xcerra analyst day presentation october 7, 2014
TRANSCRIPT
Xcerra Analyst Day Presentation
October 7, 2014
Formation of Xcerra Corporation
� LTX-Credence is a leading supplier of SOC semiconductor test systems
� LTX-Credence acquired Multitest and ECT from Dover Corporation in December, 2013 and renamed the new company Xcerra Corporation
� Xcerra is now the parent of four leading brands supplying innovative products and services to the semiconductor and electronics manufacturing industries
� Leveraging technology and expertise across the
Bare Board PCB Test Solutions
Electronic Interconnects
8 October 2014
� Leveraging technology and expertise across the Company, Xcerra is capable of supplying complete test cell solutions to the semiconductor test industry
� Committed to, and delivered, $15M in synergy savings
� Financial performance at target business model two quarters ahead of plan
� FY14 revenue of $331M and EBITDA of $21M (1)
� FQ4 ‘14 revenue of $124M and EBITDA of $18MSemiconductor
TestTest Handlers /
Interface Products
2014 TAM of ~$5.1B*2014 TAM of ~$5.1B*
* Management estimates
1 Includes 8 months of contribution from acquired businesses.
2measured by your success
Load Boards
Load Boards
Contactors
Handler
Xcerra Serves a Broad Portion of the Electronics Supply Chain
Semiconductor ATE
Handlers PCB ATE & PCBA Fixtures
Interface Products
Wafer Fab Wafer Test
Semiconductor ATE
Die Cut & SortPackage
AssemblyPackage Test
Semiconductor ATE
PCB FabBare Board
Test PCB AssemblyIn-circuit &
functional test
PCB ATE PCBA Fixtures
Final ProductComplete
Image of semiconductor wafer courtesy of Taiwan Semiconductor Manufacturing Co., Ltd
Acquisitions more than doubled the total available market from $2.3B1 to $5.1B2 CY2014E2 Management estimates 1 SOC market size source: Prime Research
8 October 2014 3measured by your success
$200 $220
$1,000
$1,200
$1,400
$589 $330
$350
$3,000
$3,500
$4,000
$4,500
2014: Strong Semiconductor Test Market Drives Growth
2014E: Total Market Opportunity: $5.1B* (13% Growth)
2013 (A): Total Market Opportunity: $4.5B*
Semiconductor Test Solutions Electronics Manufacturing Solutions
Total Change 16% Total Change 2%($ in millions) ($ in millions)
$3,291
$3,815 $1,250 $1,280
$650 $660
$400 $400
$-
$200
$400
$600
$800
2013 2014E
Pogo Pins PCBA Fixtures PCB Testers
$1,900 $2,300
$509
$576 $552
$-
$500
$1,000
$1,500
$2,000
$2,500
$3,000
2013 2014E
Testers Handlers Contactors Interface Boards
Sources: Prime Research, VLSI Research, Xcerra Management estimates
0%
* Management estimates
8 October 2014 4measured by your success
Analyst Day Agenda
– Tester Group Market Overview and Strategy
– Interface Products Group Overview and Strategy
– Handler Group Overview and Strategy
– Test Cell Innovation Overview and Strategy– Test Cell Innovation Overview and Strategy
– Translating Product Strategies Into Market Share Gains
– Bottom Line: Financial Performance
8 October 2014 5measured by your success
Market and Product Strategy
LTX-Credence Test Systems
Steve Wigley, Vice President, Tester Group
Changing Test Industry Focus
Years 1995-2005 2005-2015 2015+ 2015++
MarketDriver
Corporate ITWired
Infrastructure
Consumer PCInitially
Smart Phone Laterally
Low cost Smart Phones &
TabletsPersonalizedConnectivity
Context Aware and smart world
IoT
ATE Flexibility in the ATE Market Drivers
Performance Driven
Cost FocusedBIST
Productivity Efficiency
Flexibility in the Factory
Smart Test Cell
ATE Focus
Improved EPAHigher
Performance Instruments
ConsolidationCost Down
Lower cost of ownershipMulti-site Capability
Overall Test Cell Efficiency
Data driven yield management
Ubiquitous RF
Integrated development
Rapidcustomization
Distributed Test
8 October 2014 7measured by your success
End Applications Driving Growth
Sources: Business Insider [Gartner, IDC, Strategy Analytics, Machina Research, company filings, BII estimates]
Source: ST, IHS
IoT Market Segmentation
8 October 2014 8measured by your success
– Integration with sensing technologies will grow
– Industry will continue to integrate multiple functions into a device but how much and when will be driven by the packaging technology
Impact On Our Device Markets
much and when will be driven by the packaging technology
– Continued growth RF content
8 October 2014 9measured by your success
Impact On LTXC Device Markets
PersonalConnectivity
Transportation Smart WorldPersonal
Communication
HealthcareEntertainment
Driver AugmentationEfficiency
SafetyConnectivity
IoTNetworks
Context Aware
Smart PhonesTablets
Growth Markets
MCU
Sensors
MCU
SensorsRF PA & FEM
MCU Power & Analog
RF PAMCU
RF PA & FEM
RF PA & FEM SensorMCUASSP Power & Analog
MCU
Low PowerRF PA
Power & Analog
MCUMCU Power & Analog
Power & Analog
MCU
ASSP
EmbeddedProcessor
Logic RF Analog Power Sensor
e.g. SiP, WLCSP, 2.5D & 3D Packaging
