EX-99.1 2 dex991.htm SLIDE PRESENTATION Slide Presentation
Metrologic Instruments, Inc.
2006 Annual Shareholders Meeting
June 15, 2006
Exhibit 99.1

During the course of this presentation, we may make projections or other forward-
looking statements regarding future events or the future financial performance of
the company.
Such statements are just estimates and actual events or results may differ
materially from these forward-looking statements.  Please refer to the documents
that the company files with the SEC from time to time and the company’s first
quarter earnings press release for a detailed discussion of the factors, risks and
uncertainties that could cause actual results to differ materially from those
contained in our projections or forward-looking statements.
During this presentation, we will refer to certain non-GAAP measures as defined
by the SEC. As required, we have provided a reconciliation of those measures to
the most comparable GAAP measures.
Copies of our SEC filings are available upon request or by accessing our company
website at www.metrologic.com.
Private Securities Litigation Reform Act of 1995
Safe Harbor Provision
Page 2

•Call to Order & Introductions
C. Harry Knowles
•Report of the Inspector of Elections
Kevin Bratton
•Ratification of Directors and Auditors
C. Harry Knowles
•Annual Meeting Presentation -
Q&A
Mark Schmidt, Joseph Sawitsky, Frank Zirnkilton
•Adjournment
C. Harry Knowles
AGENDA
Page 3

C. Harry Knowles
Chairman of the Board

•
Steady historical growth –
pace
accelerating
•
RIGHT team and resources in
place
•
FOCUS –
we KNOW who we are
•
CEO Search
•
Litigation
Page 5

Mark C. Schmidt
Executive Vice President –
Strategic Initiatives

*Based upon the midpoint of the Company’s FY 2006 guidance.
Earnings Guidance was effective as of the date given and will not be revised until the Company publicly announces updated guidance.
Total Company Revenue
15.5%
CAGR
21.5%
CAGR
Page 7

2006
2011
#1 in bar code
scanning &
imaging.
The Retail
Consumer
Connection
Company
A Full-line
supplier of
AutoID
Hardware.
Track 1
Track 1
Track 2
Track 2
Track 3
Track 3
1
2
3
Revenue Bridge
Page 8

2006
2011
#1 in bar code
scanning &
imaging.
The Retail
Consumer
Connection
Company
An end-to-end
supplier of
AutoID
equipment
Track 1
Track 1
Track 2
Track 3
1
Revenue Bridge
Page 9

903
743
686
623
663
775
767
403
376
320
289
307
351
358
427
329
310
323
353
372
403
171
205
222
1999
2000
2001
2002
2003
2004
2005
2006E
2007E
2008E
2009E
2010E
Handheld
Stationary POS
Industrial
Scan Engines
$1.75 B
$2.4 B
Source: 2005 Venture Development Corp and Metrologic Estimates
Global Bar Code Scanner Hardware Market
4.0%
8.8%
& Metrologic Share Gains
2%
4%
6%
8%
10%
Track 1
Track 1
Track 2
Track 3
Page 10

Max Volume
10+ items per customer
Supermarkets
DIY
Higher Volume
6–10 items per customer
Small grocery
Liquor store
Moderate Volume
1–5 items per customer
Many customers in line
Convenience store
Specialty Retail
Lower Volume
1–5 items per customer
A few customers
Selling Price
Sub $100
$100–$200
$200–$300
$300–1,000
Track 1
Track 1
Track 2
Track 3
Page 11

Transport /
Distribution
Manufacturing
Healthcare
Hospitality
Entertainment
Postal
Government
OEM
Other
Professional
Services
Retail   
Track 1
Track 1
Track 2
Track 3
Page 12

Source:  Venture Development Corp. 2006
Track 1
Track 1
Track 2
Track 3
Manufacturer
Distribution
Retailer
•
Receiving l
Shipping
•
Stockroom l
Picking
•
Tracking l
Inventory
•
Factory Automation
•
Restricted Access
•
Document Control
•
Receiving
•
Picking l Stocking l Inventory
•
POS l
Payment l Sig
Cap
•
Price Check
•
Identity l
Age Verification
•
Time & Attendance
•
Receiving l
Shipping
•
Tracking l Tracing
•
Sortation
•
Ordering l
Logistics
•
Restricted Access
•
Time & Attendance
Point-of-Sale
Page 13

Handheld Readers
Retail Stationary
2006-2007 Product Roadmap
Track 1
Track 1
Track 2
Track 3
Scan Engines
Industrial
Page 14

