FORM 424B3

Filed Pursuant to Rule 424(b)(3)

Registration No. 333-129842

PROSPECTUS SUPPLEMENT NO. 9

To Prospectus dated May 12, 2009

Computer Software Innovations, Inc.

13,252,672 SHARES OF COMMON STOCK

This Prospectus Supplement supplements the Prospectus dated May 12, 2009, as amended and supplemented, relating to the offer and sale by the selling stockholder identified in the Prospectus of up to 13,252,672 shares of common stock of Computer Software Innovations, Inc. (the “Company”).

This Prospectus Supplement includes the Company’s Form 8-K dated April 21, 2010 filed with the Securities and Exchange Commission (the “Commission”) on April 21, 2010.

The information contained in the report included in this Prospectus Supplement is dated as of the date set forth in such report. This Prospectus Supplement should be read in conjunction with the Prospectus dated May 12, 2009, as supplemented on April 14, 2010, April 1, 2010, March 9, 2010, December 23, 2009, November 19, 2009, September 25, 2009, August 14, 2009 and May 20, 2009, which Prospectus Supplements are to be delivered with this Prospectus Supplement. This Prospectus Supplement is qualified by reference to the Prospectus except to the extent that the information in this Prospectus Supplement updates and supersedes the information contained in the Prospectus dated May 12, 2009, including any supplements or amendments thereto.

Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or determined if this prospectus is truthful or complete. Any representation to the contrary is a criminal offense.

The date of this Prospectus Supplement No. 9 is April 22, 2010.


 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of report (Date of earliest event reported) April 21, 2010

 

 

COMPUTER SOFTWARE INNOVATIONS, INC.

(Exact name of registrant as specified in its charter)

 

 

Delaware

(State or other jurisdiction of incorporation)

 

000-51758   98-0216911
(Commission File Number)   (IRS Employer Identification No.)

 

900 East Main Street, Suite T, Easley, South Carolina   29640
(Address of principal executive offices)   (Zip Code)

(864) 855-3900

(Registrant’s telephone number, including area code)

(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 (see General Instruction A.2. below):

 

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

 

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

 

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

 

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

 

 

 


Item 7.01. Regulation FD Disclosure.

Computer Software Innovations, Inc. (the “Company”) is furnishing as Exhibit 99.1 a PowerPoint presentation to be presented to interested persons. The presentation contains certain forward-looking financial information concerning the Company.

 

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.

The following exhibit is furnished as part of this report:

 

Exhibit
Number

 

Description

99.1   PowerPoint Investor Presentation (April 2010)

Forward-Looking and Cautionary Statements

This report contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Among other things, these statements relate to our financial condition, results of operations and future business plans, operations, opportunities and prospects. In addition, we and our representatives may from time to time make written or oral forward-looking statements, including statements contained in filings with the Securities and Exchange Commission and in our reports to stockholders. These forward-looking statements are generally identified by the words or phrases “may,” “could,” “should,” “expect,” “anticipate,” “plan,” “believe,” “seek,” “estimate,” “predict,” “project” or words of similar import. These forward-looking statements are based upon our current knowledge and assumptions about future events and involve risks and uncertainties that could cause our actual results, performance or achievements to be materially different from any anticipated results, prospects, performance or achievements expressed or implied by such forward-looking statements. These forward-looking statements are not guarantees of future performance. Many factors are beyond our ability to control or predict. You are accordingly cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date that we make them. We do not undertake to update any forward-looking statement that may be made from time to time by or on our behalf.

In our most recent Form 10-K, we have included risk factors and uncertainties that might cause differences between anticipated and actual future results. We have attempted to identify, in context, some of the factors that we currently believe may cause actual future experience and results to differ from our current expectations regarding the relevant matter or subject area. The operations and results of our software and systems integration businesses also may be subject to the effects of other risks and uncertainties, including, but not limited to:

 

   

a reduction in anticipated sales;

 

   

an inability to perform customer contracts at anticipated cost levels;

 

   

our ability to otherwise meet the operating goals established by our business plan;

 

   

market acceptance of our new software, technology and services offerings;

 

   

an economic downturn; and

 

   

changes in the competitive marketplace and/or customer requirements.


