Transcript
TRANSFORMING NETWORKS THAT CONNECT, MOVE, AND STORE BIG DATA August 2014
SAFE HARBOR STATEMENT This presentation contains forward looking statements which are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements, including but not limited to risks described in PMC-Sierra’s SEC filings. PMC-Sierra undertakes no obligation to update any forward looking statements. This presentation also includes certain non-GAAP financial measures, which are reconciled to the most directly comparable GAAP financial measures in the financial news releases posted at our website, http//investor.pmcs.com.
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MISSION STATEMENT
PMC is the Semiconductor and Software Solutions Innovator Transforming Networks that Connect, Move, and Store Big Data
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PMC AT-A-GLANCE Founded: 1984 Public: 1991 Headquarters: Sunnyvale, CA
Vancouver Roseville Sunnyvale
Montreal Allentown Colorado Springs
Stock Symbol: PMCS
Germany Italy
Israel
Shanghai
Bangalore
Penang
WW Employees: ~1,400
2013 Annual Revenue: $508 Million Business Segments: Storage, Optical & Mobile Corporate Headquarters
Website: www.pmcs.com
International Headquarters
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Design Center
KEY INVESTMENT HIGHLIGHTS • Fabless semiconductor and software solutions innovator transforming networks that connect, move, and store Big Data • Well-positioned to capitalize on Big Data growth trends
• Entering new product cycles in expanding addressable markets • Franchise player in key infrastructure market segments • Strong financial performance
2013 Revenue: $508 Million
67% 19% 14% Storage
Optical
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Mobile
TRANSFORMED REVENUE PROFILE
Note: Legacy includes SONET, ATM and MIPS Processors
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UNPRECEDENTED TRAFFIC GROWTH
2008
2010
2012
2014
EVERYTHING AS A SERVICE
2016
MOBILE DEVICE PROLIFERATION
2018
DIGITIZATION OF EVERYTHING
BIG DATA TRENDS DRIVING GROWTH 7
“From 2013 to 2020, the digital universe will grow by a factor of 10 – from 4.4 trillion gigabytes to 44 trillion. It more than doubles every two years.”
A DECADE OF DIGITAL UNIVERSE GROWTH STORAGE IN TRILLIONS OF GIGABYTES
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45 40 35 30 25 20 15 10 5 0 2013
- IDC
Source: IDC’s Digital Universe Study, Sponsored by EMC, April 2014
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2020
MOBILE DATA EXPLOSION • 4X growth in smartphone traffic from 2012 to 2017 • Video traffic exceeded 50% of total mobile traffic for the first time in 2012 • In 2012, an LTE network connection generated 19X the traffic of a non-LTE • LTE expected to grow from 1% of connections in 2012 to 10% of connections in 2017
GLOBAL MOBILE DATA TRAFFIC FORECAST 2012 - 2017 EXABYTES PER MONTH
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Other dataenabled devices
Tablets & Laptops
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Smartphones 0 2012 2013 2014 2015 2016 2017 Source: Cisco VNI Report Forecast – February 2013
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NEW PRODUCT CYCLES Business Segment
Meaningful Revenue
Incremental Annual Revenue
RADIO
12G SAS FLASH CONTROLLER OTN CLOUD DATA CENTER
1H 2013
2H 2013
1H 2014
Target / Opportunity
Mobile
2016
$80 - $100M
