22
1 january 2014 Investor Overview

MicroCapClub Invitational: Xplore Technologies (XPLR)

Embed Size (px)

DESCRIPTION

Xplore Technologies (XPLR) manufactures two forms of tablet computers: Ultra rugged, which has been their core business for many years, and rugged, which is a new growth driver that expands their previously addressable market by a factor of 10. Their legacy, ultra-rugged product has customers on record such as AT&T (T) and the US Military. This highly differentiated product is waterproof, can withstand a 7 foot drop, and can function in a temperature range of -40 to 167 degrees. One of the key reasons we became involved with the stock is their new rugged line of tablets, called Ranger X. In July of this past year, they unveiled the Ranger X, which the company just recently announced its first multi million dollar purchase order from a major U.S. telecom provider. We expect the Ranger X to be a major growth catalyst in 2014. Phil Sassower, Chairman and CEO, owns 33% of the company through his private equity vehicle, and has successfully led the company to the inflection point on which it stands today.

Citation preview

Page 1: MicroCapClub Invitational: Xplore Technologies (XPLR)

1

january 2014

Investor Overview

Page 2: MicroCapClub Invitational: Xplore Technologies (XPLR)

2

a global leader and innovator in rugged tablet PCs for

over fifteen years

developers of the

most rugged tablets in the market

Page 3: MicroCapClub Invitational: Xplore Technologies (XPLR)

3

This Presentation (the “Presentation”) has been prepared by Xplore Technologies Corp. (the "Company") solely for informational purposes. THIS PRESENTATION DOES NOT CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO BUY ANY SECURITY.

The information contained herein has been prepared to assist interested parties in making their own evaluation of the Company and its prospects and does not purport to contain all of the information that a prospective investor may desire. In allcases, interested parties should conduct their own investigation and analysis of the Company and the data set forth in this Presentation and further documents transmitted to the recipient in the course of its evaluation of the Company. The Companymakes no representation or warranty as to the accuracy or completeness of this Presentation, including any projections or statements about the prospects of the Company, and shall have no liability for any representations (expressed or implied) contained in, or for any omissions from, this Presentation or any other written or oral communications transmitted to the recipient in the course of its evaluation of the Company. Only those representations and warranties that are made by the Company in a definitive purchase agreement will have any legal effect.

NO PERSON HAS BEEN AUTHORIZED TO GIVE ANY INFORMATION OR TO MAKE ANY REPRESENTATION ON BEHALF OF THE COMPANY NOT CONTAINED IN THIS PRESENTATION. IF YOU RECEIVE ANY SUCH INFORMATION OR REPRESENTATION, YOU SHOULD NOT RELY UPON IT. IF YOU HAVE ANY QUESTIONS RELATING TO THIS PRESENTATION, YOU SHOULD DIRECT YOUR QUESTIONS TO THE COMPANY’S CHIEF EXECUTIVE OFFICER OR CHIEF FINANCIAL OFFICER.

This Presentation includes “forward-looking statements.” All statements made in this Presentation that are not of a historical nature are forward-looking statements. These forward-looking statements reflect the Company’s current expectations, estimates and predictions about future results and events. Such projections and statements are based upon assumptions about future events that are inherently uncertain and subjective. Although the Company believes that the expectations contained in these forward-looking statements are reasonable, it cannot give any assurance that these expectations will prove to be correct. Actual results may vary materially from those described in the forward-looking statements. The Company is under no duty to update any of the forward-looking statements after the date of this Presentation or to conform these statements to actual results. Nothing contained herein is intended to be, nor should be relied upon as, a promise or representation as to future performance of the Company.

Notice:

Page 4: MicroCapClub Invitational: Xplore Technologies (XPLR)

4

company profile

d

dHeadquarters

Austin TX dNASDAQ Since 2012

XPLR

Xplore: Manufacturer of the Most Rugged Tablets in the Market

Page 5: MicroCapClub Invitational: Xplore Technologies (XPLR)

5

a pioneer in rugged

tablet technology

Developers of the first and best sunlight viewable display

First to Market Most Powerful Desktop Processor in Tablet

First Telco / Cable specific tablet (HDMI-In/RJ-45)

First with automatic touch and pen input

Page 6: MicroCapClub Invitational: Xplore Technologies (XPLR)

