Corporate Presentation. November 2017

Transcription

1 Corporate Presentation November 2017

2 Disclaimers Certain statements contained in this presentation constitute forward-looking statements. All statements other than statements of historical fact contained in this presentation, including, without limitation, those regarding the market opportunity of the Company s products, capabilities of the Company s products, Company s future financial position and results of operations, strategy, plans, objectives, goals and targets, and any statements preceded by, followed by or that include the words believe, expect, aim, intend, plan, continue, will, may, would, anticipate, estimate, forecast, predict, project, seek, should or similar expressions or the negative thereof, are forward-looking statements. These statements are not historical facts but instead represent only the Company s expectations, estimates and projections regarding future events. These statements are not guarantees of future performance and involve assumptions, risks and uncertainties that are difficult to predict. Therefore, actual results may differ materially from what is expressed, implied or forecasted in such forward-looking statements. Additional factors that could cause actual results, performance or achievements to differ materially include, but are not limited to the risk factors discussed in the Company s annual MD&A for the year ended December 31, 2016 which is available at Management provides forward-looking statements because it believes they provide useful information to investors when considering their investment objectives and cautions investors not to place undue reliance on forward-looking information. Consequently, all of the forward-looking statements made in this presentation are qualified by these cautionary statements and other cautionary statements or factors contained herein, and there can be no assurance that the actual results or developments will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, the Company. These forward-looking statements are made as of the date of this presentation and the Company assumes no obligation to update or revise them to reflect subsequent information, events or circumstances or otherwise, except as required by law. Cautionary Note Regarding United States Securities Laws This presentation does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the securities of the Spectra7 Microsystems Inc., in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction. The securities of Spectra7 Microsystems Inc. have not been and will not be registered under the United States Securities Act of 1933, as amended (the U.S. Securities Act ), or any state securities laws and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons, as such term is defined in Regulations under the U.S. Securities Act, unless an exemption from such registration is available 2

3 Spectra7 Overview High performance analog semiconductor company targeting high value, high growth markets with patented advanced signal processing technology Headquartered in San Jose, California. Spectra7 makes electronic products smaller, lighter, and faster. 1 Ultra-thin and light-weight interconnect. From 4 bulky data, audio, power & video cables. Spectra7 delivers the performance of optical networking using low- cost, low-power active copper cable solutions. 3

4 Share Structure and Key Statistics Listed as SEV Share Price $ 0.41 CAD* Market capitalization $ 66.6M CAD* TTM revenue (00/30/17) $ 8.7 M TTM gross margin (09/30/17) 59% Insider ownership 4.5% Est. Shares % Common shares issued 163 M 100 *As of 09/30/17 Market Close See disclaimers on slide 2 4

5 Investment Highlights I Focused, targeted go-to-market strategies fuelling business momentum II New transformative design win pipeline with industry leaders in AR/VR/MR III Encouraging market acceptance and testing of Data Center products IV Growing Visibility in the AR / VR / MR Space V Operational efficiency programs supporting improved margin performance See cau:onary notes on page 2 5

6 Spectra7 Team Raouf Halim CEO CEO icclarity CEO Mindspeed Technologies 32 Years Experience Dr. Andrew Kim CTO & VP,ENGINEERING 20 Years Experience: Samsung, Intersil Darren Ma CFO 15 Years Experience in Finance Intel, Semtech, GigPeak John Mitchell CHIEF MARKETING OFFICER 20 years of Product Marke:ng: Intersil, Quellan Gerald Hamilton SENIOR VP, WORLDWIDE SALES 27 Years Semiconductor Experience: Mindspeed, icclarity Antony Ng Yukshing Ebrahim Abunasrah VP, OPERATIONS VP, INTERCONNECT PRODUCT 23 years Semiconductor Engineering GROUP Cypress, Marvell 10 years Product Development Molex 6

7 The Leader in Active Copper Cable Technology High Gross Margin / Single Sourced / Secured by over 50 Patents 7

8 Spectra7 Target Markets: High Value, High Growth, Disruptive Technologies Virtual Reality $6 billion by D gaming- Immersive Content -VR social platforms Augmented/ Mixed Reality $42 billion by Workplace collaboration-virtual desktop Increased productivity- Job training Data Center $4 billion market in Data Center Market Drivers Cloud data storage- Real time streaming analytics 1-Estimated Hardware Revenue from Digi Capital(2016) 2- Gartner (2016) 8

9 VR Market Opportunity: 99% CAGR ( 15-20) Global Virtual & Augmented/ Mixed Reality Head-Mounted Display Shipments VR 1 AR/MR 2 See disclaimers on slide 2 1-BI Intelligence: The virtual Reality Content Report (2015) 2-AugmentedReality.org:Smart Glasses Market Report (2015) 9

10 New Design Driving Growth: DreamWeVR Spectra7 s 4 new chips featuring SpectraLinear technology enabling AR, VR, and MR devices to drive resolutions of 4K / 5K with low latency over an ultra-thin unified interconnect. Potential Applications for Spectra7 s ultra-thin wearable interconnects: UHD Video Data Control Gesture recognition Up to 50 Gbps Gyro interface 10

11 Significant AR/VR/MR Customer & Market Demand 1 FACEBOOK SONY APPLE LG HTC TENCENT SAMSUNG GOOGLE MICROSOFT ACER DELL LENOVO 1-Digi-Capital- The reality of AR.VR business models -April

12 Mixed Reality Design Partner & Customer Microsoft Reference MR Design Developer Kits shipped $299 retail price point Windows 10 Bundles with PC OEM laptops this holiday season (2017) First Head Mounted Display HMD enabled by Spectra7 Active Cable on display at GDC in March 2017 Growing Roster of Customer Partners 12

13 Poised to Enter Data Center Market Data Center Interconnect Optical Revenue 58.5% CAGR Global DCI Revenue, $M Ovum, 2016 Multi-slot Small Form Factor 13

14 Spectra7 Proposition: Design Drives Value Up to 10X reducvon in cable diameter Passive cable bundle 14

15 Replacement Opportunity: Compelling Efficiency Gains Up to 80% power reduction over fiber 1 Up to 65% lower cost over fiber 1 Major Recent Developments:! Collaboration with Foxconn, one of six interconnect suppliers who serve 10 major Data Center Operators.! Prototype orders in Q3 17.! Revenue expected to ramp in Company Estimates 2. Ovum: Ovum Says it is Good to be a Data Center Interconnect Supplier (2015) 15

16 Broad Multi-Market Cable Technology Platform VR8200 Display Port Module HT8181 HDMI 2.0 Module VR8183-M-71 USB 3.1 Gen1 Type-C Module VR7050-M-01-STDA USB 3.1 Gen1 Std A Module Digital Signage Tablets HDTV, 4K, OLED Displays Camera Connectivity 16

17 Investment Highlights I Focused, targeted go-to-market strategies fuelling business momentum II New transformative design win pipeline with industry leaders in AR/VR/MR III Encouraging market acceptance and testing of Data Center products IV Growing Visibility in the AR / VR / MR Space V Operational efficiency programs supporting improved margin performance See disclaimers on slide 2 17