Providing Customer …and Shareholder Value · Providing Customer …and Shareholder Value....
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Rudolph Technologies August 2018 Providing Customer …and Shareholder Value
Transcript of Providing Customer …and Shareholder Value · Providing Customer …and Shareholder Value....
Rudolph Technologies
August 2018
Providing Customer …and Shareholder Value
Building a Business for Sustainable GrowthIncreasing the pace of innovation while driving operational efficiencies
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Revenue(TTM*)
$278 million
+14% YoY
CompanyNYSE
RTEC
Cash Balance(June 2018)
$183 million
+23% YoY
Employees(Worldwide)
~600
Operating Income(TTM*)
$67 million
+34% YoY
On pace for FOURTH consecutive year of record revenue!
* Trailing Twelve Months, as of June 30, 2018Operating Income: non-GAAP
Providing Process Solutions
for High Value Problems
in High Growth Markets
Rudolph Technologies Corporate Strategy
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Rudolph Value to Customers is IncreasingTransforming from Tool Sales Into Solutions: Accelerating Growth
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SPECIFICATIONS
AI MeasureResolve High Value
Problem
Analyze
SOLUTION SALE
MEET SPECIFICATION
Software + Experience
TOOL SALE
Improve Yield!
Software integrated with Rudolph Tools
Optimizing FactoriesIntegrated with OEM
Process Solutions for High Value Problems
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PRODUCT RELIABILITY
Eliminate non-visual defects
HETEROGENEOUS CHIP INTEGRATION
Enable chip-to-chip connections (RDL)
WAFER/PANEL FAN-OUT PACKAGING
Optimize throughput for offset die positions
HIGH DENSITY PILLAR BUMPS
Ensure reliable interconnects
ADVANCED MEMORY
Plating and etch control, TSV, and micro bump metrology
RF, MEMS, 3D IMAGING
Piezo, mass load control, active pixel and precise wavelength control
Precise Data from Tools
Real Time Control
Artificial Intelligence
Solution!
What We DoRudolph’s Core Businesses
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#1#1 #1 New
Inspection
Firefly™ System
Dragonfly™ System
AWX™ Series
NSX® Series
All surface inspection
Unpatterned wafer inspection
Combined inspection and metrology
Metrology
MetaPULSE® Systems
S3000™ Series
Metal films
Under bump metallization
Redistribution layers
LithographyJetStep® System
Wafers and panels (Gen 3.5)
StepFAST Optimized T-put
JetStep G for HD Displays
SoftwareDiscover® Software
Equipment Sentinel™
Software
Yield Management
Auto Defect Classification
Fault Detection
Advanced Process Control
Rudolph’s Diversified High Growth DriversSustainable growth from multiple end markets, all sharing:
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Sensing
Advanced Packaging
Communications
Server Cloud
AutomotiveMobility
Multiplier from the >20B IoT Devices predicted by 2020… Source: Gartner, 2017
Internet of Things
Rudolph’s Balanced Market PositionDiverse targeted markets with high growth
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28%
ADV. PKG.FE MEMORYRF MEMS CISFOUNDRYOTHER
9%
11%
11%
25%
39%
11%
19%
44%
0% 10% 20% 30% 40% 50%
2017-2022 UNIT CAGR%
All SEMI
3D / 2.5D
RF FILTERS
MEMS
FOUNDRY
FAN-OUT
All AP
Source: Gartner, Tech Search
MEMORY
25%
12%
19%16%
2017 Revenue by Market
Str
ate
gic
Ma
rke
tsC
ore
Ma
rke
ts
Strategic Market PositionsRudolph process control solutions are integral to top manufacturers
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Source: 1Gartner 2017 Market Share; 2IHS 2017; Company data shown in rank order
Installed at 5 of 6 Top Producers
Installed at 5 of 6 Top Producers Installed at 6 of 6 Top Producers
• Samsung Electronics• SK Hynix• Micron• Toshiba• Western Digital• Intel
• Skyworks Solutions• Qorvo• Qualcomm• Broadcom• Murata• Media Tek
• Bosch• TI• ST Micro• Knowles• NXP• Infineon
Memory1
RF Wireless1
Installed at 6 of 6 Top Producers
• TSMC• Samsung Electronics• ASE• JCET• Intel• PTI
Advanced Packaging2
MEMS2
Digital Revolution Cycle of Growth
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RF Filters MEMSHPC
(high power computing)
Adv. Memory
TomorrowMultiple Growth Drivers
Healthcare
Autonomous Car
Virtual Reality
AI
AdvancedPackaging
Mobility &Connected Devices Cloud
“Today”
355 TB every second!(nearly double the estimate last year)
Source: Cisco Global Cloud Index, Feb 2018
Sustainable ResultsOn pace for a fourth consecutive record year!
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$100
$120
$140
$160
$180
$200
$220
$240
$260
$280
$300
2012 2013 2014 2015 2016 2017 2018*
RUDOLPH REVENUE
13%
Rudolph CAGR 2014-2018*
* Analysts’ Consensus for FY 2018
*
More Improvements Ahead!
$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
2013 2014 2015 2016 2017 2018*
OPERATING INCOME(NON GAAP)
34%
with 13% Revenue CAGR2014 –2018*
*
Free Cash Flow/Capital Allocation Priorities
How we deploy our strong cash generation
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$(20.0)
$(10.0)
$-
$10.0
$20.0
$30.0
$40.0
$50.0
$60.0
$70.0
Free Cash Flow
Cash from Ops CAPEXFCF
Capital Priorities
Fund organic growth initiatives
Strategic M&A
Return to shareholders
~10% of shares
repurchased through buy backs
Long-Term Operating Financial Model
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$250MMODEL
$300MMODEL
$350MMODEL
$400MMODEL
Gross Margin 53% 54% 55% 55%
Model excludes the impact of OLED Initiative which is expected to be accretive to operating margins.
22%25%
28% 30%
Existing Operations
Operating Margin
Source: Management estimates based on a Non-GAAP model
2020 Growth Potential: High Resolution Displays Rudolph developing a lithography solution for TFT backplanes*
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Backplane required to control pixels for any display
Emitted light from display:AMOLED
Quantum DotMicroLED
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
Key Takeaways
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Value Solutions Combine Hardware and Software
Products to Solve Leading Edge Challenges
Market Growth Drivers Remain Healthy in 2018
Market Growth Drivers Remain Healthy in 2018
Strong Financial Model
Profitable growth, fueling R&D & Cash for strategic M&A
Display market potential to be transformative for RTEC
