MIPS Technologies Investor Presentation

27
© 2010 MIPS Technologies, Inc. All rights reserved MIPS Technologies Investor Presentation May 2010

Transcript of MIPS Technologies Investor Presentation

Page 1: MIPS Technologies Investor Presentation

© 2010 MIPS Technologies, Inc. All rights reserved

MIPS Technologies Investor Presentation

May 2010

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2© 2010 MIPS Technologies, Inc. All rights reserved

This presentation contains forward-lookindicated by for“will”, and otherstatements about future technologystatements include MIPS’Actual events orforward-looking statements as a resultuncertainties, including but nothat ourdevelopment expenses, the anmay be more difficult to customersales cycle, MIPS’product enhancements, and the level of demproducts that incorporate semiconductors, these markets during the recessionary periFor a further discussion of risk factors afrisk factors section in the docand Exchange Commission.

ing statements; such statements are ward-looking language such as “plans”, “anticipates”, “expects”, words or phrases contemplating future activities including

and growth. These forward-looking expectation regarding improvements in financial results.

results may differ materially from those anticipated in these of a number of different risks and

t limited to: the fact that there can be no assurance products will achieve market acceptance, changes in our research and

ticipated benefits of our partnering relationships achieve than expected, the timing of or delays in

orders, delays in the design process, the length of MIPS Technologies’ability to develop, introduce and market new products and

and for semiconductors and end-user in particular the level of demand in od currently affecting global economies.

fecting our business, we refer you to the uments we file from time to time with the Securities

Safe Harbor for Forward-Looking Statements

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© 2010 MIPS Technologies, Inc. All rights reserved

Business Update

Sandeep VijPresident and CEO

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4© 2010 MIPS Technologies, Inc. All rights reserved

Business Highlights

New CEO; new vision for growth and expansion

Record unit shipments:shipment run rate projected ½ billion units/year

Operating margin target >30% > $51 million cash in the bank as of FYQ3

#1 in digital home markets; aggressively expanding into new markets & building ecosystem

Highly leveraged business model:royalty annuity stream + license revenue

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5© 2010 MIPS Technologies, Inc. All rights reserved

Success Drivers

Compelling Offerings for

Current Markets

Aggressive roadmap with industry’s only multi‐core & multi‐threaded IP 

Expanding Into New

Segments

Mobile, storage…

Compelling offerings with Android

New Management= New MIPS

Customer and solutions focused

“Team MIPS”

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6© 2010 MIPS Technologies, Inc. All rights reserved

Number One Market Share

Number One in Digital Home CPUs

Digital TV

Cable, Satellite & IPTV Set-top Boxes

Blu-ray Disc Players

DVD; DVR

Digital Cameras

Broadband CPE

WiFi Access Pointsand Routers

*IDC Research, 2008 embedded processor share

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7© 2010 MIPS Technologies, Inc. All rights reserved

9.9%

2.4%

0%

2%

4%

6%

8%

10%

12%

MIPS PPC

CA

GR

200

6-20

08Wired + Wireless Networking Equipment

Networking Applications Leadership: Outpacing the Competition

Source: IDC 2009

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8© 2010 MIPS Technologies, Inc. All rights reserved

Storage: A Growth Market

HP Smart Array P410 controller

“PMC’s growth and revenue upside was largely driven by storage, which set a new revenue record and doubled vs. Q1 levels…”

–January 29, 2010

“PMC should continue to benefit from a number of identifiable drivers in its storage business in 2010. A full year of revenue from the HP RAID-on-chip win should provide an incremental $35M in revenue vs. 2009.”

– March 25, 2020

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9© 2010 MIPS Technologies, Inc. All rights reserved

Driving Delivery and User Experience of Content

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10© 2010 MIPS Technologies, Inc. All rights reserved

MIPS Goes Mobile!

100+ =

First MIPS-Based™ cell phones to hit the market—2011

4G (LTE / WiMAX) protocols more similar to WiFi than 3G; MIPS can directly leverage proven WiFi expertise

Android + 4G = opportunity for MIPS to enter the mobile market

100 mbps – 1GBps

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11© 2010 MIPS Technologies, Inc. All rights reserved

Enabling Full Range of Mobile Technologies

Mobile Applications Processing

WLAN

4G Baseband: LTE and WiMAX

3.5G Baseband/ Femtocell

Complementary IP and Enabling Technologies

Tools

SoC IP

Security

Uls

Audio

Video

Graphics

VoIP

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12© 2010 MIPS Technologies, Inc. All rights reserved

MIPS Taking the Lead in Driving Android into Connected Consumer Devices

Multi-million $$ sales pipeline related to Android

Enabling new business models for service & content providers; OEMs

Bringing innovative technologies to customers in established markets

Achieved first significant revenuesdirectly attributable to Android

Android on MIPS code publicly available; 5,000+ downloads

Complementing efforts with Adobe Flash Player 10, Yahoo! TV Widgets

& other platforms

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13© 2010 MIPS Technologies, Inc. All rights reserved

First Android on MIPS Devices

World’s First Android Social Media CenterConnecTV software on Sigma platform

MIPS-Based Android NetbookMIPS-Based chips from ICT

World’s First Android-Based Set-top BoxesMIPS-Based™ chips from Sigma Designs

MIPS-Based Personal Navigation DeviceMIPS-Based WiMAX chip from Altair

Android on MIPS Partners

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14© 2010 MIPS Technologies, Inc. All rights reserved

Greater China Opportunity

ICT proliferating MIPS in non-traditional applications: netbooks, MIDs, miniPCs, desktops, supercomputing...

