eMagin — Investor Presentation (September 2015)
17 slides from eMagin's investor presentation, Sep 10, 2015
Slide 1: eMagin Corporation: Making virtual imaging a reality
eMagin Corporation Making virtual imaging a reality September, 2015 NYSE MKT: EMAN www.emagin.com
Slide 2: Cautionary Forward Looking Statements
Cautionary Forward Looking Statements 2 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
Slide 3: Microdisplays Critical for Emerging Consumer Mobile, Gaming, and Compact Projector Applications
Microdisplays Critical for Emerging Consumer Mobile, Gaming, and Compact Projector Applications Mobile Applications Viewed by One User at a Time Optic Module or Headset with Display for virtual reality 3 OLED: Key to Big Screen Experience on Mobile & Portable AUGMENTED REALITY VIRTUAL REALITY
Slide 4: Company Snapshot and Product Portfolio
▪ Over a decade of Organic Light Emitting Diode (OLED) technology and manufacturing Leadership with highly valuable IP and trade secrets ‒ 35 issued and pending patents ▪ OLED Microdisplays are superior to competing technologies ‒ 4 to 5 times more power efficient than LCDs or LCOS ‒ Most compact an
Slide 5: Symbiotic Relationship
Symbiotic Relationship 5 ▪ Symbiotic relationship between “core” military / C&I business and emerging high - growth consumer electronics opportunity (virtual and augmented reality) ▪ Stable military and C&I businesses with anticipated return to growth ‒ TTM revenue of $25.4M and profitable in Q1 ‘15
Slide 6: Paradigm Shift in Consumer Electronics: AR and VR Device Markets
3 55 0 10 20 30 40 50 60 2015 2020 ▪ New applications requiring ultra high brightness, ultra high contrast and High Definition color displays will drive explosive growth in the microdisplay market – Augmented Reality: See outside world with icons – Virtual Reality: Gaming, video, pictures, e - mail
Slide 7: OLED Advantages Over Competing Technologies
Key Parameters AMOLED (eMagin) vs. LCD & LCOS Importance Power Lowest power, longest battery life (factor of 4 to 5x) Critical for all portable devices Speed Highest speed clearest video images, avoids nausea Critical for long term use Brightness eMagin Ultra - High Brightness Monochrome and color w
Slide 8: Market Shifting to Increased Resolution, Brightness, and Power Efficiency - OLED
Gen 2 OLED Morpheus Gen 2 - OLED 8 Consumer Head - Mounted Display Migration to OLED Vive OLED??? Announced 2015 Announced 2015 Announced 2015 Virtual Reality Virtual Reality Virtual Reality Announced 2012 Augmented Reality Market Shifting to Increased Resolution, Brightness, and Power Efficiency -
Slide 9: Virtual Reality Evolution to Microdisplays
9 Virtual Reality Evolution to Microdispays Field of View Greater than 100 ° Greater than 100 ° Display Type eMagin Microdisplay Large Cell Phone Display Tech OLED OLED Image Smear Negligible Negligible “Screen Door” Effect Unnoticeable Noticeable Resolution per Eye 4.0 Mega - Pixels 1.0 Mega - Pixe
Slide 10: Broadest Global Reach: Significant Military/Aerospace Presence
• US Army Goggles, Sights, Binoculars • US Special Forces • US Navy High Brightness Display • France – SAGEM/Thales – FELIN Broadest Global Reach 10 Significant Military/Aerospace Presence EMAN OLED #1 in Global Market Position • UK • Israel • Singapore Army • Australian Army
Slide 11: OLED for Pilots
• Inside track on market opportunity: 2015 - 2025 forecasted Military SAM about $90M over 10 yrs . • Only displays that meet both brightness and contrast required • Validated by contracts with 2 major integrators and US Government • Military market provides development funding for commercial markets
Slide 12: Commercial/Industry Early Adopters Moving to OLED
Many more adopters as price drops with increasing volume 12 Commercial/Industry Early Adopters Moving to OLED Sample Customers – BCF; Portable Sonogram HMD/Viewer – FLIR Systems; Thermal Cameras – LITEYE; See - Through & Occluded HMDs – Abbott; LASIK Surgery (Map Cornea) – Nordic Neural Visual Syste
Slide 13: Manufacturing Enhancements Paying Off
▪ Lower costs in consumer applications by designing out military requirements ‒ Consumer displays do not need operating temperature ranges of - 40 ° F to 158 ° F ‒ New, “Less - Rugged” manufacturing IP has the potential to dramatically lower costs ▪ New OLED deposition t ool – 10X capacity i ncrease
Slide 14: Operating Results
2014 2013 Q2 2015 Q2 2014 Target Revenue 25.7 28.0 7.0 7.0 20% + growth Gross Margin % 29% 30% 37% 31% 50% Operating Expense 12.6 13.6 2.7 3.2 Operating Income (5.1) (5.2) (0.1) (1.0) 20%+ EBITDAS (2.9) (1.7) 0.4 (0.6) 25%+ Operating Results $M 14
Slide 15: Balance Sheet and Capital Structure
Balance Sheet ($) Q2 2015 Cash & Equivalents 5.4 Total Assets 26.0 Total debt 0 Total Liabilities 4.3 Total Shareholders Equity 21.9 Capital Structure (shares) Basic Shares Outstanding 25.5 Options 4.2 Series B Preferred 7.5 Fully Diluted Shares Outstanding 37.2 Balance Sheet and Capital Structure $
Slide 16: Investment Highlights
Investment Highlights VR AND AR TECHNOLOGIES CREATING SEISMIC CHANGE IN GAMING AND COMPUTING , AND REPRESENT TENS OF BILLIONS OF MARKET OPPORTUNITY M OMENTUM FOR VR AND AR TECHNOLOGIES IS BUILDING QUICKLY AS CONSUMER TECHNOLOGY JUGGERNAUTS RUSH TO ESTABLISH MARKET DOMINANCE E M AGIN IS THE MARKET LE
Slide 17: eMagin Corporation
eMagin Corporation Making virtual imaging a reality NYSE MKT: EMAN www.eMagin.com