Andes Technology Corp. · TWSE:6533
Andes Technology — Q4 2020 Earnings Presentation
58 slides from Andes Technology's earnings presentation, Mar 5, 2021
Slide 1: Andes Technology Corp. Investor Conference Report
Andes Technology Corp. Investor Conference Report 2021/03/05
Slide 2: Safe Harbor Notice
Safe Harbor Notice Except for the historical information contained herein, the matters addressed in this presentation are forward-looking statements that involve certain risks and uncertainties that could cause actual results to differ materially, including but not limited to weather, impact of comp
Slide 3: Table of Contents
Table of Contents 01 Company Overview 02 Operation Results 03 Product Applications 04 New Products and Ecosystems 05 Concluding Remarks 3
Slide 4: Company Overview
Company Overview http://www.andestech.com
Slide 5: Andes Highlights
Andes Highlights • Founded in March 2005 in Hsinchu Science Park, Taiwan, ROC. • Well-established high technology IPO company • Over 220 people; 80% are engineers. • TSMC OIP Award “Partner of the Year” for New IP (2015) • Founding Premier membership in the RISC-V International Association (RISC-V F
Slide 6: Business Status Overview
Business Status Overview 200+ commercial licensees Geographically distributed in Taiwan, China, Korea, Japan, Europe, and USA Andes- 500+ license agreements signed Embedded SoC AndeSight™ IDE: 19,000+ installations IP / EDA Design Service / Foundries Eco-system: 160+ partners Developme
Slide 7: Operation Results
Operation Results http://www.andestech.com
Slide 8: Agreement Growth Analysis
Agreement Growth Analysis 180 600 160 500 140 120 400 100 300 80 60 200 40 100 20 0 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 IP agreements 1 2 3 6 12 16 16 24 27 27 31 39 43 141 155 Accumulated IP agreements 1 3 6 12 24 40 56 80 107 134 165 204 247 388 543 8
Slide 9: 2020 Revenue Analysis
2020 Revenue Analysis YoY +17.4% (NT$ thousands) 700,000 600,000 581,012 494,851 500,000 400,000 300,000 200,000 100,000 - 2019 2020 9
Slide 10: 4Q20 Revenue Analysis
4Q20 Revenue Analysis QoQ YoY +156.4% +101.6% (NT$ thousands) 300,000 268,585 250,000 200,000 150,000 133,204 104,768 100,000 50,000 - 4Q19 3Q20 4Q20 10
Slide 11: 2020 Top 10 Customers Analysis by Revenue
2020 Top 10 Customers Analysis by Revenue Top 10 Customer Contributed 63% Revenue (NT$ thousands) 140,000 120,000 100,000 37% 80,000 63% 60,000 40,000 20,000 - 11
Slide 12: 2020 Royalty Analysis
2020 Royalty Analysis YoY +48.8% (NT$ thousands) 180,000 158,792 160,000 140,000 120,000 106,716 100,000 80,000 60,000 40,000 20,000 - 2019 2020 12
Slide 13: 4Q20 Royalty Analysis
4Q20 Royalty Analysis QoQ YoY +57.8% +82.7% (NT$ thousands) 70,000 60,000 58,353 50,000 40,000 36,969 31,931 30,000 20,000 10,000 - 13 4Q19 3Q20 4Q20
Slide 14: 2020 Top 10 Royalty Contributors Analysis by Application
2020 Top 10 Royalty Contributors Analysis by Application Top 10 Royalty Customers (NT$ thousands) Contribution Analysis:89% 80,000 11% 70,000 60,000 50,000 89% 40,000 30,000 20,000 10,000 - 14
Slide 15: Royalty Analysis
Royalty Analysis (NT$ thousands) (Numbers) 180,000 45 41 160,000 33 40 140,000 35 120,000 28 30 25 100,000 25 80,000 20 15 15 60,000 15 9 40,000 10 5 20,000 2 5 1 - 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Royalty 445 660 1,285 10,819 12,232 13,320 38,287 74,953 106,716 158,792 Customer n
Slide 16: 4Q20 Consolidated Gross Margin
4Q20 Consolidated Gross Margin (NT$ thousands) 300,000 100.00% 250,000 80.00% 200,000 60.00% 150,000 40.00% 100,000 20.00% 50,000 - 0.00% 4Q19 3Q20 4Q20 Gross Profit 133,094 104,177 268,261 Gross Margin 99.92% 99.43% 99.88% 16
