© February 2003 Confidential Information
Business Plan Presentation
Mobius Microsystems Inc.
3430 E. Jefferson Ave. #140
Detroit, MI 48207
313.205.3489
www.mobius-microsystems.com
Pryor-Hale Business Plan Competition
Ann Arbor, MI
February 7, 2003
2
Overview
• Vision
• Management Team
• Technology
• Industry and Market
• Competition
• Marketing and Sales Strategy
• Financials
3
Vision
Mobius Microsystems TechnologyEnables electronic system developers to produce less expensive, smaller, more functional, and more reliable products that consume less power.
Our CustomersWill reap orders of magnitude improvements in the products they build and lead their industries in end-product performance, functionality, and value.
VISION MANAGEMENT TECHNOLOGY MARKET COMPETITION STRATEGY FINANCIALS
4
Management Team
Michael S. McCorquodale, CEO and CTO• Electrical Engineering Doctoral Fellow, U of M• Notable patents, publications, engineering design awards, and experience• Vision of how microsystems technology and Mobius will change the world
Jeffrey G. Wilkins, COO• MBA 2003, U of M• Business Development, Velocys, Inc. (Battelle Memorial Institute spin-off)• The commitment and experience to turn Mobius’ vision into reality
James E. Vincke, CFO• B.S.E., M.S.E., MBA, U of M • Mechanical Dynamics, Inc. CFO during $30M IPO• Veteran experience and financial acumen
VISION MANAGEMENT TECHNOLOGY MARKET COMPETITION STRATEGY FINANCIALS
5
Electronic Systems Today
To build cell phones, PDA’s, and other electronic systems today, a number of core technologies must be assembled on a printed circuit board: electronic, digital, analog, mechanical, etc.
Printed Circuit Board
Digital Microprocessor
Memory
Mixed-SignalCircuits
Mechanical Sensor
Crystal Oscillator
AnalogCircuits
VISION MANAGEMENT TECHNOLOGY MARKET COMPETITION STRATEGY FINANCIALS
6
The Problem
These systems are• Large (package sizes)• Expensive (package costs)• Power-hungry (signal across a board requires 10x power)• Complicated (interface issues)• Less reliable (interconnect issues)• Limited in functionality (size and power constraints)
VISION MANAGEMENT TECHNOLOGY MARKET COMPETITION STRATEGY FINANCIALS
7
PCB
The Solution: Microsystems
Microsystems are intelligent miniaturized systems comprising sensing, processing, and actuating functions integrated onto a single chip. They are smaller, cheaper, lower power, simpler, more reliable, and more functional.
Printed Circuit Board
Digital Microprocessor
Memory
Mixed-SignalCircuits
Mechanical Sensor
Crystal Oscillator
AnalogCircuits
VISION MANAGEMENT TECHNOLOGY MARKET COMPETITION STRATEGY FINANCIALS
8
Semiconductor Clock Generation
Every microprocessor, microcontroller, and PLD requires a clock signal to operate
So what makes it run at 1GHz?
Clock frequency signal from off-chip crystalAMD Athlon Processor(1 GHz)
fclk
VISION MANAGEMENT TECHNOLOGY MARKET COMPETITION STRATEGY FINANCIALS
9
State of the Art vs. Mobius’ DMC
VISION MANAGEMENT TECHNOLOGY MARKET COMPETITION STRATEGY FINANCIALS
Existing Clock Solutions• Crystal-based• Off-chip component• Fixed frequency• Large• Power-hungry
Mobius’ DMC• MEMS-based• On-chip• Tunable frequency• Small• Low-power
vs.
crystalelectronics
Mobius’DMC
10
The Mobius DMC in Action…
Example: iPAQ PDA Using Current Technology Using Mobius’ Technology
Clock Hardware Costs ~$1.00 ~$0.45
Clock Space Requirements 323mm2 on circuit board 0.09mm2 on semiconductor
Clock Power Requirements 32mW 4mW
Tuning Range Fixed (w/o add. electronics) 62.5MHz to 1GHz
VISION MANAGEMENT TECHNOLOGY MARKET COMPETITION STRATEGY FINANCIALS
What Mobius can do for Compaq• Reduce total cost• Reduce component inventory• Increase battery life• Increase functionality• Decrease time to market• Increase share of total system revenueCOMPAQ iPAQ Pocket PC
11
PackagedSemiconductor
SemiconductorDesign
Semiconductor Intellectual Property
• Blocks (blueprints) that are placed into larger designs
• Manufacturing handled by customer
• Low COGS
• Successful Technology Model: ARM, MIPS, Rambus, Parthus
Mobius’ DMC IP
VISION MANAGEMENT TECHNOLOGY MARKET COMPETITION STRATEGY FINANCIALS
13
Industry and Market Overview
• Semiconductor Industry: $151B (2002)– CAGR: 8% – Cyclical, Mature
• System-On-Chip Market (SoC): $32B– CAGR: ~ 25% to 30%– Wide array of end products
• Cell phones, DVD, disk drives, WLAN• Texas Instruments, Motorola, Sony
VISION MANAGEMENT TECHNOLOGY MARKET COMPETITION STRATEGY FINANCIALS
14
System-on-Chip Explained
• System-on-chip provides a higher level of on-chip integration (also known as system-level integration)
• SoC’s combine a processing core, memory, and logic on a single chip
Microprocessor Core
Communications
Clock
Sensor
Analog FrontEnd
Memory
OtherSubsystems
Printed Circuit Board (PCB)
VISION MANAGEMENT TECHNOLOGY MARKET COMPETITION STRATEGY FINANCIALS
Microprocessor system-on-chipwith memory and communications
Clock
Sensor
Analog FrontEnd
OtherSubsystems
PCB
SoC
15
First Addressable Market
• The System-On-Chip (SoC) Market Segment– SoC: $32 Billion or (@ $20/unit) 1.6 Billion units/yr– One DMC unit per SoC manufactured– Currently $1.6B spent on clock generation in SoC
segment– Mobius’ DMC average selling price of $0.45/unit
• First Addressable Market: $720 Million
VISION MANAGEMENT TECHNOLOGY MARKET COMPETITION STRATEGY FINANCIALS
16
Why SoC?
