EX-99 3 dex99.txt ANALYST DAY PRESENTATION MATERIALS "We're taking on network integrity." C-COR "The One Solution for Network Integrity" Presents: The Faces of C-COR Analyst Day 2001 [LOGO] C-COR.net The One Solution for Network Integrity "We're taking on network integrity." Some of the information contained in this presentation constitutes forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward- looking statements represent the Company's judgment regarding future events. Although the Company believes it has a reasonable basis for these forward-looking statements, the Company cannot guarantee their accuracy and actual results may differ materially from those the Company anticipated due to a number of uncertainties, many of which the Company is not aware. Factors which could cause actual results to differ from expectations include, among others, capital spending patterns of the communications industry, the demand for network integrity, the trend toward more fiber in the network, the Company's ability to develop new and enhanced products, the Company's ability to provide complete network solutions, continued industry consolidation, the development of competing technologies, the global demand for the Company's products and services, the Company's ability to successfully implement three new business divisions, integrate acquisitions and achieve its strategic objectives. For additional information concerning these and other important factors which may cause the Company's actual results to differ materially from expectations and underlying assumptions, please refer to the reports filed by the Company with the Securities and Exchange Commission [LOGO] C-COR.net The One Solution for Network Integrity "We're taking on network integrity." Overview of Today . Provide a solid understanding of C-COR's - Plans - People - Products . Includes a tour and demos . Establishes a foundation for evaluation [LOGO] C-COR.net The One Solution for Network Integrity "We're taking on network integrity." C-COR ANALYST DAY 09:00-10:00 Welcome Corporate Overview Financial Summary Network Requirement Trends 10:00-12:30 BCP Overview} BNS Overview} Concurrent BMS Overview} 12:30-13:00 LUNCH 13:00-14:30 Tour 14:30-15:00 Wrap-Up/Questions [LOGO] C-COR.net The One Solution for Network Integrity "We're taking on network integrity." C-COR Vision A world-class, growth-oriented leader in providing quality, global market-focused products, services and operations management solutions which enable cost-effective, interactive information services over broadband communications networks. [LOGO] C-COR.net The One Solution for Network Integrity "We're taking on network integrity." Corporate Overview . Approximately 2000 [PICTURE] employees . Traded on Nasdaq, [PICTURE] Symbol CCBL . Home page at www.c-cor.net [LOGO] C-COR.net The One Solution for Network Integrity "We're taking on network integrity." Corporate Overview . Global HQ: - State College, PA [PICTURE] . Three Divisional Headquarters Meriden, CT Denver, CO Pleasanton, CA [PICTURE] [PICTURE] [PICTURE] Products Services OSS Solutions [LOGO] C-COR.net The One Solution for Network Integrity Global Reach [LOGO] C-COR.net At the core of confidence [MAP] "We're taking on network integrity." Key C-COR Customers [LOGO] Adelphia [LOGO] ERICSSON [LOGO] Telenor [LOGO] AT&T [LOGO] eKabel [LOGO] UNITED GLOBAL COM ------------------------- AOL Time Warner ------------------------- [LOGO] Charter [LOGO] CABLEVISION [LOGO] EWB COMMUNICATIONS [LOGO] COX [LOGO] BLUE RIDGE [LOGO] ntl: [LOGO] UPC COMMUNICATIONS COMMUNICATIONS [LOGO] [LOGO] COMCAST(R) [LOGO] ROGERS(TM) [Picture] CORPORATION Titus [LOGO] C-COR.net The One Solution for Network Integrity "We're taking on network integrity." Integrated Capability ------------------- -------------------- ------------------- Broadband Broadband Broadband Communications Network Management Products Services Solutions ------------------- -------------------- ------------------- --------- ------------------- ADC Valley Cable ------------------ --------- ------------------- MobileForce ------------- Technologies --------- Aerotec ------------------ SVCI ------------- --------- ------ ------------------ ACSI Convergence ------ ------------------ ---------------- ------------------ ------------------ Legacy C-COR Worldbridge Legacy C-COR Products ------------------ OSS Solutions ---------------- ---------------------- ------------------ Legacy C-COR Services ---------------------- [LOGO] C-COR.net The One Solution for Network Integrity "We're taking on network integrity." C-COR Top Level Organization David Woodle Chairman & CEO Bill Hanelly Ken Wright Chief Financial Chief Technology Officer Officer David Eng Gerhard Nederlof Mary Beahm Frank Chelko Corporate Corporate Corporate Corporate Vice President Vice President Vice President Director Americas Business Europacific Business Human Resources Quality Assurance John Caezza Doug Engerman Paul Janson Division President Division President Division President Broadband Broadband Broadband Communications Management Network Products Solutions Services [LOGO] C-COR.net The One Solution for Network Integrity "We're taking on network integrity." 