sales strategy - nasdaqfiles.shareholder.com/downloads/fnsr/0x0x240618/8d41d5c6-e1cc-41… · sales...

Todd Swanson, Senior Vice President

Sales Strategy

Communication Solutions for Tomorrow's Networks Communication Solutions for Tomorrow's Networks

1© 2008 Finisar Corporation

Financial Presentation and Forward Looking Statemen ts

� Forward Looking Statements � This presentation contains forward-looking statements as defined under the Private

Securities Litigation Act of 1995. Except for historical information, the matters discussed in this presentation contain forward-looking statements regarding future trends or events that involve risks and uncertainties. Please be aware that these statements are only predictions and that actual events or results may differ materially. Please refer to the Company’s Form 10-K and other interim reports as filed with the Securities and Exchange Commission for a discussion of those risk factors. The Company assumes no obligation to update the information in this presentation.

� GAAP Reconciliation� References to financial measures in this presentation include references to non-GAAP

financial measures. Finisar provides additional information regarding these non-GAAP financial measures and a complete reconciliation between GAAP and non-GAAP financial information for the periods included in this presentation (including with respect to the Optium fiscal fourth quarter ended August 2, 2008) in the Finisar earnings releases dated September 8, 2008, June 30, 2008 and June 12, 2007 and related materials located in the investor relations section of the company’s web site. Investors should note that (i) the Optium non-GAAP financial measures included in the September 8, 2008 earnings releases are calculated differently than and, therefore, are not necessarily comparable to similarly-titled Finisar non-GAAP financial measures and (ii) for periods following the Finisar-Optium merger, certain historical accounting policies for both companies, including the presentation of non-GAAP financial measures, will be changed in order to achieve consistency.


Agenda

� Products� Customers � Worldwide Team� Market Segments: Drivers, Size, Share and

Growth Opportunities� ROADM Video� Summary

4

OSAOSA WDM passivesWDM passives CML laserCML laser

XFPXFPX2/XENPAKX2/XENPAK

AnalogAnalogWSSWSS ROADM line cardROADM line card

300-pin300-pinSFPSFP

InterleaverInterleaver

GBICGBIC SFP+SFP+

CATVCATV

Finisar Optical Products – Broadest Line in the Indu stry

Active CableActive Cable


5

Industry’s Broadest Product Portfolio

SFP/ SFP+ XFP XAUI

10G Line Side 300-

pin Tunable

40G Client

Side 300-pin

40G Line Side 300-

pin Tunable

100 GHz ROADM

50 GHz ROADM FTTx CATV Passives Parallel

FinisarJDSU

Emcore

Avanex

OpLink

Sumitomo/Excelight

Bookham

Avago

CoAdna

Mintera

OpNext

Active Serial

Cables


© 2008 Finisar Corporation 6

Our Customers

SAN LAN Telecom

SAN and LAN

6

7

Our WW Sales Team

Direct Sales ( 27 total )

Distributors ( 16 total )

Reps ( 17 total )


WW Market Share – Transceivers/Transponders

Opnext 11%

Finisar 24%

Sumitomo 10%

Avago 10%

JDSU 8%

Other 19%

Emcore 5%

Oplink 5%

Source 8%

Source: Lightcounting 2008, Ovum-RHK 2008, SEC filings, internal estimates

Source: Lightcounting 2008, Ovum-RHK 2008, SEC filings, internal estimates

Finisar* 24%Finisar* 24%

CY 2007 revenue by vendor- SONET/SDH, Ethernet, Fibre Channel, WDM, Parallel and FTTx

CY 2007 revenue by vendor- SONET/SDH, Ethernet, Fibre Channel, WDM, Parallel and FTTx

and 36% by volumeand 36% by volume


*Post-merger Finisar*Post-merger Finisar

Total Market Size

� Total Market Size in CY07 = $2.3B, CY11=$3.2B � CAGR (CY07-11) = 9%

Source: Lightcounting, 2008

$-

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

2005 2006 2007 2008 2009 2010 2011

Sal

es ($

M)

Access

ROADMs

Telecom-WDM

Telecom-SONET

SAN (Fibre Channel)

LAN (Ethernet)


Storage Area Networking (SAN)

SAN

LAN

ET

HE

RN

ET

NIC Card

FC SwitchFIB

RE

CH

AN

NE

LE

TH

ER

NE

T

Metro

Server

Ethernet

Switch

Ethernet

Switch

SFP+

X2

XFP XPAK

SFP/SFP+ XFP

Data Center

SFP+

XENPAK

Tape Drive

RAID System

Metro Ethernet Link

(<80 km)

