xcerra analyst day presentation october 7, 2014

Xcerra Analyst Day Presentation

October 7, 2014

Formation of Xcerra Corporation

� LTX-Credence is a leading supplier of SOC semiconductor test systems

� LTX-Credence acquired Multitest and ECT from Dover Corporation in December, 2013 and renamed the new company Xcerra Corporation

� Xcerra is now the parent of four leading brands supplying innovative products and services to the semiconductor and electronics manufacturing industries

� Leveraging technology and expertise across the

Bare Board PCB Test Solutions

Electronic Interconnects

8 October 2014

� Leveraging technology and expertise across the Company, Xcerra is capable of supplying complete test cell solutions to the semiconductor test industry

� Committed to, and delivered, $15M in synergy savings

� Financial performance at target business model two quarters ahead of plan

� FY14 revenue of $331M and EBITDA of $21M (1)

� FQ4 ‘14 revenue of $124M and EBITDA of $18MSemiconductor

TestTest Handlers /

Interface Products

2014 TAM of ~$5.1B*2014 TAM of ~$5.1B*

* Management estimates

1 Includes 8 months of contribution from acquired businesses.

2measured by your success

Load Boards

Load Boards

Contactors

Handler

Xcerra Serves a Broad Portion of the Electronics Supply Chain

Semiconductor ATE

Handlers PCB ATE & PCBA Fixtures

Interface Products

Wafer Fab Wafer Test

Semiconductor ATE

Die Cut & SortPackage

AssemblyPackage Test

Semiconductor ATE

PCB FabBare Board

Test PCB AssemblyIn-circuit &

functional test

PCB ATE PCBA Fixtures

Final ProductComplete

Image of semiconductor wafer courtesy of Taiwan Semiconductor Manufacturing Co., Ltd

Acquisitions more than doubled the total available market from $2.3B1 to $5.1B2 CY2014E2 Management estimates 1 SOC market size source: Prime Research

8 October 2014 3measured by your success

$200 $220

$1,000

$1,200

$1,400

$589 $330

$350

$3,000

$3,500

$4,000

$4,500

2014: Strong Semiconductor Test Market Drives Growth

2014E: Total Market Opportunity: $5.1B* (13% Growth)

2013 (A): Total Market Opportunity: $4.5B*

Semiconductor Test Solutions Electronics Manufacturing Solutions

Total Change 16% Total Change 2%($ in millions) ($ in millions)

$3,291

$3,815 $1,250 $1,280

$650 $660

$400 $400

$-

$200

$400

$600

$800

2013 2014E

Pogo Pins PCBA Fixtures PCB Testers

$1,900 $2,300

$509

$576 $552

$-

$500

$1,000

$1,500

$2,000

$2,500

$3,000

2013 2014E

Testers Handlers Contactors Interface Boards

Sources: Prime Research, VLSI Research, Xcerra Management estimates

0%

* Management estimates


Analyst Day Agenda

– Tester Group Market Overview and Strategy

– Interface Products Group Overview and Strategy

– Handler Group Overview and Strategy

– Test Cell Innovation Overview and Strategy– Test Cell Innovation Overview and Strategy

– Translating Product Strategies Into Market Share Gains

– Bottom Line: Financial Performance


Market and Product Strategy

LTX-Credence Test Systems

Steve Wigley, Vice President, Tester Group

Changing Test Industry Focus

Years 1995-2005 2005-2015 2015+ 2015++

MarketDriver

Corporate ITWired

Infrastructure

Consumer PCInitially

Smart Phone Laterally

Low cost Smart Phones &

TabletsPersonalizedConnectivity

Context Aware and smart world

IoT

ATE Flexibility in the ATE Market Drivers

Performance Driven

Cost FocusedBIST

Productivity Efficiency

Flexibility in the Factory

Smart Test Cell

ATE Focus

Improved EPAHigher

Performance Instruments

ConsolidationCost Down

Lower cost of ownershipMulti-site Capability

Overall Test Cell Efficiency

Data driven yield management

Ubiquitous RF

Integrated development

Rapidcustomization

Distributed Test


End Applications Driving Growth

Sources: Business Insider [Gartner, IDC, Strategy Analytics, Machina Research, company filings, BII estimates]

