Dnpi ir deck 9 15-10

Corporate PresentationSeptember 2010

MOVING DECISIONS CLOSER TO THE CUSTOMER2 OTCBB: DNPI

Important Disclaimers

This presentation is neither an offer to sell nor a solicitation of offers to purchase securities. This presentation is the confidential intellectual property of DecisionPoint Systems, Inc. (“DecisionPoint”). Any use or redistribution of this document or its contents without the express written consent of DecisionPoint is prohibited.

This presentation contains statements that constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Those statements appear in a number of places in the presentation and include statements regarding the intent, belief or current expectations of Decisionpoint, its directors or its officers with respect to, among other things: (i) trends affecting DecisionPoint’s financial condition or results of operations; (ii) DecisionPoint’s financing plans; and (iii) DecisionPoint’s business and growth strategies, among other things.

Readers are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors. You are cautioned not to place undue reliance on these forward-looking statements, which reflect DecisionPoint’s management’s view only as of the date of this presentation.

The content of this presentation is copyright 2010 DecisionPoint Systems, Inc.


Key Stats: DNPI

Stock Price 9/15/10 $0.25

Avg. Daily Vol. (100 day) 38,665

52 Week Low/High $0.20 - $0.90

Shares Outstanding 30.3M

Public Float, est. 14.8M

Market Capitalization $7.6M

Enterprise Value (mrq) $34.6M

EV/Sales (ttm) 0.7x

Revenue (ttm) $49.0M

EPS (ttm) $(0.05)

Operating Income (ttm) $1.1M

Cash (mrq) $0.5M

Total Assets (mrq) $21.6M

Total Liabilities (mrq) $26.6M

Institutional Holdings 49%

Insider Holdings 51%

Employees 64

Founded 2003Public thru Reverse Merger Jun 09

Fiscal Year End Dec 31

mrq & ttm as of Q2 2010 ended June 30, 2010Sources: Capital IQ, Yahoo! Finance, BigCharts.com

FY07

FY08

FY09

$0.2

$1.0

$1.8

Operating Income($ Millions)

17.8%

18.9%

20.2%Gross Margin

(Percent)

51.5 53.348.3

Annual Revenue($ Millions)


What we do…

DecisionPoint is a leading provider of Enterprise Mobility Hardware, Software and Service Solutions.

Our technology makes real-time, interactive data accessible to the front-line worker anytime, anywhere via wireless hand-held devices and electronic tagging.*

By moving decision points closer to the front-line worker and customer, we provide our clients improved productivity and operational advantages.

*Radio Frequency Identification (RFID)


Target Markets & Technology Solutions

Field Services RetailWarehouse

Distribution & Manufacturing

• Field Asset Management (FAM)

• Maintenance Work Orders

• Rounds & Readings (i.e., Utilities)

• Inspections & Claims

• Parts Management

• Physical Inventory/Audit

• Field Sales Automation

• GPS & Turn-by-Turn Navigation

• Proof of Delivery

• Mobile Point-of-Sale (POS)

• Price Management

• Line Busting

• Gift Registries

• Price Checkers

• Item & Shelf Labeling

• Store Management Alerts & Reporting

• Inventory Management

• Business Two-Way Radio

• Enterprise Asset Management (EAM)

• Item & Shelf Labeling

• Inventory Management

• Process Control

• RFID pedigree and certification

• Supply Chain Management (SCM)

• Business Two-Way Radio


High Growth Industries: $11.0B by 2012

Mobile Middleware (MMW): $1.6B by 2013

Radio Frequency Identification (RFID): $4.0B in 2009 to $8.4B by 2012

Field Asset Management (FAM): $0.3B in 2008 to $1.6B by 2013

40% CAGR in three main markets, totaling $11.0B by 2012

$0.5B to $1.0B immediately addressable by DNPI"The hard-dollar justification behind field asset

management deployments is becoming more straightforward.” - Frost & Sullivan

0

2

4

6

8

10

12

2009 2010 2011 2012

MMWRFIDFAM

($ B

illion

s)


Key Market Driver: Convergence

Convergence of handheld

capabilities and

smartphones with cost

effective RFID

technologies is opening

up new market

opportunities.

Industry at epicenter of

the next technology shift

to wireless broadband.

OperatingSystems

WirelessBroadband

RFID

Mobile EnterpriseTechnologies Convergence

PCS Internet Wireless

1999 2004 2009 20131994


Competitive Landscape

Low

RFID

Exp

eri

en

ce H

igh

RFID

Exp

eri

en

ce

Regional Reach Global Reach

Reach & RFID Experience


Technology & Services Partners

DecisionPoint delivers operational benefits by integrating product and service offerings of leading ecosystem partners

Motorola Business Partner of the Year 2007


Success Stories with Marquee ClientsTrack record of success; product/service traction with Blue-chip customer base worldwide

• $3.5M contract

• Vehicle return management systems

• Recurring revenue stream to DecisionPoint : $3M annually

• 2,500 locations

• Manages night security

• All retail locations of large national financial institution

• RFID tags overcome issues of bar scanners to confirm security agent rounds

• Real-time management of SLAs

• High margin recurring revenue

• BITS

• Complete warehouse, inventory and distribution tracking system

• Supports deployments in Afghanistan and Iraq

• $5.4M contract

• High margin recurring revenue

• OEM product arrival

• Track 15K- 25K packages received daily from FedEx, UPS, etc.

• Instantaneous real-time geo-location and billing

• $3M - $4M annual recurring revenue and increasing

• SaaS model


2007 2008 2009

$0.2

$1.0

$1.8Operating Income

($ Millions)

17.8%

18.9%

20.2%

Gross Margin(Percent)

Annual Revenue, Gross Margin, Operating Income

Business is transitioning to higher

margin, customer-driven mobile

wireless & RFID software and service

solutions.