Macro & Small Cell Base Stations
Storage
2015
$80 - $100M
>10% share gain in Server & Storage; 6G to 12G transition
Storage
2016
$150 - $180M
Optical
2015
$70 - $90M
OTN Switching in Metro
Storage
2014
$60 - $80M
Highest Density Solutions
2H 2014
Enterprise SSDs
$440 - $550M
Early Revenue Begins
Radio = Remote Radio Head OTN = Optical Transport Network SAS = Serial Attached SCSI
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STORAGE
THE STORAGE OPPORTUNITY D ATA C E N T E R & F L A S H S O L U T I O N S A C C E L E R AT I N G G R O W T H PMC SAM, $ in Millions
$2.2B
$630 Enterprise SSD Controller
$560 Data Center
$1.1B
$820
Data Center
$260
$440
Storage System
Storage System 2012
2017
PMC poised to capture significant revenue growth from 2012 to 2017 • • •
Note – all numbers are based on data from IDC, Gartner & PMC Estimates Data Center includes $80M SAM in 2012 and $90M SAM in 2017 representing printer ASICs to enterprise customers Board-level flash solutions are not included in the SAM 12
PMC’S DATA CENTER SERVER OPPORTUNITY PMC Server Storage SAM, $ in Millions
$1.0B
$480
2012
• • •
2017
Note – all numbers are based on data from IDC, Gartner & PMC Estimates For purposes of this slide, the printer ASICS SAM included in the Data Center SAM on slide #12 is not included ($80M SAM in 2012/$90M SAM in 2017) SAM does not include Data Center flash opportunity or board-level flash solutions
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PMC’S BROAD PORTFOLIO Leading solutions for servers and storage systems RoC, HBA & Motherboard “Chip Down” Solutions
High Density Rack Level RAID
Expanders: 6-68 Ports 6 & 12Gb/s High Density Server Level RAID Density & Endurance Flash Controllers
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CLOUD DATA CENTERS DEMAND THE HIGHEST-DENSITY SOLUTIONS 2014 DEPLOYMENTS
INITIAL DEPLOYMENTS
• Initial deployments were based on standard motherboard/form factors – Challenge: Inefficient, not optimized for Power/Density
• New density-optimized solutions will deliver lower TCO • PMC’s I/O controllers and HBAs deliver 2x the density than competing solutions 15
PMC OFFERS HIGHEST DENSITY SOLUTIONS HBA: INDUSTRY-LEADING PERFORMANCE
SERIES 8: CORNERSTONE OF 12GB/S PRODUCT LINE-UP
Industry’s only PCIe Gen3 low-profile/MD2 form-factor with 16 native ports
Industry’s only 16-port native 12Gb/s SAS Adapter with embedded flash backup – all within an LP/MD2 form-factor
Industry’s only solution to take full advantage of PCIe Gen3 bandwidth
Industry unique tiering & caching software, maxCache Plus™, helps IT managers get the most value and performance out of their storage assets
Industry’s only SAS/SATA HBA solution capable of over 1M IOPS Industry’s only encrypted HBAs with maxCrypto hardware encryption
Industry leading 700,000+ IOPS; 60% faster than its predecessor
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SERIES 8 INDUSTRY REVIEW: AMAZING THROUGHPUT “The [Adaptec] ASR-8885 is a great RAID adapter. It offers 16
ports of 12Gbps SAS with amazing throughput. We had no issues hitting 700K IOPS and 6GB/s. Those are amazing maximums, but we were more impressed with the incredible consistency that we observed. With sub-microsecond variance,
the Series 8 destroyed our latency tests. Although prices may be high for the consumer market, the pricing for enterprise customers is very competitive, especially on a per port basis.”