Dedicated Shanghai-based MIPS Engineering Center Only leading processor company

developing cores in China

Rapid adoption of MIPS architecture and cores; rapid adoption of Android

Over 35 customers in Greater ChinaMIPS in almost every major IC company in Taiwan

Shenzhen IC Design Industrial Center

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15© 2010 MIPS Technologies, Inc. All rights reserved

The Heritage of the MIPS Architecture

Photo: In 1984, Stanford computer scientists John Shott, John Hennessy and James D. Meindl brainstorm about the MIPS project (Photo: Chuck Painter)

Now the architecture of choice for multimedia, home networking & beyond

Pure, fast, efficient, elegant RISC architecture designed for performance

Pioneered by Stanford President John Hennessy in the 1980s

Innovation continues by MIPS and licensees—Altera, Broadcom, Cavium, ICT, NEC, NetLogic,

Toshiba, others

Widely used, widely taught architecture withmillions of lines of code written for it

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16© 2010 MIPS Technologies, Inc. All rights reserved

Industry’s Most Scalable Processor Architecture

32-bit Microcontrollers

64-bit Chips for Advanced Networking

And everything in between

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17© 2010 MIPS Technologies, Inc. All rights reserved

Performance—MIPS versus ARM

3Cores

<4mm2

2Cores

4.6mm2

MIPS32 1004K ARM Cortex-A9 MP

Higher the Better

2,000

4,000

6,000

8,000

10,000

1004K Performance Advantage in Threaded Apps

500mW

450mW

Worst Case SS Corner Frequencies, Production MarginsARM = 12T power opt, MIPS = 9T freq opt

TotalCoremark

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18© 2010 MIPS Technologies, Inc. All rights reserved

Silicon Area Advantage

Two ARM Cortex-A9s

MIPS32 1004K MIPS32 1004K MIPS32 1004K

Three MIPS32 1004K Cores = <4mm2*Two ARM Cortex-A9 Cores = 4.6mm2*

*Source: MIPS and ARM public dataARM = 12T power opt, MIPS = 9T freq opt

A 3-core MIPS 1004K occupies less die area than a 2-core ARM Cortex-A9—and consumes less power!

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19© 2010 MIPS Technologies, Inc. All rights reserved

Why MIPS? Why Now?

Record royalty unit shipments

MIPS broadly replacing PowerPC in networking

Expanding into new segments—storage and high-growth mobile market

Customer and solutions focused

Number one position in the digital home

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© 2010 MIPS Technologies, Inc. All rights reserved

Financials

Maury AustinChief Financial Officer

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21© 2010 MIPS Technologies, Inc. All rights reserved

Q3 FY2010 Financial Results(Qtr Ending March 31, 2010)

Revenue: $17.5M (+15% Qtr to Qtr)$60m trailing 12 months Revenue

Pro-Forma Net Income: $3.9M or 8 cents per share35 cents trailing 12 months Proforma Net Income

EOQ Cash and Investments: > $51M$16m in cash generated from Operations in the last 12 monthsPaid off all debt as of April 7, 2010

Units: 135 Million Units reported by licensees as shipped in the December quarter (+7% sequentially)

+ 26% from year ago quarter

>2 Billion Unit installed base since 2000

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22© 2010 MIPS Technologies, Inc. All rights reserved

MIPS Q3’10 P&L statement

Q2'10 GAAP Adj

Q2'10 Non-GAAP Q3'10

GAAP AdjQ3'10 Non-

GAAP

Total revenue $15.2 $0.0 $15.2 $17.5 $0.0 $17.5

Gross margin $15.1 $0.0 $15.1 $17.4 $0.0 $17.4

Total opex $13.0 $1.4 $11.5 $13.5 $0.8 $12.7

Operating income (loss) $2.1 ($1.4) $3.6 $3.9 ($0.8) $4.7

Other Inc (expense) $0.5 $0.6 ($0.1) ($0.1) $0.0 ($0.1)

Inc (loss) before taxes $2.6 ($0.8) $3.4 $3.8 ($0.8) $4.6 Prov for (benefit) income taxes ($0.7) $0.0 ($0.7) $0.8 $0.0 $0.8