Test solutions also require to address new manufacturing challenges driven by packaging technology
8 October 2014 10measured by your success
LTXC Products and Roadmap Strategy
LTXC Products Focus On Five Key Market Segments
ASL Series
Diamond Series
The standard for production test of wireless, mobility, consumer ASSPs and microcontrollers
Optimized for low pin count, cost-sensitive power management and linear
X-Series
Designed for optimal testing of power, automotive, mixed-signal and RF
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Innovation Drives LTXC Roadmap Strategy
Best in Class ATE
-Expand the reach of Diamondx to includenew capability for A-ASSP and integrated sensing technologies - Extend leadership in RF technology through development of
- 4G/5G RF PA/FEM solutions- Connectivity solutions- Automotive Radar solutions- Automotive Radar solutions
- Focused Development on ASL and X-Series
Develop Test Cell solutions
- Phased integration of ATE, Handler/Prober, Interface contactor technology and software
Technology roadmap
- Focus on 3 key technologies and/or innovations
Standards
FPGA Roadmap
New, innovative Instrument architectures
8 October 2014 13measured by your success
LTXC Roadmap Strategy: Innovation Leads to Share Gains
LTXCTechnology
Roadmap
Technology development
ATE Product development Best in Class
ATE Current ATE Enhanced ATE
Integrated Test Cell
ATE Test Cell development Test Cells
Connected Test Cell
ATE Current ATE Platforms
Enhanced ATE Platforms
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Positive Impact of Roadmap Strategy On Our Business
– Will continue to strengthen our position in our standard device markets• Deliver new Diamondx options to expand into A-ASSP
• Improve position of unique PAx ATE with PAx-ac developments
• Leverage our production test expertise in Automotive Radar � Integrated test cell as our 2nd generation solution
– Address new markets driven by packaging technology
•• Expand reach of Diamondx
� Use 3D Instrumentation to address integration of sensing technologies
• Extend leadership in RF technology• Low cost RF solutions
• Tighter test cell integration � Merging of testing, handling, interfacing and contacting technologies
8 October 2014 15measured by your success
Interface Products Group
Timothy McNulty, Vice President, Interface Products Group
IPG Semiconductor Products
Cantilever Test ContactorsThe standard in Hi-Power Long -Life Automotive
Probe Test ContactorsBroad market acceptance in High Fidelity , Wafer Level, High Pin Count and Low-cost Segments
Gemini Mercury
The standard in Hi-Power Long -Life Automotive Applications
Load Board World Class PCB Fabrication coupled with Global Design Engineering and Complete Assembly Integration
ecoAmpDURA Kelvin nanoKelvin
8 October 2014 17measured by your success
IPG- Semiconductor Test Consumable Market Trends
Gains driven by increased IC volumes and IO counts, not hurt by increases in test parallelism
Gains driven by increased test complexity at wafer test, and mobility packaging
2013 VLSI Test consumables Forecasts
Flat: price deflation (commoditization), and demand driven by increased parallelism
8 October 2014 18measured by your success
Interface Products Target Growth Markets
Mobility Market Packing Shrink and
Signal Integrity Demands
Power Applicationsfor the Automotive
Market
High-Fidelity Contacts for Wireless Mobility
and Automotive Radar ApplicationsDemands
• WLCSPContinue to develop smaller geometries
• HED Life and yield performance for lowest COT
• Micro-pitch PBC for wafer probing and WLSCP markets
Applications
• Extending leading market-share position with improved spring life and product delivery for the cantilever product line
• High-density Kelvin
• Contacting solution for automotive radar
• Low inductance probe architecture
• Market-leading contact-resistance performance for the analog / mixed signal
8 October 2014 19measured by your success
Contact Products Within IPG Expand Beyond Test
– Contact products serve a wide variety of electronic markets
– Probe manufacturing and assembly automation are core competencies
– Global distribution channels
– We participate in four primary markets:
Semiconductor Test Probes
Integrated OEM Products Industrial
PCBA Test Probes
Providing semi probes internally for IPG contactors and directly to customers that integrate internally
Most-significant growth opportunityLeverage IPG contactor design and manufacturing
Serve high-reliability applications with a focus on wire-harness test and battery applications
Providing probes for all PCBA testing markets
8 October 2014 20measured by your success
Summary
• IPG products serve most Semiconductor Test market segments leveraging a broad product portfolio, global design, manufacturing, applications and sales.
