3. OTCBB:DPSI
Overview
End-to-end provider of software and
professional services targeting the growing
enterprise mobility space
30 years experience in design, deployment
and support of mobile computing and
wireless systems
Enable our customers to access enterprise
data at the point of decision regardless of
location
Deliver the ability to make better, faster and
more accurate business decisions by
implementing industry-specific, enterprise
wireless and mobile computing systems for
front-line employees, inside and outside the
‘four-walls’
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4. OTCBB:DPSI
Investment Highlights
Enterprise mobile solutions have become imperative
Revenue mix shifting to higher margin professional services and software
Well established partnerships with key wireless carriers
Blue chip customer base
Financial resources to support growth
Proven management team with strong domain expertise and sector
experience
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5. OTCBB:DPSI
Rapidly Growing Mobile Solutions Market
Demand Drivers
Global workforce continues to
become more mobile
Standardization of devices on
WindowsMobile, Android, iOS
Hand-held devices and RFID tags
increasingly affordable
Solutions becoming more complex
and require more customization
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6
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2011 2015
$Billions
Enterprise and Government Mobility Market
10% CAGR, totaling $14B by 2015
* Data source: VDC Research
Enterprise Mobile Solutions have Become Imperative
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6. OTCBB:DPSI
Total Mobile Solution Provider
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Field Workforce Automation Retail Systems
Distribution, Manufacturing &
Government
Verticals:
Field Service
Transportation & Logistics
Security Service
Direct Store Delivery
Verticals:
Grocery
Clothing & Apparel
Distribution Centers
Specialty Retail
Department Stores
Home Improvement
Verticals:
Supply Chain
Warehouse Management
Systems (WMS)
Continuous or Job-Shop
Batch or Discrete
Make-to-Stock
Make-to-Order
Assemble-to-Order
7. OTCBB:DPSI
Field Workforce Automation
Increasingly, goods are tracked or services are performed by
field-based workers
Our solutions:
Dramatically improve performance and productivity
Increase customer service with immediate wireless connectivity
to back office operations
Improve communications with field workers
New Products Generating High Margins and Recurring
Revenue
Grapevine
Cloud-based “Always On” push-to-talk system with no
latency
Supports up to 100 simultaneous users in a single
conversation
Mobile Device Management (MDM)
Provides over-the-air (OTA) wireless security, support and
upgrades
Fleet Control
Targets trucking companies in non-compliance with new
DOT regulations
Proof of Delivery
Express package tracking within large corporations
CASE STUDY
Leading Freight Transportation and Logistics Company
14,500 mobile computing devices currently, increased
from 1,000 devices in initial 2009 contract
Services include:
• Mobile Device Management
• Security and support
• Custom reporting
• Monthly building, testing and delivering of
application updates
• Initial contract: $0.2 million
• Annual recurring revenue: $0.9 million
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8. OTCBB:DPSI
Retail Systems
Leading Provider to Tier 1 Retail Chains
Market Trends Driving Growth
Most retailers migrating from 20 year old technology
Seeking process improvement and productivity gains
Competitive drive to function like Apple stores
New Products Increase Productivity at Reduced Cost
Mobile point-of-sale including:
iPad retailing
iPad clienteling
Inventory and shelf price management
Business two-way radio
Partnership with Global Bay Software provides Apple
applications
CASE STUDY
Leading multi-channel specialty retailer of apparel and
accessories
Total custom system upgrade including:
• Software creation and hardware for:
• Warehouse and distribution centers
• Wireless network
• In-store systems with customer-facing tablets
• Integration with existing enterprise software
• MobileCare Technical Support Services
• Initial contract: $3.2 million
• Annual recurring revenue: $0.3 million
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9. OTCBB:DPSI
Warehouse Distribution, Manufacturing
& Government
Increasing need to maximize service levels while
meeting financial performance requirements
Challenges include:
Achieving high customer satisfaction with accurate and
on-time shipments
Maximizing fill rates and inventory turns
Efficient space utilization
Labor and equipment time-and-motion efficiency
Solutions optimize return on invested resources:
Faster cycle times
Lower and accurate inventory counts
Higher services levels
CASE STUDY
Complete RFID pedigree and authentication
system
• Implemented enterprise-wide
• Initial contract: $4.0 million
• Annual recurring revenue: $0.5 million
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10. OTCBB:DPSI
Sales Process & Partners
Direct Sales
25 salespeople
Located
nationwide
Supported by
30 engineers
and technicians
Partners
Leveraging
the sales force
of our
partners
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OEM’s
11. OTCBB:DPSI
Growth Strategy
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Extract greater share of spend from existing partners and
customers
Further penetrate existing verticals
Leverage partners’reach to acquire new customers
Introduce new products and services
Acquire complementary businesses
Broaden geographic footprint
12. OTCBB:DPSI
Two Strategic Software Acquisitions Completed
June 2012 Acquisition of Apex Systems Integrators - Toronto Canada
Provider of wireless mobile workforce software product solution
Accretive to earnings by annualized $0.15 per share
July 2012 Acquisition of Illume Mobile Division of Macrosolve - Tulsa OK
Provider of software solutions running on IOS (Apple) and Android
Positive financial impact
Shifts revenue mix to higher margin software and professional services by 400-600 basis points
Expands gross margins 200-400 basis points
Operational benefits
Both acquisition address markets of field mobility, retail, and supply chain
Add proprietary software products and strong domain knowledge for Apple and Android systems
Cross selling opportunities from complementary customer bases
Establishes initial presence in important growing Canadian market
Acquired capabilities round out DP’s product offerings
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13. OTCBB:DPSI
Seasoned Management Team
Name / Title Selected Prior Experience
Nic Toms
Chairman, CEO and Director
Chairman, President and CEO of Peak Technologies
CEO of Cape Systems Group, Inc.
