8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities and Exchange Act of 1934

Date of Report: August 5, 2009
(Date of earliest event reported)

AGILYSYS, INC.

(Exact name of registrant as specified in its charter)

Ohio	000-5734	34-0907152
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

28925 Fountain Parkway, Solon, Ohio	44139
(Address of principal executive offices)	(ZIP Code)

Registrant’s telephone number, including area code: (440) 519-8700

N/A
(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o      Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o      Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o      Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o      Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02 Results of Operations and Financial Condition; and

Item 7.01 Regulation FD Disclosure

On August 5, 2009, Agilysys, Inc. (the “Company”) issued a press release announcing its results for the fiscal 2010 first quarter ended June 30, 2009. A copy of the press release is attached hereto as Exhibit 99.1 and incorporated by reference herein. A copy of the slide presentation for the earnings webcast conference call is also attached hereto as Exhibit 99.2 and incorporated by reference herein.

Item 9.01 Financial Statements and Exhibits

(c) Exhibits

99.1	Press release issued by the Company dated August 5, 2009, announcing its results for the fiscal 2010 first quarter and ended June 30, 2009.
99.2	First quarter ended June 30, 2009 slide presentation for earnings webcast conference call.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

AGILYSYS, INC.
By:	/s/ Kenneth J. Kossin, Jr.
	Kenneth J. Kossin, Jr.
	Senior Vice President and Chief Financial Officer

Date: August 5, 2009

Exhibit Index

Exhibit Number	Description
99.1	Press release issued by the Company dated August 5, 2009, announcing its results for the fiscal 2010 first quarter ended June 30, 2009.
99.2	First quarter ended June 30, 2009 slide presentation for earnings webcast conference call.

EX-99.1

Exhibit 99.1

FOR IMMEDIATE RELEASE

Agilysys Reports Unaudited Fiscal 2010 First-Quarter Results

• Demand for IT products, especially hardware, was weaker than expected in first-quarter

• Fiscal 2009 annualized cost-reduction actions in excess of $35 million realized

• Cash increased by $14.8 million to $51.0 million; Company is debt-free

CLEVELAND—Aug. 5, 2009—Agilysys, Inc. (Nasdaq: AGYS), a leading provider of innovative IT solutions, today announced unaudited financial results for its fiscal 2010 first quarter ended June 30, 2009.

First-Quarter Unaudited Results of Operations

Consolidated revenue for the fiscal 2010 first quarter declined 27.6% from the year-ago period to $130.2 million. Hardware sales declined 31.6%, services declined 25.7% and software declined 1.1%, compared with the first quarter of fiscal 2009. The lower revenues reflect continued softness in demand in addition to customers delaying purchase commitments.

Gross margin in the quarter was 24.7%, compared with 26.6% in the first quarter of fiscal 2009, largely due to lower services revenues and services margins.

Selling, general and administrative (SG&A) expense was down $11.7 million, or 20.7%, to $44.8 million, compared with $56.6 million in the prior-year first quarter. The decrease was primarily attributable to cost-reduction actions initiated during fiscal 2009 and lower incentive compensation.

The reported loss from continuing operations for the quarter was $12.4 million, or a loss of $0.55 per share, compared with the loss of $60.1 million, or a loss of $2.66 per share, in the prior year quarter. Prior-year results included $56.7 million in charges related to asset impairment and restructuring.

Adjusted EBITDA (operating income plus depreciation and amortization), excluding asset impairment and restructuring charges, was a loss of $6.4 million, versus a loss of $1.9 million in last year’s first quarter. The decline in gross profit from lower sales more than offset the $11.7 million reduction in SG&A expense.

“We were disappointed with the weaker-than-anticipated sales for the quarter. The lingering malaise in IT spending negatively impacted product and service revenue across the board,” said Martin Ellis, president and chief executive officer. “Our cash flow was strong in the quarter and we have begun to realize the benefits of the cost savings initiatives previously executed. However, we continue to evaluate our cost structure to address current market demand.”

Financial Position

At June 30, 2009, cash on hand increased by $14.8 million to $51.0 million from $36.2 million at March 31, 2009. The Company is debt-free and has no outstanding balances on its $50 million credit facility. Additionally, Agilysys terminated and paid off its floor plan finance facility using cash flow from operations in early May 2009.

