Sales Strategy. Todd Swanson, Senior Vice President. Communication Solutions for Tomorrow's Networks. Communication Solutions for Tomorrow's Networks

Transcription

1 Sales Strategy Todd Swanson, Senior Vice President Communication Solutions for Tomorrow's Networks Communication Solutions for Tomorrow's Networks 1

2 Financial Presentation and Forward Looking Statements Forward Looking Statements This presentation contains forward-looking statements as defined under the Private Securities Litigation Act of Except for historical information, the matters discussed in this presentation contain forward-looking statements regarding future trends or events that involve risks and uncertainties. Please be aware that these statements are only predictions and that actual events or results may differ materially. Please refer to the Company s Form 10-K and other interim reports as filed with the Securities and Exchange Commission for a discussion of those risk factors. The Company assumes no obligation to update the information in this presentation. GAAP Reconciliation References to financial measures in this presentation include references to non-gaap financial measures. Finisar provides additional information regarding these non-gaap financial measures and a complete reconciliation between GAAP and non-gaap financial information for the periods included in this presentation (including with respect to the Optium fiscal fourth quarter ended August 2, 2008) in the Finisar earnings releases dated September 8, 2008, June 30, 2008 and June 12, 2007 and related materials located in the investor relations section of the company s web site. Investors should note that (i) the Optium non-gaap financial measures included in the September 8, 2008 earnings releases are calculated differently than and, therefore, are not necessarily comparable to similarly-titled Finisar non-gaap financial measures and (ii) for periods following the Finisar-Optium merger, certain historical accounting policies for both companies, including the presentation of non-gaap financial measures, will be changed in order to achieve consistency.

3 Agenda Products Customers Worldwide Team Market Segments: Drivers, Size, Share and Growth Opportunities ROADM Video Summary 3

4 Finisar Optical Products Broadest Line in the Industry OSA Interleaver WDM passives WDM passives CML laser CML laser Active Cable Active Cable GBIC SFP SFP+ XFP X2/XENPAK 300-pin Analog CATV WSS ROADM line card ROADM line card 4

5 Industry s Broadest Product Portfolio SFP/ SFP+ XFP XAUI 10G Line Side 300- pin Tunable 40G Client Side 300- pin 40G Line Side 300- pin Tunable 100 GHz ROADM 50 GHz ROADM FTTx CATV Passives Parallel Active Serial Cables Finisar JDSU OpNext Emcore Avanex OpLink Sumitomo/Excelight Bookham Avago CoAdna Mintera 5

6 Our Customers SAN LAN Telecom SAN and LAN 6

7 Our WW Sales Team Direct Sales ( 27 total ) Distributors ( 16 total ) Reps ( 17 total ) 7

8 WW Market Share Transceivers/Transponders CY 2007 revenue by vendor - SONET/SDH, Ethernet, Fibre Channel, WDM, Parallel and FTTx Emcore 5% Other 19% Finisar* 24% Finisar 24% and 36% by volume Oplink 5% Opnext 11% Source 8% JDSU 8% Sumitomo 10% Avago 10% *Post-merger Finisar *Post-merger Finisar Source: Lightcounting 2008, Ovum-RHK 2008, SEC filings, internal estimates 8

9 Total Market Size $3,500 $3,000 Sales ($M) $2,500 $2,000 $1,500 $1,000 Access ROADMs Telecom-WDM Telecom-SONET SAN (Fibre Channel) LAN (Ethernet) $500 $ Total Market Size in CY07 = $2.3B, CY11=$3.2B CAGR (CY07-11) = 9% Source: Lightcounting,

10 Storage Area Networking (SAN) FIBRE CHANNEL SAN Tape Drive RAID System Intercampus ISL SFP/+ FC Switch SFP/+ SFF HBA LAN SFP+ SFP/GBIC Copper ETHERNET Ethernet Switch NIC Card Server Data Center Metro Metro Ethernet Link (<80 km) SFP/SFF SFP+ XFP XPAK ETHERNET TDM/CWDM/DWDM Ethernet Switch GBIC SFP/SFP+ XFP X2 XENPAK 10

