Exar — Investor Presentation (March 2012)
36 slides from Exar's investor presentation, Mar 12, 2012
Slide 1: Presented by Louis DiNardo and Kevin Bauer
Presented by: Louis DiNardo – President & CEO Kevin Bauer – SVP & CFO March 12, 2012 Exhibit 99.1
Slide 2: EXAR Powering Connectivity
EXAR Powering Connectivity
Slide 3: Management Team
4 March 12, 2012 Management Team • Louis DiNardo CEO – 30 Years Experience in High Performance Analog Mixed-Signal; CEO, President and COO, VP/GM • Todd Smathers SVP Ops – 30 Years Experience in High Performance Analog Mixed-Signal; SVP Ops, VP/GM • Carlos Laber SVP R&D – 30 Years Experience in High
Slide 4: EXAR Powering Connectivity
EXAR Powering Connectivity
Slide 5: EXAR Powering Connectivity
EXAR Powering Connectivity
Slide 6: Revenue, Gross Profit, Gross Margin
10 March 12, 2012 52% 52% 54% 54% 52% 51% 50% 46% 49% 49% 48% *Note: Non-GAAP Gross Profit & Non-GAAP Gross Margin Revenue, Gross Profit*, Gross Margin* Fiscal Quarters: FYE March 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% - 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 Gr Profit Revenue Gr Mar
Slide 7: Operating Expense, Operating Income (Loss)
11 March 12, 2012 Operating Expense*, Operating Income (Loss)* *Note: Non-GAAP Operating Expense & Non-GAAP Operating Income (Loss) Fiscal Quarters: FYE March (5) - 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 OpEx OpInc
Slide 8: EXAR Powering Connectivity
EXAR Powering Connectivity
Slide 9: Product Line Expansion – Power Management
19 March 12, 2012 Power Management Programmable Power DC/DC Converter DC Controller Charge Pump LED Controllers Product Line Expansion – Power Management Required Additions Design Engineering Product Engineering Test Engineering Applications Engineering Process Development Mask Cost Wafer Cost TVS
Slide 10: Revenue – Power Management
20 March 12, 2012 Revenue – Power Management Fiscal Quarters: FYE March - 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12
Slide 11: Market TAM & Segment SAM – Power Management
21 March 12, 2012 2011 $14B TAM Market TAM & Segment SAM – Power Management IMS Research (Does not include USB switches – Analog products) Digital Power SAM
Slide 12: Focus Application SAMs – Power Management
22 March 12, 2012 Application Market Sets/yr Exar SAM/set Exar SAM Top Customers STB 150M $2 $300M Pace, Motorola, Technicolor Switches/Routers 20M $5 $100M Cisco, HP, Alcatel, Huawei MFP 10M $5 $50M HP, Canon, Konica Minolta Server 10M $5 $50M HP, IBM, Dell IP Camera 20M $2 $40M Siemens, Johnson, P
Slide 13: Products – Power Management XRP7724 Block Diagram
24 March 12, 2012 StandBy LDO GPIO Enable I²C Configuration Register set Flash Memory Internal LDOs 4 Channel Digital PWM & PFM Control Engine Gate Drivers Current Sensing HS Charge Pump Vout Feedback Gate Drivers Current Sensing HS Charge Pump Vout Feedback Gate Drivers Current Sensing HS Charge Pu
Slide 14: Set-Top Box Point of Load Requirements
25 March 12, 2012 Functional Block Products Exar Part Numbers Set-Top Box - Point of Load Requirements Power Supply Unit (Sequencing, Monitoring) Programmable Buck controllers XRP7713, XRP7714 Power Supply Unit (DC/DC POLs) Buck regulators, LDOs SPX3819, SPX1117, SPX5205, SP6260, SP7662 XRP7664, XRP
Slide 15: Competition – Power Management
26 March 12, 2012 Competitor Competitor’s Strengths Exar’s Advantage Competition – Power Management •Leader in low current POL •Captive low cost process •Differentiated portfolio •Brand in focus markets •Strong Asian Presence •Incumbents in large Asia ODMs •Differentiated Portfolio •US Brand •Low Co
Slide 16: Product Line Expansion – Communications
27 March 12, 2012 Comm IC’s SONET E1/T1 Transport Product Line Expansion - Communications Discontinued Development Program Q4 FY’12
Slide 17: Revenue – Communications
28 March 12, 2012 Revenue - Communications Fiscal Quarters: FYE March - 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12
Slide 18: Product Line Expansion – Data & Storage
29 March 12, 2012 Data Storage SoC Product Line Expansion – Data & Storage ASSP
Slide 19: Revenue – Data & Storage
30 March 12, 2012 Revenue – Data & Storage Fiscal Quarters: FYE March - 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12
Slide 20: Focus Application SAMs – Data & Storage
31 March 12, 2012 Application SAM 2012 Industry Leaders Enterprise Storage $77.5M EMC, Hitachi, IBM, NetApp Big Data/ Data Warehousing $79.3M Teradata, Oracle, HP, IBM Cloud Storage $99.8M Amazon, Microsoft, Rackspace Cloud Computing $63.3M IBM, Google, Salesforce Network Security $137.2M Cisco, Jun
