RDA Revenue - MeetMax
RDA Microelectronics Jan 2013
@ 2011 RDA Microelectronics, Inc. The information contained herein is subject to change without notice
Disclaimer The information contained in our presentation is intended solely for your personal reference and is not an offer to buy or sell or a solicitation of an offer to buy or sell any security or instrument or to participate in any trading strategy. We make no representation or warranty (express or implied) as to the correctness or completeness of the presentation. The presentation may contain projections and forward-looking statements that reflect our current views with respect to future events and financial performance. These views are based on assumptions subject to various risks. No assurance can be given that future events will occur, that projections will be achieved, or that our assumptions are correct. Actual results may differ materially from those projected. We undertake no obligation to update or revise any forwardlooking statements to reflect subsequent events or circumstances. These materials are highly confidential, are being given solely for your personal use and may not be copied, reproduced, redistributed or passed on, directly or indirectly, to any other person in any manner. 2
RDA Overview Corporate Overview
Global End Markets • Wireless SoC and RF semiconductors for cellular, connectivity and broadcast
• Founded in 2004, IPO Nov 2010 • Broad handset portfolio: Baseband to PA
• Focus on high volume, high growth and low cost emerging market wireless communication demand
• 1,000+ Chinese and global customers • Proven market share leader in Chinese handset market
• Silicon content per unit increases from 2G to 3G to 4G, from feature phone to smartphone
RDA Revenue ($MM) Q3 2012 Financial Highlights
$380.7
114% CAGR 2007-2011
• Revenue $109.3 million, up 30.2% YoY
$288.9
• Margins: 31.1% gross, 15.8% operating
$191.2
• Non-GAAP net income $16.7 million, EPS $0.35 per diluted ADS
$118.4 $55.5 $13.7
• $167 million cash; no debt
2007
3
2008
2009
2010
2011
2012E
Investment Highlights Proven Capability to Become Market Share Leader Across All Key Products •
#1 provider of Power Amplifier, Bluetooth, FM Tuner, DVB-S Tuner in China
•
Strong track record of share gains against competitors in multiple markets
•
Applying same successful strategy to baseband market
World-Class Technology •
Broad technology capabilities and IP portfolio
•
Most advanced 2G baseband
•
Advanced process technology migration and rapid design cycles
Efficient and Profitable Operating Model •
Highest revenue per employee among fabless IC companies
•
Strong revenue growth and operating leverage drive profits and cash flow
Strong Growth Platform •
Expanding TAM with large growth opportunities in emerging markets
•
Increasing addressable silicon content per handset
•
Expanding penetration of global Tier 1 OEMs
•
Ability to extend into new markets successfully 4
Chinese Manufacturers-The largest handset provider in the world 810+MM Handsets By Chinese Manufacturers
2012E Global Mobile Handset Shipments
(Units in MM)
810
810
810
60 96 55
190
Other Emerging Markets ~29%
Developed Markets ~26%
639 620 599
80
80
171
Export
TD-SCDMA
Smart Phone
Domestic
WCDMA
Feature Phone
Chinese Manufacturers ~45%
CDMA
Source: iSuppli GSM/GPRS/EDGE
5
Increasing Silicon Content 2G Feature Phone
