Safe Harbor Summary. Inphi Proprietary

Transcription

1 Safe Harbor Summary This presentation includes forward-looking statements relating to matters that are not historical facts, including, without limitation, statements regarding Inphi s short and long term growth strategies, trends in IP traffic and technology adoption, the future sizes and anticipated growth of the networking infrastructure, cloud computing and data center markets, and the scaling of memory capacity with CPU cores. In some cases, such forward-looking statements are identified by words such as anticipate, believe, plan, estimate, expect, strive, future, intend and similar expressions. Although Inphi s management believes that the expectations reflected in the forward-looking statements are reasonable, such statements involve known and unknown risks, uncertainties and other factors that may cause Inphi s actual results to be different from any future results expressed or implied by these statements, including the risks and uncertainties described in our annual report, and other filings with the U.S. Securities and Exchange Commission made from time to time. We caution you that no forward-looking statement is a guarantee of future performance, and you should not place undue reliance on these forward-looking statements which reflect the view of Inphi s management only as of the date of this presentation. We assume no obligation to, and expressly disclaim any obligation to, update any forward-looking statements contained in this presentation as a result of new information or future events or developments. 1

2 Inphi Moves Big Data Faster Inphi Corporate Update July 28, 2015

3 Inphi At A Glance $160M fabless semiconductor company Founded 2000, IPO 2010 (NYSE: IPHI) Optical, networking, memory interconnect leader, addressing multi-billion dollar TAM Focused on service provider and data center customer success Acquired Cortina Systems October 2014 Over 220 million units shipped lifetime 455 employees worldwide, 75% engineering 3

4 Inphi Global Locations Support Customers and Attract Talent Worldwide Offices in North America, Asia-Pacific, Europe Inphi HQ: Santa Clara, CA Design Centers USA: Folsom, Irvine, Raleigh, Santa Clara, Westlake Village Canada: Ottawa, Vancouver United Kingdom: Northampton Asia-Pacific: Singapore Sales & Support USA: Austin, Folsom, Kansas City, Santa Clara, Westlake Village Europe: Milan, Munich Asia-Pacific: Beijing, Seoul, Shanghai, Shenzhen, Wuhan, Tokyo Operations USA: Santa Clara, Westlake Village Asia-Pacific: Malaysia, Singapore, Taiwan 4

5 Exponential Growth of Data/Bandwidth 44% Content CAGR Micron Analyst Day 66% Cloud Traffic CAGR Cisco Cloud Index Report Hundreds of Millions of DC Square Feet Task Force, May % of the World s Energy Consumption ZDNet, Pivotal, Digital Power Group 5

6 Accelerating Need for Data Center Interconnects Cloud IoT Wireless Web 2.0 Big Data Social Media e-commerce 6

7 Inphi Leads in Data Movement Interconnects Optical Networking Memory 3,000km 100s meters Centimeters 7

8 Problem We Solve: Digital-Analog Divide 100x in 10 Years 15x in 10 Years MOORE S LAW Digital Analog, Mixed-Signal Interconnects 8

9 Inphi Leads in Data Interconnects from Fiber to Memory Optical Networking Memory Amplifier CDR/SerDes Buffer Fiber Memory Driver Framer/Mapper Register High-Speed Data Transport and Signal Integrity 9

10 Inphi Has Multiple Growth Drivers Optical Networking Memory 2014 Amplifier, Driver 100G CFP LRDIMM DDR Metro 10G/40G Haswell DDR Data Center 100G QSFP Broadwell DDR4 Multiple New Products Fuel Revenue Growth 10

11 Focus on Tier 1 OEM/Module Customer Success 1. Carrier and Service Providers Long-Haul Metro 2. Data Centers Enterprise Cloud 11

12 Interconnect Products, Target Markets & Customers Optical - Amplifier - Driver Networking - CDR/SerDes - Framer/Mapper Memory - Buffer - Register Communications Between and Within Data Centers for Service Provider, Data Center Inside Server and Storage for Data Center 12

13 Large Total Available Market (TAM) Multi-billion dollar interconnect TAM Memory: 10s Million DRAM Modules Optical, Networking: 10s Million 10G/40G/100G Ports Carrier & Service Providers: Long-Haul and Metro Data Centers: Enterprise & Cloud 13

14 Consistently Growing Revenue Non-GAAP Quarterly Revenue Annual Revenue ($M) Quarterly Revenue ($M) $160 $120 $92 $103 $61 $24 $ H '2015 Q2'13 Q2'14 Q2'15 *Organic growth approximately 23% CAGR ( ) 14

