Alchip 2Q16 investor meeting eng [????] · 2Q16 revenue came at US$25.2M, down %12% QoQ and 11% YoY...

14
Alchip Technologies (3661 TT)

Transcript of Alchip 2Q16 investor meeting eng [????] · 2Q16 revenue came at US$25.2M, down %12% QoQ and 11% YoY...

Page 1: Alchip 2Q16 investor meeting eng [????] · 2Q16 revenue came at US$25.2M, down %12% QoQ and 11% YoY respectively ISP kept on strong shipment, however, bitcoin mining chip shipment

Alchip Technologies

(3661 TT)

Page 2: Alchip 2Q16 investor meeting eng [????] · 2Q16 revenue came at US$25.2M, down %12% QoQ and 11% YoY respectively ISP kept on strong shipment, however, bitcoin mining chip shipment

2

Proprietary and Confidential Information

Safe Harbor Disclaimer

This presentation contains forward-looking statements, including statements about business outlook and strategy, and statements about historical results that may suggest trends for our business. These statements are based on estimates and information available to us at the time of this presentation and are not guarantees of future performance. Actual results could differ materially from our current expectations as result of many factors, including: our financial performance, including our net revenue, cost of revenue, operating expenses and ability to sustain profitability; our planned capital expenditures; our ability to expand our customer base; our ability to expand our product and service offerings; the impact of seasonality on our business; our ability to remediate the material weaknesses and significant deficiencies in our internal control over financial reporting; our ability to stay abreast of modified or new laws applying to our business; and our spending of the net proceeds from this offering. Except as required by law, we undertake no obligation to update any forward-looking statements, whether as a result of new information, future events, or otherwise.

Page 3: Alchip 2Q16 investor meeting eng [????] · 2Q16 revenue came at US$25.2M, down %12% QoQ and 11% YoY respectively ISP kept on strong shipment, however, bitcoin mining chip shipment

3

Proprietary and Confidential Information

Company basic information

�Founded: February 2003

�Chairman: Kinying Kwan, CEO: Johnny Shen

�Business: ASIC design service and manufacturing

�Employee: 230-240

�Capital: 615 million NT dollars

ChinaSales/ SoC Design

CenterShanghai & Wuxi

ChinaSales/ SoC Design

CenterShanghai & Wuxi

JapanSales/ SoC Design

CenterShin Yokohama

JapanSales/ SoC Design

CenterShin Yokohama

North AmericaSales OfficeSilicon Valley

North AmericaSales OfficeSilicon Valley

KoreaSales officeSeoul

KoreaSales officeSeoul

TaiwanHeadquarter

TaipeiManufacturing

CenterHsinchu

TaiwanHeadquarter

TaipeiManufacturing

CenterHsinchu

Page 4: Alchip 2Q16 investor meeting eng [????] · 2Q16 revenue came at US$25.2M, down %12% QoQ and 11% YoY respectively ISP kept on strong shipment, however, bitcoin mining chip shipment

4

Proprietary and Confidential Information

2015 Qty P&L statement

US$( 000) 1Q16 QoQ (%) 2Q16 QoQ (%) YoY(%) 1H16 YoY (%)

Revenue 28,645 4.8 25,148 -12.2 -11.1 53,793 6.3

COGs 23,482 25.4 24,572 4.6 10.6 48,054 15.5

Gross Profit 5,163 -32.9 575 -88.9 -90.5 5,739 -36.3

Op. Exp 5,184 -19.2 6,544 26.2 27.5 11,729 18.3

Op. Income -21 n.m. -5,969 n.m n.m -5,990 n.m.

Non. Op. 297 48.1 -926.4 n.m n.m -629.0 n.m.

Pre-Tax Profit 277 -88.4 -6,896 n.m n.m -6,619 n.m.

Income Tax 12 -33.5 498 3964.3 -48.7 510 -20.5

Net income 264 -88.9 -7,393 n.m n.m -7,129 n.m.

EPS (NT$) 0.14 -3.94 -3.8

Page 5: Alchip 2Q16 investor meeting eng [????] · 2Q16 revenue came at US$25.2M, down %12% QoQ and 11% YoY respectively ISP kept on strong shipment, however, bitcoin mining chip shipment

5

Proprietary and Confidential Information

1H16 Operation Recap

1H16 revenue came at US$53.7M, up 6.3% YoY

� Revenue growth in 1H16 due mainly to the amplified shipment

of TW customer’s ISP product

� China Bit-coin customer also contributed 1H16 revenue growth

2Q16 revenue came at US$25.2M, down %12% QoQand 11% YoY respectively

� ISP kept on strong shipment, however, bitcoin mining chip

shipment slowed down on bitcoin system halving

� D&P revenue was weak in 2Q due to sluggish industry outlook.

Some design project milestone delayed to 3Q

Page 6: Alchip 2Q16 investor meeting eng [????] · 2Q16 revenue came at US$25.2M, down %12% QoQ and 11% YoY respectively ISP kept on strong shipment, however, bitcoin mining chip shipment

6

Proprietary and Confidential Information

1H16 Operation Recap (cont.)