6

Oil Field Pipeline Inspectors

Field Install & Repair Techs

First Responders / EMS

Military & Special Ops Personnel

Warehouse Inventory Managers

Forklift Drivers

Pharmaceutical Scientists

Medical Personnel

span multiple marketsxplore’s rugged tablet users

Page 7: MicroCapClub Invitational: Xplore Technologies (XPLR)

7

VDC Market Estimates for CY 2013Note: Highlighted vendors have either exited the market or significantly reduced presence this calendar year

Xplore’s products have historically served the “Ultra Rugged” space. The product line expansion will more than triple Xplore’s addressable market.Key:

Reve

nue

in M

illio

ns

Providers In The Rugged Tablet Market

Page 8: MicroCapClub Invitational: Xplore Technologies (XPLR)

8

Market Growth: Fully Rugged Tablet by Deployment Environment

(VDC Estimates)

Key Take-Away:Xplore Traditionally Plays in the Ultra-Rugged Niche of the Rugged Space – Approx 30% of Total Opportunity.

By delivering fully rugged tablets (IP65), lighter weight & lower cost tablets, Xplore will expand it’s addressable market to the entire rugged tablet market opportunity.

Markets enabled and expanded by new product lines

Reve

nue

in M

illio

ns

Page 9: MicroCapClub Invitational: Xplore Technologies (XPLR)

9

Xplore: Most Rugged Tabletsin the market

iX140C5 Series:WaterproofShockproofReadable in Direct SunlightAlways ConnectedExtreme Temperatures Ranges

RangerX SeriesMost Powerful Rugged Android Tablet in the Market

Fastest ProcessorMost Storage capacity Best drop rating

Water and Dust Resistant

Brilliant sunlight readable display

Only tablet with HDMI-In & Gigabit Ethernet – perfect for Telco & CableGoogle Certified

Page 10: MicroCapClub Invitational: Xplore Technologies (XPLR)

10

differentiation is in our DNA

The Most Rugged Tablets in the Market– Tested by Tougher Methods

Only Tablet With Onsite Repair And Upgrade Capability

Long Life Cycle Generates Greater Savings

Award-Winning Sunlight Viewable Displays

Outstanding Performance & Data Protection

Safely Operates in Explosion Prone Environments

Ability to Customize Configurations for Large Opportunities

Unique Configurations for Telco / Cable (RangerX)

Page 11: MicroCapClub Invitational: Xplore Technologies (XPLR)

11

Xplore A-List End Usersin multiple verticals

Field Service / Utilities Military Public Safety /

GovernmentPharmaceutical /

MedicalHydro One Inc.

Dycom Industries Inc.

Texas-New Mexico Power Co.

Arkansas Utility Protection Services

Raytheon

U.S. Army

U.S. Navy

U.S. Air Force

SAAB Training Systems

Wyoming Department of Health: EMS

Detroit Police Department

Helsinki City Rescue Department

Abu Dhabi Police

Merck

Procter & Gamble

CVS Pharmacy

Energy / Oil & Gas Manufacturing / Distribution Transportation

PennWest Energy

Kizer Energy

E.ON Climate and Renewables North America

Scottish Power

Daimler

Mercedes Benz

Sealed Air

Canadian Tire

Clare Rose

Nissan

FedEx Corporation

Airports Argentina 2000

BNSF Railway Company

Air Berlin PLC & Co.

Page 12: MicroCapClub Invitational: Xplore Technologies (XPLR)

12

strength in relationshipsXplore:

Strategic Development Alliances

Experienced, Well-Known Resellers

Intel

Microsoft

Wistron

VT Miltope

Hewlett-Packard

GroupMobile

ProSys

Coppernic

Page 13: MicroCapClub Invitational: Xplore Technologies (XPLR)

13

Launched a new fully rugged Android Tablet – the RangerX – and secured first major order of approximately $4 million from a Major U.S. telecommunications provider

Continued expansion of $17M+ relationship with Major U.S. telecommunications provider for iX104C5 DMSR

Multiple millions of dollars in US Military orders for iX104C5 DMSR – M1, recently won first major program award

Multiple millions of dollars in orders from Medical Equipment Manufacturer in an OEM relationship

recent successand announcements

Launch of the iX104C5 DMSR LTE and DMSR – M2

Ranked #3 in the 2013 ABI Research Media Tablet Market Analysis behind Samsung and Apple - Xplore was the only Rugged Tablet Manufacturer included in the rankings!