SoC’s Market Dynamics and Needs
• Fast design cycles to meet product windows
• High acceptance of emerging technologies
• Comfort with IP and IP companies
• Medium to high volume
• Wide array of end products and markets
• Fabrication facilities (TSMC, IBM)
VISION MANAGEMENT TECHNOLOGY MARKET COMPETITION STRATEGY FINANCIALS
17
Competition
Competitive Landscape: 3 kinds of competitors• Discrete Crystal Clock Generation
Epson, NDK, Toyocom• Integrated Clock Manufacturers
Motorola, Analog Devices, and Texas Instruments• Hybrid Clock Manufacturers
Motorola, Analog Devices, and Texas Instruments
Currently no inexpensive, small, low-power, high-performance, tunable, reliable, and accurate on-chip solution exists for clock generation in the semiconductor market.
VISION MANAGEMENT TECHNOLOGY MARKET COMPETITION STRATEGY FINANCIALS
18
Mobius’ “Secret Sauce”
• Design cycle lead and microsystems development trade secrets
• Patent-protected intellectual property portfolio• Industrial membership and “first-look” rights to IP
from The University of Michigan Center for Wireless Integrated Microsystems (WIMS)
• “Product Hopping” development strategy
VISION MANAGEMENT TECHNOLOGY MARKET COMPETITION STRATEGY FINANCIALS
19
Marketing and Sales Strategy
Goal: De-facto standard in clock generation for SoC1. Establish IP partnerships with leading chip makers
• Existing IP partner programs (e.g. Altera, TSMC)
2. Educate the market on Mobius’ DMC product; Create $Free Technology “Buzz”
• Leverage existing relationships, conferences, tradeshows
3. Design wins pull sales through IP partnerships• Direct sales, technical sales reps • Get “designed in”
VISION MANAGEMENT TECHNOLOGY MARKET COMPETITION STRATEGY FINANCIALS
20
Business System
Revenue Model• Design License: Tiered $100,000 to $300,000
• Royalty: Tiered $0.15 to $0.50 per unit
• Annual Support & Maintenance: 15% of Initial License
• Services: Design Services for Customers
VISION MANAGEMENT TECHNOLOGY MARKET COMPETITION STRATEGY FINANCIALS
22
Financial Highlights
(500)
-
500
1,000
1,500
2,000
2,500
3,000
2003 2004 2005 2006 2007
Years
Dol
lars
(00
0's)
(5,000)
-
5,000
10,000
15,000
20,000
25,000Net Income
Cash Flow from Operations
Revenue
Financials
Revenue, Net Income, and Cash Flow from Operations
VISION MANAGEMENT TECHNOLOGY MARKET COMPETITION STRATEGY FINANCIALS
23
Investment Opportunities
Self-Fund Operations Until First Sale Is Made$114K Founders Investment (Q2 2003)
After First Sale (Q3 2003):Seeking $500K 1st Round InvestmentUses: Develop Professional Marketing & Sales Team
Hire Additional Engineering ExpertisePort to Additional Manufacturing ProcessesEnhance DMC
Milestone: 5 Reference Customer Relationships
VISION MANAGEMENT TECHNOLOGY MARKET COMPETITION STRATEGY FINANCIALS
24
Investment Opportunities
Potential $500K 2nd Round Investment(Q1 2004)
Uses: Open Sales Office in Munich
Continue to Develop Engineering Team
Commercialize Follow-on Technologies
Milestone: International Reference Customers
Working AFE Prototype
VISION MANAGEMENT TECHNOLOGY MARKET COMPETITION STRATEGY FINANCIALS
26
Closing
• $720 Million First Addressable Market
• The least-expensive, smallest, lowest power, high-performance clock generator available
• Cutting-edge microsystems know-how
• The flexibility of intellectual property
• Strong IP position and competitive advantage
• Committed management team
QUESTIONS?
Top Related