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 4, 2010
(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	(Commission File Number)	(IRS Employer Identification No.)
of incorporation)

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))

TABLE OF CONTENTS

EX-99.1

EX-99.2

Item 2.02 Results of Operations and Financial Condition; and

Item 7.01 Regulation FD Disclosure

The following information shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

On August 4, 2010, Agilysys, Inc. (the “Company”) issued a press release announcing its results for the fiscal 2011 first quarter ended June 30, 2010. 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

(d) Exhibits

The following item is furnished as an exhibit to this current report on Form 8-K:

99.1     Press release issued by the Company dated August 4, 2010, announcing its results for the fiscal 2011 first quarter ended June 30, 2010.

99.2     First quarter ended June 30, 2010 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 4, 2010

Exhibit Index

Exhibit Number	Description
99.1	Press release issued by the Company dated August 4, 2010, announcing its results for the fiscal 2011 first quarter ended June 30, 2010.
99.2	First quarter ended June 30, 2010 slide presentation for earnings webcast conference call.

EX-99.1

Exhibit 99.1

FOR IMMEDIATE RELEASE

Agilysys Reports Unaudited Fiscal 2011 First-Quarter Results

• Strong Services and Software Growth Drives Increase in Gross Margin

• Company Remains Debt-Free with $50 Million in Cash on Hand

CLEVELAND—Aug. 4, 2010—Agilysys, Inc. (Nasdaq: AGYS), a leading provider of innovative IT solutions, today announced unaudited financial results for its fiscal 2011 first quarter ended June 30, 2010.

First-Quarter 2011 Unaudited Results of Operations

Consolidated revenue for the fiscal 2011 first quarter increased 1.9% from the year-ago period to $132.4 million. Services increased 11%, software increased 35%, and hardware sales declined 7%, compared with the first quarter of fiscal 2010. Revenue from the Company’s Hospitality Solutions Group increased 44%, while the Retail and Technology Solutions groups declined 3% and 4%, respectively.

Gross margin in the quarter expanded to 25.6%, compared with 24.5% in the first quarter of the prior fiscal year. The improvement was largely due to the higher software and services revenue, which carries higher average margins compared with hardware sales. The margin improvement was partially offset by a decline in vendor incentives in the quarter, as well as pricing pressure on hardware.

Selling, general and administrative (SG&A) expense declined 11% to $40.1 million, compared with $44.8 million in the prior-year first quarter. The decrease was primarily attributable to lower compensation and benefit expense and acquisition-related intangibles amortization.

The pre-tax loss for the quarter narrowed to $5.8 million from $12.4 million last year. Despite the pre-tax loss, the Company recorded income tax expense of $4.5 million in the first quarter of fiscal 2011 related to a correction of an error in the Company’s prior period deferred tax valuation allowance.

The reported net loss for the quarter was $10.3 million, or a loss of $0.45 per share, compared with the net loss of $12.4 million, or a loss of $0.55 per share, in the prior-year quarter.

Adjusted EBITDA (operating income plus depreciation and amortization), excluding restructuring charges, was a loss of $2.7 million, versus a loss of $6.6 million in last year’s first quarter.

Martin Ellis, president and chief executive officer of Agilysys, commented: “Our strategy of developing higher-value solutions with more proprietary software and services is contributing to improved margins. On a segment basis, HSG and RSG met expectations. While TSG revenue lagged expectations during the quarter, we successfully increased attach rates, bundling more software and services with hardware sales.”

Financial Position

At June 30, 2010, cash on hand was $50.0 million, compared with $51.0 million at June 30, 2009, and $65.5 million at March 31, 2010. The Company is currently debt-free and has no outstanding balance on its $50 million credit facility. The Company’s year-to-date decrease in cash is primarily related to higher accounts receivable balances in connection with the transition of invoicing to the Company’s new ERP platform. The Company indicated that the transition process has been largely completed and invoicing and collections are expected to improve in future quarters.

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

Business Outlook

“Our investments in people, infrastructure and product development are starting to make the contributions that we expected. The demand environment has improved which bodes well for the future and our new integrated Oracle ERP platform will, over time, contribute to improved financial reporting, internal controls and operating efficiencies, as well as enhance customer service,” Ellis concluded.

The outlook for cash-flow generation remains strong and the Company expects to generate $10 million to $15 million in cash flow in fiscal 2011. Agilysys also expects to incur capital expenditures of approximately $10 million and depreciation and amortization of approximately $12.5 million.

Conference Call Information

A conference call will be held at 11:00 a.m. ET today to review unaudited fiscal 2011 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.