Slide 21: Application Example – Data & Storage
32 March 12, 2012 HBA Processor / Chipset PCI-E PCI-E DX 18xx DX 17xx DX 18xx DX 17xx Disk Interface Backup Solution with DX17xx or 18xx Card Application Example - Data & Storage SERVER STORAGE ARRAY
Slide 22: Application Example – Data & Storage
33 March 12, 2012 CPU Sub- System Memory PCI-E Secure Cloud WAN I/F 1GbE/10GbE NIC PCI-E WAN Interface PCI-E PCI-E DX 18xx DX 17xx DX 18xx DX 17xx 820x 820x SSL or IPsec VPN Gateway Secure Cloud Corporate Data Center or or Remote Data Center Home Office Application Example - Data & Storage
Slide 23: Competition – Data & Storage
34 March 12, 2012 Competitor Competitor’s Strengths Exar’s Advantages Competition - Data & Storage X86 Multi-core Processors • Compute capabilities increasing as number of CPU cores increases • Low cost: Riding Moore’s Law • Optimizes application performance • Higher security/compression performance
Slide 24: Product Line Expansion – Connectivity
35 March 12, 2012 Connectivity UART Interface Product Line Expansion - Connectivity Bridges
Slide 25: Revenue – Connectivity
36 March 12, 2012 Revenue - Connectivity Fiscal Quarters: FYE March - 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12
Slide 26: Market TAM & Segment SAM – Connectivity
37 March 12, 2012 Other Digital TAM: $1 Billon Connectivity/Bridges TAM: $2.1B SAM: $500M UARTs TAM/SAM: $130M Serial Transceivers TAM/SAM: $500M Market TAM & Segment SAM - Connectivity Other Analog Other Analog TAM: $1.7 Billon TAM: $1.7 Billon Other Digital TAM: $1 Billon Worldwide Interface TAM:
Slide 27: Application Examples – Connectivity
38 March 12, 2012 Application Examples - Connectivity Servers Blade Servers cPCI Servers Consumer Set Top Box HDTV MFP Tablets Industrial/POS Communications Console Servers KVM Switches Wireless Transceiver GPS/Telematics Network Routers Embedded Systems PC104/104+ ISA PCI MB
Slide 28: Competition – Connectivity
39 March 12, 2012 Competitor Competitor’s Strengths Exar Advantages Competition - Connectivity •Brand recognition •Broad portfolio •Customer engagements •Broader UART portfolio •Dual/Multi-protocol Serial Xcvrs •Brand recognition •Customer engagements •Broader UART portfolio •Product Synergy (UARTs
Slide 29: Product Line Expansion – Standard Analog
40 March 12, 2012 Analog Mixed-Signal Product Line Expansion – Standard Analog New Development Benchmarks New Product Definition 120 DAYS New Product Development 180 DAYS New Product Design Wins 180 DAYS RTC REF AMP ADC DAC DCP
Slide 30: Growth Plans and Financial Model
Growth Plans and Financial Model
Slide 31: Product Line Expansion
42 March 12, 2012 Power Management Programmable Power DC/DC Converter DC Controllers Charge Pump LED Controllers Data Storage SoC Connectivity UART Interface Bridges Analog Mixed-Signal Comm IC’s SONET E1/T! Product Line Expansion Diversified Product Offering with Segments of High Growth and High Ma
Slide 32: Revenue by Geography & Channel
44 March 12, 2012 EMEA 16% China 34% Asia (ex-China) 27% Americas 23% Direct 21% POP (sell-in) 21% POS (sell through) 58% Revenue by Geography & Channel Note: represents FY 2011 results
Slide 33: P&L Quarterly Targets – Non-GAAP
45 March 12, 2012 3Q FY12 Dec-2011 Current Breakeven² Target Breakeven Long Term Operating Model P&L Quarterly Targets – Non-GAAP Revenue $29.7M ~$34-35M ~$28M ~$43M Gross Margin¹ 48.4% 47% 50% 55% R&D¹ 27.9% SG&A¹ 28.7% Operating Expense¹ 56.6% 47% 50% 32% Operating Inc. / (Loss)¹ (8.2)% Breakeven
Slide 34: Appendix: GAAP to Non-GAAP reconciliations
Appendix GAAP to Non-GAAP reconcilliations
Slide 35: Reconciliation of Unaudited GAAP to Non-GAAP Results (1/2)
47 March 12, 2012 Reconciliation of Unaudited GAAP to Non-GAAP Results (1/2) (Thousands except per share amounts) NINE MONTHS ENDED JUN 27, SEP 26, DEC 26, MAR 27, JULY 3, OCT 2, JAN 1, JAN 1, MAR 27, MAR 28, Net Sales 39,636 $ 37,233 $ 35,365 $ 33,771 $ 36,978 $ 36,120 $ 29,679 $ 102,777 $ 146,005
Slide 36: Reconciliation of Unaudited GAAP to Non-GAAP Results (2/2)
48 March 12, 2012 Reconciliation of Unaudited GAAP to Non-GAAP Results (2/2) (Thousands except per share amounts) NINE MONTHS ENDED JUN 27, SEP 26, DEC 26, MAR 27, JULY 3, OCT 2, JAN 1, JAN 1, MAR 27, MAR 28, Net Sales 39,636 $ 37,233 $ 35,365 $ 33,771 $ 36,978 $ 36,120 $ 29,679 $ 102,777 $ 146,005