eMagin — Investor Presentation (June 2020)
20 slides from eMagin's investor presentation, June 2020
Slide 1: eMagin Investor Presentation
eMagin Investor Presentation June 2020 © 2020 eMagin Corporation Proprietary Information
Slide 2: Disclaimer
Disclaimer Certain statements made by us in this presentation that are not historical facts or that relate to future plans, events or performances are forward-looking statements within the meaning of the federal securities laws. Our actual results may differ materially from those expressed in any fo
Slide 3: Key Messages
Key Messages Leading global OLED microdisplay company uniquely positioned to 1 capitalize on growing addressable markets in military, industrial and consumer Deep applications expertise driven by innovative technologies and 2 broad IP portfolio; aligned with blue-chip customer base and long- term in
Slide 4: eMagin At a Glance
eMagin At a Glance Leading global company in OLED microdisplay technology Headquarters Hopewell Junction, NY In U.S. 38 Patents 15+ Years Military/Aviation, and 16 Pending Manufacturing Commercial and OLED Microdisplays Consumer end 3 Patents and 21 Markets Manufacturing Pending in Int’l U.S. Domici
Slide 5: Growth Strategy
Growth Strategy Further expand military and aviation market share and grow commercial and industrial presence Increase capacity and production yields to drive operating leverage Deepen penetration of leading-edge direct patterning technology Leverage commercial and consumer electronics customer rela
Slide 6: First Quarter 2020 Highlights
First Quarter 2020 Highlights •1Q20 revenue of $6.7 million, 10% YOY increase; including Tier 1 client in the consumer space Improved • $13.3 million of backlog at 1Q20, 14% sequential and 24% YOY increase Financial Trends • Sold to 78 customers for 18 new programs; four new customers • Expect 2Q20
Slide 7: eMagin's OLED Technology Advantage
eMagin’s OLED Technology Advantage • Brightest OLED – monogreen over 15,000 nits; full color 7,000 nits demonstrated, full color 10,000 nits targeted • Very high contrast – greater than 1,000,000:1 • Lower power consumption– longer battery life • More compact form factor • Light-weight solution • Fi
Slide 8: OLED Provides Superior AR/VR Experience
OLED Provides Superior AR/VR Experience Consumer and commercial AR & VR headsets need a high-resolution microdisplay with high fill factor to eliminate the “screen door” effect 1 mm 1 mm Magnified Cell Phone eMagin Microdisplay Display >2,500 ppi ~600 ppi 8 © 2020 eMagin Corporation Proprietary Info
Slide 9: Direct Patterned Microdisplay Advantage
Direct Patterned Microdisplay Advantage Magnification Highlights eMagin’s Superior Fill Factor Samsung Galaxy S5 OLED Cell Phone eMagin OLED Microdisplay Display (Shown at same scale) Direct Patterned OLED Required for Fully Immersive Experience 9 © 2020 eMagin Corporation Proprietary Information
Slide 10: Deep Application Expertise and Broad IP Portfolio
Deep Application Expertise and Broad IP Portfolio Patents Know-how • 55 U. S. and 26 foreign patents issued • Includes Silicon backplane, OLED and pending architecture, process and packaging • Includes silicon backplane, OLED • Back-plane design architecture, process and packaging • Anode patterning
Slide 11: Military and Aviation
Military and Aviation Profile ✓ Predominately sole-source supplier ✓ Proven track record of performing in demanding applications and environments ✓ First mover in AR/VR for domestic and foreign military applications ✓ Favorable secular and cyclical tailwinds ✓ Long-standing customer relationships an
Slide 12: Commercial and Industrial
Commercial and Industrial Profile ✓ Products provide high reliability in stressful environments ✓ Successful in supplying to medical imaging devices, thermal cameras and hunting scopes ✓ Recent customer wins include: • $780,000 order from an existing medical device customer upgrading their product w
Slide 13: Commercial & Consumer
Commercial & Consumer Profile AR Forecast by IDC ✓ Augmented reality for • Equipment repair • Factory automation • Service technicians ✓ Virtual reality for • Vehicle design • Training and simulation • Consumer gaming and entertainment ✓ eMagin is the only company with technology that satisfies the
Slide 14: Manufacturing Footprint & Process
Manufacturing Footprint & Process Hopewell Junction, NY Class 10 Clean Room Operations (Headquarters) • Lease ~42,000 square feet of space, Photo-Lithography Metal Deposition OLED Deposition • Houses own equipment for OLED microdisplay fabrication, assembly operations, R&D and In-Line Inspection Gla
Slide 15: Senior Management Team
Senior Management Team ◼ Over 20 years experience in OLED technologyand manufacturing Andrew Sculley ◼ Led Kodak OLED Systems CEO ◼ MS Physics Cornell, MBA Carnegie-Mellon ◼ Previously eMagin’s VP of Finance and Corporate Controller Mark Koch ◼ +25 years of financial experience Acting CFO ◼ Certifie
Slide 16: Key Messages
Key Messages Leading global OLED microdisplay company uniquely positioned to 1 capitalize on growing addressable markets in military, industrial and consumer Deep applications expertise driven by innovative technologies and 2 broad IP portfolio; aligned with blue-chip customer base and long- term in
Slide 17: Appendices
Appendices 17 © 2020 eMagin Corporation Proprietary Information
Slide 18: Consolidated Statement of Operations
Consolidated Statement of Operations $ in thousands, except share and per share data Three Months Ended March 31, 2020 2019 Revenues: Product $ 5,634 $ 5,507 Contract 1,097 605 Total revenues, net 6,731 6,112 Cost of revenues: Product 4,790 4,426 Contract 507 350 Total cost of revenues 5,297 4,776 G
Slide 19: Adjusted EBITDA
Adjusted EBITDA $ in thousands Three Months Ended March 31, 2020 2019 Net loss $ (1,369) $ (1,439) Non-cash compensation 43 193 Change in fair value of common stock warrant liability 20 (794) Depreciation and intangibles amortization expense 480 488 Interest expense 17 33 Adjusted EBITDA $ (809) $ (
Slide 20: Consolidated Balance Sheet
Consolidated Balance Sheet $ in thousands, except share and per share data March 31, December 31, ASSETS Current assets: Cash and cash equivalents $ 3,138 $ 3,515 Accounts receivable, net 3,737 3,966 Unbilled accounts receivable 470 155 Inventories 8,821 8,832 Prepaid expenses and other current asse