Spreadtrum Communications, Inc.

Transcription

1 Spreadtrum Communications, Inc. Technology for the Mobile World b 2012 Second Quarter Results China United States Korea India Taiwan 1

2 Safe Harbor Statement This presentation contains forward-looking statements that involve risks and uncertainties. All statements other than statements of historical facts are forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from those expressed or implied by the forwardlooking statements. Please see the information contained in Spreadtrum's filings with the U.S. Securities and Exchange Commission (the "SEC"), including the registration statement on Form 20-F filed on April 10, 2012,especially the sections under "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations," and such other documents that Spreadtrum may file with the SEC from time to time, including on Form 6-K. Spreadtrum assumes no obligation to update any forwardlooking statements, which apply only as of the date of this presentation. 2

3 2Q12 Results 2Q 2012 Guidance 2Q2012 Actual Revenue US$170 $175 million US$173.1 million Gross Margin ~37% 37.1% 2Q12 Highlights Shipped 1 million+ 1GHz Android smartphone chipsets (TD- SCDMA & EDGE). Spreadtrum s best-in-class TD-SCDMA baseband modem shipping in flagship handsets Samsung GALAXY S III, HTC One XT & others from first tier China OEMs. Spreadtrum s 40nm 2.5G baseband well received by customers and increasing in volume. 3

4 Strong Ramp in Smartphone Chipsets Q-o-Q Y-o-Y 3G Sales Volume -28.1%* +22.5% 3G ASP -2.8% -21.0% Smartphone chipsets Highlights Spreadtrum-based smartphones launched by Huawei, Lenovo, Haier, Hisense and others. Many targeting new RMB retail segment. 1M+ smartphone chips (1GHz TD-SCDMA & EDGE) shipped in Q2. Raising Q3 smartphone product shipment expectations to 10M+. TD-SCDMA baseband modem Expanded global OEM customers with Spreadtrum s modem shipping in flagship smartphones recently launched by Samsung, HTC & first tier China OEMs. * Net sales volume declined due to drop in demand for 3G feature phone products as market transitions to low-cost smartphones. 4

5 Continuing Growth in 2.5G Units Q-o-Q Y-o-Y 2G Sales Volume* +32.4% +52.1% 2G ASP* -9.5% -23.4% Highlights Growing volume in mid-range of the 2.5G market. SC6530, industry s first 40nm 2.5G baseband, well received and ramping. First tier 2.5G designs in progress. New 2.5G product with integrated connectivity expected Q4. Offers superior performance and quality at competitive cost. Will help address pricing pressure in coming quarters. * Includes 2.5G & EDGE. 5

6 2Q Financial Highlights Revenue Y-Y +8.1% Q-Q +7.5% Q Q Q Q Q USD million Revenue 6

7 2Q Financial Highlights Gross Margin Y-Y -4.9% 42.0% 41.8% 40.8% Q-Q -0.9% 38.0% 37.1% Q Q Q Q Q Gross Margin 7

8 2Q Financial Highlights Operating Expenses ($ and % of revenue) Y-Y +22.4% Q-Q +15.2% % % % % % SG&A 16.7% 15.6% 19.6% 17.6% 19.3% R&D USD million Q Q Q Q Q Operating Expenses R&D SG&A Operating expenses increased in 2Q due to higher R&D expenses related to new product development as well as non-recurring cash bonus and share-based compensation related to our WCDMA program, offset by recognized government subsidies. 8

9 2Q Financial Highlights Operating Income Y-Y -30.9% Q-Q -9.5% Q Q Q Q Q USD million Operating Income 9

10 2Q Financial Highlights Operating Margin Y-Y -7.7% Q-Q -2.6% 21.2% 21.4% 17.8% 16.1% 13.5% Q Q Q Q Q Operating Margin 10

11 2Q Financial Highlights Net Income Y-Y -35.3% Q-Q -13.6% Q Q Q Q Q USD million Net Income 11

12 2Q Financial Highlights Inventory Q-Q -5.6% Q-Q +56.3% Q-Q -66.1% Q Q Q Q Q Q Q Q Q Inventory Days (excludes Deferred Cost) Inventory USD million Deferred Cost* Built inventory to meet demand for new 2.5G & smartphone products Bringing down deferred cost balance with phasing out of customer acceptance program * Reflects portion of inventory where products have shipped to customers but revenue has not yet been recognized due to pending customer acceptance. 12

13 2Q Financial Highlights Cash Balance Y-Y -36.5% Q-Q -30.6% Q Q Q Q Q Cash Balance* USD million * Cash and cash equivalents and short-term and long-term deposits, excluding restricted cash. 13

14 2Q Financial Highlights GAAP EPS Diluted Y-Y -31.7% Q-Q -12.8% Q Q Q Q Q USD GAAP EPS Diluted 14

15 2Q Financial Highlights Non-GAAP EPS Diluted Y-Y -10.8% Q-Q +1.8% Q Q Q Q Q USD Non-GAAP EPS Diluted 15

16 Cash Dividend Quarterly Cash Dividend Declared fifth quarterly cash dividend of US$0.10 per ADS, distributed on July 25, USD Q Q Q Q Q Cash Dividend 16

17 Smartphone Platform Roadmap: Expanding to More Standards, Higher-end Specs SC8810/ SC6820 SC7710 SC88xx/ SC68xx SC77xx SCxxxx Core Single-core Dual-core Quad-core Availability 2Q12 4Q12 2H12 1Q13 1Q13 Modem TD-SCDMA / EDGE HSPA+ 21Mbps TD-SCDMA / EDGE HSPA+ HSPA+/ TD-SCDMA / TD+UMTS Processor Cortex A5 Cortex A5 Cortex A7 Cortex A7 Speed 1GHz / 1.2GHz (Q3) 1GHz 1.2GHz 1.5GHz 1.5GHz Connectivity External Integrated Integrated 17

18 2012/1Q13 Roadmap Key Products Product Segment 2H12 1Q13 2.5G SC G BB/RF + BT/FM EDGE TD-SCDMA 1.2GHz Dual-core Cortex A5 (TD, EDGE) SC68xx SC88xx 1.5GHz Quad-core Cortex A7 (TD, HSPA+, Multimode) SCxxxx WCDMA / HSPA+ SC7702 HSPA+ 21Mbps modem 1GHz Cortex A5 SC GHz Dual-core Cortex A7 SC77xx Feature phone/ modem Smartphone platform 18

19 3Q 2012 Guidance Revenue Key Factors 3Q 2012 Guidance US$178 million US$186 million Gross Margin ~37.1% (flat relative to Q2) More than 10M+ units of 1GHz smartphone products Continuing growth in 2.5G, especially in midrange Margin stabilized with increased product mix in smartphones Growth moderated by drop in 3G feature phone demand due to 3G market shift to smartphones. 2.5G growth constrained by shortage in some handset components. 19

20 Thanks Technology for the Mobile World China United States Korea India Taiwan 20