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 release 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, expected benefits and outcomes from our recent ERP implementation, business strategies, future financial results, unanticipated downturns to our relationships with customers and macroeconomic demand for IT products and services, unanticipated difficulties integrating acquisitions, new laws and government regulations, interest rate changes, consequences of MAK Capital’s shareholder-approved control share acquisition proposal, and unanticipated deterioration in economic and financial conditions in the United States and around the world or the consequences. The Company does 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 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. 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.

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

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

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 and support offices in the United Kingdom, Singapore and Hong Kong.

News releases and other information on the company 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

—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)	2010			2009
Net sales:
Products	$	104,129		$	104,423
Services		28,314			25,581
Total net sales		132,443			130,004
Cost of goods sold:
Products		86,677			85,411
Services		11,900			12,743
Total cost of goods sold		98,577			98,154
Gross margin		33,866			31,850
Selling, general and administrative expenses		40,065			44,807
Restructuring charges		393			14
Operating loss		(6,592	)		(12,971	)
Other (income) expense:
Other income, net		(1,083	)		(755	)
Interest income		(23	)		(23	)
Interest expense		286			199
Loss before income taxes		(5,772	)		(12,392	)
Income tax expense		4,480			15
Loss from continuing operations		(10,252	)		(12,407	)
Income from discontinued operations		—			11
Net loss	$	(10,252	)	$	(12,396	)
Loss per share — basic and diluted
Loss from continuing operations	$	(0.45	)	$	(0.55	)
Net loss	$	(0.45	)	$	(0.55	)
Weighted average shares outstanding
Basic and diluted		22,750,740			22,627,338
Cash dividends per share	$	—		$	0.03

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

AGILYSYS, INC.
BUSINESS SEGMENT INFORMATION (UNAUDITED)

	Three Months Ended June 30, 2010
	Reportable Segments									Corp/
(In thousands)	HSG			RSG			TSG			Other			Consolidated
Total net revenue	$	23,049		$	23,837		$	85,557		$	—		$	132,443
Gross margin	$	13,287		$	5,669		$	14,910		$	—		$	33,866
Gross margin percentage		57.6	%		23.8	%		17.4	%					25.6	%
Operating income (loss)	$	2,239		$	1,768		$	(1,752	)	$	(8,847	)	$	(6,592	)
Other income, net		—			—			—			1,083			1,083
Interest expense, net		—			—			—			(263	)		(263	)
(Loss) from continuing operations before income taxes	$	2,239		$	1,768		$	(1,752	)	$	(8,027	)	$	(5,772	)
Non-cash charges:
Depreciation and amortization(a)	$	1,092		$	80		$	799		$	1,484		$	3,455
Restructuring charges	$	—		$	—		$	—		$	393		$	393
Total	$	1,092		$	80		$	799		$	1,877		$	3,848

	Three Months Ended June 30, 2009
	Reportable Segments									Corp/
	HSG			RSG			TSG			Other			Consolidated
Total net revenue	$	16,044		$	24,445		$	89,515		$	—		$	130,004
Gross margin	$	9,540		$	5,376		$	17,729		$	(795	)	$	31,850
Gross margin percentage		59.5	%		22.0	%		19.8	%					24.5	%
Operating (loss) income	$	(2,149	)	$	1,411		$	(2,912	)	$	(9,321	)	$	(12,971	)
Other income, net		—			—			—			755			755
Interest expense, net		—			—			—			(176	)		(176	)
(Loss) income from continuing operations before income taxes	$	(2,149	)	$	1,411		$	(2,912	)	$	(8,742	)	$	(12,392	)
Non-cash charges:
Depreciation and amortization(a)	$	1,123		$	50		$	3,951		$	1,204		$	6,328
Restructuring charges	$	—		$	—		$	—		$	14		$	14
Total	$	1,123		$	50		$	3,951		$	1,218		$	6,342

^(a) Does not include the amortization of deferred financing fees totaling $131 and $88 for the three months ended June 30, 2010 and 2009, respectively.

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

AGILYSYS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS

	June 30,			March 31,
	2010			2010
(In thousands, except share data)	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	49,967		$	65,535
Accounts receivable, net		121,921			104,808
Inventories, net		25,857			14,446
Deferred income taxes — current, net		147			144
Prepaid expenses and other current assets		3,901			5,047
Income taxes receivable		10,300			10,394
Total current assets		212,093			200,374
Goodwill		50,350			50,418
Intangible assets, net		32,259			32,510
Deferred income taxes — non-current		—			899
Other non-current assets		17,518			18,175
Property and equipment, net		26,549			27,995
Total assets	$	338,769		$	330,371
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	87,790		$	70,171
Deferred revenue		23,534			23,810
Accrued liabilities		15,201			17,705
Capital lease obligations — current		403			311
Total current liabilities		126,928			111,997
Other non-current liabilities		22,825			19,450
Shareholders’ equity:
Common shares, without par value, at $0.30 stated value; authorized 80,000,000 shares; 31,606,831 issued and 23,011,111 and 22,932,043 shares outstanding at June 30, 2010 and March 31, 2010, respectively		9,482			9,482
Treasury shares (8,595,720 shares at June 30, 2010 and 8,674,788 shares at March 31, 2010)		(2,578	)		(2,602	)
Capital in excess of stated value		(8,303	)		(8,770	)
Retained earnings		191,882			202,134
Accumulated other comprehensive loss		(1,467	)		(1,320	)
Total shareholders’ equity		189,016			198,924
Total liabilities and shareholders’ equity	$	338,769		$	330,371