2001 - The Year that Was... . The Industry Acts . C-COR responds - Consolidation continues - Establish realistic plan - Economic recession - Re-align infrastructure costs; retain flexibility - Capital budgets cut - Focus on investing in strategic - Excess inventory builds plan - Upgrades pushed out - Develop strong retention program - Technology moves ahead - Exit slowdown stronger than entered [LOGO] C-COR.net The One Solution for Network Integrity "We're taking on network integrity." C-COR Four Step Plan 1. Extend Product Line [LOGO] 2. Integrate Network "The One Solution for Applications Network Integrity" 3. Offer Operations Management Solutions 4. Provide Quality Services [LOGO] C-COR.net The One Solution for Network Integrity "We're taking on network integrity." Desired Balance Achieved Product Mix [PIE CHART] [PIE CHART] RF SERVICE FIBER RF SERVICE FIBER Customer Mix [PIE CHART] [PIE CHART] 2 over 20% 4 at 15% [LOGO] C-COR.net The One Solution for Network Integrity Provides data that demonstrates over last 3 years C-COR has more diverse product and customer mix. Product Mix ----------- 1998 2001 RF 87%, Service 5%, Fiber 8% RF 43%, Services 15%, Fiber 42% -- - - -- -- -- Customer Mix ------------ 1998 2001 2 Customers 4 Customers accounted accounted for for approx. 15% each approx. 20% each "We're taking on network integrity." Solid Financial Results . Created solid cash position . Grew Quarterly Rev's over 15% annualized . Doubled Company Valuation [CHART] CASH QTRLY REV MARKET CAP [LOGO] C-COR.net The One Solution for Network Integrity 2 sets of bar graphs depicts improved levels of cash, quarterly revenue and market cap from Oct 98 to Oct 01. Oct 98 Oct 01 Cash 950k Cash $58m --- -- Q Rev 32m Q Rev 52m -- -- Mkt Cap 110m Mkt Cap 225m --- --- "We're taking on network integrity." Lifecycle Phases PLANNING DEPLOYMENT [LOGO] OPERATIONS ROLLOUT [LOGO] C-COR.net The One Solution for Network Integrity "We're taking on network integrity." Lifecycle Phases Planning Deployment Roll Out Operations [GRAPHICS] [LOGO] C-COR.net The One Solution for Network Integrity "We're taking on network integrity." Customer Spending Waves [CHART] PLANNING DEPLOYMENT ROLL-OUT OPERATIONS [LOGO] C-COR.net The One Solution for Network Integrity "We're taking on network integrity." Global Rebuild Status [CHART] Rebuilt Homes Non Rebuilt Homes Data from CED/Ellis Research and Company Sources [LOGO] C-COR.net The One Solution for Network Integrity Chart compares % rebuilt networks vs. % non-rebuilt networks in four regions: US, Europe, Asia, Lat. America. US = 70% rebuilt, 30% non-rebuilt Europe = 25 " , 75 " -- -- Asia = 30 " , 70 " -- -- Lat. America = 35 " , 65 " -- -- "We're taking on network integrity." Service Rollout Forecasts 2001 ---- HSD [CHART] HSD @9%; Telephony Digital VOD @21% Digital Data from Allied Business Intelligence and Kagan [LOGO] C-COR.net The One Solution for Network Integrity Bar graph shows projected growth over ten year period (1996-2006) of services rolled out on US HFC networks, including high speed data, telephony, video on demand and digital tv. 1996 2006 ---- ---- HSD 0 subs HSD 12415 subs --- ------- Telephony 5 subs Telephony 5579 subs --- ------ VOD 0 subs VOD 23939 subs --- ------- Digital 0 subs Digital 33156 subs --- ------- Slide also shows that in 2001, HSD penetration is at 9% and Digital penetration is at 21%. "We're taking on network integrity." BMS Market Chart [CHART] [LOGO] C-COR.net The One Solution for Network Integrity Bar chart depicts market opportunity for Broadband Management Services Worldwide. Of a billion dollar market in the US, less than 4% of that market has been tapped. Of a half billion dollar market in Europe, only 2 % of that market has been tapped and of a 200,000 dollar market in Asia, only 1 % of that market has been tapped. "We're taking on network integrity." Financial Reporting Structure Business Units FAS 131 Reporting Segments -------------- -------------------------- -------------------------- -------------------------- Broadband Communications Telecommunications Products Equipment -------------------------- -------------------------- -------------------------- Broadband Network Services -------------------------- -------------------------- Broadband