Macom Technology Solutions Holdings, Inc. · NASDAQ:MTSI
Macom Technology Solutions — Investor Presentation (May 2012)
22 slides from Macom Technology Solutions's investor presentation, May 22, 2012
Slide 1: M/A-COM Technology Solutions Holdings
Exhibit 99.1 M/A-COM Technology Solutions Holdings May 22, 2012
Slide 2: Forward-Looking Statement Safe Harbor and Use of Non-GAAP Financial Measures
2 Forward-Looking Statement Safe Harbor and Use of Non-GAAP Financial Measures This presentation will include forward-looking statements by us within the meaning of the Private Securities Litigation Reform Act of 1995, and any related Q&A discussion may include such statements as well. Forward-looki
Slide 3: M/A-COM Tech Snapshot
3 Broad End-Markets / Applications Strong Product Portfolio Global Presence Diverse Customer Base 3 • 60-year heritage of innovation • $310M of FY 2011 revenue • 2,700+ products across 38 product lines • 6,000+ customers worldwide • Global, multi-channel sales strategy • Differentiated “Fab-Lite” mo
Slide 4: Large and Growing End Markets
A&D – 36% Multi-market – 39% 4 Large and Growing End Markets CATV / Broadband Wireless Backhaul VSAT Terminals Fiber Optics Military Communications Electronic warfare Space & Hi-Rel Industrial & Medical Radar – Air, Ground & Sea Test & Measurement Mobile Devices Automotive • Numerous applications in
Slide 5: Broad & Innovative Product Portfolio
5 Integrated Circuits Power Pallets & Transistors Passive Components Switch Limiters, Switches, Diodes Active Components Multi-Chip Modules 5 Broad & Innovative Product Portfolio 1 MHz Radio Frequency 6 GHz Microwave 20 GHz 110 GHz Millimeter Wave Industrial Broad- band Wireless Data, Toll Tags GPS,
Slide 6: Growth Strategy with Multiple Drivers
6 Growth Strategy with Multiple Drivers NEW PRODUCTS / PRODUCT LINES OPPORTUNISTIC ACQUISITIONS NEW ADJACENT MARKETS INTEGRATED SOLUTIONS GaN Transistors & Smart Pallets 40G / 100G Optoelectronics 38 GHz SmartSet
Slide 7: Market Overview
MARKET OVERVIEW
Slide 8: Networks Overview
8 8 Networks Overview 1. 2010 Cisco Visual Networking index. Wireless Backhaul Satellite Internet CATV / Broadband Fiber Optics • Proliferation of smartphones, tablets, video on demand services • Infrastructure expansion & upgrades for greater capacity and faster speeds Exabytes 2010 2011 2012 2013
Slide 9: Networks Product Highlight: Optoelectronics
9 • Multiple design wins for modulator driver and TIA products for 100G • Ramp in production with 100G long haul customer • At OFC, our EML driver used in customer demonstration of 100GbE CFP2 • Ovum forecasts double digit CAGR for 100G ramping in late CY 2012 thru 2013 Networks Product Highlight: O
Slide 10: Aerospace & Defense Overview
10 Market Drivers Applications Key Customers Aerospace & Defense Overview 1. The Teal Group. • UAV market to double over next decade (1) • Electronic content growth in A&D – phased array radars with 1000s of T/R modules Radar Electronic Warfare Military Communications Space & Hi-Rel World Unmanned A
Slide 11: A&D Product Highlight: GaN Smart Pallet
11 • GaN Smart Pallet incorporates hybrid PA technologies & intelligent bias circuitry • Compact module optimizes performance, reliability and cost for customer • Sole source design win with US Defense customer for mortar locating radar • 20 units to be delivered this year with full rate production
Slide 12: Multi-market Overview
12 Market Drivers Applications Key Customers Multi-market Overview 1. IC Insights. 9% CAGR from 2010-2014. • Increasing semiconductor content per automobile – 9% CAGR (1) • Solutions for medical imaging, life sciences, and test & measurement • Broad portfolio of catalog products Automotive Mobile De
Slide 13: Multi-market Highlight: Automotive
13 • Ford is only >10% customer for patented GPS “Sync” Module • Module enables dead reckoning feature & eliminates need for antenna fin • Marketing ADAS prototype with NAVTEQ for energy efficiency & enhanced safety • Other automotive applications include sensor products for short range radar Multi-
Slide 14: Competitive Advantage
COMPETITIVE ADVANTAGE
Slide 15: Advanced R&D Capabilities
15 Advanced R&D Capabilities • System level approach to solutions that enable fast time to market for customer • Combines unique modeling, IC design, integration & packaging capabilities • A leader in RF front end architecture for wireless backhaul with “SmartSet” solution • Innovation in surface mo
Slide 16: Differentiated Fab-Lite Model
Internal Process Technologies External Process Technologies 16 AlGaAs Diodes GaAs MESFET GaAs pHEMT HMIC Technology Silicon Bipolar Silicon Diodes Silicon LDMOS Silicon MOSFET GaAs HBT GaAs HFET GaAs MESFET GaAs pHEMT GaN on SiC InP HBT RF CMOS SiGe • Owning a fab is a competitive advantage – Propri
Slide 17: Financial Overview
FINANCIAL OVERVIEW
Slide 18: Revenue and Gross Margin Expansion
Revenue by Fiscal Quarter Gross Margin** by Fiscal Quarter 18 ($ in millions) Revenue and Gross Margin Expansion * Q3 FY 2012 guidance announced as of May 8, 2012 ** Non-GAAP: Excludes amortization and non-cash compensation expenses. $78-82* 48-50%* $57 $61 $68 $74 $75 $78 $79 $79 $73 $77 $0 $10 $20
Slide 19: 2-Year Target Operating Model
19 FY 2010 FY 2011 Q2 FY 2012 Target Model 2-Year Target Operating Model ($ in millions / % of revenue) Revenue $260 $310 $77 Above Market Growth Gross Margin (1) 37% 43% 48% 55% – 60% Operating Margin (1)(2) 10% 17% 23% 30% – 35% 1. Non-GAAP: Excludes amortization and non-cash compensation expenses
Slide 20: Strong Cash Flow & Balance Sheet
20 Annual Operating Cash Flow As of March 30, 2012 Strong Cash Flow & Balance Sheet First Half FY’12 Operating Cash Flow - $18.2 Cash & Equivalents - $74.7 Working Capital - $130.6 Debt Free Unused and Available Line of Credit - $125.0 ($ in millions) $20.7 $32.8 $ - $10 $20 $30 $40 FY 2010 FY 2011
Slide 21: Appendix
Appendix
Slide 22: Reconciliation of GAAP to Non-GAAP Results
22 Reconciliation of GAAP to Non-GAAP Results ($ in thousands) Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 FY 2010 FY 2011 Revenue $57,405 $61,014 $67,705 $74,173 $74,909 $77,884 $78,700 $78,802 $73,035 $77,480 $260,297 $310,295 GAAP Gross Profit $19,419 $21,315 $
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