, (2)Enterprise Portal Solutions and Strategies and (3) Asset/Supply Chain RFID and Barcode Solutions – with emphasis on SAP backed enterprises.
– Five (5) Mobile Software products featuring the Executive Co-Pilot™ Series of solutions
– Purchase price: $1.2 million cash, 500,000 common stock
© 2008 InfoLogix, Inc. Confidential materials. 15
Market Dynamics
Explosive growth for Enterprise Mobility Solutions– Analysts project EMS as a $21 billion market by end of 2008 --
according to Venture Development (VDC) research.
– Rapid adoption within industries such as healthcare, manufacturing - distribution and retail to streamline data sharing and communication.
– Initiatives which leverage mobile computing solutions are viewed as strategic
– PCI Security and Department of Transportation compliance
Hospital Information Systems (HIS) market growing due to HIPAA and cost pressures
– Analysts project growth of HIS from $52 billion today to $61 billion by 2009 -- according to Health Industry Insights research
RFID is positioned for rapid adoption– Analysts project growth of RFID from $2 billion today to $25
billion by 2015 -- according to Gartner research
16© 2008 InfoLogix, Inc. Confidential materials.
Selected Clients
17© 2008 InfoLogix, Inc. Confidential materials.
Hospital Market Overview
5,800 hospitals in the U.S. with 965,000 beds Increasing regulatory requirements from HHS, FDA, CMS and the
Joint Commission– HIPAA compliance
– FDA barcode regulation – requires barcodes on prescription drugs / biologicals
– Joint Commission - #1 goal for 2008: improve accuracy of patient identification
Medication errors result in 1.5 million injuries, 12,000 deaths and extra medical costs of $3.5 billion per year
Existing customers are likely to implement higher margin software and consulting services from InfoLogix
– 60,000 mobile workstations sold to customers over the last 4+ years, platform for recurring revenue
– Customers are approximately 20% penetrated
No hospital is fully automated – approximately 20% on average
© 2008 InfoLogix, Inc. Confidential materials. 18
Wireless Asset Patient Tracking for Healthcare
● Patient location tracking helps ensure the hospital experience is optimized and accurate. Increase patient satisfaction with stronger sense of hospital coordination and communication.
● Equipment position tracking allows personnel to locate an item and its current status. Increase staff satisfaction because personnel can easily find equipment they need for their jobs.
● Procedure tracking means that patients and hospital personnel are protected by delivering accurate services. Patients guaranteed accurate medical treatment as the entire stay is tracked and recorded. Potentially dangerous situations are alerted to personnel for corrective action.
● Emergency Department work processes are optimized. Track when a patient arrives, who has seen the patient, when the patient was seen and where the patient is relative to the care plan. Reduce patients leaving without being seen and increase patient throughput.
● Operating Room processes are streamlined. When Operating Room billing is averaging $1 per second, operational efficiencies have significant revenue implications.
● Maternity wards, where the threat of infant abduction adds to the already considerable anxiety of new parents, benefit from RFID-based security. Match mother to child.
19© 2008 InfoLogix, Inc. Confidential materials.
Healthcare CIO IT Spending
20© 2008 InfoLogix, Inc. Confidential materials.
Reading Hospital Case Study & Solutions
Wireless mobility for medication management applications– Focused on improving clinical outcomes
RFID durable assets monitoring and management solution– Reduces administrative and capital costs
Help to define workflow and proper device use– Makes operations more efficient
Installed, configured, and trained staff on mobile medical care stations, wireless and barcode scanning technology
– Provides turn-key solutions
Implemented e-Learning and LMS for application support– Educates staff for effective implementation
21
Breadth of Services Delivered InfoLogix Technology Wireless Infrastructure e-Learning Solution
© 2008 InfoLogix, Inc. Confidential materials.
PDA Application HIPAA Education Application Recurring Revenue Support Contract
Case Study – Dollar Rent a Car
InfoLogix Solution Architected wireless and mobile returns solution for 148
locations
Project management of rollout
Installed, configured, and trained staff on mobile devices, wireless and barcode scanning
Providing back end support services for 148 sites
Outsource Technical Staff
22
Breadth of Services Delivered Wireless Mobile Technology
e-Learning ASP Solution
Project Management
© 2008 InfoLogix, Inc. Confidential materials.
Application Development
Installation Services
Recurring Revenue Help Desk, Maintenance, Support Services
Case Study – Dollar Rent a Car
23© 2008 InfoLogix, Inc. Confidential materials.
