Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - Acacia Communications, Inc. | d525305d8k.htm |
 Investor Presentation
March 16, 2017 Exhibit 99.1 |
 Copyright © 2017 – All Rights Reserved – Acacia Communications, Inc. I Connecting at the Speed of Light® 2 Safe Harbor Statement This presentation may contain forward-looking statements that involve substantial risks and uncertainties. All statements,
other than statements of historical facts, contained in this
presentation, including statements regarding our strategy, future
operations, future financial position, future revenues, projected costs,
prospects, plans and objectives of management, are
forward-looking statements. The words “anticipate,”
“believe,” “estimate,” “expect,” “intend,” “may,” “plan,” “predict,” “project,” “target,” “potential,” “will,” “would,” “could,” “should,”
“continue,” and similar expressions are intended to identify forward- looking statements, although not all forward-looking statements contain these identifying words.
We may not actually achieve the plans, intentions or expectations disclosed in
our forward-looking statements, and you should not place
undue reliance on our forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in the forward-looking statements we make. The forward-looking statements contained in
this presentation reflect our current views with respect to
future events, and we assume no obligation to update any forward- looking statements. Forward-looking statements represent our management’s beliefs and assumptions only as of the date of the preliminary
prospectus, and our actual future results may be materially
different from what we expect. We have included important factors
in the cautionary statements included in the Form 10-K for the twelve month
period ended December 31, 2016 and other documents we have filed
with the SEC, particularly in the Risk Factors section, that we believe could cause actual results or events to differ materially from the forward-looking statements that we make. Except as required by law, we assume no
obligation to update these forward-looking statements publicly, or to
update the reasons why actual results could differ materially
from those anticipated in the forward-looking statements, even if new information becomes available in the future. Non-GAAP Financial Measures This presentation includes measures defined by the SEC as non-GAAP financial measures. We believe that these non-GAAP
financial measures can provide useful supplemental information to
investors when read in conjunction with our reported results.
Reconciliations of these non-GAAP financial measures to their closest GAAP
measures are available in the Appendix to this presentation and
descriptions of these non-GAAP financial measures can be find in our earnings release with respect to our fourth quarter and full year 2016 results. |
 Copyright © 2017 – All Rights Reserved – Acacia Communications, Inc. I Connecting at the Speed of Light® 3 Acacia at a Glance Maynard, MA (headquarters) Holmdel, NJ Mountain View & San Jose, CA Ontario, Canada Limerick, Ireland Brondby, Denmark High Wycombe, UK Bangalore, India Shenzhen, China Founded in 2009 45% of employees hold a Ph.D 1 or other advanced degree >$1M revenue per employee 1 1. As of December 31, 2016 290 employees 1 |
 Copyright © 2017 – All Rights Reserved – Acacia Communications, Inc. I Connecting at the Speed of Light® 4 Our Mission SILICONIZATION OF OPTICAL INTERCONNECT Deliver silicon-based interconnects that transform cloud and communication networks by
simplifying
these networks, digitizing
numerous complex analog functions, and providing
significant improvements in speed, capacity and power consumption
|
 Copyright © 2017 – All Rights Reserved – Acacia Communications, Inc. I Connecting at the Speed of Light® 5 We believe our approach - leveraging silicon - is causing disruption in the industry Strong financial performance – Year-over-year growth in revenue and profitability – Improved non-GAAP gross margins to 48% in Q4’16 from 42% in Q1’16 Continued progress with customer and revenue diversification – Four 10% customers in Q4’16 for the first time, including one hyper-scale cloud and content provider – Increased revenue from newer customers to 35% of revenue in Q4’16 from 14% of revenue in Q1’16 Executing to our Growth Strategy 10% 14% 26% 1 This is a “non-GAAP financial measure” as defined in Regulation G under the Securities Exchange Act of 1934, as amended,
and reconciliation of such non-GAAP financial measure to the
