Slide 1: Napatech Q2 2018 Presentation
Napatech Q2 2018 Presentation August 14, 2018 1 Napatech A/S © Copyright 2018
Slide 2: Highlights
Highlights Sales performance for Q2 2018 53% decrease in USD Sales for Q2 2018 56% decrease in DKK Revenue for Q2 2018, 11% increase in DKK over Q1 2018 Progress in business strategy Substantial progress with Xilinx and Intel focused at delivering FPGA software solutions Strong customer
Slide 3: Napatech Q2 2018 Financials
Napatech Q2 2018 Financials 3 Napatech A/S © Copyright 2018
Slide 4: Q2 2018 Revenue
Q2 2018 Revenue Sales and Revenue Growth (YoY) 0% Comments: -10% • Revenue decline in Q2 is 56% -20% • The revenue for the period -30% has been negatively influenced by delay in -40% customer projects and inventory reductions but also -50% the transition from hardware to software centric solutions -
Slide 5: Regional Revenue Distribution
Regional Revenue Distribution Quarterly revenue in MDKK Comments: 70 • North America growth 60 -62% affected by the 50 postponement of customer projects and inventory 40 reductions, at a couple large OEM’s 30 20 -19% • EMEA shows decline due to -67% timing of projects in the 10 region - • APAC shows
Slide 6: Gross Margin Development
Gross Margin Development Gross Margin 80% Comments: • The gross margin in Q2’18 is 75% at 70%, a decrease compared to Q2 2017 70% • The gross margin is dependent on the following two trends: 65% • Larger volumes to strategic accounts and changes in product mix are expected to 60% drive the gross mar
Slide 7: Financial Results Q2 2018
Financial Results Q2 2018 (Figures in MDKK) Q2 2018 Q1 2018 Q2 2017 Revenue 24.7 22.3 56.5 Growth YoY** (56%) (61%) 21% Gross Margin 70% 68% 71% EBITDA (16.2) (15.8) 9.6 EBIT (28.0) (26.4) 0.1 Cash flow from operating activities (18.9) (7.9) (9.3) Cash and cash equivalents, end of quarter 1.6 20.2 3
Slide 8: Business Highlights
Business Highlights 8 Napatech A/S © Copyright 2018
Slide 9: Key Wins Will Drive Future Business
Key Wins Will Drive Future Business China Neusoft Industry Leaders That Rely on Napatech Application (APM) and network (NPM) performance monitoring Software applications on open and standard server platforms Napatech’s SmartNIC software and hardware for performance, programmability and scalabi
Slide 10: The Design Win Effect on Revenue
The Design Win Effect on Revenue Design wins and new customers acquired are the basis for our growth momentum over time Design wins (DW) during the last 6 quarters delivered 19% Recent Pandion DWs of the overall Q2 2018 revenue Recent SmartNIC DWs The SmartNIC business delivered 10% of the overa
Slide 11: Important Company Progress in Key Areas
Important Company Progress in Key Areas Showcased Reconfigurable Computing Solution for 5G Mobile Excellent benchmarks for cloud-RAN applications Built on Napatech’s SmartNIC software and hardware Featured programmability and decoupled hardware & software Multi-partner demonstration at Mob
Slide 12: This is Napatech
This is Napatech Today focus on: Our strategy, market opportunities and time line 12 Napatech A/S © Copyright 2018
Slide 13: Our Transformational Journey Towards FPGA Software for Reconfigurable Computing
Our Transformational Journey Towards FPGA Software for Reconfigurable Computing Pioneered use of New Markets Innovating around Hardware-centric FPGA’s Hyperscale Networks Software-centric FPGA to accelerate networking Proven Success acceleration for expanding 5G Mobile FPGA SmartNICs and security ap
Slide 14: Rapidly Expanding Market Opportunity
Rapidly Expanding Market Opportunity 2017 / 18 … 2019 and Forward Broadening our software portfolio for FPGA-based SmartNICs 15 million platforms will allow us to grow by dominating our leadership position in • Standard servers and appliances capture applications, expanding into new networking and s
Slide 15: Recent Initiatives Supporting Our Strategy
Recent Initiatives Supporting Our Strategy Implemented actions paving the way for growth Strengthened executive management with new US-based CEO – enhanced focus on North American market Strategic partnerships established with Xilinx and Intel, the leading suppliers of FPGA technologies Engage
Slide 16: Outlook
Outlook 16 Napatech A/S © Copyright 2018
Slide 17: Management's Outlook
Management’s Outlook As previously communicated, we expect an improvement in revenues Comments: in the second half of 2018 compared to the weakness experienced in the first half. Guidance for FY 2018: • USD sales 18 to 23 MUSD We expect sales for the second half of 2018 at 12 MUSD within a range
Slide 18: Q&A Session
WANT TO LEARN MORE? …about Napatech, Reconfigurable Computing, SmartNICs, FPGA technology 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 18 Napatech A/S © Copyright 2018