Rule424 (b) (3) Filing

PROSPECTUS SUPPLEMENT NO. 3

    Filed Pursuant to Rule 424(b)(3)

To Prospectus dated May 14, 2007

    Registration No. 333-129842

Computer Software Innovations, Inc.

14,435,472 SHARES OF COMMON STOCK

This Prospectus Supplement supplements the Prospectus dated May 14, 2007, as amended and supplemented, relating to the offer and sale by the selling stockholder identified in the Prospectus of up to 14,435,472 shares of common stock of Computer Software Innovations, Inc. (the “Company”).

This Prospectus Supplement includes the Company’s Form 8-K filed with the Securities and Exchange Commission on June 27, 2007.

The information contained in the report included in this Prospectus Supplement is dated as of the period of such report. This Prospectus Supplement should be read in conjunction with the Prospectus dated May 14, 2007, as supplemented on May 25, 2007 and June 1, 2007, which 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 14, 2007, 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. 3 is June 27, 2007.



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) June 27, 2007

 


COMPUTER SOFTWARE

INNOVATIONS, INC.

(Exact Name of Registrant as Specified in 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 in meetings with various interested persons. The presentation contains certain forward-looking financial information concerning the Company.

 

Item 9.01. Financial Statements and Exhibits.

 

  (c) Exhibits.

The following exhibit is furnished as part of this report:

 

Exhibit
Number
  

Description

Exhibit 99.1   

PowerPoint Presentation (June 27, 2007)


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

  Name:   David B. Dechant
  Title:   Chief Financial Officer
   

Date: June 27, 2007


EXHIBIT INDEX

 

Exhibit
Number
  

Description

Exhibit 99.1   

PowerPoint Presentation (June 27, 2007)


Computer Software Innovations, Inc.
OTCBB:  CSWI.OB
June 2007
Distribution
Exhibit 99.1


Safe Harbor
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 the 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
2006
Form 10-KSB 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.


Highlights
Horizontal Growth
Business Model Easily Scalable and Replicable to Other Regions
$28M business in 3 State Territory, Expanded to projected $38M to
$40M+ business in 8 State Territory following January 2007 Acquisition
(est. for year ending 2007).
Competitive Proprietary Software
Vertical Growth
Loyal Customer Base –
Software Client Retention Rate > 90%
Additional Technology Solution Sell-Through
Financial Strengths
Strong Gross Margins (Software = 47.2%  Technology = 13.9%)
Recurring Revenues
Public Sector –
Good Collection History & Ongoing Technology Budgets
Historically profitable up to “Going Public”
(2005). Projected return to
profitability in
2007
primarily
as
costs
related
to
going
public
normalize.
(Q2 ‘07 est. >$12M and profitable.)


Company Overview
Computer Software Innovations, Inc. (OTCBB:CSWI), CSI: Technology
Outfitters™, is a full service company providing software and technology solutions
primarily to public sector organizations.
The software
solutions
include
financial
management,
billing
and
revenue
management, school activity accounting, lesson planning and automated
workflow.
The technology solutions include IP telephony, IP video surveillance, visual
communications, interactive classrooms, network security and traffic monitoring,
infrastructure design, wireless solutions, network management, engineering
services, disaster recovery and hardware solutions.
CSI's client base includes school districts, higher education, municipalities,
county governments, and other non-profit organizations. Currently, more than 600
public sector organizations utilize CSI's software systems and network integration
services.


