Andes Technology Corp. · TWSE:6533
Andes Technology — Q3 2020 Earnings Presentation
52 slides from Andes Technology's earnings presentation, Nov 9, 2020
Slide 1: Andes Technology Corp. Investor Conference Report
Andes Technology Corp. Investor Conference Report 2020/11/09
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
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 • Just over 210 people; 80% are engineers. • EETimes' Silicon 60 Hot Startups to Watch (2012) • TSMC OIP Award “Partner of the Year” for New IP (2015) • Founding Premier memb
Slide 6: Business Status Overview
Business Status Overview 200+ commercial licensees Geographically distributed in Taiwan, China, Korea, Japan, Europe, and USA Andes- 400+ 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 160 600 140 About us 500 120 400 100 80 300 60 200 40 100 20 0 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 3Q20 IP agreements 1 2 3 6 12 16 16 24 27 27 31 39 43 141 120 Accumulated IP agreements 1 3 6 12 24 40 56 80 107 134 165 204 247 388 508 8
Slide 9: 1Q-3Q20 Revenue Analysis
1Q-3Q20 Revenue Analysis YoY -13.6% About us (NT$ thousands) 400,000 361,647 350,000 312,427 300,000 250,000 200,000 150,000 2019 Q1-Q3 2020 Q1-Q3 9
Slide 10: 3Q20 Revenue Analysis
3Q20 Revenue Analysis QoQ YoY +2.9% -18.1% About(NT$ us thousands) 140,000 127,851 120,000 101,797 104,768 100,000 80,000 60,000 40,000 20,000 - 3Q19 2Q20 3Q20 10
Slide 11: 1Q-3Q20 Top 10 Customers Analysis by Revenue
1Q-3Q20 Top 10 Customers Analysis by Revenue (NT$ thousands) Top 10 Customer Contributed 63% Revenue 80,000 About us 70,000 37% 60,000 50,000 63% 40,000 30,000 20,000 10,000 - 11
Slide 12: 3Q20 Royalty Analysis
3Q20 Royalty Analysis QoQ YoY +19.3% +29.6% (NT$ About usthousands) 40,000 36,969 35,000 30,976 30,000 28,519 25,000 20,000 15,000 10,000 5,000 - 3Q19 2Q20 3Q20 12
Slide 13: 1Q-3Q20 Royalty Analysis
1Q-3Q20 Royalty Analysis YoY +34.3% About us (NT$ thousands) 120,000 100,439 100,000 80,000 74,785 60,000 40,000 20,000 - 1Q-3Q 19 1Q-3Q 20 13
Slide 14: 1Q-3Q20 Top Ten Royalty Contributors by Application
1Q-3Q20 Top Ten Royalty Contributors Analysis by Application Top 10 Royalty Customers (NT$ thousands) Contributed 88% Royalty 60,000 About us 12% 50,000 40,000 30,000 88% 20,000 10,000 - 14
Slide 15: Royalty Analysis
Royalty Analysis (numbers) (NT$ thousands) 120,000 45 40 110,000 33 40 100,000 35 90,000 80,000 28 30 25 70,000 25 60,000 20 50,000 15 15 40,000 15 30,000 9 10 20,000 5 10,000 1 2 5 - 0 1-3Q 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 10
Slide 16: Consolidated Gross Margin
Consolidated Gross Margin (NT$ thousands) About us 140,000 100.00% 120,000 80.00% 100,000 60.00% 80,000 60,000 40.00% 40,000 20.00% 20,000 - 0.00% 3Q19 2Q20 3Q20 Gross Profit 127,528 101,654 104,177 Gross Margin 99.75% 99.86% 99.43% 16
Slide 17: Consolidated Operating Expenses
Consolidated Operating Expenses QoQ YoY +7.9% +6.9% (NT$us About thousands) 123,.667 122,474 132,148 140,000 120,000 100,000 61,600 54,211 58,233 80,000 R&D expenses 14,991 Administration expenses 60,000 27,644 Selling expenses 27,360 40,000 54,465 20,000 36,881 42,904 - 3Q19 2Q20 3Q20 17
Slide 18: Consolidated Operating Income (Loss)
Consolidated Operating Income (Loss) QoQ YoY - -824% About us(NT$ thousands) 10,000 5,000 3,861 - 3Q19 2Q20 3Q20 -5,000 -10,000 -15,000 -20,000 (20,820) -25,000 -30,000 (27,971) 18
Slide 19: Consolidated Operating Margin
Consolidated Operating Margin QoQ YoY -6.25 PT -29.72 PT About us (%) 5.00% 3.02% 0.00% 3Q19 2Q20 3Q20 -5.00% -10.00% -15.00% -20.00% -20.45% -25.00% -26.70% -30.00% 19
Slide 20: Consolidated Net Income (Loss)