Management -------------------------- Services Broadband Management -------------------------- Solutions -------------------------- [LOGO] C-COR.net The One Solution for Network Integrity "We're taking on network integrity." Q1 Highlights - Income Statement . Product sales grew 44% over previous quarter . ADC acquisition closed August 4 . Gross margin of 29% reflects changes in product mix and manufacturing cost structure . Volume adequate to sustain R&D investment at a profit . Technical services sales stabilized . Overhead cost structure to support higher volume . Opportunity-rich environment suggests potential for growth in CY 02 . Solutions division in investment mode . Investment approximately equal to C-COR's pre-tax loss in quarter . Investment should peak in second quarter [LOGO] C-COR.net The One Solution for Network Integrity "We're taking on network integrity." Q1 Highlights - Balance Sheet . Current Ratio . 3.4:1 including cash . 2.4:1 without cash . Cash and marketable securities - $58.4 M . Working capital replenished . CapEx and depreciation balanced . Accrued liabilities . Pro forma earnings/loss - cash generation/use [LOGO] C-COR.net The One Solution for Network Integrity "We're taking on network integrity." Financial Objectives . Gross Margin expansion . Optical products mix . Technical services overhead . Software fixed costs . Operating efficiencies . ERP - automation . Acquisition integration . Historical operating margins and beyond [LOGO] C-COR.net The One Solution for Network Integrity "We're taking on network integrity." Financial Summary . Manufacturing infrastructure adjusted to current sales volume - gross margins back to historical levels . Solid balance sheet - manageable cash consumption related to investment in future . Business model in place for earnings rebound based on market conditions [LOGO] C-COR.net The One Solution for Network Integrity "We're taking on network integrity." Where Is Technology Going? ------------------------- Brief Look At 4 Aspects: ------------------------ . Marketplace Trends . Impact On Cable Operators . Architecture Migration . Resultant C-COR Opportunities [LOGO] C-COR.net The One Solution for Network Integrity "We're taking on network integrity." Marketplace Trends ------------------ . Continued growth rate of internet, and growth of high speed access (CM & DSL) . DBS growth & competitive pressure . POTS 2nd line growth . PC migration to living space . In-home networking . Converging entertainment & interactivity (gaming, streaming, "always on" web, etc) [LOGO] C-COR.net The One Solution for Network Integrity "We're taking on network integrity." Impact On Cable Operators MSO Initiatives (Current & Planning) ----------------------------------- . Continue Cable Modem Push . Continue Digital Video Push . VOD . Stop DBS bleeding . Incremental revenue (recapture video rental $) . Telephony Services . Business voice & data . Residential voice services - multiple lines, value-add . Interactive TV . WWW and e-mail on TV; Enhanced information . Competitive value-add; New revenue streams [LOGO] C-COR.net The One Solution for Network Integrity "We're taking on network integrity." Impact On Cable Operators Issues ------ . All These = Network Demands: . Downstream - from Broadcast to Dedicated traffic . Upstream - more demand on fragile, limited bandwidth . Scalability - Success is its own enemy . Service Availability - Network Reliability . Beyond-entertainment services (including lifeline) . Competitive pressure . Shortage Of Qualified Technical Workforce [LOGO] C-COR.net The One Solution for Network Integrity "We're taking on network integrity." Architecture Migration Going Forward - Network Changes ------------------------------- . Individual Traffic vs "Broadcast" . Frequency Re-Use vs Additional Bandwidth: . Remove Tx Splitting & Rx combining . WDM and DWDM . Node Splitting/Segmentation . Fiber Deeper . Requires Additional Fiber Transmitters & Return Receivers, and Upgrade/Add Nodes . Digital Return . Bandwidth Efficiency, Reach, Signal Reliability . Business High Speed Data Overlay [LOGO] C-COR.net The One Solution for Network Integrity "We're taking on network integrity." Traditional Bus Architecture [Graphic] [LOGO] C-COR.net The One Solution for Network Integrity "We're taking on network integrity." Segmented Star-Bus Architecture [Graphic] [LOGO] C-COR.net The One Solution for Network Integrity "We're taking on network integrity." Resultant C-COR Opportunities ----------------------------- Broadband Communications Products --------------------------------- . Segmenting Network/Traffic . Additional Transmitters & Return Rx . Segmentable Nodes & "Lid Upgrades" . Digital