Design – Deploy - Support
24 Confidential Copyright InfoLogix, Inc. 200824 Confidential Copyright InfoLogix, Inc. 2007
2002 2009
2003 2004 2005 2006 2007 2008
2002 - 2003Projects 2003 - 2004
Projects 2004 - 2005Projects
2006 - 2007Projects 2007 - 2008
Projects 2008 - 2009Projects
Upgraded Support& Maintenancefor wireless devices
Won the RFP Bid for theWireless Network Nation wide
Managed Services, KIOSK, RFID fuel, PODS, App development, EDS replacement
Managed Services,Software Update,KIOSK, Shuttle Bus, RFID FuelGate Replacement
Won the managed Service contract
Roll-out of theWireless solutionNation wide. Won Counter device project
2005Revenue
2002Revenue
2006Revenue
2007Revenue
2008Potential Revenue
InfoLogix’s firstcustomer. WirelessReturns Project
$2 Million$2 Million
$2 Million$3 Million $3 Million
$15 Million$50 - $70Million
2004Revenue
2003Revenue
2005 - 2006Projects
Financial Overview
© 2008 InfoLogix, Inc. Confidential materials.
26 Confidential Copyright
InfoLogix, Inc. 2008
Selected Financial Data
• Steady revenue growth quarter to quarter.
• 2% Revenue growth in Q1 2008 compared to Q4 2007.
• 81% Revenue growth in Q1 2008 compared to Q1 2007.
• Sequential Gross Profit growth per quarter throughout 2007.
• Q1 2008 gross profit 26.1%
Revenue growth
-
5,000
10,000
15,000
20,000
25,000
Q1
2006
Q2
2006
Q3
2006
Q4
2006
Q1
2007
Q2
2007
Q3
2007
Q4
2007
Q1
2008
Do
lla
rs (
$K
)
Profit Margin Trend
20%
22%
24%
26%
28%
Q1 200
6
Q2 200
6
Q3 200
6
Q4 200
6
Q1 200
7
Q2 200
7
Q3 200
7
Q4 200
7
Q1 200
8
Gro
ss P
M %
27 Confidential Copyright
InfoLogix, Inc. 2008
Selected Financial Data
Selling expenses remained constant at approximately $3.35m; expect increases resulting from increasing revenue and commission expenses
G&A expenses are expected to remain constant throughout 2008 at approximately $3.6 m; now able to reap operating leverage
Selling Expense
-
1,000
2,000
3,000
4,000
Q1 200
6
Q2 200
6
Q3 200
6
Q4 200
6
Q1 200
7
Q2 200
7
Q3 200
7
Q4 200
7
Q1 200
8
Do
lla
rs (
$K
)
G&A Expense
-
1,000
2,000
3,000
4,000
Q1 200
6
Q2 20
06
Q3 200
6
Q4 200
6
Q1 200
7
Q2 200
7
Q3 200
7
Q4 200
7
Q1 20
08
Do
llar
s ($
K)
Strong Financial Position
Completed $25 million senior debt financing with Hercules Technology Growth Capital (announced 05.05.08)
Retires existing debt and expands available credit facility
New $10.0 million working capital line of credit which increases to
New facility with favorable terms and greater liquidity
28© 2008 InfoLogix, Inc. Confidential materials.
Working Capital 5.87Current Ratio 1.24 Debt / Equity 1.17
10.751.68 1.23
Growth Strategy
Focus on organic growth– Leverage expanded sales force to sell higher margin software and services to existing
and new customers
– Continue expansion of sales force to reach more opportunities in a wide open market
Broaden our product suite and sales offerings through acquisition, strategic partnerships and internal development
Expand our geographic presence and sales coverage to global markets– Europe, Asia and other emerging centers of healthcare and commercial activity
Expand our solutions to ancillary healthcare markets– Home health care/hospice, nursing/assisted living and psychiatric facilities
Expand managed service offerings
Leverage wealth of captured mobility and RFID data to provide intelligent consulting solutions
29© 2008 InfoLogix, Inc. Confidential materials.
Executive Management Team
David T. Gulian – President & Chief Executive Officer Mr. Gulian co-founded the company in 2001. Prior to joining InfoLogix, he was co-founder and president of Prologix, a provider of mobility systems and wireless platforms formed in 1996. Prologix merged with Datavision in 1999. From 1994 to 1996, he was director of wireless solutions for RF Mobility Solutions.
Eric N. Rubino – Chief Operating Officer Mr. Rubino was previously Chief Operating Officer at SAP America, Inc. As their 80th employee, Mr. Rubino held several positions within SAP America including Senior VP, General Counsel and Vice President, General Counsel. Mr. Rubino was also the Chief Operating Officer at Neoware, which was acquired by Hewlett Packard, before joining InfoLogix Inc. He is a member of the American Bar Association.
John A. Roberts – Chief Financial Officer Mr. Roberts joined as CFO in September 2006. His prior experience includes CFO of Clarient, Inc., a provider of diagnostic laboratory services. From 2003 to 2006, he was Chief Financial Officer of Daou Systems, Inc. Mr. Roberts also held positions of corporate development officer for MEDecision, Inc. and CFO for HealthOnline.
30© 2008 InfoLogix, Inc. Confidential materials.
Contact Us
INFOLOGIX
David Gulian, CEO
101 East County Line Road
Hatboro, PA 19040
215-604-0691
info@infologix.com
INVESTOR RELATIONS
Thomas P. Walsh
Alliance Advisors
212-398-3487
twalsh@allianceadvisors.net
© 2008 InfoLogix, Inc.
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