Slide 1: Napatech Q2 2017 Presentation
Napatech Q2 2017 Presentation August 15, 2017 1 Napatech A/S © Copyright 2017
Slide 2: Highlights Q2 2017
Highlights Q2 2017 Solid sales performance 18% increase in USD sales compared to Q2’16 21% increase in DKK Revenue compared to Q2’16 Progress in Pandion business 9% of our sales in Q2 coming from Pandion products Napatech and Dell partnership progression Significant design win at US-based En
Slide 3: Napatech Q2 2017 Financials
Napatech Q2 2017 Financials 3 Napatech A/S © Copyright 2017
Slide 4: Q2 2017 Revenue
Q2 2017 Revenue Sales and Revenue Growth (YoY) 25% Comments: • Revenue growth in Q2 is 21% 20% • Revenue growth YTD is 23% (FY 2017 guidance 10-20%) 15% • The growth is primarily driven by our Pandion business and 10% recent Accelerator design wins • Currency, revenue recognition 5% and accounting a
Slide 5: Pandion Progression
Pandion Progression Pandion share of sales 14% Comments: 12% • Q2 in line with expectations 10% • Pandion is a growth driver for the coming periods 8% • Pandion product mix sold: • As a recorder solution for 6% system integrators • As recorder software and 4% accelerators to OEM customers 2% • As a
Slide 6: Regional Revenue Distribution
Regional Revenue Distribution Quarterly revenue in MDKK 50 33% Comments: • Growth in North America 40 • North America growth driven by ramp-up of design wins 30 secured in 2016 and 2017 • EMEA decline due to timing of 20 projects in the region -12% • APAC decline due to timing of 10 -25% projects in
Slide 7: Last Twelve Months Rolling Revenue
Last Twelve Months Rolling Revenue Revenue (DKK) 270 Comments: • Last twelve months (LTM) 250 15% rolling revenue is 15% (FY 2017 guidance 10-20%) 230 • By comparison, EBITDA (LTM) 210 for same period has shown an increase of 42% 190 • Fluctuations in quarters offset by longer-term trend 170 150 Q2'
Slide 8: Gross Margin Development
Gross Margin Development Gross Margin 80% Comments: • Gross margin YTD is 72% (FY 2017 guidance around 75% 68%) • The gross margin in Q2’17 is at 71%, decline of 2 points 70% compared to Q2 2016 • Larger volumes to strategic 65% accounts and changes in product mix are expected to drive the gross mar
Slide 9: EBITDA Margin
EBITDA Margin EBITDA Margin 35% Comments: 30% • EBITDA margin YTD is 17% (FY 2017 guidance around 25% 20%) 20% • EBITDA margin is higher in Q2 compared to last year. This underlines the high scalability 15% in Napatech’s business, as higher revenue drives the 10% EBITDA margin up 5% 0% Q1 Q2 Q3 Q4 2
Slide 10: Financial Results Q2 2017
Financial Results Q2 2017 (Figures in MDKK) Q2 2017 Q2 2016 YTD 2017 YTD* 2016 Revenue 56.5 46.6 114.0 92.9 Growth YoY** 21% 9% 23% 8% Gross Margin 71% 73% 72% 73% EBITDA 9.6 3.2 19.0 9.3 EBIT 0.1 (5.3) (0) (7.6) Cash flow from operating activities (4.9) (11.3) 10.0 (2.7) Cash and cash equivalents,
Slide 11: This is Napatech
This is Napatech 11 Napatech A/S © Copyright 2017
Slide 12: Napatech in Short
Napatech in Short Napatech helps IT organizations to reimagine their businesses by harnessing the cost, performance, security and innovation benefits of cloud-scale architectures, making them available to every network Napatech pioneered the use of FPGA-based acceleration hardware and software f
Slide 13: Market Trends In Networking and Communications
Market Trends In Networking and Communications Cloud 5G Internet of Computing Mobile things 4 25 25 50 50 By 2020 BILLION MILLION BILLION BILLION TRILLION Connected People Applications Embedded Systems Devices and Sensors Gbps of Data Source: IDC 13 Napatech A/S © Copyright 2017
Slide 14: Napatech Smarter Data Delivery Solutions
Napatech Smarter Data Delivery Solutions 100% Reliable Data for Management and Security App’s Network management Cybersecurity applications applications ensuring users ensuring users be secure stay connected Napatech Smarter Data Delivery Users Services 14 Napatech A/S © Copyright 2017
Slide 15: Napatech Smarter Data Delivery Solutions: How Are They Deployed?
