GigOptix (GIG) Needham Conference Version 1.14.14 FINAL

8/12/2019 GigOptix (GIG) Needham Conference Version 1.14.14 FINAL

1/21

2014 GigOptix, Inc. All Rights Reserved

PoweringHigh

Speed

Networks

NYSEMKT:

GIG

Needham Growth Conference

January 14, 2014


2/21

2014 GigOptix, Inc. All Rights Reserved22

DisclaimerForwardLookingStatements:Thispresentationcontainsstatementsregardingoperatingtrends,futureresults,newprojects,andother

market,businessandproducttrendsthatareforwardlooking.Weundertakenoobligationtoupdateorrevise

theforwardlookingstatements,whetherasaresultofnewinformation,futureeventsorotherwise.Additional

factorsthatcouldcauseactualresultstodifferarediscussedundertheheading"RiskFactors"andinother

sectionsof

the

GigOptix

filings

with

the

SEC,

and

in

GigOptixs

other

current

and

periodic

reports

filed

or

furnishedfromtimetotimewiththeSEC.

UseofNonGAAPandAdjustedEBITDAFinancialMeasures:

Thesematerials

include

references

to

non

GAAP

revenue,

non

GAAP

net

income/loss,

Adjusted

consolidated

nonGAAPnetincome/loss,andAdjustedEBITDA.GigOptixbelievesthatthesenonGAAPfinancialmeasures

areimportantindicatorsoftheongoingoperationsofitsbusinessandprovidebettercomparabilitybetween

reportingperiodsandprovideabetterbaselineforanalyzingtrendsinGigOptixsoperations.GigOptixdoesnot,

nordoesitsuggestthatinvestorsshould,considersuchnonGAAPandAdjustedEBITDAfinancialmeasuresin

isolationfrom,orasasubstitutefor,financialinformationpreparedinaccordancewithGAAP.GigOptixbelieves

thedisclosure

of

the

effects

of

these

items

increases

the

readers

understanding

of

the

underlying

performance

ofthebusinessandthatsuchnonGAAPandAdjustedEBITDAfinancialmeasuresprovideinvestorswithan

additionaltooltoevaluateourfinancialresultsandassessourprospectsforfutureperformance.


3/21


GigOptixOverviewEmerging

Fabless

Leader

in

ICs

for

High

Speed

Cloud

CommunicationLinksandNetworkApplications

CoreProductsTarget3Markets:

Cloudconnectivity

High

speed

optical

and

wireless

networks Industrial

Customerbase: Tier1&2equipmentOEMsandODMs

MarketLeadership: OpticalenginesforActiveOpticalCablesand100Gbps

Coherentnetworkingsystems

SolidFinancial

Position:

Q413revenueof~$7.8M*,up~7%Q/Qandaboveguidanceofup5%Q/Q

Raised$12.6MnetinoversubscribedsecondarystockofferinginDec.2013

Q313revsof$7.3M;NonGAAPGMof62%;NoLTD;netcashof$9.3Mnot

including

the

recent

stock

offering

31.3MsharesO/S;MarketCapof~$54M

113Patents:CoreIPleveragedinourmajormarkets

Headquarters:SanJose,California

83employeesglobally,41inEngineering* Preliminary revenue guidance provided January 14, 2014


4/21


GigOptixFocusedMission

EndUser DataCenter

Pointto

Point

WirelessLinks

Backhaul

Datacom

Optical Links

Cloud&Edge

OpticalLinks

&

motiongesture

amplification

EnablingHigh

speed

end

to

end

Network

Connectivity

Consumer

Electronics

TelecomOptical

Links

Core&Metro


5/21


HighSpeed

Communications

(69%)

Industrial

(31%)

GigOptixBusiness

3~$29M 83

FY2013Forecast

Revenue

Employees

Optical (64%)

Core&Metro(telecom)

Cloud&Edge(datacom)

Consumers

(high

speed)

RF(5%)

CustomASIC(31%)

Markets

SanJose,CA

Seattle,WA

Zurich

MarketLeadership:

~50%of100GbpsCoherentDrivers&

~30%of

40Gbps

AOC

Drivers

&

TIAs

6

67

10


6/21


IndustrialCustomized

ASICs

GigOptix Markets&Solutions

Cloud&Edge

NetworksLinks

Core&Metro

NetworksLinks

ConsumerElect.

