Exhibit 99.3
Mark W. Blodgett
Chief Executive Officer
Safe Harbor Disclaimer
The statements set forth in this presentation include forward-looking statements that involve risk and uncertainties. The Company wishes to caution that a number of factors could cause actual results to differ materially from those in the forward-looking statements. These and other factors which could cause actual results to differ materially from those in the forward-looking statements are discussed in the Company’s filings with the Securities and Exchange Commission.
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Key Statistics
NASDAQ Ticker STKR
Stock Price $0.86
Market Capitalization $22 million
52 Week Price Range $0.82 - $2.73
Average Volume (3 months) 123,000 shares
Cash, 03/31/05 $1.2 million
Assets, 03/31/05 $31 million
Short Term Debt, 03/31/05 $1.9 million
Shares 24.5 million
Management ownership 13%
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Investment Thesis
We have market and technology leadership in growing markets
Machine vision lasers
LED technology
Specialty optical fiber
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Investment Thesis
We have established a solid customer base in diverse industries
Industrial (Perceptron, Seagate, KLA)
Defense (BAE, Honeywell, Northrop)
Medical (GE Medical, OpusMed)
Telecom (Mitsubishi, JDS Uniphase)
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Investment Thesis
Our strategy is focused on revenue and profit generation by leading niche segments of the market
We are showing results
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Company Overview
Founded in 1955
Leading provider of inspection products, diffractive optics, and specialty fiber
Markets include: worldwide machine vision, defense, medical and optical communications
Headquartered in Salem, N.H. with facilities in:
Montreal, Quebec
Cork, Ireland
Singapore
182 employees worldwide
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Investing for the Future
Invested $29 Million in research and product development $3.5 M in ‘04
Plant and equipment investment totals $26 Million
IP portfolio
New product momentum
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Technology Competencies
We have core competencies in:
Optical/Mechanical Design
Electronics/Thermal Control
Characterization & Testing
Product Design & Packaging
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Technology Competencies
We combine these core technologies to produce application specific products in the following product lines:
Lasers
LEDs
Illumination
Specialty optical fiber (SOF)
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Technology Competencies
Proprietary, world class LED technology, Chip-On-Board (COB)
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Sales Breakdown
Optical 6%
LEDs 10%
Illumination 35%
Lasers 49%
Asia 15%
Europe 30%
Americas 55%
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Machine Vision Industry
A machine vision system consists of:
Software
Sensor / Camera
Lighting (2D and 3D)
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Machine Vision Industry
Automated Imaging Association estimates:
North American market in 2003: $1.6 billion
Illumination market available to StockerYale: $120 million
Projected 2005 growth: 20%
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Machine Vision: Lasers
Structured light lasers used for 3D measurement
STKR lasers holds dominant market position (35%)
Performance and quality leader
Applications
Semiconductor Electronics
Lumber Optimization
Automotive
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Machine Vision: LEDs
Proprietary Chip-On-Board Technology
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Machine Vision: LEDs
Design Flexibility: Compact, Uniform and Intensely Bright
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Machine Vision: LEDs
Targeted Markets:
Automotive
Web Inspection
Medical
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Defense / Security
Emerging market for lasers, LEDs, and specialty optical fiber
New applications for military aircraft and civilian airplanes
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Defense / Security
StockerYale’s Infrared LED Illuminator
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Mitsubishi & StockerYale
Joint Distribution
Research & Development
Brand Building
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Medical
Life & health sciences will provide non-cyclical growth opportunities:
Dermatology
X Ray positioning
Gene sequencing
Pathogen detection
Optical coherence tomography
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Growing Global Customer Base
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Quarterly Revenue Trends
5,000
4,500
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
0
4Q-03
1Q-04
2Q-04
3Q-04
4Q-04
1Q-05
2Q-05
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Positioned for Growth
Dominant market position in key growth markets; # 1 in:
Structured Light Lasers
Fluorescent Microscope Illuminators
Chip-on-Board LEDs for inspection
Phase Masks
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Positioned for Growth
Strong global demand for automated inspection
Electronics & semiconductors remain great markets to serve
Autos, lumber, food, pharmaceutical, textiles growing
Positioned for growth—LEDs and Specialty Optical Fiber
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Business Objectives
Increase sales 25%+
Improve gross margins from 25% to 38%
Generate cash flow from operations
Continue to strengthen balance sheet
Product line acquisition
EBITDA positive in second-half of 2005
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Thank you!