Airgain A leading provider of advanced antenna technologies

Transcription

1 Airgain A leading provider of advanced antenna technologies Investor presentation September 2017

2 Important caution regarding forward looking statements This presentation contains forward-looking statements. All statements other than statements of historical facts contained in this presentation, including statements regarding our future operating results, financial position and cash flows, our business strategy and plans and our objectives for future operations are forward-looking statements. In some cases, you can identify forwardlooking statements by terms such as believe, may, will, estimate, continue, anticipate, plan, target, project, contemplate, predict, potential, would, could, should, intend and expect or the negative of these terms or other similar expressions. These statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. These risks, uncertainties and other factors include, without limitation: the market for our antenna products is developing and may not develop as we expect; our operating results may fluctuate significantly, which makes our future operating results difficult to predict and could cause our operating results to fall below expectations or our guidance; our products are subject to intense competition, including competition from the customers to whom we sell, and competitive pressures from existing and new companies may harm our business, sales, growth rates and market share; our future success depends on our ability to develop and successfully introduce new and enhanced products for the wireless market that meet the needs of our customers; our business is characterized by short product development windows and short product lifecycles; we sell to customers who are extremely price conscious, and a few customers represent a significant portion of our sales, and if we lose any of these customers, our sales could decrease significantly; we rely on a few contract manufacturers to produce and ship all of our products, a single or limited number of suppliers for some components of our products and channel partners to sell and support our products, and the failure to manage our relationships with these parties successfully could adversely affect our ability to market and sell our products; if we cannot protect our intellectual property rights, our competitive position could be harmed or we could incur significant expenses to enforce our rights; our international sales and operations subject us to additional risks that can adversely affect our operating results and financial condition; our ability to identify and consummate strategic acquisitions, and risks associated with completed acquisitions adversely affecting our operating results and financial condition; and other risks described in our filings with the Securities and Exchange Commission (SEC), including under the heading Risk Factors in our Annual Report on Form 10-K and any subsequent filings with the SEC. You are cautioned not to place undue reliance on these forward looking statements, which speak only as of the date here of, and we undertake no obligation to revise or update this presentation to reflect events or circumstances after the date hereof. All forwardlooking statements are qualified in their entirety by this cautionary statement, which is made under the safe harbor provisions of the Private Securities Litigation Reform Act of This presentation also contains estimates and other statistical data made by independent parties and by us relating to market size and growth and other data about our industry. This data involves a number of assumptions and limitations, and you are cautioned not to give undue weight to such estimates. In addition, projections, assumptions and estimates of our future performance and the future performance of the markets in which we operate are necessarily subject to a high degree of uncertainty and risk. 2

3 Who we are Switched directional antennas 212 patents & applications worldwide Point-to-multipoint antenna selection Optimal antenna pattern selection Dynamic selection for MIMO systems 3

4 Global engineering and solutions Airgain s worldwide service offerings are more relevant than ever The necessity for real world performance testing, validation services, and device characterization has become a requirement, not just a benefit Unique customer support across sales, design, supply chain and delivery Scottsdale, AZ Design, manufacturing & sales office San Diego, USA Headquarters, sales & design offices Melbourne, FL Design office London, UK Sales & design office Shenzhen, China Sales & design offices Seoul, South Korea Sales office Suzhou, China Sales & design office Taipei, Taiwan Sales office 4

5 Business model Strengthened financial position Diversified, broad base of blue chip customers driving consistent revenue growth Long product lifecycles Well-positioned for growth Asset light operating model utilizing third-party, contract manufacturing Product suite well positioned within high growth segments Highly scalable platform for organic and inorganic growth Our global presence is paramount to our success Customer support across sales, design, supply chain, and delivery are unique to Airgain Regional presence includes sales, design, integration, and technical support 5

6 Who we work with 6

7 Global Megatrends Connected Everything By 2020 there will be close to 7 times the numbers of connected devices as people on the planet* *Source: PwC, Technological Breakthroughs: 7

8 Our opportunity New Technology Alliance Memberships New technologies and end applications are increasing the need for better throughput to support and connect multiple types of devices, with a multitude of complex technologies Strong customer base in the connected home, with a refresh cycle being driven by new technologies, namely Docsis 3.1 and ac, and a multi-year ax follow-on cycle The need for improved connectivity is accelerating growth in public and private fleets, and driving innovation in connected cars Connectivity is moving beyond the need to access data, as end points become creators of data and not consumers Through our early involvement in new technology trials and reference designs, we believe we have effectively positioned ourselves to take advantage of anticipated growth in new markets Strategic Alliance memberships further enhance our business and products through the acquisition of technical knowledge and collaboration, while working globally with innovative partners and major mobile network operators 8

