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: December 12, 2007

(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.)
2255 Glades Road, Suite 301E, Boca Raton, Florida		33431
(Address of principal executive offices)		(ZIP Code)

Registrant’s telephone number, including area code: (561) 999-8700

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

	Item 2.02 Results of Operations and Financial Condition and
	Item 7.01 Regulation FD Disclosure
	Item 9.01 Financial Statements and Exhibits
SIGNATURE
Exhibit Index
EX-99.1

Item 2.02 Results of Operations and Financial Condition and

Item 7.01 Regulation FD Disclosure

On December 12, 2007, Agilysys, Inc. is making a presentation at the Raymond James 2007 IT Supply Chain Conference held in New York, New York. The presentation will be webcast and available for 30 days at http://www.wsw.com/webcast/rj31/agys/. A copy of the presentation is attached as Exhibit 99.1 to this report and is incorporated herein by reference.

The presentation includes reference to EBITDA (net income minus interest, taxes, depreciation and amortization), a non-GAAP financial measure. A reconciliation of net income, a GAAP financial measure, to EBITDA, a non-GAAP financial measure, is included in the investor presentation. Management reviews EBITDA internally to evaluate the company’s performance, and management believes that the presentation of EBITDA can enhance investors’ understanding of the company’s ongoing operations. Investors should recognize that the company’s use of EBITDA may not be comparable to similarly titled measures of other companies, and that EBITDA is not a substitute or alternative for measures of financial performance determined in accordance with accounting principles generally accepted in the United States (GAAP), such as net income.

A copy of the presentation will also be made available on the Investor Relations page of the company’s Web site the day of the conference.

The information contained in this Item 2.02 and Item 7.01 disclosure and Exhibit 99.1 included with this Current Report is being furnished pursuant to Item 2.02 and Item 7.01 and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section, nor shall such information be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, except as otherwise stated in such filing.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits

99.1 Presentation at Raymond James 2007 IT Supply Chain Conference held in New York, New York.

SIGNATURE

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/ Martin F. Ellis
	Martin F. Ellis
	Executive Vice President, Treasurer and Chief Financial Officer

Date: December 12, 2007

Exhibit Index

Exhibit Number	Description
99.1	Presentation at Raymond James 2007 IT Supply Chain Conference held in New York, New York.

EX-99.1

December 2007

Business Overview

Exhibit 99.1

Who we are

A leading provider of innovative IT solutions to corporate and public-sector customers, with special
expertise in select markets, including retail and hospitality

A leading provider of innovative IT solutions to corporate and public-sector
customers, with special expertise in select markets, including retail and
hospitality

Agile and effective organization, comprised of highly skilled and experienced people

A business built on:

Our technical competency

Our ability to understand customers key issues

Our sound financial metrics

Experienced in diverse industries to better serve our customers with the following key strengths

Agility and execution – produce results on a timely and cost-effective basis

Technical competency and experience – reputation as trusted advisors to evaluate, develop and
implement solutions

Long-term relationships – committed to strong and enduring relationships with our customers

1

What we do

Work as a trusted advisor to ensure the best solution available by taking
advantage of the best available technology

Agilysys uses technology—including hardware, software and services—to help customers resolve
their most complicated IT needs

Provides industry-specific software, services and expertise to retail and hospitality markets

Possesses expertise in enterprise architecture and high availability, infrastructure
optimization, storage and resource management, identity management and business
continuity

Delivers solutions with expert implementation and ongoing support ensuring highest customer
satisfaction

Agilysys designs, delivers and implements solutions by:

Selecting hardware, software and services from leading suppliers, including AGYS proprietary
software and services

Utilizing professionals that are trained and certified experts that know capabilities of
technology inside and out

Working as a trusted advisor to ensure the best solution available

2

Overview

Agilysys in strong position to invest capital to grow

significantly more profitable and attractive enterprise and continue to
increase shareholder value

3

Beginning of 2007 transformed AGYS to become leading provider of enterprise technology solutions
— at $500M, among largest solution providers with national footprint

Set new financial goals to double sales to $1B within two years and triple sales in three years to
$1.5B

Competitors are typically less than $100M, privately held, regional resellers

Made four acquisitions this calendar year increasing revenues by more than 60%

Repurchased 22.5% of outstanding shares over past three months

Have significant financial flexibility to fund aggressive growth strategy

Management team has proven it can successfully redeploy asset base and seize market
opportunities to shape profitable business—we have done this before and met or exceeded
every goal set  

CORPORATE

Agilysys businesses

Fully integrated
solutions designed
exclusively for
hotel, casino,
resort, golf and
conference center
segments of the
hospitality industry

Agilysys will continue to grow as one of largest providers of innovative IT solutions
to corporate and public sector customers with special expertise in select vertical
markets, currently including retail and hospitality

Enterprise
networking, storage
and server hardware,
software and service
solutions (CISCO,
EMC, HP, IBM, SUN)

Retail solutions to
supermarket, chain
drug and general
retail segments of
retail industry

Executive
management, shared
services (Finance, IT,
HR, Legal)

Revenues are rounded and based on trailing twelve month run rate pro forma for recent acquisitions