GBIC

SFP/GBICCopper

Intercampus ISL HBA

SFP/SFF

TDM/CWDM/DWDM


SFP/+ SFFSFP/+

0

50

100

150

200

250

300

2005 2006 2007 2008 2009 2010 2011

Sal

es (

$M)

Up to 2 Gbps Up to 4 Gbps Up to 8 Gbps Up to 16 Gbps

SAN – Storage Area Networking (Fibre Channel)

Market Drivers� World-wide storage capacity growth of 63% y/y

driven primarily by video applications� Virtualization (fewer servers, higher data rates, more

connections per server)� Industry transition from 4G to 8G � Drive to 16G in 2011


Market Metrics

� Total TAM in ‘07 = ~$216M(including longer-distance metro links)

� CAGR (’07 to ’11) = 7%


Growth Strategies Market Position

SAN – Storage Area Networking (Fibre Channel)


� Finisar Market Share� 4G: 55% � 8G: 60%

� Finisar growth > market

� Maintain leadership position in 4G/8G

� Develop next generation 8G transceivers for short and long reach applications

� Be first to market with 16G products early 2010

$-

$50

$100

$150

$200

$250

$300

2005 2006 2007 2008 2009 2010 2011

Sales

($M)

Addressed


Local Area Networking (LAN)

SAN

LAN

ET

HE

RN

ET

NIC Card

FC SwitchFIB

RE

CH

AN

NE

LE

TH

ER

NE

T

Metro

Server

Ethernet

Switch

Ethernet

Switch

SFP+

X2

XFP XPAK

SFP/SFP+ XFP

SFP/+

Data Center

XENPAK

Tape

Drive

RAID

System

SFP/+ SFF

Metro Ethernet Link

(<80 km)

GBIC

Intercampus ISL HBA

SFP/SFF

TDM/CWDM/DWDM

Router


Market Drivers Market Metrics

LAN – Local Area Networking (Ethernet)

� Data center consolidation/green Initiatives � Virtualization, Data Center Ethernet, FCoE� Need for high density 10G SFP+ Optics � High end servers driving 10G NIC card market� Adoption of 40/100GigE in 2010

$-

$200.0

$400.0

$600.0

$800.0

$1,000.0

2005 2006 2007 2008 2009 2010 2011

Sal

es ($M

)

Fast Ethernet GigE 1 GigE 10 GigE 40 GigE 100 Parallel


� Total TAM in ‘07 = ~$668M (including longer-distance metro links)

� CAGR (’07 to ’11) = 7%



LAN – Local Area Networking (Ethernet)

� Finisar Market Share:� 1GE: 36%� 10GE: 19%

� Enter New Markets� 10G Xaui = ~$147M� Parallel =~$68M


� Penetrate unaddressed 10G markets (XAUI)

� Develop full portfolio of SFP+� Execute with Laserwire product family including

parallel 40/100G

� Lead market with solutions for 40GE/100GE 100m/10/40km applications


$-

$200

$400

$600

$800

$1,000

$1,200

$1,400

2005 2006 2007 2008 2009 2010 2011

Sales

($M)

Unaddressed (Xaui)

Unaddressed (Parallel)

Addressed


ACCESS (Up to 100 km)

METRO-REGIONAL (100-1000 km)

LONG-HAUL (600-3000 km)

COCO

CO

CO

CO

CO

CO

COCO

CO

CO

CO

CO

CO

CO

CO

CO

CO

Fiber tothe Home

Cable TV

CommercialComplex

Wireless

Campus

XFP 10G 300 PIN

SFP

40G 300-PIN

Telecom – SONET/SDH


© 2008 Finisar Corporation



� Deployments of SONET/SDH - emerging marketsand legacy networks

� Mobile backhaul (proliferation of mobile video)� Need for next generation SFPs with industrial temp

and ROHS 6 for <=2.5G� Transition from 300pin to pluggable form factors � Very strong growth of 40G

$-

$100.0

$200.0

$300.0

$400.0

$500.0

$600.0

2005 2006 2007 2008 2009 2010 2011

Sal

es ($

M)

OC-3/OC-12 OC-48 OC-192 OC-768


� Total TAM ‘07 = ~$524M

(excl WDM)� CAGR (’07 to ’11) = -3%

� Growth in IP vs. SONET

� Growth in WDM (not included)

17



� Gain market share in all segments

� Continue cost reductions of SFP’s(Ind. Temp. and ROHS6)

� Release Ind. Temp. long reach XFP’s up to 200km

� Develop full portfolio of SFP+ modules up to 80km� Maintain leadership with small size 40G client side

short reach and long reach transponders


� Finisar Market Share� OC-3/12: 8% � OC-48: 17%� OC-192: 33%

� OC-768: 30%� Finisar growth > market

$-

$100

$200

$300

$400

$500

$600

2005 2006 2007 2008 2009 2010 2011

Sales

($M)

