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Page 1: Corporate Presentation · Virtual Reality Spectra7 Target Markets: High Value, High Growth, Disruptive Technologies 1-Estimated Hardware Revenue from Digi Capital(2016) 2- Gartner

Corporate Presentation

Page 2: Corporate Presentation · Virtual Reality Spectra7 Target Markets: High Value, High Growth, Disruptive Technologies 1-Estimated Hardware Revenue from Digi Capital(2016) 2- Gartner

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

Page 3: Corporate Presentation · Virtual Reality Spectra7 Target Markets: High Value, High Growth, Disruptive Technologies 1-Estimated Hardware Revenue from Digi Capital(2016) 2- Gartner

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

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III

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Page 4: Corporate Presentation · Virtual Reality Spectra7 Target Markets: High Value, High Growth, Disruptive Technologies 1-Estimated Hardware Revenue from Digi Capital(2016) 2- Gartner

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

4

Page 5: Corporate Presentation · Virtual Reality Spectra7 Target Markets: High Value, High Growth, Disruptive Technologies 1-Estimated Hardware Revenue from Digi Capital(2016) 2- Gartner

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

Page 6: Corporate Presentation · Virtual Reality Spectra7 Target Markets: High Value, High Growth, Disruptive Technologies 1-Estimated Hardware Revenue from Digi Capital(2016) 2- Gartner

High Gross Margin / Single Sourced / Secured by over 50 Patents

The Leader in Active Copper Cable Technology

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Page 7: Corporate Presentation · Virtual Reality Spectra7 Target Markets: High Value, High Growth, Disruptive Technologies 1-Estimated Hardware Revenue from Digi Capital(2016) 2- Gartner

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

7

Page 8: Corporate Presentation · Virtual Reality Spectra7 Target Markets: High Value, High Growth, Disruptive Technologies 1-Estimated Hardware Revenue from Digi Capital(2016) 2- Gartner

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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Page 9: Corporate Presentation · Virtual Reality Spectra7 Target Markets: High Value, High Growth, Disruptive Technologies 1-Estimated Hardware Revenue from Digi Capital(2016) 2- Gartner

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

9

Page 10: Corporate Presentation · Virtual Reality Spectra7 Target Markets: High Value, High Growth, Disruptive Technologies 1-Estimated Hardware Revenue from Digi Capital(2016) 2- Gartner

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

Page 11: Corporate Presentation · Virtual Reality Spectra7 Target Markets: High Value, High Growth, Disruptive Technologies 1-Estimated Hardware Revenue from Digi Capital(2016) 2- Gartner

Spectra7 Proposition: Design Drives Value

Up to 10X reduction in

cable diameter

Passive cable bundle

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Page 12: Corporate Presentation · Virtual Reality Spectra7 Target Markets: High Value, High Growth, Disruptive Technologies 1-Estimated Hardware Revenue from Digi Capital(2016) 2- Gartner

Data Center Architecture for Blockchain

Blockchain Architecture

Market DriversBitcoin

Crypto CurrenciesBaaS

Ethereum

Smart Contracts

Blockchain Architecture

12

Page 13: Corporate Presentation · Virtual Reality Spectra7 Target Markets: High Value, High Growth, Disruptive Technologies 1-Estimated Hardware Revenue from Digi Capital(2016) 2- Gartner

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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Page 14: Corporate Presentation · Virtual Reality Spectra7 Target Markets: High Value, High Growth, Disruptive Technologies 1-Estimated Hardware Revenue from Digi Capital(2016) 2- Gartner

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

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Page 15: Corporate Presentation · Virtual Reality Spectra7 Target Markets: High Value, High Growth, Disruptive Technologies 1-Estimated Hardware Revenue from Digi Capital(2016) 2- Gartner

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

Page 16: Corporate Presentation · Virtual Reality Spectra7 Target Markets: High Value, High Growth, Disruptive Technologies 1-Estimated Hardware Revenue from Digi Capital(2016) 2- Gartner

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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Page 17: Corporate Presentation · Virtual Reality Spectra7 Target Markets: High Value, High Growth, Disruptive Technologies 1-Estimated Hardware Revenue from Digi Capital(2016) 2- Gartner

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