11 SAN Storage Area Networking (Fibre Channel) Market Drivers World-wide storage capacity growth of 63% y/y driven primarily by video applications Virtualization (fewer servers, higher data rates, more connections per server) Industry transition from 4G to 8G Drive to 16G in 2011 Market Metrics Total TAM in 07 = ~$216M (including longer-distance metro links) CAGR ( 07 to 11) = 7% Up to 2 Gbps Up to 4 Gbps Up to 8 Gbps Up to 16 Gbps Sales ($M ) Source: Lightcounting,

12 SAN Storage Area Networking (Fibre Channel) Growth Strategies Maintain leadership position in 4G/8G Develop next generation 8G transceivers for short and long reach applications Be first to market with 16G products early 2010 Market Position Finisar Market Share 4G: 55% 8G: 60% Finisar growth > market $300 $250 Sales ($M) $200 $150 $100 Addressed $50 $ Source: Lightcounting,

13 Local Area Networking (LAN) FIBRE CHANNEL SAN Tape Drive RAID System Intercampus ISL SFP/+ FC Switch SFP/+ SFF HBA LAN Router ETHERNET Ethernet Switch NIC Card Server Data Center Metro Metro Ethernet Link (<80 km) SFP/SFF SFP+ XFP XPAK ETHERNET TDM/CWDM/DWDM Ethernet Switch GBIC SFP/SFP+ XFP X2 XENPAK 13

14 LAN Local Area Networking (Ethernet) Market Drivers Data center consolidation/green Initiatives Virtualization, Data Center Ethernet, FCoE Need for high density 10G SFP+ Optics High end servers driving 10G NIC card market Adoption of 40/100GigE in 2010 Market Metrics Total TAM in 07 = ~$668M (including longer-distance metro links) CAGR ( 07 to 11) = 7% Fast Ethernet GigE 1 GigE 10 GigE 40 GigE 100 Parallel $1,000.0 $800.0 Sales ($M) $600.0 $400.0 $200.0 $ Source: Lightcounting,

15 LAN Local Area Networking (Ethernet) Growth Strategies Penetrate unaddressed 10G markets (XAUI) Develop full portfolio of SFP+ Execute with Laserwire product family including parallel 40/100G Lead market with solutions for 40GE/100GE 100m/10/40km applications Market Position Finisar Market Share: 1GE: 36% 10GE: 19% Enter New Markets 10G Xaui = ~$147M Parallel =~$68M Finisar growth > market $1,400 $1,200 $1,000 Sales ($M) $800 $600 Unaddressed (Xaui) Unaddressed (Parallel) Addressed $400 $200 $ Source: Lightcounting,

16 Telecom SONET/SDH ACCESS (Up to 100 km) Commercial Complex Fiber to the Home SFP Cable TV METRO-REGIONAL ( km) Campus Wireless XFP 10G 300 PIN LONG-HAUL ( km) 40G 300-PIN 16

17 Telecom SONET/SDH Market Drivers Deployments of SONET/SDH - emerging markets and legacy networks Mobile backhaul (proliferation of mobile video) Need for next generation SFPs with industrial temp and ROHS 6 for <=2.5G Transition from 300pin to pluggable form factors Very strong growth of 40G Market Metrics Total TAM 07 = ~$524M (excl WDM) CAGR ( 07 to 11) = -3% Growth in IP vs. SONET Growth in WDM (not included) Sales ($M) $600.0 $500.0 $400.0 $300.0 $200.0 $100.0 $- OC-3/OC-12 OC-48 OC-192 OC Source: Lightcounting,

18 Telecom SONET/SDH Growth Strategies Gain market share in all segments Continue cost reductions of SFP s (Ind. Temp. and ROHS6) Release Ind. Temp. long reach XFP s up to 200km Develop full portfolio of SFP+ modules up to 80km Maintain leadership with small size 40G client side short reach and long reach transponders Market Position Finisar Market Share OC-3/12: 8% OC-48: 17% OC-192: 33% OC-768: 30% Finisar growth > market $600 $500 Sales ($M) $400 $300 $200 Unaddressed (300pin) Addressed $100 $ Source: Lightcounting,

