Rudolph Technologies. Investor Presentation. Sidoti Conference, September 2018

Transcription

1 Rudolph Technologies Investor Presentation Sidoti Conference, September 2018

2 Building a Business for Sustainable Growth Increasing the pace of innovation while driving operational efficiencies Company NYSE Revenue (TTM*) Operating Income (TTM*) Cash Balance (June 2018) Employees (Worldwide) RTEC $278 million $67 million $183 million ~ % YoY +34% YoY +23% YoY On pace for FOURTH consecutive year of record revenue! * Trailing Twelve Months, as of June 30, 2018 Operating Income: non-gaap 2

3 Rudolph Technologies Corporate Strategy Providing Process Solutions for High Value Problems in High Growth Markets 3

4 Strategy and Markets Provide Growth Record Year Annual Revenue Relatively Flat 8 years Growth of ~50% 4 years * *2018 based on Wall Street estimates Strategy Shift 4

5 Rudolph s Diversified High Unit Growth Markets Providing Components for Multiple End Markets Mobility Sensing Advanced Packaging Communications Automotive Server Cloud Internet of Things Source: Gartner,

6 Large & Diverse Customer Base in High Growth Markets Broadens Opportunities For Growth, Reduces Risk! All Others * (145) 56% Top 10 Accounts 44% Trailing 12 Months Revenue by Market 15% 6% 2017 REVENUE PERCENTAGE BY ACCOUNT MEMORY IDM FOUNDRY IDM OSAT PROBE OEM 16% ADV. PKG. FE MEMORY RF MEMS CIS OTHER FP Display 40% 23% *Customers > $50,000 Revenue 6

7 Strategic Market Positions Rudolph Process Control Installations (Last 18 Months Shown) Integral Solutions for Top Manufacturers in Each Growth Market Memory 1 Installed at 5 of 6 Top Producers Advanced Packaging 2 Installed at 6 of 6 Top Producers RF Wireless 1 MEMS 2 Installed at 5 of 6 Top Producers Installed at 5 of 6 Top Producers Source: 1 Gartner 2017 Market Share; 2 IHS 2017; Company data shown in rank order 7

8 Market Growth Key Market Positions Mkt. by Rev. #5 RF * Key Market CAGR's 16% Core Market Long-term Growth #3 Foundry 9% #2 AP/OSAT 8% #1 Memory 4% CMOS Sensors 11% New Market Opportunities VCSEL 31% 0% 5% 10% 15% 20% 25% 30% 35% * SEMI Forecast,

9 Headwinds to Growth Key Market Inflections (Bull/Bear Differences: SEMI v. Gartner Forecast) 1H 18 Strong - 2H Headwinds into 19 Gartner projects down, SEMI projects up 2H AP/OSAT Sluggish Mixed signals across Apple s iphone supply chain 24/7 Wallstreet Memory CapEx stalls NAND/DRAM oversupply and lower ASP s China positioned to buck this trend Bitcoin implosion Smartphone sales in single digits Impact across segments/supply chain 5G Roll-out R&D and infrastructure centered Handsets/filters impact in late 19 / 20 Largest RF segment - 20% CAGR 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% -10.0% -20.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% -10.0% -20.0% -30.0% Gartner CapEx Projections by Mfg. Type 2Q ' % 13.0% 8.4% 9.5% 2.6% 2.7% 3.8% %-6.0% -4.2% -12.3% -12.1% IDM Foundry SATS Gartner CapEx Projections by Device App 2Q ' % 20.7% 14.5% 7.2% 0.9% 2.0% 1.7% % -1.0% % % -17.4% Logic (Including Mixed Signal) Memory Others (Opto, Power Discrete, Compound) 9

10 Broad Technology Portfolio, Foundation for Solutions INSPECT Defect Detection Silicon to Die Dicing Process Control Interconnect Metrology 3D/2D Inspection Residue Detection CORE COMPETENCIES MEASURE On Product and In-die Multi-layer Film Stacks UBM, RDL, PR, PI, Dielectrics Structure CD Lithography Lithography down to sub-micron Fan-out and Cu Pillar Wafer and Panel ANALYZE Process Analysis Process Control Tool-centric and Fabwide FRONT-END BACK-END SILICON RUDOLPH SOLUTIONS APPLY ACROSS THE SEMICONDUCTOR VALUE CHAIN TEST 10

11 Rudolph s Fan-out Productivity Solution StepFAST (Feed-forward Adaptive Shot Technology) Discover Software Firefly System Feed Forward Analyze Feed Forward JetStep System Measure 300% PRODUCTIVITY INCREASE* Adaptive Print How to print random die shift? Additional processing induced error Solution to Die Shift Challenges for Wafer & Panel Process 11

12 Increasing the Pace of Innovation The third tenet of our strategy Sustainable, profitable, growth. Relentless focus on operational efficiency. Increasing the pace of innovation. R&D as % of Revenue 25% 20% 18.6% 19.3% 18.4% Maintaining a healthy investment in R&D while driving acceptable profit for long term sustainability. 15% 10% 5% 0%

13 Next Generation Stepper for HD Displays First of a kind for lithography Speed of scanner Better resolution without stitching Significant improvement in COO Dual lens system with both lenses matched and running independently Gen 4.5 Duo System planned for Q1 Commercial G6 (1500mm x 1850mm) Multiple customers engaged Specification discussions beginning 13

14 2020 Growth Potential: High Resolution Displays Rudolph developing a lithography solution for TFT backplanes* Backplane required to control pixels for any display Emitted light from display: AMOLED Quantum Dot MicroLED TFT Backplane ~$500M TAM *TFT Backplane: Thin Film Transistors that provide power for each R-G-B pixel segment Source: Company estimate based on China display fabs planned 14

15 Long-Term Operating Financial Model $250M MODEL $300M MODEL $350M MODEL $400M MODEL Gross Margin 53% 54% 55% 55% Operating Margin 22% 25% 28% 30% Existing Operations Model excludes the impact of OLED Initiative which is expected to be accretive to operating margins. Source: Management estimates based on a Non-GAAP model 15

16 Key Takeaways Diversified Markets Across Semiconductor Industry Delivering sustained profitable growth. Broad Synergistic Technology Portfolio Delivering comprehensive solutions to high value problems! Strong Financial Model Profitable growth, fueling R&D & Cash for strategic M&A Increasing TAM Display market can add an estimated $500M to our TAM 16

17 Thank You!