Slide 17: 2020 Consolidated Gross Margin
2020 Consolidated Gross Margin (NT$ thousands) 600,000 100.00% 580,000 80.00% 560,000 540,000 60.00% 520,000 40.00% 500,000 480,000 20.00% 460,000 440,000 0.00% 2019 2020 Gross Profit 494,031 579,829 Gross Margin 99.83% 99.80% 17
Slide 18: 4Q20 Consolidated Operating Expenses
4Q20 Consolidated Operating Expenses QoQ YoY +7.8% +21.3 % (NT$ thousands) 160,000 140,000 120,000 56,455 100,000 61,600 57,778 R&D expenses 80,000 22,904 Administration expenses 60,000 Selling expenses 27,644 21,553 40,000 63,078 20,000 38,112 42,904 - 4Q19 3Q20 4Q20 18
Slide 19: 2020 Consolidated Operating Expenses
2020 Consolidated Operating Expenses YoY +14% (NT$ thousands) 600,000 500,000 237,084 400,000 227,734 R&D expenses 300,000 Administration expenses 110,313 Selling expenses 200,000 73,032 100,000 194,810 174,686 - 2019 2020 19
Slide 20: 4Q20 Consolidated Operating Income (Loss)
4Q20 Consolidated Operating Income (Loss) QoQ YoY - +703.9% (NT$ thousands) 140,000 125,824 120,000 100,000 80,000 60,000 40,000 20,000 15,651 - 4Q19 3Q20 4Q20 -20,000 -40,000 (27,971) 20
Slide 21: 2020 Consolidated Operating Income
2020 Consolidated Operating Income YoY +102.5% (NT$ thousands) 40,000 37,622 35,000 30,000 25,000 20,000 18,579 15,000 10,000 5,000 - 2019 2020 21
Slide 22: 4Q20 Consolidated Operating Margin
4Q20 Consolidated Operating Margin QoQ YoY +73.5 PT +35.1 PT (%) 60.00% 46.85% 50.00% 40.00% 30.00% 20.00% 11.75% 10.00% 0.00% 4Q19 3Q20 4Q20 -10.00% -20.00% -30.00% -26.70% 22 -40.00%
Slide 23: 4Q20 Consolidated Net Income (Loss)
4Q20 Consolidated Net Income (Loss) YoY QoQ +1061.2% - (NT$ thousands) 140,000 120,018 120,000 100,000 80,000 60,000 40,000 20,000 10,336 - 4Q19 3Q20 4Q20 -20,000 -40,000 (29,407) 23
Slide 24: 2020 Consolidated Net Income (Loss)
2020 Consolidated Net Income (Loss) YoY +119.3% (NT$ thousands) 40,000 35,142 35,000 30,000 25,000 20,000 16,023 15,000 10,000 5,000 - 2019 2020 24
Slide 25: 4Q20 Consolidated Net Profit Margin
4Q20 Consolidated Net Profit Margin QoQ YoY +72.76PT +36.93PT (%) 50.00% 44.69% 40.00% 30.00% 20.00% 10.00% 7.76% 0.00% 4Q19 3Q20 4Q20 -10.00% -20.00% -30.00% -28.07% -40.00% 25
Slide 26: 4Q20 Consolidated EPS
4Q20 Consolidated EPS QoQ YoY +3.50 $ +2.56 $ (NT$ thousands) 3.00 2.81 2.50 2.00 1.50 1.00 0.50 0.25 - 4Q19 3Q20 4Q20 (0.50) (0.69) (1.00) 26
Slide 27: 2017-2020 Consolidated EPS
2017-2020 Consolidated EPS (NT$ ) 1.2 1 0.97 0.82 0.8 0.6 0.51 0.38 0.4 0.2 0 2017 2018 2019 2020 27
Slide 28: 2020 Revenue Analysis by Payment Model
2020 Revenue Analysis by Payment Model License Fee Running Royalty Custom Computing Service Maintenance & Others 8% 11% 54% 27% 28
Slide 29: 2020 Revenue Analysis by Region
2020 Revenue Analysis by Region Taiwan USA China Korea Europe Japan 1% 4% 25% 43% 26% 29
Slide 30: 2020 Customer Application Analysis
2020 Customer Application Analysis 2% 2% 2% AI 16% 7% Video& Audio Sensing 7% IoT MCU 16% 9% Others Navigation Networking 13% Automotive 13% HPC Storage 13% 30
Slide 31: 2020 Revenue Analysis by Product
2020 Revenue Analysis by Product N8 N9 1% 1%1% D25 1% 2% Customized IP 12% 2% 19% V3 2% N25 2% 2% NX27 42% RISC-V D10 2% 2% Service Custom Computing N45 46% 3% ACE 3% AX25 NX25 13% 3% A27 A25 AX27 4% N22 N10 5% N13 8% AndeSight 7% D45 8% NX45 7% SYSTEM C N7 OTHER 31
Slide 32: 4Q20 Revenue Analysis - RISC-V
