Arcadyan Technology Corp. (3596.TW) Company Profile. September 9, 2010

Transcription

1 Arcadyan Technology Corp. (3596.TW) Company Profile September 9, 2010

2 Agenda 1 Welcome & Introduction 1H10 Financial Results Market Trend & Strategy Q & A

3 Safe Harbor Notice 2 This presentation may contain forward-looking statements and is subject to significant risks and uncertainties. Actual results may differ materially from those contained in the forward-looking statements.

4 About Arcadyan About Arcadyan 3 Established in summer of 2003 A subsidiary of Compal Electronics ( Brings the best of: Quad-Play solution wireless infrastructure expertise optimized Mfg/SCM with economy of scale Headquarter in Hsinchu, Taiwan Employee: 4400 worldwide (270 R&D) 2008 sales revenue: US$337M 2009 sales revenue: US$348M H sales revenue: US$256M Year-08 Year-09 Year-10 1H Rev Qty Arcadyan Technology Corporation

5 Arcadyan Production Site 4 Arcadyan building( CNC) 23,185m 2 shop floor 4000 employees on-site Capacity : over 3M units/month ISO9001 / TL9001 / ISO14001 / OHSAS certified

6 Targeted Market Segment 5 ADSL, VDSL, IAD, GPON, Femtocell AP/Gateway WiFi Client GPON IAD DECT IAD (ADSL) IP STB 3G/LTE IAD VDSL/ADSL IAD Femtocell AP VDSL/ADSL IAD with PBX functions 3x3 11n Router with USB applications 3G/LTE Router 11n dual band concurrent router with USB applications Combo card (bluetooth + 11n) mini-pci / mini card (11n/11g single/dual band) VDSL/ADSL Modem Cable modem ISP Solutions VDSL/ADSL Router 11n/11g Router Retail Networking Antenna (11n/11g single/dual band) PC & Consumer Arcadyan Proprietary & Confidential

7 Business overview Broadband AP/GW Client 12% 2009 Broadband AP/GW Client 13% H Broadband AP/GW Client 17% 18% 70% 18% 69% 25% 58% Rev: US$337M Qty: 11M Rev: US$348M Qty: 19M Rev: US$256M Qty: 24M Steady growth in broadband market USB applications as main driver for retail router market growth Increasing WiFi bundle rate on TV and Blu-ray players Arcadyan Technology Corporation

8 1H10 Financial Results 7

9 2Q10 Income Statements_nonconsolidated 8 NT$ Million 2Q10 1Q10 2Q09 QoQ % YoY % AMT % AMT % AMT % Change Change Net Sales 4, , , % 64.1% Cost of Goods Sold 3, , , % 67.7% Gross Profit % 42.2% Operating Exp % 17.6% Operating Income % 80.0% Net Non-operating Income (26) -0.6 (126) % % Pre-tax Income % 48.7% Income Tax % 32.6% Net Income % 54.8% EPS

10 1H10 Income Statements_nonconsolidated 9 NT$ Million 1H10 1H09 YoY % AMT % AMT % Change Net Sales 8, , % Cost of Goods Sold 7, , % Gross Profit 1, % Operating Exp % Operating Income % Net Non-operating Income (152) % Pre-tax Income % Income Tax % Net Income % EPS

11 1H10 Non-operating Income (Loss)_nonconsolidated 10 NT$ Million 2Q10 1Q10 2Q09 1H10 1H09 AMT AMT AMT AMT AMT Investment Gain (Loss) (24) (49) 64 (73) 70 FX Gain (Loss) (14) (92) (53) (106) 32 Other Total (26) (126) 13 (152) 112 Note : the amount of FX Gain (loss) included in financial instrument valuation gain (loss)

12 1H10 Income Statements_consolidated 11 Consolidated NT$ Million 2Q10 1Q10 2Q09 1H10 1H09 AMT % AMT % AMT % AMT % AMT % Net Sales 4, , , , , Cost of Goods Sold 3, , , , , Gross Profit , Operating Exp Operating Income Net Non-operating Income (12) -0.3 (53) -1.3 (41) -1.6 (65) Pre-tax Income Income Tax Net Income EPS

13 1H10 Balance Sheets_nonconsolidated 12 NT$ Million Jun. 30, 2010 Mar. 31, 2010 Dec. 31, 2009 Jun. 30, 2009 AMT % AMT % AMT % AMT % Cash/Cash equivalents AR 3, , , , Inventory 2, , , , Investment Fixed Assets Other Total Assets 7, , , , Bank loan AP 1, , , , Other Current Liabilities 1, , Long-Term and other Liabilities Total Liabilities 3, , , , Common Shares 1, , , , Shareholder's Equity 4, , , ,

14 1H10 Balance Sheets_consolidated 13 Consolidated NT$ Million Jun. 30, 2010 Mar. 31, 2010 Dec. 31, 2009 June 30, 2009 AMT % AMT % AMT % AMT % Cash/Cash equivalents A/R 3, , , , Inventory 3, , , , Fixed Assets 1, , Other Total Assets 9, , , , Bank loan 1, AP 2, , , , Other Current Liabilities 1, , , Long-Term and other Liabilities Total Liabilities 5, , , , Common Shares 1, , , , Shareholder's Equity 4, , , ,