Skadden Arps Slate Meagher & Flom
Michael Roe
Chief Accounting Officer
CAO, Metagenics, Inc.
CFO, Duncan Solutions
VP Finance/Investor relations, QLogic Corp.
Ralph Hubregsen
Chief Operating Officer
Vice President Worldwide Channels, Symplified
Founder/President, Venado Technologies
Founder/President, Saillent Consulting Group
John Chis
SVP Sales North America
20 years with Symbol Technologies and Telxon (acquired by Symbol)
Sales, marketing and operations management experience
Bryan Moss
SVP Professional Services
Founder/President, CMAC, Inc.
Senior Director, Supply Chain Practice, Accenture
Don Dalicandro
CEO, APEX System Integrators and Director
Founder/CEO, APEX System Integrators, Inc.
Managing Partner, ASECO Integrated Systems Ltd.
Founder/CEO, Azertech
Brent Felker
VP Field Mobility
Senior Sales VP of Peak Technologies
Initiated Field Mobility Practice at Motorola/Symbol
Initiated Field Mobility Practice at Psion/Teklogix
Stephanie Storm
Director of Operations
Director of Sales Operations, Datamax – O’Neil Corp
Director of Sales Operations, PairGain Technologies
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14. OTCBB:DPSI
25%
40%
35%
Field Workforce Automation Supply Chain Retail Systems
Shifting Revenue Mix
Goal: Increase Mix of Software & Professional Services to
60% of Revenue
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Markets Served 2012 2012 Revenue Mix
23%
9%
68%
Professional Services Software and Other
Hardware
15. OTCBB:DPSI
P&L 2012 ($ in ‘000 except for EPS and WASO)
2012 2011 2013 2012
Net sales 71,501$ 58,359$ 13,772$ 17,810$
Cost of sales 55,949 46,368 10,948 14,057
Gross profit 15,552 11,991 2,824 3,753
Selling, general and administrative expense 18,661 13,597 5,033 3,835
Operating loss (3,109) (1,606) 2,209 (82)
Other expense (income):
Interest expense 998 1,160 226 142
Other income, net (116) (363) (6) (29)
Total other expense 882 3,462 220 113
Loss before income taxes (3,991) (5,068) (2,429) (195)
Provision (taxbenefit) for income taxes (125) 100 (327) 42
Net loss (3,866) (5,168) (2,102) (237)
Cumulative and imputed preferred stock dividends (954) (486) (220) (222)
Net loss attributable to common shareholders (4,820)$ (5,654)$ (2,322)$ (459)$
Net loss per share -
Basic and diluted (0.61)$ (0.94)$ (0.27)$ (0.06)$
Weighted-average shares outstanding -
Basic and diluted 7,900,693 6,019,900 8,620,807 7,392,441
Q1 ended March 31,Years ended December 31,
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16. OTCBB:DPSI
Adjusted EBITDA Trend ($ in ‘000 )
2012 2011 2013 2012
EBITDA Calculation
Net Loss (3,866)$ (5,168)$ (2,102)$ (237)$
Depreciation and amortization 1,510 560 502 160
Interest Expense 998 1,160 226 142
Income Taxes (125) 100 (327) 42
EBITDA (1,483)$ (3,348)$ (1,701)$ 107$
Employee stock-based compensation 52 200 5 21
Non-employee stock-based compensation 514 283
ESOP compensation expense 132 125 35 33
1,602 360
175
700
Restructuring costs 430 (27)
Financing/Acquisition Costs 642
Loss on debt extinguishment 2,665
Adjusted EBITDA 2,122$ (75)$ (1,019)$ 494$
Q1 ended March 31,Years ended December 31,
One time cash transaction expenses in connection
with the acquisition of Apex
One time cash expenses in connection with the
acquisition of Illume Mobile
One time cash expenses in connection with the
replacement of Preferred C shares and investor
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19. OTCBB:DPSI
Key Takeaways
Enterprise mobile solutions have become imperative
Revenue mix shifting to higher margin professional services and software
Well established partnerships with key wireless carriers
Blue chip customer base
Financial resources to support growth
Proven management team with strong domain expertise and sector experience
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