4Q20 Revenue Analysis - RISC-V 180,000 162,096 160,000 140,000 120,000 105,013 100,000 60.4% 80,000 57,427 55,634 52,593 60,000 44,511 40,000 43.1% 20,143 42.5% 7,664 1,476 20,000 15.1% 7.3% 0.5% - 4Q19 3Q20 4Q20 V3 RISC-V Custom Computing 32
Slide 33: 2020 Revenue Analysis - RISC-V
2020 Revenue Analysis - RISC-V 269,375 300,000 242,319 233,644 250,000 180,642 200,000 150,000 47% 46% 80,565 42% 69,318 100,000 37% 16% 50,000 12% - 2019 2020 V3 RISC-V Custom Computing 33
Slide 34: Product Applications
Product Applications http://www.andestech.com
Slide 35: Andes Updates
Andes Updates A 16-year-old public CPU IP company 2B+ Andes-Embedded SoC annually in 2020 GNU Toolchains A founding premier member of the RISC-V International An active role in RISC-V International & its LLVM extension task groups RISC-V Board Director Vice Chair of Technical Steering Commit
Slide 36: Andes Embedded in Various Applications
Andes Embedded in Various Applications Sensor Hub WiFi/ BT/ GPS/ FM (combo) NFC Smart Speakers: Bike Sharing: X-Trail: Controller Touch WiFi IoT GPS Ctrl ADAS Ctlr Storage Screen Controller Controller Switch: Andes Embedded in Smart Phones Game Flash Ctlr In leading machine learning computers for
Slide 37: V5 Adoptions: From MCU to Datacenters
V5 Adoptions: From MCU to Datacenters Edge to Cloud ADAS Datacenter AI accelerators AIoT SSD: enterprise (& consumer) Blockchain 5G macro/small cells FPGA MCU Multimedia Security Wireless (BT/WiFi) 40nm to 5nm 5G Macro Many in AI 37
Slide 38: Andes RISC-V Cores Adopted in SoC
Andes RISC-V Cores Adopted in SoC o single core ooooo oooooooooooooooooooo…oooooooooooooooooooo 2-8 cores ooo oooooooooooooooooooo…oooooooooooooooooooo oooooooooooooooooooo…oooooooooooooooooooo oooooooooooooooooooo…oooooooooooooooooooo oooooooo oooooooooooooooooooo…oooooooooooooooooooo oooooooo oooo
Slide 39: New Products and Ecosystems
New Products and Ecosystems http://www.andestech.com
Slide 40: Andes RISC-V Product Overview
Andes RISC-V Product Overview Best extensions to RISC-V AndeStar™ Architecture V5 AndesCore™ AndeSight™ Highly optimized Processors Tools Professional IDE design with Standby EDM COP Intf with high code & VIC leading PPA AndesCore uCore quality ITLB MMU/MPU DTLB Instr Instr LM Data LM Data Cache Int
Slide 41: Andes RISC-V Product Roadmap
Andes RISC-V Product Roadmap RV32/RV64 Vector Ext. Superscalar Benefits A25MP 27-Series: 45-Series: 512-bit SIMD raises Cache-Coherent AX25MP MobileNet by 30x 1-4 Cores Dual Issue (CNN for mobile vision) Vector Ext. MemBoost MemBoost NX27V N45/NX45 boost performance D45/DX45 by 50% Linux with A25 A2
Slide 42: Andes V5 Architecture for All Levels of Computing
Andes V5 Architecture for All Levels of Computing AndeStar™ V5 CPUs Conventional Computing Domain Specific Architecture Architecture (DSA) RV32/64 Andes Extension N/D-series Leading PPA Embedded Processor Define custom instruction to N22 N(X)25 D25… IoT, Sensing, Storage, Audio, GPS handle time crit
Slide 43: Andes Processors to Fit Your AI
Andes Processors to Fit Your AI Data Center Automotive Mobile AR/VR Surveillance • ADAS, HDR • > 10 cameras Smart Home • Face unlock Vector CPUs • Bokeh Smart Camera • Avatar • Intelligent HMI • SLAM • Barge-in • Gesture recognition Smart IoT Devices • High resolution • Beamforming • Speech to text
Slide 44: RISC-V DSP Extension
RISC-V DSP Extension • Andes contributed market-proven DSP(SIMD) as P-Extension • Designed to accelerate slow video, audio/voice and low data rate DSP workloads Real world speedup using P-Extension DSP MP3 decode 2 RV32P AMR voice codec 3.7 ML-KWS (keyword spotting) 5.2 PNET (90% of Face Detection)