Smartphone
RF Front End Module + Bluetooth + FM + Transceiver
RF Front End Module + WiFi/Bluetooth/FM
Baseband
Baseband
$8.00 - $9.00 per unit
$2.00 - $2.30 per unit
6
Note: ASP as of today
China Market Share Leader Share of China Branded and White Label Market # 1 in Power Amplifier
# 1 in Bluetooth Chipset Entered: 2009
Entered: 2007
48% 20%
24%
#1
#3 1H ‘10
#1 #2
Q3 ‘12
1H ‘10
Q3 ’12
# 1 in DVB–S Tuner
# 1 in FM Tuner
Entered: 2007
Entered: 2007
Source: iSuppli, Q3012; percentages are approximate
7
46%
7
Why RDA Wins Vs. US/EU competitors
Vs. Taiwan competitors
Vs. Chinese Local
•
Geographic proximity
•
Geographic proximity
•
Economies of scale
•
Rapid product cycles
•
Stronger RF R&D
•
Superior RF performance
•
Quick design response
•
Best RF integration
•
Best RF integration
•
Optimized performance and cost balance
•
55nm technology
•
Strong balance sheet
Strong Operating Performance $1,200,000
•$1.1 million revenue per employee vs average $530,000
Revenue Per Employee
$1,000,000 $800,000
•Solid profit and cash flows fund R&D and process technology advancements
$600,000 $400,000 $200,000 $0 RDA BRCM MRVL SPRD
8
MTK SWKS RFMD
Baseband Product Roadmap 55nm
40nm
40nm
28nm
4G
RDA8890 LTE Smartphone
3G
RDA8850 WCDMA / EDGE Smart Phone
2.75G
RDA8880
WCDMA/TDSCDMA/EDG E Smart Phone
Quad core AP/ High performance
RDA8810 EDGE Smart Phone
RDA8853
2G/2.5G
RDA8860
Single Chip 260MHz GSM/GPRS 3-SIM with PSRAM and BT/FM Built-In
RDA8852 Single Chip 260MHz GSM/GPRS 3-SIM with PRAM Built-In
2012
RDA8851 Single Chip 260MHz GSM/GPR S 3-SIM with PSRAM and BT/FM on same die
9
2013
2014
Most Advanced Integration Product
Size
RDA8851
Company A 653X
10mm
16.5mm
Company B 6250
19.1mm
Integration
Integrate TRx + BB + PMIC + BT + FM SOC + Class-K Audio Amp, Save Saw
BB + SIP TRx
BB+BT+FM + SIP TRx + Save Saw
Chipset
Single chip
SIP, 2 dies
SIP, 2 dies
BOM
Integrated 32k crystal
External 32k crystal
Integrated 32k crystal
Process
55nm SOC
40nmBB + 152nm TRx
55nmBB + 110nm TRx
CPU
260MHz
240MHz
~200MHz
10
Product Roadmap (Ex. Baseband) WCDMA PA 800MHz/Band 5
900MHz/Band8
2100MHz/Band 1&1900MHz/Band2
RF Front Module (TD-SCDMA) 6*6;GSM/EDGE PA+TD PA+ Switch SP7T/cost down
Multi Mode Multi Band Front End Module 5*5 GSM/EDGE 1st 5*5 GSM/EDGE 2nd GSM/EDGE PA+SP7T,GSM+EDGA/WCDMA
RF Front End Module (GSM) LGA5*5
QFN5*5
QFN5*5/cost down
Wi-Fi/BT Front End Module 3*3/GaAs HBT
3*3/SOI
GPS LNA QFN1*1.5
Filter integrated
Switch QFN 2*2
QFN 1.6*1.6
QFN 1.5*1.5
LTE Transceiver TDD/FDD
Wi-Fi 40nm/802.11ac
40/28nm/802.11ad
Wi-Fi + BT + FM Combo 55nm/QFN 6*6/802.11.b/g
55nm/BT3.0/Wi-Fi direct/802.11.b/g/n
Wi-Fi + BT + FM + GPS Combo 55nm,802.11.b/g/n
Bluetooth Earphone 55nm,BT2.1
55nm,BT4.0
Walkie-Talkie 55nm/digital and analog interface
CMMB SOC QFN5*5/tuner+demod
LNB Down Converter QFN4*4/3rd generation
DVB-S2 Tuner 0.11um
Hybrid Tuner 55nm/2nd
55nm/3rd
DTV SOC 40nm/1st
2012 Cellular
Connectivity 11
40nm/2nd
3rd/3D capability
2013 Broadcast
Sample date
2014
Strong Customer Base Top Chinese Handset Brands
Top Chinese Independent Design Houses
Global Tier-1 OEMs
BBK
CKT
Samsung
Goinee
Eidolan
Motorola
Guohong
Hexing
Huawei
Huiyue
Konka
Longcheer
Sony
Lenovo
Huaqin
Huawei
Oppo
Diwave
RIMM
TCL/Alcatel
SIM
Samsung
Tianyu
TINNO
ZTE
ZTE
Wingtech
Lenovo
TD Smartphone Brands
With more than 1,000+ customers, RDA works with every major handset manufacturer in China Source: Company Data, iSuppli, 1H 2010