Getting to #1 -
we have:
Retail Stationary
$358 mm
Scan Engines
$222 mm
Industrial Stationary
$403 mm
Hand Held
$767 mm
Bar Code Scanners
$1.75B
Track 1
Track 1
Track 2
Track 3
The Technology
The Channels
The People
The Intellectual Property
The Programs
Page 15

2006
2011
#1 in bar code
scanning &
imaging.
Track 1
Track 2
Track 2
Track 3
A Full-line
supplier of
AutoID
Hardware.
2
Revenue Bridge
Page 16

A Full-line supplier of AutoID
Hardware
Track 1
Track 2
Track 2
Track 3
Manufacturer
Distribution
Retailer
•
Receiving
•
Picking l Stocking l Inventory
•
POS l
Payment l Sig
Cap
•
Price Check
•
Identity l
Age Verification
•
Time & Attendance
•
Barcode l
Imaging
•
Mobile Computing
•
Wireless (WLAN, WWAN)
•
RFID
•
Barcode l
Imaging
•
Mobile Computing
•
Wireless (WLAN, WWAN)
•
RFID
Page 17

Automatic Identification
Bar Code Technologies
Bar Code
$ 5.8
Scanners
$ 1.7
Mobile Computers
$ 2.4
Printers
$ 1.6
AutoID
$ 7.8
Bar Code
$ 5.8
RFID
$ 1.1
Smart Card ID
$ 0.8
(US$ billions)
(US$ billions)
Scanners
$ 1.8
Bar Code Scanners
$1.75B
Sources: Venture Development Corp., IDTech
Ex, VDC via Raymond James Mobile Data Technology Report
Track 1
Track 2
Track 2
Track 3
Page 18

-
Entered Intermec’s Rapid Start RFID program
STEPS ALREADY TAKEN
Track 1
Track 2
Track 2
Track 3
-
Signed strategic relationship with MaxID
-
Expanded Proprietary OS Mobile Computers
-
Engaged in Selling re-branded Scanners to Key
Global Supplier of Factory Automation Equipment
-
Launched Maximus
WinCE Mobile Computer
-
Launched Impulse Fixed RFID Reader
Page 19

2D
Imager
Gen 2
RFID +
2D
Imager
Gen 2
RFID
GPS / GSM
Biometric
Fingerprint
Pistol
Handheld
Mobile Computing (CE.NET)
Track 1
Track 2
Track 2
Track 3
2006-2007 Product Roadmap
Page 20

Mobile
Computers
#1 in
Scanners
Transport /
Distribution
Manufacturing
Retail   
Healthcare
RFID
Track 1
Track 2
Track 2
Track 3
Page 21

2006
2011
Track 1
Track 2
Track 3
Track 3
#1 in bar code
scanning &
imaging.
The Retail
Consumer
Connection
Company.
An end-to-end
supplier of
AutoID
equipment
3
Revenue Bridge
Page 22

The Largest-Ever rollout of
Handheld Matrix Imagers into
Retail
48,000 Focus®
Performance (read rates)
Customization (Interfaces)
Easiest with which to deal
1    Tier 1 Retailer to rollout
Stratos
7,000 Stratos®
Performance (read rates)
Customization (scale)
Easiest with which to deal
The Win
The Why
The
Importance
Track 1
Track 2
Track 3
Track 3
Page 23
st

Obtaining
information
(pre-store)
Entering,
navigating &
browsing
Making a
purchase
decision
Checking
out
Obtaining
post-sale
service
Key Steps in the Shopping Process
Track 1
Track 2
Track 3
Track 3
Page 24

Other in-store
technology
Track 1
Track 2
Track 3
Track 3
Page 25

Track 1
Track 2
Track 3
Track 3
Electronic Paper
(SiPix, E Ink,
Kodak, Dow)
TODAY
Segmented
alphanumeric or
individual icons
Flexible Electronics
Organic based or
Amorphous silicon
Patented Display /
Label
RF chip (RFID)
plus display
driver &
connections
NOVOdisplay
Page 26

Biometric
Identity and
Payment
Retail   
Government
Healthcare
Professional
Services
Price Lookup /
Kiosk
NOVOdisplay
Track 1
Track 2
Track 3
Track 3
Page 27

2006
2011
#1 in bar code
scanning &
imaging.
The Retail
Consumer
Connection
Company
A Full-line
supplier of
AutoID
Hardware.
1
2
3
Revenue Bridge
Track 1
Track 1
Track 2
Track 2
Track 3
Track 3
Page 28