Return . Business HSD Overlay Solutions (now & RPR) . Further Domestic Upgrades . Stay Ahead Of Service Launches . Secondary Markets . International Network Deployments [LOGO] C-COR.net The One Solution for Network Integrity "We're taking on network integrity." Resultant C-COR Opportunities ----------------------------- . Network Management . Monitoring, Fault Correlation, Proactive Maintenance . Systems Integration - Single Database & User Interface . Workforce Management . Operational Efficiencies - Direct ROI . Improved Customer Service . Technical Services . Network Deployment & Service Rollouts . Ongoing Operations . New Skills Requirements . Reputation For Technical Proficiency [LOGO] C-COR.net The One Solution for Network Integrity "We're taking on network integrity." Network Deployment ------------------ Digital Interconnect [PICTURES] Line Customer Headend Hub Node Amplifier Extender Premises > Forward > Equipment Transmitters > Technical Services > Return Receivers > EDFAs C-COR Product/Service Areas > Technical Services Not C-COR Products [LOGO] C-COR.net The One Solution for Network Integrity "We're taking on network integrity." MSO Spending Migration ----------------------- Resultant Needs, Products & Services ------------------------------------ > COR-Convergence > Workforce Management > Outsourced Skilled Labor > Servers, CMTS, Switches, etc. Digital Set-tops, Cable Modems, NIDs > Network Segmentation > Technical Services MSOs Focus / Spending --------------------- -- Ongoing Operations: ------------------ >Network Management >Operational Efficiencies >Network Maintenance Services Rollout ---------------- [Graphic] -- Network Deployment [Graphic] [LOGO] C-COR.net The One Solution for Network Integrity "We're taking on network integrity." . We are focused on where cable operators' businesses, networks, and needs are going. . We have, and are continuing to develop, the products and services that they will need. . We have put the structure and the people in place to successfully deliver what customers need today and tomorrow. [LOGO] C-COR.net The One Solution for Network Integrity "We're taking on network integrity." C-COR Forward Strategy . Leverage total solutions for infrastructure integrity . Products - Solid Business Foundation - Optics growth - International rebuild . Services - Steady Revenues and Expansion - Supports all phases - Can regionally support various markets . Operational Management - Growth Business - Positioned for next phase of spending - Proven products and capabilities - Very small installed base [LOGO] C-COR.net The One Solution for Network Integrity "We're taking on network integrity." 2002 Success Milestones . Revenues Mix . International Products Business . Service Margins . BMS Awards [LOGO] C-COR.net The One Solution for Network Integrity "We're taking on network integrity." C-COR Analyst Day 09:00-10:00 Welcome Corporate Overview Financial Summary Network Requirement Trends 10:00-12:30 BCP Overview BNS Overview Concurrent BMS Overview 12:30-13:00 LUNCH 13:00-14:30 Tour 14:30-15:00 Wrap-Up/Questions [LOGO] C-COR.net The One Solution for Network Integrity "We're taking on network integrity." Tour Highlights . All divisions covered - Just a sample in corporate headquarters . Includes AT & T's headend - 50,000 homes passed - 650 plant miles - 6,000 modem customers - Varied node size - Adelphia has purchased [LOGO] C-COR.net The One Solution for Network Integrity "We're taking on network integrity." Tour Highlights (cont'd) . Product Development - Component R&D - Engineering Lab - Technology Center - Halt Quality Testing - Manufacturing Floor [LOGO] C-COR.net The One Solution for Network Integrity "We're taking on network integrity." Tour Highlights (cont'd) . Network Services - Outside Plant Services - Network Design - Training Facility . Management Solutions - Engineering Lab - Integrated Demo [LOGO] C-COR.net The One Solution for Network Integrity "We're taking on network integrity." Broadband Communications Products We provide digital and analog transport system solutions for advanced broadband network operators [LOGO] C-COR.net The One Solution for Network Integrity "We're taking on network integrity." History . A 50 year history of Technology, Innovation, Quality and Service. - Established 1953 - Silicon Valley Communications Inc (Sept. `99) - ADC'S Broadband Communications Division (Aug. `01) [LOGO] C-COR.net The One Solution for Network Integrity "We're taking on network integrity." Division Overview . Approximately 1200 employees . Core competencies in digital, [PICTURE] opto-electronic & RF design . Global reach [PICTURE] [LOGO] C-COR.net The One Solution for Network Integrity "We're taking on