Inphi Moves Big Data Faster

Transcription

1 Inphi Moves Big Data Faster Inphi Corporate Update October 31, 2017

2 Safe Harbor Summary This presentation is neither an offer to sell nor a solicitation of an offer to buy any of these securities and shall not constitute an offer, solicitation, or sale in any jurisdiction in which such offer, solicitation, or sale is unlawful. The notes and the shares of Inphi Corporation common stock issuable upon conversion of the notes, if any, will not be registered under the Securities Act of 1933, as amended (the Act ) or any state securities laws, and unless so registered, may not be offered or sold in the United States except pursuant to an exemption from the registration requirements of the Act and applicable state laws. Any purchaser of such securities will be deemed to have made certain representations and acknowledgments, including, without limitation, that the purchaser is a qualified institutional buyer as defined in Rule 144A under the Act. This presentation includes forward-looking statements relating to matters that are not historical facts, including, without limitation, statements regarding the Company s Financial Results and Business Outlook, Inphi s short and long term growth strategies, trends in IP traffic and technology adoption, the future sizes and anticipated growth of the networking infrastructure, cloud computing and data center markets, including geographic and market segment outlooks. In some cases, such forward-looking statements are identified by words such as anticipate, believe, plan, estimate, expect, strive, future, intend and similar expressions. Although Inphi s management believes that the expectations reflected in the forward-looking statements are reasonable, such statements involve known and unknown risks, uncertainties and other factors that may cause Inphi s actual results to be different from any future results expressed or implied by these statements, including the risks and uncertainties described in the preliminary offering memorandum relating to the proposed offering report, and other filings with the U.S. Securities and Exchange Commission made from time to time. We caution you that no forward-looking statement is a guarantee of future performance, and you should not place undue reliance on these forward-looking statements which reflect the view of Inphi s management only as of the date of this presentation. We assume no obligation to, and expressly disclaim any obligation to, update any forward-looking statements contained in this presentation as a result of new information or future events or developments. In addition to U.S. GAAP financials, this presentation includes certain non-gaap financial measures. These non-gaap financial measures are in addition to, and not a substitute for or superior to, measures of financial performance prepared in accordance with U.S. GAAP. See the Appendix for a reconciliation between each non-gaap measure and the most comparable U.S. GAAP measure. 2

3 Inphi Leads in Optical and Networking Physical Layer Focus on high-speed data movement interconnects Serve cloud, enterprise and service provider markets Non-GAAP Revenue ($M)* Differentiate with broadband linear amplification and higher modulation opto-electronic solutions $193 $266 $263 Core competence in high-speed analog, DSP and optics $35 $43 $ patents: high-speed analog and package design YTD Q3'17 Invest for growth with 75% engineering Notes: Company data per human resources & legal reports 9/2017 and finance reports 10/31/2017 *Pro-forma, Non-GAAP revenue and EPS adjusted for continued operations of the sale of the memory business 3

4 Inphi Global Locations Support Customers and Attract Talent Worldwide Offices in North America, Asia-Pacific, Europe Inphi HQ: Santa Clara, CA Design Centers USA: Irvine, Santa Clara, Westlake Village Canada: Ottawa, Vancouver Argentina: Cordoba United Kingdom: Northampton Europe: Hanover Asia-Pacific: Singapore Sales & Support USA: Austin, Chicago, Folsom, Kansas City, Raleigh Santa Clara, Westlake Village Europe: Milan, Munich Asia-Pacific: Beijing, Hsin-Chu, Shanghai, Shenzhen, Wuhan, Tokyo Operations USA: Santa Clara, Westlake Village Asia-Pacific: Malaysia, Singapore, Taiwan 4

5 Data and Traffic Are Growing Exponentially Trends, Dec Cloud Services 44% Cisco Global Cloud Index 107% Cisco IoT White Paper IoT Data and Traffic Explosion Smartphone Users 23% Nokono Video 33% Cisco Visual Networking Index Big Data 23% IDC e-commerce 10% IDC Social 12% emarketer Notes 1. Smartphone users as of CAGR calculated from , for sources refer the references section 3. Social Media users CAGR estimate 5

