RDA Microelectronics, Inc. Investor Fact Sheet - MeetMax
RDA Microelectronics, Inc. Investor Fact Sheet Fast Facts: As of Sept. 30, 2012
RDA Microelectronics, Inc. (NASDAQ: RDA) is a fabless semiconductor Company that designs,
Founded: 2004 IPO: Nov 2010 Exchange: NASDAQ: RDA ADS Outstanding: 47.9 million Market Cap: $509 million Cash & Inv.: $167.0 million Debt: None Revenue (ttm): $358 million Fiscal Year End: Dec. 31 Website: www.rdamicro.com Industry: Fabless Semiconductor Markets:
develops and markets wireless SoC and radio‐frequency (RF) semiconductors for cellular, connectivity and broadcast applications. The Company's product portfolio currently includes baseband, RF front‐ end modules, power amplifiers, transceivers, Bluetooth system‐on‐chip, Wi‐Fi, Bluetooth and FM combo chips, FM radio receivers, set‐top box tuners, analog mobile television receivers, CMMB mobile television receivers, walkie‐talkie transceivers and LNB satellite down converters. Customers are mainly located in our primary market, China. RDA’s products have been incorporated into mobile handsets, set‐top boxes, MP3 players and other wireless and consumer electronic devices and sold in China, Southeast Asia, India, the Middle East, Africa, Russia, Latin America and Europe. We have grown significantly since our inception and have become one of the leading suppliers of FM radio receivers, DVB‐S tuners, power amplifiers and Bluetooth system‐on‐chip to Chinese manufacturers.
Cellular Connectivity Broadcast
Management Team: Vincent Tai ‐ Co‐Founder, Chairman and CEO USI Inc., Co‐Founder UMAX Technologies, VP Excel Associates, Co‐Founder
Suran Wei ‐ Co‐Founder, Director and CTO Analogix Semi. Inc., VP Marvell, IC Design Manager LSI Corp., IC Design Engineer
Lily Dong ‐ CFO Hewlett‐Packard
Corporate Headquarters: 6/F, Bldg. 4, 690 Bibo Road Pudong, Shanghai 201203 People's Republic of China Phone: 86‐21‐5027‐1108
Company Contact: Lily Dong, CFO RDA Microelectronics [email protected]
Investor Relations Contact: Leanne Sievers, EVP Shelton Group Investor Relations [email protected]
RDA’s addition of baseband products through its March 2012 acquisition of baseband provider CoolSand expands the Company’s TAM and silicon content per handset, while simplifying the supply chain for RDA’s customers and enabling further market share gains for the Company. The worldwide baseband market is expected to be $17 billion by 2015 according to IDC.
Investment Highlights
Proven Market Share Leader #1 provider of PA, Bluetooth, FM Tuner and DVB‐S Tuner in China Strong track record of share gains against competitors in multiple product categories Advanced process technology migration and rapid design cycles Broad technology capabilities and IP portfolio
Efficient and Profitable Operating Model Highest revenue per employee among fabless IC companies Strong revenue growth and operating leverage drive profits and cash flow $167.0 million cash balance to support R&D and growth initiatives with no debt
Strong Growth Platform Expanding TAM with large growth opportunities in emerging markets, 3G and smartphones New products increase addressable silicon content per handset Expanding penetration of global Tier 1 OEMs
3Q 2012 Financial Highlights (non‐GAAP) Revenue of $109.3M, up 30.2% YoY 31.1% gross margin, exceeding the company’s mid‐point guidance range Non‐GAAP net income of $16.7M, $0.35 per ADS Declared a special one‐time cash dividend of $1.20 per ADS, totaling $55.9M $10.8 million cash flow from operations
Financial Highlights: RDA’s high revenue growth demonstrates the Company’s rapid market share gains and the expanding opportunities with Chinese handset manufacturers. The Company’s highly efficient operating model has produced consistent profitability and strong cash flows since 2008. $380.7 $400.0 Annual Revenue ($ million) $300.0
$288.9
114% CAGR 2007‐ 2011 $191.2
$200.0
*2012 revenue estimate based on midpoint of 4Q12 guidance
$118.4 $100.0 $0.0
$55.5 $13.7 2007
2008
2009
2010
2011
2012E*
Diverse Product Portfolio: RDA’s best‐in‐class technical abilities lead to superior product integration, reduced board size and lower cost. The Company’s core competency is the design of highly integrated, high‐performance radio‐frequency and mixed‐signal wireless SoCs. Cellular Front‐end Module (PA + Switch)
Transceiver
Baseband
Connectivity
Broadcast
Bluetooth
FM radio
Bluetooth + FM
Analog TV / CMMB
Wi‐Fi + Bluetooth + FM
DVB‐S Tuner
Walkie Talkie
LNB Down Converter
Why RDA Wins:
Operational efficiency with $1.1M revenue per employee vs. a peer group average of $530k
