Slide 1: Q2'23 Financial Results
August 3, 2023 Q2’23 Financial Results August 3, 2023 Page 1
Slide 2: Cautionary Statement Regarding Forward Looking Statements
Cautionary Statement Regarding Forward Looking Statements Forward Looking Statements: Certain statements contained in this release and accompanying materials may be considered forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, including statem
Slide 3: Business Update
Business Update August 3, 2023 Page 3
Slide 4: Summary
Summary Revenue Non-GAAP Gross Margin(1) Adj. EBITDA(1) $217.2M 24.9% 48.2% 47.8% 46.5% 21.1% $179.4M 19.7% $168.9M Q2'22 Q1'23 Q2'23 Q2'22 Q1'23 Q2'23 Q2'22 Q1'23 Q2'23 • Soft business conditions with • GM expanded +130 bps YoY • Est. test cell utilization down automotive moderating and ✓ Different
Slide 5: Diverse Revenue Profile
Diverse Revenue Profile Recurring Systems Key Business Drivers Key Business Drivers • More stable Automotive 20% • Better visibility for recurring revenue Q2’23 thermal handlers • DI-Core software • Auto moderating Recurring 48% Revenue • Service business $168.9M Industrial 11% • Weak mobility Non-G
Slide 6: Resilient Recurring Business Model
Resilient Recurring Business Model $330M $149M > 24,500 310+ LTM(1) Recurring LTM(1) Service Systems Installed Highly Skilled Field Revenue Revenue Base Service Engineers 7.0% > 87% > 100 ~ 12 year 3-year CAGR (2) Annual Renewal Rate Customers Average Tenure on service contracts Stable revenue at Cl
Slide 7: Q2'23 Financials and Q3'23 Guidance
Q2’23 Financials and Q3’23 Guidance August 3, 2023 Page 7
Slide 8: Q2'23 Non-GAAP Results
Q2’23 Non-GAAP Results Q1’23 Q2’23 Q2’23 Actual Guidance(2) Actual Revenue $179.4M $161 - $173M $168.9M Gross Margin(1) 48.2% ~ 47% 47.8% Operating Expenses(1) $52.3M ~ $52M $50.8M Non-GAAP EPS(1) $0.56 $0.48 Adjusted EBITDA(1) 21.1% ~18% 19.7% ❑ Q2 revenue higher than mid-point of guidance; profita
Slide 9: Target Revenue of $1B and $4.00 Non-GAAP EPS
Target Revenue of $1B and $4.00 Non-GAAP EPS Q2’23 FY2022 Mid-Term Actuals Actuals Target(1) Revenue $168.9M $812.8M $1B Gross Margin(1) 47.8% 47.2% 49% Operating Expenses(1) 30.1% 25.6% 24% Non-GAAP EPS(1) $0.48 $2.91 $4.00 Adjusted EBITDA(1) 19.7% 23.7% 26% Free Cash Flow(2) $50.1M $98.1M $180M ❑
Slide 10: Balance Sheet
Balance Sheet [$Million] Q1’23 Q2’23 Cash and Investments(1) $324 $372 Accounts Receivable $176 $144 Total Debt $45 $43 Capital Additions $5.1 $3.1 Cash Flow From Operations $16.5 $53.1 ❑ Strong Q2 cash flow from operations further strengthens balance sheet to support debt reduction, M&A investments
Slide 11: Q3'23 Outlook
Q3’23 Outlook Q2’23 Q3’23 Actual Guidance Revenue $168.9M ~$150M Gross Margin(1) 47.8% ~ 46% Operating Expenses(1) $50.8M ~$50M Adjusted EBITDA(1) 19.7% ~ 15% ❑ Q3 revenue lower on moderating automotive and industrial test demand, soft mobility market ❑ Resilient gross margin from differentiated pro
Slide 12: Appendix
Appendix Use of Non-GAAP Financial Information: This presentation includes non-GAAP financial measures, including non-GAAP Gross Margin/Profit, Income and Income (adjusted earnings) per share, Operating Income, Operating Expense, effective tax rate, free cash flow and Adjusted EBITDA that supplement
Slide 13: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation August 3, 2023 Page 13
Slide 14: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation August 3, 2023 Page 14
Slide 15: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation August 3, 2023 Page 15
Slide 16: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation 3 Months Ending 3 Months Ending Net Cash per Share Apr 1, 2023 Jul 1, 2023 Cash and Investments $ 324,295 $ 372,317 Less: Total Debt (44,140) (42,718) Net Cash $ 280,155 329,599 Weighted Average Shares - Diluted 48,171 48,028 Net Cash per Share $ 5.82 $ 6.86 August 3,