Nevena Ackovska /Magdalena Kostoska Faculty of Computer Science and Engineering (FCSE)
Kaufman Bros. 11 th Annual Investor Conference September 3, 2008 NASDAQ CM: FCSE
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Transcript of Kaufman Bros. 11 th Annual Investor Conference September 3, 2008 NASDAQ CM: FCSE
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Kaufman Bros. 11th Annual Investor Conference
September 3, 2008NASDAQ CM: FCSE
This presentation contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and beliefs and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. We refer you to the Risk Factors section in the Company’s Form 10-K for the year ended December 31, 2007 and Form 10-Q for the quarter ended June 30, 2008. These statements are based on information as of September 3, 2008 and the company assumes no obligation to update any forward-looking statements, whether as a result of new information, future events, or otherwise.
Safe Harbor Statement
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Focus Enhancements
Systems GroupDigital Media Solutions• Hi-def. video and tapeless
acquisition driving market• FireStore technology #1• New growth markets and Media
Asset Management
Partnerships with Canon, JVC, Panasonic, and Sony
80% of corporate revenue
Semiconductor GroupConvergence Chips: TV-out• Portable media players and
navigational devices• RMI, FreeScale, Marvell Reference
Designs
UWB Wireless Technology• Superior technology• 1st chip: video distribution• 2nd chip: WUSB mass market• Expected $1B industry
Digital Wireless Audio (DWA)• $136M TAM 2011• 6 patents pending to dominate• Rapid time-to-revenue
A leading developer ofdigital audio/video technology
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Ultra Wideband (UWB)“The Plan”
• Discontinuity and an inevitable growth market for high speed (54 – 480 Mbs) WPAN multimedia connectivity.– Goal: One radio multi-protocol support
(USB, UPNP, 1394, BT next gen.)– Targeting bluetooth costs with all
CMOS design
• Growth opportunity: – $1B plus market 2012
• Wireless USB believed to drive initial market acceptance. NOTE: USB already exceeds 80% attached rates. (PDA, printers, PCs)
USB hubs
PC &PC &Media CentersMedia Centers
Digital Camera,Digital Camera,Camcorder,Camcorder,HandsetHandset
PrinterPrinterMFPMFP
Future Apps:Future Apps:HID – mouse, keyboard, gamepadHID – mouse, keyboard, gamepadDisplay – TV, monitorDisplay – TV, monitorSettop BoxSettop Box
MassMassStorageStorage
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$0
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$1,000
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2007 2008 2009 2010 2011
$0.00
$2.00
$4.00
$6.00
$8.00
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$12.00
$14.00
$16.00
TAM (K$) ASP
$ in millions $ ASP
Significant Market Opportunity
Previously Projected UWB Revenue
Source: In-Stat, Nov. 2007
Delayed ~1 yearDelayed ~1 year
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Portfolio Strategy
Market Focus
Tech
nolo
gy I
nvestm
en
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Existing New
Exis
tin
gN
ew
ConvergencePMP/GPS
STB
Docking
Smartphone
WirelessAudio
UWB WirelessVideo/Data
WiredVideo Out(Biz, Con.)
