Arcadyan Technology Corporation

Transcription

1 Industry Intelligence Program Company Profile Arcadyan Technology Corporation Abstract This research presents an overview of Arcadyan Technology Corporation's development and current status, surveying the company's history, facilities, results of operation, investment profile, R&D resources and patents, and with a SWOT analysis highlighted. by Remus Hsu Document Code: Publication Date: Check out MIC on the Internet! Copyright 2013 Market Intelligence & Consulting Institute, a division of Institute for Information Industry. All rights reserved. Reproduction of this publication without prior written permission is forbidden. The content herein represents our analysis of information generally available to the public or communicated to us by knowledgeable individuals or companies, but is not guaranteed as to its accuracy or completeness.

2 Table of Contents Page 1. Company Overview Corporate Information History Facilities Results of Operation Income Statement, 4Q Q Non-Operating Statement, 4Q Q Revenue Share by Application, Investments R&D Resources & Patents R&D Expenses, R&D Employees, Number of Patents and Effective Regions, SWOT Analysis Strengths Weaknesses Opportunities Threats... 9 Appendix... 10

3 List of Figures Page Figure 1 Income Statement, 4Q Q Figure 2 Non-Operating Statement, 4Q Q Figure 3 Revenue Share by Application, Figure 4 R&D Expenses and Share of Sales, Figure 5 Employee Education Levels, Figure 6 Number of Patents and Effective Regions,

4 List of Tables Page Table 1 Corporate Information... 1 Table 2 Arcadyan's Capacity, Shipment Volume and Value, Table 3 Income Statement, 4Q Q Table 4 Non-Operating Statement, 4Q Q Table 5 Revenues Share by Application, Table 6 Business Investment Profile, 4Q Table 7 R&D Expenses, Table 8 Employee Education Levels, Table 9 Number of Patents and Effective Regions,

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6 Arcadyan Technology Corporation 1 1. Company Overview 1.1 Corporate Information Table 1 Corporate Information Company Name Arcadyan Technology Corporation Headquarters 4F, No.9, Park Avenue II, Science Park, Hsinchu, Taiwan Contact Founded 9 May 2003 Chairman Ray Chen President Hong-Yuh Lee Spokesperson Duke Lin Website Employees 495 Operating Income (NT$ Million) 15,037 Products Wireless LAN (Local Area Network) products, multimedia integrated gateways for digital home and mobile office applications, and wireless audiovisual products Note: US$1 = NT$ History 2003 Arcadyan Technology is approved to set up in the Science Park, Hsinchu, Taiwan Arcadyan accomplished corporate registration in Taiwan as a joint venture between Philips and the spin-off of Accton Technology's wireless network business unit, with an initial capital of NT$35 million. Arcadyan developed 4-in-1 product that has wireless, ADSL (Asymmetric Digital Subscriber Line), VoIP (Voice over Internet Protocol), and router functions. Arcadyan increased paid-in capital to NT$502.8 million. Arcadyan developed digital home DMA (Digital Media Adapter) Arcadyan obtained TL9000 certification. Arcadyan developed Linux-based IP-STB (Internet Protocol Set Top Box). Arcadyan developed IAD (Integrated Access Device) integrated box Arcadyan developed ISDN (Integrated Services Digital Network) + IAD.

7 Arcadyan obtained ISO and OHSAS certifications. Arcadyan reduced paid-in capital to around NT$303.5 million to pay for its losses. Arcadyan developed DECT (Digital Enhanced Cordless Telecommunications) + IAD Philips sold its stake in Arcadyan to Accton Technology. Arcadyan merged with BroadNet Technology in Taiwan, increasing its paid-in capital to around NT$383.3 million with new share issues worth NT$79.8 million. Arcadyan was awarded excellence in business innovation by Taiwan's MOEA (Ministry of Economic Affairs). Arcadyan developed n ADSL router. Accton Technology sold around 70% of its stake in Arcadyan to Compal Electronics. Arcadyan increased its paid-in capital to NT$700 million Arcadyan developed VDSL (Very High Bit-rate DSL) IAD. Arcadyan increased paid-in capital to NT$868 million through recapitalization of earnings and additional paid-in capital. Arcadyan developed UMTS (Universal Mobile Telecommunications System) routers. Arcadyan was approved by Taiwan's FSC (Financial Supervisory Commission) to launch IPO (Initial Public Offering). Arcadyan was listed in Taiwan's GTSM (Gre Tai Securities Market) as emerging stock Arcadyan developed 11n double-mode wireless transmitter capable of transmitting high-resolution videos. Arcadyan was approved to be listed in TWSE (Taiwan Stock Exchange). Arcadyan developed n video streaming products Arcadyan was officially listed in TWSE (Taiwan Stock Exchange). Arcadyan developed concurrent 11n routers. Arcadyan developed IAD with 3G connectivity.