Napatech Smarter Data Delivery Solutions How are They Deployed? Typical Datacenter Some servers dedicated to Napatech ensures reliable With thousands of servers network management and data delivery to these supporting user services cybersecurity software application servers Cyber Cybersecurity Secur
Slide 16: Open Source Networking Devices Are Transforming
Open Source Networking Devices Are Initiatives Transforming to open standard Compute Platforms From Closed, Proprietary Vertically-Integrated Systems 16 Napatech A/S © Copyright 2017
Slide 17: Open Source Initiatives: Massive Communities Supporting the Transformation
Open Source Initiatives Massive Communities Supporting the Transformation Open source initiatives span server hardware designs, network interface cards, operating systems, applications, management and orchestration, and the embedded technologies that bind them all together Napatech Open and Standard
Slide 18: Napatech Leading Contributor to the HW offload and improved performance of OvS
Napatech Leading Contributor to the HW offload and improved performance of OvS Napatech’s most recent contribution to the community, substantially increases the performance of networking, security and other workloads in virtualized servers, used in hyper-scale cloud and data centers – unlocking new
Slide 19: Financial Service Regulation MiFID-II
Financial Service Regulation MiFID-II Compliance Impact and Opportunities The MiFID-II regulations pose new opportunities for Napatech as we foresee a growing need for IT organizations to rethink how they deliver a scalable data harvesting infrastructure MiFID-II Impacts to IT at Financial Firms:
Slide 20: Pandion: The Perfect Data Capture Foundation for Scalable End-to-end Trade Analysis
Pandion: The Perfect Data Capture Foundation for Scalable End-to-end Trade Analysis 20 Napatech A/S © Copyright 2017
Slide 21: Business Highlights
Business Highlights 21 Napatech A/S © Copyright 2017
Slide 22: Recent Design Wins to drive future business
Recent Design Wins to drive future business 100 Gigabit Accelerator solution for a North American customer in the online gaming industry for a security solution 10 Gigabit Accelerator design win for a European Network Monitoring company, in the Financial industry Pandion recorder design win fo
Slide 23: Significant progress in Napatech and Dell partnership
Significant progress in Napatech and Dell partnership Program: Dell resells Napatech Pandion software under the Dell brand First significant design win in Q2 through joint efforts of Napatech and Dell Roll-out expected to be completed over the coming months with a total value for Napatech proj
Slide 24: Design-win effect on Q2 Revenue
Design-win effect on Q2 Revenue Design wins during the last 6 quarters delivered 29% Pandion DWs of the overall Q2 2017 revenue The Pandion business delivered: Accelerator DWs 9% of the overall revenue in Q2 is based on design-wins secured in 2016 and 2017 The Accelerator business delivered:
Slide 25: Board and management strengthened
Board and management strengthened Ken Way, Chief Sales Officer Comments: 20+ years with specific focus on network and security To support increased North manufacturers, cloud and data center operators, Fortune-5000 America focus as: enterprise IT organizations and government networks • NAM is >75%
Slide 26: Outlook: The Roadmap to 100 MUSD by 2020
Outlook The Roadmap to 100 MUSD by 2020 26 Napatech A/S © Copyright 2017
Slide 27: 2020 Strategy Secured by Strong Technology, Portfolio and Organization
2020 Strategy Secured by Strong Technology, Portfolio and Organization Expanding the core LEADING TECHNOLOGY EXPANDING THE CORE FIRM STRATEGIC EXECUTION Repackage solutions and Focus on pursuing and technologies to fit diverse Napatech is the leader in market needs exploiting emerging FPGA-based sol
Slide 28: Management's Outlook
Management’s Outlook Napatech’s strategy is to be the #1 vendor of SmartNIC Comments: solutions, leading to an ambition of a 100 MUSD top-line by 2020, based on a strong product portfolio powered by Guidance for 2017 as stated in leading-edge core technology the Q4 report of 2017.02.14: • Revenue
Slide 29: Q&A Session
WANT TO LEARN MORE? …about Napatech, Smarter Data Delivery, SmartNICs, IoT, cloud computing, 5G Mobile, and other trends in the industry? Sign up for the Napatech News Q&A Session Sign up for OSE news Follow us on social media 29 Napatech A/S © Copyright 2017