HighSpeedLinks

Drivers,TIAsfor

AOCs&

Pluggables

Drivers,TIAs&

Modulators

Drivers,TIAsfor

AOC&

Motion

/

Gesture Tracking

HighSpeedendtoendsolutionsviaHighSpeedlinks


7/21


CoreTechnologyLeverage

Driver

DEMUXPD

TIA

MUX

Laser

ModulatorDriver

DEMUXPD

TIA

MUX

Laser

ModulatorDriver

DEMUXPD

TIA

MUXLaser

Drivers,TIAs

40Km

UniversalSolutions

For

All

Optical

Links:

All

Distances

and

Speeds;ResolveKeyChallengesOfTheMarket: Price,Power,

Performance,FormFactorCapacity,AgilityAndRobustness

Cloud&Edge

NetworksLinks

Core&Metro

Networkslinks

ConsumerElect.

HighSpeedLinks


8/21


MetroReach

Core&MetroLinks:100Gbps400GbpsCoherent

CoreNetwork Mobile Access/Data

Center

Todayssolution:transceivers Tomorrow:smallFFintegration

CFP CFP2 CFP4

GIGTFPSModulator

GIGDriver

GIGTIA

Source:OVUM

Report

+GigOptix

Management

GigOptixDifferentiation:

TIAs

&

Drivers

for

all

speeds

&

formats

Leadingpositionin100GCoherent

GigOptixRevenue 2013:$13M(mgmt.est.) Launchedin2007

MarketForecast 2013:ICsTAM:~$100M 22%CAGR(201316)


9/21


MetroReach

Cloud&EdgeLinks:40Gbps&100GbpsParallel

Mobile Access/Data

Center

Parallelopticslinksfor4and12channels of10,16and28Gbps

Source:Light

Counting

Report

+GigOptix

Management




Sole

parallel

device

merchant

supplier

TIAs&DriversforFDR,EDR,QSFPSR&LR

TIAIC

PINVDIC

VD IC

TIAIC

VCSEL

VCSEL

Array

PD

Array

Lens

Array

Lens

Array


10/21


GigOptixComponentsPoweringFastGrowingHighSpeedConsumerOpticalLinkApplications

4K/8KTVsconnectivity Embeddedactiveopticalcables(eAOCs) Gesturerecognitionandmotiontracking 2D/3Dresolution

ConsumerElectronics:HighSpeedOpticalLinks

Source:Light

Counting

Report

+GigOptix

Management


Leveraging

the

Access

mature

technology

DevicesinAOCs,EAOCsandBackplanes

2013 2014 2015

$64M

$126M

$32M

$16M


MarketForecast 2013:ICsTAM:~$2.5M 170%CAGR(201316)


11/21


MetroReach

RFBackhaulPointtoPointWireless

CoreNetwork Mobile Access/Data

Center

EBandBackhaulPointtoPointWirelessWithLeadingIntegrationAndArchitecturePoweredByGigOptixChipsets

Source:Gartner,

Inc.

+GigOptix

Management


MarketForecast 2013:ICsTAM:~$2.0M 120%CAGR(201316)


2chip

solution

for

Eband

PtPbackhaul

Bestoutputpowerperformance


12/21


GigOptixASICsProvideHighValueandCostEfficientCustomizedSolutionsforFPGAandASICConversions

CustomASIC:Industrial&Mil/Aero

PHY PHY PHY

StandardCellStructuredASIC CustomStructured

ASIC

Configurable

LogicCells

Configurable

MemoryBlocks

Standard

Cell

Configurable

LogicCells

Configurable

I/OCells




Provider

Custom

Structured

ASICs

SupportingFPGAandASICconversion

Source:Gartner,

Inc.

+GigOptix

Management


13/21


KeyCustomerRelationships

OPTICAL INDUSTRIAL

RF


14/21


MultipleGrowthCatalysts Telecom

Leadingsupplierof100GbpsCoherentdevicesforCore longhaulnow,expandsinto MetroinCY2014

LeadingdeveloperofEBandwireless BackhaulpointtopointMMICsfor high

speed

last

mile

connectivity

for

deployment

in 2014

Datacom

SoleRFdevicemerchantsupplierforActiveOpticalCablesandPluggables >10Gbpsdatacenterfiber installations

Leadingsupplier

in

High

Speed

Optical

Links

for

Edge &

Cloud

ConsumerElectronics

HighSpeedOpticalLinksin CEdeploymentlate2013andshowrapidgrowthinto2014

Game

changing

RF

amplifiers

for

gesture

&

motion

tracking

technology

rampin2014withmajorOEMsofsmartphones,tabletsand

interactiveTVs

CustomASICapplicationsrevenuetoincreasein2014,as morefoundriesendoflifethe0.25umand0.35umlines


