Exar — Investor Presentation (2013)
40 slides from Exar's investor presentation, 2013
Slide 1: EXAR: A New Direction
EXAR A NEW DIRECTION Mixed Signal and Data Management Solutions for a Connected World
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on management’s current expectations and beliefs and are subject to a number of fact
Slide 3: Exar Corporation
Exar Corporation • Founded: 1971 • Headquarters: Fremont, California • Design Centers: Silicon Valley, California; Hangzhou, China and Eatontown, New Jersey; Toronto, Canada • Employees: 301 • Revenue: $122mm* • Net Margin: 15% March Quarter** • Balance Sheet: ≈$205mm Cash, No Debt *Fiscal 2013 **No
Slide 4: Management Team
Management Team • Louis DiNardo CEO 30-year Semiconductor Veteran - • ADI, LLTC, XICOR, ISIL, EXAR • Todd Smathers SVP Operations 30-year Semiconductor Veteran - • NSM, LLTC, XICOR, ISIL, EXAR • Carlos Laber SVP R&D 30-year Semiconductor Veteran - • NSM, MCRL, XICOR, ISIL, ON Semiconductor, EXAR • S
Slide 5: Financial Performance
Financial Performance • Fiscal Year 2013 Fourth Quarter Ending March 2013* • Revenue $31.2 million - 1% Growth Q/Q, 12% Y/Y • Gross Margin 52.7% - 373 Basis Point Increase Q/Q • Operating Income $4.3 million - 21% Increase Q/Q • EPS $0.10 - 11% Increase Q/Q *Non-GAAP Results
Slide 6: Exar Success Model
Exar Success Model FY’12 Q1FY13 Q2FY13 Q3FY13 Q4FY13 FY’13 Long-Term Results* Results* Results* Results* Results* Results* Model* Revenue $131M $29.3M $30.6M $31.0M $31.2M $122M ≈$45M 53% - Gross Margin 47% 47% 47% 49% 53% 49% 55% Operating 32% - 52% 44% 40% 38% 39% 40% Expense 34% Operating Inc/ (5
Slide 7: Operating Income/Loss
Operating Income/Loss* Q4-13 $4,500 $4,316 Q3-13 $3,560 Q2-13 $2,225 $1,750 Q1-13 $774 $893 $k $87 $134 -$404 -$1,000 -$1,232 -$1,528 -$1,544 -$1,967 -$2,448 -$2,930 -$3,079 -$3,750 -$3,725 -$4,249 -$4,744 -$4,968 -$5,438 -$5,384 Q4-12 -$6,500 -$6,155 Q3-08 Q1-09 Q3-09 Q1-10 Q3-10 Q1-11 Q3-11 Q1-12
Slide 8: Revenue Per Employee Trend
Revenue Per Employee Trend Title $500,000 600 $375,000 450 $250,000 300 $125,000 150 $0 0 2007 2008 2009 2010 2011 2012 2013
Slide 9: Strategic Vision
Strategic Vision Achievement of Success Model • Serve High Growth Markets with Innovative Value-Added Solutions • High Performance Analog Mixed Signal • Data Management Solutions • Consistent Profitable Growth • Differentiation - Technology and Innovation • Diversity - Markets, Customers and Product
Slide 10: Market Focus
Market Focus • Networking and Storage • Industrial and Embedded Systems • Communications Infrastructure
Slide 11: Product Focus
Product Focus • Power Management Products • Connectivity Products • Data Management Solutions
Slide 12: Product Line Contribution
Product Line Contribution* 21% Power 9% Connectivity 54% 16% Data Compression Communications *Fiscal Year 2013
Slide 13: End Market Contribution
End Market Contribution* 30% Networking 20% Industrial Communications 49% Other *Fiscal Year 2013
Slide 14: Geographic Contribution
Geographic Contribution* 27% Americas 14% Asia Europe 59% *Fiscal Year 2013
Slide 15: Power Management Products
Power Management Products • Analog Power Management • Switching Regulators • Switching Controllers • Linear Regulators • Supervisory Controllers • Programmable Power • Multiple Output Synchronous Buck Controllers
Slide 16: End Market Focus
End Market Focus Served Available Market (SAM) Market Volume ASP SAM Customers Set Top Box 150M $2.00 $300M Pace, Motorola Technicolor Switches/Routers 20M $5.00 $100M Cisco, HP, Alcatel, Huawei MF Printers 10M $5.00 $50M HP, Canon, Konica, Minolta Servers 15M $10.00 $150M HP, IBM, Dell, Intel Surve
Slide 17: POWER XR: Exar Programmable PowerSuite 5.0
POWERXR Exar Programmable PowerSuite 5.0
Slide 18: Exar Programmable Power
Exar Programmable Power SINGLE INPUT - FOUR OUTPUT ANALOG FEATURES EXAR 147 # OF COMPONENTS 33 DISCRETE SOFT-START YES DISCRETE MARGINING YES DISCRETE SEQUENCE & TRACK YES NO DYNAMIC CONTROL YES NO FAULT MANAGEMENT YES NO I2C INTERFACE YES
Slide 19: Power Management Revenue
Power Management Revenue $9.00 $6.75 $M $4.50 $2.25 $0 Q111 Q211 Q311 Q411 Q112 Q212 Q312 Q412 Q113 Q213 Q313 Q413
Slide 20: Data Compression and Security
