EX-99.1 2 c73585exv99w1.htm EXHIBIT 99.1 Filed by Bowne Pure Compliance

Exhibit 99.1

EasyLink Investor Presentation June 4 & 5, 2008 NasdaqCM: ESIC Thomas J. Stallings, CEO Glen Shipley, CFO


 

Safe Harbor Statement This presentation contains forward-looking statements relating to the Company. These forward-looking statements relate to future events or our future financial performance and are subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those expressed or implied by these forward-looking statements for a number of important factors. These factors include, among others, the successful development and introduction of new products and services, the successful integration of recent and future acquisitions, reliance on third party suppliers and ability to protect intellectual property. The Company can give no assurance as to whether these conditions will continue, or if they change, how such changes may affect the Company's current expectations. While the Company may, from time to time, revise its outlook or issue guidance, it assumes no obligation to do so. These forward-looking statements involve risks and uncertainties, which could cause actual results to differ materially from those projected. Additional information regarding these and other factors may be found in the Company's SEC filings, including without limitation, the Company's Form 10-K filed on October 23, 2007 and Forms 10-Q filed on December 17, 2007 and March 17, 2008.


 

Company Overview


 

Diverse and Global Customer Base


 

Recent Deals


 

Financial Snapshot


 

Corporate Objective


 

Successful Acquisition Record


 

Acquisition Growth On August 20, 2007, Internet Commerce Corporation completed the $70.8M acquisition of EasyLink Services Corporation Name changed to EasyLink Services International Corporation Approximately 360 employees worldwide Corporate headquarters in Norcross, Georgia Principal Offices in Dubai, France, Germany, India, UK, and US Data Centers in GA, NJ, OH, and UK ICC EasyLink EDI Non-EDI message delivery modes, including e-mail, telex, and fax


 

Organic Growth - Fax Market Numbers are estimates based on 2005-2006 numbers from Davidson Consulting 2007 Fax Market Survey Global Enterprise Desktop Fax Market is Growing ESIC ranks in the top 3 in the Enterprise Desktop Fax market Key growth drivers: outsourcing of fax machines and servers and compliance and security


 

Organic Growth - EDI Market EDI Market Growth EDI Managed Services (including web-based and outsourced EDI) growth at approximately 15% EDI VAN growth approximately 3% to 5% Key growth drivers include: outsourcing of EDI function and international use of EDI


 

What the Market is Saying...


 

Service Line Segments On Demand Messaging (Web- Based Fax Solutions): Production Messaging: Moderate market growth; Web service integration Desktop Fax Messaging: Fast growing enterprise segment; International expansion Competitors: j2 Global, Premier Global Supply Chain Messaging (EDI Solutions): Value Added Network (VAN): Single Digit Historical Growth EDI Managed Services: Outsourcing a growing segment Telex: Largest suppler in a declining market; Outsourcing and consolidation opportunities Competitors: GXS, Inovis, Sterling, SPS 47.5% 52.5%


 

Concentration of Revenue IDM, 17% Production & Broadcast Fax 17% Telex Services 13% VAN 31% Managed Services 9% VAN 31% VAN 31%


 

Revenue by Business Sector Publishing, Gov't Agencies & Small Accounts 36% Financial services 17% Mining and Manufacturing 10% Professional services 15% Retail/ Distribution services 8% Airline, 0% Oil & Gas, 1% Construction, 2% Telecommunications, 3% Insurance, 4% Air Delivery & Freight Services, 4%


 

Financial Overview Six Months Ended January 31, 2008 Compared with the Six Months Ended January 31, 2007 Results of Operations


 

Financial Overview Condensed Consolidated Balance Sheets as of January 31, 2008 and July 31, 2007 (unaudited)


 

Structure of 8/07 Financing Issuer Amount Securities Term Conversion Price Interest Rate Principal Amortization Prepayment Penalty Warrants $70M York Capital Management, an $11 billion investment fund $35M Series A senior secured convertible notes (the "Series A") $35M Series B senior secured convertible notes (the "Series B") 4 Years $3.04 - (23.4M shares if fully converted) Series A: Prime + 75 bps Series B: Prime + 300 bps with downward adjustments Mandatory redemption feature after 18 months Series A: 25% prepayment penalty Series B: 12.5% prepayment penalty for up to $15M within the first year; 25% prepayment after one year Approximately 4.2 million warrants with a five year term and a strike price of $3.34


 

Experienced Management Team Thomas J. Stallings, CEO More than thirty-five years experience in sales, marketing, finance, and operations Has successfully led several private companies through strong growth and into profitability as well as through successful acquisitions by larger organizations Former president and COO of CoreHarbor; president and CEO of Cambar Software Inc.; and president and CEO of Analytika, Inc. Held management and executive positions at Oracle and IBM Glen Shipley, VP, CFO Over thirty years of financial and legal expertise in public accounting practices, corporate ethics, SEC regulations, mergers and acquisitions Former CFO of Melita International, Inc.; CFO and administrative officer of eshare communications.; CFO and secretary of Vanishing Point, Inc. CPA, member Washington state bar Kevin R. Maloney, SVP of Global Sales and Marketing More than thirty years of experience in technology sales and marketing in the Americas, Europe, the Middle East and Africa (EMEA), and Asia Pacific Former executive vice president of worldwide sales for Network General Corporation; vice president of worldwide sales for Check Point Software Technologies, Inc., Began career at IBM, with positions of increasing responsibility in sales and sales management


 

Investment Highlights Capitalizing on a Large and Fragmented Marketplace Leading Provider of Web-Based Fax and EDI Solutions Global Presence Offers a Competitive Advantage Large and Diverse Customers Base Includes a Majority of the Fortune 100 Recurring Revenue Model Strong Financial Backer in York Capital Management High Margins EasyLink Services International Corporation