EBITDA = Operating income + depreciation + amortization

HOSPITALITY

REV: ~$100M

EBITDA Margin: 17%-19%

RETAIL

REV: ~$100M

EBITDA Margin: 5%-7%

TECH. SOLUTIONS

REV: ~$650M

EBITDA Margin: 5%-7%

AGILYSYS

4

Strategic goals

5

Invest in growth of business over next three years with focused set of financial targets
including:   

Double sales from $500M to $1B within two years and triple sales in three years to $1.5B

Target gross margins greater than 20%

Achieve EBITDA margins of 6% within three years

Target long-term returns on invested capital of 15%—short-term return on capital will be
diluted due to acquisitions and legacy costs

Growth will come from:

Acquisitions—significant attractive acquisition opportunities exist in marketplace

Organic growth

Expand technology solutions footprint and capabilities

Grow Cisco practice

Invest in new HSG software offerings

Progress to date: recent acquisitions

Management is confident in its ability to identify and purchase established, high-quality
companies at an acceptable price and to effectively integrate them

December 2006 —

VisualOne Systems

April 2007 —

Stack Computer

June 2007 —

InfoGenesis

July 2007 —

Innovativ

6

Expand position as a leading software developer and services provider within
hospitality industry by extending into new geographic markets and customer  
segments with Windows-based software

Expands position as a leading IT storage solutions provider for large corporate
customers

Expands west coast presence and relationship with EMC

Strengthens position as a leading provider of software solutions to hospitality
industry with premiere POS solution

Expands customer base into new verticals within hospitality industry

Immediately makes Agilysys largest commercial reseller of Sun Microsystems

Significantly diversifies vendor mix

Broadens customer base

Progress to date: supplier and product mix

With recent acquisitions, supplier concentration and product mix is significantly
more balanced than competitors and will further diversify over next 1-2 years

Supplier diversification

Product mix

7

Other

12%

EMC

9%

Sun

26%

Proprietary

16%

Symbol

3%

IBM

12%

HP

22%

Services

18%

Hardware

75%

Software

7%

Revenue ($ millions)

EBITDA ($ millions)

Note:  AGYS pro forma includes impact of organic growth and possible execution of acquisitions

* EBITDA is a non-GAAP financial measure.  A reconciliation of EBITDA to net income is included in this presentation.

AGYS Pre divestiture

AGYS current fiscal year

Progress to date: pro forma revenue and EBITDA*

Agilysys to generate $1.5 billion in revenues and 6% EBITDA margins within 3 years

AGYS 3-year plan

AGYS Pre divestiture

AGYS current fiscal year

AGYS 3-year plan

8

$1,500

$1,000

$471

$0

$400

$800

$1,200

$1,600

$2,000

FY07

FY08

FY09

FY10

Approximately

Approximately

Current

Run Rate

Approximately

$850

-$4.6

-$20

$0

$20

$40

$60

$80

$100

FY07

FY08

FY09

FY10

Approximately

6%

Approximately

2.5%-3%

Progress to date: stock repurchases

Repurchased 22.5% of outstanding shares in last three months

Currently 24.8 million shares outstanding

9

Dutch auction tender offer

Closed Sep. 19^th

Repurchased 4.7 million shares (15% of outstanding) at clearing price of $18.50

Returned $87 million to shareholders

Open market repurchase

Filed 10b5-1 plan to repurchase 2 million shares

Repurchase is complete

Current business and financial position

Business

~$100 million hospitality software business [value estimated at $200 million - $250
million¹]

~$750 million retail and technology solutions business with comparable margins to
leading VAR’s and solution providers

Financial Position

Enterprise value of $210 million²

Approximately $130 million in cash on hand [pro forma for stock repurchases]

$200 million untapped credit facility

24.8 million shares outstanding

With hospitality business value of $200M -$250M and approx. $130M in cash,
remaining retail and solution provider business currently accorded zero value

¹ Based on trading multiples of public software companies in the hospitality industry

² Based 24.8 million shares and $13.70 stock price

10

AGYS well positioned…

11

One of largest solution providers in North America

Fragmented industry

AGYS well positioned to consolidate

Competitors less than $100M, private and undercapitalized

Significant financial flexibility to fund organic and acquisitive growth

Proven track record

Strong management team

Significant tenure and industry experience

Substantial progress in first two quarters

Reconciliation of Non-GAAP Financial Measure

The presentation contains the non-GAAP financial measure of EBITDA, defined as net income
minus interest, taxes, depreciation and amortization.  EBITDA is further adjusted to remove
the results of discontinued operations and other miscellaneous expenses not impacting
operating results.  Management reviews this non-GAAP financial measure internally to
evaluate the company’s performance.  Additionally, management believes that such
information can enhance investors’ understanding of the company’s ongoing operations.  The
non-GAAP financial measure should not be considered in isolation or as a substitute for
analysis of the company’s results as reported under GAAP.  The following table reconciles the
non-GAAP financial measure to net income:

7.8

Add: Depreciation and amortization

2.5

Less: Restructuring credit

-$4.6

EBITDA

6.0

Add: Other non-operating expenses, net

2.4

Less: Interest income, net

1.9

Less: Income tax benefit

244.5

Less: Income from discontinued operations, net of taxes

$232.9

Net income

FY07

($ millions)

12