Today’s AgendaToday’s Agenda
Coreco at a glance Performance review Industry update Strategy for growth Outlook for 1999 and
beyond
Coreco at a glance Performance review Industry update Strategy for growth Outlook for 1999 and
beyond
Coreco at a GlanceCoreco at a Glance
Company ProfileCompany Profile
Coreco designs, develops manufactures and markets hardware and software for the computer vision industry.
Coreco designs, develops manufactures and markets hardware and software for the computer vision industry.
Medical ImagingMedical Imaging
Principal Market SegmentsPrincipal Market Segments
Principal Market SegmentsPrincipal Market Segments
Industrial InspectionIndustrial Inspection
Machine VisionMachine Vision
Principal Market SegmentsPrincipal Market Segments
Sales by ApplicationSales by Application
Machine vision (21%)
Medical imaging (36%)
Industrial inspection (26%)
Distributors (10%)
Multimedia and surveillance (7%)
Customer BaseCustomer Base
System Integrators (15%)
OEMs (85%)
Sales by Geographic AreaSales by Geographic Area
F1998
Asia-Pacific (9%)
Q1-99
USA (69%)
Europe (16%)
Canada (6%)
Asia-Pacific (14%)
USA (59%)
Europe (20%)
Canada (7%)
Computer Vision Industry:An Update
Computer Vision Industry:An Update
Asian economies are improvingAsian economies are improving Currencies have recovered Japan records 1.9% GDP growth
Book-to-bill ratio 1.3
Currencies have recovered Japan records 1.9% GDP growth
Book-to-bill ratio 1.3
Semiconductor industry is on the reboundSemiconductor industry is on the rebound
Industry ContextIndustry Context
Camera Technology– High-speed/resolution digital cameras– Performance driven applications– e.g. Python, Cobra, Viper, Fast OCR
PC Technology– Pentium-based software– Cost sensitive applications– e.g. Bandit, WiT
Camera Technology– High-speed/resolution digital cameras– Performance driven applications– e.g. Python, Cobra, Viper, Fast OCR
PC Technology– Pentium-based software– Cost sensitive applications– e.g. Bandit, WiT
Market driversMarket drivers
Industry ContextIndustry Context
Coreco in the Computer Vision Market
Coreco in the Computer Vision Market
Coreco is positioned to enternew applications and newmarkets for our high-end
vision products.
Coreco is positioned to enternew applications and newmarkets for our high-end
vision products.
Strategy for High-End GrowthStrategy for High-End Growth
Vision Platforms
Image Boards
Turnkey Systems
Coreco: Moving Up the Food Chain
Coreco: Moving Up the Food Chain
$200 MillionMarket sizeMarket size
$800 Million $2.9 Billion
Total $3.9 BillionTotal $3.9 Billion
Four-point StrategyFour-point Strategy
Continue to invest aggressively in R&D Acquire complementary technologies
and businesses Provide integrated vision solutions to
our clients Target new markets and applications
for our products
Continue to invest aggressively in R&D Acquire complementary technologies
and businesses Provide integrated vision solutions to
our clients Target new markets and applications
for our products
Continue to Invest Aggressively in R&DContinue to Invest Aggressively in R&D
94 95 96 97 98
Viper, WiT and Ice-Storm
Coreco hardware and FAST application software
0.90.91.21.2 1.31.3
1.81.8
2.52.5R&D Expenditures(in millions $)R&D Expenditures(in millions $) New products in 1998New products in 1998
Development of integrated vision solutionsDevelopment of integrated vision solutions
New ProductsNew Products
ViperViper
FAST OCR/FAST Match
FAST OCR/FAST Match
Ice StormIce Storm
SaperaSapera
Python Compact PCI
Python Compact PCI
Acquire Complementary Technologies and BusinessesAcquire Complementary Technologies and Businesses
Logical Vision (1997)*Visual programming software*Acquired machine vision expertise
Logical Vision (1997)*Visual programming software*Acquired machine vision expertise
Dipix (1999)*Imaging board business*Acquired market share and engineering resources* Added $4.0 million in revenues
Dipix (1999)*Imaging board business*Acquired market share and engineering resources* Added $4.0 million in revenues
Provide Vision Solutions for OEM’sProvide Vision Solutions for OEM’s
New hardware productsNew hardware products
FAST application softwareFAST application software
Vision Platformsfor OEM’s
Vision Platformsfor OEM’s
plus
equals
Target New Markets and Applications for our ProductsTarget New Markets and Applications for our Products
FAST application software Plasma and LCD panel inspection Embedded product for medical
imaging applications Europe: Sales up by 10% in F1998 Asia: Sales more than doubled in
Q1,99
FAST application software Plasma and LCD panel inspection Embedded product for medical
imaging applications Europe: Sales up by 10% in F1998 Asia: Sales more than doubled in
Q1,99
Outlook for 1999and Beyond
Outlook for 1999and Beyond
OutlookOutlook
Complete integration of Dipix
– Manufacturing moved to Montreal
– Merge sales channels– Dipix contribution: target 20% of
total revenues
Complete integration of Dipix
– Manufacturing moved to Montreal
– Merge sales channels– Dipix contribution: target 20% of
total revenues
OutlookOutlook
Develop value-added, integrated vision solutions
Focus on medical and machine vision Continue to develop Asian market Seek acquisition of complementary
companies/technologies Ramp up revenues and earnings
Develop value-added, integrated vision solutions
Focus on medical and machine vision Continue to develop Asian market Seek acquisition of complementary
companies/technologies Ramp up revenues and earnings