15 Market Trend & Strategy 14

16 Broadband CPE Market Overview 15 Source: Infonetics, Q4/09 The Global broadband services continue with MSOs upgrading to Docsis3.0, while Telcom operators push fiber closer to customers with VDSL2, PON and FTTH/B. The request for the service with high bandwidth rate, mainly driven by different VASs. Arcadyan Technology Corporation

17 DSL Market Trend 16 Source: Infonetics, Q4/09 The bandwidth for new service, features and capability on High-end CPE drive the VDSL CPE market forward. Operators are constructing fiber infrastructure into their network to deliver premium service for competition, which will require upgrade to VDSL CPE Arcadyan Technology Corporation

18 Arcadyan VDSL Market Overview 17 High-end VDSL Shipping Qty Growth Rate (YoY) 200% 150% 100% 50% 0% (f) VDSL shipment will keep growth, especially on high-end models New platform will be mass-production in Q4/2010 Double the shipping Qty in 2011

19 Arcadyan UMTS/LTE Product status 18 LTE Market Challenge Technical maturity : Interoperation/fallback/New 3GPP Release. Lab/Field testing will still take a period The backbone traffic capability for annul data volume growth of 50~80% Cost effective way in developing new service/apps Arcadyan Status: ramp up large scale launch Start to co-work with selective operators on 3G router/iad developing Keep working on promoting the existing UMTS IAD/Router products before LTE service ready in Market Arcadyan LTE integrated router/iad will be ready for M.P. on 2011/H2

20 Arcadyan PC OEM Market Overview 19 Notebook PCs Shipping Qty (M units) Notebook PCs Notebook PCs Arcadyan Market Share Source: InStat 06/09 6.0% 3.0% 0.0% Arcadyan Technology Corporation

21 Arcadyan TV & Consumer Market Overview 20 DTV Shipping Qty (M units) DTV With WiFi DTV With WiFi Source: InStat 06/09 Arcadyan Shipping Qty Growth Rate (YoY) 800.0% 600.0% 400.0% 200.0% 0.0% Arcadyan Technology Corporation

22 Arcadyan AP/GW Market Overview 21 Source: Digitimes 1Q10 Arcadyan Market Share 10.0% 5.0% 0.0% Arcadyan Technology Corporation

23 Cable CPE Market Overview 22 Source: Infornetics Q4/09 By 2014, revenue will hit $3.5B, a 21% CAGR, as more expensive wideband CPE ships in volumes to replace DOCSIS CPE out in the field. In 2009, standard EMTAs accounted for 55% of overall revenue, and wideband EMTAs with 4% By 2014, standard EMTAs shrink to 11%, while wideband EMTAs account for 33% Arcadyan Shipping Qty Growth Rate(YoY) 120% 80% 40% 0% (e) 2011(e)

24 IP STB Market Overview 23 IPTV STB Shipments by Type World Market: 2008 to 2014 Shipments (Millions) Source: ABI Research /09 Basic HD-Only PVR-Only HD & PVR The STB market Crests in 2009 at nearly 164.5M units worldwide, with a gradual decline to roughly 131.9M units by 2014 (-2% CAGR). The IP STB market continue to grow from 10.4M units in 2009 to 16.2M units in 2014 (5% CAGR) Arcadyan Shipping Qty Grwoth Rate (YoY) 200% 100% 0% (e) 2011(e)

25 Femtocell Market Forecast 24 M Femtocell Market Forecast $B Femtocell Market Drivers Source: Informa Telecom, ABI Research, 2010 Global Mobile Data Traffic Rapid growth in Mobile Data Traffic and Femtocell could offer Data Offload Portable Device embedded mobile broadband as Handset, Tablet, Pad etc all require High Speed and Volume of Data Transfer. Femtocell could Off-Load the Data Traffic in Core Network System. High Speed Mobile Data Traffic Demand Increasing Variety of Mobile Content Platform as Apple Store, Android Market come out and push forward the Mobile Broadband data Traffic. Femtocell could offer the Higher guarantee Data Traffic than Macrocell. CAPEX & OPEX Saving Femtocell will be more Cost-Effective than Macrocell and Operators could save the cost on infrastructure. Source: Cisco, 2010

26 The Booming GPON ONT Market 25 ITU PON TAM forecast Infonetics 1Q10 Key Success Factors Arcadyan Has Now: Proven professional Telco CPE provider (e.g. VoIP IOP, ACS IOP, USB, WLAN, 3G/Femto integration) Guaranteed Interoperability to OLTs/GPON Head-End (Arcadyan owns 100% OMCI source codes) The most cost effective hardware platforms (Arcadyan has now BOSA, Triplexer OSA on board designs and the most integrated SoC ONT designs)

27 Arcadyan Strategy 26

28 Technology Blueprint 27

29 Summary 28 Complete CPE solutions for ISP market DSL, GPON, 3G/LTE, IP-STB, Cable modem and video distributing Continue to leverage Compal on PC OEM market Expand broadband customer base in Europe/North America/Emerging countries Gaining more market share on retail router market by creating new applications Continue to grow TV & consumer WiFi modules market share Start to ship GPON & Femtocell products in 2011

30 29 Q & A Investor@arcadyan.com