Corporate Overview Q3 2015
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1 Corporate Overview Q3 2015
2 Cautionary statements and other disclosures This presentation includes forward-looking statements regarding Pixelworks business outlook. These forward-looking statements involve risks and uncertainties and actual results may vary significantly from those suggested here. Additional information concerning risk factors that could cause actual results to vary from these forward looking statements can be found in our Form 10-K for the fiscal year ended December 31, 2014 and subsequent SEC filings. To the extent this presentation includes non-gaap financial measures, the most directly comparable GAAP information and a reconciliation between the non-gaap and GAAP figures is provided in our Q press release which has been furnished to the SEC on Form 8-K. 2
3 Company Overview Company Fabless semiconductor company Founded in 1997 NASDAQ: PXLW Mission Enable the highest quality visual experience Vision Apply our technology and innovation to all displays Leading independent provider of innovative display processing technology 3
4 Legacy of Excellence Top tier customers Projection pioneer Key patent position Passion for video quality Video Display Processing technology brings the highest quality video to any screen. 15 years of video display processing excellence Leading the high resolution revolution Video processing innovation pioneer 4
5 Markets We Address Display Quality Matters 5
6 3 rd Wave of Display Technology Resolutions increasing across all displays TVs 4K+ Ultrabooks 4K Tablets 1080p Smart Phones 4K 480i 4K Wave 1 Wave 2 Wave 3 6
7 Display Processing Trend Iris Family Features Low Power Blur-Free video Sharp, lifelike images Rich, vibrant colors Scaling Backlight control Clear outdoor viewing Bringing TV Level Processing to Mobile 8K Resolution Super Res, HDR 4K Ultra HD 240Hz MEMC adaptive scaling Halo free video LED Local dimming 4K UHD 120Hz MEMC Variable Frame Rate Variable refresh rate HD Advanced Scaling 120Hz 2K 2K Retina Display HD Resolution 7
8 OTT Driving Massive Wave of Video Internet Video All Other Video 80-90% of all Internet traffic TV Smartphones Tablets PCs 1.3B 2.8B Source: Cisco Virtual Networking Index 4K streaming just beginning Source: Display Search Video Creation Video Consumption HDTV New ways to create, share & view videos appearing daily Game Consoles Ultrabooks In the long run.. The future vision of the technology is to offer the same user experience across all screens Helen Chiang IDC analyst Tablets Smartphones 8
9 Viewing Experience Matters Higher Pixel Density 60 HDTV 5 Smartphone Pixels become unperceivable θ X 1 Y 1 10-inches Y 2 X 2 10-feet Increased Realism 5 smartphone at 10-inches is the same size as 60 TV at 10-feet 9
10 Rapid Cycle of Display Innovation Increasing PPI & Resolution Innovation Vectors Frame Rate 60Hz 120Hz 4K 55 LG TV 4K, 100PPI 13.3 ULTRABOOK 4K, 350PPI 5.5 MOBILE, UHD, 820 PPI 2K Gamut Expansion Display Technology 9.7, ipad Retina 2K, 263PPI 8, ASUS ZENPAD 2K, 300PPI FHD 6.1, MOBILE FHD, 240PPI 12.1, ULTRABOOK 2K, 250PPI Color Gamut LCD OLED Dynamic Range Expansion 13.3 NOTEBOOK FHD, 165PPI HD 13.3 NOTEBOOK HD, 110PPI
11 More Pixels, More Performance, More Power More Pixels More Performance More Power Quad HD 3.6 million pixels per frame 4K Ultra HD 8.8 million pixels per frame Competing for CPU cycles Need bigger and more expensive batteries 4080 x K Ultra HD Display 2560 x 1440 Quad HD 1920 x 1080 Full HD SoC Full HD 2.1 million pixels per frame Display processing efficiency critical as resolutions increase 11
12 Mobile Differentiation Trend More Pixels Thinner, Flexible Premium Features DIFFERENTIATION 42MP Camera Better Camera Longer Battery Life Better Displays 12
13 Iris Enables True Clarity Features Clear, Blur Free Video Sharp Life-Like Detail BETTER VIDEO Dynamic Range Enhancement Rich, Vibrant, And Accurate Colors BETTER OUTDOOR VIEWING Clearer Outdoor Viewing Experience BETTER COLORS 13