AGILYSYS, INC. • 28925 FOUNTAIN PARKWAY • SOLON, OH 44139 • WWW.AGILYSYS.COM

Dividend

The Company also announced today that the Board of Directors voted to eliminate the payment of cash dividends. With the evolution of the Company’s business and the current quarter’s weak operating performance that resulted in the Company not maintaining its fixed charge coverage ratio, the Board voted to eliminate the dividend. The elimination of the dividend will preserve approximately $2.7 million in cash on an annualized basis and will further improve financial flexibility.

Business Outlook

With the ongoing uncertainty into IT demand, visibility remains limited. Due to this uncertainty, the Company continues to suspend revenue guidance and is also suspending its earnings guidance until visibility improves.

Conference Call Information

A conference call will be held at 11:00 a.m. ET today to review fiscal 2010 first-quarter results. A slide deck will be the basis for the review. Both the slide deck and the conference call can be accessed via the Investor Relations section of www.agilysys.com. A replay of the call will be archived on the website.

To be added to Agilysys’ e-mail distribution list, please click on the link below:
http://www.agilysys.com/home/InvestorRelations/

Forward-Looking Language

This release contains certain management expectations, which may constitute forward-looking information within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities and Exchange Act of 1934 and the Private Securities Reform Act of 1995. Forward-looking information speaks only as to the date of this presentation and may be identified by use of words such as “may,” “will,” “believes,” “anticipates,” “plans,” “expects,” “estimates,” “projects,” “targets,” “forecasts,” “continues,” “seeks,” or the negative of those terms or similar expressions. Many important factors could cause actual results to be materially different from those in forward-looking information including, without limitation, competitive factors, disruption of supplies, changes in market conditions, pending or future claims or litigation, or technology advances. No assurances can be provided as to the outcome of cost reductions, business strategies, future financial results, unanticipated downturns to our relationships with customers, unanticipated difficulties integrating acquisitions, new laws and government regulations, interest rate changes, and unanticipated deterioration in economic and financial conditions in the United States and around the world. We do not undertake to update or revise any forward-looking information even if events make it clear that any projected results, actions, or impact, express or implied, will not be realized.

Other potential risks and uncertainties that may cause actual results to be materially different from those in forward-looking information are described in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (SEC), under Item 1A, “Risk Factors.” Copies are available from the SEC or the Agilysys website.

Use of Non-GAAP Financial Information

To supplement the unaudited condensed consolidated financial statements presented in accordance with U.S. GAAP in this release, certain non-GAAP financial measures as defined by the SEC rules are used. Management believes that such information can enhance investors’ understanding of the Company’s ongoing operations and is a measure used in the Company’s debt agreement. The non-GAAP measures included in this release have been reconciled to the comparable GAAP measures within an accompanying table, shown on the last page of this release.

AGILYSYS, INC. • 28925 FOUNTAIN PARKWAY • SOLON, OH 44139 • WWW.AGILYSYS.COM

About Agilysys, Inc.

Agilysys is a leading provider of innovative IT solutions to corporate and public-sector customers, with special expertise in select markets, including retail and hospitality. The Company uses technology—including hardware, software and services—to help customers resolve their most complicated IT needs. The Company possesses expertise in enterprise architecture and high availability, infrastructure optimization, storage and resource management, identity management and business continuity; and provides industry-specific software, services and expertise to the retail and hospitality markets. Headquartered in Cleveland, Agilysys operates extensively throughout North America, with additional sales offices in the United Kingdom and Asia.

News releases and other information on Agilysys are available on the Internet at: http://www.agilysys.com

# # #

Investor Contact:

Curtis Stout
Vice President and Treasurer
Agilysys, Inc.
440-519-8635
curtis.stout@agilysys.com

Media Contact:

Maureen Morreale
Senior Communications Manager
Agilysys, Inc.
440-519-8161
maureen.morreale@agilysys.com