• Product design and delivery are as equally important as technical capability
• A local supplier Globally.
• Vertical integration within IPG and within Xcerra provides significant advantages, developing and delivering time-critical solutions for standalone and fully integrated test-cell applications
8 October 2014 21measured by your success
Xcerra Test Handling Business
Michael Goldbach, Vice President, Handler Group
Xcerra Test Handling Business
Michael Goldbach, Vice President, Handler Group
Focus Markets Handler Segment
Mobility - Connectivity“CONNECTING anything– anywhere –anytime”
Typical Applications:> mobile phones> tablets> ultrabooks
Automotive“GETTING everywhere – safely and efficiently”
Typical Applications:
> driving safety
> engine control
> driving comfort
> car multimedia> car multimedia
Smart Power“USING power more efficiently”> power management> power semi modules> power discretes
Typical Applications:> consumer> automotive> Industrial
Sensors“SENSORIZATION of things”> sensing> actuating
Typical Applications:> mobility> automotive> healthcare 08 October
2014
8 October 2014 24measured by your success
Overview Handler Models
System Type Key Markets Typical Packages
Gravity AutomotivePowerSensors
SOQFNTO
Pick & Place Mobility / ConnectivityAutomotivePowerSensors
QFPBGAQFN
Turret Power SOTTurret PowerMobility / Connectivity
SOTSO, QFN
InStrip Mobility / ConnectivityPowerSensors
ALL
InCarrier Mobility / ConnectivityAutomotivePowerSensors
QFNBGASOWLCSP
n.a.
8 October 2014 25measured by your success
Focus on Growth Markets
Pick & Place
Strip & Carrier Handling
MEMS / Sensor Market
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P&P – Historical Market SegmentationP
erfo
rman
ce
Automotive• Performance is key• A/H/C Conditions• Performance over cost
Cost of Test
Consumer
Mobility
• Cost driven• A/C Conditions• Reuse of Equipment
8 October 2014 27measured by your success
P&P – New Market DynamicsP
erfo
rman
ce
Strong Overlap in MarketRequirements
Automotive
Cost of Test
Mobility
Consumer
8 October 2014 28measured by your success
Xcerra P&P Products Matching the Market Sweet SpotP
erfo
rman
ce
MT95
New MT2168A/C/H
Cost of Test
MT2168 A/H
8 October 2014 29measured by your success
MT2168 – Unique Features Driving Growth
MT2168 Market Unique performance
Modular Design Mobility, Consumer, Automotive
Buy only what is neededEasy field upgrade, easy test floor management
Flexible side pitch Mobility, Consumer, Automotive
Reuse of existing hardware Cost down
Flexible plunger Mobility, Consumer, Automotive
Higher contact reliabilityHigher yield
Soft touch Mobility, Consumer Safe handling of bare die, WLCSP and thin devices
Tri Temp up to 175C Automotive Must requirement for AutomotiveStrong installed base on MT95Well know temperature performance
PoP Handling Mobility, Consumer Top and bottom contactingSupporting newest packaging trendsRoadmap for TSV
Reliability Mobility, Consumer, Automotive
Proven lowest jam rate (OSAT)Reduce cost of operations
8 October 2014 30measured by your success
Focus on Growth Markets
Pick & Place
Strip & Carrier Handling
MEMS / Sensor Market
8 October 2014 31measured by your success
Market Dynamics for Strip and Carrier Handling
� Market drivers for strip handling� Massive parallel test to reduce cost (e.g. MEMS)� Gravity handling limitations in multisite, die sizes and uptime� Packaging requirements (e.g. WLP, fine pitch)
� Challenges for strip handling driving carrier handling � Singulation after test (e.g. Automotive)� Complete process change in manufacturing setup� Increasing dependencies on assembly and packaging services
8 October 2014measured by your success 32
Issues:
Today’s Common WLCSP Test Process Shows Quality Leakage
Test on Wafer Prober
Sort-Un-Load & 5S (?) Vision inspect
into Tape & Reel
Dicing on Dicing Machine ?
