Parade Technologies Best solution provider for touch, display and high-speed digital interface applications

Transcription

1 Parade Technologies Best solution provider for touch, display and high-speed digital interface applications May 17, 2016

2 Safe Harbor Notice This presentation includes forward-looking statements. All statements, other than statements of historical facts, that address activities, events or developments that Parade Technologies Ltd. expects or anticipates will or may occur in the future (including but not limited to projections, targets, estimates and business plans) are forward-looking statements. Parade s actual results or developments may differ materially from those indicated by these forward-looking statements as a result of various factors and uncertainties, including but not limited to price fluctuations, actual demand, exchange rate fluctuations, market share, competition, environmental risks, change in legal, financial and regulatory frameworks, government policies, international economic and financial market conditions, political risks, cost estimates and other risks and factors beyond our control. Parade does not undertake any obligation to publicly update any forward-looking statement to reflect events or circumstances after the date on which any such statement is made or to reflect the occurrence of unanticipated events. 2

3 About Parade Technologies, Ltd. L World s leading provider of Touch, Display and High- Speed Digital Interface solutions Market leader in DP/eDP timing controller Leading expertise in DisplayPort technology and high-speed digital interface transmission Industry s rich portfolio of high-speed interface product Rich portfolio of touchscreen solutions with the industry s most robust noise immunity and wet finger touch performance Strategic collaboration with leading CPU/GPU vendor and tier-1 global brand end customers IPO on September 13, Taipei Exchange: 4966 T Acquire Cypress TrueTouch mobile business on August 1, 2015 Worldwide 397 employees 3

4 Global Presence Ireland (R&D) Beijing (Customer Support) Korea (Customer Support) Washington (R&D) Shanghai (R&D, Customer Support) Japan (Customer Support) California (Headquarters) Nanjing (R&D) Shenzhen (Customer Support) Hong Kong (Sales, Logistics) Taipei (Operations, Sales, R&D, Customer Support) Sufficient, Timely and Efficient 4

5 Parade s Products DP/eDP Tcon DP1.2v, edp1.2v, edp1.3v(psr), edp 1.4b(PSR2) Support low power and up to 4K resolution Support TFT LCD and AMOLED panels For Tablet/Notebook/ALL-in-One /Monitor applications High-Speed I/F Repeaters(USB3.1/HDMI2.0/DP1.2/SATA3); Mux/DeMux Converters (DP-to-HDMI 2.0/DVI; DP-to-VGA; edp-to-lvds; MIPI-to-eDP) USB Type-C redriving switch/with USB-PD Controller; HDMI Jitter Cleaning Reducing jitter; Maintain signal integrity; For PC/Notebook/Tablet/Dongle Source Driver Point-to-Point source driver; SIPI source driver Support 1026,1152,1446 channel; 18/24-bit per pixel; Programming Gamma Support low EMI/RFI, high-resolution and COG panels For Notebook/Tablet panels Touch Controller Single touch, two-finger touch and muti-touch for screen size from 1.5~10.1 Support passive stylus; wet finger tracking; water proofing Support charger noise immunity and low power For Smart phone/tablet/e-reader/wearables/industrial 5

6 Industry Trend 6

7 Evolution of DP/eDP DP v1.1a 2007 DP v DP v1.2a 2014 DP v edp v edp v edp v1.3 (PSR) - Added AUX channel commands to control panel backlight and other display functions - Added HBR2 5.4 Gb/s as option Fast link training by Sink made mandatory 2014 edp v Added Partial-Update Panel Self-Refresh(PSR) option -Added Display Stream Compression option -Added Regional Backlight Control option -Added Multi-touch over AUX options edp v1.4 (a/b) - Addition of specifying Y-coordinates for partial frame update - Refinement to edp 1.4 standard 7

8 Changing Requirements on Display Interface edp advantages over LVDS/MIPI Notebook edp penetration rate will over 60% in Y2016 Fewer wires; enables slimmer cable than LVDS/MIPI Submicron process friendly, easy to integrate into GPU and CPU Less EMI and less RFI (Radio Frequency Interference) with wireless hinge up Provides data & control path to display as a system Support higher bandwidth 8

9 Data Transmission Move to Higher Speed Jitter and signal degrade problems will become significant due to increasing data rate High-Speed interface products will become important to solve the Jitter and signal degrade problem 100G NEXT GEN? USB 2.0 SATA 1.0 PCIe HDMI 1.0 DP 1.3 Thunderbolt 40G TOMORROW 1G LEGACY 10G TODAY USB 3.1 Gen 2 SATA 3.0 DP 1.2/ edp 1.3 HDMI 2.0 9