Source: ST, IHS

IoT Market Segmentation


– Integration with sensing technologies will grow

– Industry will continue to integrate multiple functions into a device but how much and when will be driven by the packaging technology

Impact On Our Device Markets

much and when will be driven by the packaging technology

– Continued growth RF content


Impact On LTXC Device Markets

PersonalConnectivity

Transportation Smart WorldPersonal

Communication

HealthcareEntertainment

Driver AugmentationEfficiency

SafetyConnectivity

IoTNetworks

Context Aware

Smart PhonesTablets

Growth Markets

MCU

Sensors

MCU

SensorsRF PA & FEM

MCU Power & Analog

RF PAMCU

RF PA & FEM

RF PA & FEM SensorMCUASSP Power & Analog

MCU

Low PowerRF PA

Power & Analog

MCUMCU Power & Analog

Power & Analog

MCU

ASSP

EmbeddedProcessor

Logic RF Analog Power Sensor

e.g. SiP, WLCSP, 2.5D & 3D Packaging

Test solutions also require to address new manufacturing challenges driven by packaging technology


LTXC Products and Roadmap Strategy

LTXC Products Focus On Five Key Market Segments

ASL Series

Diamond Series

The standard for production test of wireless, mobility, consumer ASSPs and microcontrollers

Optimized for low pin count, cost-sensitive power management and linear

X-Series

Designed for optimal testing of power, automotive, mixed-signal and RF


Innovation Drives LTXC Roadmap Strategy

Best in Class ATE

-Expand the reach of Diamondx to includenew capability for A-ASSP and integrated sensing technologies - Extend leadership in RF technology through development of

- 4G/5G RF PA/FEM solutions- Connectivity solutions- Automotive Radar solutions- Automotive Radar solutions

- Focused Development on ASL and X-Series

Develop Test Cell solutions

- Phased integration of ATE, Handler/Prober, Interface contactor technology and software

Technology roadmap

- Focus on 3 key technologies and/or innovations

Standards

FPGA Roadmap

New, innovative Instrument architectures


LTXC Roadmap Strategy: Innovation Leads to Share Gains

LTXCTechnology

Roadmap

Technology development

ATE Product development Best in Class

ATE Current ATE Enhanced ATE

Integrated Test Cell

ATE Test Cell development Test Cells

Connected Test Cell

ATE Current ATE Platforms

Enhanced ATE Platforms


Positive Impact of Roadmap Strategy On Our Business

– Will continue to strengthen our position in our standard device markets• Deliver new Diamondx options to expand into A-ASSP

• Improve position of unique PAx ATE with PAx-ac developments

• Leverage our production test expertise in Automotive Radar � Integrated test cell as our 2nd generation solution

– Address new markets driven by packaging technology

•• Expand reach of Diamondx

� Use 3D Instrumentation to address integration of sensing technologies

• Extend leadership in RF technology• Low cost RF solutions

• Tighter test cell integration � Merging of testing, handling, interfacing and contacting technologies


Interface Products Group

Timothy McNulty, Vice President, Interface Products Group

IPG Semiconductor Products

Cantilever Test ContactorsThe standard in Hi-Power Long -Life Automotive

Probe Test ContactorsBroad market acceptance in High Fidelity , Wafer Level, High Pin Count and Low-cost Segments

Gemini Mercury

The standard in Hi-Power Long -Life Automotive Applications

Load Board World Class PCB Fabrication coupled with Global Design Engineering and Complete Assembly Integration

ecoAmpDURA Kelvin nanoKelvin


IPG- Semiconductor Test Consumable Market Trends

Gains driven by increased IC volumes and IO counts, not hurt by increases in test parallelism

Gains driven by increased test complexity at wafer test, and mobility packaging

2013 VLSI Test consumables Forecasts

Flat: price deflation (commoditization), and demand driven by increased parallelism


