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 7, 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 and the Chief Financial Officer
of Colorado MEDtech, Inc. used on November 7, 2000 and to be
used from time to time thereafter.
Item 9. Regulation FD Disclosure
On November 7, 2000, Colorado MEDtech, Inc. management met with investors
and analysts in the first of a series of meetings. A copy of the presentation
materials of the company's President and Chief Executive Officer and Chief
Financial 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 7th day of November, 2000.
COLORADO MEDTECH, INC.
By: /s/ Peter J. Jensen
Peter J. Jensen
Vice President
Slide 1:
Colorado MEDtech, Inc;.
Graphic: Photo montage of Colorado Medtech, Inc. products
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. 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 3:
OUR VISION
To be the worldwide leader in advanced medical products outsourcing - design,
development, critical components and manufacturing.
Slide 4:
Executive Summary
FY01 Q1 HIGHLIGHTS and UPDATES
- Developed our vision
- Reported financial results due to our efforts to improve our business
- HEI, Inc. announced it will not commence exchange offer for CMED
- Continued to focus on key success elements:
-- People and management team
-- Processes
-- Customer satisfaction
-- Sales and profitability
-- Execution across ALL functions
- Board authorized stock repurchase program
- Continued focus on core businesses
Q1 Results: We did what we said we would do.
Slide 5:
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 increase--keeps us on track toward meeting goals announced on
August 22, 2000
We expect to see continued quarter over quarter improvement in revenue and net
income, excluding one-time charges.
Slide 6:
Key Accomplishments FY01 Q1
FOCUSED EFFORTS
- Developed and implemented our restructuring plan
- Developed and are implementing a manufacturing restructuring plan
- Completed both the centralization of the sales organization and a focused
marketing plan
We continue to rationalize the overall company to enhance long-term
profitability.
Slide 7:
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 8:
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 9:
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 10:
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 11:
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 12:
"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
Slide 13:
Key Accomplishments FY01 Q1
SALES AND PROFITABILITY
- Increased bookings
- Transition of key projects from development to manufacturing, e.g. a unique
oximetry device
- New contracts for development
-- an imaging system for use in coronary by-pass surgery
-- a device for the treatment of benign prostate hyperplasia and
enlarged prostate
- Expansion of a software development project for an ambulatory drug
delivery system
The goal of our OneSource OutSourceTM strategy is to transition development
projects into manufacturing for increased long-term stable income.
Slide 14:
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 15:
Q1 Update
STOCK REPURCHASE PROGRAM
- The Board of Directors approved a program for a 1.2 million share stock
repurchase
- We continue to believe share repurchases make sense
- Options being explored must take into account that we have a new large
shareholder
Slide 16:
Current Core Organizational Structure
- Colorado MEDtech
FY2000 Revenue: $74.0MM
EBIT $7.1MM (Excludes non-recurring items
-- CMED RELA
-- IPS
-- CMED MFG
-- CIVCO
Slide 17:
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 18:
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 19:
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 20:
Integration of 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 21:
Assessment of Non-Core Businesses
CDT
- Provides custom private label design and development services specific to
the medical disposables industry
- R&D projects typically relate to catheter technology
-- Balloon catheters
-- Molded disposables
-- Flexible electrodes
-- Wire products
Automation Division
- Provides custom machines for the automated production of medium to high
volume medical products
- Major healthcare clients include Becton Dickinson and Dade-Behring
- 1 new customer and 1 new contract in Q1
Slide 22:
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 23:
Conclusion: "Achieving our vision"
- Performance-based stock and bonus compensation will continue to improve
employee satisfaction and align their interests with shareholders
- Strategic acquisitions and alliances will create synergies and power growth
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.
