Slide 1: Q1 2018 Presentation
Napatech Q1 2018 Presentation May 8, 2018 1 Napatech A/S © Copyright 2018
Slide 2: Highlights
Highlights ▪ Sales performance for Q1 2018 ▪ 52% decrease in USD sales for Q1 2018 ▪ 61% decrease in DKK Revenue for Q1 2018 ▪ Pandion business ▪ 11% of our sales in Q1 coming from Pandion products ▪ Progress in business strategy ▪ Progress in business transition towards a software delivery model, b
Slide 3: Napatech Q1 2018 Financials
Napatech Q1 2018 Financials 3 Napatech A/S © Copyright 2018
Slide 4: Q1 2018 Revenue
Q1 2018 Revenue Sales and Revenue Growth (YoY) 0% Comments: -10% • Revenue decline in Q1 is 61% -20% • The revenue for the period has been negatively influenced by the -30% postponement of customer projects and inventory reductions -40% • Currency has had a large effect as the USD exchange rate decr
Slide 5: Pandion Sales
Pandion Sales Pandion share of sales 12% Comments: • Pandion product mix sold: 10% • As a recorder solution for system integrators 8% • As recorder software and accelerators to OEM customers • As a DELL-branded recorder 6% through DELL 4% 2% 0% Q1 Q2 Q3 Q4 2017 2018 Note: Pandion share of sales are
Slide 6: Regional Revenue Distribution
Regional Revenue Distribution Quarterly revenue in MDKK Comments: 70 • North America growth affected by 60 -74% the postponement of customer projects and inventory reductions, 50 at a couple large OEM’s 40 • EMEA show progress due to timing of projects 30 6% • APAC decline due to timing of 20 projec
Slide 7: Gross Margin Development
Gross Margin Development Gross Margin 80% Comments: • The gross margin in Q1’18 is at 68%, a decrease compared to 75% Q1 2017 • The gross margin development is dependent on the following two 70% trends: • Larger volumes to strategic 65% accounts and changes in product mix are expected to drive the g
Slide 8: EBITDA Margin
EBITDA Margin EBITDA Margin 35% Comments: 30% • EBITDA margin Q1’18 is negative 71% 25% • EBITDA margin is lower in Q1 20% compared to last year. This is primarily due to the lower revenue and lower gross margin, as our 15% cost are very stable, the EBITDA margin is heavily dependent on 10% the reve
Slide 9: Financial Results Q1 2018
Financial Results Q1 2018 (Figures in MDKK) Q1 2018 Q4 2017 Q1 2017 Revenue 22.3 47.9 57.6 Growth YoY** (61%) (48%) 24% Gross Margin 68% 54% 73% EBITDA (15.8) (7.2) 9.4 EBIT (26.4) (16.5) (0.1) Cash flow from operating activities (7.9) 8.2 14.4 Cash and cash equivalents, end of quarter 20.2 40.0 47.
Slide 10: Business Highlights
Business Highlights 10 Napatech A/S © Copyright 2018
Slide 11: Recent Design Wins to Drive Future Business
Recent Design Wins to Drive Future Business APAC Top-3 Global Mobile Network Operator – 10 Gigabit SmartNIC ▪ Expanding 5G applications and services ▪ Machine learning, artificial intelligence, big data analytics ▪ Automated, real-time, performance analysis and troubleshooting This customer represen
Slide 12: Design-win Effect on Q1 Revenue
Design-win Effect on Q1 Revenue ▪ Design wins during the last 5 quarters delivered 28% Pandion DWs of the overall Q1 2018 revenue SmartNIC DWs ▪ Pandion business delivered 10% of the overall revenue in Q1 is based on design-wins secured in 2017 and 2018 ▪ The SmartNIC business delivered 18% of the o
Slide 13: Company Key Highlights
Company Key Highlights ▪ Hosted 2018 Capital Markets Day ▪ Outlined execution plans supporting our corporate strategy ▪ Content and video’s avaible on our website ▪ Extending Reach To Emerging End-User Markets ▪ Hired industry expert, global vice president of channels sales ▪ Enterprise, government,
Slide 14: This is Napatech
This is Napatech Today focus on: Our strategy, market opportunities and time line 14 Napatech A/S © Copyright 2018
Slide 15: Four Strategic Pillars Underpin Our Business Aspirations
Four Strategic Pillars Underpin Our Business Aspirations to Win the Emerging Reconfigurable Computing Opportunities ▪ Napatech will continue to Dominate our incumbent packet capture market and maintain the strategic relationships established with market leading key customers and partners Dominate Ex
Slide 16: Moving to Higher Volume, Higher Growth Market Opportunities
Moving to Higher Volume, Higher Growth Market Opportunities within Reconfigurable Computing Expand into higher volume Dominate adjacent markets Expand Existing Adjacent Packet Capture Inline Cybersecurity Solutions Solutions Establish beach-head Explore new and secure first wins in cloud application
Slide 17: High-Growth Applications Benefit from Reconfigurable Computing
High-Growth Applications Benefit from Reconfigurable Computing Cyber Security Big Data Mobile Infrastructure Testing Firewall Analytics 5G Load Balancer Quality of Experience Next-Gen Firewall Trading CORD SD-WAN Service Assurance Intrusion Detection Recording vEPC V-CPE Performance Monitoring Intru
Slide 18: End Users Benefit from Reconfigurable Computing
End Users Benefit from Reconfigurable Computing Napatech aims to be the provider of Reconfigurable Computing Platforms for every IT organization providing hyper-scale hardware performance with the speed of software innovation Cloud and Data Service Enterprise Infrastructure and Center Services Provi
Slide 19: Rapidly Expanding Market Opportunity With New Routes to Market
Rapidly Expanding Market Opportunity With New Routes to Market - Our Point of View In 2022 15 million platforms Appliance Cloud and Data Service Server Enterprise Infrastructure and ▪ Standard servers and OEM and ODM Center Services Provider NFV OEM and ODM Data Center Defense Data Center appliances
Slide 20: Outlook
Outlook 20 Napatech A/S © Copyright 2018
Slide 21: Napatech is perfectly positioned for the market shift to Reconfigurable Computing
Napatech is perfectly positioned to take advantage of the market shift to Reconfigurable Computing Platforms ▪ Napatech is one of the few companies in the world with the expertise to deliver world-class FPGA-based application-driven solutions ▪ Napatech is focused on managing and growing our Existin
Slide 22: Management's Outlook
Management’s Outlook ▪ We have a sharp focus at being Application Driven to align with the leading Comments: cloud, mobile, IoT and security applications and services that are behind the current network transformations. Our strategy is Software Centric in order to Guidance for 2018: provide the most
Slide 23: 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 23 Napatech A/S © Copyright 2018