—FINANCIAL STATEMENTS FOLLOW—

AGILYSYS, INC. • 28925 FOUNTAIN PARKWAY • SOLON, OH 44139 • WWW.AGILYSYS.COM

AGILYSYS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

	Three Months Ended
	June 30,
(In thousands, except share and per share data)	2009			2008
				(As Adjusted)
Net sales:
Products	$	104,893		$	145,703
Services		25,297			34,048
Total net sales		130,190			179,751
Cost of goods sold:
Products		85,561			120,987
Services		12,459			10,986
Total cost of goods sold		98,020			131,973
Gross margin		32,170			47,778
Selling, general and administrative expenses		44,845			56,559
Asset impairment charges		—			33,623
Restructuring charges		14			23,063
Operating loss		(12,689	)		(65,467	)
Other (income) expense:
Other income, net		(471	)		(238	)
Interest income		(33	)		(247	)
Interest expense		207			254
Loss before income taxes		(12,392	)		(65,236	)
Income tax expense (benefit)		15			(5,162	)
Loss from continuing operations		(12,407	)		(60,074	)
Income from discontinued operations		11			38
Net loss	$	(12,396	)	$	(60,036	)
Loss per share — basic and diluted
Loss from continuing operations	$	(0.55	)	$	(2.66	)
(Loss) income from discontinued operations		—			—
Net loss	$	(0.55	)	$	(2.66	)
Weighted average shares outstanding
Basic and diluted		22,627,338			22,536,508
Cash dividends per share	$	0.03		$	0.03

AGILYSYS, INC. • 28925 FOUNTAIN PARKWAY • SOLON, OH 44139 • WWW.AGILYSYS.COM

AGILYSYS, INC.
BUSINESS SEGMENT INFORMATION (UNAUDITED)

	Three Months Ended
	June 30,
(In thousands)	2009			2008
Hospitality (HSG)
Total revenue	$	16,550		$	24,754
Elimination of intersegment revenue		(543	)		(39	)
Revenue from external customers	$	16,007		$	24,715
Gross margin	$	9,858		$	15,166
		61.6	%		61.4	%
Depreciation and amortization	$	1,123		$	1,331
Operating loss		(1,902	)		(5,859	)
Adjusted EBITDA	$	(779	)	$	(4,528	)
Goodwill and intangible asset impairment	$	—		$	7,465
Retail (RSG)
Total revenue	$	24,388		$	38,267
Elimination of intersegment revenue		(1	)		(168	)
Revenue from external customers	$	24,387		$	38,099
Gross margin	$	5,377		$	8,400
		22.0	%		22.0	%
Depreciation and amortization	$	50		$	88
Operating income (loss)		1,630			(14,372	)
Adjusted EBITDA	$	1,680		$	(14,284	)
Goodwill impairment	$	—		$	18,361
Technology (TSG)
Total revenue	$	89,824		$	118,701
Elimination of intersegment revenue		(28	)		(1,764	)
Revenue from external customers	$	89,796		$	116,937
Gross margin	$	17,729		$	22,435
		19.7	%		19.2	%
Depreciation and amortization	$	3,951		$	4,419
Operating loss		(2,534	)		(32,045	)
Adjusted EBITDA	$	1,417		$	(27,626	)
Goodwill impairment	$	—		$	7,797
Restructuring charge	$	—		$	23,063

AGILYSYS, INC. • 28925 FOUNTAIN PARKWAY • SOLON, OH 44139 • WWW.AGILYSYS.COM

AGILYSYS, INC.
BUSINESS SEGMENT INFORMATION (UNAUDITED)

	Three Months Ended
(In thousands)	June 30,
	2009			2008
Corporate / Other
Gross margin	$	(794	)	$	1,777
Depreciation and amortization (a)	$	1,204		$	1,073
Operating loss		(9,883	)		(13,191	)
Adjusted EBITDA	$	(8,679	)	$	(12,118	)
Restructuring charge	$	14		$	—
Consolidated
Total revenue	$	130,762		$	181,722
Elimination of intersegment revenue		(572	)		(1,971	)
Revenue from external customers	$	130,190		$	179,751
Gross margin	$	32,170		$	47,778
		24.7	%		26.6	%
Depreciation and amortization (a)	$	6,328		$	6,911
Operating loss		(12,689	)		(65,467	)
Adjusted EBITDA	$	(6,361	)	$	(58,556	)
Goodwill and intangible asset impairment	$	—		$	33,623
Restructuring charge	$	14		$	23,063

(a) Does not include the amortization of deferred financing fees totaling $88 and $56 for the three months ended June 30, 2009 and 2008, respectively, which related to the Corporate/Other segment.