Interface Products Target Growth Markets

Mobility Market Packing Shrink and

Signal Integrity Demands

Power Applicationsfor the Automotive

Market

High-Fidelity Contacts for Wireless Mobility

and Automotive Radar ApplicationsDemands

• WLCSPContinue to develop smaller geometries

• HED Life and yield performance for lowest COT

• Micro-pitch PBC for wafer probing and WLSCP markets

Applications

• Extending leading market-share position with improved spring life and product delivery for the cantilever product line

• High-density Kelvin

• Contacting solution for automotive radar

• Low inductance probe architecture

• Market-leading contact-resistance performance for the analog / mixed signal


Contact Products Within IPG Expand Beyond Test

– Contact products serve a wide variety of electronic markets

– Probe manufacturing and assembly automation are core competencies

– Global distribution channels

– We participate in four primary markets:

Semiconductor Test Probes

Integrated OEM Products Industrial

PCBA Test Probes

Providing semi probes internally for IPG contactors and directly to customers that integrate internally

Most-significant growth opportunityLeverage IPG contactor design and manufacturing

Serve high-reliability applications with a focus on wire-harness test and battery applications

Providing probes for all PCBA testing markets


Summary

• IPG products serve most Semiconductor Test market segments leveraging a broad product portfolio, global design, manufacturing, applications and sales.

• Product design and delivery are as equally important as technical capability

• A local supplier Globally.

• Vertical integration within IPG and within Xcerra provides significant advantages, developing and delivering time-critical solutions for standalone and fully integrated test-cell applications


Xcerra Test Handling Business

Michael Goldbach, Vice President, Handler Group

Focus Markets Handler Segment

Mobility - Connectivity“CONNECTING anything– anywhere –anytime”

Typical Applications:> mobile phones> tablets> ultrabooks

Automotive“GETTING everywhere – safely and efficiently”

Typical Applications:

> driving safety

> engine control

> driving comfort

> car multimedia> car multimedia

Smart Power“USING power more efficiently”> power management> power semi modules> power discretes

Typical Applications:> consumer> automotive> Industrial

Sensors“SENSORIZATION of things”> sensing> actuating

Typical Applications:> mobility> automotive> healthcare 08 October

2014


Overview Handler Models

System Type Key Markets Typical Packages

Gravity AutomotivePowerSensors

SOQFNTO

Pick & Place Mobility / ConnectivityAutomotivePowerSensors

QFPBGAQFN

Turret Power SOTTurret PowerMobility / Connectivity

SOTSO, QFN

InStrip Mobility / ConnectivityPowerSensors

ALL

InCarrier Mobility / ConnectivityAutomotivePowerSensors

QFNBGASOWLCSP

n.a.


Focus on Growth Markets

Pick & Place

Strip & Carrier Handling

MEMS / Sensor Market


P&P – Historical Market SegmentationP

erfo

rman

ce

Automotive• Performance is key• A/H/C Conditions• Performance over cost

Cost of Test

Consumer

Mobility

• Cost driven• A/C Conditions• Reuse of Equipment


P&P – New Market DynamicsP

erfo

rman

ce

Strong Overlap in MarketRequirements

Automotive

Cost of Test

Mobility

Consumer


Xcerra P&P Products Matching the Market Sweet SpotP

erfo

rman

ce

MT95

New MT2168A/C/H

Cost of Test

MT2168 A/H


MT2168 – Unique Features Driving Growth

MT2168 Market Unique performance

Modular Design Mobility, Consumer, Automotive

Buy only what is neededEasy field upgrade, easy test floor management

Flexible side pitch Mobility, Consumer, Automotive

Reuse of existing hardware Cost down

Flexible plunger Mobility, Consumer, Automotive

Higher contact reliabilityHigher yield

Soft touch Mobility, Consumer Safe handling of bare die, WLCSP and thin devices

Tri Temp up to 175C Automotive Must requirement for AutomotiveStrong installed base on MT95Well know temperature performance

PoP Handling Mobility, Consumer Top and bottom contactingSupporting newest packaging trendsRoadmap for TSV

