Packet Digital Confidential
Terri Zimmerman, CEO
Rob Nance, CTO
Packet Digital Power Management Technology Delivers Reduced Power Consumption and Improved Performance
November 2014
Packet Digital Confidential
Packet Digital PowerSage®
A power management integrated circuit that…Saves power or reduces power consumptionImproves overall system performance dramaticallyReplaces existing voltage regulatorsProvides a greener solution
Power Management Industry Strong and Growing
Packet Digital Confidential
Packet Digital ― An Emerging World Leader In Power Management Integrated Circuits
Pioneers a revolutionary approach to power managementTargeting server and memory module markets
Saves the average data center $2.5 million annually in electricitySaves 40% power in memory modules
Creates patented PowerSage® integrated circuits incorporated in Intel’s customer reference board
Awarded design wins in 2014. Parts ordered by SMART Modular. Design underway with Cisco for 2015.
Received $10 million in DOD contracts in power management
Featured in the Wall Street Journal, Aviation Week, Fox National Business News and Inc. 500
Packet Digital Confidential
Packet Digital Well-Known In Industry
"Architect of Defense"
Packet Digital Confidential
Packet Digital ― Power Management SolutionsPacket Digital ― Power Management Solutions
Less Power = Less Heat•Improved thermals results in more flexibility in component placement,
lower fan speeds and cooler data centers•Increases possibility of running higher ambient temperatures in the
data center
Design Services•Our experienced team can assist with custom designs, validation,
technology research and more!
Improved Energy Efficiency•Innovative voltage regulation designs deliver up to 40% reduction in
power consumption, up to 1W per DIMM at the wall!
withoutWith PowerSage®
DIMM DIMM
Packet Digital Confidential
Patented On-Demand Power® Technology And Patented
PowerSage® Integrated Circuitry
Monitor activity intelligently across an entire system
Calculate and distribute the minimum power required to perform an operation, only when needed
Control the clock and supply voltages in real-time, outside the microprocessor
Provide just-in-time, just-enough, power management
PowerSage integrated circuits were included in Intel’s reference platform with up to 25% energy reduction in peripherals of portable electronic devices
Packet Digital Delivers Unprecedented Power Management Through Patented Technologies
Scans Memory, CPU, I/O and Communication Links To Adjust
Supply Voltages and Clocks
Memory
I/OCPU
Par
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l In
terf
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Par
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terf
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Serial InterfaceSerial Interface
Packet Digital Confidential
Packet Digital Now Owns Twelve Patents In Power Management
The patent portfolio encompasses Packet Digital’s On-Demand Power® technologies, with broad coverage of the hardware-based, system-wide dynamic power management
Autonomous power management control outside the microprocessorDynamic voltage scaling and frequency scaling without halting the systemActivity monitoring to detect changes in application demand, correlating to energy demand, and commanding new clock frequencies and supply voltagesA dynamic power management approach that is independent of architecture, application, operating system, packaging, or functionEnergy savings based on system selectable algorithms, with user-defined settings and auto-tunability
Packet Digital Confidential
Data Center ServersData Center Servers
22.27W22.27W
PowerSagePowerSage54135413
30.9W30.9W
IntersilIntersilISL6312AISL6312A
DDR3 Spec Power 1.5V; 12x16 GBDDR3 Spec Power 1.5V; 12x16 GB
Saves Over 8.5w or 28%Saves Over 8.5w or 28%
Packet Digital Delivers Improved Performance And Power Savings
In Intel’s testing Packet Digital’s PowerSage reduces noise by 50% on average and 80% maximum
In data center servers and designs Packet Digital’s PowerSage reduces heat as well as energy consumption
Latency, Noise, & Heat
Memory Modules
Standby Standby (IDD6)(IDD6)
Active Active (IDD0(IDD0
))
1.72W1.72W
1.2W1.2WPowerSagePowerSage
1.99W1.99W
Power Savings up to 40%
1.01W1.01WPowerSagePowerSage
Memory Modules
Standby Standby (IDD6)(IDD6)
Active Active (IDD0(IDD0
))
1.72W1.72W1.2W1.2W
PowerSagePowerSage
1.99W1.99W
Power Savings up to 40%
1.01W1.01WPowerSagePowerSage
Data Center Servers
22.27W22.27W
PowerSagePowerSage54135413
30.9W30.9W
IntersilIntersilISL6312AISL6312A
DDR3 Spec Power 1.5V; 12x16 DDR3 Spec Power 1.5V; 12x16 GBGB
Saves Over 8.5w or 28%Power Savings
Provides Competitive Advantage
Packet Digital Confidential
Packet Digital Sales And Marketing Activities With Industry Leaders Expanding
Fo
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Packet Digital Confidential
LCD TVsPCs/Laptops
PowerSage® Integrated Circuits Provide Power Savings To Many Products
DVD Players
Set-top Boxes
Routers/GatewaysPortable Gaming
Mobile Phones
Tablets
Servers
Gaming Systems
Packet Digital Confidential
Consumer Consumer ElectronicsElectronics
GameGame
ConsoleConsole
MicrosoftMicrosoft
ServersServers
CiscoCisco
Packet Digital Sales And Marketing Activities With Industry Leaders Expanding
PowerSage® DDR PMIC
Ma
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M
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s
Pro
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on
P
rod
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Tim
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line
ModulesModules
Smart Smart ModularModular
Packet Digital Confidential
Competitve LandscapeCompetitve Landscape
Packet Digital Confidential
PowerSage® Competitive Differentiation
Offers advanced power management across platforms, operating systems, and devices
Memory ModulesServers, routers, and switchesUnattended wireless sensorsTactical radios and computersMobiles Phones
Monitors activity across an entire system, delivering power only when needed with faster response timeDynamically adjusts clocks and ‘supply voltages’ in real-time, system-wide saving power, without software controlReduces noise and heat resulting in higher reliabilityWith lower power, faster response time, higher reliability more functionality may be enabled resulting in higher customer satisfaction
Packet Digital Confidential
Packet Digital Strategic Relationships
®
Strategic Partnerships For Product Development and Systems Integration
Sales and Distribution Partners Form Worldwide Supply Chain
Packet Digital Confidential
Deep And Broad Management And Organizational Leadership Lay Foundation For Packet Digital Growth
Extensive business expertise serving as COO and CFO for both private and public companies, raising over $500 million in capital.
