AFOP IR Presentation May 2011-Ff

8/3/2019 AFOP IR Presentation May 2011-Ff

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Alliance Fiber Optic Products, Inc .

icker: AFOP



Safe Harbor Under the Private SecuritiesLitigation Act of 1995

Except for historical information, the matters discussed in this presentationcontain forward-looking statements regarding future trends or events,includin but not limited to the develo ment of our technolo the

efficiency of our manufacturing capabilities, the development of ourmanufacturing capabilities, the development of our facilities in the Far East,estimates of our revenues, the development of new products, and our

, .aware that these statements are only predictions and that actual events orresults may differ materially.

The Com an is re uired to file documents from time to time with the Securities and Exchange Commission. These documents identify importantfactors that could cause actual results to differ materially from thosecontained in our projections or forward-looking statements. Please refer tothe Com an ’s ros ectus and other interim re orts as filed with the

Securities and Exchange Commission for a discussion of those risk factors.The Company assumes no obligation to update the information in thispresentation.

©2011 AFOP. All rights reserved. 2



Unique Investment Story

Profitable and expanding business1

Strong financial position2

Broad product line manufacturer4

Innovative technology; extensive patent portfolio5

Cost effective Asian operations from inception6




Company BackgroundCompany Background

Histor AsiaStock Corporate

NASDAQSunnyvale,California

275

u-ChengTaiwan

FoundedIn 1995

Acquired F.O.

Gibraltar Dr.,

China

Hong Hai/Foxconn

ManagementBandwidth

IndustryExpertise

FinancialStrength

World ClassFactories




Optics Revolution

Fiber to Home /Consumer Fiber

M

ar

M

ar e t s e t s

Access

MetroAccess

MetroCore

Long HaulCore

©2011 AFOP. All rights reserved. 5TimeTime



Multiple Bandw idth Drivers

Cloud Com utin

ROADMROADM

AFOP CCWDM

AFOP FAU, Micro- optics & Connectivity

AFOP Connectivity

Office Parks

3G/4G CellularBackhaul and CATVMetro Core and Long Haul ROADM

Upgrades 40G to 100G

AFOP

Small Businesses

Residential

Copper

FTTP Full Build Small Businesses

FTTP Overlay ONT

ONT

ONT

ONT

ONTAFOP

AFOP Connectivity

AFOP Passives

Connectivity

CircuitSwitch

CopperFeeder

Splitter

Splitter

Splitter

ONT

ONT

ONT

ONT

ONT

ONT

Split

terHub

ONT

VWDM AFOP

Passives AFOP

Splitters

AFOP


Connectivity

OLT

eo

Connectivity * Courtesy ofVerizon

Enterprise 10G to 40/100G Ethernet FTTH NGPON



AFOP’s M ission

components, modules and subsystems

that empower dynamic optic networks

and facilitate the mi ration of fiber o tics

from the long haul through to the last mile




AFOP’s Strategy

I. Stron Multi-Platform Product Portfolio

Increasing Spend Capture

II. Innovative Constructive Technolo iesMarket Control

III. Inte ration for Revenue Devices for Profits Vertical Leverage for Increasing Returns

. Long Term Competitiveness




Connectivity Product Lines

Basic Building Blocks




Optical Passives Product Lines

Broad and Advanced Product Offering




Integrated Photonic Solutions

ODM solutions with

integrated multi-functionality

Embedded AFOP

devices: Passives &

Custom packaging

flexibilit




Innovative Technology

Innovative and patented solutions for40/100G Ethernet

FOC approved FTTXconnectivity products

Submicron precision FAU for ROADMs

Advanced packagingtechnology for dynamic




Manufacturing Excellence

ModularOperations

DFM forAll Products

Highest

Global Logistics

Asia Operations

Vertical Integration

Drives Competitive

From Inception Cost @ Volume

©2011 AFOP. All rights reserved. 13Key Performance Drivers



Multiple Markets ServedMultiple Markets Served

MetroAccess

FTTH FTTN

roa an FTTC

Long Haul

Premise WiringEnterprise




Expanding Customer Base




Financial Highlights

Stable revenues stream from business

Continuous profitability for years

Leading operating performanceStrong balance sheet




Quarterly Revenues

$14.0

$12.1

$13.3

$10.0

$12.0

$8.7$9.2 $9.2 $9.4

$10.3$10.8

8.2 $8.4

11.6

$9.4

)

$6.0

$8.0$6.7

$7.6 $7.7$7.0

$7.5

i n m i l l i o n

$2.0

$4.0

$-

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2


* Please refer to SEC filing for the exact numbers.



Quarterly Operating Performance

Revenues

03/31/10

$8.406

06/30/10

$12.086

09/30/10

$13.276

12/31/10

$11.638

03/31/11

$9.450

Gross Margin 32.1% 33.5% 35.5% 35.0%

0.757

32.1%

0.718

Sales, G & A $1.494 $1.607 $1.621 $1.495 $1.578

Operating Margin 5.9% 13% 16.6%

Operating Profits 0.492 1.575 2.210

15.7% 7.8%

.

EBITDA

EPS

$0.770

$0.08

$1.889

$0.19

$2.596

$0.24

$2.237

$0.20

$1.184

$0.12


* Pro Forma Results: $ in millions

* Please refer to SEC filing for the exact numbers



Annual Revenues

$45

$40

$27

$34

$39

$30

m i l l i o n s )

$20

$30

$15

$21

( i n

$‐

$10

YR2004 YR2005 YR2006 YR2007 YR2008 YR2009 YR2010


* Please refer to SEC filing for the exact numbers.* Please refer to SEC filing for the exact numbers.



Annual Operating Performance

Revenues

2006

$26.8

2007

$33.8

2008

$38.8

2009

$29.8

2010

$45.4

Gross Margin

R & D

27.7%

$3.0

31.5%

$3.2

31.4%

$3.2

31.3%

$3.0

34.2%

$3.2

Sales, G & A $5.2 $5.6 $5.8 $5.6 $6.2

0.751 $6.099

Operating Margin (3.7%) 4.8% 7.6% 2.5% 13.4%

.

EBITDA

EPS

$0.873

$0.08

$3.288

$0.41

$4.366

$0.49

$1.903

$0.17

$7.492

$0.70






Balance Sheet Summary

Cash & Investments

12/31/07

36.5

12/31/08 12/31/09

42.3

12/31/10

45.4

03/31/11

Long-Term Liability $1.0 $0.9 $0.8 $0.8 $0.8

Stockholders Equity $42.9 $48.0 $48.9 $58.0 $59.4

Inventory Turnover

ays

5.0x

ays

4.0x

ays

4.1x

ra ng uar er

4.1x

ays

3.2x






Most Trustworthy Companies Award

y or es 3yr AGR® Score3yr AGR® Score




Investment Highlights

Profitable and expanding business1

Strong financial position2

3

Broad product line manufacturer4

Innovative technology; extensive patent portfolio5

Cost effective Asian operations from inception6


AFOP IR Presentation May 2011-Ff

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