Net income (loss) $3.3 ($0.8) $4.1 $3.1 ($0.8) $3.9

Net inc (loss) / share - diluted $0.07 ($0.02) $0.09 $0.07 ($0.02) $0.08 Shares - diluted 46.2 46.5

Operating inc/(loss) % 14% 23% 22% 27%

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23© 2010 MIPS Technologies, Inc. All rights reserved

Q110 Q210 Q310Vs. Prior

QtrVs. Prior

YearAssetsCash $43.5 $32.3 $28.0 ($4.2) $8.0Short Term Investments $0.0 $15.7 $23.2 $7.4 $23.2Accounts Receivable, net $3.7 $1.9 $3.6 $1.7 ($1.6)Other Assets $1.0 $1.1 $1.0 ($0.1) ($0.2)Total Current Assets $48.2 $51.0 $55.8 $4.8 $29.5Intangible Assets $0.4 $0.3 $0.3 ($0.0) ($0.1)Other Assets $13.4 $12.2 $10.9 ($1.3) ($4.5)Assets of Disc. Ops $0.0 $0.0 $0.0 $0.0 ($79.9)

Total Assets 62.0$ 63.6$ 67.0$ $3.4 ($55.0)

Liabilities and Stockholder's Equity (Deficit)Debt - ST $3.8 $3.8 $8.8 $5.0 $3.8Accrued Compensation $2.7 $3.1 $3.9 $0.8 $0.1Deferred Revenue $2.2 $1.9 $1.9 ($0.0) ($0.0)Other Current Liabilities $8.7 $6.8 $7.2 $0.4 ($9.2)Total Current Liabilities $17.4 $15.6 $21.8 $6.2 ($5.3)Debt - LT $6.9 $5.9 $0.0 ($5.9) ($8.8)Other LT Liabilities $9.2 $8.2 $7.3 ($1.0) ($1.0)Liabilities of Disc. Ops $0.1 $0.0 $0.0 $0.0 ($36.2)Total Liabilities $33.6 $29.8 $29.1 ($0.6) ($51.3)Stockholder's Equity (Deficit) $28.4 $33.8 $37.9 $4.1 ($3.7)

Total Liabilities & Equity $62.0 $63.6 $67.0 $3.5 ($55.0)

($ in m’s)

MIPS Q3‘10 Balance Sheet

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24© 2010 MIPS Technologies, Inc. All rights reserved

107 115 112126

107

82

106

124135

0

20

40

60

80

100

120

140

Munits

Q2FY08 Q3FY08 Q4FY08 Q1FY09 Q2FY09 Q3FY09 Q4FY09 Q1FY10 Q2FY10 Q3FY10

Royalty Quantity

99

Royalty Units Have Rebounded Strongly!

Note: One quarter lag in royalty reports. Q3FY10 quarterly resultsreflect shipments in the December 2009 quarter.

All Time Record! All Time Record! 135MU135MU

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25© 2010 MIPS Technologies, Inc. All rights reserved

Calendar 2009 Royalty Revenue by Segment

Digital Home (DTV, STB, DVD)

MCUs and Storage Controllers

Networking (WLAN, BB CPE, VoIP, Enterprise)

Mobile/Portable(DSC, MID, games)

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26© 2010 MIPS Technologies, Inc. All rights reserved

Digital Home Market Summary

Blue Laser DVDs TAM [Mu], CAGR 65.4%

0.0

10.0

20.0

30.0

40.0

50.0

60.0

2008

2009

2010

2011

2012

2013

Digital TVs TAM [Mu], CAGR 12.9%

0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

160.0

2008

2009

2010

2011

2012

2013

All STBs TAM [Mu], CAGR 5.4%

0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

160.0

180.0

2008

2009

2010

2011

2012

2013

Red Laser DVDs TAM [Mu], CAGR -9.9%

0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

160.0

2008

2009

2010

2011

2012

2013

Digital Media AdapterTAM [Mu], CAGR 72.7%

0.0

10.0

20.0

30.0

40.0

50.0

60.0

2008

2009

2010

2011

2012

2013

IDC 2009 IMS2010

MIPS Market Share > 50% in STB & DTV; ~ 30% in DVD

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27© 2010 MIPS Technologies, Inc. All rights reserved

At the core of the user experience®

MIPS, MIPS32, MIPS64, MIPS-Based, MIPS-Verified, MIPS Technologies logo are trademarks of MIPS Technologies, Inc. and registered in the U.S. Patent and Trademark Office. MIPS, MIPS32, MIPS64, MIPS-Based, MIPS Logo, MIPS Technologies Logo, CorExtend, Pro Series, microMIPS, M14K, M4K, 4KE, 4KEc, 24K, 24KE, 34K, 74K, 1004K, MIPS Navigator, and FS2 are trademarks or registered trademarks of MIPS Technologies, Inc. in the United States and other countries.

Thank You!