Data Compression and Security Hardware Acceleration and Software Solutions • Compression • Decompression • Acceleration • Encryption • Decryption
Slide 21: Data Compression and Security
Data Compression and Security • High Growth Markets Supporting Social Networking, Industrial Internet and Financial Technology • Big Data Analytics • Enterprise • Cloud • Off-Load Processing • Lower Cost - Decrease Array Capacity • Improve System Performance - Throughput and Latency
Slide 22: Data Compression and Security
Data Compression and Security Data Warehouse Served Available Market (SAM) Market Customers SAM Enterprise Storage EMC, Hitachi, IBM, NetApp $80M Big Data Analytics Teradata, Oracle, HP, IBM $80M Cloud Storage Amazon, Microsoft, Rackspace $100M Cloud Computing IBM, Google, Salesforce $70M Network Se
Slide 23: CPU v. Storage IOPS
CPU v. Storage IOPS Input Output Operations per Second 10000000" CPU 1000000" 12,000X Increase 100000" Bottleneck 10000" 1000" 100" STORAGE 120X Increase 10" 1" 1" 2" 3" 4" 5" 6" 7" 8" 9" 10" 11"
Slide 24: Data Compression Application
Data Compression Application Off-Load Processor and Software Compression Engine with PCIe Interface CLOUD PCIe WAN CPU SUB-SYSTEM PCIe Exar DX1845 PCIe EXAR DX1845 ENTERPRISE PCIe 1GbE/10GbE
Slide 25: Panther I
Panther I First Generation Compression/Security Engine with PCIe Interface Transform Engine PCIe DMA Hash 4x Encryption Compression Flash PK Public Key Engine GPIO RNG Ctlr Mgr
Slide 26: Panther II
Panther II 2nd Generation Compression and Security Engine with PCIe and FPGA Interface Public Key Engine PCIe DMA Transform Engine 4x Hash Encryption Flash FPGA GPIO RNG Config Ctlr Control Compression Interlacken Interface External FPGA
Slide 27: Data Compression/Security Revenue
Data Compression/Security Revenue $7.00 Legacy Security Processor Compression Engine $5.25 $M $3.50 $1.75 $0 Q111 Q211 Q311 Q411 Q112 Q212 Q312 Q412 Q113 Q213 Q313 Q413
Slide 28: Altior Acquisition
Altior Acquistion • AltraFlex • GZIP Compression/ Exar Altior Acceleration Board - 10Gbps to 15Gbps Hardware Hardware • CeDeFS Software Hardware + = • Application Transparent Compression Software Software Software Software • AltraStar • AltraFlex + CeDeFs tuned to Hadoop/MapReduce
Slide 29: Altior CeDeFS OEM Solution
Altior CeDeFS OEM Solution CeDeFS is a kernel plug-in at the file system layer that Applications once installed will compress ALL files independent of application. This solves a major challenge for OEM customer that currently integrate at the application. WIth CeDeFS Native Linux Kernel integration
Slide 30: Hadoop File System
Hadoop File System
Slide 31: AltraHadoop CeDeFS
AltraHadoop CeDeFS Split/Decompress Map ——| Compress/Distribute eens e saa —_ Decompress/Compute
Slide 32: Connectivity
Connectivity • Bridges • UARTs • USB • PCIe • I2C • Transceivers • Differential • Serial
Slide 33: Connectivity Products
Connectivity Products Total Available Market (TAM) $500M $150M $300M UARTs Transceivers Bridges Digital $1,500M
Slide 34: Connectivity Products: UARTs, Bridges and Transceivers
Connectivity Products UARTS, Bridges and Transceivers Comm Industrial Point-of-Sale Value Embedded Computing Consumer Servers Volume
Slide 35: Connectivity Application
Connectivity Application UART and Transceiver RS232 Distance RS232 UART UART RS485 RS485 EQUIPMENT
Slide 36: Connectivity Revenue
Connectivity Revenue $21.00 $15.75 $M $10.50 $5.25 $0 Q111 Q211 Q311 Q411 Q112 Q212 Q312 Q412 Q113 Q213 Q313 Q413
Slide 37: Exar Summary
Exar Summary
Slide 38: Core Assets, Markets and Products
Core Assets, Markets and Products Management Team - Strong Record of Success Brand Recognition - 40 Years of History Customers - 14,000 Worldwide Channel Partners - Future, Arrow and WT Balance Sheet ≈ $200M Cash Networking Power Management Industrial Data Management Communications Connectivity
Slide 39: Exar Success Model
Exar Success Model FY’12 Q1FY13 Q2FY13 Q3FY13 Q4FY13 FY’13 Long-Term Results* Results* Results* Results* Results* Results* Model* Revenue $131M $29.3M $30.6M $31.0M $31.2M $122M ≈$45M 53% - Gross Margin 47% 47% 47% 49% 53% 49% 55% Operating 32% - 52% 44% 40% 38% 39% 40% Expense 34% Operating Inc/ (5
Slide 40: Thank you
Thank you Louis DiNardo President and CEO and Ryan Benton Chief Financial Officer