- SSD Review –Sept 30, 2013
Note: Review based on Adaptec (by PMC) ASR-8885 12Gb/s PCI Express RAID Adapter Review – RAID Testing With 8 HGST 12Gbps SSDs
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SOLID STATE STORAGE IS TRANSFORMING THE DATA CENTER • Hyperscale data centers represent the fastest-growing server segment • Solid-State Drive (SSD) consumption in hyperscale data centers is dramatically increasing • PCIe interface-of-choice for latency-sensitive applications in hyperscale HYPERSCALE CUSTOMERS
*SSDS
VS. HARD DISK DRIVES
Property
15k RPM HDD
PCIe SSD
Improvement
Transactions
400 IOPS
785,000 IOPS
+1965x
Latency
15,000 us
50 us
+100x
Bandwidth
200 MB/s
3,200 MB/s
+16X
*Source: “What’s New in SCSI” Presentation, 2013 Linux Storage, File system and MM Summit, April 2013
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PMC EXPANDING INTO FAST-GROWING ENTERPRISE SSD CONTROLLER MARKET ENTERPRISE SSD CONTROLLER SAM ($M USD)
WORLDWIDE SSD REVENUE ($B)
$14
$630
$12 $10 $8 $6 $4 $2
$0
$0 2011
2012 Client
2013
2014
Enterprise
2015
2016
2017
Commercial
Source: IDC Forecast – May 2013 Report, PMC estimates
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2012
2017
PMC LEADERSHIP IN FLASH Uniquely Positioned in the Enterprise • Focused on enterprise PCI Express (PCIe) SSD controllers • Leadership products, including: – World’s first enterprise NVMe flash controllers for PCIe solutions – World’s first enterprise NV-DRAM controllers for PCIe solutions
Fast Growing Market • Enterprise SSD controller SAM forecasted to reach $630 million by 2017
Marquee Customers • Design wins across a broad customer base: – Tier 1 SSD vendors
– NAND suppliers – Tier 1 OEM and hyperscale customers – All-Flash array vendors
Flashtec™ NVMe Controller in volume production
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FLASHTEC™ NVRAM DRIVE N E W M E M O RY T I E R F O R H Y P E R S C AL E D ATA C E N T E R S T O R AG E
New ultra-fast storage class memory tier • • • • •
10X higher performance than the fastest SSD More than 10 million IOPS in Memory Mapped Access 1 million IOPS (4KB) as a block device Industry-standard NVMe interface PCIe connection to host optimizes CPU utilization
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STORAGE SYSTEM SAM OPPORTUNITY PMC SAM, $ in Millions
$440
$260
$27.5B $360
Worldwide External Disk Storage Systems Segment
$139
$120 2012
$80 2017
D A T A
SAS Controller & Storage Switching FC Network & Interconnect
* Note – all numbers are based on data from IDC (2013 Forecast as of July 2013), Gartner & PMC Estimates
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S Y S T E M S
PMC SAS: MARKET LEADER CONTINUING TO GAIN SHARE 6G SAS Ports Shipped 100%
PMC is the market segment share leader in 6G SAS
Other
90% 80% 70%
PMC to gain >10% share in the 12G SAS transition in server and storage systems, based on current design wins*
Competitor
60%
50% 40% 30% 20% 10% 0% 2007
2008
2009
2010
2011
2012
7 OF THE TOP 7 STORAGE OEMS AND 3 OF TOP 3 SERVER OEMS SHIPPING WITH PMC SAS PRODUCTS
6G SAS market segment share data as of year-end 2012 *As of August 2013
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OPTICAL
OTN IS THE NEW TRANSPORT LAYER IN THE WAN
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THE OPTICAL OPPORTUNITY PMC SAM, $ in Millions
$1.0B FTTH
$260 EPON & GPON
OPTICAL
$320 EPON & GPON
$660
$200
$550
OTN
OTN
$200
$90
SONET / SDH
SONET / SDH
2012
2017
PMC poised to significantly increase share in Optical segment
* Note – all numbers are based on data from IDC, Gartner & PMC Estimates
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OTN SILICON OPPORTUNITY Silicon SAM $600
$500
OTN Data Wrapping
$300
OTN Switching $200
$100
OTN xPonders $0 2013
2014
2015
2016
2017
2018
OTN Switching is the fastest growing segment
Sources: Various, including PMC & Infonetics 2012