12
Strong Growth Drivers US$MM
Global Tier One
$100 $110
New Products
> $1 Billion
$400-$600 > $1 Billion 2012E Revenue*
• • • • • •
$381
Profitable Core Business
+
* Based on 4Q12 guidance mid-point
Baseband WiFi + BT+ FM + GPS WCDMA PA+GSM Edge PA+Switch Mobile TV Transceivers 218MM 3G units in China by 2015 based on iSuppli
New Product Introductions 13
+
Tier One Revenue Growth Expansion = Opportunity
Financial Performance
High Revenue Growth Annual Revenue ($MM) $380.7*
2007-2012* CAGR 94%
$288.9
$191.2
$118.4
$55.5 $13.7
2007 * 4Q12 Guidance Midpoint
2008
2009
2010 15
2011
2012E
Robust Quarterly Growth Quarterly Revenue ($MM)
16
Product and Customer Diversity Q3 2012 Revenues - Applications
Q3 2012 Revenues - Customers
Broadcast Connectivity Top 10 43%
All Others 57%
Cellular
17
Quarterly Gross Margin (%) Baseband Acquisition
*
* Guidance Midpoint
18
Healthy Balance Sheet As of Sep 30, 2012 Sep 30 2012
June 30 2012
$167.0
$159.0
Total Debt ($MMs)
--
--
Net Cash ($MMs)
$167.0
$159.0
Net Cash / ADR ($)
$3.66
$3.49
Accounts Receivable ($MMs)
$28.2
$21.5
Receivable Days
20
22
Inventory ($MMs)
$58.5
$44.6
Inventory Days
62
51
Accounts Payable Days
66
61
Cash Conversion Cycle
16
12
$181.9
$223.5
$3.99
$4.91
Cash and Investment ($MMs)
Shareholder Equity ($MMs) *Book Value / ADR ($)
(*) Book Value per ADR reduced comparing with last quarter is mainly due to the company declared a special one-time cash dividend of US $0.20 per ordinary share, or US$1.20 per ADR.
19
2012 Results and Guidance Q1 2012
Q2 2012
Q3 2012
Q4 2012 Guidance(3)
Revenue ($MMs)
$72.0
$94.4
$109.3
$100-$110
Gross Margin
35.9%
31.0%
31.1%
31.1%-32.1%
(1)
R&D % of Revenue
9.8%
10.5%
12.2%
SG&A % of Revenue (1)
3.4%
3.8%
3.2%
Operating Margin (1)
21.2%
16.8%
15.8%
Net Income ($MMs)
$15.1
$15.2
$16.7
1)
(2)
(1) R&D% of Revenue, SG&A % of Revenue, Operating Margin and Net Income are Non-GAAP number (2)As a result of the consolidation of the lower margin baseband revenue from our acquisition of Coolsand baseband (3)Q4 2012 guidance was provided on November 6, 2012
20
Summary China’s Market Share Leader Across Multiple Products •
#1 provider of Power Amplifier, Bluetooth, FM Tuner, DVB-S Tuner products
•
Diverse products sold to more than 600 customers
•
World-class technology driving share gains
Large and Growing Markets •
Increasing TAM through rapid product family expansion
•
Significant growth opportunities in 3G and smartphones
•
Increasing addressable silicon content per handset
•
Expanding penetration of global Tier 1 OEMs
Proven Profitable Growth Model •
Highest revenue per employee among fabless IC companies
•
Strong revenue growth
•
Highly efficient operating model
•
GAAP profitable since 2008, strong cash flows
•
$167 million cash position to support R&D and growth initiatives 21
Appendix
Appendix 1
Misconceptions = RDA Advantage China technology not world-class
• • • • •
The most highly integrated BB in the world Leading RF and wireless SOC designers Advanced process migration ahead of competition Proven single chip solutions Working with market leaders across all products
2G is a dying market
• • •
China handsets taking share from tier ones 3 out of 4 phones ship to emerging markets Mobile utilization in these regions driving volume
White label market won’t transition to 3G or smartphone successfully
