2014 GigOptix, Inc.

All Rights Reserved

PoweringHighSpeedNetworks
NYSEMKT:GIG
Needham Gr ow t h Conf er enc e
J anuary 14, 2014
2014 GigOptix, Inc. All Rights Reserved
22
Disclaimer
ForwardLookingStatements:
Thispresentationcontainsstatementsregardingoperatingtrends,futureresults,newprojects,andother
market,businessandproducttrendsthatareforwardlooking.Weundertakenoobligationtoupdateorrevise
theforwardlookingstatements,whetherasaresultofnewinformation,futureeventsorotherwise.Additional
factorsthatcouldcauseactualresultstodifferarediscussedundertheheading"RiskFactors"andinother
sectionsoftheGigOptixfilingswiththeSEC,andinGigOptixsothercurrentandperiodicreportsfiledor
furnishedfromtimetotimewiththeSEC.
UseofNonGAAPandAdjustedEBITDAFinancialMeasures:
ThesematerialsincludereferencestononGAAPrevenue,nonGAAPnetincome/loss,Adjustedconsolidated
nonGAAPnetincome/loss,andAdjustedEBITDA.GigOptixbelievesthatthesenonGAAPfinancialmeasures
areimportantindicatorsoftheongoingoperationsofitsbusinessandprovidebettercomparabilitybetween
reportingperiodsandprovideabetterbaselineforanalyzingtrendsinGigOptixsoperations.GigOptixdoesnot,
nordoesitsuggestthatinvestorsshould,considersuchnonGAAPandAdjustedEBITDAfinancialmeasuresin
isolationfrom,orasasubstitutefor,financialinformationpreparedinaccordancewithGAAP.GigOptixbelieves
thedisclosureoftheeffectsoftheseitemsincreasesthereadersunderstandingoftheunderlyingperformance
ofthebusinessandthatsuchnonGAAPandAdjustedEBITDAfinancialmeasuresprovideinvestorswithan
additionaltooltoevaluateourfinancialresultsandassessourprospectsforfutureperformance.
2014 GigOptix, Inc. All Rights Reserved
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GigOptixOverview
EmergingFablessLeaderinICsforHighSpeedCloud
CommunicationLinksandNetworkApplications
CoreProductsTarget3Markets:
Cloudconnectivity
Highspeedopticalandwirelessnetworks
Industrial
Customerbase: Tier1&2equipmentOEMsandODMs
MarketLeadership: OpticalenginesforActiveOpticalCablesand100Gbps
Coherentnetworkingsystems
SolidFinancialPosition:
Q413revenueof~$7.8M*,up~7%Q/Qandaboveguidanceofup5%Q/Q
Raised$12.6MnetinoversubscribedsecondarystockofferinginDec.2013
Q313revsof$7.3M;NonGAAPGMof62%;NoLTD;netcashof$9.3Mnot
includingtherecentstockoffering
31.3MsharesO/S;MarketCapof~$54M
113Patents:CoreIPleveragedinourmajormarkets
Headquarters:SanJose,California
83employeesglobally,41inEngineering
* Preliminary revenue guidance provided J anuary 14, 2014
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GigOptixFocusedMission
EndUserDataCenter
PointtoPoint
WirelessLinks
Backhaul
Datacom
OpticalLinks
Cloud&Edge
OpticalLinks&
motiongesture
amplification
EnablingHighspeedendtoendNetworkConnectivity
Consumer
Electronics
TelecomOptical
Links
Core&Metro
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HighSpeed
Communications
(69%)
Industrial
(31%)
GigOptixBusiness
3 ~$29M 83
FY2013Forecast
Revenue
Employees
Optical(64%)
Core&Metro(telecom)
Cloud&Edge(datacom)
Consumers(highspeed)
RF(5%)
CustomASIC(31%)
Markets
SanJose,CA
Seattle,WA
Zurich
MarketLeadership:
~50%of100GbpsCoherentDrivers&
~30%of40GbpsAOCDrivers&TIAs
6
67
10
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IndustrialCustomizedASICs
GigOptix Markets&Solutions
Cloud&Edge
NetworksLinks
Core&Metro
NetworksLinks
ConsumerElect.