Geographic proximity and quick design response
Rapid product cycles
Optimized performance and cost balance
Best RF integration and superior performance
Revenue per Employee
$1,200.0 $1,000.0 $800.0 $600.0 $400.0 $200.0 RDA
BRCM
MRVL
SPRD
MTK
SWKS
RFMD
Source: Thomson, on a TTM Basis
Wide and Growing Customer Base:
With more than 1,000 customers, RDA works with every major handset manufacturer in China
Highly diversified revenue with the top 10 customers accounting for only 43% of total revenue
Works with every major handset manufacturer in China including the top handset brands and independent design houses
Increasing penetration of global tier one OEMs, including Samsung, Motorola and LG Innotek
Technology used in leading TD smartphone brands, including Huawei, RIMM, Samsung and ZTE
Less than 20% of RDA’s products are shipped domestically in China, while over 80% are used in products being shipped to emerging markets such as South East Asia, India, Middle East, Africa, Russia and Latin America
Growth Strategy:
Baseband Opportunity (RDA acquired Coolsand in March 2012):
Continued market share gains across all products
Broadens product offerings and revenue growth prospects
Increasing TAM through rapid product family expansion
Increases customer leverage and growth opportunities
Capitalizing on significant growth opportunities in 3G and smartphones
Increases silicon content value in move up market from 2G into smartphones and 3G
Increasing addressable silicon content per handset
Expanding penetration of global Tier 1 OEMs
Expands TAM to include worldwide baseband market, which is expected to be $17 billion by 2015, according to IDC
Expanding penetration into non‐handset market
China 3G & Smartphone ‐ 64 million TD‐SCDMA & WCDMA units shipped in 2011, growing to 218 million by 2015
Company Contact: Lily Dong, CFO RDA Microelectronics [email protected]
Investor Relations Contact: Leanne Sievers, EVP Shelton Group Investor Relations [email protected]
For a full list and description of risks and disclosures please refer to RDA’s periodic filings with the Securities and Exchange Commission, including the Company’s most recent reports on Form 20‐F and other filings. The Company assumes no obligation to update information contained in this document.
RDA Microelectronics, Inc. (NASDAQ: RDA) is a fabless semiconductor Company that designs,
Founded: 2004 IPO: Nov 2010 Exchange: NASDAQ: RDA ADS Outstanding: 47.9 million Market Cap: $509 million Cash & Inv.: $167.0 million Debt: None Revenue (ttm): $358 million Fiscal Year End: Dec. 31 Website: www.rdamicro.com Industry: Fabless Semiconductor Markets:
develops and markets wireless SoC and radio‐frequency (RF) semiconductors for cellular, connectivity and broadcast applications. The Company's product portfolio currently includes baseband, RF front‐ end modules, power amplifiers, transceivers, Bluetooth system‐on‐chip, Wi‐Fi, Bluetooth and FM combo chips, FM radio receivers, set‐top box tuners, analog mobile television receivers, CMMB mobile television receivers, walkie‐talkie transceivers and LNB satellite down converters. Customers are mainly located in our primary market, China. RDA’s products have been incorporated into mobile handsets, set‐top boxes, MP3 players and other wireless and consumer electronic devices and sold in China, Southeast Asia, India, the Middle East, Africa, Russia, Latin America and Europe. We have grown significantly since our inception and have become one of the leading suppliers of FM radio receivers, DVB‐S tuners, power amplifiers and Bluetooth system‐on‐chip to Chinese manufacturers.
Cellular Connectivity Broadcast
Management Team: Vincent Tai ‐ Co‐Founder, Chairman and CEO USI Inc., Co‐Founder UMAX Technologies, VP Excel Associates, Co‐Founder
Suran Wei ‐ Co‐Founder, Director and CTO Analogix Semi. Inc., VP Marvell, IC Design Manager LSI Corp., IC Design Engineer
Lily Dong ‐ CFO Hewlett‐Packard
Corporate Headquarters: 6/F, Bldg. 4, 690 Bibo Road Pudong, Shanghai 201203 People's Republic of China Phone: 86‐21‐5027‐1108
Company Contact: Lily Dong, CFO RDA Microelectronics [email protected]
Investor Relations Contact: Leanne Sievers, EVP Shelton Group Investor Relations [email protected]
RDA’s addition of baseband products through its March 2012 acquisition of baseband provider CoolSand expands the Company’s TAM and silicon content per handset, while simplifying the supply chain for RDA’s customers and enabling further market share gains for the Company. The worldwide baseband market is expected to be $17 billion by 2015 according to IDC.
