Exhibit 99.1
Powering High Speed Networks
Investor Presentation
December 2013
NYSE MKT: GIG
© 2013 GigOptix, Inc. All Rights Reserved
Disclaimer
Forward Looking Statements:
This presentation contains statements regarding operating trends, future results, new projects, and other market, business and product trends that are forward-looking. We undertake no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise. Additional factors that could cause actual results to differ are discussed under the heading “Risk Factors” and in other sections of the GigOptix filings with the SEC, and in GigOptix’s other current and periodic reports filed or furnished from time to time with the SEC.
Use of Non-GAAP and Adjusted EBITDA Financial Measures:
These materials include references to non-GAAP revenue, non-GAAP net income/loss, Adjusted consolidated non-GAAP net income/loss, and Adjusted EBITDA. GigOptix believes that these non-GAAP financial measures are important indicators of the ongoing operations of its business and provide better comparability between reporting periods and provide a better baseline for analyzing trends in GigOptix’s operations. GigOptix does not, nor does it suggest that investors should, consider such non-GAAP and Adjusted EBITDA financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. GigOptix believes the disclosure of the effects of these items increases the reader’s understanding of the underlying performance of the business and that such non-GAAP and Adjusted EBITDA financial measures provide investors with an additional tool to evaluate our financial results and assess our prospects for future performance.
2 | | © 2013 GigOptix, Inc. All Rights Reserved |
GigOptix Overview
Emerging Leader in ICs for High Speed Cloud
Communication Links and Network Applications
Core Products Target 3 Markets:
Cloud connectivity
High-speed optical and wireless networks
Industrial
Customer base: Tier 1 & 2 equipment OEMs and ODMs
Market Leadership: Optical engines for Active Optical Cables and 100Gbps Coherent networking systems
Solid Financial Position:
Q3’13 revs of $7.3M; Non-GAAP GM of 62%; No LTD; ~$15M cash
21.7M shares O/S; Market Cap of ~$35M
113 Patents: Core IP leveraged in our major markets
Headquarters: San Jose, California
83 employees globally, 41 in Engineering
Fabless
3 | | © 2013 GigOptix, Inc. All Rights Reserved |
GigOptix Focused Mission
Enabling High-speed end-to-end Network Connectivity
Backhaul
Point-to-Point Wireless Links
Consumer
Cloud & Edge Electronics
Optical Links &
Datacom motion-gesture Optical Links amplification
Core & Metro
Telecom Optical Links
End User Data Center
4 | | © 2013 GigOptix, Inc. All Rights Reserved |
GigOptix Business
~$29M 3 83
FY 2013 Forecast Markets Employees
Revenue
Optical (64%) 10 6
ASIC Telecom
Core & Metro (telecom)
RF Cloud & Edge (datacom) 67
Datacom
Consumers (high-speed)
High Speed Communications (69%) Industrial (31%)
RF (5%) San Jose, CA
Seattle, WA
Custom ASIC (31%) Zurich
Market Leadership:
~50% of 100Gbps Coherent Drivers &
~30% of 40Gbps AOC Drivers & TIAs
5 | | © 2013 GigOptix, Inc. All Rights Reserved |
GigOptix Markets & Solutions
Core & Metro Cloud & Edge Consumer Elect.
Networks Links Networks Links High Speed Links
Drivers, TIAs & Drivers, TIAs for Drivers, TIAs for
Modulators AOCs & Pluggables AOC & Motion /
Gesture Tracking
Industrial Customized ASICs
High Speed end-to-end solutions via High-Speed links
6 | | © 2013 GigOptix, Inc. All Rights Reserved |
Core Technology Leverage
Core & Metro Cloud & Edge Consumer Elect.