network integrity." Division Overview . Global HQ: Meriden, CT . Three Design [PICTURE] Competency Centers . Four Strategic Manufacturing Centers State College Klagenfurt Buenos Aires Tijuana [PICTURE] [PICTURE] [PICTURE] [PICTURE] [LOGO] C-COR.net The One Solution for Network Integrity "We're taking on network integrity." Broadband Communications Products John Caezza President Joe Zavacky Finance (acting) John Hastings Vice President N.A. Sales Ops. . Domestic Sales . Manage Sales Eng. Team . Business fcst. . Account coordination w/ Corp. AM's . Cust. Service Bob Oakley Vice President Product Mgmt. . Product Mgmt. . Product Mkt. . Business partner mgmt. . Technical Publications Peter Wolff Vice President Product Dev. . Development project mgmt. . Product architecture . Systems Eng. . Product Dev. . Documentation Bill Milliron Vice President Global Mfg. . Production Management & Supervision . Planning and Tactical Purch. . Mfg. & Test Eng. . Facilities . Product and Process QA Mario Frattaroli Vice President Global Ops. . MPS & forecast analysis . Master Scheduling & Logistics . Commodity Mgmt./ Inventory Mgmt. . OEM/Outsourcing/ Partnering . Supplier Dev. & Assurance [LOGO] C-COR.net The One Solution for Network Integrity "We're taking on network integrity." Our Business - Today . Broadband Transport and Access Systems for the Cable MSO - domestic & international - Video transport is our expertise - Digital Video transport systems - HFC transport/video access systems . Video Transport (Tariff) Systems for ILEC, CLEC, and Commercial Broadcast applications (CBS, CNN, etc.) [LOGO] C-COR.net The One Solution for Network Integrity "We're taking on network integrity." Our Business is Fundamentally Broadband Transport . Our strength and expertise is video transport . DV products for broadcast quality, uncompressed video transport . HFC infrastructure systems optimized for video and broadband services delivery [LOGO] C-COR.net The One Solution for Network Integrity "We're taking on network integrity." Network Overview [Generic depiction of a network] [LOGO] C-COR.net The One Solution for Network Integrity "We're taking on network integrity." Key BCP Customers [LOGO] Adelphia [LOGO] Mediacom [LOGO] eKabel [LOGO] AT&T [LOGO] Qwest ---------------------------------- AOL Time Warner ---------------------------------- [LOGO] BEZEQ [LOGO] Charter [LOGO] CABLEVISION COMMUNICATIONS [LOGO] UPC [LOGO] COX [LOGO] ROGERS(TM) COMMUNICATIONS [LOGO] COMCAST(R) [LOGO] ntl: [Picture] CORPORATION [LOGO] C-COR.net The One Solution for Network Integrity "We're taking on network integrity." Digital Video Transport [Graphic] Applications II Benefits II . HFC Backbone, HE Consolidation . ~$500M Installed base . Local and network broadcasters . Most powerful and cost-effective . Post-production houses . Reliable, pristine signal quality . Distance learning . Flexible, modular . Video conferencing . Multiformat - uncompressed and compressed video and audio [LOGO] C-COR.net The One Solution for Network Integrity "We're taking on network integrity." LumaCor Headend/Hub Optics [Graphic] [Graphic] [Graphic] 3 RU and 1 RU 1550 nm QAM High-powered Universal Chassis Transmitters EDFAs Applications II Benefits II . HE to hub or node . Superior performance - 1330 . Supports VOD, HSD, interactive and 1510 nm TV, cable telephony . Modular, compact . Medium haul transport and . Maximum reliability, minimizes distribution service . Flexible, scalable [LOGO] C-COR.net The One Solution for Network Integrity "We're taking on network integrity." NaviCOR & FlexNet Nodes and Amps [Graphic] [Graphic] [Graphic] Quadrant II Digital Return FlexNet Trunks Segmentable Node Systems And Bridgers Applications II Benefits II . Advanced VVD networks two-way . Backed by decades of industry analog and digital know-how . Deep node or bridger penetration . Reliable, scalable, cost-effective . Passive optical networks . Extended bandwidth . Nodes upgrade from amps . High performance, TL Technology [LOGO] C-COR.net The One Solution for Network Integrity "We're taking on network integrity." International Products I-Flex Trunks, Bridgers, Lines Extenders FOX Distribution Comtec Distribution and I-FLEX II Modular Nodes Equipment Equipment Applications II . Global cabinet/pedestal mount systems . Analog and digital multi-service HFC networks . Fiber to the building, curb, and last amp or in passive optical network Benefits II . Reliable, extended bandwidth . Modular, easy to maintain . Two-way . Bridgers upgrade to nodes . Cost-effective, improved system performance [LOGO] C-COR.net The One Solution for Network Integrity "We're taking on network integrity." Looking Forward, The Market is Changing . HFC networks are no longer