Doug Cline

New Kids on the Block
LUMEXIS CORPORATION
Who We Are
1

A Manufacturer: Advanced IFE
• In-seat AVOD IFE
• Full, high-end functionality
• Fiber optic technology, end-to-end
• High Definition picture quality
• Revolutionary low cost of ownership
2

Can IFE Veterans even hope to challenge
Long-established manufacturers?
Legacy IFE Manufacturers’ Advantage -
Two unchallenged companies share market
Proprietary designs based on decade-old technology
Little pressure for major improvement
Airlines’ Problem : High Cost of Ownership
Expensive to buy
Complex to install & maintain
Very heavy
Large Seat Electronics Boxes
Challenging & Costly to upgrade

Movie Server
Existing Systems (Complex)
SEB
SEB
Digital
Switch
Zone
Boxes
< 5Mbps/seat
Server Switch Unit
Super high bandwidth video @ 1,000 Mbps speed
~100Mbps/seat
Lumexis’ Fiber-To-The-Screen TM System
(Simple)
PATENTS PENDING

LOWER COST of OWNERSHIP
•LOWER PRODUCT PRICE
• Less Acquisition Cost
•LOWER WEIGHT & VOLUME
• Less Carriage Cost
•NO SEATBOXES OR ZONEBOXES
• Less Repair Cost ( & passenger unhappiness!!)
•ONLY PASSIVE OPTICS
• Less Troubleshooting Cost
>50% LESS
•SAME LRUS FIT NARROW & WIDE BODY
•Lower Spares Cost
>40% LESS
•BROWSER-BASED SOFTWARE ARCHITECTURE
• Less Applications Cost
LINUX
PCI Std

Curriculum Vitae
• SONY TRANS COM VETERANS (IFE/avionics yrs)
– Chief Executive Officer (30)
– Chief Operating Officer (14)
– Director of Program Management (15)
– Director of Customer Support (25)
– Director of System Software (15)
– Director of Content Integration Services (18)
– Manager of Operations (19)
• AIRSHOW VETERANS
– Chief Technical Officer (25)
– Director of Quality Assurance (28)
– Chief Engineer (22)
– Principal Engineer (16)
– Manager of Repair Services (12)

So, how did we get here??

Random
Events
INNOVATION
The reality-based board game for Entrepreneurs
(from Lumexis)
RAPID
GROWTH
START
2003 2006
2009
8

Step 1 – Form a company
(2003)
• Venture Capitalists’ Joint Venture
– “We have Proprietary Fiber Optic Technology”
– “We want to start new IFE mfg company”
– Doug & Rich: “VERY BAD IDEA !!”
• VCs: “Only want to use your names; we will pay BIG $”
Doug & Rich: “Wow! Where do we sit ?”
9

Step 2 – Name the company
• Look up fiber optic sounding names:
– Luminex (already taken and trademarked)
– Opto (“sounds like a doctor”)
– Fibro (“sounds like a disease . . .”)
• Lumi – Greek for “light”
• Exa – Greek for 10 18 (mega,giga,tera,peta,exa)
10

Step 3 – Venture Capital Quits
• “Sorry Chaps, we’ve split up . . .”
– “We VC’s really prefer software & biotech & “stuff”
– “We don’t much like hardware company “plays’ ”
– (“and we really don’t like the airline business !!”)
• “So, there is NO MONEY to start this IFE company”
(but we don’t mind if you keep going on your own . . .)
12

Random
Events
Joint Venture Breaks Up !
Lose all promised funding
INNOVATION
Spend your own money to look
The reality-based for investors board game around for Entrepreneurs
the world
(from Lumexis)
Waste 2 years – lose a turn
OH NO !!
En-tray-”pray”-noor
RAPID
GROWTH
START
VCs split up
2003 2006
2009
13

Step 4 – Build Tech Demo;
Visit Airlines (2005)
• Raise $1 million+ from “angels”
– Trusting friends and colleagues
– Prep mostly nights and weekends
– Visit 18 major worldwide airlines
• No sign-ups but early every airline says,
"If you show this system works,
We want to be your 2 nd customer!”
14

Random
Events
INNOVATION
The reality-based Raise board $1 million game for to build Entrepreneurs
demonstration (from Lumexis)
system
OH NO !!
Visit 18 major airlines on
Worldwide Introductory Tour
Successful
Demo Tour,
but . . WAEA ‘06
Advance to WAEA ‘06
RAPID
GROWTH
START
No customer
VCs split up
sign-ups
2003 2006
2009
15

Step 5 – Win US Airways as
Launch Customer WAEA’06
• Raise $7 million new capital
– Set up offices in Orange County (w P&T !)
– Bring in senior managers
• Sony & Airshow
• Engineering, Manufacturing, Customer Support
– Begin development
• ENCOUNTER FUEL PRICE CRISIS !!
16

Random
Events
START
Raise $7 million to build
INNOVATION
demonstration system
The reality-based
Develop/qualify
board game for Entrepreneurs
(DO160) FTTS
(from Lumexis)
FUEL PRICE SKYROCKETS
Successful
Demo Tour,
but . .
WAEA ‘06
Advance to Summer 2008
OH NO !!
FUEL PRICE
SKYROCKETS
RAPID
GROWTH
No sign-ups
VCs split up
2003 2006
2009
17

Step 6 – Rollout, 1 st Flight
• Raise $10 million new capital
– Roll out FTTS at WAEA ’08
– 50 airlines visit exhibit
– Receive Airfax “Best in Show”
• Launch US Airways Flight Trial
– Hugely successful, ongoing demonstration
– Receiving/negotiating numerous RFPs
18

Random
Events
INNOVATION
The reality-based Raise $10 board million game Ops for Funds Entrepreneurs
(from Lumexis)
136 screen AVOD intro WAEA
HOORAY,
We Win !!
Succeed in US Airways
A320 Flight Trial
Advance to RAPID GROWTH
RAPID
GROWTH
START
2003 2006
2009
19

US AIRWAYS
A320
Tail Number
N680AW
Flying daily:
SNA
PHX
ATL
PHX
SNA
21

Contact Information:
Questions?
J. Douglas Cline
dcline@lumexis.com
i
Tel: +1.714.641.1444
www.lumexis.com
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