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

AGILYSYS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

	Three Months Ended June 30,
(In thousands)	2010			2009
Operating activities:
Net loss	$	(10,252	)	$	(12,396	)
Less: Income from discontinued operations		—			(11	)
Loss from continuing operations		(10,252	)		(12,407	)
Adjustments to reconcile net loss from continuing operations to net cash used for operating activities:
Gain on redemption of Company-owned life insurance policies		(2,065	)		—
Depreciation		1,140			933
Amortization		2,446			5,483
Deferred income taxes		4,362			(38	)
Stock-based compensation		679			540
Change in cash surrender value of company owned life insurance policies		855			(283	)
Changes in operating assets and liabilities:
Accounts receivable		(17,346	)		47,936
Inventories		(11,413	)		6,855
Accounts payable		17,711			48,374
Accrued and other liabilities		(2,708	)		(12,934	)
Income taxes receivable		(116	)		(1,339	)
Other changes, net		1,006			(1,488	)
Other non-cash adjustments		420			(326	)
Total adjustments		(5,029	)		93,713
Net cash provided by (used for) operating activities		(15,281	)		81,306
Investing activities:
Proceeds from The Reserve Fund’s Primary Fund		—			1,629
Proceeds from redemption of/ borrowings against company-owned life insurance		2,248			12,500
Additional investments in Company-owned life insurance policies		(504	)		(1,031	)
Proceeds from the sale of marketable securities		14			33
Additional investments in marketable securities		—			(45	)
Purchase of property and equipment		(1,753	)		(3,461	)
Net cash provided by investing activities		5			9,625
Financing activities:
Floor plan financing agreement, net		—			(74,468	)
Proceeds from borrowings under credit facility		—			5,000
Payments under credit facility		—			(5,000	)
Debt financing costs		—			(1,606	)
Dividends paid		—			(681	)
Issuance of common shares		—			33
Principal payment under long-term obligations		(101	)		(108	)
Net cash used for financing activities		(101	)		(76,830	)
Effect of exchange rate changes on cash		(191	)		465
Cash flows (used for)/provided by continuing operations		(15,568	)		14,566
Cash flows of discontinued operations — operating		—			205
Net (decrease) increase in cash		(15,568	)		14,771
Cash at beginning of period		65,535			36,244
Cash at end of period	$	49,967		$	51,015

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)	2010			2009
Net loss	$	(10,252	)	$	(12,396	)
Plus:
Interest expense, net		263			176
Income tax expense		4,480			15
Depreciation and amortization expense (a)		3,455			6,328
Other income, net		(1,083	)		(755	)
Income from discontinued operations, net of tax		—			(11	)
Adjusted EBITDA		(3,137	)		(6,643	)
Restructuring charges		393			14
Adjusted EBITDA from continuing operations excluding restructuring charges	$	(2,744	)	$	(6,629	)

^(a) Depreciation and amortization expense excludes amortization of deferred financing fees, totaling $131 and $88 for the three months ended June 30, 2010 and 2009, 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 2011 Unaudited First Quarter ResultsAugust 4, 2010

Forward looking statements & non-GAAP financial information Forward-Looking LanguageThis 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, expected benefits and outcomes from our recent ERP implementation, business strategies, future financial results, unanticipated downturns to our relationships with customers and macroeconomic demand for IT products and services, unanticipated difficulties integrating acquisitions, new laws and government regulations, interest rate changes, consequences of MAK Capital's shareholder-approved control share acquisition proposal, and unanticipated deterioration in economic and financial conditions in the United States and around the world or the consequences. The Company does 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 Annual Report filed with the SEC, under Item 1A, "Risk Factors." Copies are available from the SEC or the Agilysys web site.Use of Non-GAAP Financial InformationTo 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. 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 Revenue increased 2% from Q1 FY10 to $132.4MGross margin increased to 25.6% from 24.5% in prior year quarter on a higher proportion of services and software offset by lower rebates and hardware marginsSG&A decreased $4.7M year-over-year largely due to lower compensation expense and acquisition related intangibles amortizationProvision for income taxes increased by $4.5M in quarter primarily due to one-time valuation allowance charge for correction of an error in deferred tax assetsLoss per share from continuing operations decreased from a loss of $0.55 in Q1 FY10 to a loss $0.45