Recurring revenue has increased

from approximately 20% of revenue

in 2006 to 28% in 2009.

2009 Operating Income increased

87% to $1.8 million, driven by Gross

Margin expansion to 20.2% from

18.9% in 2008.

$10.1 $12.6 $13.5

$41.4 $40.7 $34.8

Revenue($ Millions)Non-Recuring

Recurring

$41.2$51.5 $53.

3 $48.3

DecisionPoint Systems became a public company in June 2009 through a reverse merger with Canusa Capital Corp.


3Q09 4Q09 1Q10 2Q10

$0.17 $0.62

$(1.23) $(0.85)

Net Income($ Millions)

20.6%21.9%

18.4% 19.0%

Gross Margin(Percent)

Quarterly Revenue, Gross Margin, Operating Income

2Q10 revenue up 20% sequentially

and 10% year-over-year to $13.3M.

2Q10 gross profit percentage up 3%

sequentially to 19%.

Continued gross margin expansion

drove positive operational profit .

2H-10 Outlook: Revenues

~$32.0M -$34.0M; Operating

Income of $1.7M -$2.0M; EPS

$0.03-$0.04.

$11.5 $13.1

$11.1 $13.3

Revenue($ Millions)


Growth Strategy & Goals

Increase sales of high margin software and professional services from 30%+ of sales today to at least 50%+ in 3 years.

Grow sales organically by an average of 15% - 20%+ per annum, with additional external growth through select acquisitions both in the U.S. and Europe.

Broaden customer base (retail ~ 35% of sales) more deeply into manufacturing, pharmaceutical, warehousing & distribution, and field mobility.

Grow to annual run rate of $100 million in revenue and $8 million in operating income by the end of 2011, organically and through acquisition.


Recent News & Events 2010

August: DecisionPoint received certification as authorized Motorola two-way radio reseller.

July: G4S Secure Solutions USA tapped into DecisionPoint's technological proficiencies for integration and deployment support.

July: US Air Force Reserve awarded DecisionPoint ensuing order to augment ongoing $5.4M inventory tracking program.

June: DecisionPoint retired over $545K of subordinated notes and $229K acquisition related debt.

June: Won 15 contracts totaling more than $1.2M for its new MobileArc for Couriers mobile solution offering.

March: RecycleBank selected DecisionPoint to design, implement and support RecycleBank’s Asset Management Platform in the field.

http://www.recyclebank.com/


Key Take-Aways

DecisionPoint Systems is a leading provider of Enterprise Mobility Hardware, Software and Service Solutions.

Large, fast growing addressable markets, with significant near-term consolidation opportunities.

Business is transitioning to higher margin, customer-driven mobile wireless and RFID solutions.

Operating profitably, with recurring revenue and gross margin expansion.

2H-10 Outlook: Revenues ~$32.0M-$34.0M; Operating Income of $1.7M-$2.0M; EPS $0.03-$0.04.

3Q 09

4Q 09

1Q 10

2Q 10

20.6%

21.9%

18.4%19.0%

Gross Margin


For More Information

Company Contact:

Donald W. Rowley

Chief Financial Officer

DecisionPoint Systems, Inc.

Tel 949.465.0065 x105

[email protected]

www.decisionpt.com

Investor Relations Contact:

Scott Liolios or Matt Glover

Liolios Group, Inc.

Tel 949.574.3860

[email protected]

mailto:[email protected]

http://www.decisionpt.com/

mailto:[email protected]

Appendix


Strong Industry Roots & Experience

DecisionPoint’s chairman, president and CEO, Nic Toms, was previously founder & CEO of Peak Technologies.

Bar Code Based Supply Chain Technologies.

Completed 26 acquisitions.

Grew revenues from $5M to $300M.

40% CAGR.

IPO at $8 a share.

Sold to RR Donnelley at $18 a share (1997).

Reven

ues

($

Million

s)

IPO $8

0

5

10

15

20

25

30

35

0

50

100

150

200

250

300

350

High $27

88 89 90 91 92 93 94 95 96

Sto

ck P

rice ($

)

Management team offers extensive industry expertise &

successful roll-up strategy track record


Management with Proven ExperienceName / Title Selected Prior Experience

Nic TomsChairman, CEO and Director

• Chairman, President and CEO of Peak Technologies• CEO of Cape Systems Group, Inc. • Skadden Arps

Don RowleyCFO and Director

• CFO of Peak Technologies• CFO of Norand Corporation (now part of Intermec)

John ChisSVP Sales North America

• 20 years with Symbol Technologies and Telxon (acquired by Symbol)

• Sales, marketing and operations management experience

Matt LombardiStrategic Planning and Development

• CEO Sentinel Business Systems, Inc.; Co-founder & President of Planet Technology Solutions

• VP Information Technology of Toys “R” Us

Brent FelkerDirector of Field Mobility

• Formerly Senior Sales VP of Peak Technologies• Initiated Field Mobility Practice at Motorola/Symbol; Initiated Field

Mobility at Psion/Teklogix

Melinda WohlVP Finance and Controller

• Controller for an international manufacturer/distributor of electronic components

Roy CeccatoVP Finance, Compliance

• Formerly CFO for a public heavy truck trailer manufacturer and Sarbanes-Oxley compliance experience

Dnpi ir deck 9 15-10

Documents

forwardlooking statements

gross margin expansion

annual revenue

operating income2q10

mobile wireless rfid

service solutions

decisionpoints business

higher margin