MicroCapClub Invitational: ViryaNet (VRYAF)


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ViryaNet (VRYAF) is a provider of mobile workforce and field service management software. Companies in field service intensive industries, such as utilities and telecoms, rely on ViryaNet’s solutions to optimize their mobile workforce and respond to scheduling changes in real-time. We were first drawn to the company by it’s compelling valuation, blue-chip customer base, and niche positioning, where it has been recognized as an innovator in the $1.5B field service management industry. The company’s flagship product, ViryaNet G4, has gained traction lately through the support of a key partnership with GE Energy, leading to an impressive 34% increase in revenues and 155% increase in total bookings for the third quarter of 2013. CEO Memy Ish-Shaol and Chairman Samuel HaCohen together own over 20% of the shares outstanding and have demonstrated their confidence in the business recently through open-market purchases. With ViryaNet’s addressable market only 25% penetrated and a new cloud-based solution in the offering, we believe the company can continue its double-digit growth trajectory in 2014 and attract more attention as management tells their story to investors.

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MicroCapClub Invitational: ViryaNet (VRYAF)

  1. 1. Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements contained in this press release that are not purely historical are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, including statements regarding ViryaNet's expectations, beliefs, intentions, or strategies regarding the capabilities of its products, its relationships with its customers, its customer purchases, its future operational plans and objectives including integration of other businesses, its future business prospects, its future financial performance, its future cash position, and its future prospects for profitability. All forward-looking statements included in this document are based upon information available to ViryaNet as of the date hereof, and ViryaNet assumes no obligation to update any such forward-looking statements. Forward-looking statements involve risks and uncertainties, which could cause actual results to differ materially from those projected. These and other risks relating to ViryaNet's business include market acceptance of and demand for ViryaNet's products, risks associated with a slow-down in the economy, risks associated with the financial condition of ViryaNet's customers, risks associated with competition and competitive pricing pressures, risks associated with increases in costs and operating expenses, risks in technology development and commercialization, the risk of operating losses, risks in product development, risks associated with international sales, and other risks that are set forth in ViryaNet's annual report on Form 20-F, filed on April 29, 2013, and the other reports filed by ViryaNet from time to time, with the Securities and Exchange Commission. Reported results should not be considered an indication of future performance. You should not place undue reliance on these forward-looking statements, which speak only as the date hereof. ViryaNet disclaims any obligation to publicly update or revise any such forward-looking statements to reflect any change in its expectations or in events, conditions, or circumstances on which any such statements may be based, or that may affect the likelihood that actual results will differ from those set forth in the forward-looking statements.
  2. 2. leading provider of software solutions that optimize and allow for the continuous improvement of service processes for mobile workforces World-class business partners help us to deliver the best products and services Selected by blue-chip customers across the world We have a history of innovation. 3
  3. 3. A history of innovation and leadership 1st’s: 2013 - First voice-enabled native field application - Named innovator and exemplary performer 2012 - Performance Management Practice 2009 2000 Scheduling engine optimizes and auto-tunes Web-based solution 2002 Online/offline mobile solution Innovation > 2011 - Visibility and control to business processes - Integration with InfoPath forms Coverage > Partners > 4
  4. 4. Vendor Landscape: Field Service Automation Info-Tech Research Group - May 2013 research report 5
  5. 5. BUSINESS VALUE FOCUS | MEASURESignificant Market Key Technology in a & ANALYZE | CHANGE ENABLEMENT • Service businesses comprise over 70% of the world economy and are continuing to grow • Addressable market currently only 25% penetrated, according to Gartner • Software sales in the Field Service Management market are approximated by Gartner at 329M in 2013 • • Represents a 1.5B annual market including services & maintenance Mobile Workforce Management continuing to emerge as key service delivery enabler and as a marketplace differentiator • • MWFM enabling Utilities to fulfill the smart grid vision MWFM enabling differentiation and continuous improvement in competitive markets as Telecommunications and Healthcare 6