AGILYSYS, INC. • 28925 FOUNTAIN PARKWAY • SOLON, OH 44139 • WWW.AGILYSYS.COM

AGILYSYS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(In thousands, except share data)	June 30, 2009			March 31, 2009
ASSETS
Current assets:
Cash and cash equivalents	$	51,015		$	36,244
Accounts receivable, net		104,992			151,944
Inventories, net		20,403			27,216
Deferred income taxes — current, net		6,841			6,836
Prepaid expenses and other current assets		4,409			4,564
Income taxes receivable		3,871			3,871
Assets of discontinued operations — current		433			1,075
Total current assets		191,964			231,750
Goodwill		50,592			50,382
Intangible assets, net		31,210			35,699
Deferred income taxes — non-current, net		529			511
Other non-current assets		18,501			29,008
Assets of discontinued operations — non-current		49			56
Property and equipment, net		28,830			27,030
Total assets	$	321,675		$	374,436
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	76,293		$	28,042
Floor plan financing in default		—			74,159
Deferred revenue		22,483			18,709
Accrued liabilities		19,761			37,807
Long-term debt — current		330			238
Liabilities of discontinued operations — current		722			1,176
Total current liabilities		119,589			160,131
Other non-current liabilities		21,141			21,588
Shareholders’ equity:
Common shares, without par value, at $0.30 stated value; authorized 80,000,000 shares; 31,606,829 issued at June 30, 2009		9,370			9,366
Treasury stock (8,896,778 shares at June 30, 2009 and March 31, 2009)		(2,669	)		(2,670	)
Capital in excess of stated value		(10,467	)		(11,036	)
Retained earnings		186,870			199,947
Accumulated other comprehensive loss		(2,159	)		(2,890	)
Total shareholders’ equity		180,945			192,717
Total liabilities and shareholders’ equity	$	321,675		$	374,436

AGILYSYS, INC. • 28925 FOUNTAIN PARKWAY • SOLON, OH 44139 • WWW.AGILYSYS.COM

AGILYSYS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

	Three Months Ended
	June 30,
(In thousands)	2009			2008
				(As Adjusted)
Operating activities:
Net loss	$	(12,396	)	$	(60,036	)
Less: Income from discontinued operations		(11	)		(38	)
Loss from continuing operations		(12,407	)		(60,074	)
Adjustments to reconcile net loss from continuing operations to net cash provided by (used for) operating activities (net of effects from business acquisitions):
Impairment of goodwill and intangible assets		—			54,203
Impairment of investment in cost basis company		—			(34	)
Depreciation		933			965
Amortization		5,483			6,002
Deferred income taxes		(23	)		(5,986	)
Stock based compensation		540			1,745
Changes in working capital:
Accounts receivable		46,952			14,800
Inventories		6,814			1,540
Accounts payable		48,611			(32,559	)
Accrued and other liabilities		(10,963	)		(37,012	)
Taxes payable		(3,058	)		(4,883	)
Other changes, net		(1,474	)		(236	)
Other non-cash adjustments		(1,682	)		(4,043	)
Total adjustments		92,133			(5,498	)
Net cash provided by (used for) operating activities		79,726			(65,572	)
Investing activities:
Procees from The Reserve Fund’s Primary Fund		1,629			—
Proceeds from borrowings against company-owned life insurance policies		12,500			—
Change in cash surrender value of company owned life insurance policies		(38	)		(36	)
Acquisition of businesses, net of cash acquired		—			(2,381	)
Purchase of property and equipment		(3,461	)		(764	)
Net cash provided by (used for) investing activities		10,630			(3,181	)
Financing activities:
Floor plan financing agreement, net		(74,159	)		27,201
Proceeds from borrowings under credit facility		5,000			—
Payments under credit facility		(5,000	)		—
Principal payment under long term obligations		(108	)		(42	)
Issuance of common shares		33			—
Debt financing costs		(1,606	)		—
Dividends paid		(681	)		(678	)
Net cash (used for) provided by financing activities		(76,521	)		26,481
Effect of exchange rate changes on cash		731			80
Cash flows provided by (used for) continuing operations		14,566			(42,192	)
Cash flows of discontinued operations:
Operating cash flows		205			487
Net increase (decrease) in cash		14,771			(41,705	)
Cash at beginning of period		36,244			69,935
Cash at end of period	$	51,015		$	28,230

AGILYSYS, INC. • 28925 FOUNTAIN PARKWAY • SOLON, OH 44139 • WWW.AGILYSYS.COM

AGILYSYS, INC.
RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA (UNAUDITED)

	Three Months Ended
	June 30,
(In thousands)	2009			2008
				(As Adjusted)
Net loss	$	(12,396	)	$	(60,036	)
Plus:
Interest expense, net		174			7
Other income, net		(471	)		(238	)
Income tax expense (benefit)		15			(5,162	)
Depreciation and amortization expense (a)		6,328			6,911
Income from discontinued operations, net of tax		(11	)		(38	)
Adjusted EBITDA		(6,361	)		(58,556	)
Asset impairment charges		—			33,623
Restructuring charges		14			23,063
Adjusted EBITDA excluding asset impairment and restructuring charges	$	(6,347	)	$	(1,870	)

(a) Depreciation and amortization expense excludes amortization of deferred finance costs, totaling $88 and $56 for the three months ended June 30, 2009 and 2008, respectively, as such costs are already included in interest expense, net.

