APM® : The new AMCC Phenomenal Products, Explosive Growth Micro... · Forward Looking Statements...
Transcript of APM® : The new AMCC Phenomenal Products, Explosive Growth Micro... · Forward Looking Statements...
1 © AppliedMicro Proprietary & Confidential © AppliedMicro 2013 Proprietary & Confidential
APM® : The new AMCC Phenomenal Products, Explosive Growth
May 2013
Jefferies 2013 Global Technology Media & Telecom
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Safe Harbor Forward Looking Statements During the course of this presentation, we will discuss our anticipated future financial performance and make other forward-looking statements, including “street estimates” that are comprised of reported analyst estimates compiled by the Company. Actual results may differ materially from these statements due to a number of risks and uncertainties, including, but not limited to customer demand for our products, the successful and timely development of new products, internal and external manufacturing execution, the business of the Company’s major customers and macro economic conditions. For a more detailed discussion of these and other factors, we refer you to our SEC filings.
Regulation G Reconciliation During the course of this presentation, we may refer to historical and forward-looking non-GAAP financial measures. A reconciliation of historical non-GAAP financial measures with the most directly comparable GAAP financial measures can be found on our web site at http://www.amcc.com in the “Investor Relations” section. We have not provided a reconciliation of
forward-looking non-GAAP financial measures due to the difficulty in forecasting and quantifying the amounts that would be required to be included in the comparable GAAP measure that are dependent upon future market conditions and valuations.
THIS PRESENTATION DOES NOT CONSTITUE AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO BUY ANY SHARES OR OTHER SECURITIES OF THE COMPANY IN ANY JURISDICTION. WHILE THE INFORMATION PRESENTED IS BELIEVED TO BE ACCURATE AND COMPLETE AS OF THE DATE OF THIS PRESENTATION, NO WARRANTIES OF ANY KIND, EITHER EXPRESS OR IMPLIED, ARE MADE. ALL MATERIALS PRESENTED IN THIS PRESENTATION ARE THE PROPERTY OF THE COMPANY AND ARE PROECTED BY U.S. AND INTERNAIONAL COPYRIGHT, TRADEMARK AND OTHER APPLICABLE LAWS. APPPLIED MICRO, APM, ARMING THE CLOUD, SERVER ON A CHIP, CLOUD SERVER AND X-GENE ARE REGISTERED TRADEMARKS OR TRADEMARKS OF APPLIED MICRO CIRCUITS CORPORATION.
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October 2011: APM is “Arming the Cloud ”
Revolutionary Cloud Product Portfolio
From Fiber to Backplane
Disruptive Computing
World’s first ARM 64-bit Server on a Chip
Total Addressable Market Expands to $7.3B
The Capability Is In Our DNA
TM
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Small Data Sets
Very Large Data Sets
Data Centers Undergoing Fundamental Shifts
Consumer Data Corporate Data
Predictable Compute
Bursty Compute
Structured Database
Unstructured Database
Mega Cloud Data Centers
Small / Medium In-House
Data Centers
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Today: New Demands, Old Capabilities
CPU Intensive
YESTERDAY TOMORROW
(Computation)
(Right-sized CPU / IO / Memory)
Data Movement Intensive
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L2 Cache
ARM 64-bit
L1 D
L1 I
ARM 64-bit
L1 D
L1 I
L2 Cache
ARM 64-bit
L1 D
L1 I
ARM 64-bit
L1 D
L1 I
L2 Cache
ARM 64-bit
L1 D
L1 I
ARM 64-bit
L1 D
L1 I
L2 Cache
ARM 64-bit
L1 D
L1 I
ARM 64-bit
L1 D
L1 I
SATA
Storage I/F
PCIe
Comms I/F
10G I/O
Networking I/F
Integrated NICs + 10/40/100G Integrated Communications I/O
X-Gene Fabric
Network
Accelerators
Offloads
APM Server on a Chip = Compute + Connectivity
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TM
TM
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X-Gene™ ARM 64-bit SoC Update
Current Status • Validation in progress • Clocked at 2.4 Ghz • Frequency enables Enterprise
adoption • Includes Enterprise features • X-Gene server concepts showcased
– Frank Frankovsky, Facebook, Open Compute
– Jimmy Pike, Dell
• Sub $1K boards in development
Future Timing • Planning to sample to key customers
during March 2013 quarter • Customers to bring up systems
during June and September 2013 quarters
• Revenue expected in calendar 2014
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Anatomy of a Datacenter. What Truly Matters.
Compute (SAM = $5.4B)
Distributed Computing of Very Large Data Sets
TCO = f (capex, density, power, space, cooling, etc.)
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Anatomy of a Datacenter. What Truly Matters.
Connectivity (SAM = $1.9B)
Optics (OTN) Is the Lingua Franca of All
Connectivity.
