Notes from the AEA conference on 11/6/00
vcall.com
Bing Yeh
- no guidances on revs,
- goal to be leading provider of nonvolatile memory solutions bases on super flash
- IBM, PMCS, Samsung, MOT all use our superflashlicense
- products used in PC, Videocam, network adapter card, CD-W, DVD, printers, global positioning sytems, cellphones, set top boxes, digital cameras, HDD, modems,
- third largest flash supplier in the US
- flash market is one of the fastest growing segment in semiconductor industry
- TSM and Samsung are foundries working with us
- company start in 1989
- 650M run rate
- 2004 will be 20B flash market per xxxx
- 393 employees,
- as long as consumer devices are bought, flash memory will be required
- DVD uses 1M chips, Digital cameras is 15M chips, cell phones will be 30M chips and higher
- SSTI 3q rev was 163M, ATML 143M fro flash rev
- MP3 player, printers, networking, GPS, PDA, Cellphones 64M required,
- Product rev: SSTI 162M, SNDK 151M
- 27% annual growth for flash memory next four years per webfeet research
- SSTI superflash is small footprint than most competitors
- Intel/AMD flash memory take a few second to erase where are our is much faster
- Competitors 1M-32M: AMD, INTC, St Micro, SSTI
- Competitors 64M+: Hitachi, Samsung, Toshiba. We don't believe we are qualified to compete now since we do not have enough wafers in supply. Want to dominate the other two levels.
- We want the semiconductor industry to use our flash technology in low density applications, 4M and under
- Out licensees can deal with the 3-5% gross margin in under 1M market.
- 46 products in shipment, two years ago only 4. Introduced 25 products this year.
- 100M unit shipped this year. 30M in 1998, goal next year is 300M. Beleive we will be number one in units shipped next year.
- New products is driving 48% sequential growth. 64% of rev was 1999 products, 2000 products was 25%.
- 1.5M rev per employees and getting better each quarter.
- Engineering is 52% of headcount. 70% of new hires is engineers
- Sony will use our product in digital TVs
- 40% market share in digital cameras, mostly through Samsung
- 56K modem used by AAPL has our product
- cable modem area going so fast we cannot keep up
- GPS/bluetooth is not a single chip solution. Small footprint and low power consunption so we are working with many manafucters on 1M, 2M, 4M products
- 25% of CP filer market and will continue to grow
- New growth for flash is network communcation and wireless sector with 30% growth profection
- Still no way to meet demand next quarter and into next year
- TSM, Sanyo, NSM are foundries we are working with
- next year will convert to .18 micro products from .25- .33 micro products.
- Want to become supplier of choice for embedded flash.
- Mass storage (64M+) is 15% of flash market, will use ATA controller design to penetrate this market next year
- .13 and .18 microproducts will be the future for wireless and bluetooth application
- wafer supply shortage will slow growth for the future
- we will continue growth through diversification
- ATA controller will ship this month, we believe we will have 100 customers. This product manage defect in high density products and two other functions (that I missed)
- ATA controller offers much faster data rate using superflash technology
- growth will slow down due to wafer shortage - 60% sequentiall growth is not sustainable, second half of next year will such more ramp up in growth
- 3Q rev is 15% exposure to PC market. Some slowdown in PC area.
- Toshiba and Samsung are going after mass storage storage market and not low density products.
- We are fabless company so we don't need to increase space.
- 4M and below products will stay at .21 micron and is the dominant player, no major competition so price is stable.
- Handset 1.5% of rev, all the handset mfr are ouitsourcing manufacturer due to margin squeeze. Will outsource like PC model. We have a very strong customer base in Korea, Japan, and Taiwan so we will be involved in design of future handset using flash memory. Not more sales in handset because of capacity limitation.
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Very fast pace presentation and stopped by AEA at the expired time. Only listened once, so apologies for any mistakes.
Jack |