15/21


IntellectualProperty

113Patents

13Patent

Applications

Highspeedintegratedcircuits

StandardcellsandstructuredASICarchitectures

HighspeedmodulatorusingThinFilmPolymeronSilicon

(TFPS)

technology

RFmmwavecircuits

RFcommunicationsystems

IP

Protection

Telecom:

ReachedglobalsettlementinlitigationagainstM/ACominSeptember2013Received$7.25M

Datacom:

SolidIPpositionaslargestindependentsupplierofchipsetsforhighspeedopticalinterconnects


16/21


ExecutiveTeam

Dr.AviKatz Founder,Chairman &CEO

Dr.RalucaDinu VP&GMHighSpeedComm.

AndreaBettiBerutto Founder,SVP&CTO

CurtSacks SVP&CFO

SteveChoate VPofOperations

AnilChaudhry VP&GMIndustrial


17/21


RecentFinancialHighlights

Q3FY2013

IncreasedRevs7%sequentially NonGAAPGMof62%;4th consecutiveQ >60% StrongBalanceSheet*

Cashand

equiv

of

$15.3M

CurrentRatioof2.0 NoLongTermDebt

*AsofSeptember29,2013

Q4FY2013Outlook&

Recent

Activities

Preliminaryrevenueof~$7.8M;up~7%Q/Q Aboveguidanceofup5%Q/Q

Raised~$12.6Mnetthroughcommonstock

offering NonGAAPexpensesexpectedtodecline~$0.5M AdjustedEBITDAexpectedtoincrease


18/21


TrendedRevenuebyProductLines

$Millions Q4'12 Q1'13 Q2'13 Q3'13 Q413G

HighSpeedCommunications $4.2 $4.6 $4.5 $5.2 ~$5.5

A. Optics $3.5 $4.4 $4.1 $4.9

B. RF $0.7 $0.2 $0.4 $0.3

Industrial (ASIC) $2.8 $2.3 $2.3 $2.1 ~$2.3

Government $0.9 $0.0 $0.0 $0.0

TotalRevenue $7.9* $6.9 $6.8 $7.3 ~$7.8#

PercentofTotalRevenue Q4'12 Q1'13 Q2'13 Q3'13 Q4'13G

HighSpeedCommunications 53% 67% 67% 71% ~70%

A. Optics 44% 64% 61% 66%

B. RF 9% 3% 6% 5%

Industrial (ASIC) 36% 33% 33% 29% ~30%

Government 11%* 0% 0% 0% 0%

*Included $0.9M of previously unrecognized government contract revenue # Preliminary revenue guidance provided January 14, 2014


19/21


FinancialModel(NonGAAP)

$Millions FY2011 FY2012 YTD2013

(1Q3Q)

LongTerm

Model*

Revenue

Annual Growth Rate

100% 100% 100% 100%

10%30%

GrossProfit 55% 56% 64% 55%60%

Research& Development 35% 32% 42% 25%

Selling, General&Admin 25% 22% 22% 15%

Total OperatingExpense 60% 54% 67% 40%

OperatingIncome 6% 1% 3% 15%20%

*Companys 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 Companys ability to achieve this long-term model is subject to

risks and uncertainties.


20/21


BalanceSheet&Capitalization

Cash&Equivalents** $15.3

Accounts Receivable $7.1

Inventory $4.6

OtherCurrentAssets $0.4

Total CurrentAssets $27.4

Longterm Assets $17.1

TotalAssets $44.5

CurrentLiabilities $13.9

Long

term Liabilities $0.8TotalLiabilities $14.7

Total Equity $29.8

Total Liabilities&Equity $44.5

BalanceSheet9/29/13(Millions) CapTableHighlights(asof1/8/14)

CommonStockOutstanding 31.3M

Stock Price $1.73

MarketCap ~$54M

OptionsOutstanding 10.3M

WeightedExercise Price $2.34

RSUsOutstanding 1.5M

WarrantsOutstanding 1.7M

**Net cash as of Sept. 29, 2013 was $9.3M, whichexcluded $6.0M borrowed on the line of credit

**Does not include net proceeds of ~$12.6M fromDecember 2013 stock offering

GigOptix (GIG) Needham Conference Version 1.14.14 FINAL

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