AGILYSYS, INC. • 28925 FOUNTAIN PARKWAY • SOLON, OH 44139 • WWW.AGILYSYS.COM

EX-99.2

Exhibit 99.2

Agilysys, Inc. (Nasdaq: AGYS) Fiscal 2010 Unaudited First Quarter Results August 5, 2009

Forward looking statements & non-GAAP financial information Forward-Looking Language This presentation contains certain management expectations, which may constitute forward-looking information within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities and Exchange Act of 1934 and the Private Securities Reform Act of 1995. Forward-looking information speaks only as to the date of this presentation and may be identified by use of words such as "may," "will," "believes," "anticipates," "plans," "expects," "estimates," "projects," "targets," "forecasts," "continues," "seeks," or the negative of those terms or similar expressions. Many important factors could cause actual results to be materially different from those in forward-looking information including, without limitation, competitive factors, disruption of supplies, changes in market conditions, pending or future claims or litigation, or technology advances. No assurances can be provided as to the outcome of cost reductions, business strategies, future financial results, unanticipated downturns to our relationships with customers, unanticipated difficulties integrating acquisitions, new laws and government regulations, interest rate changes, and unanticipated deterioration in economic and financial conditions in the United States and around the world. We do not undertake to update or revise any forward-looking information even if events make it clear that any projected results, actions, or impact, express or implied, will not be realized. Other potential risks and uncertainties that may cause actual results to be materially different from those in forward-looking information are described in the company's Annual Report on Form 10-K filed with the Securities and Exchange Commission (SEC), under Item 1A, "Risk Factors." Copies are available from the SEC or the Agilysys web site. Use of Non-GAAP Financial Information To supplement the unaudited condensed consolidated financial statements presented in accordance with U.S. GAAP in this presentation, certain non-GAAP financial measures as defined by the SEC rules are used. Management believes that such information can enhance investors' understanding of the Company's ongoing operations and is a measure used in the Company's debt agreement. The non-GAAP measures included in this presentation have been reconciled to the comparable GAAP measures within an accompanying table, shown on the last page of this presentation.

Q1 review: highlights Demand for IT products, especially hardware, was significantly softer than expected Costs in quarter were consistent with our expectations - benefit of fiscal 2009 cost saving initiatives realized Cash increased by $14.8M to $51.0M as of June 30, 2009 primarily as a result of reduced net working capital Revenue decreased 27.6% from Q1 FY09 to $130.2M - market for IT hardware and solutions remained weak across all business segments Gross margin decreased to 24.7% from 26.6% in prior year quarter due largely to lower services revenues and margins SG&A, excluding depreciation and amortization, decreased $11.2M year-over-year largely due to benefit of FY09 cost saving actions and reduced incentive compensation Adjusted EBITDA, excluding restructuring and asset impairment charges, was a loss of $6.4M compared with a loss of $1.9M in prior year quarter Financial flexibility remains strong with $51M in cash on hand and AGYS debt-free

Q1 review: consolidated results Hardware revenue decreased 32%, services revenue decreased 26% and software declined 1% from prior year SG&A, excluding depr. & amort., decreased $11.2M Comp and benefits decreased $10.0M T&E decreased $1.0M Professional fees decreased $0.6M Bad debt expense decreased $0.5M Medical claims increased $1.5M Adjusted EBITDA, excluding charges, decreased $4.5M - significant cost savings did not fully offset 33% decline in gross profit Loss from continuing operations was $12.4M compared with a loss of $60.1M in prior year, which included $56.7M of asset impairment and restructuring charges Q1 Year-over-Year Commentary Statement of Operations ($Mil., except per share)

Q1 review: revenue mix Q1FY09 Q2FY09 Q3FY09 Q4FY09 Q1FY10 Software & services as % of total 0.285 0.289 0.306 0.339 0.325 Software & services revenue 51.2 49.5 68.5 52.8 42.3 Software and Services Mix ($Mil.) Year-over-year, software revenue decreased 1% and services revenue decreased 26%