6 New Trends Fuel Further Data and Traffic Growth New End User Trends, Oct Secure Cloud Autonomous Vehicles Data and Traffic Explosion 5G Wireless New Media Mixed, Virtual, Augmented Reality Chatbots Artificial Intelligence 6

7 Inphi Solves Data Movement Between & Inside Data Centers The Data Center is the Computer Cloud Hardware and Software Layer Aggregation Network Inside DC 500m-2km The Cloud is the Network Connecting Data Centers DCI Long Haul >600km DCI Metro 100km-600km DCI Edge 2km-100km Cloud Hardware and Software Layer Aggregation Network The Data Center is the Computer 7

8 Inphi Leads in Data Movement Interconnects Data Manipulation Data Movement Processor, GPU, NIC, Switch Optical, Networking Digital Analog, Mixed Signal, DSP 8

9 Inphi Leads in Data Movement Interconnects Long Haul / Metro Data Movement Around the Globe Between Data Centers Data Movement Between Data Centers Inside Data Centers Data Movement Inside Data Centers Optical Amplifier Optical Driver Coherent DWDM DSP Silicon Optical Module CDR/PHY Gearbox PAM Photonics Reference Design 9

10 Large Total Addressable Market (TAM) Long Haul / Metro Between Data Centers Inside Data Centers 90 Million 10G/40G/100G Ports Service Providers Data Centers Cloud Enterprise $3 Billion Interconnect TAM in 2019 Note: 2016 data from Cignal AI, Crehan Research, LightCounting, HIS and Inphi Estimates 10

11 Provide Complete Component Solution for Optical Platform Long Haul / Metro Partner Optics SiPho Data Center Partner Optics TiA TiA Driver Driver High Performance Coherent DSP Low Power PAM DSP Inphi * Partners 11

12 Building an Annuity Infrastructure Business Transimpedence Amplifier (TiA) Optical PHY: Gearbox, CDR, PAM Driver COLORZ Coherent DSP

13 Data Movement Interconnect Market Has Multiple Growth Vectors Ahead China Telecom Operator North America Telecom Operator Cloud, MSDCs Enterprise Data Centers 2016 National Backbone, 100G Client CFP 100G Long Haul, 100G Client CFP2 100G Inside DC 2017 Provincial Tier 2/3 Cities, 100G CFP2-DCO 200G Metro COLORZ, 100G Between DC 40G G Metro, 5G Wireless 400G LH/Metro/Client 200/400G, Inside, Between DC 100G 13

14 Inphi Strong Leadership from Comms/Optical Ford Tamer John Edmunds Loi Nguyen Oscar Agazzi Sudeep Bhoja Radha Nagarajan Charlie Roach Siddharth Sheth Ron Torten Lawrence Tse Nariman Yousefi President and CEO SVP, CFO Founder, SVP, Optical Interconnect VP Engineering, Coherent DSP CTO, Networking Interconnect CTO, Optical Interconnect SVP, Worldwide Sales SVP, Networking Interconnect SVP, Operations and IT SVP, Engineering SVP, Coherent DSP 14

15 Inphi Recognized for Excellence Cisco Excellence in Emerging New Technology Emerging 2017 Technology Supplier 2015 Huawei Best Quality Company 2015 FiberHome Core Partner 2015 Fujitsu Technical Advancement 2017 Sumitomo Awards of Excellence Sumitomo Electronics Device Innovation (SEDI) Best Partner Awards NeoPhotonics Supplier of the Year GbE PAM 4 Platform LightWave Innovation Awards 2017 COLORZ 2016 PAM Quad Linear Driver ECN Impact Awards 2017 COLORZ 2016 PAM4 GSA Needham Favorite Semiconductor Company 2015 Deloitte Fast 500 Technology Company