Reliability Mobility, Consumer, Automotive

Proven lowest jam rate (OSAT)Reduce cost of operations



Pick & Place




Market Dynamics for Strip and Carrier Handling

� Market drivers for strip handling� Massive parallel test to reduce cost (e.g. MEMS)� Gravity handling limitations in multisite, die sizes and uptime� Packaging requirements (e.g. WLP, fine pitch)

� Challenges for strip handling driving carrier handling � Singulation after test (e.g. Automotive)� Complete process change in manufacturing setup� Increasing dependencies on assembly and packaging services

8 October 2014measured by your success 32

Issues:

Today’s Common WLCSP Test Process Shows Quality Leakage

Test on Wafer Prober

Sort-Un-Load & 5S (?) Vision inspect

into Tape & Reel

Dicing on Dicing Machine ?

Final

Test

Issues:

1. No final test after dicing�� Risk of quality escapes ↑

�� Cost of bad quality ↑

2. 5S visual inspection for µ-size defects

�� Support Cost ↑ UPH↓

3. No seamless RMA test solution available

�� New setup just for RMA


Xcerra WLCSP Test Process Solves Customer Quality Issues

WLP test process with Multitest Final InCarrierTM Test

Test on Wafer Prober

Sort-Un-Load & Vision inspect

into Tape & Reel

Dicing on Dicing Machine

Final Testw/

InCarrierTM?

Wafer ring load to

InCarrierTM

e.g. x8// x8// �� x16//Increase of multisite

Optional: RMA load

Reel to InCarrier

The only process in the market covering WLP requirements:

1. Test is Final test – no compromised on quality

2. Full RMA test support – easy handling of customer requests

3. Increasing multisite capability – reduce cost of test

4. Reduces vision inspection - reduces cost for final packing step

InCarrier


Singulated IC Test InStrip® IC Test

InCarrier – Addressing the Strip Handling Challenges

Update Q3/2014:

o >2.000.000.000 units tested

o 80% thereof were 2x2 packages

Combining advantages of Singulated Test and InStrip Test

InCarrierTM IC Test

Patented

o 1st WLP carrier <2x2 shipped

Key Market Application: WLCSP


Xcerra´s Unique Position in Strip and Carrier Handling

One Handling Platform for all

> InStrip

= Standard Strip Test

> InStrip 3D

= for 3D TSV partial stack in process test

Market Leader

> InCarrier

= InStrip for singulated device test

> InMEMS

= InStrip for MEMS testMarket Leader

Market Leader



Pick & Place




Strong MEMS Market Unit Growth Forecast

Served by Multitest Test ModulesMajority for Consumer Applications

Source: Yole Developpement


Internet of Things Leads to MEMS/Sensor Device Ramp

� IOT will drive a large variety of end applications� IOT will demand a strong increase in variety of sensor technology


Xcerra – Best Choice for IoT Sensor Requirements

MEMS Module

> MEMS stimulus for complete strip> High parallel test 1200 signal lines> Configurable for multiple

MEMS applications

Available- InFlip : Accel. 3 axis- ÍnFlipM: Accel. and magnet 3 axis- InGyro: Accel. + Gyro 3 axis- 9DOF: Accel. + Gyro + magnet

3 axis

BU InStrip

> Standard handler platform

> Temperature conditioning(-40°C to +125°C)

> Vision aligned contacting

> Process control(Datamatrix, SECS/GEM, G84)

> Fast package conversion 3 axis- InPressure: Pressure up to20 bar- InPhone: Microphone test

Planned- InBaro: barometric pressure test- InOptic: optical and UV

> Fast package conversion

� The only modular handling solution in the market� Fast reaction time to rapid changing market demand� Reuse of capital, reduce cost of operation� The only high volume, high throughput solition


Develop Test Cells

What is a Test Cell ?