Joseph Sawitsky
Executive Vice President –
Operations

New Jersey
0
300
600
900
1,200
1,500
2005
2006
2007
2008
2009
2010
2011
Suzhou
0
500
1,000
1,500
2,000
2,500
2005
2006
2007
2008
2009
2010
2011
Current Initiatives
•
Design & Operational Six Sigma
•
Design for Manufacturing
•
Automation Upgrades
•
Lean Manufacturing Upgrades
•
Supplier/Customer Partnering
•
Business Process Integration
•
IT Efficiency Investments/Upgrades
•
Integrated Logistics
Projected Staffing
Page 30

Planned New Building
Suzhou, China
New Jersey
Major Expansion Plans
Page 31
Key Statistics
Current Space:
Future Expansion:
Total:
116,000 sq. ft.
>100,000 sq. ft
>216,000 sq. ft.
Key Statistics
Manufacturing (46,000 sq. ft.)
Over 500 employees
Lean Production Lines
Low-Cost Production
Low Cost Engineering
Planned  3X Increase in Engineers
ISO 9001:2000 Certified
Current Space:
Planned Expansion:
Total:
46,000 sq. ft.
75,000 sq. ft
121,000 sq. ft.
Manufacturing (82,000 sq. ft.)
Headquarters (34,000 sq. ft.
Over 600 employees
Vertically Integrated
Fast Prototyping
Automation & Technology R&D
Planned 2X Increase in Engineers
ISO 9001:2000 Certified

0.4
0.3
0.4
0.4
0.4
0.4
0.4
0.1
0.7
0.8
1.0
1.2
1.4
0.4
0.5
0.6
0.5
0.4
0.3
0.9
0.3
0.2
0.4
0.5
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2001
2002
2003
2004
2005
2006E
2007E
2008E
Blackwood
Production 
Suzhou
Production 
Additional
Available
Capacity 
0.9
0.9
1.1
1.6
1.7
1.8
1.9
2.8
China Plant
Expanded
China Plant
Operational
Productivity
Improvement
China Plant
Planned Expansion
Manufacturing Capacity
Page 32

Suzhou, China
Blackwood, NJ, USA
Doubled size of facility in 2004
68% of 2005 volume produced in SZ
Adding 75,000 sq. ft. by 2008
China Production
Voyager®
per unit production time reduced >50%
Quantum per unit production time reduced >40%
Lean Manufacturing
Eclipse®
-
common electronics platform
-
BOM reduction of >20%
-
Production time reduced by >45%
-
FOH leveraged due to common platform
Product Redesign for Manufacture
Improvements in COGS
Page 36
Page 33

Operation’s Highlights
Capacity for Revenue Expansion
Ongoing Margin Improvements
Significant Engineering Capabilities
1
1
2
2
3
3
Page 37
Page 34

Frank C. Zirnkilton, Jr.
Executive Vice President &
Chief Administrative Officer

•
7
new products
introduced
•
First
entrée
into
RFID
market
•
Targeted expansion
of geographic presence
•
Continued market share gains
•
Success with Tier 1 Retailers
•
Record revenue
in 2005
•
Management
changes
announced
FY 2005 and Q1 2006 Highlights
Page 36

2004
2005
Q105
Q106
$178.0
$210.5
+18.3%
Revenue
+28.6%
$3.9
-21.5%
Net Income
+11.8%
2004
2005
+11.0%
w/o
SBL
$46.9
$60.2
$22.7
$25.2
$17.8
Page 37
(US $ millions)
$6.2
$4.4
+58.2%
w/o
SBL
and
123R
Please refer to the appendix for the reconciliation of the GAAP to the non-GAAP presentation.
Q105
Q106

$0
$50
$100
$150
$200
$250
2004
2005
Q106
2004
2005
Q106
Assets
Liabilities & Equity
Balance Sheet
Cash & Marketable Securities
Current Assets (non-Cash)
Net PP&E
Other LT Assets
Total Liabilities
Stockholders’
Equity
Page 38
Please refer to the appendix for the reconciliation of the GAAP to the non-GAAP presentation.
$216.4
$226.2
$192.5
$192.5
$138.0
$226.2
$216.4
$169.8
$160.3
$64.7
$60.2
$73.9
(US $ millions)
$63.4
$84.3
$91.3
$19.5
$20.4
$20.5
$44.9
$47.6
$44.4
$54.5
$65.9
$46.6

Page 39
CASH FLOW  FY 2005 - Q1 2006
(US$ Millions)
$64.7
$60.2
$15.7
($14.9)
($10.5)
$4.1
$1.1
$0
$20
$40
$60
$80
$100
12/31/04
Balance
Operating
Activities
(Excl SBL
Payment)
SBL
Payment
Investing
Activities
Financing
Activities
Exchange
Rate
3/31/06
Balance
Please refer to the appendix for the reconciliation of the GAAP to the non-GAAP presentation.

