Gcs Holdings, Inc. · TPEX:4991
Gcs — Q1 2019 Earnings Presentation
23 slides from Gcs's earnings presentation, May 10, 2019
Slide 1: Q1 2019 Quarterly Online Investor Conference
環宇 芯系天下 March 3, 2016 Q1 2019 Quarterly Online Investor Conference (線上法說會) May 10, 2019
Slide 2: Disclaimer Statement
Disclaimer Statement This presentation includes forward-looking statements. All statements, other than statements of historical facts, that address activities, events or developments that GCS Holdings, Inc. expects or anticipates will or may occur in the future (including but not limited to projecti
Slide 3: Agenda
Agenda Opening: Brian Ann, CEO & President Financial Section: Grace Li, Director & Special Assistant to CEO Market Overview: Simon Yu, Senior VP and General Manager, Worldwide Sales & Marketing and Component Business Realizing the Potential: Brian Ann, CEO & President Q&A: All 2
Slide 4: Financial Section
FINANCIAL SECTION 3
Slide 5: Statements of Comprehensive Income - QoQ
Statements of Comprehensive Income - QoQ (in NT$ thousands except EPS) 1Q19 1Q19 1Q19 4Q18 1Q18 Over Over 4Q18 1Q18 Net Operating Revenue 377,909 436,367 479,020 -13.4% -21.1% Gross Profit 136,060 179,877 214,304 -24.4% -36.5% Gross Margin 36.0% 41.2% 44.7% Operating Expenses (122,480) (121,545) (12
Slide 6: Revenue Mix % vs Gross Margin - QoQ
Revenue Mix % vs Gross Margin - QoQ 5
Slide 7: KGD Revenue Mix - QoQ
KGD Revenue Mix - QoQ KGD Revenue Analysis-By Application 64% 70% 60% 53% 50% 47% 48% 41% 40% 40% 6 36% 32% % % % 30% a % 20% % % 10% 0% 20 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2017 2017 2017 2018 2018 2018 2018 2019 1m DC/AOC mPON mLTE/Ethernet and Other
Slide 8: Non-operating Income and Expenses - QoQ
Non-operating Income and Expenses- QoQ (in NT$ thousands) 1Q19 1Q19 1Q19 4Q18 1Q18 Over Over 4Q18 1Q18 Other Income 5,204 2,642 1,696 97.0% 206.8% Other Gains and Losses Net Gain or (losses) on financial liabilities at fair value - - 2,322 - -100.0% through profit or loss Net currency exchange gain
Slide 9: Balance Sheet Highlight & Key Indices
Balance Sheet Highlight & Key Indices Selected Items from Balance Sheet (in NT$ thousands) 1Q19 4Q18 1Q18 Amount % Amount % Amount % Cash and Cash Equivalent 1,709,872 45% 1,512,863 44% 1,215,937 40% Accounts Receivable and Notes Receivable 272,740 7% 212,933 6% 267,580 9% Inventory 340,801 9% 330,6
Slide 10: Cash Flows
Cash Flows (in NT$ thousands) 1Q19 4Q18 1Q18 Beginning Balance 1,512,863 1,392,649 1,119,712 Cash from Operating Activities (7,724) 161,850 149,134 Acquisition of financial assets at fair value through other comprehensive income (164,000) - - Acquisition of property, plant and equipment (22,209) (39
Slide 11: Market Overview
MARKET OVERVIEW 10
Slide 12: Global Optical Transceiver Market
Global Optical Transceiver Market Slower than expected growth in 2017-2018 CAGR of 14% from 2003-2016 2019 – still slow, but 2H is better than 1H What is the CAGR going forward to 2024? What it takes to drive growth: - Deployment of 400G (8x50, 2x200 or 4x100) Ethernet modules (need reliab
Slide 13: 5G is coming sooner than expected?
5G is coming sooner than expected? Huawei – 40 5G network construction as of April 2019 (6 in Asia Pacific, 10 in Middle East, 23 in Europe) Verizon activated 5G fixed wireless mobile broadband network (Chicago and Minneapolis) – April 3, 2019 Commercial launch of 5G mobile services by SK Tele
Slide 14: Customer and Technology Activities
Customer and Technology Activities Data Center momentum continuing – 100G in volume and 200G/400G starts production Major customers evaluating GCS 25G VCSEL (for 100G/200G/400G) In discussion with major customers on GaN 6” production for base stations SMART BAW process in final development w
Slide 15: Growth Strategies
Growth Strategies Developing Next Generation Move to 6” Technologies and Products volume production Increase Focus on Opto Move to 6” Foundry Business volume production Higher Revenue per Wafer 3D VCSEL, PIC, ADAS….. Niche RF Outsource Commodity GCS owned 5G Foundry (4” wafer) RF Foundry (6” wafer
Slide 16: Realizing the Potential
Realizing the Potential May 10, 2019 15
Slide 17: Status of the Industry
Status of the Industry The compound semiconductor (CS) industry revenue is dominated by IDM’s. The foundry is not yet an industry as WIN is the only game in town. – The foundry service option is limited – The fabless cannot grow to become giants like Qualcomm in the silicon world. – The IDM’s ha
Slide 18: Future Growth Opportunities
Future Growth Opportunities Smart Devices Smarter and Greener 5G Networks Vehicles 3D Sensing, Lasers, Detectors, Power Amplifiers, Power Amplifiers, Power Converters Filters, optical components, Filters WiFi Antenna Switches May 10, 2019 17
Slide 19: The Business Model Must Evolve
The Business Model Must Evolve May 10, 2019 18
Slide 20: Evolving CS Foundry to Support Growth
Evolving CS Foundry to Support Growth Offering all customers a viable second foundry option like the silicon foundry industry – Driving efficiency and cost – Driving technologies Growing foundry market size together by increasing IDMs’ outsourcing – Creating the CS fabless giants like Qualcomm,
Slide 21: Strategies in the New World Dynamics
Strategies in the New World Dynamics Trade war will (continue to) be a fact of life. China will be driving the 5G. Self-driving car is not “if” but “when”. Removing the capacity constraints to capture the growth opportunities – Continue US HQ as the technology center and the base for low- vo
Slide 22: Q&A
Qk&A 21
Slide 23: For further inquiry
環宇芯系天下 For further inquiry investors@gcsincorp.com 22