2Q16 posted net loss of US$7.4M, QoQ, YoY from profit to loss

� Alchip’s major bitcoin customer KnC Miner declared bankruptcy in the end of May, creating financial loss of around US$3.4M

� Design revenue is slow in 2Q16, causing margin impact

Page 7: Alchip 2Q16 investor meeting eng [????] · 2Q16 revenue came at US$25.2M, down %12% QoQ and 11% YoY respectively ISP kept on strong shipment, however, bitcoin mining chip shipment

7

Proprietary and Confidential Information

KnC Miner’s Bankruptcy

Direct financial impact

� Recognized total of US$2.4M operational loss for AR and inventory

� Recognized total of US$1.03M non-operational loss for stake investment

Indirect operational impact

� Enhance our risk control to other bitcoin customers

� Revising down future potential contribution of bitcoin related business

� It posted influence to other bitcoin customers placing orders

Page 8: Alchip 2Q16 investor meeting eng [????] · 2Q16 revenue came at US$25.2M, down %12% QoQ and 11% YoY respectively ISP kept on strong shipment, however, bitcoin mining chip shipment

8

Proprietary and Confidential Information

Revenue breakdown by application

Quarterly breakdown 14-1H16 yearly breakdown

8%10%

13%

5%

23%

32%

28%

61%

23%

36%

20%

7%

46%

22%

39%

28%

0%

20%

40%

60%

80%

100%

3Q15 4Q15 1Q16 2Q16

TV consumer networking niche,market

50%

12%

9%

8%

27%

43%

8%

29%

14%

34%32%

33%

0%

20%

40%

60%

80%

100%

2014 2015 1H16

TV consumer networking niche,market

Page 9: Alchip 2Q16 investor meeting eng [????] · 2Q16 revenue came at US$25.2M, down %12% QoQ and 11% YoY respectively ISP kept on strong shipment, however, bitcoin mining chip shipment

9

Proprietary and Confidential Information

Revenue breakdown by process node

Quarterly breakdown 14-1H16 yearly breakdown

Advanced technology node means 40nm or better

8%

11%12% 13%

23%

32%

24%

16%

39%

29%44%

64%

31%

28%

20%

7%

0%

20%

40%

60%

80%

100%

3Q15 4Q15 1Q16 2Q16

55nm,or,lower 40nm 28nm 20/16,or,higher

26%

13% 13%

40%

29%

20%

25%

34%53%

9%

25%

14%

0%

20%

40%

60%

80%

100%

2014 2015 1H16

55nm,or,lower 40nm 28nm 20/16,or,higher

Page 10: Alchip 2Q16 investor meeting eng [????] · 2Q16 revenue came at US$25.2M, down %12% QoQ and 11% YoY respectively ISP kept on strong shipment, however, bitcoin mining chip shipment

10

Proprietary and Confidential Information

Revenue breakdown by region

Quarterly breakdown 14-1H16 yearly breakdown

32%

18% 18%

21%

19%

41%

31%

12%

7%

7%

13%

1%

22%

30%

25%

61%

20%

3%

13%

4%

0%

20%

40%

60%

80%

100%

3Q15 4Q15 1Q16 2Q16

Japan China Korea Taiwan EU/US/Others

42%

22%20%

14%

29%

23%

19%

12%

7%

8%

26%

42%

17%

12%

9%

0%

20%

40%

60%

80%

100%

2014 2015 1H16

Japan China Korea Taiwan EU/US/Others

Page 11: Alchip 2Q16 investor meeting eng [????] · 2Q16 revenue came at US$25.2M, down %12% QoQ and 11% YoY respectively ISP kept on strong shipment, however, bitcoin mining chip shipment

11

Proprietary and Confidential Information

2H16 Business outlook

Expect significant quarterly revenue growth in 3Q16profit margin would recover

� Continuous shipment of handset camera used ISP product

� Starting shipment of amusement machine main chip for JP customer

� Bitcoin mining chip shipment to China customer to recover in 3Q16

Expected 4Q16 revenue to post mild seasonal slide, margin could improve on better revenue mix

� Shipment of consumer electronic products to decrease on seasonal factor

� Compensated by increasing shipment of JP amusement machine main chip

Page 12: Alchip 2Q16 investor meeting eng [????] · 2Q16 revenue came at US$25.2M, down %12% QoQ and 11% YoY respectively ISP kept on strong shipment, however, bitcoin mining chip shipment

12

Proprietary and Confidential Information

2H16 Overall outlook

Continuously positive on China market� Continuously strong support and subside by government for

China semiconductor/IC industry

� Numbers increase of China customers who become able to adapt advanced technology nodes

� Alchip still enjoys advantage within the advanced technology nodes

Japan and Korean market � Shipment of JP amusement machine main chip restarted in late

2Q and is expected to continue through 2017

� Kick-off of 16nm JP medical supercomputer projects

� Many advanced technology node products in business discussion with JP customers

� Korean customers are slow and no significant recovery expected in the near-term

Page 13: Alchip 2Q16 investor meeting eng [????] · 2Q16 revenue came at US$25.2M, down %12% QoQ and 11% YoY respectively ISP kept on strong shipment, however, bitcoin mining chip shipment

13

Proprietary and Confidential Information

Thanks!

www.alchip.com

Page 14: Alchip 2Q16 investor meeting eng [????] · 2Q16 revenue came at US$25.2M, down %12% QoQ and 11% YoY respectively ISP kept on strong shipment, however, bitcoin mining chip shipment

Taipei/Hsinchu││││Shin Yokohama││││Santa Clara││││Shanghai/Wuxi││││Seoul

Corporate Headquarters

9F, No.12., Wenhu St., Neihu Dist., Taipei, Taiwan 114

Tel +886-2-2799-2318

Fax +886-2-2799-7389