Slide 1: Napatech Q2 2015 Presentation, August 18th, 2015
August 18th, 2015 – Henrik Brill Jensen, CEO Napatech A/S Copyright 2015 1 Napatech A/S Copyright 2015
Slide 2: Q2 2015 highlights
USD sales in Q2 2015 where 6.6 MUSD Revenue in Q2 2015 was 42.7 MDKK EBT in Q2 2015 was negative 6.7 MDKK 2% increase compared to Q2 2014 Decrease from negative 3.7 MDKK in Q2 2014 2% decrease compared to Q1 2015 Cash and cash equivalents at 57.7 MDKK Gross margin in Q2 2015 was 72% Decrease
Slide 3: Q2'15 key figures
Q2’15 Q1’15 Q2’14 Revenue (MDKK) 42.7 43.7 41.8 Growth YoY* 2% (9%) (19%) Gross Margin 72% 71% 73% EBITDA (MDKK) 2.3 4.0 1.8 EBT (MDKK) (6.7) 4.6 (3.7) Cash flow from operating activities (MDKK) 3.3 (11.2) 2.7 Cash and cash equivalents, end of quarter (MDKK) 57.7 69.9 90.3 Total unused credit facili
Slide 4: Sales / Revenue Growth (YoY)
Sales / Revenue Growth (YoY) Influencing factors: Due to customer change in product 10% orders vs. forecast, 600 KUSD of received orders could not be 5% delivered in Q2 2015 0% Higher US Dollar to Danish Kroner exchange rate, creates tailwind to the revenue -5% Revenue recognition and accounti
Slide 5: Gross Margin (Yearly)
Gross Margin (Yearly) Margin development: Competition in the midrange market 80% and aggressive go-to-market strategy affects gross margin in the longer run 75% The gross margin in Q2 is in line with the historic levels The longer term gross margin 70% expectation is still around 70% 65% 60% 2
Slide 6: EBITDA Margin
EBITDA Margin Q2 2015 EBITDA margin: EBITDA margin shows growth 14% compared to Q2 2014 12% Reduced overall costs in Q2 2015 have a positive impact on the EBITDA 10% margin 8% 6% 4% 2% 0% Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 6 Napatech A/S Copyright 2015
Slide 7: YoY Revenue Growth by region
YoY Revenue Growth Geographical split: North America declined by 5% in the 80% quarter 60% EMEA delivered 62% growth for the 40% quarter primarily accomplished by successful closure of larger projects 20% APAC was as expected declining 0% as the region is between projects, which affects the re
Slide 8: Q2'15 Result: Increased cash, exp. above Q1'15 level
Our Our focus areas Result 2015 Target Q2’15 Result expectations Revenue Deliver to guidance 12% growth 2% growth Gross Margins Aggressive go-to-market strategy 70% 72% R&D Cost Reallocation of resources to Sales and Marketing Reduced 16% decline Admin Costs Reallocation of resources to Sales and Ma
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Slide 10: New leadership for Global Sales & Marketing
In first quarter of 2015 Andrew Patterson and Walther Johannessen assumed responsibility for our Global Sales & Marketing activities Extensive analysis leading to organizational changes, and reallocation of resources are now implemented We have already towards the end of Q2 and into Q3 seen th
Slide 11: 100 Gigabit products progress
Our 100 Gigabit products, developed in 2014 and shipped to the first customer in Q4 2014 was not expected to generate significant revenue before 2016/17 Currently, we have obtained important design wins in all major regions and have several large customer projects ongoing with expected closing i
Slide 12: Pandion capture-to-disk: fast engine for real-time capture, indexing and search
The Pandion Capture-to-disk solution was developed and launched Napatech 2014 Service Addressable Market estimatet during 2015 to serve the 450 MUSD Network Recording Market New markets Our first customer shipment was done by July and we see large interest Network Recording Market from new and e
Slide 13: PCAP solutions based on Open Source applications
PCAP is an Open Source solution with an industry-wide packet delivery format and API, for storing and accessing captured network traffic PCAP is the de-facto standard used for packet analysis, and is the basis for many network processing applications Napatech has always supported PCAP as part
Slide 14: Design wins
1 and 10 Gigabit design win with US based security company Design wins underline: Cyber adAPT for their real-time network-based threat detection solution Pipeline of new customers Expansion of business with 1 Gigabit design win with a US based VOIP monitoring customer existing customers 10
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Slide 16: Shareholders 1 - 10
Shareholders 1 - 10 Investor Type Country (%) Investor Type Country (%) Verdane Capital VIII Ordinary Denmark 22.2 SEB private bank Nominee Luxembourg 1.8 Northzone IV K/S Ordinary Denmark 22.0 Northzea Management Ordinary USA 1.4 Skandinaviske Enskilda Nominee Sweden 5.4 Nordnet Bank AB Nominee Swe
Slide 17: Outlook and 2015 guidance
We still plan for 2H 2015 to be a challenging period where we will Guidance for full year 2015 is maintained at: continue to have a sharp focus on revenue generation and continued organizational efficiency to secure profitability and growth for 2015 Revenue growth around 12% EBITDA margin arou
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Slide 19: Forward-looking statements disclaimer
This presentation includes and is based, inter alia, Napatech A/S’ businesses, energy prices, market 2015 results presentations. Information contained on forward-looking information and statements that acceptance of new products and services, within will not be updated. The following slides are subj
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