Taking ownership of delivering a complete test solution to the customer

ATEHandler/ Prober

Mechanical Interface

Electrical IFTest Floor Integration

Test Solution

Customer


Current Back End Cost Down Model Reaches the Limit

Lifetime

YieldUtilization(OEE)

Throughput (UPH)* *

Capital CostsVariable Costs ++++

CoT

++++

=

Overhead

• Focus on “cheaper and faster”• Multisite for higher throughput• Yield and utilization limited by multi-vendor strategy


Test Cells – The Next Generation Cost Down Driver

Lifetime

YieldUtilization(OEE)

Throughput (UPH)* *

Capital CostsVariable Costs ++++

CoT

Overhead++++

=

New “Xcerra Test Cell” Coverage

• Holistic approach for all test cell elements• Focus on improved yield, utilization and overhead


Our Vision – Continuous Value Add for our Customers

– Streamline Vendors

– Economies of scale

– Project Management

– Integration

– Optimized performance for selected test cell configurations

Phase 3Phase 2Phase 1

“One Stop Shop”Share Gains from Cross

Selling

Adding Value ThroughComplete Test Cell

Solutions

Leverage Technology Into New Products

– Economies of scale

– Seamless support

– Operations assistance

– Integration

– Deliver complete solutions

– Operations assistance

configurations

– Enhanced SW integration

– Enhanced process and operations assistance

Now Next 12 Months 24-36 Months


Test Cells – Opportunities in Many Market Segments

Automotive Radar 77GHz

WLCSP – Singulated Test Cell Solution

MEMS / Sensor Test Cells

Automotive ASSP

Mobility ASSP

Microcontroller – Strip Test Solution

Analog / Linear ICs


First Test Cell Solution Shipping This Month

• High volume production “at speed“ testing solution for ADAS Radar enabled devices • Automated Automotive compliant Tri-temp testing and handling • Commercial ATE 77GHz Radar transmit and receive unit• Fully matched “at speed“ contactor and interfacing assembly

• Lowest number of signal transitions provides better signal integrity• Packaged and WLCSP compliant

• Mechanical interfacing and integrated test cell communication

Tri-Temp HandlerGeneral Purpose ATE

Integrated 77GHz test andcontactor assembly

Optimized transmission paths


Key Xcerra Technology Enables Test Cell Solutions

• 77GHZ Integrated contactor, adaptor & interface board• Designed to ensure shorthest possible path from

Kestrel instrument to DUT and validated over automotivetest temperature ranges

• Standard docking with MT9510 and standard probers

• MT9510 – Tri-temp, Automotive compliant PnP handling solutionsolution

• -55°C to +175°C temperature range• Optimized mechanical docking and ATE communication

• Kestrel 77GHz Automotive Radar test option• Available with an LTXC X-Series ATE today• Calibration of RF to device pin or ball


Test Cell – Innovation Enhancing the Back End Process

• Improve OEE and yield

• Maximize use of capital

Reduce Cost

• Improve Time to Volume

Improve Flexibility and Agility

• Improve Time to Volume

• Meet fluctuating demand with high productivity

• Benefit from complete test solutions

• Adapt to new test and packaging challenges

• Focus resources on core business

Gain Competitive Advantage


Xcerra Share Gains & Opportunities

Pascal Rondé Senior Vice President, Global Customer Team

PAx-ac: The Industry Standard for PA / FEM / Antenna Switch

– PAx-ac

• Introduced March 2014 to address PA/FEM test requirements for 4G cell and 5G connectivity

• Shipped >90 PAx-ac by end of September

� Major US PA makers serving high end � Major US PA makers serving high end smartphones

� China/Taiwan PA providers to local low cost smartphones

• Total PAx tester units shipped to reach 250 by end of calendar year


Diamondx : Broad Market Adoption

– Diamondx

• Shipped 100th system in August 2014

• OEM customer base includes:� US and Europe IDMs� Major Taiwan/China Fabless

• Wide range of applications on Diamondx• Wide range of applications on Diamondx

• OSAT install base has reached critical mass

• Large number of new applications under development ramping in volume in CY2015


LTXC Growing Faster Than ATE Market

In 20 months gained 2.7 points

2012 2013 2014 ytd

Market share5.3%

Market share7.1%

Market share8.0%

-6% +43%

2012

2012 - 5.3%2013

-30%

2014 ytd

+27%

Source: SEMI SoC Billings. 2014 ytd (Jan–Aug), Xcerra

LTX-Credence market share

SoC & Logic Test Equipment Market Size


Top Semiconductor Companies Adopting First P&P Platform and

Leading Edge Contactors

– MT2168 P&P Handler• Strong and broad customer interest driven by very

innovative modular approach and roadmap to Tri Temp• Multiple accounts placing repeat orders• Strong pipeline of evaluations ongoing at major US,