Gearbox: Optical Interconnect (100Gbps)
PQx: Datacenter Interconnect (10/40Gbps)
X-Gene™: Server Interconnect
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Connectivity: Dynamic Growth
• Data Center = Telecom grade • 10G defacto • 100G here now and coming on strong • “LAN-like” port growth 35% - 40% • Growth will add to price pressure APM: 2 Million 10G OTN Ports
2004 2013
Optical Transport Network 10G to 100G and Beyond
APM has >40% market share in OTN
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*new
Compute + Connectivity: FY13/14 New Products Revenue Outlook*
Connectivity 30%+ Customer-Paid
Development
Compute: TSMC 40%+ Customer-Paid
Development
Market Leaders
This Year Next Year
New Products Revenue Committed Revenue on New Product
New Products
PQx QPSK Mux
Gearbox/Gearbox 2 Pemaquint ASIC
Next-Gen, Hi-Density Multi-Port Phy 10GbT
Other Committed ASIC
Maui Lanai
Keelback Black Mamba
ASIC1 ASIC2
New Product Revenue Trending to $150M by mid-2014
*new product revenue cannot be added to existing revenue as a means of forecasting total future revenue. Revenue from existing products is expected to decline over the next 3 to 5 years (more than offset by new product ramp). Many variables, may affect the rate of decline, including the timing and market longevity of previously introduced products, competitive landscape, and macro economic conditions.
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Financial Details
April 2013 CFO Report
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Non-GAAP Income Stmt. – FY14 Street Est.
• FY13/14 increase in shares outstanding is mainly related to Veloce acquisition • TPack is no longer included beginning Fiscal 2014
* Includes Licensing revenue (TPack, IP Licensing)
Revenue *
Seq Revenue Growth
Gross Margin
Operating Expenses
Operating Income % of Revenue
Pretax Income % of Revenue
EPS
Shares Outstanding
Q1-13 Actual
FY14 St. Est.
54.1
<4.0%>
56.5%
30.5
0.00 0.0%
0.4 0.7%
0.0
71
WITH ARM Expenses
41.3
<15.3%>
57.8%
36.3
<12.5> <30.2%>
<11.8> <28.5%>
<0.18>
62
46.3
12.2%
57.5%
38.1
<11.5> <24.9%>
<10.9> <23.4%>
<0.16>
65
51.7
11.6%
57.2%
37.4
<7.8> <15.1>%
<7.1> <13.8%>
<0.10>
66
195.6
<15.3%>
59.3%
148.2
<32.2> <16.5%>
<29.7> <15.2%>
<0.44>
65
Q2-13 Actual
Q3-13 Actual
Q4-13 Actual
Q1-14 St. Est.
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195.3
<15.4%>
58.1%
146.3
<32.9> <16.8%>
<30.3> <15.5%>
<0.45>
65
FY13 Actual
230.1
17.6%
56.8%
126.5
4.1 1.8%
5.8 2.5%
0.07
74
56.3
9.0%
63.8%
36.4
<0.4> <0.8%>
0.1 0.2%
0.00
69
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Non-GAAP Income Stmt. – FY14 Street Est.
* Includes Licensing revenue (TPack, IP Licensing)
Revenue *
Seq Revenue Growth
Gross Margin
Operating Expenses
Operating Income % of Revenue
Pretax Income % of Revenue
EPS
Shares Outstanding
Q1-13 Actual
FY14 St. Est.
54.1
<4.0%>
56.5%
16.2
14.3 26.5%
14.7 27.2%
0.20
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WITHOUT ARM Expenses
41.3
<15.3%>
57.8%
24.6
<0.7> <1.8%>
<0.1> <0.1%>
0.0
62
46.3
12.2%
57.5%
26.1
0.5 1.1%
1.2 2.6%
0.02
65
51.7
11.6%
57.2%
22.6
7.0 13.6%
7.7 14.9%
0.11
66
195.6
<15.3%>
59.3%
94.0
22.0 11.2%
24.5 12.5%
0.36
65
Q2-13 Actual
Q3-13 Actual
Q4-13 Actual
Q1-14 St. Est.
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195.3
<15.4%>
58.1%
146.3
<32.9> <16.8%>
<30.3> <15.5%>
<0.45>
65
FY13 Actual
230.1
17.6%
56.8%
70.2
60.4 26.2%
62.1 27.0%
0.83
74
56.3
9.0%
63.8%
20.8
15.2 26.9%
15.7 27.8%
0.22
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FY14 estimate for ARM expenses is $12M-$14M per quarter
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Assets Current Assets Cash, Cash Equivalents and Investments Accounts Receivable Inventory Other Current Assets Total Current Assets Long-term Assets and Goodwill Total Assets
Liabilities and Stockholders Equity Total Liabilities * Total Stockholders’ Equity Total Liabilities and Stockholders’ Equity
*All liabilities are ‘current’ liabilities except $28.4M related to Veloce spin-in
$ 000s
Balance Sheet
Strong Balance Sheet – Good Cash Position and No Debt
FY13 3/31/13
FY11 3/31/11
85.5 24.6 12.9 18.0 141.0 70.4 211.4
142.5 68.9 211.4
FY12 3/31/12
168.1 20.0 26.6 16.7 231.4 77.3 308.7
46.9 261.8 308.7
113.8 22.7 23.2 31.1 190.8 78.2 269.0
99.8 169.2 269.0
**Cash is expected to decrease up to ~$10M in the June quarter (net of Veloce milestone payout offset by sale of Tpack proceeds) 14 © AppliedMicro 2013 Proprietary & Confidential