Ikanos Communications — Investor Presentation (October 2012)
30 slides from Ikanos Communications's investor presentation, Oct 4, 2012
Slide 1: Ikanos Communications, Inc.: A Growth Opportunity
Ikanos Communications, Inc. A Growth Opportunity October 4, 2012 Exhibit 99.1
Slide 2: Safe Harbor Statement
Safe Harbor Statement 2 This presentation contains, in addition to historical information, forward-looking statements. Such forward-looking statements are based on management’s current expectations, estimates and projections about our industry and business, including but not limited to the expected
Slide 3: Ikanos Communications, Inc. (Nasdaq: IKAN)
© Ikanos Communications, Inc. All rights reserved. Ikanos Communications, Inc. (Nasdaq: IKAN) 3 • Focused on Broadband DSL – End-to-End Solution • Leadership Technology & IPR • Global Footprint - 400M Ports Shipped • Strong Balance Sheet • Strong Market Need – Bandwidth to/from Home
Slide 4: Board of Directors
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Slide 7: Board of Directors And New Management Team
4 Board of Directors And New Management Team © Ikanos Communications, Inc. All rights reserved. Omid Tahernia, CEO and President Tilera, Xilinx, Motorola (Equip. and Semi) Dennis Bencala, CFO Renewable Energy Test Center, SiRF, ScanVision Debajyoti Pal, CTO GlobespanVirata, Excess Bandwidth, Amati S
Slide 8: Ikanos Solutions for Broadband over Copper enable high speed access to the Digital Home
5 Ikanos Solutions for Broadband over Copper enable high speed access to the Digital Home Ikanos Gateway for Digital Home • Entryway for triple-play content © Ikanos Communications, Inc. All rights reserved. Ikanos Broadband Access Solutions FTTx Ikanos delivers end-to-end Broadband Access solutions
Slide 9: Ikanos xDSL Worldwide Footprint
6 © Ikanos Communications, Inc. All rights reserved. Ikanos xDSL Worldwide Footprint 400M Ports shipped Vectored VDSL enables significant upgrade opportunities for Copper Networks
Slide 10: Ikanos enabling major IPTV Deployments worldwide
7 © Ikanos Communications, Inc. All rights reserved. Ikanos enabling major IPTV Deployments worldwide Taiwan ODMs
Slide 11: Fiber to the Neighborhood + Copper to the Home: speed of fiber at 1/10th the cost
Central Office © Ikanos Communications, Inc. All rights reserved. Node Node 8 Fiber to the Neighborhood + Copper to the Home Fiber to the Home • $2,500 / household • 5+ years to deploy • $250 / household • Deployment over existing infrastructure vs Source: BusinessWeek article on FTTH in USA and OEC
Slide 12: Ikanos NodeScale Vectoring will deliver 100 Mbps Data over Copper
9 Ikanos NodeScale™ Vectoring will deliver 200 Mbps Data over Copper © Ikanos Communications, Inc. All rights reserved.
Slide 13: Drivers for High Rate Broadband Access
10 © Ikanos Communications, Inc. All rights reserved. Drivers for High Rate Broadband Access • Carriers searching for new revenue streams, higher ARPU and lower CAPEX • Subscribers demanding higher speed Internet access, more video content and higher video resolution • New services and applications
Slide 14: New Services and Applications
200Mbps (Bonded VDSL2) (>2013; e.g. Vectored VDSL, Bonding) © Ikanos Communications, Inc. All rights reserved. Service providers now architecting for multi-play services and require >100Mbps 11 11 – 20 Mbps (Current; e.g. VDSL) New Services and Applications Net DVR 12-18 Mbps (3-4 streams) Email Voi
Slide 15: Carrier Landscape for Broadband Access
12 © Ikanos Communications, Inc. All rights reserved. Carrier Landscape for Broadband Access • Designed for TV • Can provide low rate Internet access • Designed for Voice • 4G enables high data rates, but constrained backhaul capacity • Limited in access and sustained bandwidth • Designed for POTS •
Slide 16: Telco Opportunity
13 © Ikanos Communications, Inc. All rights reserved. 60% 14% 19% Telco Opportunity • Telcos (i.e., ADSL, FTTx and FTTH) have majority share in broadband lines >77% Total • Deployed copper is Telco’s major asset • Vectored VDSL2 will provide a significant opportunity to deliver broadband over copper