Europe and Asia customers

– Interface Products• WLCSP Ceramics in qualification at leading US fabless

company in mobility space

• Sharp Tip Quad Tech evaluation at large graphics and chipset company

• High Fidelity Kelvin developed for several global Automotive IDMs


Beyond great products, what do Customers need?

European Executive Seminar – Munich Sept 22nd

– Theme: How do test operations address overall cost reduction challenges and ever faster time to volume requirements in a consumer driven semiconductor market?

– Full day workshop session • 12 Senior Managers/ Executives from major European companies • 12 Senior Managers/ Executives from major European companies • 10 Executives from Xcerra


The Voice of Customers

– Cost of test reduction demand continues• Even stronger intensity for Internet of Things (IoT)• Coupled with greater quality demands

– ATE (as a testing tool) is not the bottleneck anymore

– Shift has moved to optimizing the whole back end process– Big Data Management– Big Data Management

– Automation

– Overall Equipment Efficiency (OEE) of the Test Cell

– Handler Units Per Hour (UPH)

– Space on Load Board

– General acceptance that a change of the existing process maybe required


Xcerra Optimizing the Whole Back End Process

Big Data Management Diamondx high bandwidth backbone based on PCI-e

Automation Will InCarrier become the FOUP of the back end?

Overall Equipment Addressed by our TCI strategy Overall Equipment Efficiency (OEE) of the Test Cell

Addressed by our TCI strategy

Handler Units Per Hour (UPH)

MT2168, InStrip/InCarrier strength

Space on Load Board InStrip/InCarrier increases test interface dimension, large load board is our sweet spot


Growth from “Cross Selling” - Leveraging a Strong Channel

– Enhanced geographic coverage for Multitest in Taiwan and China• Spirox now represents all semiconductor test product lines

– Leverage strong ATE presence at some key accounts to drive Handler and Interface Product sales• Power and Analog IDM has signed exclusivity agreement for 5 years

for all Xcerra products• Large European IDM opening Handler and Load Board evaluation to

XcerraXcerra• Several other opportunities in the works

– Leverage strong Handler presence at some other key accounts to drive ATE sales• Large Automotive manufacturer opening two different ATE evaluations

to Xcerra• Major Mixed Signal and Sensor company opening ATE evaluation to

Xcerra• Several other opportunities in the works


Initial Test Cell Success & Opportunities

– First Sensor Test Cell success at US based IDM

• Four active opportunities being worked on

– First 77 GHz Radar Test Cell success at ST

• Joint paper being presented at Semicon Europe Oct 8th

• Three active opportunities being worked on

– WLCSP providers must move to final test of singulated parts

• Due to dppb requirements of high end smartphone brands

• Five active opportunities being worked on for InCarrier Test Cell


Xcerra Financial Performance

Martin Senger Vice President, Finance

Recent Industry Trends and Corporate Highlights

� Industry

– Mobility and automotive leading recovery across all technology segments

– Calendar year 2014

• SOC tester sales forecast for 21% growth1

• Handler sales forecast for 13% growth2

– Semiconductor companies remained positive in the third calendar quarter

– PCB board test market remains strong– PCB board test market remains strong

� Corporate

– Acquired businesses have been accretive to overall company

– Achieved $15M annualized integration savings

– Semiconductor test product lines driving company growth

• Cyclical recovery

• Cross selling opportunities and new product adoption

• Equity raise1 Source: Prime Research2 Source: VLSI Research


Strong Recurring Revenue Stream

Xcerra

18%

53%47%

LTXC Standalone

Q4 ’14 Revenues: $48.3 MQ4 ’14 Revenues: $48.3 M Q4 ’14 Revenues: $124.3 MQ4 ’14 Revenues: $124.3 M