10 USB Type-C will become the de-facto Global Standard for Data, video and Power Connections USB Type-C combines multiple protocols in a single cable which including USB and DisplayPort USB Type-C including USB and DisplayPort helps the DisplayPort standard reaches much broad applications that we are not able to image previously such as TV, Smart Phone, Tablets, Notebook, PCs, Docking Stations, Protocol Adapters and Dongles Parade is VESA DisplayPort key contributor and is a leader in DisplayPort technology as well as market space. By leverage such advantages, Parade is available to provide market leading products of USB Type-C applications such as USB Type-C active switch and DisplayPort to HDMI 2.0a protocol converters USB Type-C support DP1.2 and USB 3.1 at a top speed of up to 10 Gbps USB Type-C support signal transmission at altra high speed(up to 10 Gbps) to support growing data and video content. However, the system engineers usually will facing data transmission problems due to super high-speed transmission such as jitter or signal degrade Parade is the expert on high speed products design. It has Industry s broadest high-speed interface product portfolio and high speed technologies such as equalizer, redriver and jitter cleaning. By leverage such advantages, Parade is available to provide unique, low cost and low power products for USB Type-C applications 10

11 Trend for Touch/Display Driver Integration (TDDI) Integration benefits including shorter time-to-market for customers, simplify design, reducing cost, thin panels, and improved touch experiences through synchronization Combination of display technology leader with state-of-the-art touch-sensing business positions Parade for TDDI platforms Hybrid In-Cell Solution Single-Chip TDDI Touch Data Touch Controller Touch Rx Touch Data Touch Rx Host Processor Synchronization Touch & Display Panel Host Processor TDDI Controller Pixels Touch & Display Panel Image Data DDI Pixels Touch Tx and VCOM Image Data Touch Tx and VCOM 11

12 Growth Strategies Expansion product portfolio to match mobile panel evolution and high-speed transmission High Speed/ Bandwidth SERDES Technology DisplayPort Technology Parade Low Power Equalizer/ Jitter Cleaning Technology Build up broad Tcons, source drivers, touch and high-speed I/F solutions portfolio for different mobile device applications Address products unique features by leverage our core technology and innovation Provide best integrated solution for highspeed transmission, higher resolution display, lower cost, lower power and lower EMI/RFI Customized solution for target customers Low EMI/RFI Touch Sensing Technology Low Cost Through integrate more functionalities to offer customers the ability to deliver differentiated features and user experience to their endcustomers Continue to cultivate strong relationship with strategic partners Best performance and production quality Timely deliver new technology and products 12

13 Target Markets 13

14 Parade Served Addressable Market Post acquisition of Cypress s TrueTouch business expands Parade s SAM to $5.9 billion Timing Controller High Speed Interface Source: IHS, DisplaySearch and Parade estimates. 14

15 Parade in Timing Controller Market Advance Industry s most advance products Very low power edp 1.2 v Tcon with Smart-Backlight TM feature edp 1.4b Tcon support PSR2 for lower power, lower BOM cost edp Tcon for AMOLED Panels supports edp 1.4b for Extended Battery Life Leading Leading market share position DP/eDP1.2v and edp1.3v Tcons have mass production for years and available supporting low power/higher resolution panels and mulitple Tcon to Source Driver interfaces Demand on PSR TCON in major OEM and general Notebook market increased Have majority market share in Notebook edp Tcons Secured design-wins with major OEMs Opportunity Developing solutions for smartphone panels MIPI I/F dominates tablet and smartphone market MIPI solutions for smartphone (DDI) is in design-in/win process But, competition is intensifying in edp1.2v Tcons market 15

16 Parade in Source Driver Market High Resolution/ Bandwidth Ability Notebook/Tablet Panel Move to higher resolution While edp removed the data bottleneck between the GPU and TCON, there was still a difficulty for the TCON output specially when supporting higher-resolution, COG panels Ability to support high-resolution, COG panels With our core high-speed technology and advantages of SIPI interface, SIPI source driver provide advantages over the market existing source drivers SIPI source driver will get more benefit when Notebook/ Tablet panel move to higher resolution and high bandwidth demand Status SIPI source driver start to mass production edp v1.3 TCON paired with SIPI source driver has designin/win with panel makers 16