• • • •
Government supporting transition to 3G TD is China 3G standard adopted by China Mobile Increased sales driven by features (WiFi, Mobile TV) Smartphone will double market again
Lack of financial controls in China
•
Use PriceWaterHouse for US GAAP audited financials since 2005 No material weakness on internal controls Compliance with SOX Section 404
• •
23
Appendix 2
Rapid Product Development Cycles Baseband Example
CT 1128
130nm CT 1129 CT 1130 CT 1131
130nm 130nm 130nm RDA 8852
RDA 8853
55nm RDA 8851
2G BB 2010 Sampling 24
55nm
2011 Development Time 24
55nm 2012
Appendix 3
Accelerating Process Technology Migration Example: Bluetooth 2009
2010
2011
130nm RDA 5868 RDA 5868+ RDA 5888S
110nm RDA 5868E 2nd Gen RDA 5868H 2nd Gen cost down RDA 5872 3rd Gen RDA 5888E
RDA 5876 RDA 5888H
Sampling
Mass Production
25
55nm
Appendix 6
World-Class Technology Innovation IPD for RF Front End Module
Multi Discretes
•
LNB Down Converter
Single Chip
Multi Discretes
World’s first IPD solution, 2-year technology lead over competition
•
Superior integration roadmap
•
Reduced size and cost
•
Leverage standard packaging technology
•
Improved yields and reliability 26
Single Chip
•
High frequency 10GHz single-chip solution
•
Reduced size and cost
•
Improved yields and reliability
Appendix 7
Partner with Best-in-Class Semi Peers TD-SCDMA Transceiver
•
DVB-S Tuner
•
Marvell PXA920 Platform with RDA 8207 TD transceiver for Samsung TD-SCDMA Smartphone
27
Silicon Lab Si 2167 with RDA 5812 for Samsung DTV selling Europe
Appendix 8
Seasoned Management Team Management
Position
Past Experience
Years of Experience
Vincent Tai
Co-Founder CEO, Chairman
Over 28 years
Shuran Wei
Co-Founder CTO
Over 20 years
Lily Dong
Liang Zhang
Jun Chen
Over 20 years
CFO
SVP, Engineering
Over 14 years
SVP, Engineering
Over 14 years
28
Appendix 9
RDA Partners Foundry
Packaging and Testing
29
@ 2011 RDA Microelectronics, Inc. The information contained herein is subject to change without notice
Disclaimer The information contained in our presentation is intended solely for your personal reference and is not an offer to buy or sell or a solicitation of an offer to buy or sell any security or instrument or to participate in any trading strategy. We make no representation or warranty (express or implied) as to the correctness or completeness of the presentation. The presentation may contain projections and forward-looking statements that reflect our current views with respect to future events and financial performance. These views are based on assumptions subject to various risks. No assurance can be given that future events will occur, that projections will be achieved, or that our assumptions are correct. Actual results may differ materially from those projected. We undertake no obligation to update or revise any forwardlooking statements to reflect subsequent events or circumstances. These materials are highly confidential, are being given solely for your personal use and may not be copied, reproduced, redistributed or passed on, directly or indirectly, to any other person in any manner. 2
RDA Overview Corporate Overview
Global End Markets • Wireless SoC and RF semiconductors for cellular, connectivity and broadcast
• Founded in 2004, IPO Nov 2010 • Broad handset portfolio: Baseband to PA
• Focus on high volume, high growth and low cost emerging market wireless communication demand
