Slide 1: Q2'20 Financial Results
July 30, 2020 Q2’20 Financial Results July 30, 2020 Page 1
Slide 2: Cautionary Statement Regarding Forward Looking Statements
Cautionary Statement Regarding Forward Looking Statements Forward Looking Statements: Certain statements contained in this presentation may be considered forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, including statements regarding market
Slide 3: Business Update
Business Update July 30, 2020 Page 3
Slide 4: Summary
Summary Quarter Revenue Non-GAAP EBITDA(1) Non-GAAP EPS(1) $150.0M 11.3% $138.9M $144.1M $0.17 7.9% 6.3% $0.02 $0.00 Q2'19 Q1'20 Q2'20 Q2'19 Q1'20 Q2'20 Q2'19 Q1'20 Q2'20 • Strong RF tester demand for • Consolidation reducing cost • Mobility leading the growth 5G connectivity, consumer and optimizin
Slide 5: Market Segmentation
Market Segmentation(1) 52% 48% Recurring Systems 15% 10% 9% 5% 4% 3% 2% All Markets Mobility PCB Consumer Automotive Industrial & Computing & IoT / IoV & Manufacturing Medical Network Optoelectronics - Contactors & Pins - RF 5G to mmWave - Multilayer PCBs - Digital TVs, FPD - Autonomous driving - Au
Slide 6: Expertise in 5G RF High Volume Manufacturing
Expertise in 5G RF High Volume Manufacturing Time to Yield One-stop-shop for leading edge integrated RF solutions Accelerates accelerates “time to yield” Higher Signal Integrity Time to Yield Integrated OTA Solutions Higher RF measurement performance with integrated test solutions to the DUT Proven
Slide 7: Q2'20 Financials and Q3'20 Guidance
Q2’20 Financials and Q3’20 Guidance July 30, 2020 Page 7
Slide 8: Q2'20 Non-GAAP Results
Q2’20 Non-GAAP Results Q1’20 Q2’20 Q2’20 Actual Guidance(2) Actual Sales $138.9M $130 - $155M $144.1M Gross Margin(1) 41.7% 39% - 42% 42.5% Operating Expenses(1) $52.1M ~$49M $47.9M Non-GAAP EPS(1) $0.00 $0.17 Adjusted EBITDA(1) 6% ~8% 11% Mobility (RF test) and PCB tester sales remain strong; Aut
Slide 9: Business Model Delivers Strong Leverage
Business Model Delivers Strong Leverage Mid-Term Business Model for FY20 Target Quarterly Sales $150M $170M $190M $210M $235M Gross Margin(1) 43% 44% 45% 46% 48% Operating Expenses(1) $52M $54M $57M $59M ~$64M Adjusted EBITDA(1) 12% 15% 17% 20% 22% Non-GAAP EPS(1) $0.16 $0.30 $0.45 $0.60 $0.75 Tem
Slide 10: Balance Sheet
Balance Sheet [$Million] Q1’20 Q2’20 Cash and Investments $172 $164 Accounts Receivable $113 $123 Total Debt $360 $363 Capital Additions $1.6 $6.4 Cash Flow From Operations $17.8 ($4.5) Cash balance $163.6M at end of June; cash position supports operational needs (~$80M), funding for anticipated p
Slide 11: Q3'20 Outlook
Q3’20 Outlook Q2’20 Q3’20 Actual Guidance Sales $144.1M $134 - $146M Gross Margin(1) 42.5% 41% - 44% Operating Expenses(1) $47.9M ~ $48M Adjusted EBITDA(1) 11% ~ 11% (mid-point of guidance) Low end of sales guidance considers potential supply chain uncertainty caused by COVID-19 plus risks associa
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 and Adjusted EBITDA that supplement the Company’s Condensed Consolidate
Slide 13: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation 3 Months Ending 3 Months Ending 3 Months Ending Jun 29, Diluted Mar 28, Diluted Jun 27, Diluted Earnings Reconciliation 2019 EPS 2020 EPS 2020 EPS Loss From Continuing Operations - GAAP $ (19,383) $ (0.47) $ (17,318) $ (0.42) $ (4,740) $ (0.11) Share Based Compensatio
Slide 14: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation 3 Months Ending 3 Months Ending 3 Months Ending Jun 29, % of Net Mar 28, % of Net Jun 27, % of Net Gross Profit Reconciliation 2019 Sales 2020 Sales 2020 Sales Net Sales $ 150,011 $ 138,921 $ 144,084 Gross Profit - GAAP 62,406 41.6% 56,084 40.4% 60,957 42.3% Share Bas