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OTN Processing
$Millions
$400
SINGLE CHIP SILICON INNOVATION IN OTN PROCESSING Previous Solution
MULTIPLE LINE CARDS
• Many parts • High power and expensive • Typically single application
Memory
16x SFP
SERDES SERDES
SERDES
2x XFP
SERDES
OTN Framer FEC OTN Framer FEC
PMC Metro OTN™ Innovation • • • • • •
Single chip SoC Significant BOM reduction Power reduction by 50% Reduces line card variants by 75% Universal applications WDM, ROADM, MPLS, OTN Switching
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LINE CARD 16x SFP
2x XFP
OTN MUX
SONET /SDH OTN Switch
Ethernet MACs, VCAT
SONET SDH Framers
A N A L O G M U X
SERDES SERDES
SERDES SERDES
OTN SWITCHING MIGRATING TO METRO AND ACCESS Regional Network
Metro Network
P-OTP
P-OTP
Access Network
P-OTP P-OTP
P-OTP CESR
P-OTP
P-OTP
P-OTP
P-OTP
CESR
CESR
PON
Datacenter
Base Station Datacenter
Transport Model
OTN Switching
OTN Switching
OTN Switching and Carrier Ethernet
Drivers
Router Bypass
Multiservice Transport Efficient fiber utilization
Multiservice Transport Service aggregation
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INNOVATIVE SOLUTIONS: PMC METRO OTN ™ PROCESSOR PORTFOLIO Gen 1:
Gen 2:
Gen 3:
Transition from SDH to OTN in Access and Metro
Optimization of Transport Network for Packet
Enabling Highest Density 10G and 100G Port Cards
10G-40G Line Card Multi-service SFP/10G
10G-40G Line Card Multi-service SFP/10G with ODU0/flex
100/200G Line Card Multi-service 10/40/100G with ODU0/flex
IN PRODUCTION
IN PRODUCTION
IN PRODUCTION
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DIGI 120G Big Data & Cloud drive 100G and Virtualization of Optical Network Bandwidth PMC disrupts 100G economics & enables efficient & dynamic networks with OTN DIGI 120G is the OTN Processor responding to the needs of Big Data
• 1st OTN processor to support on-demand re-sizing of ODUflex from 1G to 100G
• 1st single-chip enabling densest 10G port and 40/100G transport, aggregation & switching cards • 1st solution to unlock the value of 100G by delivering Hybrid Bandwidth Management
• Industry leading innovations Swizzle EFEC, OTN-over-packet fabric interface, packet timing 31
CARRIERS COMMITTED TO DEPLOYING OTN SWITCHING
CARRIER
FT
2013 CAPEX ($B USD)
EMERGING MODEL
$30.4
OTN Switch
$21.0
OTN Switch
$12.8
OTN Switch
$16.3
OTN Switch
$12.0
OTN Switch
$8.2
OTN Switch
$12.4
OTN Switch
$7.5
OTN p-t-p
$12.3
OTN Switch
$6.1
OTN p-t-p
PMC CONTENT
OTN Deployment Strategies: Global Service Provider Survey May 1, 2013
TOP TAKEAWAYS 86% of service provider respondents plan to deploy OTN switching. Respondents to this survey tend to be larger carriers, and together they represent 90% of respondent capex.
Source: Infonetics (May 1, 2013)
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OTN: FOUNDATION FOR BUILDING AN INTELLIGENT CLOUD NETWORK COMPUTE AND STORE
COMPUTE AND STORE
High Bandwidth Low Latency Resilient
CONNECT
Packet Friendly
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PMC’S CONTINUOUS PON LEADERSHIP • First to 20M ONUs • First to cut PON energy consumption by 50% • First to provide symmetric 10G-EPON end-to-end chips • First to enable evolutionary path to 10G-EPON with 1G and 10G ONU network coexistence
20M ONUs EPON GPON
15M ONUs
10GEPON
10M ONUs
EPON GPON
5M ONUs
EPON
2006
2009
PMC provides mature and field proven end-to-end solutions for EPON, GPON and 10G-EPON
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2013
MOBILE
THE MOBILE OPPORTUNITY PMC SAM, $ in Millions
$940
$60
$570
Remote Radio Head Mixed Signal
Remote Radio Head Mixed Signal
$430
$370
$370
Backhaul
Backhaul 2012
2017
* Note – all numbers are based on data from IDC, Gartner & PMC Estimates