Investment Highlights
Proven Market Share Leader #1 provider of PA, Bluetooth, FM Tuner and DVB‐S Tuner in China Strong track record of share gains against competitors in multiple product categories Advanced process technology migration and rapid design cycles Broad technology capabilities and IP portfolio
Efficient and Profitable Operating Model Highest revenue per employee among fabless IC companies Strong revenue growth and operating leverage drive profits and cash flow $167.0 million cash balance to support R&D and growth initiatives with no debt
Strong Growth Platform Expanding TAM with large growth opportunities in emerging markets, 3G and smartphones New products increase addressable silicon content per handset Expanding penetration of global Tier 1 OEMs
3Q 2012 Financial Highlights (non‐GAAP) Revenue of $109.3M, up 30.2% YoY 31.1% gross margin, exceeding the company’s mid‐point guidance range Non‐GAAP net income of $16.7M, $0.35 per ADS Declared a special one‐time cash dividend of $1.20 per ADS, totaling $55.9M $10.8 million cash flow from operations
Financial Highlights: RDA’s high revenue growth demonstrates the Company’s rapid market share gains and the expanding opportunities with Chinese handset manufacturers. The Company’s highly efficient operating model has produced consistent profitability and strong cash flows since 2008. $380.7 $400.0 Annual Revenue ($ million) $300.0
$288.9
114% CAGR 2007‐ 2011 $191.2
$200.0
*2012 revenue estimate based on midpoint of 4Q12 guidance
$118.4 $100.0 $0.0
$55.5 $13.7 2007
2008
2009
2010
2011
2012E*
Diverse Product Portfolio: RDA’s best‐in‐class technical abilities lead to superior product integration, reduced board size and lower cost. The Company’s core competency is the design of highly integrated, high‐performance radio‐frequency and mixed‐signal wireless SoCs. Cellular Front‐end Module (PA + Switch)
Transceiver
Baseband
Connectivity
Broadcast
Bluetooth
FM radio
Bluetooth + FM
Analog TV / CMMB
Wi‐Fi + Bluetooth + FM
DVB‐S Tuner
Walkie Talkie
LNB Down Converter
Why RDA Wins:
Operational efficiency with $1.1M revenue per employee vs. a peer group average of $530k
Geographic proximity and quick design response
Rapid product cycles
Optimized performance and cost balance
Best RF integration and superior performance
Revenue per Employee
$1,200.0 $1,000.0 $800.0 $600.0 $400.0 $200.0 RDA
BRCM
MRVL
SPRD
MTK
SWKS
RFMD
Source: Thomson, on a TTM Basis
Wide and Growing Customer Base:
With more than 1,000 customers, RDA works with every major handset manufacturer in China
Highly diversified revenue with the top 10 customers accounting for only 43% of total revenue
Works with every major handset manufacturer in China including the top handset brands and independent design houses
Increasing penetration of global tier one OEMs, including Samsung, Motorola and LG Innotek
Technology used in leading TD smartphone brands, including Huawei, RIMM, Samsung and ZTE
Less than 20% of RDA’s products are shipped domestically in China, while over 80% are used in products being shipped to emerging markets such as South East Asia, India, Middle East, Africa, Russia and Latin America
Growth Strategy:
Baseband Opportunity (RDA acquired Coolsand in March 2012):
Continued market share gains across all products
Broadens product offerings and revenue growth prospects
Increasing TAM through rapid product family expansion
Increases customer leverage and growth opportunities
Capitalizing on significant growth opportunities in 3G and smartphones
Increases silicon content value in move up market from 2G into smartphones and 3G
Increasing addressable silicon content per handset
Expanding penetration of global Tier 1 OEMs
Expands TAM to include worldwide baseband market, which is expected to be $17 billion by 2015, according to IDC
Expanding penetration into non‐handset market
China 3G & Smartphone ‐ 64 million TD‐SCDMA & WCDMA units shipped in 2011, growing to 218 million by 2015
Company Contact: Lily Dong, CFO RDA Microelectronics [email protected]
Investor Relations Contact: Leanne Sievers, EVP Shelton Group Investor Relations [email protected]
For a full list and description of risks and disclosures please refer to RDA’s periodic filings with the Securities and Exchange Commission, including the Company’s most recent reports on Form 20‐F and other filings. The Company assumes no obligation to update information contained in this document.