Consolidated Net Income (Loss) QoQ YoY - -821 % (NT$us About thousands) 10,000 4,077 5,000 - 3Q19 2Q20 3Q20 -5,000 -10,000 -15,000 -20,000 -25,000 (17,696) -30,000 (29,407) -35,000 20
Slide 21: Consolidated Net Profit Margin
Consolidated Net Profit Margin QoQ YoY -10.69 PT -31.26 PT About us (%) 5.00% 3.19% 0.00% 3Q19 2Q20 3Q20 -5.00% -10.00% -15.00% -20.00% -17.38% -25.00% -28.07% -30.00% 21
Slide 22: Consolidated Earnings Per Share
Consolidated Earnings Per Share QoQ YoY -0.28 -0.79 About us (NT$) 0.30 0.10 - 3Q19 2Q20 3Q20 (0.30) (0.41) (0.60) (0.69) (0.90) 22
Slide 23: 1Q-3Q20 Revenue Analysis by Payment Model
1Q-3Q20 Revenue Analysis by Payment Model License Fee Running Royalty Custom Computing Service Maintenance & Others About us 12% 36% 20% 32% 23
Slide 24: 1Q-3Q20 Revenue Analysis by Region
1Q-3Q20 Revenue Analysis by Region Taiwan USA China Korea Europe Japan About us 1% 5% 23% 42% 28% 24
Slide 25: 1Q-3Q20 Customer Application Analysis
1Q-3Q20 Customer Application Analysis 3% 3% Video& Audio 3% About us 3% 24% MCU IoT 7% AI Sensing 10% Navigation Others 17% Networking 14% Automotive Storage 14% *Based on agreement number 25
Slide 26: 1Q-3Q20 Revenue Analysis by Product
1Q-3Q20 Revenue Analysis by Product N8 1% 2% 22% V3 1% Customized IP 1% RISC-V 2% D25 44% 2% 23% N9 Custom Computing 5% N25 Service 6% 34% D10 AX25 8% N10 N22 14% NX25 N13 10% N7 ACE AndeSight 10% 13% EVB OTHERS 26
Slide 27: 3Q20 Revenue Analysis - RISC-V
3Q20 Revenue Analysis - RISC-V (NT$ thousands) 69,057 70,000 About us 60,000 52,593 44,511 50,000 41,894 38,554 40,000 31,683 27,111 30,000 21,349 20,000 42.5% 7,664 54.0% 41.2% 21.0% 10,000 21.2% 7.3% - 3Q19 2Q20 3Q20 V3 RISC-V Custom Computing 27
Slide 28: Product Applications
Product Applications http://www.andestech.com
Slide 29: Andes Updates
Andes Updates A 15-year-old public CPU IP company 1.5B+ Andes-Embedded SoC annually in 2019 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 Comm
Slide 30: 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 31: 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 7nm 5G Macro Many in AI
Slide 32: 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 33: New Products and Ecosystems
New Products and Ecosystems http://www.andestech.com
Slide 34: 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 35: 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 36: 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 37: 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 38: 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 39: 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)
Slide 40: 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 41: 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 P-Extension • D25F, A(X)25(MP), A(X)27, A(X)45 V-Extension • NX27V, NX45V Custom-Extension • Entire 25, 27, 45 series (w/ ACE* support) *: Andes Custom Extension
Slide 42: 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
Slide 43: 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
Slide 44: 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
Slide 45: 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 45
Slide 46: Two Ecosystems: Andes and Knect.me
Two Ecosystems: Andes and Knect.me
Slide 47: 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 48: 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 49: 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 Roadshow & Workshop Series TSMC symposium & OIP series RISC-V Summit in San Jose 2020: Diamond Sponsor
Slide 50: Concluding Remarks
Concluding Remarks http://www.andestech.com
Slide 51: 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 52: Thank You
Thank You http://www.andestech.com +886-3-5726533 52