14 Asus: Innovator in Display Experience ASUS ZenPad 8.0 A vivid and rich HDTV tablet experience Clear, blur-free motion with Tru2Life+ Sharper, lifelike images with sharpness optimization Clearer and more vivid outdoor viewing experience in bright sunlight 200% wider contrast levels, enhances every pixel 14
15 Panel Electronics Iris Mobile Display Processor Efficiency Bottlenecks System memory Limited processing SoC performance Power SoC Processor Camera Video, Web Games, Motion 4G LTE, Wi-Fi Touch, Graphics Video Memory IRIS Panel Video frame buffer SOC offload Lower system power Simple supply chain + Picture Quality System Memory Backlight Clear, blur-free video Sharp life-like detail Higher dynamic range Rich, vibrant colors Clear outdoor viewing Iris is the world s first video display processor bringing superior picture quality while addressing system bottlenecks Today s Solution Limited video processing Discrete memory Increased space and power Increased panel costs Complex supply chain Iris Solution High-end TV HDR processing Integrated Video Memory Optimized for space and power Cost-effective panels Simplified supply chain 15
16 Mobile Display Processor Roadmap IRIS 1 Mobile display processor 5 15 displays, 2K IRIS 2 Optimized for mobile 5 10 displays, 2K Gen displays 4K resolution Lower power Advanced scaling Iris Gen displays More Feature integration Faster refresh rates End-to-end video support
17 Units (M) Expanding Mobile Market Opportunity Smartphones, Tablets, and Notebooks Large, fast growing TAM 2016 key inflection point K/4K Total 1.5Bu 1200 FHD Total 489Mu Source: Gartner IDC Display Search Business Intelligence Pixelworks Estimates
18 Pixelworks Technology Portfolio CAPTURE & SCALING & IMAGE FRAME RATE DISPLAY & PRE-PROCESSING IMAGE WARP ENHANCEMENT CONVERSION SYSTEM RELATED CAPTURE SCALING COLOR PROCESSING MEMC DISPLAY Analog front end 2D VDC 3D comb VDC VBI slicer edp 1.4 Rx MIPI DSI Rx NOISE REDUCTION Noise reduction MPEG artifact reduction DE-INTERLACING Motion adaptive de-interlacing Low angle interpolation 1D polyphase 2D polyphase SUPER RESOLUTION Single frame SR Multi-frame SR IMAGE WARP Lens correction Horizontal and vertical keystone correction Near eye display correction 6-axis control 17x17x17 3D LUT Dynamic contrast & color Advanced color control & correction Gamma correction Color configuration tools SHARPNESS 2D peaking & edge enhancement Gen-8 high PQ MEMC Mobile MEMC Offline MEMC Ultra-Mobile MEMC Variable rate n2m MEMC Halo free MEMC Very Low Framerate MEMC Host & authoring s/w & tools 3D PROCESSING 2D to 3D conversion Multi-view Depth control TCON Dynamic Backlight Control Daylight Viewing Local Contrast Enhancement 2D local diming LCD overdrive edp 1.4 Tx MIPI DSI Tx SYSTEM Memory compression lossless and lossy VESA DSC compression & decompression 135 patents related to Display Processing 18
19 Projector and Large Panel Markets Market Profile Primary market growth drivers Worldwide education market Connectivity and interactivity applications New Applications Video Wall, Digital Signage Long Cycle Times Units (millioins) Digital Projector Market 12M 10M 8M 6M 4M 2M Pixelworks Solutions dominate the market Growing market share Increasing penetration in DLP projectors Generations of Large Display Video Processors VueMagic Platform Adds Value High software content Software creates stickiness VueMagic Mate/Pro incremental opportunity 19
20 VueMagic Software Suite Interactive white board Projectors Video Wall Applications VueMagic Mate VueMagic Media Pro Present Connected classroom Share, Collaborate Any Content, Anywhere Digital Signage 20
21 Summary More video consumed as accelerating display technology advances create huge wave of pixels Creating system bottleneck and need for best picture quality Pixelworks leading customer validated display processing technology address the challenges Pixelworks first mover advantage addressing a massive market opportunity 21
22 Thank you!
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