Final
Test
Issues:
1. No final test after dicing���� Risk of quality escapes ↑
���� Cost of bad quality ↑
2. 5S visual inspection for µ-size defects
���� Support Cost ↑ UPH↓
3. No seamless RMA test solution available
���� New setup just for RMA
8 October 2014 33measured by your success
Xcerra WLCSP Test Process Solves Customer Quality Issues
WLP test process with Multitest Final InCarrierTM Test
Test on Wafer Prober
Sort-Un-Load & Vision inspect
into Tape & Reel
Dicing on Dicing Machine
Final Testw/
InCarrierTM?
Wafer ring load to
InCarrierTM
e.g. x8// x8// ���� x16//Increase of multisite
Optional: RMA load
Reel to InCarrier
The only process in the market covering WLP requirements:
1. Test is Final test – no compromised on quality
2. Full RMA test support – easy handling of customer requests
3. Increasing multisite capability – reduce cost of test
4. Reduces vision inspection - reduces cost for final packing step
InCarrier
8 October 2014 34measured by your success
Singulated IC Test InStrip® IC Test
InCarrier – Addressing the Strip Handling Challenges
Update Q3/2014:
o >2.000.000.000 units tested
o 80% thereof were 2x2 packages
Combining advantages of Singulated Test and InStrip Test
InCarrierTM IC Test
Patented
o 1st WLP carrier <2x2 shipped
Key Market Application: WLCSP
8 October 2014 35measured by your success
Xcerra´s Unique Position in Strip and Carrier Handling
One Handling Platform for all
> InStrip
= Standard Strip Test
> InStrip 3D
= for 3D TSV partial stack in process test
Market Leader
> InCarrier
= InStrip for singulated device test
> InMEMS
= InStrip for MEMS testMarket Leader
Market Leader
8 October 2014 36measured by your success
Focus on Growth Markets
Pick & Place
Strip & Carrier Handling
MEMS / Sensor Market
8 October 2014 37measured by your success
Strong MEMS Market Unit Growth Forecast
Served by Multitest Test ModulesMajority for Consumer Applications
Source: Yole Developpement
8 October 2014 38measured by your success
Internet of Things Leads to MEMS/Sensor Device Ramp
� IOT will drive a large variety of end applications� IOT will demand a strong increase in variety of sensor technology
8 October 2014 39measured by your success
Xcerra – Best Choice for IoT Sensor Requirements
MEMS Module
> MEMS stimulus for complete strip> High parallel test 1200 signal lines> Configurable for multiple
MEMS applications
Available- InFlip : Accel. 3 axis- ÍnFlipM: Accel. and magnet 3 axis- InGyro: Accel. + Gyro 3 axis- 9DOF: Accel. + Gyro + magnet
3 axis
BU InStrip
> Standard handler platform
> Temperature conditioning(-40°C to +125°C)
> Vision aligned contacting
> Process control(Datamatrix, SECS/GEM, G84)
> Fast package conversion 3 axis- InPressure: Pressure up to20 bar- InPhone: Microphone test
Planned- InBaro: barometric pressure test- InOptic: optical and UV
> Fast package conversion
� The only modular handling solution in the market� Fast reaction time to rapid changing market demand� Reuse of capital, reduce cost of operation� The only high volume, high throughput solition
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Develop Test Cells
What is a Test Cell ?
