Corporate Presentation

Transcription

1 Corporate Presentation

2 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. To 1 4 From Ultra-thin and light-weight interconnect. bulky data, audio, power & video cables. 2

3 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 presence in the Blockchain space V Operational efficiency programs supporting improved margin performance 3

4 Share Structure and Key Statistics Listed as SEV Share Price $ 0.21 CAD* Market capitalization $ 36.2M CAD* TTM revenue (12/31/17) $ 10.6 M TTM gross margin (12/31/17) 58% Insider ownership 4.5% Est. Shares % Common shares issued 172 M 100 *As of 2/28/18 Market Close 4

5 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 Marketing: Intersil, Quellan Gerald Hamilton SENIOR VP, WORLDWIDE SALES 27 Years Semiconductor Experience: Mindspeed, Conexant Antony Ng Yukshing VP, OPERATIONS 23 years Semiconductor Engineering Cypress, Marvell Ebrahim Abunasrah VP, INTERCONNECT PRODUCT GROUP 10 years Product Development Molex

6 The Leader in Active Copper Cable Technology High Gross Margin / Single Sourced / Secured by over 50 Patents 6

7 Spectra7 Target Markets: High Value, High Growth, Disruptive Technologies Data Center & Blockchain $4 billion market in Cloud Infrastructure - Cryptocurrency Blockchain processing Augmented/ Mixed Reality $42 billion by Workplace collaboration-virtual desktop Increased productivity- Job training Virtual Reality $6 billion by D gaming- Immersive Content -VR social platforms 1-Estimated Hardware Revenue from Digi Capital(2016) 2- Gartner (2016) 7

8 Spectra7 s Target Markets Data Center Introducing Disruptive Technology Explosive Growth Potential High Margin Opportunity Source: Ovum AR/VR/MR Blockchain 8

9 Global DCI Revenue, $M Poised to Enter Data Center Market Data Center Interconnect Optical Revenue 58.5% CAGR Ovum, 2016 Multi-slot Small Form Factor 9

10 Replacement Opportunity: Compelling Efficiency Gains Up to 90% power reduction over fiber 1 Up to 65% lower cost over fiber 1 Major Recent Developments: Collaboration with Foxconn, Luxshare, and Amphenol, 3 of 6 interconnect suppliers who serve 10 major Data Center Operators. Six new customer design-ins in Q Significant increase in prototype orders in Q1 18. Revenue expected to ramp in Company Estimates 2. Ovum: Ovum Says it is Good to be a Data Center Interconnect Supplier (2015) 10

11 Spectra7 Proposition: Design Drives Value Up to 10X reduction in cable diameter Passive cable bundle 11

12 Data Center Architecture for Blockchain Bitcoin BaaS Market Drivers Crypto Currencies Smart Contracts Ethereum Blockchain Architecture 12

13 Spectra7 Increases Efficiency of Blockchain Processing - Breakthrough Low Power Up to 80% lower power than competing solutions. - High Performance Scalable interconnect solutions from Gbps. - Low Cost Typically 50% cost of competing solutions. QSFP-DD 200/400G QSFP28 100/200G SFP28/DD 25/50G 13

14 Blockchain Landscape Major Operators and OEMs have Blockchain Initiatives Cloud and Hyper-Scale offer Blockchain as a Service (BaaS) Spectra7 is teaming with cable partners to leverage it s unique patented active cable technology. Example Blockchain Operators & Customers 14

15 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 15

16 Spectra7 s VR/MR Market Leadership Position $299 price point set by Windows10 MR is driving increased adoption Initial Valve and Microsoft Games coming to Win10 for Holiday Sales and Chinese New Year Record Content and Software investments in 2H17 will drive robust hardware sales in 2018 and beyond 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 presence in the Blockchain space V Operational efficiency programs supporting improved margin performance 17