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MOBILE DATA EXPLOSION • 4X growth in smartphone traffic from 2012 to 2017 • Video traffic exceeded 50% of total mobile traffic for the first time in 2012 • In 2012, an LTE network connection generated 19X the traffic of a non-LTE • LTE expected to grow from 1% of connections in 2012 to 10% in 2017
GLOBAL MOBILE DATA TRAFFIC FORECAST 2012 - 2017 EXABYTES PER MONTH
12
Other dataenabled devices
Tablets & Laptops
6
Smartphones 0 2012 2013 2014 2015 2016 2017 Source: Cisco VNI Report Forecast – February 2013
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WINPATH TM : LEADERSHIP IN MOBILE BACKHAUL Market segment leader in IP/Ethernet backhaul with WinPath network processors
WinPath NPU 4 Generations of Innovation
• WinPath4 purpose-built processor for LTE - 40G Carrier Ethernet Router-on-Chip • WinPath3 for 10G Carrier Ethernet mobile backhaul platforms • WinPath3-SuperLite for 2 Gigabit base stations and microwave backhaul Fiber or uWave Backhaul
Carrier Ethernet Software •
Convergence of 2G, 3G, 3G HSPA & LTE all on a single IP/Ethernet network with OpenFlow support for SDN
100+ design wins to date 38
MOBILE RADIO HEAD OPPORTUNITY
CHALLENGES IN SUPPLYING MOBILE NETWORK CAPACITY
WIRELESS DATA GROWTH LEADST TO SPECTRUM DEFICIT
1,400%
1250%
1,200% 1,000%
800%
Traffic growth per cell site
925%
612%
600% 400% 200%
100%
197%
268%
0% 2009
2010
2011
2012
225
87
2013
2014
400MHz 200
377
322
0
-90 -200 -400
Spectrum surplus/deficit
-275
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CHALLENGES IN SUPPLYING MOBILE NETWORK CAPACITY In keeping up with the demand for mobile traffic, wireless operators are using three key ways to increase network capacity:
1
2
3
Improve spectral efficiency
Acquire more spectrum
Deploy more radios
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INCREASING NETWORK CAPACITY WITH LTE Deploy high power “Super Macro” BTS with MIMO to increase coverage at cell edge
Use Active Antenna Systems to beam signals where they are needed Infill cells with low power BTS or WiFi to offload mobile traffic at hot spots
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UniTRX™: LOWEST POWER CHIPSET UniTRX™: High integration and low power consumption enable compact transceiver designs Tx Path
VGA
Clocking
RF Gain
DAC size = 12 x 12mm
IF _ Filter I
AQM size = 6 x6 mm
RF _ FB _ In Balun
Block
RF Gain Block
size = 4 x 4 mm Tx _ Filter
VCXO
Q AQM
IF _ Filter
size = 6 x 6 mm
I
Quad Tx DAC
FB _ IF Filter
JAT + Clock Synthesizer
Tx _ Filter Q
VGA size = 4 x 4 mm
Tx _ A_ I Filter
RF _ Filter
Downconvert Mixer
Tx_ A _ Q Filter
VCXO
IF _ Filter
ADC RF _ Switch
Filter Tx _ B _ Q Filter
SyntheCLK Tx Feedback Path
Rx Path
Tx _ B _ I
UniTX
ADC size = 9 x 9 mm
VGA
Downconvert Dual Mixer size = 6 x 6 mm
ADC size = 9 x 9 mm IF _ Flt _2_A
IF _ SAW _ Filter
IF _ B SAW Filter
Dual ADC
IF _ Flt _2_B
IF _ A SAW Filter
Dual VGA
Rx PLL
Feedback PLL / VCO
IF _ A Low Pass Filter
Tx PLL /VCO
Rx VCO
MC - GSM Rx Lo
Feedback LO
Tx LO
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UniRX
IF _ B Low Pass Filter
UniTRX™: LOWEST POWER CHIPSET UniTRX™: High integration and low power consumption enable compact transceiver designs
14 active components
3 active components
PMC’s UniTRX Chipset
Next Generation Discrete Implementation (2T2R)
Benefits of Integration: Replaces up to 14 discrete components Reduces board footprint by up to 53% Lowers power by up to 54%
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UniTRX™ CHIPSET OVERVIEW
Proprietary Digital Front End ASIC/FPGA
2
JESD204B Tx
JESD204B Serial Link
8
JESD204B Rx
JESD204B Serial Link
6Gbps SerDes
JESD204B Tx
Clock Synthesizer SyntheCLK
PM7520 2
DAC
Tx Interpolation and Digital UpConversion
DAC
Feedback Digital Calibration Feedback Digital Calibration
0o
Rx PostProcessing Rx PostProcessing Clock buffer/divider
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90o
DAC
PA
Tx Output #1
PA
Tx Output #2
Tx LO 0o
90o
DAC UniTX
PM8910 ADC
ADC Feedback LO
Clock buffer/divider
2
CPRI