16 Innovation Drives Customer Success G Differential Driver Modulator Driver + 40G TIA G Coherent TIA + 28 Gbps Differential Modulator Driver G CMOS SERDES + 32G Linear Modulator Driver 2015 Smallest Form Factor + SMT Linear Driver + PAM G Linear Modulator Driver + 45G Coherent TIA + PAM 2016 COLORZ for 80km DWDM + SiPho Platform for 100G Data Center + Shipped 1M 100G Coherent Amplifiers & Drivers + 64G Coherent TIA + Lowest Power CDR + 400G CFP8 Platform (28nm PAM DSP / Driver / TIA) G Coherent Driver + 28G EML Linear Driver + Polaris TM Platform (16nm PAM DSP / Driver / TiA) + Low power Coherent DSP for Metro and Long Haul + COLORZ-Lite for Campus & Data Center Interconnects + Vega TM DSP 16nm Retimer & Gearbox for LineCards 16

17 Long Haul / Metro: The Cloud is the Network TM

18 100G/200G Adoption is Accelerating in Long Haul & Metro % CAGR September G & 200G Long Haul & Metro Coherent Ports (KU Ports) Source: Cignal AI and Company Estimates September

19 Inphi Leads Transition from Limiting to Linear 10G 40G 100G 200G 400G 1T TIA Limiting Linear Driver Limiting Linear 100% 80% 60% 40% Estimated market share of Linear Drivers for 100G 1T 20% Limiting 0%

20 Industry Leading Linear Coherent Solutions 100G/200G 400G/600G 32GBaud Linear Driver 45/64GBaud Linear Driver Most Tier 1 OEMs use Inphi TiAs and Drivers Inphi regarded as gold standard for quality Inphi is first to market with next generation 64G linear amplifier and driver solutions 32GBaud Linear Amplifier Next-Gen 45/64GBaud Linear Amplifier 20

21 2.7M Coherent Units Shipped > All Competitors Combined Cumulative Shipments (M Units) 3.0 Industry Smallest SMT 100G Linear Driver 2.0 Industry First 100G Linear Driver 1.0 Industry First 100G Linear Amplifier

22 Growing Optical Interconnects Between Data Centers Ports grow 20%, led by CFP-DCO Enter Metro Take share with Linear Ramp new 45 and 64 Gbaud products Grow with both module and line card customers Support partner products: SiPho, CFP DCO, CFP2 ACO Ramp new modulations: 16QAM and 64QAM 22

23 Between Data Centers: Coherent DSP Solutions

24 Complete Platform to Enable Customer Success High Performance Best Quality Low Power Optical Platform Fast Time-to-market Coherent DSP Optical PHY SiPho or Partner Optics Driver TiA Competitive Cost Dedicated Customer Support Long Reach Note: 1. Wireless subscriptions and social media users are as of CAGR calculated from , for sources refer the references section 24

25 M200 is Ramping to Production Highest performance 16nm SoC 100G & 200G Enables CFP DCO CFP2 DCO Line cards Low power technology Framer & Encryption Integrated 25

26 Inphi Supports Discrete, DCO and ACO Customers Line Card - Discrete DCO modules ACO modules Driver Modulator Driver Modulator Driver Modulator DSP Laser TIA Hybrid Optics DSP Laser TIA Hybrid Optics DSP Laser TIA Hybrid Optics DSP Driver Laser TIA Modulator Hybrid Optics DSP Driver Laser TIA Modulator Hybrid Optics DSP Driver Laser TIA Modulator Hybrid Optics Comprehensive product offering: Coherent DSP Inphi TiA Driver 26

27 Inphi Has Full End-to-End Capability for Customer Success: High-Speed Analog, DSP, Layout, Firmware, Software Architecture, IP & Chip Design State of the art analog Innovative DSP/FEC technology World Class IC / backend System Support Firmware/Software Quality evaluation boards Advanced Optical lab Manufacturing Direct relationship with fab, assembly, test partners In house production test capability 27

