comdial market success comdial outperforms market and competitors, despite poor market conditions...

Comdial Market Success

Comdial Outperforms Market and Competitors, Despite Poor Market Conditions

and Challenging Financial Situation

December 18, 2001

Mark Lindsay

April 20, 2023 Comdial Corporation Confidential 2

Agenda

• Why has Comdial enjoyed market success?• What about Comdial’s financial situation?• Outperforming the market• Growing market share• Beating the competition• First Reporting of IP PBX Numbers for Comdial


Reasons for Comdial’s Market Success

• Introduced great products this year

– FX II in March

– DX-80 in April

– FX II Networking in April

– iPrimo in October

• Continued dealer loyalty

• Installed base momentum


Comdial’s Improving Financial Condition

Income Statement Data

• Change in YTD revenues vs. last year exceeded market by 5%– Phillips still estimates that market revenues are off 26.8% for 2001

– Comdial revenues are off 22% from $80.6M YTD3Q00 to $62.7M YTD3Q01

• Decreased fixed manufacturing overhead by $15M or 18% of revenue– Improves profitability and enables Comdial to weather market downturns

• Improved gross profit by 72% from $4.3M in 3Q00 to $7.3M in 3Q01– Reflects streamlined product lines and outsourcing efforts

• Cut SG&A by at least 35%– Consolidated operations and reduced work force by 75% from 1,000

employees in 2000 to 250 employees in 2001

• Net loss reduced 41.7% from $5.1M in 3Q00 to $3M in 3Q01

Source: Phillips InfoTech: Key/Hybrid Shipment Summary: Lines, Systems, and Revenues Estimate


Comdial’s Improving Financial Condition

Balance Sheet Data

• Outsourced manufacturing and sold facility and equipment

– 50% of workforce was related to manufacturing

• Reduced bank debt by $15M or 40% from $38M in 2000 to $23M in 2001

• Hired Raymond James to assist with debt restructuring

Systems

Comdial Performance versus the Market


11% Increase in Units Shipped(as compared to same period last year)

Source: Phillips InfoTech 3Q01, Key/Hybrid System Shipments

Thousands

-11223344

3Q00 4Q00 1Q01 2Q01 3Q01

Co

md

ial

Sys

tem

s

-

20

40

60

80

100

To

tal

Mar

ket

Sys

tem

s

Comdial Total

Systems


41.5% Growth in Market Share(as compared to same period last year)

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

3Q00 4Q00 1Q01 2Q01 3Q01

Systems

3.9%

5.5%



-25.0%

-20.0%

-15.0%

-10.0%

-5.0%

0.0%

5.0%

10.0%

15.0%

1

Increased Market Share in a Down Market

(as compared to same period last year)


Systems

ComdialIncreases

11%

MarketDecreases

21.5%

Systems

Comdial Performance versus the Competition


-50.0%

-40.0%

-30.0%

-20.0%

-10.0%

0.0%

10.0%

20.0%


Largest Unit Growth(as compared to same period last year)

Systems


-30.0%

-20.0%

-10.0%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

Comdial

Inte

r-Tel

Panas

onic

Compa

ny

Iwat

su

Telrad

Samsu

ng

Nortel

Panas

onic

Comm

Vodav

i

NEC/Nits

uko

Toshib

a

Avaya

Largest Market Share Increase(as compared to same period last year)


Systems

Stations

Comdial Performance versus the Market


1.8% Increase in Units Shipped


Source: Phillips InfoTech 3Q01, Key/Hybrid Stations Shipments

-

20

40

60

80

100

3Q00 4Q00 1Q01 2Q01 3Q01

Co

md

ial

Sta

tio

ns

-2004006008001,0001,2001,4001,6001,800

Thousands

To

tal

Mar

ket

Sta

tio

ns

Comdial Total

Stations


34.6% Growth in Market Share


0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

3Q00 4Q00 1Q01 2Q01 3Q01

Stations

5.2%

7.0%

Stations

Comdial Performance versus the Competition


-40.0%

-30.0%

-20.0%

-10.0%

0.0%

10.0%

20.0%

30.0%

40.0%

Largest Market Share Increase w/o Mergers


Source: Phillips InfoTech 3Q01, Key/Hybrid Station Shipments

Stations

NEC and Nitsuko merger


-60.0%

-50.0%

-40.0%

-30.0%

-20.0%

-10.0%

0.0%

10.0%

Largest Unit Growth w/o Mergers


Source: Phillips InfoTech 3Q01, Key/Hybrid Station Shipments

Stations

NEC and Nitsuko merger

IP PBX

Comdial Submits IP PBX Shipments


Vertical

Networks

36%

Nortel

27%

Altigen

8%

Mitel

6%

Comdial

5%

Alcatel

4%

Sphere

4%

Shoreline

3%

Others

7%

Entered 5th Slot in IP PBX Segment

Source: Phillips InfoTech 3Q01, IP PBX Converged System Shipments

Systems

Comdial5%

Thank You

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