simply broadcast networks for entertainment content ( "Cable TV") - High Speed Data (HSD) - VOD and SVOD - Telephony . The North American MSO's have shifted their priorities to roll-out of new services. - HSD and VOD services are the current focus . The International markets are accelerating their adoption of new technologies. [LOGO] C-COR.net The One Solution for Network Integrity "We're taking on network intergrity." Taking Advantage of the Changing Market . We provide our customers with the fastest time to profit for new services and revenue streams - Our systems need to provide the lowest cost per unit of bandwidth delivered - Our systems need to be open, easy to install, use, and integrate into existing architectures and operational systems - Our systems need to provide fast time to profit through optimization with and reuse of the existing HFC infrastructure [LOGO] C-COR.net The One Solution for Network Integrity "We're taking on network intergrity." Key Success Factors . High value, applications focused offering . IP interconnection of access applications . Scalable - architecture, and technology: Gigabit Ethernet, 10Gig-E, 40Gig-E and beyond . Standards based to ensure low cost, high value . Integrated management systems, including provisioning, billing, and performance . Never forget our roots - Video Transport begets Video Content - we must leverage our knowledge of Broadband Video Transport! [LOGO] C-COR.net The One Solution for Network Integrity "We're taking on network intergrity." Small & Medium Enterprise (SME) A New Opportunity . Currently less than 10% of all SME are on line - 11% of online SME are BB, mostly via xDSL . 2005, 50% will have BB access via xDSL and HFC (or new platforms) . Of 7.8M SME, 7.1M have less than 9 employees on line, and spend about $440/m on telephony and data access . Broadband penetration of SMEs expected to grow at ~ 40% CAGR over next five years. - xDSL, fixed wireless or HFC. Source: Company reports, McKinsey and JPMS [LOGO] C-COR.net The One Solution for Network Integrity "We're taking on network intergrity." Key for Our Future Product Availability . High Density Platform . Q1 2002 . Digital Summing Transceiver . Q1 2002 . Gigabit Ethernet overlay . Q1 2002 . DV SONET/SDH Interface . Q4 2002 . Fiber to the Business (RPR) . H2 2003 . Fiber to the Home (RPR) . H1 2004 [LOGO] C-COR.net The One Solution for Network Integrity "We're taking on network intergrity." Broadband Communications' Future . HSD and VOD Applications will provide near term opportunities to maintain and grow current market position. . International Markets provide yet untapped potential for existing and near term product offerings. . Telco Markets provide additional opportunity for existing and future product offerings. . SME Product Offering provides C-COR access to $1billion market . Gigabit Ethernet Product provides a natural bridge to SME . RPR Transport Product provides the future system solutions for today's MSO, Telco and International network provider. [LOGO] C-COR.net The One Solution for Network Integrity "We're taking on network intergrity." The Knowledge Source for Network Integrity... ...The Product Source for Network Performance [Graphic] [Graphic] [Graphic] [Graphic] "Converging on Opportunity" [LOGO] C-COR.net The One Solution for Network Integrity "We're taking on network integrity." Broadband Management Solutions Ensuring the integrity of multi-services delivery to the customer premise [LOGO] C-COR.net The One Solution for Network Integrity "We're taking on network integrity." Broadband Management Solutions . "Proactive" solution paradigm for BSP's - COR-Convergence: intelligent network management - MobileForce: mobile workforce automation . Fully integrated OSS solution suite from a single, trusted supplier [LOGO] C-COR.net The One Solution for Network Integrity "We're taking on network integrity." BMS Facts . Full-time staff of 95 people - Engineering-centric team . Experienced leadership & team - Broadband domain, OSS background, software development, integration services, business process re-engineering . Headquarters in Pleasanton, CA [PICTURE] - Engineering facilities: . State College . Atlanta [LOGO] C-COR.net The One Solution for Network Integrity "We're taking on network integrity." BMS Organization [Graphic] [LOGO] C-COR.net The One Solution for Network Integrity "We're taking on network integrity." Our Customers' Challenges . Transition to highly competitive service space . Transition from network upgrade to customer deployment and multi-service operation . Transition to mission-critical service offerings . Integration and operation of multi-vendor systems & network assets across properties . Continued