28 Between Data Centers: DCI Edge Solutions

29 Data Center Moving Towards Distributed Architecture Next-gen data centers build out is happening in metro Distributed data center enables virtual mega data centers to be built in metro where space and power are limited Major architectural shift in connecting distributed data centers with cost effective, low power 100G DWDM solutions Mega Data Center Global Distributed Data Center Metro 29

30 ColorZ Delivers 100G QSFP28 for 80km Data Center Interconnect The Data Center is the Computer Cloud Hardware and Software Layer Aggregation Network The Cloud is the Network Connecting Data Centers 100Gb/s 80km 4.5W Cloud Hardware and Software Layer Aggregation Network The Data Center is the Computer 30

31 COLORZ Delivers Complete Solution for Time-to-Market SiPho Optics Linear TiA, Driver PAM: DSP, ADC Validated Design 100G, QSFP28, 80km Lower Power Lower Cost 100G Speed 31

32 ECOC 2017 ColorZ-Lite Live Demonstration DWDM Campus Connectivity 20km 20km 32 Inphi COLORZ-Lite DWDM PAM4 QSFP28 100GbE Transceivers Featuring 3.2T of aggregate East-West Traffic between 100GbE Switches across 20km of fiber via II-VI Cost Optimized Open Line System 32

33 ColorZ-Lite Delivers Compelling Values for Campus Solve your 10-20km campus connectivity fiber exhaust challenges by using DWDM 100G ColorZ-Lite 100G Switch Mux Amplifier Demux 100G Switch 20km Fiber DWDM QSFP28 DWDM QSFP28 Lowest cost solutions to connect buildings within a campus due to fiber exhaust Lowest cost solutions to connect buildings within a campus in regions with high fiber rental cost 33

34 ColorZ Eco-System Open Line System (OLS) Partners Switch/Router Partners ColorZ and Confidential 34 34

35 Inside Data Centers: The Data Center is the Computer TM

36 Fiber PHY Growing Rapidly in Data Center, SMF Source: High Speed Ethernet Optics, LightCounting, October,

37 Fiber PHY Growing Rapidly in Data Center, MMF Source: High Speed Ethernet Optics, LightCounting, October,

38 Data Center Transition to Fiber, DAC PHYs Fiber / DAC BASE-T 1G 10G 25G 40G 50G 100G 400G 100% Estimated Capture Rate by Fiber/DAC into BASE-T PHY Share BASE-T PHY 0% Source: Inphi Estimates, Crehan Research,

39 Distances, Speeds Drive Optics/Electrical Transition Mega Data Center 500m-2km distances Source: Corning Longer Distances = Single Mode Fiber Cost Effective DSP-based PAM Optical Interconnects 39

40 Industry Leading NRZ and PAM Optical PHY Solutions Enterprise Service Provider Data Center Server Line Card CFP CFP2/8 QSFP SFP OSFP and QSFP-DD nx10g PHY 100G Gearbox nx25g CDR nx50g PAM nx100g PAM 40

41 Roadmap to Lower Cost, Higher Density Router 2012 CFP 12W-24W 2014 CFP2 12W-14W 2015 onwards QSFP 3.5W CFP8 QSFP DD PAM4 OSFP 400G Inflection Switch PAM4 400G Inflection 2015 onwards QSFP 3.5W QSFP DD OSFP Server 2012 N x 10G SFP 2015 N x 10/25G SFP Enterprise Server SOC Inflection Higher Density Lower Power Lower Cost 41

42 Growing Networking Interconnects Inside Data Centers and for Service Providers Ports grow 35% for 10G/40G, 300% for 100G Ramp 10G/40G in servers with Broadwell & Skylake generation 50/200/400 PAM4 growth driven by introduction of PAM4 based switches Grow 100G NRZ CDR/TiA/Driver for QSFP28 Address both single- and multi-mode fiber Partner with VCSEL, DML, EML and SiPho optics 42

43 Thank You