Company Confidential Board of Directors ABC Company VIEW AS NOTES PAGES IN ORDER TO UNDERSTAND FLOW...

Company Confidential

Board of Directors

ABC CompanyVIEW AS NOTES PAGES

IN ORDER TO UNDERSTAND FLOW

AND CONTEXT

Template prepared by U.S. Venture Partners


Agenda

• Summary• Highlights• Lowlights• Financial Update• Topic 1• Topic 2• Topic 3

• Last 30 Days• Next 30 Days• Board Session

– Minutes– Stock Grants– Other BOD Items– Q&A and Feedback


Summary Statement

• With the beta release of our first widget, ABC is entering a new phase, where customer feedback will begin to influence near-term priorities.

• It is essential that at least 3 of our 8 beta sites become reference accounts for ABC within the next 6 months, if we are to make our financial plan and attract Series B investors

• The departure of our VP Operations at a critical time for nailing down the manufacturing recipe is a major problem.


Leverage Point Flow Chart

Market Growth

Product

Cust. CredibilityCompetition

Leadership

Customers

Balance SheetPartners

Sales Execution

Volume

MarginsExpenses

Eng Invest/Exec

RetentionLeadership

SuccessTop Line

Bottom Line

Eng Invest/Exec

Expenses

Lock-in Key Emp

Financing

Mktng Execution

CEO Search

Culture/Commun

Bottom Line

BD Execution

Eng Invest/Exec

10Points OfLeverage

Financial Controls

DirectionOf Change

TopLine

BottomLine

AssureFuture


Key Metrics

OPEX $M

March April May

Goal 1.5 1.4 1.6

Actual 1.3 1.4 1.4

Delta -0.2 0 -0.2

74

32

12

7

4*

Qualified

Proposal

Evaluating

Wins

Leads

Design Win Funnel

June 23 v.2.0 release status = +7 daysAug 31 Hardware release status = on time

Bookings $M

March April May

Goal 1.3 1.5 1.7

Actual 1.1 1.8 2.2

Delta -0.2 0.3 0.5

*2 of 4 wins were target accounts


Highlights

• V.1.2 Beta release on time; six of eight sites have received the product.

• Negotiated new capital equipment lease with Darthman Capital• Received unsolicited acquisition offer from WebBunny• Achieved Bookings and revenue goals for 2 consecutive months• OPEX and COGS, better than plan.


Lowlights

• Departure of VP Ops• WebTiger announces competitive product—available Q4• No progress on building lease renegotiation• Yield issue on MCU chips still not well understood• Legal expenses 2X forecast• Marketing spending too far behind schedule, masking

engineering over-spending


Financial Summary

Ingle J PrognertController


P&L

Current Month Quarter-to-Date Year-to-DateRevenue Actual Plan Delta Actual Plan Delta Actual Plan Delta Revenue Component 1 Revenue Component 2Gross Revenue Total Revenue AdjustmentsNet Revenue

Cost of Goods Sold

Gross Margin Gross Margin %

OPEX Engineering Marketing and Sales Operations Finance G&ATotal OPEX Opex %

Operating Profit

Other Income/Expense

Net ProfitNet Profit %

Annual Plan


Balance Sheet

Current Month Last Month DeltaASSETSCash & EquivalentsReceivablesInventoryOther Current AssetsTOTAL CURRENT

Plant and EquipPropertyOther Long-Term AssetsTOTAL LONG-TERM

TOTAL ASSETS

LIABILITIES AND EQUITIESAccounts PayableSalaries PayableTaxes PayableOther Payable

Long-term Liabilities

Equities

TOTAL LIABILITIES AND EQUITIES


Revenue Waterfall

January February March April May June July August September October November December TotalPLANREPLANJanuary Actual Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast ForecastFebruary Actual Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast ForecastMarch Actual Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast ForecastApril Actual Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast ForecastMay Actual Forecast Forecast Forecast Forecast Forecast Forecast Forecast ForecastJune Actual Forecast Forecast Forecast Forecast Forecast Forecast ForecastJuly Actual Forecast Forecast Forecast Forecast Forecast ForecastAugust Actual Forecast Forecast Forecast Forecast ForecastSeptember Actual Forecast Forecast Forecast ForecastOctober Actual Forecast Forecast ForecastNovember Actual Forecast ForecastDecember Actual Actual

Note 1

Note 2

Note 3

Note 4


Gross Margin Waterfall


Note 1

Note 2

Note 3

Note 4


OPEX Waterfall


Note 1

Note 2

Note 3

Note 4


Net Profit Waterfall


Note 1

Note 2

Note 3

Note 4


Capital Spending Waterfall


Note 1

Note 2

Note 3

Note 4


Net Cash Flow Waterfall


Note 1

Note 2

Note 3

Note 4


Cash Balance Waterfall


Note 1

Note 2

Note 3

Note 4


Headcount Waterfall


Note 1

Note 2

Note 3

Note 4


Topic 1: Engineering Summary

Elic TronskibhoyVP Engineering


Topic 2: Competitive Analysis

Peare FlackmanVP Marketing


Topic 3: Key Account Status

Imada NumbasVP Sales


Last 30 Days

• Keep Q2 revenue on plan—done• Hire VP of Business Development—candidate considering offer• Add one distributor in ROW—added 2: Korea and Taiwan• Make 1.2 software release on time--done• Keep 2.0 on schedule—one week behind schedule currently• Keep 8/31 Hardware release on schedule—done• Renegotiate building lease—not done• Complete spending authorization matrix—done• Introduce new managers to focal review process—done


Next 30 Days

• Make 2Q revenue, bookings and expense goals• Source 3 candidates for VP of Operations• Complete building lease renegotiation• Develop Series B financing plan for BOD• Hire one sales director• Hire software engineering director• Win 2 (of top 5) targeted design wins• Complete competitive analysis; present to BOD• Complete spec for 3.0 software release• Develop 2 candidates for VP Ops• Understand and initiate remedial action on MCU yield issue


Board Session

Company Confidential Board of Directors ABC Company VIEW AS NOTES PAGES IN ORDER TO UNDERSTAND FLOW...

Documents

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