Slide 1: Q3 2016 Presentation – Henrik Brill Jensen, CEO
November 8th, 2016 – Henrik Brill Jensen, CEO Napatech A/S Copyright 2016 1 Napatech A/S Copyright 2016
Slide 2: Q3 2016 highlights
USD sales in Q3 2016 was 7.5 MUSD EBITDA in Q2 2016 was 6.1 MDKK 18% decrease compared to Q3 2015 5.5 MDKK decrease compared to Q3 2015 12% EBITDA margin in Q3 2016 Revenue in Q3 2016 was 49.6 MDKK 18% decrease compared to Q3 2015 EBIT in Q3 2016 was negative 3.6 MDKK 6% increase compared
Slide 3: Q3'16 key financials
Q3’16 Q2’16 Q3’15 Revenue (MDKK) 49.6 46.6 60.4 Growth YoY* (18%) 9% 36% Gross Margin 71% 73% 70% EBITDA (MDKK) 6.1 3.2 11.6 EBT (MDKK) (3.0) (3.8) 5.5 Cash flow from operating activities (MDKK) 10.0 (11.3) 3.1 Cash and cash equivalents, end of quarter (MDKK) 48.0 48.5 51.2 * YoY is the growth of cu
Slide 4: Sales / Revenue Growth (YoY)
Sales / Revenue Growth (YoY) Influencing factors: Decline in business is the effect of 0% OEM customers being delayed with -2% their own ramp-up of new platforms -4% based on Napatech’s available and latest technologies. The revenue -6% reported for the third quarter of 2016 -8% is therefore affec
Slide 5: Gross Margin
Gross Margin Margin development: The gross margin in Q3’16 is at the 80% expected level around 70% 75% 70% 65% 60% 2011 2012 2013 2014 2015 2016 YTD 5 Napatech A/S Copyright 2016
Slide 6: EBITDA Margin
EBITDA Margin Q3 2016 EBITDA margin: EBITDA margin is lower in Q3 25% compared to last year, due to less revenue in the quarter 20% 15% 10% 5% 0% Q1 Q2 Q3 Q4 2015 2016 6 Napatech A/S Copyright 2016
Slide 7: Quarterly Revenue in MDKK
Quarterly Revenue in MDKK Geographical split: North America showed a significant 50 decline of 34% compared with Q3 2015, related to a couple of large 40 OEM customers EMEA showed a significant growth of 30 60% driven by ramp up of design wins secured in 2016 20 APAC showed a growth of 100% bu
Slide 8: Our focus areas
Our focus areas Target trend Target Comment 2016 Target 2016 YTD Revenue Deliver to guidance ~ 20% growth 3% decrease Gross Margin Influenced by new product line(s) and go to market strategy ~ 70% 72% Overall Costs Improved overall profitability by sustained scalability 5% increase 2% increase EBITD
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Slide 10: Expanding Napatech business into new areas
In 2016 we have had sharp focus on expanding Napatech business into new areas with market leading customers providing future growth potential Our Pandion business is progressing well with major design win as the most important step forward In addition to our traditional OEM business we have se
Slide 11: IBM QRadar cyber security case
Challenge NAPATECH UNIQUENESS Captures all the data even at In the battle against cyber attacks, many organizations rely on security solutions that sustained max traffic capture just a fraction of the network data. This only provides partial visibility, which means Industry-leading retention tim
Slide 12: Yahoo data center case
Challenge NAPATECH UNIQUENESS Captures all the data even at 40G To meet demands for increased capacity, data centers are urgently seeking to introduce and 100G. At these speeds, other higher network speeds. But finding a solution that enables network visibility at 40G and solutions are likely to d
Slide 13: Facebook storage case
Challenge NAPATECH UNIQUENESS Captures all the data even at Enterprises need the ability to investigate any suspicious network events. But due to volume, it sustained max traffic is impossible to investigate everything in real time; data must therefore be recorded and stored Co-creation ensuring
Slide 14: Splunk Pandion case
Challenge NAPATECH UNIQUENESS Captures all the data, even at Splunk Enterprise is a $670 million industry-leading data search and analysis tool. sustained max traffic – where other However, it cannot provide full recording of high speed network traffic which could solutions would struggle to deliv
Slide 15: Accelerator design wins
10 Gigabit Accelerator design win with a European network monitoring company for a security solution for public sector 10 Gigabit Accelerator design win with US based Tier 1 Security Company for a security solution 10 Gigabit Accelerator design win with a European network monitoring company fo
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Slide 17: Guidance for full year 2016
Napatech has previously stated an ambition of 15% to 20% growth for Guidance for full year 2016 is now: 2016. We still believe it is possible, based on the opportunities in our Revenue growth of 5% - 15% current pipeline and the orders received to date, to achieve the low end Pandion contribut
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Slide 19: Forward-looking statements
This presentation includes and is based, inter alia, Napatech A/S’ businesses, energy prices, market 2016 results presentations. Information contained on forward-looking information and statements that acceptance of new products and services, within will not be updated. The following slides are subj
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