Q1 review: Hospitality ("HSG") Revenue decreased 35% Demand in commercial gaming market remained soft and hardware product sales slowed Increased sales of hosted software Gross margin increased slightly due to higher proportion of software and services SG&A, excluding depr. & amort., decreased by $1.6M Payroll costs decreased $0.4M on FY09 cost savings and lower incentive compensation T&E decreased $0.3M Capitalization of Guest360 development costs reduced SG&A by $0.8M Fringe costs increased $0.4M due to higher medical claims HSG Segment Profit ($Mil.) Q1 Year-over-Year Commentary

Q1 review: Retail ("RSG") Revenue was consistent with our expectations given absence of several large customer roll- outs in Q1 FY09 Revenue decreased 36% primarily due to lower volumes of point-of-sale hardware and implementation services Gross margin remained flat due to relatively higher mix of hardware maintenance services SG&A, excl. depr. & amort., decreased $0.6M on lower bad debt expense and outside services Medical claims increased $0.4M RSG Segment Profit ($Mil.) Q1 Year-over-Year Commentary

Q1 review: Technology ("TSG") Soft demand for IT infrastructure solutions, especially hardware, contributed to 23% decline in revenue Market was weaker than expected Oracle pending acquisition of Sun muted historical seasonal growth in Sun product line Gross margin expanded in quarter due to higher rebate margins SG&A, excl. depr. & amort., decreased by $2.9M Cost saving actions taken in FY09 contributed $3.5M Medical claims increased $0.5M Acquisition related intangible amortization decreased $0.4M TSG Segment Profit ($Mil.) Q1 Year-over-Year Commentary

Q1 review: Corporate Gross profit decreased $2.6M due to non- recurring, miscellaneous pricing adjustments SG&A, excl. depr. & amort., decreased $6.0M due to FY09 cost saving actions Payroll related costs were down $4.3M T&E decreased $0.4M Outside services and professional fees decreased $0.6M Corporate Segment ($Mil.) Q1 Year-over-Year Commentary

Q1 review: summary balance sheet performance Cash at June 30th was $51.0M - an increase of $14.8M from 3/31/09 A/R generated $47.0M of cash Inventory generated $6.8M of cash A/P generated $48.3M of cash due to termination of floor plan financing agreement Floor plan financing payments consumed $74.2M of cash - as of June 30th, there were no amounts outstanding under floor plan financing, which was terminated May 5th Days sales outstanding improved from 88 days at 3/31/09 to 73 days at 6/30/09 Capital expenditures were $3.5M for Q1 - majority of capital expenditures relate to implementation of new Oracle enterprise software and Guest360 capitalized costs Q1 Sequential Commentary Working Capital ($Mil.) Q1FY09 Q2FY09 Q3FY09 Q4FY09 Q1FY10 Receivables 151 134.5 172 152.3 105 Working capital as % of sales 0.076 0.051 0.049 0.092 0.042 Inventory 24.1 23.5 25.5 27.2 20.4 Working capital is (A/R + Inventory) less (A/P + IGF flooring + Deferred Revenue) Quarterly revenue annualized at historical quarterly skew

Quarterly revenue Jun '08 Sep '08 Dec '08 Mar '09 Jun '09 EBITDA 116.9 118.7 161.4 111 89.8 Jun '08 Sep '08 Dec '08 Mar '09 Jun '09 Organic 24.7 23.4 27.9 23.6 16 HSG Revenue ($Mil.) TSG Revenue ($Mil.) Jun '08 Sep '08 Dec '08 Mar '09 Jun '09 Organic 38.1 29.3 34.8 20 24.4 RSG Revenue ($Mil.) AGYS Consolidated Revenue ($Mil.) Jun '08 Sep '08 Dec '08 Mar '09 Jun '09 EBITDA 179.7 171.4 224.1 155.5 130.2

Outlook Dividend With evolution of business and company not maintaining its fixed charge coverage ratio, Board voted to eliminate dividend Elimination of dividend will preserve $2.7M annually Outlook Demand environment remains weak and visibility is limited Company continues to suspend revenue guidance and has suspended earnings guidance until visibility into IT demand improves

Agilysys, Inc. (Nasdaq: AGYS) Fiscal 2010 Unaudited First Quarter Results August 5, 2009

Reconciliation of net loss to adjusted EBITDA