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.

 

COMPUTER SOFTWARE INNOVATIONS, INC.

By:

 

/s/    DAVID B. DECHANT

  David B. Dechant
  Chief Financial Officer

Dated: April 21, 2010


EXHIBIT INDEX

 

Exhibit
Number

 

Description

99.1   PowerPoint Investor Presentation (April 2010)


Computer Software Innovations, Inc.
OTC BB: CSWI
Investor Presentation
April 2010
1
Exhibit 99.1


Safe Harbor
2
This presentation contains “forward-looking statements” – that is, statements related to future, not
past, events. In this context, forward looking statements often address our expected future business
and financial performance, and often contain words such as “may,” “could,” “should,” “expect,”
“believe,” “seek,” “estimate,” “predict,” or “project.” Forward-looking statements by their nature
address matters that are, to different degrees, uncertain. For us, particular uncertainties arise from
economic health of the software and technology industry, demand for CSI’s products and engineering
services, competitive pricing pressures and the availability of necessary financing. In addition, other
risks are more fully described in CSI’s Form 10-K and other filings with the Securities and Exchange
Commission. These uncertainties may cause our actual results to be materially different from those
expressed in our forward-looking statements. We do not undertake to update our forward-looking
statements.


CSI, Inc. Overview
OTCBB:CSWI
Headquarters:
Easley, SC
215 Employees
4 offices
Provider of software and technology solutions to education
and local government markets
Customer base: 800+ K-12 school districts,
colleges/universities, city/county governments, non-profit
organizations
Software Applications Segment
Financial Management Software
Version3 Identity Life Cycle Management
CSI@K12 Communications and Collaboration Solutions
Technology Solutions Segment
21
st
Century
Connected
Classroom
Convergence Applications –
IP telephony, surveillance, video
Network Infrastructure & end-devices
Infrastructure Management –
monitoring, performance,
maintenance
3


Increase Customer Base In Existing Markets
Leverage Current Solution Portfolio:
Sell CSI Solutions To Customers Gained In Acquisitions
Cross-Sell Existing Customers
Continue Expanding Geographic Footprint Organically and by
Acquisitions
Expand Intellectual Property Portfolio through
Organic Product Development, including cloud-based solutions
Acquisitions
Potential to more than double EBITDA in next 5 years
Growth Drivers
4


600 customers in 8 southeastern states
Strong Gross Margins
>50% Recurring Revenue
Solutions
Include:
Financial
Management,
Billing
and
Revenue
Management,
Payroll/Human Resources, School Activity Accounting, eGov, Document Services
Type of Customers                                                Growth by Acquisitions
Financial Management Software
5


Customers throughout US as well as Canada and UK
Customers
include
some
of
the
US’s
largest
school
districts
Solutions Include:
Version3 Identify Life Cycle
Management
6


Version3 Identify Life Cycle
Management
Provisioning
Active Directory
(or other directories)
Exchange
(Other email systems)
CSI@K12
Home Folders
E-Portfolio / Archive
Applications –
Local /
Hosted
Orchard, PlatoWeb, Destiny,
etc
(API Support) (Supports SIF)
Scheduled
Event
Authoritative
Source
SIS or
HR
Systems
Cloud
Computing


Developed in partnership with Microsoft and based on Live@edu, a
hosted email solution for education market
Provides a cloud-based instructional communications management
solution
Manages regulatory compliance and security standards for K-12 email
Integrates a portal experience for educators, students and parents
Provides access to email, homework and class tasks, network files
Funded through federal E-rate program
Expect significant revenue growth from this solution in late 2011-
2012
CSI@K12 Communication and
Collaboration Solution
8


School rooms with
Internet
access
1
1994: 3%
2005: 93%
Public schools providing
handheld computers to
students
or
teachers
1
2003: 10%
2005: 19%
K12
enrollment
in
South
region  projected to
grow 17% through 2016
highest growth in the
country
1
U.S. has highest
growth rate
for interactive
white
boards
2
55% in 2007
9
1
Source: Dept. of Education-
Nat’l Center for Education Statistics
2
Source: Decision Tree Consulting 2008 Study
21
st
Century
Connected
Classroom