Tx Interpolation and Digital UpConversion
ADC
UniRX ADC PM8920
Rx LO
LNA
Rx Input #1
LNA
Rx Input #2
UniTRX™ CHIPSET OVERVIEW
1
2
DAC
Tx Interpolation and Digital UpConversion
DAC
2
0o
DAC
Tx LO 0o
90o
JESD204B Tx
Clock Synthesizer SyntheCLK
PM7520 2
DAC
Feedback Digital Calibration
ADC
Feedback Digital Calibration
ADC
Rx PostProcessing Rx PostProcessing Clock buffer/divider
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Tx Output #1
PA
90o
3
Tx Output #2
PA
Reduce development time
Feedback LO
Clock buffer/divider
2
6Gbps SerDes
Tx Interpolation and Digital UpConversion
UniTX Deliver a wideband PM8910 (400MHz to 4GHz) UniTRX chipset to reduce product variants
JESD204B Serial Link
JESD204B Tx
Provide the lowest power transceiver chipset CPRI
Proprietary Digital Front End ASIC/FPGA
8
JESD204B Rx
JESD204B Serial Link
ADC
UniRX ADC PM8920
Rx LO
LNA
Rx Input #1
LNA
Rx Input #2
KEY TAKEAWAYS • Semiconductor and software solutions innovator transforming storage, optical, and mobile networks – Expertise to Connect, Move, and Store Big Data
• New product cycles in expanding addressable markets: – Flash, 12G SAS, Cloud Data Center, OTN, Radio – New product cycles began in late 2013 & 2014 after years of investment – SAM to increase from ~$1.9 Billion to ~$4.1 Billion between 2012 and 2017
• Well-positioned within major growth trends – Franchise player in key infrastructure segments – Growth trends: Cloud services, Internet of Things, digitization of content, mobile proliferation and distribution services
– Leadership in OTN, SAS and Flash technology
• Strong financial performance
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OPERATING RESULTS Non-GAAP Q3’12 – Q2’14 ($US In Millions Except % and EPS)
Financial measures shown for periods prior to the fourth quarter of fiscal 2013 may differ from those previously published as a result of changes made in connection with the restatement of certain GAAP financials as presented in our Annual Report on Form 10-K for fiscal year ended December 28, 2013 filed on February 26, 2014. Also, for a current reconciliation between GAAP and non-GAAP financials, please refer to our most recent press release and the quarterly summary published under the Financial Reports tab of the Investor Relations page of the PMCS website.
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STRONG BALANCE SHEET ( $ U S M E x c e p t D S O s a n d I n ve n t o r y Tu r n s )
Financial measures shown for periods prior to the fourth quarter of fiscal 2013 may differ from those previously published as a result of changes made in connection with the restatement of certain GAAP financials as presented in our Annual Report on Form 10-K for fiscal year ended December 28, 2013 filed on February 26, 2014. Also, for a current reconciliation between GAAP and non-GAAP financials, please refer to our most recent press release and the quarterly summary published under the Financial Reports tab of the Investor Relations page of the PMCS website. * Cash + Cash Equivalents + Short-term Investments + Long-term Investment Securities ** Capex is cash purchase of property and equipment from cash flow statement
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LONG-TERM FINANCIAL MODEL ( N o n - GAA P )
Financial measures shown for periods prior to the fourth quarter of fiscal 2013 may differ from those previously published as a result of changes made in connection with the restatement of certain GAAP financials as presented in our Annual Report on Form 10-K for fiscal year ended December 28, 2013 filed on February 26, 2014. Also, for a current reconciliation between GAAP and non-GAAP financials, please refer to our most recent press release and the quarterly summary published under the Financial Reports tab of the Investor Relations page of the PMCS website.
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NASDAQ: PMCS www.pmcs.com