Unaddressed (300pin)

Addressed





COCO

CO

CO

CO

CO

CO

COCO

CO

CO

CO

CO

CO

CO

CO

CO

CO

Fiber tothe Home

Cable TV

CommercialComplex

Wireless

Campus

DWDM XFP 10G Tunable 300 PIN

SFP

40G Tunable 300-PIN

Telecom – WDM



Telecom – WDM

� Deployment of IP based WDM systems for Metro and Long Haul – replacing SONET/SDH� Driven by Video, Wireless, FTTx…� Need for all Optical Tunable networks to reduce

OpEx� Transition to pluggable modules – XFP, CFP� Strong growth of 10G DWDM� Need for 40G DWDM line side modules

$-$100$200$300$400$500$600$700$800

2005 2006 2007 2008 2009 2010 2011

Sal

es ($

M)

CWDM DWDM - Up to 4 Gbps DWDM - 10 Gbps DWDM - 40 Gbps


� Total TAM ‘07 = ~$352M

� CAGR (’07 to ’11) = 21%



Telecom – WDM

� Gain market share in all segments

� Next generations 5G C/DWDM SFP’s

� Cost reduce 10G 300pin tunable, develop low-profile modules� Develop pluggable tunable XFP-E & XFP modules

� Maintain leadership in 40G DPSK and DQPSK line side modules

� Lead the 100G line side module market

� Finisar Market Share� <5G CWDM 35%� <5G DWDM: 11% � 10G DWDM: 25%


Source: Lightcounting, 2008$-

$100

$200

$300

$400

$500

$600

$700

$800

2005 2006 2007 2008 2009 2010 2011

Sal

es ($

M)

Unaddressed (300pin)

Addressed


10/40/100G – All Markets


$-

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

2005 2006 2007 2008 2009 2010 2011

Sal

es ($

M)

100G

40G

10G


� Importance of 10/40/100G is very clear

�Represents ~50% of the market in 2011




COCO

CO

CO

CO

CO

CO

COCO

CO

CO

CO

CO

CO

CO

CO

CO

CO

Fiber tothe Home

Cable TV

CommercialComplex

Wireless

Campus

SFF

Telecom – Access

CATV



Access – CATV, FTTx (PON)

� Carriers and MSO – competition in the last mile� New network build outs of analog and digital

IP networks� Due to video, wireless, data…

� Rapid GPON growth worldwide


� Total TAM ‘07 = ~$359M

� CAGR (’07 to ’11) = 11%

0

100

200

300

400

500

600

2005 2006 2007 2008 2009 2010 2011

Sal

es (

$M)

GPON, EPON, Next Gen PON CATV



Access – CATV, FTTx (PON)


� Finisar Market Share� CATV 35%


$-

$100

$200

$300

$400

$500

$600

2005 2006 2007 2008 2009 2010 2011

Sales

($M) Unaddressed-CATV

Unaddressed-PON

Addressed-CATV

Addressed-PON

� New lower cost CATV products to increase share� Ship production SFF GPON OLT/ONU volumes� Develop SFP FTTx GPON modules� Lead next generation PON

�10G or WDM





COCO

CO

CO

CO

CO

CO

COCO

CO

CO

CO

CO

CO

CO

CO

CO

CO

CommercialComplex

Wireless

Campus

WSS Line Card

Telecom – ROADM (WSS)


video: ROADMs


ROADM (WSS)

� Flexibility in the core and access for telecom networks

� Tunable all optical networks to reduce OpEx� Future proof network for 40G/100G� Outsourcing of R&D – drives line card sales


� Total TAM ‘07 = ~$85M

� CAGR (’07 to ’11) = 34%

0

50

100

150

200

250

300

2005 2006 2007 2008 2009 2010 2011

Sales

($M

)

ROADMs



ROADM (WSS)

� Continue to lead the market for 50Ghz, mixed channel plan, and D&C

� Gain share in 100Ghz space � Capitalize on lead in 1x2 Access market� Develop higher port count products as needed

Source: Ovum RHK, 2007

� Finisar market share = 25%


$-

$50

$100

$150

$200

$250

$300

2005 2006 2007 2008 2009 2010 2011

Sales

($M)

Unaddressed

Addressed


30

Summary

� Industry leading product portfolio focused in high growth markets

� Extremely well positioned to gain share in existing markets and penetrate new markets (XAUI/PON/Parallel)

� Our revenue growth will outpace the growth of the overall market


sales strategy - nasdaqfiles.shareholder.com/downloads/fnsr/0x0x240618/8d41d5c6-e1cc-41… · sales...

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