Taking ownership of delivering a complete test solution to the customer
ATEHandler/ Prober
Mechanical Interface
Electrical IFTest Floor Integration
Test Solution
Customer
8 October 2014 42measured by your success
Current Back End Cost Down Model Reaches the Limit
Lifetime
YieldUtilization(OEE)
Throughput (UPH)* *
Capital CostsVariable Costs ++++
CoT
++++
=
Overhead
• Focus on “cheaper and faster”• Multisite for higher throughput• Yield and utilization limited by multi-vendor strategy
8 October 2014 43measured by your success
Test Cells – The Next Generation Cost Down Driver
Lifetime
YieldUtilization(OEE)
Throughput (UPH)* *
Capital CostsVariable Costs ++++
CoT
Overhead++++
=
New “Xcerra Test Cell” Coverage
• Holistic approach for all test cell elements• Focus on improved yield, utilization and overhead
8 October 2014 44measured by your success
Our Vision – Continuous Value Add for our Customers
– Streamline Vendors
– Economies of scale
– Project Management
– Integration
– Optimized performance for selected test cell configurations
Phase 3Phase 2Phase 1
“One Stop Shop”Share Gains from Cross
Selling
Adding Value ThroughComplete Test Cell
Solutions
Leverage Technology Into New Products
– Economies of scale
– Seamless support
– Operations assistance
– Integration
– Deliver complete solutions
– Operations assistance
configurations
– Enhanced SW integration
– Enhanced process and operations assistance
Now Next 12 Months 24-36 Months
8 October 2014 45measured by your success
Test Cells – Opportunities in Many Market Segments
Automotive Radar 77GHz
WLCSP – Singulated Test Cell Solution
MEMS / Sensor Test Cells
Automotive ASSP
Mobility ASSP
Microcontroller – Strip Test Solution
Analog / Linear ICs
8 October 2014 46measured by your success
First Test Cell Solution Shipping This Month
• High volume production “at speed“ testing solution for ADAS Radar enabled devices • Automated Automotive compliant Tri-temp testing and handling • Commercial ATE 77GHz Radar transmit and receive unit• Fully matched “at speed“ contactor and interfacing assembly
• Lowest number of signal transitions provides better signal integrity• Packaged and WLCSP compliant
• Mechanical interfacing and integrated test cell communication
Tri-Temp HandlerGeneral Purpose ATE
Integrated 77GHz test andcontactor assembly
Optimized transmission paths
8 October 2014 47measured by your success
Key Xcerra Technology Enables Test Cell Solutions
• 77GHZ Integrated contactor, adaptor & interface board• Designed to ensure shorthest possible path from
Kestrel instrument to DUT and validated over automotivetest temperature ranges
• Standard docking with MT9510 and standard probers
• MT9510 – Tri-temp, Automotive compliant PnP handling solutionsolution
• -55°C to +175°C temperature range• Optimized mechanical docking and ATE communication
• Kestrel 77GHz Automotive Radar test option• Available with an LTXC X-Series ATE today• Calibration of RF to device pin or ball
8 October 2014 48measured by your success
Test Cell – Innovation Enhancing the Back End Process
• Improve OEE and yield
• Maximize use of capital
Reduce Cost
• Improve Time to Volume
Improve Flexibility and Agility
• Improve Time to Volume
• Meet fluctuating demand with high productivity
• Benefit from complete test solutions
• Adapt to new test and packaging challenges
• Focus resources on core business
Gain Competitive Advantage
8 October 2014 49measured by your success
Xcerra Share Gains & Opportunities
Pascal Rondé Senior Vice President, Global Customer Team
PAx-ac: The Industry Standard for PA / FEM / Antenna Switch
– PAx-ac
• Introduced March 2014 to address PA/FEM test requirements for 4G cell and 5G connectivity
• Shipped >90 PAx-ac by end of September
� Major US PA makers serving high end � Major US PA makers serving high end smartphones
� China/Taiwan PA providers to local low cost smartphones
• Total PAx tester units shipped to reach 250 by end of calendar year
8 October 2014 51measured by your success
Diamondx : Broad Market Adoption
– Diamondx
• Shipped 100th system in August 2014
• OEM customer base includes:� US and Europe IDMs� Major Taiwan/China Fabless
• Wide range of applications on Diamondx• Wide range of applications on Diamondx
• OSAT install base has reached critical mass
• Large number of new applications under development ramping in volume in CY2015
8 October 2014 52measured by your success
LTXC Growing Faster Than ATE Market
In 20 months gained 2.7 points
2012 2013 2014 ytd
Market share5.3%
Market share7.1%
Market share8.0%
-6% +43%
2012
2012 - 5.3%2013
-30%
2014 ytd
+27%
Source: SEMI SoC Billings. 2014 ytd (Jan–Aug), Xcerra
LTX-Credence market share
SoC & Logic Test Equipment Market Size
8 October 2014 53measured by your success
Top Semiconductor Companies Adopting First P&P Platform and
Leading Edge Contactors
– MT2168 P&P Handler• Strong and broad customer interest driven by very
innovative modular approach and roadmap to Tri Temp• Multiple accounts placing repeat orders• Strong pipeline of evaluations ongoing at major US,
Europe and Asia customers
– Interface Products• WLCSP Ceramics in qualification at leading US fabless
company in mobility space
• Sharp Tip Quad Tech evaluation at large graphics and chipset company
• High Fidelity Kelvin developed for several global Automotive IDMs
8 October 2014 54measured by your success
Beyond great products, what do Customers need?
