Arcadyan Technology Corp.

Transcription

1 Arcadyan Technology Corp. (3596.TW) Company Profile HY Lee CEO Jan. 12, 2010

2 About Arcadyan About Arcadyan 1 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: 3000 worldwide (270 R&D) 2007 sales revenue: US$295M 2008 sales revenue: US$337M 2009 sales forecast: US$348M Arcadyan Technology Corporation

3 Arcadyan Production Site 2 Main Gate Arcadyan building( CNC) Plant Lobby 23,185m2 shop floor 3,100 employees on-site Capacity : 2.5M units IAD / monthly Additional 30% capacity expansion by Jan 10 ISO9001 / TL9001 / ISO14001 / OHSAS certified Presentation Title Prosperity Version

4 Digital Home and Fixed Mobile Convergence 3 Unified ID Arcadyan Technology Corporation

5 Targeted Market Segment 4 Product Line ADSL, VDSL, IAD AP/Gateway, Client Client Module Innovation WiFi (11n/g) VDSL/ADSL IAD with PBX functions WiFi (11n/g) DECT IAD (ADSL) Media Converter (11n dual band) Combo card (WiMAX + 11n) Advanced WiFi (11n/g) VDSL/ADSL IAD WiFi (11n/g) VDSL/ADSL 11n/11g Router mini-pci / mini card (11n/11g single/dual band) Simplicity Router VDSL/ADSL Modem 11n/11g Clients Antenna (11n/11g single/dual band) ISP Solutions Retail Line PC OEM Arcadyan Technology Corporation Arcadyan Proprietary & Confidential

6 Business overview 5 Steady Growth Market share target: Top 3 in worldwide market Arcadyan Technology Corporation

7 Market Share of Taiwan AP/Router ODMs 6 Top 4 Non-top 4 Top 2 出貨排名 2Q 08 3Q 08 4Q 08 1Q 09 2Q 09 3Q 09(e) 6 1 Foxconn Foxconn Foxconn Foxconn Arcadyan Arcadyan 2 Sercom Sercom Cybertan Cybertan Gemtek Foxconn 3 Cybertan Cybertan Arcadyan Sercom Cybertan Gemtek 4 Arcadyan Arcadyan Sercom Arcadyan Foxconn Cybertan Source: DIGITIMES (Dec. 2009)

8 3Q09 Income Statements_nonconsolidated 7 NT$ Million 3Q09 2Q09 3Q08 QoQ % YoY % AMT % AMT % AMT % Change Change Net Sales 3, , , % 43.8% Cost of Goods Sold 3, , , % 50.7% Gross Profit % 11.0% Operating Exp % -3.9% Operating Income % 35.2% Net Non-operating Income % 8.7% Pre-tax Income % 31.9% Income Tax % 43.3% Net Income % 29.6% EPS (NT Dollars)

9 1~3Q09 Income Statements_nonconsolidated 8 NT$ Million 1~3Q09 1~3Q08 YoY % AMT % AMT % Change Net Sales 7, , % Cost of Goods Sold 6, , % Gross Profit 1, , % Operating Exp % Operating Income % Net Non-operating Income % Pre-tax Income % Income Tax % Net Income % EPS (NT Dollars)

10 1~3Q09 Income Statements_consolidated 9 NT$ Million 1~3Q09 1~3Q08 YoY % AMT % AMT % Change Net Sales 7, , % Cost of Goods Sold 6, , % Gross Profit 1, , % Operating Exp % Operating Income % Net Non-operating Income % Pre-tax Income % Income Tax % Net Income % EPS (NT Dollars)

11 3Q09 Balance Sheets_nonconsolidated 10 NT$ Million Sep. 30, 2009 June 30, 2009 Sep. 30, 2008 AMT % AMT % AMT % Cash/Cash equivalents , A/R 2, , , Inventory 1, , , Investment Fixed Assets Other Total Assets 6, , , Current Liabilities 3, , , Long-Term and other Liabilities Total Liabilities 3, , , Common Shares 1, , Shareholder's Equity 3, , ,

12 3Q09 Balance Sheets_consolidated 11 NT$ Million Sep. 30, 2009 June 30, 2009 Sep. 30, 2008 AMT % AMT % AMT % Cash/Cash equivalents , A/R 3, , , Inventory 2, , , Fixed Assets Other Total Assets 7, , , Current Liabilities 3, , , Long-Term and other Liabilities Total Liabilities 4, , , Common Shares 1, , Shareholder's Equity 3, , ,

13 Broadband CPE Market Overview Broadband CPE Worldwide Annual Market Size and Forecast (Units, Revenue) $8,000 $7,000 Units (M) $6,000 $5,000 $4,000 $3,000 Revenue (US $M) 40 $2, $1,000 0 CY08 CY09 CY10 CY11 CY12 CY13 VTAs Digital home gateways Cable CPE DSL CPE Revenue $0 Source: Infonetics, Q4/08 The request for the service with high bandwidth rate, mainly driven by different VASs IPTV, VOD,PAY-TV, Music/Video download, Online game, VoIP, Video phone Others: File sharing, Web Hosting The digital home gateways keep on growing Designed for triple play deployments with b/g/n support, security features, IPSec, 802.1x network, IGMP Proxy and snooping for IPTV and VoIP Arcadyan Technology Corporation