82%

53%

Recurring Capital Recurring Capital


Balance Sheet Overview($ in millions)

Assets 7/31/2014 4/30/2014

Cash & Equivalents $99 $97

Accounts Receivable 90 78

Inventory 70 70

Other Current Assets 5 5

Property & Equipment 41 35

Intangibles 12 10

Goodwill 43 43

Other Assets 4 4

� Track record of strong working capital management due to:

– Outsourcing model

– Quality collections

– Tight management of payables

� Efficient capital investment strategy enables cap-ex to run below depreciation run rate

Total Assets $364 $341

Liabilities

Accounts Payable $33 $31

Accrued Expenses 37 36

Deferred Revenue and Customer Advances

7 4

Debt 70 67

Other Liabilities 12 13

Total Liabilities $159 $151

Shareholders’ Equity

Equity $205 $190

Total Liabilities & Equity $364 $341

� Debt

– $52M term loans

– $18M promissory note to Dover

� Net Cash position

– $29M as of 07/31/2014

– Approximately $80M pro forma post offering


Target Business Model

Sales $93M $125M $150M

Gross Margin 37% 43% 47%

EBITDA $3M $20M $33M

Operating Income $0M $17M $30M

Op. Inc. per Share $0.00 $0.30 $0.57

Per Quarter

Op. Inc. per Share $0.00 $0.30 $0.57

Annualized $0.00 $1.20 $2.16

1. Assumes $15 million in annual cost synergy

2. Excludes SBC expense, amortization of purchased intangible assets, effects from purchase accounting, and one-time charges

3. Assumes 55 million fully diluted shares outstanding

4. Does not include quarterly net income improvement of $0.013/share in interest expense savings

Notes:


Q4FY14 Company Guidance and Actual Results

Company Guidance LTXC ECT/MT Xcerra

Revenue $48 - 50M $65 - 67M $113 - 117M

Gross Margin 57% 31% 42%

Non-GAAP Net Income $0.08 - $0.10 $0.04 - $0.06 $0.12 - $0.16

Actual Results LTXC ECT/MT Xcerra

Revenue $48.3M $76.0M $124.3M

Gross Margin 57.7% 35.0% 43.8%

Non-GAAP Net Income $0.10 $0.15 $0.25

Notes:• Excludes effects of purchase accounting

• Excludes amortization, restructuring, and other one-time charges

• Assumes 49.3 million fully diluted shares outstanding


Delivered Target Model Results

Q4 FY14 Reconciliation of GAAP to Non-GAAP Results

$M Per share

GAAP net income $ 13.5 $ 0.27

Add: Amortization of purchased intangible assets $ 0.8 $ 0.02

Amortization of inventory step up for PPA $ 1.3 $ 0.03

Bargain purchase gain ($ 4.0) ($ 0.08)

Restructuring and acq. / integration related $ 0.8 $ 0.01

Non-GAAP net income $12.4 $ 0.25

Add: Taxes $ 1.0 $ 0.02

Net interest expense / other $ 1.3 $ 0.03

Stock-based compensation $ 1.7 $ 0.03

Non-GAAP operating income at $124.3M in sales $ 16.4 $ 0.33

Business model: Operating income at $125M in sales $ 17 $ 0.34


Note: Per share calculations in this table are based on 49.3 million shares outstanding (share count prior to recent offering)

Xcerra Business Outlook

Q1FY15 Guidance

Revenue $124 - 128M

Gross Margin 42%

Non-GAAP Net Income $0.22 - $0.26

Notes:

1. Excludes effects of purchase accounting

2. Excludes amortization, restructuring, and other one-time charges

3. Assumes 52.2 million fully diluted shares outstanding

4. Guidance updated only to reflect post offering share count

5. Guidance provided on September 8, 2014. The Company assumes no obligation to update.


Thank You

xcerra analyst day presentation october 7, 2014

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