Slide 17: Germany switching to Vectored VDSL; EU operators moving to Vectored VDSL
© Ikanos Communications, Inc. All rights reserved. Germany (20M lines) switching to Vectored VDSL from Pure Fiber Majority EU operators moving to Vectored VDSL 14 DSL Tsunami Full article can be found at: http://fastnetnews.com/dslprime/42-d/4845-dsl-tsunami-rolling-over-europe-first-look Excerpts t
Slide 18: Total Opportunity One Billion Copper Lines
Total Opportunity One Billion Copper Lines © Ikanos Communications, Inc. All rights reserved. 15 Ikanos Market Opportunity Existing copper line creates an opportunity for upgrade at both ends - Vector processors at the Node and Gateway processors at Home Total Opportunity One Billion Copper Lines So
Slide 19: Ikanos Delivers End-to-End Broadband Access Solutions
Ikanos Delivers End-to-End Broadband Access Solutions
Slide 20: Ikanos NodeScale Vectoring Solution
Ikanos NodeScale™ Vectoring Processor Ikanos Vectored VDSL2 Transceivers Ikanos Gateway G.Vector-Compliant Communications Processors © Ikanos Communications, Inc. All rights reserved. 17 Ikanos NodeScale Vectoring Solution
Slide 21: Typical System Content for NodeScale Vectoring
© Ikanos Communications, Inc. All rights reserved. 18 Typical System Content for NodeScale Vectoring - 192p System shown 16 port DSP 8Port AFE 8Port AFE 16 Lines (to CPE) To Backplane (Controller Card and Vector Card) 16 port slice 16 port slice 16 port slice 4x 48-port line cards Chassis/ Backplane
Slide 22: Ikanos is Well-Positioned within the Home
© Ikanos Communications, Inc. All rights reserved. 19 Ikanos is Well-Positioned within the Home • Ikanos is a major supplier of broadband access gateway processors for the home • Media Agnostic Gateway • Ikanos is well positioned to address the evolution of the digital home, leveraging: • Core compe
Slide 23: Ikanos Operating Focus and Financials
Ikanos Operating Focus and Financials A Growth Opportunity
Slide 24: Ikanos Operating Focus
Ikanos Operating Focus © Ikanos Communications, Inc. All rights reserved. 21 Near-term Product Execution Go-to-Market Design-win Pipeline and Ramp Mid-term Go-to-Market Profitability New Product Roadmap Longer-term Technology Leadership Expanding TAM Sustainable Execution
Slide 25: Income Statement Trends – Non GAAP
Income Statement Trends – Non GAAP © Ikanos Communications, Inc. All rights reserved. 22 Q3 2011 Actual Q4 2011 Actual Q1 2012 Actual Q2 2012 Actual Revenue $35M $35M $31M $32M Gross Profit $18M $20M $16M $15M OPEX $20M $18M $20M $17M Net Income (Loss) $(2)M $1M $(4)M $(3)M EPS (Loss) $(0.03) $0.01
Slide 26: Actual Quarterly Revenue versus Guidance
Actual Quarterly Revenue versus Guidance ($M) © Ikanos Communications, Inc. All rights reserved. $35.4 $35.4 $30.8 $32.1 23 Accurate, Consistent Results Q3 Revenue Guidance of $30 - $32M Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Actual Revenue Low Guidance High Guidance
Slide 27: Quarterly R&D & SG&A Spending vs. Revenue
Quarterly R&D & SG&A Spending vs. Revenue ($M) © Ikanos Communications, Inc. All rights reserved. $13.6 $12.7 $13.4 $12.5 $17.4 $5.2 $4.7 $4.4 $4.4 $4.6 24 Long-term Commitment to R&D and Customers Rev $M $- $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 $35.0 $40.0 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Guida
Slide 28: Resources and Positioning For Growth
Resources and Positioning For Growth © Ikanos Communications, Inc. All rights reserved. 25 Q3 2011 Actual Q4 2011 Actual Q1 2012 Actual Q2 2012 Actual Cash and Investments $36M $35M $40M $33M Accounts Receivable $16M $18M $17M $21M Inventory $13M $9M $8M $7M Total Assets $81M $78M $78M $79M Long-ter
Slide 29: Summary
Summary © Ikanos Communications, Inc. All rights reserved. 26 • Focused on right growth market • Unique Technology and Products • Rich in IPR: 300+ Patents and Patent Applications • Strong Balance Sheet • Positioned for Growth
Slide 30: Thank you!
Thank you!
Ikanos Communications — Investor Presentation (October 2012) on 6ix