• 1,000+ Chinese and global customers • Proven market share leader in Chinese handset market
• Silicon content per unit increases from 2G to 3G to 4G, from feature phone to smartphone
RDA Revenue ($MM) Q3 2012 Financial Highlights
$380.7
114% CAGR 2007-2011
• Revenue $109.3 million, up 30.2% YoY
$288.9
• Margins: 31.1% gross, 15.8% operating
$191.2
• Non-GAAP net income $16.7 million, EPS $0.35 per diluted ADS
$118.4 $55.5 $13.7
• $167 million cash; no debt
2007
3
2008
2009
2010
2011
2012E
Investment Highlights Proven Capability to Become Market Share Leader Across All Key Products •
#1 provider of Power Amplifier, Bluetooth, FM Tuner, DVB-S Tuner in China
•
Strong track record of share gains against competitors in multiple markets
•
Applying same successful strategy to baseband market
World-Class Technology •
Broad technology capabilities and IP portfolio
•
Most advanced 2G baseband
•
Advanced process technology migration and rapid design cycles
Efficient and Profitable Operating Model •
Highest revenue per employee among fabless IC companies
•
Strong revenue growth and operating leverage drive profits and cash flow
Strong Growth Platform •
Expanding TAM with large growth opportunities in emerging markets
•
Increasing addressable silicon content per handset
•
Expanding penetration of global Tier 1 OEMs
•
Ability to extend into new markets successfully 4
Chinese Manufacturers-The largest handset provider in the world 810+MM Handsets By Chinese Manufacturers
2012E Global Mobile Handset Shipments
(Units in MM)
810
810
810
60 96 55
190
Other Emerging Markets ~29%
Developed Markets ~26%
639 620 599
80
80
171
Export
TD-SCDMA
Smart Phone
Domestic
WCDMA
Feature Phone
Chinese Manufacturers ~45%
CDMA
Source: iSuppli GSM/GPRS/EDGE
5
Increasing Silicon Content 2G Feature Phone
Smartphone
RF Front End Module + Bluetooth + FM + Transceiver
RF Front End Module + WiFi/Bluetooth/FM
Baseband
Baseband
$8.00 - $9.00 per unit
$2.00 - $2.30 per unit
6
Note: ASP as of today
China Market Share Leader Share of China Branded and White Label Market # 1 in Power Amplifier
# 1 in Bluetooth Chipset Entered: 2009
Entered: 2007
48% 20%
24%
#1
#3 1H ‘10
#1 #2
Q3 ‘12
1H ‘10
Q3 ’12
# 1 in DVB–S Tuner
# 1 in FM Tuner
Entered: 2007
Entered: 2007
Source: iSuppli, Q3012; percentages are approximate
7
46%
7
Why RDA Wins Vs. US/EU competitors
Vs. Taiwan competitors
Vs. Chinese Local
•
Geographic proximity
•
Geographic proximity
•
Economies of scale
•
Rapid product cycles
•
Stronger RF R&D
•
Superior RF performance
•
Quick design response
•
Best RF integration
•
Best RF integration
•
Optimized performance and cost balance
•
55nm technology
•
Strong balance sheet
Strong Operating Performance $1,200,000
•$1.1 million revenue per employee vs average $530,000
Revenue Per Employee
$1,000,000 $800,000
•Solid profit and cash flows fund R&D and process technology advancements
$600,000 $400,000 $200,000 $0 RDA BRCM MRVL SPRD
8
MTK SWKS RFMD
Baseband Product Roadmap 55nm
40nm
40nm
28nm
4G
RDA8890 LTE Smartphone
3G
RDA8850 WCDMA / EDGE Smart Phone
2.75G
RDA8880
WCDMA/TDSCDMA/EDG E Smart Phone
Quad core AP/ High performance
RDA8810 EDGE Smart Phone
RDA8853
2G/2.5G
RDA8860
Single Chip 260MHz GSM/GPRS 3-SIM with PSRAM and BT/FM Built-In
RDA8852 Single Chip 260MHz GSM/GPRS 3-SIM with PRAM Built-In
2012