margin performance pressure [LOGO] C-COR.net The One Solution for Network Integrity "We're taking on network integrity." Our Customers' Challenges Network INMS Back-office Manual Creation of Network Data Customer Premise Equipment Network CAD System Intelligent Network Network Elements Management & SNMP System Customer Care (Billing System) Head-end System Interface Trouble Ticketing System [LOGO] C-COR.net The One Solution for Network Integrity "We're taking on network intergrity." One Window to Your Network [PICTURE] [LOGO] C-COR.net The One Solution for Network Integrity "We're taking on network intergrity." Our Solution Strategy . Leverage C-COR.net's deep HFC technology know-how, and industry position - BCP & BNS . Open software solution - Support for existing infrastructure and systems - Adapt to a dynamic technology environment . Utilize industry recognized OTS software tools to accelerate time-to-market of our products - Best-of-breed software products [LOGO] C-COR.net The One Solution for Network Integrity "We're taking on network integrity." Our Solution Strategy . Rapid customer delivery model - Ready-integrated (XML bus), highly configurable products . Customer enterprise deployment or ASP model - Fully web enabled solutions - Highly scalable solutions . Utilize proven software development & customer delivery methodologies [LOGO] C-COR.net The One Solution for Network Integrity "We're taking on network integrity." Key BMS Customers ------------------------------- [LOGO] AOL Time Warner Charter ------------------------------- COMMUNICATIONS [LOGO] INSIGHT -------------- COMMUNICATIONS [LOGO] WideOpenWest Bringing Broadband Home [LOGO] COGECO [LOGO] COMCAST(R) ------------- CORPORATION [LOGO] C-COR.net The One Solution for Network Integrity "We're taking on network integrity." Opportunity for Our Customers . Aggressively compete for new services (RGU's) - Telephony - High speed data - Interactive entertainment services . Superior service delivery to customers - Support SLA & QoS customer commitments - Reduce customer acquisition & retention costs - Reduce customer churn - Operational efficiency [LOGO] C-COR.net The One Solution for Network Integrity "We're taking on network integrity." OSS Solutions for a Connected World "in a flash" [LOGO] C-COR.net The One Solution for Network Integrity "We're taking on network integrity." BMS Future . OTS integration with new BSP enterprise systems, network infrastructure & CPE . Continued emphasis on BMS product functionality supporting SLA & QoS requirements . Reduce our product deployment costs to improve overall BMS solution margins [LOGO] C-COR.net The One Solution for Network Integrity "We're taking on network integrity." Opportunity for Our Customers . Real-time decision support - Fully integrated with customer information & the BSP enterprise . Create business intelligence - Service usage modeling (customer) - Service response performance - Network performance - Vendor (equipment) performance - ISP performance [LOGO] C-COR.net The one solution for Network Integrity "We're taking on network integrity." Broadband Network Services We provide hands-on technical services for advanced broadband network operators [LOGO] C-COR.net The One Solution for Network Integrity "We're taking on network integrity." History . The current BNS structure came about as a result of the combination of acquisitions and existing services components already existing within C-COR. - ACSI (12/99), Worldbridge Broadband Services (2/00), Valley Communications (7/01) & Aerotec (7/01). [LOGO] C-COR.net The One Solution for Network Integrity "We're taking on network integrity." BNS Operating Structure . BNS operates under four separate yet complementary business units, currently employing in excess of 400 skilled technicians. - Network Engineering & Design Services - Network Integration Services - Outside Plant Services - Outsourced Operational Services [LOGO] C-COR.net The One Solution for Network Integrity "We're taking on network integrity." Corporate Office Paul E. Janson President / CEO Outside Plant Ric Roberts Larry Warren Jim Romese Pat Kelly Regional VP's VP CTO / Sales VP VP Network Eng. & Design Outsourced Operational Network Integration Services Robert Sullins Eric Johnson Dana Kring Scott Ishler VP VP VP VP South West Mid west East