WirelessConnected Consumer
(AV Distribution)
UWB
Convergence
Wireless Audio
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Today’s Digital Home
Home Home EntertainmenEntertainmen
tt
DVDDVD
STBSTB
Game ConsoleGame Console
PVRPVR
PMPPMP
PCPC
SpeakersSpeakers
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Phase III:Wireless Digital Home Usage
Case
Home Home EntertainmenEntertainmen
tt
DVDDVD
STBSTB
Game ConsoleGame Console
PVRPVR
AudioMojoAudioMojo
AudioMojoAudioMojo
PMPPMP
PCPC
Wireless Wireless MediaMedia
UWBUWBUWBUWB Wireless MediaWireless Media
UWBUWB Wireless MediaWireless Media
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Digital Wireless Audio Industry Revenue
Source: RHA Associates
$ in millions
SpeakerFinderTM: Setup
LF C RF
RS
RBLB
LS
Sub
LF C RF
RS
RBLB
LS
Sub
RB
LF
RF
RS
Focus Competition
SpeakerFinderTM: Optimization
Focus Competition
MyZoneTM: Sweet Spot
Focus Competition
MyZoneTM: Sweet Spot
Focus Competition
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Wireless A/V ApplicationsD
TV
In
teg
rati
on
DS
P
Host
AVR & Home TheaterDVD/ Blu-Ray / HDDVD
Game ConsoleAV Docks and PVRs
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The AudioMojo™ Gap Closure
DTV• AudioMojo™ enables
the first scalable, 16-channel, highest-quality, wireless audio systems
• Transmit (master) modules integrate into DTV or AVR
• Receive (slave) modules integrate into powered, “active” speakers
• Dolby 5.1 surround sound sale would be 7 chips per complete system
• ASP per chip ~$5
Master
SlaveAudioMojo
Execution Plan
• Short Term Execution Objectives:– DWA chip:
• Tape-out: September ‘08• Receive back 100 chips: November ‘08• Bring up and demonstrate technology: November ‘08• Sample with customers: Nov./Dec. ‘08• Customer design commitment @ CES: January ‘09
– UWB Wireless Video:• Demonstrated @ Computex: June ’08• Product reference Design Demo: January ‘09
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Focus’ Competitive Summary
5.1 7.1 or higherStereo
Co
st /
ch
ann
el
Channel Depth
ONLY solution to provide:• 2ms latency
• Lip Sync requirement < 10ms• Scalable
• Up to 16 channels • Quality
• 24 bit @ 48Ksps 96Ksps• < 1usec intra-channel jitter
• Simplicity• SpeakerFinder™• myZone™ (Ear Finder)
• 7 levels of redundancy and robustness• Active Speaker Technology
• Digital Crossover Circuitry• Linear Phase Delay• Notch Filters
No competitor can do < 10ms latency (required for lip sync) with up to 16 channels at 24 bit @ 48KHz
Silicon/IP provider
$
$$$
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Leveraging Technology & Expertise with Partners and Customers
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Semiconductor Summary
• Drive UWB towards CE and Mobile applications which takes advantage of our customer base, current expertise in mobile appliances, and capabilities of our current TT1013 UWB chip
• Strengthen wireless technology portfolio with audio technology
• Targeting to generate revenue from all activities in Q3’09:– TV out chips– UWB video streaming– Digital wireless audio chip
• Long-term, merge the video and audio technologies onto a single UWB platform
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• Tapeless acquisition with file formatting
• Saves 320 hours/year capture time per camera
• Partnered with JVC, Panasonic, Canon
Video Distribution
• HD networked media appliances and processors
• Narrowcast, Digital Signage
• Best Buy, Wal*Mart, Bank of America, Fleet Bank
Acquisition / Video Production
• Integrated Media Asset Management and Archive System
• Provides a scalable and convenient workflow alternative
• Technology Alliance with Sony
Media Asset Management
Systems Group: HD Digital Media Solutions
ENTERPRISE MEDIA
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FS-4 HD$799
FS-100$1,995
DR-HD100$1,995
FS-C$1,995
Portable Direct To Edit™ Recorders
Proprietary technology adopted by major camera companies
FS-5$2,195
FS 4 Based Models Moving to FS 5
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• FireStore has been the growth driver for Systems:– Competitive conditions between the professional
camcorder manufacturers shortened the product life cycle on existing FS4 product line, but FS5 with enhanced metadata functionality began shipping in June.
• Actions: – Reduced expenses– Leverage our 4 partners: Canon, JVC, Panasonic, and
Sony• Convert FireStore users to Enterprise Media to
benefit from converging A/V & IT technologies• Enterprise Media products have the potential to
be larger than FireStore with our partners… if only 5% of FireStore installed base converted to ProxSys = $60M
Systems Growth Drivers
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• Focus is well positioned to take advantage of media going wireless and mobile
• Wireless audio, video, and data technologies• Strong customer base
• Expect to be generating semiconductor revenue in Q3’09 from three product families:
• TV-out chips• UWB video• Digital wireless audio
• Expect Systems group’s revenue to grow with partners coming on line with FS5 and ProxSys technology alliances
Investment Highlights
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THANK YOUNASDAQ CM: FCSE