{
  "docId": "019f6b8f-2c96-7579-a769-2e509f3e13c4",
  "docSlug": "jarvis-legion-one-span-presentation-may-2021",
  "documentTitle": "Legion One Span Presentation May 2021",
  "authorId": "legion-one-span-presentation-may-2021",
  "authorName": null,
  "documentKindSlug": "activist-deck",
  "documentKindLabel": "Activist deck",
  "sourceTypeSlug": "activist_investor",
  "sourceTypeLabel": "Activist investor",
  "presentationDate": "2021-05-01 00:00:00",
  "orientation": null,
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  "pageNumber": 47,
  "pageCount": 154,
  "prevPage": 46,
  "nextPage": 48,
  "slideType": "problem_statement",
  "function": "diagnose_problem",
  "density": "balanced",
  "nDataPoints": 1,
  "notes": "The slide uses a diagnostic approach to link operational/disclosure failures to a specific governance root cause.",
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  "imagePath": null,
  "slideHref": "/slides/019f6b8f-2c96-7579-a769-2e509f3e13c4/47",
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  "components": [
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        "h": 0.12,
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        "x": 0.09,
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      },
      "kind": "callout",
      "text": "We believe the Company's valuation issues all stem from a Board that lacks the right mix of skillsets – once stockholders fix the Board, we believe a new Board will fix the stock",
      "attrs": null,
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      "kind": "list",
      "text": "We believe the Company has low credibility with investors given recent debacles on earnings calls, including a 40% drop in the stock price in a single day following Q2 2020 earnings when the Company announced missed earnings and pulled full year guidance primarily due to Hardware weakness despite an acceleration in ARR. The declining Hardware segment is a substantial drag on consolidated financials, experiences high volatility quarter-to-quarter, and overshadows the high-growth, high-margin Software segment. Financial reporting remains confusing as Hardware and Software revenue and margins are mixed together in the GAAP income statement, making it difficult for analysts to value them separately. OneSpan Sign (\"OSS\") performance is not clearly disclosed, making it difficult to compare to public eSignature peers and precedent transactions. Few sellside analysts cover the stock and many appear unwilling to initiate coverage given the issues described above. A self-driven refresh, ignoring the input of a large stockholder, has led to insufficient modern software public company experience on the Board which we believe has manifested in poor oversight of investor communications and financial disclosures.",
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        "x": 0.11,
        "y": 0.89
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      "kind": "other",
      "text": "Source: SEC Filings, Capital IQ (as of 5/14/21), Legion Partners' Estimates",
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      "subkind": "source-note",
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      },
      "kind": "title",
      "text": "Why is OSPN Trading at a ~70% Discount to Peers?",
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      "evidence": "The slide identifies symptoms (valuation discount) and traces them to a root cause (Board composition).",
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      "beatId": "949d87d3-4d2d-49c1-8245-156aae134348",
      "arcName": "Overcoming the Monster",
      "arcSlug": "overcoming-monster",
      "beatName": "The Struggle for Change",
      "beatSlug": null,
      "evidence": "Legion presents its efforts to engage with the board and push for change",
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  "loops": [
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      "name": "Cost Of Inaction",
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      "bestFor": "Urgent budget requests, compliance, risk mitigation",
      "matchId": "6e5236e4-bdf4-45fd-9dda-e4dd2b1e57d8",
      "evidence": "Legion highlights the consequences of inaction",
      "position": 1,
      "objective": "The cost of not taking action",
      "structure": "The Status Quo -> The Hidden Costs Accumulating -> The Future State of Inaction -> The Tipping Point",
      "confidence": 0.6,
      "description": "Quantify what happens if the audience does nothing"
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