2005
* Euro Assumptions
$1.20 to $1.25
* Gross Margin
40% to 42%
* Effective full year tax rate
36%
* Effect of SFAS No. 123(R)
Est. $3M or $.13 per
fully diluted share
$210.5M
$245M -
$255M
$19M –
$21M
$0.82 -
$0.91
$17.8M
$0.77
FD EPS
Net Income
Revenue
2006 *
Earnings Guidance was effective as of the date given and will not be revised
until the Company publicly announces updated guidance.
FY2006 Guidance
Page 40

C. Harry Knowles
Chairman of the Board

•Questions?
•Adjournment
Thank You for joining us today!
Page 42

APPENDICES
GAAP to non-GAAP Reconciliation

Quarter
Year
Ended
Ended
31-Mar-06
31-Dec-05
Net Income As Reported
4,360
$           
17,813
$          
Symbol Charge
836
                
7,396
             
FAS 123 (R) Charge
988
                
-
                  
Net Income As Adjusted
6,184
$           
25,209
$          
(*) - Includes gross charge of $12,600 offset by a reduction in income tax expense of $5,204
METROLOGIC INSTRUMENTS, INC.
RECONCILIATION OF GAAP TO NON-GAAP PRESENTATION
INCOME STATEMENT
($ in Thousands)
Appendix 1

Q1
2004
2005
2006
Assets:
Cash & cash equivalents
64,715
$  
49,463
$  
33,956
$  
Marketable securities
24,475
$  
26,215
$  
Sub-total
64,715
$  
73,938
$  
60,171
$  
Other current assets
63,387
$  
84,226
$  
91,261
$  
Total current assets
128,102
$
158,164
$
151,432
$
Property, plant & equipment, net
19,468
$  
20,402
$  
20,548
$  
Other long term assets
44,957
$  
47,616
$  
44,428
$  
Total assets
192,527
$
226,182
$
216,408
$
Liabilities:
Current liabilities
44,784
$  
65,881
$  
44,090
$  
Long term liabilities
9,727
$    
11
$         
2,502
$    
Total liabilities
54,511
$  
65,892
$  
46,592
$  
Shareholders' equity
138,016
$
160,290
$
169,816
$
Total liabilities and shareholders' equity
192,527
$
226,182
$
216,408
$
METROLOGIC INSTRUMENTS, INC.
RECONCILIATION OF GAAP TO NON-GAAP PRESENTATION
BALANCE SHEET
($ in Thousands)
Appendix 2

Q1
15 Mo Ended
Running
2005
2006
3/31/2006
Balance
Beginning Balance
64,715
$    
73,938
$    
64,715
$          
64,715
$    
Operating Activities, as reported
13,727
$    
(12,904)
$   
823
$                
     Symbol payment
-
$         
14,882
$    
14,882
$          
Operating Activities, excl SBL
13,727
$    
1,978
$      
15,705
$          
80,420
$    
Symbol payment
-
$         
(14,882)
$   
(14,882)
$         
65,538
$    
Investing activities, as reported
(9,293)
$    
(2,998)
$     
(12,291)
$         
     Change in marketable securities
-
$         
(1,740)
$     
(1,740)
$           
Investing activities (excluding marketable securities)
(9,293)
$    
(1,258)
$     
(10,551)
$         
54,987
$    
     Change in marketable securities
-
$          
-
$                 
Financing activities
3,198
$      
864
$         
4,062
$            
59,049
$    
Exchange rate
1,591
$      
(469)
$        
1,122
$            
60,171
$    
Net increase/(decrease)
9,223
$      
(13,767)
$   
(4,544)
$           
Ending Balance (Cash, equivalents & marketable securities)
73,938
$    
60,171
$    
60,171
$          
METROLOGIC INSTRUMENTS, INC.
CASH FLOW
1/1/05 - 3/31/06
Appendix 3