17 Parade in High-Speed Interface Market Opportunity DP/USB/SATA/HDMI have increasing their data rates USB Tpye-C goes to 10 Gbps; HDMI 2.0 goes to 6 Gbps Strong demand for high-speed interface products to solve high-speed transmission problems Leading Market leader in USB Type-C switch and Repeaters High-Speed interface products have qualified by Tier-1 OEMs Market leader in active USB Type-C switch/with integrated PD Controller: best solution to address high-speed HDMI 2.0 repeater with Jitter cleaning: market best solution to solve design challenge of HDMI 2.0 New DP to HDMI 2.0 converters may remove jitter during the protocol conversion process Developing Developing total solutions for USB Type-C application USB Type-C switch with integrated redrivers and jitter cleaning Page 17

18 Parade in Touch Market Acquisition Acquire Cypress s TrueTouch mobile business Purchase price of $100 million, closing day at Aug. 1, employees from Cypress. Included R&D, Marketing and Sales Status Expands market position in display and touch market Own unmatched IP portfolio of hundreds of capacitive touchsensing patents Market-leading touch solutions Enables roadmap for touch and display integration Developing Developing total solutions for panel maker May simplifies the industry supply chain, significantly reducing resources required to support multitude of touch module platforms Will developing TDDI and other display/touch integrate solutions soon 18

19 Financial Results 19

20 20 Quarterly Revenue Revenue (US in millions) Q16 revenue increase 4.41% QoQ New record quarter More market demand from edp Tcons and SIPI source driver Q13 2Q13 3Q13 4Q13 Q114 Q214 Q314 Q414 Q115 Q215 Q315 Q415 Q116

21 Annual Financial Performance Net Revenue Gross Margin (US$ in millions) $205 $226 (% of Net Revenue) 42.6% 48.0% 51.4% 43.5% 41.3% 40.3% $161 $142 $51 $79 FY10 FY11 FY12 FY13 FY14 FY15 Income from Operations FY10 FY11 FY12 FY13 FY14 FY15 Net Income (US$ in millions) $51 $44 $38 (US$ in millions) $43.4 $40.5 $36.0 $26 $22.9 $18 $15.4 $9 $8.6 FY10 FY11 FY12 FY13 FY14 FY15 FY10 FY11 FY12 FY13 FY14 FY15 21

22 Key Balance Sheet Items (in USD thousands) 12/31/ /31/ /31/2015 3/31/2016 Cash and Cash Equiv alents 116, ,353 87,961 94,535 Account Receiv able 34,325 34,275 38,162 41,693 Inv entory 7,689 13,643 18,696 26,128 Total Assets 167, , , ,430 Shareholders' Equity 133, , , ,631 FY2013 FY2014 FY2015 1QFY2016 DSO Inv entory Turn

23 Quarterly Operating Performance FY 2014 FY 2015 FY 2016 in USD thousands Q1 Q2 Q3 Q4 Audited FY14 Q1 Q2 Q3 Q4 Audited FY15 Q1 Rev enue $ 44,531 $ 46,848 $ 58,979 $ 55,034 $ 205,392 $ 48,155 $ 49,304 $ 60,818 $ 67,650 $ 225,927 $ 70,631 GM % 41.49% 41.47% 41.68% 40.50% 41.28% 40.33% 41.26% 40.00% 40.01% 40.35% 41.14% OpEx $ 9,061 $ 9,779 $ 11,062 $ 11,237 $ 41,139 $ 10,389 $ 10,741 $ 15,015 $ 16,909 $ 53,054 $ 17,288 Net Income EPS- Basic (in Dollar) $ 8,510 $ 9,228 $ 12,722 $ 10,006 $ 40,466 $ 8,098 $ 8,777 $ 10,039 $ 9,119 $ 36,033 $ 10,789 $ 0.11 $ 0.13 $ 0.17 $ 0.13 $ 0.54 $ 0.11 $ 0.12 $ 0.13 $ 0.12 $ 0.48 $ 0.14 Note : 1. The above financials of FY 2014 and FY 2015 have been audited by independent accountants. 2. The above financials of Q1of FY 2016 have been reviewed by independent accountants. 3. EPS-Basic of FY 2014 and FY2015 have taken into consideration of the distribution of stock dividends. 23

24 24 Business Outlook Based on current business outlook, Parade is providing the following guidance for the second quarter of fiscal 2016: Revenue: US$66-72 Million Gross margin: 40%-43% Operating expenses: US$ Million

25 Investment Highlights L E T Leading Position in Fast Growing DisplayPort and High- Speed Interface Markets Leading expertise in DisplayPort technology and highspeed digital interface transmission Technology leader for next-generation display-touch integration solutions Own unmatched IP portfolio of hundreds of capacitive touch-sensing patents Strategic Collaborations with Leading CPU/GPU vendor and Tier-1 Global Brand End-Customers Focus on Driving Future Growth and Profitability 25

26 Thank You 26