8 Arcadyan Technology Corporation 3 Arcadyan obtained TOSHMS:2007 certification. Arcadyan's DSL-Easy Box 802 was awarded excellence in product innovation by Hsinchu Science Park, Taiwan. Arcadyan teamed up with Far Eastone in Taiwan to develop femtocell technology for business applications, funded in part by the industrial TDP (Technology Development Project) of MOEA Arcadyan developed VDSL2 IAD, GPON ONT (Gigabit Passive Optical Network Optical Network Terminal) products, OMCI (ONT Management Control Interface) software module, small cell AP (Access Point), and 3x3 11n routers. Arcadyan was awarded top 100 tech companies in Taiwan by Business Next Magazine in Taiwan Arcadyan developed IP STB, LTE (Long-Term Evolution) routers, and power line communications products. Arcadyan acquired a 53% stake in TTI (Tatung Technology Inc.) Arcadyan obtained BS :2007 and ISO/IEC 27001: 2005 certifications from AFNOR Asia Arcadyan demonstrated LTE home network application products, which are developed in cooperation with Verizon, Altair, and Lantiq, in 2013 CES (Consumer Electronics Show). 1.3 Facilities Table 2 Arcadyan's Capacity, Shipment Volume and Value, Unit: Thousand Units; NT$ Million Capacity Shipment Shipment Capacity Shipment Shipment Capacity Shipment Shipment Volume Value Volume Value Volume Value Broadband Wireless - Gateways - 12,806 12,386 10,034 10,946-8,696 11,816 Wireless LAN Products - 15,379 3,072-16,337 2,504-10,094 1,244 Others

9 1.4 Results of Operation Income Statement, 4Q Q 2013 Table 3 Income Statement, 4Q Q 2013 Unit: NT$ Million 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 Net Sales 16,164 3,854 7,776 12,841 17,384 3,519 7,086 10,621 15,037 4,130 Cost of Goods Sold 14,010 3,500 6,950 11,511 15,430 3,087 6,239 9,330 13,177 3,534 Gross Profit 2, ,331 1, ,291 1, Operating Expenses 1, , ,106 1, Operating Income Note: US$1 = NT$ Figure 1 Income Statement, 4Q Q 2013 NT$ Million Note: US$1 = NT$ Non-Operating Statement, 4Q Q 2013 Table 4 Non-Operating Statement, 4Q Q 2013 Unit: NT$ Million 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 Non-Operating Income Non-Operating Expense Net Non-Operating Income (Expenses) Note 1: US$1 = NT$ Note 2: In compliance with IFRS, the figures in 1Q 2013 are estimated values

10 Arcadyan Technology Corporation 5 Figure 2 Non-Operating Statement, 4Q Q 2013 NT$ Million Note 1: US$1 = NT$ Note 2: In compliance with IFRS, the figures in 1Q 2013 are estimated values Revenue Share by Application, Table 5 Revenues Share by Application, Broadband Wireless Gateways 87.50% 82.70% 78.70% 77.60% 79.60% Wireless LAN Products 11.50% 12.70% 17.00% 14.60% 9.50% Others 1.00% 4.60% 4.30% 7.80% 10.90% Figure 3 Revenue Share by Application,

11 1.5 Investments Table 6 Business Investment Profile, 4Q 2012 Company Location Main Business Shareholding Investor Arcadyan Technology N.A. Corp. USA Sales of wireless network products % Arcadyan Technology Corp. Arcadyan Germany Technology GmbH Germany Technological support for wireless network % Arcadyan Technology Corp. Arcadyan Holding (BVI) Corp. Topower Computer Industrial Co., Ltd. Tatung Technology Inc. Arcadyan Technology (Shanghai) Corp. Arch Holding (BVI) Corp. Sinoprime Global Inc. (BVI) Compal Broadband Networks,Inc. British Virgin Islands products General investment % Arcadyan Technology Corp. Taiwan General investment % Arcadyan Technology Corp. Taiwan China British Virgin Islands British Virgin Islands Taiwan R&D and sales of electronic and audiovisual products R&D and sales of wireless network products 57.00% Arcadyan Technology Corp % Arcadyan Holding (BVI) Corp. General investment % Arcadyan Holding (BVI) Corp. Import and Export businesses Broadband network peripherals (cable modem, STB, smartphone) % Arcadyan Holding (BVI) Corp % Topower Computer Industrial Co., Ltd. Quest International Group Co., Ltd. Samoa General investment % Tatung Technology Inc. Compal Networking(Kunshan) China Production and sales of wireless network % Arch Holding (BVI) Corp. Co.,Ltd. products Exquisite Electronic Co., Ltd. Samoa General investment % Quest International Group Co., Ltd. Tatung Home Appliances (Wu Jiang) Co., Ltd. China Manufacturing of electronic and audiovisual products % Exquisite Electronic Co., Ltd.