19 Telecom WDM ACCESS (Up to 100 km) Commercial Complex Fiber to the Home SFP Cable TV METRO-REGIONAL ( km) Campus Wireless DWDM XFP 10G Tunable 300 PIN LONG-HAUL ( km) 40G Tunable 300-PIN 19

20 Telecom WDM Market Drivers Deployment of IP based WDM systems for Metro and Long Haul replacing SONET/SDH Driven by Video, Wireless, FTTx Need for all Optical Tunable networks to reduce OpEx Transition to pluggable modules XFP, CFP Strong growth of 10G DWDM Need for 40G DWDM line side modules Market Metrics Total TAM 07 = ~$352M CAGR ( 07 to 11) = 21% CWDM DWDM - Up to 4 Gbps DWDM - 10 Gbps DWDM - 40 Gbps Sales ($M) $800 $700 $600 $500 $400 $300 $200 $100 $ Source: Lightcounting,

21 Telecom WDM Growth Strategies Gain market share in all segments Next generations 5G C/DWDM SFP s Cost reduce 10G 300pin tunable, develop low-profile modules Develop pluggable tunable XFP-E & XFP modules Maintain leadership in 40G DPSK and DQPSK line side modules Lead the 100G line side module market Market Position Finisar Market Share <5G CWDM 35% <5G DWDM: 11% 10G DWDM: 25% Finisar growth > market $800 $700 $600 Sales ($M) $500 $400 $300 Unaddressed (300pin) Addressed $200 $100 $ Source: Lightcounting,

22 10/40/100G All Markets Importance of 10/40/100G is very clear Represents ~50% of the market in 2011 $1,800 $1,600 $1,400 $1,200 Sales ($M) $1,000 $800 $600 $ G 40G 10G $200 $ Source: Lightcounting,

23 Telecom Access Fiber to the Home Commercial Complex ACCESS (Up to 100 km) Cable TV Campus Wireless METRO-REGIONAL ( km) SFF CATV LONG-HAUL ( km) 23

24 Access CATV, FTTx (PON) Market Drivers Carriers and MSO competition in the last mile New network build outs of analog and digital IP networks Due to video, wireless, data Rapid GPON growth worldwide Market Metrics Total TAM 07 = ~$359M CAGR ( 07 to 11) = 11% GPON, EPON, Next Gen PON CATV Sales ($M) Source: Lightcounting,

25 Access CATV, FTTx (PON) Growth Strategies New lower cost CATV products to increase share Ship production SFF GPON OLT/ONU volumes Develop SFP FTTx GPON modules Lead next generation PON 10G or WDM Market Position Finisar Market Share CATV 35% Finisar growth > market $600 $500 Sales ($M) $400 $300 $200 Unaddressed-CATV Unaddressed-PON Addressed-CATV Addressed-PON $100 $ Source: Lightcounting,

26 Telecom ROADM (WSS) ACCESS (Up to 100 km) Commercial Complex Campus METRO-REGIONAL ( km) Wireless WSS Line Card LONG-HAUL ( km) 26

27 video: ROADMs

28 ROADM (WSS) Market Drivers Flexibility in the core and access for telecom networks Tunable all optical networks to reduce OpEx Future proof network for 40G/100G Outsourcing of R&D drives line card sales Market Metrics Total TAM 07 = ~$85M CAGR ( 07 to 11) = 34% ROADMs Sales ($M) Source: Lightcounting,

29 ROADM (WSS) Growth Strategies Continue to lead the market for 50Ghz, mixed channel plan, and D&C Gain share in 100Ghz space Capitalize on lead in 1x2 Access market Develop higher port count products as needed Market Position Finisar market share = 25% Finisar growth > market $300 $250 Sales ($M) $200 $150 $100 Unaddressed Addressed $50 $ Source: Ovum RHK,

30 Summary Industry leading product portfolio focused in high growth markets Extremely well positioned to gain share in existing markets and penetrate new markets (XAUI/PON/Parallel) Our revenue growth will outpace the growth of the overall market 30

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