corporate presentation · virtual reality spectra7 target markets: high value, high growth,...
TRANSCRIPT
Corporate Presentation
Spectra7 Overview
• High performance analog semiconductor company targeting high value, high
growth markets with patented advanced signal processing technology
• Headquartered in San Jose, California.
4From
bulky data, audio,
power & video
cables.
1To
Ultra-thin and
light-weight
interconnect.
Spectra7 makes electronic products
smaller, lighter, and faster.
2
Investment Highlights
Focused, targeted go-to-market strategies fuelling business momentum
New transformative design win pipeline with industry leaders in AR/VR/MR
Encouraging market acceptance and testing of Data Center products
Growing presence in the Blockchain space
Operational efficiency programs supporting improved margin performance
I
II
III
IV
V
3
Share Structure and Key Statistics
Share Price $ 0.21 CAD*
Market capitalization $ 36.2M CAD*
TTM revenue (12/31/17) $ 10.6 M
TTM gross margin (12/31/17) 58%
Insider ownership 4.5% Est.
Shares %
*As of 2/28/18 Market Close
Listed as SEV
Common shares issued 172 M 100
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Spectra7 Team
Dr. Andrew KimCTO & VP,ENGINEERING
20 Years Experience: Samsung, Intersil
Raouf HalimCEO
CEO icClarityCEO Mindspeed Technologies
32 Years Experience
Darren MaCFO
15 Years Experience in FinanceIntel, Semtech, GigPeak
John MitchellCHIEF MARKETING OFFICER20 years of Product Marketing:
Intersil, Quellan
Antony Ng YukshingVP, OPERATIONS
23 years Semiconductor Engineering Cypress, Marvell
Ebrahim AbunasrahVP, INTERCONNECT PRODUCT
GROUP10 years Product Development
Molex
Gerald HamiltonSENIOR VP, WORLDWIDE SALES
27 Years Semiconductor Experience: Mindspeed, Conexant
High Gross Margin / Single Sourced / Secured by over 50 Patents
The Leader in Active Copper Cable Technology
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Augmented/ Mixed Reality
Data Center & Blockchain
Virtual Reality
Spectra7 Target Markets: High Value, High Growth,
Disruptive Technologies
1-Estimated Hardware Revenue from Digi Capital(2016)
2- Gartner (2016)
$6 billion by 20201
3D gaming- Immersive Content -VR social
platforms
$4 billion market in 20192
Cloud Infrastructure - Cryptocurrency – Blockchain
processing
$42 billion by 20201
Workplace collaboration-Virtual desktop Increased
productivity- Job training
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Spectra7’s Target Markets
AR/VR/MR
Data Center
Blockchain
• Introducing Disruptive Technology
• Explosive Growth Potential
• High Margin Opportunity
Source: Ovum
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Poised to Enter Data Center Market
Glo
bal D
CI
Rev
en
ue, $M
Multi-slot Small Form Factor
Ovum, 2016
Data Center Interconnect Optical Revenue
58.5% CAGR
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Replacement Opportunity: Compelling Efficiency Gains
Up to 90% power reduction over fiber1
Up to 65% lower cost over fiber1
Major Recent Developments:
▪ Collaboration with Foxconn, Luxshare, and
Amphenol, 3 of 6 interconnect suppliers who serve 10
major Data Center Operators.
▪ Six new customer design-ins in Q4 2017.
▪ Significant increase in prototype orders in Q1’18.
▪ Revenue expected to ramp in 2018.
1. Company Estimates
2. Ovum: Ovum Says it is Good to be a Data Center Interconnect Supplier (2015) 10
Spectra7 Proposition: Design Drives Value
Up to 10X reduction in
cable diameter
Passive cable bundle
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Data Center Architecture for Blockchain
Blockchain Architecture
Market DriversBitcoin
Crypto CurrenciesBaaS
Ethereum
Smart Contracts
Blockchain Architecture
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Spectra7 Increases Efficiency of
Blockchain Processing
- Breakthrough Low Power
Up to 80% lower power than competing solutions.
- High Performance
Scalable interconnect solutions from 25-400Gbps.
- Low Cost
Typically 50% cost of competing solutions.
QSFP-DD 200/400G QSFP28 100/200G SFP28/DD 25/50G
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Example Blockchain Operators & Customers
• Major Operators and
OEMs have Blockchain
Initiatives
• Cloud and Hyper-Scale
offer Blockchain as a
Service (BaaS)
• Spectra7 is teaming
with cable partners to
leverage it’s unique
patented active cable
technology.
Blockchain Landscape
14
New Design Driving Growth: DreamWeVR™
Spectra7’s 4 new chips featuring
SpectraLinear™ technology enabling
AR, VR, and MR devices to drive
resolutions of 4K / 5K with low latency
over an ultra-thin unified interconnect.
Potential Applications for Spectra7’s
ultra-thin wearable interconnects:
• UHD Video
• Data Control
• Gesture recognition
• Gyro interface
Up to 50 Gbps15
Spectra7’s VR/MR Market Leadership Position
• $299 price point set by
Windows10 MR is driving
increased adoption
• Initial Valve and Microsoft
Games coming to Win10
for Holiday Sales and
Chinese New Year
• Record Content and
Software investments in
2H17 will drive robust
hardware sales in 2018
and beyond
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Investment Highlights
Focused, targeted go-to-market strategies fuelling business momentum
New transformative design win pipeline with industry leaders in AR/VR/MR
Encouraging market acceptance and testing of Data Center products
Growing presence in the Blockchain space
Operational efficiency programs supporting improved margin performance
I
II
III
IV
V
17