[LOGO] C-COR.net The One Solution for Network Integrity "We're taking on network integrity." Key BNS Customers [LOGO] Adelphia [LOGO] TIME WARNER Telecom ------------------------- AOL Time Warner [LOGO] INSIGHT [LOGO] AT&T ------------------------- COMMUNICATIONS [LOGO] Level(3) [LOGO] Qwest [LOGO] ARRIS COMMUNICATIONS [LOGO] Charter [LOGO] CABLEVISION [LOGO] IBM COMMUNICATIONS [LOGO] Altrio ONE CONNECTION INFINITE POSSIBILITIES [LOGO] COX [LOGO] Mediacom COMMUNICATIONS [LOGO] NORTEL NETWORKS [LOGO] ROGERS(TM) [LOGO] Cisco Systems [LOGO] COMCAST(R) [LOGO] Cable Zocalo Empowering the CORPORATION Internet Generation [LOGO] C-COR.net The One Solution for Network Integrity "We're taking on network integrity." Technical Services Network Engineering and Design . RF Design [Picture] . Walkout & Field Engineering . Fiber Design/Drafting . Fiber Documentation . Project Management . Engineering Consultation . Strand Digitizing (AutoCAD & MicroStation) . Data Archiving [LOGO] C-COR.net The One Solution for Network Integrity "We're taking on network integrity." Network Engineering & Design - Client Requirements: Currently there exists approximately 1.5 million CATV plant miles in the North American cable universe. The shear number of design changes, digitizing, new build is large. Factor in the few remaining O/B's and the telephony market and the opportunity is significant. [LOGO] C-COR.net The One Solution for Network Integrity "We're taking on network integrity." Technical Services Network Integration . HE & CO Space Design . Rack & Stack . CMTS, DWDM & SONET Installations . Fiber & Traditional HE Installations . Certification / Documentation . Training . Engineering Design . QA Project Management . LAN, WAN & VPN Installations . Certifications: IBM, Lucent, Nortel, Cisco, Barco, Antec . Cornerstone, ADC, COM21, Fujitsu, Qwest [Graphic] [LOGO] C-COR.net The One Solution for Network Integrity "We're taking on network integrity." Technical Services Network Integration-Continued . Wireless Solution: All phases of fixed and mobile design, engineering & installation . CO DSL Installations . Data Center & NOC Solutions [PICTURE] [LOGO] C-COR.net The One Solution for Network Integrity "We're taking on network integrity." NETWORK INTEGRATION - Client Requirements: The vast client needs in this space exist primarily outside the CATV world. In this space we work for clients such as IBM, Nortel, L3, Cisco & Qwest. - Outsourcing: The telecommunications space continues to shed jobs at a rapid pace. However the network operational problems still exist. We believe we are well positioned to grow the outsourcing aspect of this business. [LOGO] C-COR.net The One Solution for Network Integrity "We're taking on network integrity." Technical Services Outside Plant . Sweep and Balance . Node Certification . Coax & Fiber Placing . Coax & Fiber Splicing . Ingress Mitigation [PICTURE] . POP Certification . Node Hardening / PM Program . Broadband Technicians . Project Management . Fixed Wireless Construction [LOGO] C-COR.net The One Solution for Network Integrity "We're taking on network integrity." Outside Plant Services - Client Requirements: Through 2003 we will continue to see strong rebuild activity from Charter, Adelphia, AT&T as well as second tier cable systems. - Capital / Expense Shift: During this time our business unit will slowly transition our technical expertise over to the expense side of the clients' budget, using our plant conditioning / PM program. [LOGO] C-COR.net The One Solution for Network Integrity "We're taking on network integrity." Technical Services Outsourced Operational Services . Residential /Commercial Installation . Voice, Analog / Digital Video & Data . Audit [PICTURE] . Drop Swap . FSO [LOGO] C-COR.net The One Solution for Network Integrity "We're taking on network integrity." Outsourced Operational Services - Client Requirements: There exists today approximately 10,000 cable systems with 65 million customers. With a churn number of 30% that equates to 20 million positive / negative jobs per year. Add in new connects for additional services, drop swaps & audits and the opportunity is significant. BNS operates at a higher technical level than our competitors and we believe that this differentiating factor will allow us to continually grow this business. - Incremental Revenue: In addition to the installation side, our company dynamics allow us to add IR at our project locations (Knoxville). [LOGO] C-COR.net The One Solution for Network Integrity "We're taking on network integrity." Future Opportunities . Network Design: Break into telephony and utility power design. . Network Integration: Continue to shift BNS into the greater telecom world. Broadly defined, the telecommunications market spends $200 billion per year to install and provision end user clients. . Outside Plant: Convince our existing clients to outsource certain aspects of proactive preventative maintenance to BNS. . OOS: Grow at a 30% rate and improve margins. This would mean adding two / three new locations per year. [LOGO] C-COR.net The One Solution for Network Integrity