Company History
Founded in 1989 in Easley, SC
Financial Management
Software
1989
Released CSI
Accounting+Plus
(Microsoft
Windows
platform)
-
1999
Released SmartFusion (Microsoft.Net/SQL platform) 2007
Technology Division added in 1999
Computer &
Network
Hardware
1999
IP Telephony –
2001
IP Surveillance –
2003
Interactive
Whiteboards
2003
Classroom
Audio
Augmentation
2004
Network Security –
2005
Storage
and
Disaster
Recovery
2006
Reverse merger in 2005 created publicly traded CSWI
Acquisition of McAleer Computer Associates –
Jan, 2007


Select Financials
Current Market Cap: $3.57 Million
Management/Board Ownership                     
2.17 Million Shares  or 61% of
Common outstanding; 20%
outstanding shares (common &
preferred)
Common Shares Outstanding:    3.54 M
F/D Shares Outstanding:            14.5 M
Full Potential Diluted:               17.9 M
Estimated Public Float                320K
Summary of Capitalization
$5.7M
Total Current
Assets
$35.36M
2006 Revenues
(trailing twelve months)
Key Statistics as of 3/31/07 (except share price data)
$1.01
Current Share
Price (06/21/07)
December 31
Fiscal Year Ends
$8.0M (w/sub debt)
$4.8M (w/o sub debt)
Total Debt
$.75 -
$1.80
52 Week Trading Range
(thru 6/21/07):
$12.5M
Total Assets
$11.65M
3 Mos
2007 Revenues


Senior Management Team –
Management Ownership = 59% outstanding common shares; 19% outstanding
shares (common & preferred)
Nancy K. Hedrick
CEO & President
27 Yrs in IT Field
President of CSI since 1989
Thomas P. Clinton
Sr. Vice President of Strategic Partnerships
22 Yrs in IT Field
(including The Computer Group & IKON)
VP at CSI since 1999
David Dechant, CPA
Chief Financial Officer
22 Yrs in Finance
(including Conso
Int’l Corp & Warner-Lambert)
CFO at CSI since 2005
Beverly N. Hawkins
Sr. Vice President of Product Development
21 Yrs in IT Field
VP of CSI since 1989
William J. Buchanan
Sr. Vice President of Delivery & Support
22 Yrs in IT Field
(including The Computer Group & IKON)
VP at CSI since 1999


Company Awards and Recognitions
2004, 2005, 2006 & 2007 VAR Business 500
2005 Government VAR 100
2004 VAR Business 50 Fastest Growing Technology Companies
2004 VAR Business Technology Innovator Award-Application Development
2003 CRN Top 5 Rising Stars
2002, 2003, 2004 SC Fastest Growing Companies Award
2003 Ingram Micro National Fastest Growing K-12 Sector
2002 Ingram Micro Southeast Region Fastest Growing K-12 Sector


Horizontal Growth –
Expansion with January, 2007 Acquisition


County Government
3,100 County Governments 
Municipal/City Government
36,000 Municipalities/City
Governments
School Districts
14,000 School Districts
Horizontal Growth -
US Target Markets
1
2
3
1. Per U.S. Dept of Census
2. Per National League of Cities
3. Per National Center for Education Statistics


Horizontal Growth -
Organic & Acquisition Strategy
Replicate business model into other
regions with CSI sales force or
through acquisition
Target companies with
complimentary products and/or
complimentary footprint


Horizontal Growth -
Competitive Proprietary Software
Products
-
Accounting+Plus/Smart Fusion/NextGen
-
28 Different Modules
-
Curriculator
Our People -
Our Experience:
-
Financial Management Software Expertise
-
K12 and Local Government Experience
Competitive with Nationally Marketed
Products
Software Client Retention >90%
“An outfitter’s job is to equip the person or organization with the tools to become successful.”
Ledger
Budget
Preparation
Audit
Reporting
Claims
Reimburse-
ment
Purchasing
Accounts
Payable
Inventory
Fixed Assets
Accounts
Receivable
Check
Reconciliation
Payroll
Insurance &
Benefits
Absent
Employee
Personnel
Cost
Allocation
Hospitality
Fees
Business
License
Construction
Permits
Cash
Collections
Cash
Drawer
Interface
Utility Billing
Property Tax
Collection
Handheld
Interface
Utility
Billing Work
Orders
Available
Subs
Applicant
Tracking
Warehouse
Requisitions
Food Service
Reporting


