Gsi Technology, Inc. · NASDAQ:GSIT

Gsi Technology — Craig-Hallum Alpha Select Conference 2014

22 slides from Gsi Technology's conference presentation, Sep 18, 2014

  1. Slide 1: Powering High Speed Networks

    Exhibit 99.1 Filed by GigOptix, Inc. Pursuant to Rule 425 under the Securities Act of 1933 and deemed filed pursuant to Rule 14a-12 under the Securities Exchange Act of 1934 Subject Company: GSI Technology, Inc. Commission File No: 001-33387 NYSE MKT: GIG Powering High Speed Networks Craig-Hallum Al

  2. Slide 2: Important Information

    Important Information This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval. This material is not a substitute for the prospectus/proxy statement GigOptix and GSI Technology would file with the Securiti

  3. Slide 3: Disclaimer

    Disclaimer Forward Looking Statements: This presentation contains statements regarding operating trends, future results, new projects, and other market, business and product trends that are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Se

  4. Slide 4: GigOptix Overview

    GigOptix Overview Emerging Fabless Leader in ICs for High Speed Communication Links and Network Applications Core Products Target 3 Primary Markets: High-speed fiber optical communications Wireless backhaul networks High-speed links for consumer application Customer base: Tier 1 & 2 equipment OEMs a

  5. Slide 5: GigOptix Focused Mission

    GigOptix Focused Mission Enabling High-Speed End-to-End Network Connectivity Backhaul Point-to-Point Wireless Links Consumer Cloud & Edge Electronics Optical Links & Datacom motion-gesture Optical Links amplification Core & Metro Telecom Optical Links End User Data Center 5 © 2014 GigOptix, Inc. All

  6. Slide 6: Growth by Successful Strategic Development

    Growth by Successful Strategic Development Products Activity Applications Telecom & Datacom GaAs Drivers Acquisition 100G to 400G Coherent MCMs Palo Alto, CA, USA for Transceivers SiGe Amplifiers & Acquisition Datacom & Consumer Drivers Zurich, Switzerland 40G to 100G Chipsets for AOC & Pluggables T

  7. Slide 7: Q3'14 News: GSIT Acquisition Proposal

    Q3’14 News: GSIT Acquisition Proposal • Proposed Deal Structure * • Per share consideration of $6.50 • $2.00 per share in cash • GigOptix common stock worth $1.33 • Special cash dividend of $3.17 per share payable by GSIT shareholders • Commitment letter from Opus Bank to fully debt finance the cash

  8. Slide 8: Growth Catalysts for 2014 and Beyond

    Growth Catalysts for 2014 and Beyond • Backbone networks for Telecom Core & Metro Connectivity (100Gbps-400Gbps) • Leading supplier of 100Gbps Coherent Gen1 (Limiting) and Gen2 (Linear) MCMs and devices for Core long-haul now, expands into Metro in 1H 2015 • Pioneering supplier of 400Gbps MCMs and d

  9. Slide 9: Today's Network Challenges and Opportunities

    Today’s Network Challenges and Opportunities Backbone Network Metro Network Mobile Network Access Network Core & Metro Datacenters CE High Speed Links Small Cells P-t-P Wireless 3.9Bn 440% Increase in Connected People to Internet 3x Increase in Average Cloud Traffic 2012-2017 in 2017 Broadband Speed

  10. Slide 10: Compelling Markets

    Compelling Markets ~$0.9B 2017 TAM $300M $275M CE High speed Links $250M Datacom Telecom Datacenters $150M LH & Metro Drivers & TIAs Drivers & TIAs $50M $60M Natural $40M Interfaces Small Cells PtP HDMI Chipsets Wireless GPS RF Chips Chips TOTAL ADDRESABLE MARKET rd Source: Multiple 3 party sources,

  11. Slide 11: GigOptix Solutions

    GigOptix Solutions Core & Metro Datacenter P-to-P Wireless Consumer Electronics Networks Links Networks Links Backhaul High Speed Links Drivers & TIAs Drivers & TIAs RF MMICs for Chips for HDMI Cables, for AOCs & Pluggables Small Cells Natural interfaces, & GPS Industrial Customized ASICs High Speed

  12. Slide 12: Core & Metro Links: 100Gbps - 400Gbps Coherent

    Core & Metro Links: 100Gbps - 400Gbps Coherent Today’s solution: transceivers Tomorrow: small FF integration GIG Driver GIG TIA CFP CFP2 CFP4 GigOptix Differentiation: TIAs & Drivers For All Speeds & Formats Leading Position In 100Gbps Coherent GigOptix Revenue 1H 2014: $4.8M Launched in 2007 Market