Networks links Networks Links High-Speed Links
MUX Driver Modulator MUX Driver Modulator MUX Driver Laser
Laser Laser
DEMUX TIA DEMUX TIA DEMUX TIA
PD PD PD
Drivers, TIAs Drivers, TIAs Drivers, TIAs
TFPS Modulators
> 40 Km 1m – 40 Km < 1m
Universal Solutions For All Optical Links: All Distances and Speeds; Resolve Key Challenges Of The Market: Price, Power,
Performance, Form Factor Capacity, Agility And Robustness
GigOptix Components
7 | | © 2013 GigOptix, Inc. All Rights Reserved |
Core & Metro Links: 100Gbps—400Gbps Coherent
Today’s solution: transceivers Tomorrow: small FF integration
GIG Driver
GIG TFPS Modulator™
GIG TIA
CFP CFP2 CFP4
GigOptix Differentiation: TIAs & Drivers for all speeds & formats Leading position in 100G Coherent
GigOptix Revenue 2013: $13M (mgmt. est.) Launched in 2007
Market Forecast 2013: ICs TAM: ~$100M 22% CAGR (2013—16)
Source: OVUM Report + GigOptix Management
8 | | © 2013 GigOptix, Inc. All Rights Reserved |
Cloud & Edge Links: 40Gbps & 100Gbps Parallel
Parallel optics links for 4 and 12 channels of 10, 16 and 28 Gbps
PD Lens
TIA IC VCSEL VD IC Array Array VCSEL Lens VD IC PIN TIA IC
Array Array
GigOptix Differentiation: Sole parallel device merchant supplier TIAs & Drivers for FDR, EDR, QSFP SR & LR
GigOptix Revenue 2013: $5M (mgmt. est.) Launched in 2009 Market Forecast 2013: ICs TAM: ~$100M 45% CAGR (2013—16)
Source: Light Counting Report + GigOptix Management
9 © 2013 GigOptix, Inc. All Rights Reserved
Consumer Electronics: High-Speed Optical Links
GigOptix Components Powering Fast Growing High Speed
Consumer Optical Link Applications
4K/8K TVs connectivity
Embedded active optical cables (eAOCs) $126M
Gesture recognition and motion tracking
2D/3D resolution
$64M
$32M $16M
2013 2014 2015
GigOptix Differentiation: Leveraging the Access mature technology Devices in AOCs, E-AOCs and Backplanes
GigOptix Revenue 2013: $1M (mgmt. est.) Launched in 2013
Market Forecast 2013: ICs TAM: ~$2.5M 170% CAGR (2013—16)
Source: Light Counting Report + GigOptix Management
10 © 2013 GigOptix, Inc. All Rights Reserved
RF Backhaul Point-to-Point Wireless
E-Band Backhaul Point-to-Point Wireless With Leading Integration And Architecture Powered By GigOptix Chipsets
Clk PDF CP PDF
Ref MUX x4
/2 Upconvertor
DIV
PA Pre-driver
Vtune I/Q Vc1 IF Vc2 Vctrl PLL Ext LO mixer VCO LO
Quadrupler IF VGA
GigOptix Differentiation: 2 chip solution for E-band P-t-P backhaul Best output power performance
GigOptix Revenue 2013: $1M (mgmt. est.) Launched in 2013
Market Forecast 2013: ICs TAM: ~$2.0M 120% CAGR (2013—16)
Source: Gartner Report + GigOptix Management
11 © 2013 GigOptix, Inc. All Rights Reserved
Custom ASIC: Industrial & Mil/Aero
GigOptix ASICs Provide High-Value and Cost Efficient Customized
Solutions for FPGA and ASIC Conversions
Configurable Standard Configurable
Memory Blocks Cell Logic Cells
Configurable Logic Cells
PHY PHY PHY Configurable I/O Cells
Structured ASIC Standard Cell Custom Structured ASIC
GigOptix Differentiation: Provider Custom Structured ASICs Supporting FPGA and ASIC conversion
GigOptix Revenue 2013: $9M (mgmt. est.) Launched in 2010 Market Forecast 2013: ICs TAM: ~$100M 5% CAGR (2013—16)
Source: Gartner, Inc. + GigOptix Management
12 © 2013 GigOptix, Inc. All Rights Reserved
Key Customer Relationships
OPTICAL INDUSTRIAL
RF
13 © 2013 GigOptix, Inc. All Rights Reserved
Multiple Growth Catalysts
Telecom
Leading supplier of 100Gbps Coherent devices for Core long-haul now, expands into Metro in 2014
Leading developer of E-Band wireless Backhaul point-to-point MMICs for high-speed last-mile connectivity for deployment in 2014
Datacom
Sole RF device merchant supplier for Active Optical Cables and Pluggables >10Gbps data-center fiber installations
Leading supplier in High-Speed Optical Links for Edge & Cloud
Consumer Electronics
High-Speed Optical Links in CE deployment late 2013 and show rapid growth into 2014
Game-changing RF amplifiers for gesture & motion tracking technology ramp in 2014 with major OEMs of smart-phones, tablets and interactive-TV’s
Custom ASIC applications revenue to increase in 2014, as more foundries end-of-life the 0.25um and 0.35um lines
14 © 2013 GigOptix, Inc. All Rights Reserved
Intellectual Property
High-speed integrated circuits
113 Patents Standard cells and structured ASIC architectures
High-speed modulator using Thin Film Polymer on
13 Patent Silicon (TFPS)™ technology
Applications RF mm wave circuits
RF communication systems
Telecom:
Reached global settlement in litigation against
M/A-Com in September 2013—Received $7.25M
IP Protection
Datacom:
Solid IP position as largest independent supplier of
chipsets for high-speed optical interconnects
15 © 2013 GigOptix, Inc. All Rights Reserved
Executive Team
Dr. Avi Katz Founder, Chairman & CEO
Curt Sacks SVP & CFO
Andrea Betti-Berutto Founder, SVP & CTO
Steve Choate VP of Operations
Dr. Raluca Dinu VP & GM High Speed Comm.