12 Arcadyan Technology Corporation R&D Resources & Patents R&D Expenses, Table 7 R&D Expenses, Unit: NT$ Million R&D Expenses Share of Sales 4.50% 4.80% 3.60% 4.30% 4.80% Figure 4 R&D Expenses and Share of Sales, NT$ Million Note: US$1=NT$ R&D Employees, Table 8 Employee Education Levels, PhD 1.40% 1.30% 1.40% 1.30% 1.40% Master 39.70% 41.10% 43.20% 46.20% 48.20% Bachelor/College 56.20% 54.80% 53.30% 50.70% 48.80% High School 2.70% 2.80% 2.10% 1.80% 1.60% Figure 5 Employee Education Levels,

13 1.6.3 Number of Patents and Effective Regions, Table 9 Number of Patents and Effective Regions, Taiwan United States China Figure 6 Number of Patents and Effective Regions, SWOT Analysis 2.1 Strengths 1. Partnerships with Key Telecom Operators via Business Transformations.. 2. Strong Wireless Technology Competence and Commercialization Capabilities Weaknesses 1. Difficulties in Developing Emerging Markets with OBM Business Model.. 2. Resource Integration for IP STB Development Required Opportunities 1. Fixed-line Telecoms Speed up FTTx Deployment G LTE Development Stimulating Small Cell Shipments

14 Arcadyan Technology Corporation Threats 1. Weak Economies in Key Target Markets Hinder Shipment Growth and Raise Exchange Rate Risks.. 2. Chinese Vendors' Low-price Competition Putting Taiwanese Vendors in Dilemma..

15 Appendix Research Scope The research covers the overall development of the network telecommunications equipment vendor Arcadyan Technology Corporation, including its technology, production capacity, competitiveness, company information, and a SWOT analysis. Product Definitions VoIP Router A VoIP router is a SOHO (Small Office / Home Office) router that integrates VoIP function. VoIP routers convert analog signals into digital packets for transmission and forwarding via routes dictated by the destination. They also provide NAT (Network Address Translation) and DHCP (Dynamic Host Configuration Protocol) routing functions, along with IP sharing to enable several PCs in the same home to share an IP address. Product Technology Definitions DSL DSL (Digital Subscriber Line) products are COE and CPE that transmit IP packets via twisted-pair copper cables using DSL technologies. Such products include ADSL (Asymmetric Digital Subscriber Line), VDSL (Very-high data rate Digital Subscriber Line), and G.shdsl devices. ADSL ADSL (Asymmetric Digital Subscriber Line) is a broadband technology using DMT (Discrete Multi-Tone) modulation to provide both data and PSTN (Public Switched Telephone Network) voice services. ITU has developed G ADSL, G ADSL G.lite, G ADSL2, and G ADSL2+ to improve ADSL bandwidth and coverage. ADSL2+ uses frequencies up to 2.2MHz with a maximum downstream speed of 24 Mbps. VDSL VDSL (Very-high data rate Digital Subscriber Line) uses DMT or QAM (Quadrature Amplitude Modulation). It supports frequencies up to 12 MHz and a speed up to 100Mbps for downloads. Business Type Definitions ODM

16 Arcadyan Technology Corporation 11 ODM (Original Design Manufacturing) entails collaborative product design between manufacturer and customer, or product design autonomously undertaken by the manufacturer within parameters established by the customer. Following customer verification and order placement, the manufacturer proceeds with production and assembly. The manufacturer does not participate in customer activities related to product conception, branding, sales, or logistics. OEM OEM (Original Equipment Manufacturing) entails production and assembly within customer-specified parameters and according to product specifications designated by the customer. The manufacturer does not participate in customer activities related to product conception, branding, sales, or logistics.

17 For more information Service Hotline Fax Address Web Address Copyright 2013 Market Intelligence & Consulting Institute, a division of Institute for Information Industry. All rights reserved. Reproduction of this publication without prior written permission is forbidden. The content herein represents our analysis of information generally available to the public or communicated to us by knowledgeable individuals or companies, but is not guaranteed as to its accuracy or completeness.