most directly comparable financial measure calculated and presented in accordance with U.S. GAAP is provided in the Appendix to this presentation. Descriptions of this non-GAAP financial measure can be found in the company’s earnings release with respect to its fourth quarter and full year 2016 results." If this presentation
will be handed out, need to add Appendix and GAAP to non-GAAP
reconciliation. 0
100 200 300 400 500 600 2014 2015 2016 Revenue Growth 81% CAGR 0 20 40 60 80 100 120 140 160 2014 2015 2016 Non-GAAP NET INCOME 1 193% CAGR |
 Copyright © 2017 – All Rights Reserved – Acacia Communications, Inc. I Connecting at the Speed of Light® 6 Increased Data and Video Consumption Growth in Mobile and 4GLTE/5G Communications Proliferation of Cloud Services Adoption of the “Internet of Things” Changing Traffic Patterns Traffic Demand is Growing for Traditional Carriers and Web 2.0 Content Providers Bandwidth and Network Capacity Source: Predicts 2016: PaaS Innovation Continues Unabated 10 December 2015 Source: Cisco VNI Global IP Traffic Forecast 2015-2020 |
 Copyright © 2017 – All Rights Reserved – Acacia Communications, Inc. I Connecting at the Speed of Light® 7 Key Market Segments 100G+ 1 1. Source: LightCounting 2. Source: Sept 2016 ACG Research 8% CAGR 9% CAGR 32% CAGR |
 Copyright © 2017 – All Rights Reserved – Acacia Communications, Inc. I Connecting at the Speed of Light® 8 + = > 1 billion transistors > 50 photonic functions Silicon PIC DSP ASIC BGA PIC Driver TIA Ball Grid Array (BGA) under development |
 Copyright © 2017 – All Rights Reserved – Acacia Communications, Inc. I Connecting at the Speed of Light® 9 Sky 100G Metro Denali 400G ULH/Metro Multi-core Mouna Kea 100G ULH K2 40G ULH Everest 100G LH Si PIC Rapid Pace of Innovation 2011 2012 2013 2014 2015 Strong and diverse portfolio of patents and intellectual property
2014 2016 Meru 200G Metro 2016 Optical Performance, Low Power, Rich Feature Set Pico 1.2T DCI/Metro/LH Multi-core BGA : Stepping stone towards DSP+PIC in single package |
 Copyright © 2017 – All Rights Reserved – Acacia Communications, Inc. I Connecting at the Speed of Light® 10 Family of products meet needs of network operators – Compact, low-power industry- standard interfaces – Integration in silicon Announced CFP2-ACO and industry’s first CFP2-DCO module Integrates easily into all classes of Communication Equipment High yield / lower cost manufacturing driven by CMOS process Silicon Coherent PIC Dual-core DSP 100G MSA 100G CFP-DCO 400G Module 200G CFP2-DCO 1st Metro 1st 1st First-to-Market Products Blending High Performance, Scale and Cost-Efficiency We believe we are the first to introduce to the market: Inter- Data Center Long Haul |
 Copyright © 2017 – All Rights Reserved – Acacia Communications, Inc. I Connecting at the Speed of Light® 11 Our Growth Strategy Increased Investment in all Networks – Focused on 100G and Higher Expansion Opportunity with Existing Customers Expand Customer Base – Driven by Network Equipment Transformation Grow into Adjacent Markets Continued Innovation |
 Copyright © 2017 – All Rights Reserved – Acacia Communications, Inc. I Connecting at the Speed of Light® 12 Expanding coherent applications Sub LH Metro Inter-DC 5G Provide low total cost of ownership Acacia: Technology innovation and vertical integration driving cost and power reductions DCO/ACO gaining share in coherent market Use of Acacia modules enables a faster time to market than use of individual components Acacia DCO: CFP CFP2 400G OIF Cloud and content providers looking to disaggregate Avoid being locked-in to single vendor Looking for best and lowest cost solutions Voyager platform within TIP is one example – “white box” solution based on AC400 Autonomous and secure networks Adding intelligence, performance metrics, encryption Increasing value by continued innovation Trends and Accomplishments Riding Moore’s Law Power/100G (W) ~40%/year reduction 2017 ¹ 2019 ¹ DCO ACO Non-Pluggable 1 Source: LightCounting |
 Copyright © 2017 – All Rights Reserved – Acacia Communications, Inc. I Connecting at the Speed of Light® 13 Expanding Coherent Markets Markets that may benefit from low power DSP and SiPh technology Units Long-Haul Metro Inter DC Intra DC 5G, Access New Markets A-CFP2 400G OIF DSP+PIC Tb plus CFP AC400 D-CFP2 Today Future Time Reducing Power, Size and Cost through Siliconization |