RDA8851 Single Chip 260MHz GSM/GPR S 3-SIM with PSRAM and BT/FM on same die
9
2013
2014
Most Advanced Integration Product
Size
RDA8851
Company A 653X
10mm
16.5mm
Company B 6250
19.1mm
Integration
Integrate TRx + BB + PMIC + BT + FM SOC + Class-K Audio Amp, Save Saw
BB + SIP TRx
BB+BT+FM + SIP TRx + Save Saw
Chipset
Single chip
SIP, 2 dies
SIP, 2 dies
BOM
Integrated 32k crystal
External 32k crystal
Integrated 32k crystal
Process
55nm SOC
40nmBB + 152nm TRx
55nmBB + 110nm TRx
CPU
260MHz
240MHz
~200MHz
10
Product Roadmap (Ex. Baseband) WCDMA PA 800MHz/Band 5
900MHz/Band8
2100MHz/Band 1&1900MHz/Band2
RF Front Module (TD-SCDMA) 6*6;GSM/EDGE PA+TD PA+ Switch SP7T/cost down
Multi Mode Multi Band Front End Module 5*5 GSM/EDGE 1st 5*5 GSM/EDGE 2nd GSM/EDGE PA+SP7T,GSM+EDGA/WCDMA
RF Front End Module (GSM) LGA5*5
QFN5*5
QFN5*5/cost down
Wi-Fi/BT Front End Module 3*3/GaAs HBT
3*3/SOI
GPS LNA QFN1*1.5
Filter integrated
Switch QFN 2*2
QFN 1.6*1.6
QFN 1.5*1.5
LTE Transceiver TDD/FDD
Wi-Fi 40nm/802.11ac
40/28nm/802.11ad
Wi-Fi + BT + FM Combo 55nm/QFN 6*6/802.11.b/g
55nm/BT3.0/Wi-Fi direct/802.11.b/g/n
Wi-Fi + BT + FM + GPS Combo 55nm,802.11.b/g/n
Bluetooth Earphone 55nm,BT2.1
55nm,BT4.0
Walkie-Talkie 55nm/digital and analog interface
CMMB SOC QFN5*5/tuner+demod
LNB Down Converter QFN4*4/3rd generation
DVB-S2 Tuner 0.11um
Hybrid Tuner 55nm/2nd
55nm/3rd
DTV SOC 40nm/1st
2012 Cellular
Connectivity 11
40nm/2nd
3rd/3D capability
2013 Broadcast
Sample date
2014
Strong Customer Base Top Chinese Handset Brands
Top Chinese Independent Design Houses
Global Tier-1 OEMs
BBK
CKT
Samsung
Goinee
Eidolan
Motorola
Guohong
Hexing
Huawei
Huiyue
Konka
Longcheer
Sony
Lenovo
Huaqin
Huawei
Oppo
Diwave
RIMM
TCL/Alcatel
SIM
Samsung
Tianyu
TINNO
ZTE
ZTE
Wingtech
Lenovo
TD Smartphone Brands
With more than 1,000+ customers, RDA works with every major handset manufacturer in China Source: Company Data, iSuppli, 1H 2010
12
Strong Growth Drivers US$MM
Global Tier One
$100 $110
New Products
> $1 Billion
$400-$600 > $1 Billion 2012E Revenue*
• • • • • •
$381
Profitable Core Business
+
* Based on 4Q12 guidance mid-point
Baseband WiFi + BT+ FM + GPS WCDMA PA+GSM Edge PA+Switch Mobile TV Transceivers 218MM 3G units in China by 2015 based on iSuppli
New Product Introductions 13
+
Tier One Revenue Growth Expansion = Opportunity
Financial Performance
High Revenue Growth Annual Revenue ($MM) $380.7*
2007-2012* CAGR 94%
$288.9
$191.2
$118.4
$55.5 $13.7
2007 * 4Q12 Guidance Midpoint
2008
2009
2010 15
2011
2012E
Robust Quarterly Growth Quarterly Revenue ($MM)
16
Product and Customer Diversity Q3 2012 Revenues - Applications
Q3 2012 Revenues - Customers
Broadcast Connectivity Top 10 43%
All Others 57%
Cellular
17
Quarterly Gross Margin (%) Baseband Acquisition
*
* Guidance Midpoint
18
Healthy Balance Sheet As of Sep 30, 2012 Sep 30 2012
June 30 2012
$167.0
$159.0
Total Debt ($MMs)
--
--
Net Cash ($MMs)
$167.0
$159.0
Net Cash / ADR ($)
$3.66
$3.49
Accounts Receivable ($MMs)
$28.2
$21.5
Receivable Days
20
22
Inventory ($MMs)
$58.5
$44.6
Inventory Days
62
51
Accounts Payable Days
66
61
Cash Conversion Cycle
16
12
$181.9
$223.5
$3.99
$4.91
Cash and Investment ($MMs)
Shareholder Equity ($MMs) *Book Value / ADR ($)
(*) Book Value per ADR reduced comparing with last quarter is mainly due to the company declared a special one-time cash dividend of US $0.20 per ordinary share, or US$1.20 per ADR.