European Executive Seminar – Munich Sept 22nd
– Theme: How do test operations address overall cost reduction challenges and ever faster time to volume requirements in a consumer driven semiconductor market?
– Full day workshop session • 12 Senior Managers/ Executives from major European companies • 12 Senior Managers/ Executives from major European companies • 10 Executives from Xcerra
8 October 2014 56measured by your success
The Voice of Customers
– Cost of test reduction demand continues• Even stronger intensity for Internet of Things (IoT)• Coupled with greater quality demands
– ATE (as a testing tool) is not the bottleneck anymore
– Shift has moved to optimizing the whole back end process– Big Data Management– Big Data Management
– Automation
– Overall Equipment Efficiency (OEE) of the Test Cell
– Handler Units Per Hour (UPH)
– Space on Load Board
– General acceptance that a change of the existing process maybe required
8 October 2014 57measured by your success
Xcerra Optimizing the Whole Back End Process
Big Data Management Diamondx high bandwidth backbone based on PCI-e
Automation Will InCarrier become the FOUP of the back end?
Overall Equipment Addressed by our TCI strategy Overall Equipment Efficiency (OEE) of the Test Cell
Addressed by our TCI strategy
Handler Units Per Hour (UPH)
MT2168, InStrip/InCarrier strength
Space on Load Board InStrip/InCarrier increases test interface dimension, large load board is our sweet spot
8 October 2014 58measured by your success
Growth from “Cross Selling” - Leveraging a Strong Channel
– Enhanced geographic coverage for Multitest in Taiwan and China• Spirox now represents all semiconductor test product lines
– Leverage strong ATE presence at some key accounts to drive Handler and Interface Product sales• Power and Analog IDM has signed exclusivity agreement for 5 years
for all Xcerra products• Large European IDM opening Handler and Load Board evaluation to
XcerraXcerra• Several other opportunities in the works
– Leverage strong Handler presence at some other key accounts to drive ATE sales• Large Automotive manufacturer opening two different ATE evaluations
to Xcerra• Major Mixed Signal and Sensor company opening ATE evaluation to
Xcerra• Several other opportunities in the works
8 October 2014 59measured by your success
Initial Test Cell Success & Opportunities
– First Sensor Test Cell success at US based IDM
• Four active opportunities being worked on
– First 77 GHz Radar Test Cell success at ST
• Joint paper being presented at Semicon Europe Oct 8th
• Three active opportunities being worked on
– WLCSP providers must move to final test of singulated parts
• Due to dppb requirements of high end smartphone brands
• Five active opportunities being worked on for InCarrier Test Cell
8 October 2014 60measured by your success
Xcerra Financial Performance
Martin Senger Vice President, Finance
Recent Industry Trends and Corporate Highlights
� Industry
– Mobility and automotive leading recovery across all technology segments
– Calendar year 2014
• SOC tester sales forecast for 21% growth1
• Handler sales forecast for 13% growth2
– Semiconductor companies remained positive in the third calendar quarter
– PCB board test market remains strong– PCB board test market remains strong
� Corporate
– Acquired businesses have been accretive to overall company
– Achieved $15M annualized integration savings
– Semiconductor test product lines driving company growth
• Cyclical recovery
• Cross selling opportunities and new product adoption
• Equity raise1 Source: Prime Research2 Source: VLSI Research