14 European DSL Market Outlook 13 France Germany U.K. Source: OVUM, 08 The DSL Market keep going up in most of the countries on next years : Drivers CPE upgrade for creating better environment for VAS and new application CPE upgrade for Integrating the Wi-Fi capability in emerging country CPE upgrade from Wi-Fi 11b/g to 11n Users experience and improved understanding will increase the demand for Triple or even quadruple play services Arcadyan Technology Corporation

15 VDSL Market Trend DSL CPE Market Size and Forecast (Units, Revenue) $3,500 Units (M) $3,000 $2,500 $2,000 $1,500 $1,000 $500 Revenue (US $M) 0 CY08 CY09 CY10 CY11 CY12 CY13 G.SHDSL VDSL ADSL Revenue $0 Source: Infonetics, Q4/08 Key Drivers for VDSL service IPTV Service DOSCIS 3.0 Availability VDSL will have similar cost structure as ADSL Arcadyan Technology Corporation

16 Mobile PCs Market Overview 15 Embedded WLAN Chipsets for Mobile PCs (Units K) 400, , , , , , ,000 50, Mobile Internet Devices Ultra Mobile PCs Netbooks Notebook PCs Source: In-Stat, 9/08 In general, the CAGR growth rate(2008 to 2013): Notebook PCs is 11.5%, Netbooks is 99%, Ultra Mobile PC is 38.1% and MID is 209.5%. 100% 80% 60% 40% 20% Embedded WLAN for Mobile PC by Technology 11n 11a/g 11g The single-stream n solutions will be a viable option for PC OEMs to use in designs for lower-priced devices staring in % Source: In-Stat, 9/ % 0.0% 0.66% e Arcadyan PC OEM market share Arcadyan Technology Corporation

17 CE with WiFi Market Overview , , , ,000 80,000 60,000 40,000 20,000 0 Statiionary CE with WiFi (Units in K) Blue-ray Players/Recorders Media Adapter STBs DTVs Printers Game Consoles Source: In-Stat, 9/08 In early 2009, almost dozen stationary CE devices with embedded WiFi were announced or released by major CE vendors. Net TV was launched in April 2009 for select markets including the UK, Germany, and the Netherlands. Arcadyan has major wins on DTV, and Blue-ray Players in 2009, will have large shipping volume in A new segment of devices, called over-the-top, are included in the media adapters/players/receiver s category. (Apple TV, Netflix player, VUDU box and so on) Arcadyan Technology Corporation

18 WiFi Home Router Market Overview Home WLAN APs Home WLAN Gateways Home WLAN Routers Source: In-Stat, 9/ % 8.06% 13.99% 17.2% (e) Arcadyan Home Router market share Arcadyan Technology Corporation

19 IP STB Market Forecast 18 IP STB Market Drivers Rapid growth in quantity and diversity of TV programming Consumers demanding more channels, timely and pertinent info Growth and demand for interactive and enhanced services PVR, VoD, 3-D gaming, PPV, VoIP, Internet Subscribers (M) Global IPTV Subscribers Forecast Telco IPTV Subscribers by Region 3,6 60 2,1 9,1 CALA 28,3 1, 7,5 40 North America 21,7 5,7 0 EMEA 0,5 15,6 20 3,8 30,9 Asia Pacific 10,2 22,9 5,4 15,1 00,5 0,8 2,5 4,8 9,2 CY04 CY05 CY06 CY07 CY08 CY09 CY10 CY11 Calendar Year HD popularity growth Consumers demanding higher picture quality; Bluray Disc on rise STB functionality integration into digital TVs Infrastructure is Upgrading (FTTx based)

20 Technology Competence 19 Leading Technology Integration Prominent Antenna Design Integration of various technology: Remote management, QoS for VoIP and IPTV, Anti-virus, Content sharing, ISDN,DECT Field-proven Software Platform Core Homegrown external/internal antenna design. 34 granted patents globally. Shortest Development Cycle Field-proven modular/reusable software components design on multiple OSes (Linux, Supertask) 3 months development for low end routers 5 months development for high end routers Arcadyan Technology Corporation

21 Core Competence 20 ODM,JDM ODM,JDM & EMS EMS Synergy Synergy Quality Quality & Flexibility Flexibility Design Concept Technology Technology Integration Integration Easy Easy Installation Installation Reduced Reduced Support Support Effort Effort Manufacturing Core Competence Homegrown Homegrown field field proven proven Software Software & Antenna Antenna Chipset Chipset Vendor Vendor Alliance Alliance Technology Business Development Telecom Telecom Market Market Experience Experience Proactive Proactive Technology Technology Roadmap Roadmap Time Time to to Market Market

22 Strategies for future growth 21 FMC Wireless HD/G.hn GPON New Technology New Market Fiber Optical Operators Mobile Operators Emerging markets (BRIC, VISTA) New Products IP STB Femtocell IAD Media Server Gateway

23 22 Q & A Investor@arcadyan.com