Exhibit 99.1
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A Leading Provider of Embedded Antenna Technologies
Corporate Presentation September 2016
NASDAQ: AIRG
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NASDAQ:AIRG Important Cau,ons Regarding Forward-Looking Statements
This presentation contains forward-looking statements. All statements other than statements of historical facts contained in this presentation, including
statements regarding our future operating results, financial position and cash flows, our business strategy and plans and our objectives for future operations are
forward-looking statements. In some cases, you can identify forward-looking statements by terms such as “believe,” “may,” “will,” “estimate,” “continue,”
“anticipate,” “plan,” “target,” “project,” “contemplate,” “predict,” “potential,” “would,” “could,” “should,” “intend” and “expect” or the negative of these terms or
other similar expressions. These statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results,
performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking
statements. These risks, uncertainties and other factors include, without limitation: the market for our antenna products is developing and may not develop as we
expect; our operating results may fluctuate significantly, which makes our future operating results difficult to predict and could cause our operating results to fall
below expectations or our guidance; our products are subject to intense competition, including competition from the customers to whom we sell, and competitive
pressures from existing and new companies may harm our business, sales, growth rates and market share; our future success depends on our ability to develop
and successfully introduce new and enhanced products for the wireless market that meet the needs of our customers; our business is characterized by short
product development windows and short product lifecycles; we sell to customers who are extremely price conscious, and a few customers represent a significant
portion of our sales, and if we lose any of these customers, our sales could decrease significantly; we rely on a few contract manufacturers to produce and ship all
of our products, a single or limited number of suppliers for some components of our products and channel partners to sell and support our products, and the failure
to manage our relationships with these parties successfully could adversely affect our ability to market and sell our products; if we cannot protect our intellectual
property rights, our competitive position could be harmed or we could incur significant expenses to enforce our rights; our international sales and operations
subject us to additional risks that can adversely affect our operating results and financial condition; and other risks described in our filings with the Securities and
Exchange Commission (SEC), including under the heading “Risk Factors.” You are cautioned not to place undue reliance on these forward looking statements,
which speak only as of the date hereof, and we undertake no obligation to revise or update this presentation to reflect events or circumstances after the date
hereof. All forward-looking statements are qualified in their entirety by this cautionary statement, which is made under the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995.
This presentation also contains estimates and other statistical data made by independent parties and by us relating to market size and growth and other data
about our industry. This data involves a number of assumptions and limitations, and you are cautioned not to give undue weight to such estimates. In addition,
projections, assumptions and estimates of our future performance and the future performance of the markets in which we operate are necessarily subject to a high
degree of uncertainty and risk.
© Copyright 2016 Airgain, Inc. All Rights Reserved.
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NASDAQ:AIRG
Stock Price (9/1/16) $11.86
52 Week Low-High $7.36-$12.23
Avg. Vol. (3 mo.) 459,513
Shares Outstanding 7.6M
Free Float (est.) 5.3M
Insider Holdings (est.) 7%
InsEtuEonal Holdings 18%
Market Cap $89.7M
Enterprise Value $75.1M
Founded
IPO
1995
2016
Full-Eme U.S. Employees 33
Data source: Yahoo Finance!, Capital IQ
Mrq = March 31, 2016
(1) |
| See reconciliaEon on slide 19 |
Total Revenue (TTM-EST) $34.3M
Gross Profit (TTM-EST) $14.8M
Adjusted EBITDA (1H 2016-EST)1 $1.6M
EV/Revenue (TTM-EST) 2.2x
Cash and Investments (mrq) $4.0M
Total Assets (mrq) $13.6M
Working Capital (mrq) $1.7M
Current RaEo (mrq) 1.3 x
Revenue
Gross Profit
Airgain: Key Stats
$10.0
$11.4 $11.6
$14.8
13 14 15 TTM
$25.4 $25.5 $27.8
$34.3
13 14 15 TTM
$ millions!
$ millions!