HighSpeedLinks
Drivers,TIAsfor
AOCs&Pluggables
Drivers,TIAs&
Modulators
Drivers,TIAsfor
AOC&Motion/
GestureTracking
HighSpeedendtoendsolutionsviaHighSpeedlinks
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CoreTechnologyLeverage
D
r
i
v
e
r
DEMUX
PD
T
I
A
MUX
L
a
s
e
r
Modulator
D
r
i
v
e
r
DEMUX
PD
T
I
A
MUX
L
a
s
e
r
Modulator
D
r
i
v
e
r
DEMUX
PD
T
I
A
MUX
L
a
s
e
r
Drivers,TIAs
<1m
GigOptix Components
Drivers,TIAs
1m 40Km
Drivers,TIAs
TFPSModulators
>40Km
UniversalSolutionsForAllOpticalLinks:AllDistancesand
Speeds;ResolveKeyChallengesOfTheMarket:Price,Power,
Performance,FormFactorCapacity,AgilityAndRobustness
Cloud&Edge
NetworksLinks
Core&Metro
Networkslinks
ConsumerElect.
HighSpeedLinks
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MetroReach
Core&MetroLinks:100Gbps 400GbpsCoherent
CoreNetwork Mobile Access/Data
Center
Todayssolution:transceivers Tomorrow:smallFFintegration
CFP CFP2 CFP4
GIGTFPSModulator
GIGDriver
GIGTIA
Source:OVUMReport+GigOptixManagement
GigOptixDifferentiation: TIAs&Driversforallspeeds&formats
Leadingpositionin100GCoherent
GigOptixRevenue2013:$13M(mgmt.est.)Launchedin2007
MarketForecast2013:ICsTAM:~$100M 22%CAGR(2013 16)
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MetroReach
Cloud&EdgeLinks:40Gbps&100GbpsParallel
Mobile Access/Data
Center
Parallelopticslinksfor4and12channelsof10,16and28Gbps
Source:LightCountingReport+GigOptixManagement
GigOptixRevenue2013:$5M(mgmt.est.)Launchedin2009
MarketForecast2013:ICsTAM:~$100M45%CAGR(2013 16)
GigOptixDifferentiation: Soleparalleldevicemerchantsupplier
TIAs&DriversforFDR,EDR,QSFPSR&LR
TIAIC
PIN VDIC
VDIC
TIAIC
VCSEL
VCSEL
Array
PD
Array
Lens
Array
Lens
Array
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GigOptixComponentsPoweringFastGrowingHighSpeed
ConsumerOpticalLinkApplications
4K/8KTVsconnectivity
Embeddedactiveopticalcables(eAOCs)
Gesturerecognitionandmotiontracking
2D/3Dresolution
ConsumerElectronics:HighSpeedOpticalLinks
Source:LightCountingReport+GigOptixManagement
GigOptixDifferentiation: LeveragingtheAccessmaturetechnology
DevicesinAOCs,EAOCsandBackplanes
2013
2014 2015
$64M
$126M
$32M
$16M
GigOptixRevenue2013:$1M(mgmt.est.)Launchedin2013
MarketForecast2013:ICsTAM:~$2.5M 170%CAGR(2013 16)
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MetroReach
RFBackhaulPointtoPointWireless
CoreNetwork Mobile Access/Data
Center
EBandBackhaulPointtoPointWirelessWithLeadingIntegration
AndArchitecturePoweredByGigOptixChipsets
Source:Gartner,Inc.+GigOptixManagement
GigOptixRevenue2013:$1M(mgmt.est.) Launchedin2013
MarketForecast2013:ICsTAM:~$2.0M 120%CAGR(2013 16)
GigOptixDifferentiation: 2chipsolutionforEbandPtPbackhaul
Bestoutputpowerperformance
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GigOptixASICsProvideHighValueandCostEfficientCustomized
SolutionsforFPGAandASICConversions
CustomASIC:Industrial&Mil/Aero
PHY
PHY PHY
StandardCell StructuredASIC
CustomStructured
ASIC
Configurable
LogicCells
Configurable
MemoryBlocks
Standard
Cell