Q1 review: consolidated results Revenue increased 2%; hardware decreased by 7%, software increased by 35% and services increased by 11%Gross margins increased 110 basis points due to higher mix of services and softwareSG&A, excluding depr. & amort., decreased by $1.9M primarily due to lower fringe benefit costsDepreciation and amortization decreased due to lower acquisition related intangibles amortizationTaxes include a $4.4M charge for valuation allowance related to deferred tax assetsOperating loss was $6.6M compared with loss of $13.0M in Q1 FY10 Q1 Year-over-Year Commentary Statement of Operations ($Mil., except per share)

Q1 review: Hospitality ("HSG") Revenue increased 44% over prior year - Q1 FY10 was abnormally soft - and sequentially grew 8.5%Gross margin decreased due to higher hardware salesSG&A, excluding depr. & amort., decreased by $0.7MGuest360TM capitalized costs were $1.0M in Q1 FY11 compared with $1.0M in prior year quarterAdjusted EBITDA increased $4.3M due to higher revenue and lower SG&A HSG Segment Profit ($Mil.) Q1 Year-over-Year Commentary

Q1 review: Retail ("RSG") Revenue decreased 3% primarily due to lower hardware and software salesGross margin expanded as a result of improved hardware and software pricing and higher proportion of servicesSG&A, excl. depr. & amort., was essentially unchangedAdjusted EBITDA increased $0.3M on higher gross margins RSG Segment Profit ($Mil.) Q1 Year-over-Year Commentary

Q1 review: Technology ("TSG") Revenue declined 4%Gross margin contracted in quarter due to lower rebate margins and competitive pricingSG&A, excl. depr. & amort., decreased by $0.8M Acquisition-related intangible amortization decreased by $3.2M due to fully amortizing certain intangible assets in Q1 FY10Adjusted EBITDA decreased $2.0M due to lower revenue and gross margin pressure TSG Segment Profit ($Mil.) Q1 Year-over-Year Commentary

Q1 review: Corporate SG&A, excl. depr. & amort., decreased $1.1M due primarily to lower fringe benefit costsRestructuring charge in quarter related to benefit paymentAdjusted EBITDA loss, excluding charges, decreased $1.1M Corporate Segment ($Mil.) Q1 Year-over-Year Commentary

FY11 Q1 review: summary balance sheet performance Cash at quarter-end was $50.0M - a decrease of $15.5 million from 3/31/10Days sales outstanding increased from 69 days at 3/31/10 to 83 days - deterioration primarily related to invoicing transition to new Oracle ERP systemCapital expenditures were $1.8M for Q1 FY11 compared with $3.5M in Q1 FY10 - majority of Oracle related expenditures were expensed in Q1 FY11 Commentary Working Capital ($Mil.) Working capital is (A/R + Inventory) less (A/P + IGF flooring + Deferred Revenue)Quarterly revenue annualized at historical quarterly skew Q1FY10 Q2FY10 Q3FY10 Q4FY10 Q1FY11 Receivables 105 125.2 182.6 104.8 121.9 Working capital as % of sales 0.047 0.051 0.101 0.04 0.062 Inventory 20.4 22 25.1 14.4 25.9

Quarterly revenue HSG Revenue ($Mil.) TSG Revenue ($Mil.) Jun '08 Sep '08 Dec '08 Mar '09 Jun '09 Sep '09 Dec '09 Mar '10 Jun '10 Organic 38 29.3 34.8 20 24.4 24 37.7 25.3 24 RSG Revenue ($Mil.) AGYS Consolidated Revenue ($Mil.) Jun '08 Sep '08 Dec '08 Mar '09 Jun '09 Sep '09 Dec '09 Mar '10 Jun '10 Organic 25 23 28 24 16 23 23 21 23 Jun '08 Sep '08 Dec '08 Mar '09 Jun '09 Sep '09 Dec '09 Mar '10 Jun '10 Organic 117 119 161 112 90 109 159 89 86 Jun '08 Sep '08 Dec '08 Mar '09 Jun '09 Sep '09 Dec '09 Mar '10 Jun '10 Organic 180 171 224 155 130 156 219 136 132

FY11 outlook Demand environment has improved, while pricing remains competitiveCost structure remains in line with expectationsExpect to generate $10 to $15 million of cash in FY11Depreciation and amortization is forecast to be $12.5MCapital expenditures are expected to be approximately $10M of which $3M relates to capitalization of Guest360TM development costs and $2.0M relates to Oracle ERP implementation

Agilysys, Inc. (Nasdaq: AGYS)Fiscal 2011 Unaudited First Quarter ResultsAugust 4, 2010

Reconciliation of net (loss) to adjusted EBITDA