Slide 1: Napatech Q3 2018 Presentation
Napatech Q3 2018 Presentation November 6, 2018 1 Napatech A/S © Copyright 2018
Slide 2: Business Highlights
Business Highlights Napatech A/S © Copyright 2018
Slide 3: Important Steps Towards Stabilizing Business Operations
Important Steps Towards Stabilizing Business Operations Revenue Sales focus balanced between near-term and long-term opportunities Improving effectiveness of channel partners to improve access to new revenue Cash Cash preservation, and actions to increase cash position Improve business o
Slide 4: One-Off Adjustment to Reduce Accumulated Inventory
One-Off Adjustment to Reduce Accumulated Inventory Commercial decision to take one-off adjustment to reported revenue of approximately -20 MDKK in Q3 2018 to reduce accumulated inventory within the company’s channel Goal to provide greater sales stability for Napatech stronger relationships wi
Slide 5: Divestiture of Pandion Product Line
Divestiture of Pandion Product Line Agreement to sell Pandion product line to CounterFlowAI Transfer of intellectual property and partnership agreements Up front payment with an earn-out installment over 12 months Win-win partnership where both companies have a mutual interest in building th
Slide 6: Benefits of Divestiture of Pandion Product Line
Benefits of Divestiture of Pandion Product Line Re-focus on FPGA core competencies Stronger focus on sales of our core and emerging products Improved internal operational efficiency Improved cash on hand 6 Napatech A/S © Copyright 2018
Slide 7: Napatech Business Strategy
Napatech Business Strategy Our expertise in FPGA technology is the cornerstone of our core competencies 7 Napatech A/S © Copyright 2018
Slide 8: Napatech Technology Improves Application Performance
Napatech Technology Improves Application Performance • Faster Application Performance • Offload CPU compute intensive workloads Get More Out Of Every System Reduce System Costs Reduce Time On Complex Tasks 12 60 16 12 16 11 OVS Port-to-Port Roundtrip Throughput MPPS 14 10 50 9 12 Compression Time (m
Slide 9: Major Step with Software Port on Intel PAC Hardware
Major Step with Software Port on Intel PAC Hardware Dominate Packet Capture Software Application Driven Target Major Applications Napatech continues to make software investments that are application- driven, and hardware independent, working closely with the top-2 global Software Focused Software-On
Slide 10: Major Step with FPGA As-A-Service In The Cloud
Major Step with FPGA As-A-Service In The Cloud Explore IPSec Crypto As-A-Service Napatech continues to make software Application Driven Target Networking Applications investments that are application- driven, and hardware independent, working closely with the top-2 global suppliers of FPGAs. Softwar
Slide 11: Napatech Sits at the Crossroads of two major market forces
Napatech Sits at the Crossroads of two major market forces Reconfigurable Computing Artificial Solutions will win Intelligence because they enable Machine on-demand support of Learning specific application needs Cloud or in other words Infrastructure hardware at the speed of software innovation SDN/
Slide 12: Napatech Q3 2018 Financials
Napatech Q3 2018 Financials Napatech A/S © Copyright 2018
Slide 13: Q3 2018 Financial Highlights
Q3 2018 Financial Highlights • Sales of 4.8 MUSD, a 53% decline YoY, and +20% over Q2 2018 • Revenue of 5.1 MDKK, a 88% decline YoY, and 79% decline over Q2 2018 • Revenue prior to one-off adjustments would have been 24.6 MDKK • Gross margin was -106% compared to 72% in Q3 2017. • Gross Margins prio
Slide 14: Q3 2018 Financial Highlights (cont'd)
Q3 2018 Financial Highlights (cont’d) • EBITDA was -33.1 MDKK, a decline from 2.1 MDKK YoY • EBITDA prior to one-off adjustments would have been -10.8 MDKK • EBITDA margin was -644%, a decline from 5% YoY • EBITDA margin prior to one-off adjustments would have been -43% • Depreciation & amortization
Slide 15: Financial Results Q3 2018
NOTE: Reported numbers are materially affected by the commercial decision to take a one-off adjustment to Financial Results Q3 2018 reported Revenue in the third quarter of 2018 to reduce accumulated inventory within the company's channel. (Figures in MDKK) Q3 2018 Q2 2018 Q3 2017 Revenue 5.1 24.7 4
Slide 16: Outlook
Outlook Napatech A/S © Copyright 2018
Slide 17: Management's Outlook
Management’s Outlook As previously communicated, we expect an improvement in revenues in the Comments: second half of 2018 compared to the weakness experienced in the first half. Guidance for FY 2018: We expect sales for the second half of 2018 at 12 MUSD within a range of 10 to 15 MUSD, compare
Slide 18: Q&A Session
Q&A Session WANT TO LEARN MORE? Sign up for the Napatech News Sign up for OSE news Follow us on social media 18 Napatech A/S © Copyright 2018