  13. Slide 13: Cloud & Edge Links: 40Gbps & 100Gbps Parallel

    Cloud & Edge Links: 40Gbps & 100Gbps Parallel Parallel optics links for 4 and 12 channels of 10, 16 and 28 Gbps TIA IC PD Lens Array Array VCSEL VD IC VCSEL Lens VD IC PIN TIA IC Array Array GigOptix Differentiation: Sole Parallel Device Merchant Supplier TIAs & Drivers for FDR, EDR, QSFP SR & LR Gi

  14. Slide 14: RF Backhaul Point-to-Point Wireless

    RF Backhaul Point-to-Point Wireless E-Band Backhaul Point-to-Point Wireless With Leading Integration And Architecture Powered By GigOptix Chipsets GigOptix Differentiation: 2 Chip Solution For E-band P-t-P Backhaul Best Output Power Performance GigOptix Revenue 1H 2014 : $2.2M Launched in 2013 Marke

  15. Slide 15: Consumer Electronics: High-Speed Optical Links

    Consumer Electronics: High-Speed Optical OpticalLinks Links GigOptix Components Powering High-Speed Consumer Optical Link Applications Potential Applications • 4K/8K TVs connectivity • Embedded active optical cables (eAOCs) $126M • Gesture recognition and motion tracking • 2D/3D resolution $64M $32M

  16. Slide 16: Custom ASIC: Industrial & Mil/Aero

    Custom ASIC: Industrial & Mil/Aero GigOptix ASICs Provide High-Value and Cost Efficient Customized Solutions for FPGA and ASIC Conversions Configurable Standard Configurable Memory Blocks Cell Logic Cells Configurable Logic Cells PHY PHY PHY Configurable I/O Cells Structured ASIC Standard Cell Custo

  17. Slide 17: Key Customer Relationships

    Key Customer Relationships 17 © 2014 GigOptix, Inc. All Rights Reserved

  18. Slide 18: Trended Financial Summary

    Trended Financial Summary Revenue ($M) Adjusted EBITDA ($M) 12 consecutive quarters of positive Adj. EBITDA Cash Balances ($M) Q3 2014 Guidance* • Revenue in the range of $8.2M to $8.4M Additional commentary • Q3'14 R&D of approximately $3.5M • Q3'14 SG&A of approximately $1.5M * Guidance for quarte

  19. Slide 19: Trended Revenue by Product Lines

    Trended Revenue by Product Lines $ Millions Q2'13 Q3'13 Q4’13 Q1’14 Q2’14 High-Speed Communications $4.5 $5.2 $5.5 $5.3 $5.6 A. Optics $4.1 $4.9 $4.8 $4.4 $4.3 Telecom $2.8 $3.7 $3.2 $2.8 $2.0 Datacom $1.3 $1.2 $1.6 $1.6 $2.3 B. RF $0.4 $0.3 $0.7 $0.9 $1.3 Industrial (ASIC) $2.3 $2.1 $2.3 $2.1 $2.4

  20. Slide 20: Financial Model (Non-GAAP)

    Financial Model (Non-GAAP) Long-Term $ Millions FY 2013 Q1’14 Q2’14 Model** Revenue 100% 100% 100% 100% Gross Profit 63% 60% 59% 55%-60% Research & Development 44% 47% 37% 25% Selling, General & Admin. 21% 22% 18% 15% Total Operating Expense 64% 69%* 55% 40% Operating Income -1% -9% 4% 15%-20% * In

  21. Slide 21: Year-over-Year Financial Progress

    Year-over-Year Financial Progress Q2’13 Q2’14 % Increase Share Price $1.14 $1.20 5% (as of September 12, 2013 and 2014) Market Capitalization $28M $39M 56% (as of September 12, 2013 and 2014) Quarterly Total Revenue $6.8M $8.0M 18% Cash/Equivalents $9.5M $18.5M 95% Debt $6.0M - -100% Stockholders Eq

  22. Slide 22: Balance Sheet & Capitalization

    Balance Sheet & Capitalization Balance Sheet 6/29/14 (Millions) Cap Table Highlights (as of 9/12/14) Cash & Equivalents $18.5 Common Stock Outstanding 32.2M Accounts Receivable $7.0 Stock Price $1.20 Inventory $4.3 Avg. Trading Volume 92,000 Other Current Assets $0.7 Market Cap ~$39M Total Current A

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