Vertical Growth
-
The
Total Technology Solution Outfitters


Vertical Growth -
Technology Solutions
Interactive Classroom Technologies
Interactive Whiteboards
Interactive Assessment and Selection Device
Classroom Audio Augmentation
Consulting Services
Project Management
Deployment Services
Network Services and Converged Technologies
Analysis
Design
Integration
Implementation
Support Services
Hardware
Network
Convergence
Certified Reseller for Cisco, HP and other major vendors


Financial Strengths
Strong Gross Margins
Software = 47.2%
Technology = 13.9%
Recurring Revenue
Approximately 50% of Software Revenues
Increased Emphasis on Technology Support Contracts
Advantages of Public Sector Focus
Good Collection History
Little bad debt write-offs
Ongoing Technology Budgets


($2,449)
($430)
$285
Net income (loss)
$1,390
$3,085
$957
$376
Reverse Merger, Acquisition
& Compliance Related Costs
Warrant Loss
($1,050)
($527)
$580
Operating income (loss)
$1,158
$1,504
$2,533
Gross profit
$4,092
$4,842
$11,652
Net sales
Quarter Ending
03-31-06
Quarter Ending
03-31-07
Quarter Ending
03-31-05
Income Statement Data
(in thousands)
$3,750
$2,642
$4,837
Total Interest Bearing Debt
($7,667)
($340)
$273
Stockholder’s Equity (Deficit)
$14,623
$6,703
$12,269
Total Liabilities
$12,373
$6,387
$11,261
Current Liabilities
$6,956
$6,632
$12,542
Total Assets
$5,906
$4,624
$5,697
Current Assets
Quarter Ending
03-31-06
Quarter Ending
03-31-07
Quarter Ending
03-31-05
Balance Sheet Data
(in thousands)
Historical Financials


($756)
($880)
$285
Net income (loss)
$2,371
$414
$1,703
$329
$376
Reverse Merger, Acquisition
& Compliance Related Costs
Warrant Loss
($186)
($243)
$580
Operating income (loss)
$6,546
$6,373
$2,533
Gross profit
$24,287
$28,554
$11,652
Net sales
Year Ending
12-31-06
Quarter Ending
03-31-07
Year Ending
12-31-05
Income Statement Data
(in thousands)
$3,951
$2,565
$4,837
Total Interest Bearing Debt
($525)
($104)
$273
Stockholder’s Equity (Deficit)
$8,098
$9,564
$12,269
Total Liabilities
$8,098
$9,359
$11,261
Current Liabilities
$7,574
$9,460
$12,542
Total Assets
$6,156
$6,497
$5,697
Current Assets
Year End
12-31-06
Quarter End
03-31-07
Year End
12-31-05
Balance Sheet Data
(in thousands)
Historical Financials


Key Highlights!
Diverse product offerings targeting schools, governments and small business
Representing
a
more
than
$9B
Market
Opportunity
in
the
U.S.
Strong Horizontal Growth Potential
Business Model Easily Scalable and Replicable to Other Regions
$28M
business
in
3
States
expanded
to
projected
’07
$38M
to
$40M+
in
8
States
Model Easily Replicated for Rapid Territory Expansion
Market Competitive Proprietary Software Applications
Excellent Vertical Growth Opportunities
Loyal Customer Base –
Software Client Retention Rate Greater than 90%
Additional Technology Solution Sell-Through
Leveraging Relationships for Cross Selling
Financial Strengths
Strong Gross Margins (Software = 47.2%  Technology = 13.9%)
Recurring Revenue Model for Engineering Services and Software Updates
Public Sector = Good Collection History & Ongoing Technology Budgets
Historically profitable
up
to
“Going
Public”
(2005).
Projected
return
to
profitability
in
2007
primarily as costs related to going public normalize. (Q2 ‘07 est.>$12M and profitable.)
*
* per IDC, a subsidiary of International Data Group, Inc. (the parent company of IDG News Service)


Company Contact
David Dechant, CFO
ddechant@csioutfitters.com
864.855.3900
Investor Contact
Alliance Advisors, LLC
Mark McPartland
markmcp@allianceadvisors.net
910.221.1827