Named Official Tablet of 2013 Reebok Spartan World Championships

Page 14: MicroCapClub Invitational: Xplore Technologies (XPLR)

14

new market opportunityparadigm shift:

We Believe Xplore Is Best Positioned To Exploit This

Disruptive Opportunity

Xplore

Commercial Tablets

Traditional Segmentation Lines are Blurring…

Tablet Sales Are At An All Time High, With Expectations For Continued Growth

Non-rugged commercial tablets being used in the corporate space are experiencing high failure rates as well as IT management issues

Rugged Tablets Are Fastest Growing Form Factor – VDC

Fulfilling enterprise needs through experience and expertise. Rugged tablets finding new markets as rugged needs emerge in new market segments

The Two Markets Meeting Create A New, Enormous Segment With Rugged Needs

To $6.9B in the Total Rugged Mobility

Mkt*

From $0.5B in the Ultra Rugged Mkt*

13x

*Data from 2012 VDC Research

Page 15: MicroCapClub Invitational: Xplore Technologies (XPLR)

15

Market ObjectivesXplore Technologies

Leverage Leadership Position in Ultra Rugged Space

Take Advantage of Converging Tablet Space with Android & Windows Offerings

Expand Reach With Lower Weight / Lower Cost Fully Rugged Products

Page 16: MicroCapClub Invitational: Xplore Technologies (XPLR)

16

growth historical

Year over Year Revenue Comparison

**Fiscal year ends March 31st

$0

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

$30,000,000

$35,000,000

FY11 FY12 FY13

$17.6

$27.5$30.5

$5

$10

$15

$20

$25

$30

$35

Reve

nue

in M

illio

ns

Page 17: MicroCapClub Invitational: Xplore Technologies (XPLR)

17

Large revenue growth and first year of profitability

Generated approximately $3 Million of cash from operations

Gross profit of approximately 34%, an improvement of 13%

Completed Recapitalization wherebyRaised $10 Million by public sale of common stockConverted all preferred stock to common stockUp-listed to Nasdaq exchange

financial highlightsof FY2013

Page 18: MicroCapClub Invitational: Xplore Technologies (XPLR)

18

Solid Existing Business LineMost Rugged Tablet in the MarketExploding Market with High Growth PotentialPioneer & Leader In Rugged Tablet ComputingReplicable, Scalable ODM Model with Key Strategic Alliances with Industry LeadersProven Ability to Sell and Support Fortune 100 companies

Development of New Products for Convergence of Consumer/Commercial Tablet with Growing Rugged Mobile Market

Xplore believes it is best positioned to exploit the larger market opportunity

Phoenix Venture Fund and affiliates have invested $25 million

strengthsXplore Technologies

Page 19: MicroCapClub Invitational: Xplore Technologies (XPLR)

19

Global Provider of Rugged TabletsIn a Market with Exploding Growth PotentialWith Opportunity to Triple its Addressable Market With New Products Being Launched During Calendar 2014Debt FreePositive Working Capital (Current Ratio 4.2:1)$7.6 million in Cash$86 million Net Operating Tax Loss Carry Forward Market Capitalization of $52 million on January 1, 2014Phoenix Venture Fund and Affiliates Ownership of 37% at an Average Cost of approximately $7.50/Share

investorconsiderations

Financial Data as of September 30, 2013

Page 20: MicroCapClub Invitational: Xplore Technologies (XPLR)

20

key executivesleading the Xplore growth

Bates Manufacturing Company, Inc. | Newpark Resources, Inc. | Cabletron Systems Communication Intelligence Corp. | Wavestat Wireless Inc. | Texas Instruments

Digital Equipment Corp. Acxiom | Dell | TippingPoint Technologies, Inc. Sirific Wireless | Acer Advanced Labs, Inc.

The Executive Team

With experience in managing various large and small high tech firms, the Xplore teamis well equipped to lead the company to success and continued growth. Their provenmanagement capabilities in larger tech firms enables Xplore to transform into a largerrugged tablet market provider.

Philip S. SassowerChairman & CEO

Mark HolleranPresident & COO

Michael J. RapisandCFO & Corporate Secretary

Bryan J. BellVP of Engineering

Randy W. DennyVP of N. American Sales

Michael W. ZimmermanVP of Operations

Page 21: MicroCapClub Invitational: Xplore Technologies (XPLR)

21

Page 22: MicroCapClub Invitational: Xplore Technologies (XPLR)

22