1H 2016E
1H 2016E
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NASDAQ:AIRG Who We Are
Airgain is a leader in high performance, integrated soluEons for next
generaEon wireless networking
Design, integrate, test and deliver high-performance embedded
radio frequency (RF) and antenna technology
125M devices enabled in the market
Profitable company with 10+ years of device/chipset performance
data and diverse partner and revenue base
162 patents and applicaEons worldwide as of July 27, 2016
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Blue Chip Customers
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NASDAQ:AIRG Evolving & Growing Addressable Market
2015 2018E 2021E
650M
910M
1.3B
Source: ABI Research Wi-Fi Market Data Q2 2016, Excludes Cellular and PC’s (not presently addressed by Airgain)
(1) |
| Based on projected device sales for the period 2016 – 2021E |
Increased complexity within RF technology further
strengthens Airgain’s value
Device proliferation in emerging segments
presents ajractive high growth opportunity
Category CAGR¹
Emerging Segments
Industrial & Other 59%
Wearables | Healthcare Devices 46%
Automotive 46%
Smart Home | IOT 42%
Mature Segments
Connected Home 8%
Networking 3%
Mobile Devices 1%
Devices Sold
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NASDAQ:AIRG Global Go-to-Market Strategy
Our global presence is paramount to our success
Customer support across sales, design, supply chain and delivery are unique to Airgain
Regional presence includes sales, design, integration and technical support
Shenzhen, China
Sales & Design Offices
Suzhou, China
Sales & Design Office
London, UK
Sales & Design Office
Taipei, Taiwan
Sales Offices
Seoul, South Korea
Sales Office
San Diego, USA
Headquarters Sales & Design Offices
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NASDAQ:AIRG Airgain’s Critical Position in Value Chain
Influence Partner
Engage
Client Carriers
Objective
Key
Accounts
Influence
Client Chipset Suppliers
Objective
Key
Accounts
Partner
Client OEMs & ODMs
Objective
Key
Accounts
Engage
OEMs ODMs
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NASDAQ:AIRG Business Model
Strengthened Financial Position
Diversified, broad base of blue chip customers driving
consistent revenue growth
Long product life cycles allow for predictable revenue streams
Well-Positioned for Growth
Asset light operating model utilizing third-party, contract
manufacturing
Product suite well positioned within high growth segments
Highly scalable platform for organic and inorganic growth
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NASDAQ:AIRG SKU Revenue Life Cycle1
Strong recurring revenue cycle due to typically long customer product lifecycles
Avg. relationship from revenue generating customers was 2+ years in 2015
9%
11%
26%
54%
<1 Year
1-2 Years
2-3 Years
3+ Years
(1) |
| Analysis based on actual revenues generated between 2012 and 2015 |
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NASDAQ:AIRG Growth Opportunities
Favorable Market Tailwinds
802.11ac wireless networking standard requires more
antennas per device & natural replacement cycle
Create Additional Pull from Carriers
Demonstrate continued ROI of solutions to drive
adoption
Geographical Expansion
Leverage Wins in Emerging Devices: Smart TV,
Smart metering, IOT
New Market Expansion: automotive, enterprise
and small cell
New Products: SaaS-based Wi-Fi monitoring
solution for carriers
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NASDAQ:AIRG Key Takeaways
Leader in high performance antenna solutions for
next-gen wireless networking
Growing addressable market, driven by proliferaEon
of Wi-Fi connected devices and streaming video
Compelling business model with history of
predictable revenue growth and profitability
Strong outlook for growth and market share
expansion
Well-protected technology position with 69 patents
issued and 93 pending as of July 27, 2016
Seasoned management team with 20+ years of
average industry experience
Revenue Growth
$ in millions
$25.4 $25.5 $27.8
$34.3
13 14 15 TTM
1H 2016E
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NASDAQ:AIRG Contact Us
Company Contact:
Chuck Myers
CEO & President
Airgain, Inc.
Airgain@Airgain.com
Investor Relations:
Man Glover or Najim Mostamand
Liolios Group, Inc.
(949) 574-3860
AIRG@liolios.com Airgain, Inc.
3611 Valley Centre Drive, Suite 150
San Diego, CA 92130
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Appendix
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NASDAQ:AIRG
Year Ended Six Months Ended
Dec 31, 2014 Dec 31, 2015 June 30, 2015 June 30, 2016
(estimate)
(in thousands)
Net Income (loss) 3,588 (270) (200) 1,400
Stock-based compensation expense 658 342 300 100
Depreciation and amortization 372 473 200 400
Non-recurring expenses 910 732 —
Interest and other expense (income) (2,744) (61) (200) (300)
Provision for income taxes 6 1 —
Adjusted EBITDA $2,790 $1,216 $ 100 $ 1,600
Reconciliation of Net Income (loss) to Adjusted EBITDA
Adjusted EBITDA Reconciliation