Slide 1: Q3’22 Financial Results
October 27, 2022 Q3’22 Financial Results October 27, 2022 Page 1
Slide 2: Cautionary Statement Regarding Forward Looking Statements
Cautionary Statement Regarding Forward Looking Statements Forward Looking Statements: Certain statements contained in this release and accompanying materials may be considered forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, including statem
Slide 3: Business Update
Business Update October 27, 2022 Page 3
Slide 4: Summary
Summary Revenue Non-GAAP Gross Margin(1) Adj. EBITDA(1) 46.5% 47.5% 24.9% 24.5% $225.1M $217.2M 21.8% $206.7M 42.3% Q3'21 Q2'22 Q3'22 Q3'21 Q2'22 Q3'22 Q3'21 Q2'22 Q3'22 • Auto & industrial moderating, soft • Gross Margin expanding • Est. test cell utilization 82% mobility demand for systems ✓ Mitig
Slide 5: Diverse Revenue Profile
Diverse Revenue Profile Recurring Systems Key Business Drivers Key Business Drivers Automotive • Semiconductor 15% • Auto & industrial product designs moderating Recurring Q3’22 • Growing systems 42% Revenue Industrial 13% • Soft mobility installed base $206.7M • New Server wins Mobility Non-GAAP 12
Slide 6: Resilient Recurring Business Model
Resilient Recurring Business Model $336M $145M > 23,700 300+ LTM(1) Recurring LTM(1) Service Systems Installed Highly Skilled Field Revenue Revenue Base Service Engineers 6.5 % > 87% > 100 ~ 12 year 3-year CAGR (2) Annual Renewal Rate Customers Average Tenure on service contracts Stable revenue at C
Slide 7: Q3’22 Financials and Q4’22 Guidance
Q3’22 Financials and Q4’22 Guidance October 27, 2022 Page 7
Slide 8: Q3’22 Non-GAAP Results
Q3’22 Non-GAAP Results Q2’22 Q3’22 Q3’22 Actual Guidance(2) Actual Revenue $217.2M $198 - $212M $206.7M Gross Margin(1) 46.5% ~ 46.5% 47.5% Operating Expenses(1) $51.9M ~ $54M $52.6M Non-GAAP EPS(1) $0.81 $0.74 Adjusted EBITDA(1) 24.9% ~22% 24.5% ❑ Q3 revenue slightly higher than mid-point of guidan
Slide 9: Revenue Distribution
Revenue Distribution Test Q3’22 TTM Actual Results Interface Recurring Semi Test Systems Automation Recurring Semi Test Test Interface Inspection & Metrology Systems Mid-Term Target Model (1) Automation Mid-Term Target Model revenue distribution ❑ Greater stability - increasing sales of consumable T
Slide 10: Target Revenue of $1B and $4.00 Non-GAAP EPS
Target Revenue of $1B and $4.00 Non-GAAP EPS FY2021 Q3’22 Mid-Term Actuals Actuals Target(1) Revenue $887.2M $206.7M $1B Gross Margin(1) 43.6% 47.5% 49% Operating Expenses(1) 23.1% 25.4% 24% Non-GAAP EPS(1) $3.20 $0.74 $4.00 Adjusted EBITDA(1) 22.2% 24.5% 26% Free Cash Flow(2) $85.7M $34.5M $180M ❑
Slide 11: Balance Sheet
Balance Sheet [$Million] Q2’22 Q3’22 Cash and Investments $368 $369 Accounts Receivable $213 $188 Total Debt $93 $80 Capital Additions $3.1 $5.0 Cash Flow From Operations $43.8 $39.5 ❑ Strong balance sheet to support debt reduction, M&A investments and share repurchase program ❑ Utilized $18M of cas
Slide 12: Q4’22 Outlook
Q4’22 Outlook Q3’22 Q4’22 Actual Guidance Revenue $206.7M $180 - $198M Gross Margin(1) 47.5% ~ 47% Operating Expenses(1) $52.6M ~$52.5M Adjusted EBITDA(1) 24.5% ~ 21% (mid-point of guidance) ❑ Q4 revenue led by automotive and industrial test demand ❑ Increased contactor manufacturing insourcing and
Slide 13: Appendix
Appendix Use of Non-GAAP Financial Information: This presentation includes non-GAAP financial measures, including non-GAAP Gross Margin/Profit, Income and Income (adjusted earnings) per share, Operating Income, Operating Expense, effective tax rate, free cash flow and Adjusted EBITDA that supplement
Slide 14: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation 3 Months Ending 3 Months Ending 3 Months Ending 12 Months Ending Sep 25, % of Net Jun 25, % of Net Sep 24, % of Net Dec 25, % of Net Gross Profit Reconciliation 2021 Sales 2022 Sales 2022 Sales 2021 Sales Net Sales $ 225,063 $ 217,226 $ 206,687 $ 887,214 Gross Profit
Slide 15: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation 3 Months Ending 3 Months Ending 12 Months Ending Jun 25, % of Net Sep 24, % of Net Dec 25, % of Net Operating Expense Reconciliation 2022 Sales 2022 Sales 2021 Sales Operating Expense - GAAP $ 64,039 29.5% $ 64,359 31.1% $ 256,258 28.9% Share based compensation (3,761
Slide 16: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation 3 Months Ending 3 Months Ending 3 Months Ending 12 Months Ending Sep 25, % of Net Jun 25, % of Net Sep 24, % of Net Dec 25, % of Net Adjusted EBITDA Reconciliation 2021 Sales 2022 Sales 2022 Sales 2021 Sales Net income - GAAP Basis $ 23,733 10.5% $ 28,768 13.2% $ 24,8