Configurable
LogicCells
Configurable
I/OCells
GigOptixRevenue2013:$9M(mgmt.est.)Launchedin2010
MarketForecast2013:ICsTAM:~$100M5%CAGR(2013 16)
GigOptixDifferentiation: ProviderCustomStructuredASICs
SupportingFPGAandASICconversion
Source:Gartner,Inc.+GigOptixManagement
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KeyCustomerRelationships
OPTICAL INDUSTRIAL
RF
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MultipleGrowthCatalysts
Telecom
Leadingsupplierof100GbpsCoherentdevicesforCore longhaulnow,
expandsinto MetroinCY2014
LeadingdeveloperofEBandwireless BackhaulpointtopointMMICs
for highspeedlastmileconnectivityfordeploymentin 2014
Datacom
SoleRFdevicemerchantsupplierforActiveOpticalCablesand
Pluggables >10Gbpsdatacenterfiber installations
LeadingsupplierinHighSpeedOpticalLinksforEdge &Cloud
ConsumerElectronics
HighSpeedOpticalLinksin CEdeploymentlate2013andshowrapid
growthinto2014
GamechangingRFamplifiersforgesture&motiontrackingtechnology
rampin2014withmajorOEMsofsmartphones,tabletsand
interactiveTVs
CustomASICapplicationsrevenuetoincreasein2014,as morefoundries
endoflifethe0.25umand0.35umlines
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IntellectualProperty
113Patents
13Patent
Applications
Highspeedintegratedcircuits
StandardcellsandstructuredASICarchitectures
HighspeedmodulatorusingThinFilmPolymeron
Silicon(TFPS)technology
RFmmwavecircuits
RFcommunicationsystems
IPProtection
Telecom:
Reachedglobalsettlementinlitigationagainst
M/ACominSeptember2013 Received$7.25M
Datacom:
SolidIPpositionaslargestindependentsupplierof
chipsetsforhighspeedopticalinterconnects
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ExecutiveTeam
Dr.AviKatz Founder,Chairman &CEO
Dr.RalucaDinu VP&GMHighSpeedComm.
AndreaBettiBerutto Founder,SVP&CTO
CurtSacks SVP&CFO
SteveChoate VPofOperations
AnilChaudhry VP&GMIndustrial
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RecentFinancialHighlights
Q3FY2013
IncreasedRevs7%sequentially
NonGAAPGMof62%;4
th
consecutiveQ>60%
StrongBalanceSheet*
Cashandequivof$15.3M
CurrentRatioof2.0
NoLongTermDebt
*AsofSeptember29,2013
Q4FY2013
Outlook&
Recent
Activities
Preliminaryrevenueof~$7.8M;up~7%Q/Q
Aboveguidanceofup5%Q/Q
Raised~$12.6Mnetthroughcommonstock
offering
NonGAAPexpensesexpectedtodecline~$0.5M
AdjustedEBITDAexpectedtoincrease
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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 J anuary 14, 2014
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FinancialModel(NonGAAP)
$Millions FY2011 FY2012
YTD2013
(1Q 3Q)
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.
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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
Longterm Liabilities $0.8
TotalLiabilities $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, which
excluded $6.0M borrowed on the line of credit
**Does not include net proceeds of ~$12.6M from
December 2013 stock offering
2014 GigOptix, Inc. All Rights Reserved
Thankyou