Slide 45: NX27V One Vector for All Implementations
NX27V One Vector for All Implementations *512b Cloud Computing – Datacenter, HPC, Server *256b NX27V Edge Computing – 5G, Vision Processing Endpoint Computing – Natural Language Processing *128b * Configurable compute data width (VLEN) 45
Slide 46: Andes Custom Extension
Andes Custom Extension ACE unlocks RISC-V’s Potential of DSA • Define ACE instruction to handle time critical codes • Another approach to co-processor or accelerators All-in-one COPILOT development environment • Automation tool and ease of use • Extensions are easy to re-use, can be used as a li
Slide 47: Taking RISC-V Cores to Next Level
Taking RISC-V Cores to Next Level Andes is the world-leading supplier shipping the commercial RISC-V cores to market with the support of • D25, D45, A(X)25(MP), A(X)27(L2), P-Extension A(X)45(MP) V-Extension • NX27V, NX45V Custom-Extension • Entire 25, 27, 45 series (w/ ACE* support) *: Andes Custo
Slide 48: Bring Andes Strength to RISC-V Cores
Bring Andes Strength to RISC-V Cores Performance • Leading PPA and code size & Extensibility • Rich data processing in P, V, and ACE Configurability • Flexible configurations for rich features • Compiler optimizations, and SW stacks Maturity • Comprehensive features in AndeSight IDE 48
Slide 49: Aggressive in RISC-V Community
Aggressive in RISC-V Community Contributing hardware architecture extensions Chair of the P-extension (Packed SIMD/DSP) Task Group Co-chair of Fast Interrupts Task Group Closely reviewing activities of other Task Groups 49
Slide 50: Andes Helps Strengthen RISC-V Ecosystem
Andes Helps Strengthen RISC-V Ecosystem More choices for customers are good Andes works closely with partners to grow RISC-V ecosystem 50
Slide 51: Andes Position in RISC-V
Andes Position in RISC-V Complete product portfolio Reliable RISC-V core IP vendor Extreme low power consumption, high computing efficiency World’s leading P-, V- and Custom-Ext. Capable RISC-V cores Professional custom computing service 51
Slide 52: Two Ecosystems: Andes and Knect.me
Two Ecosystems: Andes and Knect.me 52
Slide 53: Knect.me Ecosystem
Knect.me™ Ecosystem Built up the community to help FlashFetch Flash/ AndesCore Data RAM ROM/ AHB Intf RAM DMA AHB Masters SPI developing IoT products (quad speed) LMBRG LMBRG AHB Bus AHB Slaves MAC/PHY Crypto Engine Matrix OTP for password, To knect solutions for silicon IP’s, keys, etc. APB Bri
Slide 54: FreeStart Program
FreeStart Program FreeStart Evaluation Program (FSEP) Support Package (FSSP) For all RISC-V enthusiasms and For all educator/researcher $20K for 1st year, including Fixed-Configuration N22 RTL • 1 year e-service Sign simple evaluation agreement directly on • FreeStart AE250 RTL website
Slide 55: Event Promotion
Event Promotion RISC-V CON RISC-V CON Silicon Valley Beijing RISC-V CON Shanghai RISC-V CON RISC-V CON Hsinchu Shenzhen RISC-V CON series RISC-V Summit, Forum, Workshop & Meetup series TSMC Symposium & OIP series RISC-V Summit in San Jose 2020: Diamond Sponsor 55
Slide 56: Concluding Remarks
Concluding Remarks http://www.andestech.com
Slide 57: A Trusted Computing Expert
A Trusted Computing Expert Successfully rolled out new series of RISC-V cores (w/ leading P-, V- and Custom-Ext.), custom computing service and FreeStart program to extend more oppty. Andes Aggressively involved in RISC-V International new technology development, contributing and Technology leveragi
Slide 58: Thank You
Thank You http://www.andestech.com +886-3-5726533 58