Anil Chaudhry VP & GM Industrial
16 © 2013 GigOptix, Inc. All Rights Reserved
Financial Highlights
Increased Revs 7% sequential
Non-GAAP GM of 62%; 4th consecutive Q >60%
Strong Balance Sheet
Q3 FY2013 Cash and equiv of $15.3M, or ~$0.68 per
diluted share
Current Ratio of 2.0
No Long-Term Debt
Revs expected to increase 5% sequential
Q4 FY2013 Non-GAAP total expenses to decline by about
Outlook $0.5M
Adjusted EBITDA to increase
17 © 2013 GigOptix, Inc. All Rights Reserved
Trended Financial Results
Product Revenue* ($M)
$10.1
**
* | | $7.3 $7.6 $7.1 $6.9 $6.8 |
Sept. Dec. March June Sept. Dec. 2012 2012 2013 2013 2013 2013
*Excludes ~$0.9M in government contract revenue in Q4
Adjusted EBITDA ($M)
$1.3
**
$0.8 $0.7 $0.7 $0.7
$0.1
Sept. Dec. March June Sept. Dec. 2012 2012 2013 2013 2013 2013
*Includes ~$640,000 increase in R&D expenses for new product tape-outs
Gross Margin %
(Non-GAAP)
65 65 #
60 62 ~ 60 54
Sept. Dec. March June Sept. Dec. 2012 2012 2013 2013 2013 2013
#Guidance provided by Company October 28, 2013
**Represents consensus analyst estimates as of December 6, 2013
Net Income Per Share
(Non-GAAP)
$0.02 $0.01 $0.00 $0.00 **
($0.01)
($0.03) *
Sept. Dec. March June Sept. Dec. 2012 2012 2013 2013 2013 2013
*Includes ~$640,000 increase in R&D expenses for new product tape-outs
18 © 2013 GigOptix, Inc. All Rights Reserved
Trended Revenue by Product Lines
$ Millions FY 2011 FY 2012 Q4’12 Q1’13 Q2’13 Q3’13
High-Speed Communications $16.3 $21.4 $4.2 $4.6 $4.5 $5.2
A. Optics $11.3 $18.1 $3.5 $4.4 $4.1 $4.9
B. RF $5.0 $3.2 $0.7 $0.2 $0.4 $0.3
Industrial (ASIC) $15.4 $14.5 $2.8 $2.3 $2.3 $2.1
Government $0.6 $0.9 $0.9 $0.0 $0.0 $0.0
Total Revenue $32.3 $36.7 $7.9* $6.9 $6.8 $7.3
Percent of Total Revenue FY 2011 FY 2012 Q4’12 Q1’13 Q2’13 Q3’13
High-Speed Communications 50% 58% 53% 67% 67% 71%
A. Optics 35% 49% 44% 64% 61% 66%
B. RF 15% 9% 9% 3% 6% 5%
Industrial (ASIC) 48% 40% 36% 33% 33% 29%
Government 2% 2% 11%* 0% 0% 0%
*Included $0.9M of previously unrecognized government contract revenue
19 © 2013 GigOptix, Inc. All Rights Reserved
Financial Model (Non-GAAP)
YTD 2013 Long-Term
$ Millions FY 2011 FY 2012
(1Q—3Q) Model*
Revenue 100% 100% 100% 100%
Annual Growth Rate 10%-30%
Gross Profit 55% 56% 64% 55%-60%
Research & Development 35% 32% 42% 25%
Selling, General & Admin 25% 22% 22% 15%
Total Operating Expense 60% 54% 67% 40%
Operating Income -6% 1% -3% 15%-20%
*Company’s internal goal based on a 3-5 year timeline. Provided for discussion purposes only, and the Company provides no guarantee of achievement of these goals, nor commits to update this information. The Company’s ability to achieve this long-term model is subject to risks and uncertainties.
20 © 2013 GigOptix, Inc. All Rights Reserved
Balance Sheet & Capitalization
Balance Sheet 9/29/13 (Millions)
Cash & Equivalents $15.3
Accounts Receivable $7.1
Inventory $4.6
Other Current Assets $0.4
Total Current Assets $27.4
Long-term Assets $17.1
Total Assets $44.5
Current Liabilities $13.9
Long-term Liabilities $0.8
Total Liabilities $14.7
Total Equity $29.8
Total Liabilities & Equity $44.5
Cap Table Highlights (as of 12/6/13)
Common Stock Outstanding 21.7M
Stock Price $1.61
Market Cap ~$35M
Options Outstanding 10.3M
WAEP $2.34
RSUs Outstanding 1.5M
Warrants Outstanding 1.7M
Fully Diluted Shares
22.4M
(Treasury Method)
21 © 2013 GigOptix, Inc. All Rights Reserved
Thank you
© 2013 GigOptix, Inc. All Rights Reserved