 Copyright © 2017 – All Rights Reserved – Acacia Communications, Inc. I Connecting at the Speed of Light® 14 New Generation Optical Interconnect Company Bringing together the best of semiconductor and optical Challenges Fractured supply base Many material choices Low margin and profitability Too many SKUs Strengths High growing markets Critical for global bandwidth expansion Challenges Lower ASP R&D investment Strengths Fast pace of innovation High barrier to entry High volume CMOS process High margin and profitability Semiconductor Optical |
 Copyright © 2017 – All Rights Reserved – Acacia Communications, Inc. I Connecting at the Speed of Light® 15 Disruptive Silicon Technologies Intel Microprocessor Broadcom Ethernet PHY Qualcomm Mobile Chipset Acacia Interconnect Chipset |
           Copyright © 2017 – All Rights Reserved – Acacia Communications, Inc. I Connecting at the Speed of Light® 16 Percent of Revenue (Non-GAAP Basis) Gross Profit Margin 36% 39% 47% 42% 47% 47% 48% 48% - 50% Research & Development 19% 16% 13% 18% 14% 11% 12% 17% - 19% Sales, General & Administrative 5% 5% 4% 5% 5% 4% 4% 6% - 8% Operating Margin 12% 18% 29% 19% 28% 32% 32% 23% - 27% Tax Rate (on Profit Before Tax) 16% 25% 11% 10% 11% 6% 16% 9% - 12% Net Income Margin 10% 14% 26% 17% 25% 30% 27% 21% - 25% 2014A (Audited) Q4 2016A Target Range Q1 2016A 2015A (Audited) Q2 2016A 2016A (Audited) Q3 2016A Long-Term Financial Goals These long-term financial goals are forward-looking, are subject to significant uncertainties and contingencies and are based
upon assumptions with respect to future decisions, which are subject to change. Actual results will vary and those variations may be material. For discussion of some of the important factors that could
cause these variations, please consult the “Risk Factors” section of the Form 10-K for the fiscal year ended December 31, 2016, that we have filed with the SEC. These long-term financial goals
include “non-GAAP financial measures” as defined in Regulation G under the Securities Exchange Act of 1934, as amended, and reconciliations of such historical non-GAAP financial measures to their most
directly comparable financial measures calculated and presented in
accordance with U.S. GAAP are provided in the Appendix to this
presentation. Acacia Communications has not reconciled the forward-looking non-GAAP measures included in these long-term financial goals because the expected tax benefits derived from any disqualifying dispositions of equity awards during the periods
included in these long-range goals cannot be reasonably calculated or predicted at this time and, accordingly, a reconciliation is not available without unreasonable effort. Descriptions of the
non-GAAP financial measures included in these long-term financial goals can be found in the company’s earnings release with respect to its fourth quarter and full year 2016 results.
|
 Appendix |
 Copyright © 2017 – All Rights Reserved – Acacia Communications, Inc. I Connecting at the Speed of Light® 18 Reconciliation of GAAP to Non-GAAP 2014 2015 2016 Non-GAAP Gross Profit;Non-GAAP Gross Profit Margin Gross profit $52,676 $93,706 $220,987 Stock-based compensation 17 75 1,629 Non-GAAP gross profit $52,693 $93,781 $222,616 Non-GAAP gross profit margin 36.0% 39.2% 46.5% Non-GAAP R&D Expenses GAAP research and development expenses $28,471 $38,645 $75,696 Stock-based compensation 258 561 12,347 Non-GAAP research and development expenses $28,213 $38,084 $63,349 Non-GAAP SG&A Expenses GAAP selling, general and administrative expenses $6,615 $13,124 $27,676 Stock-based compensation 132 189 6,769 Non-GAAP selling, general and administrative expenses $6,483 $12,935 $20,907 Non-GAAP Operating Expenses GAAP operating expenses $35,194 $51,769 $103,397 Stock-based compensation 390 750 19,116 Non-GAAP operating expenses $34,804 $51,019 $84,281 Non-GAAP Income from Operations (Loss) income from operations $17,482 $41,937 $117,590 Stock-based compensation 407 825 20,745 Non-GAAP income from operations $17,889 $42,762 $138,335 (in thousands) Year Ended December 31, |
 Copyright © 2017 – All Rights Reserved – Acacia Communications, Inc. I Connecting at the Speed of Light® 19 Reconciliation of GAAP to Non-GAAP 2014 2015 2016 Non-GAAP Net Income Net (loss) income $13,520 $40,520 $131,577 Stock-based compensation 407 825 20,745 Change in fair value of preferred stock warrant liability 483 2,154 3,361 Reversal of valuation allowance – (11,142) 0 Tax effect of excluded items – (47) (32,324) Non-GAAP net income $14,410 $32,310 $123,359 Non-GAAP Effective Tax Rate GAAP Effective Tax Rate 17.8% (1.8%) (14.8%) Total adjustments to GAAP provision for income taxes (0.9%) 26.3% 25.9% Non-GAAP effective tax rate 16.9% 24.5% 11.1% Year Ended December 31, (in thousands) |