19
2012 Results and Guidance Q1 2012
Q2 2012
Q3 2012
Q4 2012 Guidance(3)
Revenue ($MMs)
$72.0
$94.4
$109.3
$100-$110
Gross Margin
35.9%
31.0%
31.1%
31.1%-32.1%
(1)
R&D % of Revenue
9.8%
10.5%
12.2%
SG&A % of Revenue (1)
3.4%
3.8%
3.2%
Operating Margin (1)
21.2%
16.8%
15.8%
Net Income ($MMs)
$15.1
$15.2
$16.7
1)
(2)
(1) R&D% of Revenue, SG&A % of Revenue, Operating Margin and Net Income are Non-GAAP number (2)As a result of the consolidation of the lower margin baseband revenue from our acquisition of Coolsand baseband (3)Q4 2012 guidance was provided on November 6, 2012
20
Summary China’s Market Share Leader Across Multiple Products •
#1 provider of Power Amplifier, Bluetooth, FM Tuner, DVB-S Tuner products
•
Diverse products sold to more than 600 customers
•
World-class technology driving share gains
Large and Growing Markets •
Increasing TAM through rapid product family expansion
•
Significant growth opportunities in 3G and smartphones
•
Increasing addressable silicon content per handset
•
Expanding penetration of global Tier 1 OEMs
Proven Profitable Growth Model •
Highest revenue per employee among fabless IC companies
•
Strong revenue growth
•
Highly efficient operating model
•
GAAP profitable since 2008, strong cash flows
•
$167 million cash position to support R&D and growth initiatives 21
Appendix
Appendix 1
Misconceptions = RDA Advantage China technology not world-class
• • • • •
The most highly integrated BB in the world Leading RF and wireless SOC designers Advanced process migration ahead of competition Proven single chip solutions Working with market leaders across all products
2G is a dying market
• • •
China handsets taking share from tier ones 3 out of 4 phones ship to emerging markets Mobile utilization in these regions driving volume
White label market won’t transition to 3G or smartphone successfully
• • • •
Government supporting transition to 3G TD is China 3G standard adopted by China Mobile Increased sales driven by features (WiFi, Mobile TV) Smartphone will double market again
Lack of financial controls in China
•
Use PriceWaterHouse for US GAAP audited financials since 2005 No material weakness on internal controls Compliance with SOX Section 404
• •
23
Appendix 2
Rapid Product Development Cycles Baseband Example
CT 1128
130nm CT 1129 CT 1130 CT 1131
130nm 130nm 130nm RDA 8852
RDA 8853
55nm RDA 8851
2G BB 2010 Sampling 24
55nm
2011 Development Time 24
55nm 2012
Appendix 3
Accelerating Process Technology Migration Example: Bluetooth 2009
2010
2011
130nm RDA 5868 RDA 5868+ RDA 5888S
110nm RDA 5868E 2nd Gen RDA 5868H 2nd Gen cost down RDA 5872 3rd Gen RDA 5888E
RDA 5876 RDA 5888H
Sampling
Mass Production
25
55nm
Appendix 6
World-Class Technology Innovation IPD for RF Front End Module
Multi Discretes
•
LNB Down Converter
Single Chip
Multi Discretes
World’s first IPD solution, 2-year technology lead over competition
•
Superior integration roadmap
•
Reduced size and cost
•
Leverage standard packaging technology
•
Improved yields and reliability 26
Single Chip
•
High frequency 10GHz single-chip solution
•
Reduced size and cost
•
Improved yields and reliability
Appendix 7
Partner with Best-in-Class Semi Peers TD-SCDMA Transceiver
•
DVB-S Tuner
•
Marvell PXA920 Platform with RDA 8207 TD transceiver for Samsung TD-SCDMA Smartphone
27
Silicon Lab Si 2167 with RDA 5812 for Samsung DTV selling Europe
Appendix 8
Seasoned Management Team Management
Position
Past Experience
Years of Experience
Vincent Tai
Co-Founder CEO, Chairman
Over 28 years
Shuran Wei
Co-Founder CTO
Over 20 years
Lily Dong
Liang Zhang
Jun Chen
Over 20 years
CFO
SVP, Engineering
Over 14 years
SVP, Engineering
Over 14 years
28
Appendix 9
RDA Partners Foundry
Packaging and Testing
29