8 October 2014 62measured by your success
Strong Recurring Revenue Stream
Xcerra
18%
53%47%
LTXC Standalone
Q4 ’14 Revenues: $48.3 MQ4 ’14 Revenues: $48.3 M Q4 ’14 Revenues: $124.3 MQ4 ’14 Revenues: $124.3 M
82%
53%
Recurring Capital Recurring Capital
8 October 2014 63measured by your success
Balance Sheet Overview($ in millions)
Assets 7/31/2014 4/30/2014
Cash & Equivalents $99 $97
Accounts Receivable 90 78
Inventory 70 70
Other Current Assets 5 5
Property & Equipment 41 35
Intangibles 12 10
Goodwill 43 43
Other Assets 4 4
� Track record of strong working capital management due to:
– Outsourcing model
– Quality collections
– Tight management of payables
� Efficient capital investment strategy enables cap-ex to run below depreciation run rate
Total Assets $364 $341
Liabilities
Accounts Payable $33 $31
Accrued Expenses 37 36
Deferred Revenue and Customer Advances
7 4
Debt 70 67
Other Liabilities 12 13
Total Liabilities $159 $151
Shareholders’ Equity
Equity $205 $190
Total Liabilities & Equity $364 $341
� Debt
– $52M term loans
– $18M promissory note to Dover
� Net Cash position
– $29M as of 07/31/2014
– Approximately $80M pro forma post offering
8 October 2014 64measured by your success
Target Business Model
Sales $93M $125M $150M
Gross Margin 37% 43% 47%
EBITDA $3M $20M $33M
Operating Income $0M $17M $30M
Op. Inc. per Share $0.00 $0.30 $0.57
Per Quarter
Op. Inc. per Share $0.00 $0.30 $0.57
Annualized $0.00 $1.20 $2.16
1. Assumes $15 million in annual cost synergy
2. Excludes SBC expense, amortization of purchased intangible assets, effects from purchase accounting, and one-time charges
3. Assumes 55 million fully diluted shares outstanding
4. Does not include quarterly net income improvement of $0.013/share in interest expense savings
Notes:
8 October 2014 65measured by your success
Q4FY14 Company Guidance and Actual Results
Company Guidance LTXC ECT/MT Xcerra
Revenue $48 - 50M $65 - 67M $113 - 117M
Gross Margin 57% 31% 42%
Non-GAAP Net Income $0.08 - $0.10 $0.04 - $0.06 $0.12 - $0.16
Actual Results LTXC ECT/MT Xcerra
Revenue $48.3M $76.0M $124.3M
Gross Margin 57.7% 35.0% 43.8%
Non-GAAP Net Income $0.10 $0.15 $0.25
Notes:• Excludes effects of purchase accounting
• Excludes amortization, restructuring, and other one-time charges
• Assumes 49.3 million fully diluted shares outstanding
8 October 2014 66measured by your success
Delivered Target Model Results
Q4 FY14 Reconciliation of GAAP to Non-GAAP Results
$M Per share
GAAP net income $ 13.5 $ 0.27
Add: Amortization of purchased intangible assets $ 0.8 $ 0.02
Amortization of inventory step up for PPA $ 1.3 $ 0.03
Bargain purchase gain ($ 4.0) ($ 0.08)
Restructuring and acq. / integration related $ 0.8 $ 0.01
Non-GAAP net income $12.4 $ 0.25
Add: Taxes $ 1.0 $ 0.02
Net interest expense / other $ 1.3 $ 0.03
Stock-based compensation $ 1.7 $ 0.03
Non-GAAP operating income at $124.3M in sales $ 16.4 $ 0.33
Business model: Operating income at $125M in sales $ 17 $ 0.34
8 October 2014 67measured by your success
Note: Per share calculations in this table are based on 49.3 million shares outstanding (share count prior to recent offering)
Xcerra Business Outlook
Q1FY15 Guidance
Revenue $124 - 128M
Gross Margin 42%
Non-GAAP Net Income $0.22 - $0.26
Notes:
1. Excludes effects of purchase accounting
2. Excludes amortization, restructuring, and other one-time charges
3. Assumes 52.2 million fully diluted shares outstanding
4. Guidance updated only to reflect post offering share count
5. Guidance provided on September 8, 2014. The Company assumes no obligation to update.
8 October 2014 68measured by your success
Thank You