Executed a successful IPO while CFO and VP of Ops at Great Plains Software.
Terri Zimmerman,
CEO
Rob Nance,
CTO
Over 20 years of experience in the server industry. Former Chief Architect in Cloud Computing for Intel . Senior technical roles at DELL and NCR.
Led development of Intel’s first blade server creating the SSI blade standard.
Packet Digital Confidential
Experienced Board Provides Influence and Connections
Linda Pancratz
Board MemberRajesh Gupta, Ph. D., Advisor
Adm. (Ret.) William Owens,
Advisor
President and CEO of Otter Products. Spent 25+ years in electronics manufacturing services industry.
Has an extensive background in growing successful companies.
Peter Lindgren
Board Member
Retired Chairman & CEO of TDL Infomedia Limited in the United Kingdom. Served on numerous corporate boards throughout Europe. Currently Chairman and CEO of Mountain Capital, LLC, an investment company.
The Qualcomm Chair in Embedded Microsystems at UCSD.
Fellow of the IEEE and currently serves as Editor-in-Chief of IEEE Design and Test of Computers.
Current CenturyLink Chairman of the Board.
Managing Director of AEA Investors. Former CEO of Nortel. Held the position of Vice Chairman of the Joint Chiefs of Staff, other military roles.
Packet Digital Confidential
Financial Information
Packet Digital Confidential
Packet Digital has invested $20M in PowerSage
Packet Digital invested $20M in technology and product development and creation of IP for On-Demand Power®
$10 million raised from outside investors
$10 million in research grants
Now in full commercial launch of PowerSage Launching PowerSage in partnership with one of the largest memory module suppliers with leading edge power savings
Major product launch at Embedded World in Germany
Mass production commencing
Sampling product or received sales orders from SMART Modular, Cisco, and other market leaders and influencers
Validation of the product by Intel and path forward to mainstream reference designs
Packet Digital Confidential
$3M in Equity to Fund Launch of PowerSage$3M in Equity to Fund Launch of PowerSage®® and and Future Revenue GrowthFuture Revenue Growth
Significant Revenue
Growth Projected
$1.2M
$72.7M
$15.1M
$40.0M
Production Financing credit facility in place
Seeking $3M in Equity Funding
Use of Proceeds
Commercial launch of PowerSage
Sales to support the momentum of the PowerSage product launch with SMART, Cisco, and others
Design engineering and operations staffingAdditional use of proceeds
SoftwareProduction mask setsProduction test
$4.0M
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Projected Financial Model
Packet Digital Confidential
Industry Leaders Enthusiastic About Packet Digital
On Market Opportunity…“the only solution that is available today that can significantly address the power
management problems that we are facing is On Demand Power”
― Samsung
On Technology…“Packet Digital’s innovative On-Demand Power and PowerSage product with its ability to improve performance and reduce power
consumption in servers is particularly interesting.” ― Cisco
On Product Performance…“Packet Digital’s On-Demand Power
promises greatly improved performance over existing power management
methodologies. The commercial portable consumer electronics market promises to
be lucrative in the long term for Packet Digital.” ― Prismark LLC
On Capability…Packet Digital has the most innovative new power management technology in many years (only power company with
a real systems-level focus).” ― Pagemill Partners
Packet Digital Confidential
Packet Digital Investor Highlights
“Just-enough/Just-In-Time” patented On-Demand Power® technology and PowerSage® power management integrated circuits
PowerSage solves significant market need in large and expanding markets exceeding a billion annual units
Improves power performance40% in memory modules
20-25% in servers 400% in wireless sensors
Strong value proposition with data centers reducing costs by millions annually and improving performance
Design win with Intel, SMART Modular and Cisco
Relationships and designs underway with market leaders positioned for 200% cumulative annual revenue growth
Proven product and operations leadership
Opportunity for significant investor ROI
Packet Digital Confidential
Thank You