Cross-Sell Existing
Customers
10
Technology Solutions
Network
Infrastructure &
End-Devices
Connected
Classroom
Infrastructure
Management
Convergence
Applications


Grow via continued expansion into new geographies
Total
U.S.
11
Nationwide Prospects
CSI
Core Markets
3,100 County Governments
36,000 City Governments
14,000 School Districts
Total
U.S.
1
Source: Dept of Census
2
Source: National League of Cities
3
Source: Dept. of Education
-
National Center for Education Statistics
3
2
1


Summary of Capitalization as of 4.15.10
Common Shares Outstanding
7.0 M
F/D Shares Outstanding
13.7 M
Full Potential Diluted
14.2 M
52 Wk Trading Range
$ 0.40 -
$1.15
Current Share Price
$ 0.68
Current Market Cap
$ 4.8 M
Management/Board/Insider Ownership                 
4.0 Million Shares
= 57% of Common
outstanding
; 28% outstanding shares
(common & preferred)
Select Financials
12
Key Statistics -
Dec 31, 2009
Fiscal Year Ends
Dec 31
EPS (Fully Diluted) 2009
$ 0.02
Revenue FY 2009
$ 51.8 M
EPS (Fully Diluted) 2008
$ 0.11
Revenue TTM
$ 51.8 M
Total Assets
$ 18.8 M
EBITDA
FY 2009
$ 3.5 M
Total Debt   With Sub-Debt
$ 2.4 M
EBITDA
FY 2008
$ 5.1 M
Without Sub-Debt
$ 0.6 M
3
EBITDA is a non-GAAP financial measure. See reconciliation to GAAP measure provided in our Earnings Release for
our
year
ended
12/31/2009
at
www.csioutfitters.com.
2
TTM: Trailing Twelve Months is a sum of the past 12 month timeframe.
1
Common shares outstanding includes 0.5 M shares held in trust related to Version3 acquisition.
2
3
3
1
1


Select Financials
($ in millions)
13
Revenues and Gross Profit
5-Year Trend


14
Select Financials
Operating Income , Net Income , EBITDA  & Cash Provided by (Used
for)
Operations     5-Year Trend
($ in Millions)
1
EBITDA is a non-GAAP financial measure. See reconciliation to GAAP measure in our earnings release for our year ended     
12/31/2009 at www.csioutfitters.com.
Operating Income and Net Income have declined more than EBITDA due to
increased Amortization from Intangible Acquisitions.  New product developing and acquired from Acquisitions provides the
potential to double EBITDA over the next 5 years, over 2008 levels.
1
1
1


Select Financials
15
Balance Sheet 3-Year Trend
1
Includes deferred revenue, such as revenue from recurring support agreements.
($ in Millions)


Nancy K. Hedrick
CEO & President
30 yrs in IT
President of CSI since 1989
Thomas P. Clinton
Sr. VP of Strategic Partnerships
25 yrs in IT
VP at CSI since 1999
David Dechant, CPA
Chief Financial Officer
25 yrs in Finance
(including Conso Int’l Corp & Warner-Lambert)
CFO at CSI since 2005
Beverly N. Hawkins
Sr. VP of Product Development
24 yrs in IT
VP of CSI since 1989
William J. Buchanan
Sr. VP of Delivery & Support
25 yrs in IT
VP at CSI since 1999
Senior Management Team
16


Advantages of business model
Strong gross margins
Recurring revenue stream
Proprietary software solutions and diversity of our offerings
Focused on public sector markets with continuous budgets
Positioned for continued growth
Strategic investments in new products and enhanced offerings
Customer base growth in existing markets
Leverage solution portfolio with newly acquired and existing customers
Continue expanding into new geographies
Investment Summary
17


Company Contact
David Dechant, CFO
ddechant@csioutfitters.com
Telephone: 864.855.3900
Company
Website:
www.csioutfitters.com
Investor Contact
DC Consulting, LLC
Daniel Conway
daniel@dcconsultingllc.com
Telephone: 407.792.3332
18
Contact Us
OTC BB: CSWI