  6. 6. Blue-Chip Customers in Diverse Markets Energy Providers Telecommunications Facility Management Municipalities & Government Field Services Healthcare & Insurance Water Utilities 7
  7. 7. Partners Channel partners Implementation partners Technologies Innovation > Coverage > Partners > 8
  8. 8. Service Organizations Are Not Meeting Goals “Performance management is a key area of investment for Best-inClass in 2013” * Aberdeen Field Service 2013 Workforce Management Guide 9
  9. 9. Conflicting Business Objectives When will you send a field tech an extra 20 miles because he knows that specific customer better and can provide better service 10
  10. 10. Constant Exceptions Can you predict problems to ensure a proactive response? 11
  11. 11. Evolving Business Needs How can you ensure you’re getting an optimized plan day-after-day, after your business has changed 12
  12. 12. Managing Change Conflicting Business Objectives Constant Exceptions Evolving Business Needs 13
  13. 13. Integrated Approach 14
  14. 14. The ViryaNet G4 Product Strategic Tactical Planning Optimization Planning Demand Dispatch & Impact Field Inventory Operational Analysis Productivity & Effectiveness 15
  15. 15. BusinessValue Focus User Experience Planning Spectrum Extensibility Business-value focus approach • ViryaNet ensures that a business-value focus is maintained from our first engagement through the full lifecycle of our solution Guide/build a performance management practice • ViryaNet guides you through the process of developing and practicing a continuous performance management framework 16
  16. 16. Business-Value Focus User Experience ViryaNet introduced the first voice-enabled native field application • ViryaNet focuses on providing an exceptional user experience, leveraging the opportunities enabled by the mobile revolution Planning Spectrum Make better decisions with contextual real-time information Extensibility • ViryaNet G4 proactively looks for exceptions and provides the context for resolving those exceptions • ViryaNet G4 focuses your field employees via a "what's now?" and "what's next?" approach 17
  17. 17. Businessvalue focus Plan for the moment and for the future User Experience • • • • Planning Spectrum Align daily schedules with your prioritized business objectives Extensibility • Optimize for multiple (likely conflicting) business objectives • The first and only solution to auto-tune the scheduling algorithm Apply predictive BI for strategic resource decisions Manage a backlog of long-term commitments Create daily optimized scheduling plans Manage exceptions proactively 18
  18. 18. Businessvalue focus User Experience Planning Spectrum Extensibility Cost-effectively extend ViryaNet G4 to meet your unique business needs • Develop customized functionality that is not intrusive, does not risk future upgrades and does not lock you to proprietary tools • Utilize G4 open API framework, embedded BPM, forms tool integration and easy data access Leverage industry best practices • Use ViryaNet G4 BPM Blueprint that capture best practices in service processes for mobile workforces, while remaining extensible and focused on continuous improvement 19
  19. 19. The Smart Device Revolution and the Enterprise Computing Evolution 20
  20. 20. Part of a broad strategy to standardize & optimize all asset management functions of the energy delivery group. ViryaNet Solution • Schedule approximately 200 Vectren field service technicians across 8 regions. savings in labor costs over 2 years • Assign 98% of calls – including optimal routes – via overnight batch, with same-day appointments automatically assigned to each technician. and increased geographic workload visibility (efficiency, reduced travel time, overtime) Better Resource Utilization Centralized Planning focus on field resources and technician route management Performance Management metrics available down to the operating center and technician levels. 21
  21. 21. 2009 – 2012 Comparison 2012 Highlights  A record net income of $911k  EBITDA of $1.26m  Total revenue 11% higher than 2011 22
  22. 22. Quarterly Revenues/Net Income Trend 23
  23. 23. Balance Sheet $000s 30-Sep-13 31-Dec-12 Cash $286 $335 $104 $97 Current Assets 1,483 1,397 1,393 1,363 Total Assets $9,325 $9,190 $9,211 $9,760 Current Liabilities $5,070 $5,715 $5,921 $6,998 Long-Term Liabilities 2,188 2,173 3,020 2,405 Total Liabilities 7,258 7,888 8,941 9,403 Shareholders’ Equity 2,067 1,302 270 357 $9,325 $9,190 $9,211 $9,760 Total Liabilities & Shareholders’ Equity 31-Dec-11 31-Dec-10 24
  24. 24. Trend of main items in Balance Sheet (Thousands USD) 25
  25. 25. Basic net income (loss) per share 26
  26. 26. Growth Opportunities  Maturity of strategic partnership  Continuous penetration to new verticals  Growing demands outside the US 27
  27. 27. Why Invest? • A best of breed Mobile Workforce Management Solution • Unique integrated performance management • Innovative offering geared towards smart devices technology • Blue chip customers in diverse markets • Strong global partners invest in ViryaNet and drive growth • Consistent track record in profitability • Record revenue and EPS in 2012, $10.7M and $0.23, respectively • Compelling valuation of 4X TTM Earnings 28