9 Addressable market for Airgain (2017 to 2022 CAGR) Projected total market growth from 2.5b to 4.8b* 10% 12% 19% 21% Enterprise Connected home IoT Auto *Sources: ABI and Machina Forecasts,

10 Connected car market opportunity Fleet management Safety, infotainment, internet and navigation Aftermarket 55M in 2020* Auto OEM 100M in 2020* Outdoor antennas Dual-LTE, Dual- Wi-Fi, GPS Components for Tier 1 & 2 suppliers Embedded & external antennas *Source: Machina Research IoT Forecast,

11 Leveraging our core technologies into new automotive opportunities Aftermarket: Fleet Connectivity Mobile fleets require rugged external solutions for data, telematics and asset track connectivity Rugged external multi-technology antennas provide connectivity for public safety and private fleets Our multiple RF Technology capabilities enable a complete solution Embedded and external connectivity solutions for Cellular/LTE, 5G, GNSS (GPS), Wi-Fi, Bluetooth, UHF and more OEM: Connected Car Connected Cars require internal and external antennas for a complete solution Internal: In-car infotainment, gateways and driver interface External Shark fin : Driver assistance and safety, vehicle to vehicle and infrastructure, vehicle software updates and driver behavior Fleet management Well-being Safety Drive assistance Mobility management Infotainment 11

12 Expanding opportunity for IoT (Internet of Things) connectivity The proliferation of IoT devices continues to create profit and growth potential, with a projected 1.5b in 2020* M2M and Industrial IoT In-building, Out-building and On-building connectivity solutions for commercial, retail and office Outdoor kiosk, signage and asset connectivity and tracking Connected Smart Home and Smart City Embedded and external connectivity solutions for low power wide area networking, such as NB-IoT and LoRa Seemingly endless connectivity options from people and animals, to in-home gateways to city man-hole covers *Sources: ABI and Machina,

13 Airgain s critical position in value chain Airgain continues to be the essential value-added partner that our customers rely on, and our strong reputation is highly valued within the customer ecosystem Client Carriers Client Chipset Suppliers Objective Influence Influence Partner Objective Partner Key Accounts Engage Key Accounts Client Objective OEMs & ODMs Engage Key Accounts 13

14 The evolution of in-home cable bandwidth DOCSIS 2.0 (1) DOCSIS 3.0 DOCSIS 3.1 DOCSIS 3.1 Full Duplex Full Highlights Higher upstream speed Greatly enhances capacity Capacity & efficiency progression Symmetrical streaming & increased upload speeds Downstream Capacity 40 Mbps 1 Gbps 10 Gbps 10 Gbps Production Date TBD G N AC (I) AC (II) Next Generation Wi-Fi (2) 54 Mbps antennas 600 Mbps antennas 1750 Mbps 2014-Today 4-12 antennas 6930 Mbps Today 4-12 antennas Number of potential U.S. subscriber units to be upgraded: 178million (3) Sources: 1-CableLabs / 2-Wi-Fi Findings by D-Link, Sept 2014 / 3-Leichtman Research: 59 mil Cable Broad Band subscribers and 48.6 mil TV viewers with on average 1.5 STBs 14

15 Revenues Annual revenue ($M) Quarterly revenue ($M) Q1 Q2 Q3 Q4 $12.6 $43.4 $9.3 $12.4 $27.8 $24.3 $6.7 $9.9 $13.0 $6.1 $5.7 $8.5 $ Through Q

16 Potential growth opportunities Favorable market tailwinds ac wireless networking standard requires more antennas per device and natural replacement cycle Create additional pull from carriers Demonstrate continued ROI of solutions to drive adoption Geographic expansion Leverage wins in emerging devices such as Smart metering and IoT New market expansion such as automotive, enterprise and small cell New products such as SaaS-based Wi-Fi monitoring solution for carriers 16

17 Key takeaways Leader in high performance antenna solutions for heterogeneous next-gen wireless devices and networks Growing addressable market, driven by proliferation of Wi-Fi connected devices, data intensive applications, streaming video and multiple connectivity standards for a connected planet Compelling business model with history of predictable revenue growth and profitability Strong outlook for potential growth and total market expansion Well protected technology position with 212 patents and applications worldwide (June 30, 2017) Seasoned management team with 20+ years of average industry experience 9.5M Shares outstanding $36.5M Key Stats* 7.5M 40% Free float (est.) Institutional holdings Cash and equivalents (mrq) Founded IPO *As of June 30 th

18 Contact us Chuck Myers CEO & President Alexis Waadt Director of Investor Relations Airgain, Inc Valley Centre Drive Suite 150 San Diego, CA