15 Consistently Growing Profitability Non-GAAP Operating Margin EPS 20.0% $ % $ % Q2'13 Q2'14 Q2'15 $0.01 Q2'13 Q2'14 Q2'15 15

16 Interconnects Between Data Centers: The Cloud is the Network TM

17 The Cloud is the Network 2014: 1.4 Terabits per Second per Super Channel 2015: 12.6 Terabits per Second per Fiber Pair 44 uncompressed HD movies per Second 17,500 km of HD streaming, e-commerce, cloud 17

18 Inphi Leads Industry to 1 Terabit Per Second 1000 Long-Haul Metro Inphi Amplifier & Driver Bandwidth (Gigabit Per Second)

19 Inphi Supports Tier 1 Customers with 100G with Linear TiA, Driver 10G 40G 100G 200G 400G 1T TIA Limiting Linear Driver Limiting Linear 100% 80% Estimated market share of Linear Drivers for 100G 1T 60% 40% 20% Limiting 0%

20 100G Adoption Is Accelerating in Long-Haul & Metro Forecast Improving over Time G July November May G Long-Haul & Metro TAM (KU Ports) Source: Infonetics, July 2015 and prior forecasts November 2014 and May

21 Industry Leading Linear Coherent Solutions 100G/200G (Now) 400G (2016) 32GBaud Linear Driver Next-Gen 45GBaud Linear Driver 4 out of 4 Tier 1 OEMs use Inphi linear amplifiers 3 out of 4 Tier 1 OEMs use Inphi linear drivers Inphi is first to market with 45GBaud linear driver and amplifier solution for 400G 32GBaud Linear Amplifier Next-Gen 45GBaud Linear Amplifier 21

22 World s First 45Gbaud Driver 10,000 km subsea transmission, 8QAM, 300Gbit/sec 22

23 Optical Transport Products Key Products T40/T41 T100 Optical Transport Network (OTN) OTN for DWDM and IPoDWDM 10G, 40G and 100G applications Inphi/Cortina 100G FEC technology used globally by carriers Shipping in Tier 1 & 2 vendor systems (>25) OTN for Metro and Data Center Transport Working with Tier 1 OEM s on next generation platforms to address Ethernet transport 23

24 Interconnects Inside Data Centers: The Data Center is the Computer TM

25 The Data Center is the Computer Growing 10Ks to 100Ks Servers per DC Creating massive interconnects (10G 1T) 25

26 Transition to Fiber, Direct Attach Cable PHYs Fiber / DAC BASE-T 1G 10G 25G 40G 50G 100G 400G 100% Estimated Capture Rate by Fiber/DAC into BASE-T PHY Share BASE-T PHY 0% Source: Inphi Estimates, Crehan Research, February

27 Distances, Speeds Drive Optics/Electrical Transition Mega Data Center 500m-2km distances Source: Corning Longer Distances = Single Mode Fiber Cost Effective 100G = DSP-based PAM Optics 27

28 100G Roadmap to Lower Cost, Higher Density 2012 CFP : 400G 1RU 12W-24W 2014 CFP2 : 800G 1RU 12W-14W QSFP28 : 3.2T 1RU 3.5W 100G QSFP Inflection 4X Density ~1/4 Power Lower Cost 28

29 Inphi Provides Complete Solution Partner Optics Linear TiA, Driver PAM: DSP, ADC SerDes Optics 2.0 Lower Power Lower Cost 100G Speed 29

30 10G/40G, 100G Growing Rapidly in Data Center G/40G G G, 40G DC TAM (MU Ports) 100G DC TAM (MU Ports) Source: Infonetics, November 2014, Crehan Research January

31 The Future is PAM 40G 50G 100G 200G 400G 10 m 300m 300 m 2Km 2Km-10Km >10Km 31

32 28Gbaud PAM4 Becoming Industry Standard for Duplex Fiber (both MMF and SMF) 40G, 50G, and 100G 28Gbaud PAM4, will enter market in 2016 Lower cost than 4x25G NRZ CWDM and supports multiple market segments including Enterprise (10m to 2km) and Datacenter (300m to 10km+) IEEE: approved by 75%+ majority 8x50G PAM4 for 400G Ethernet, March 2015, May 2015, July 2015: Line cards: 10km: 2 km: 400G standard creating pull for PAM4 multi-source agreements (MSA): 40G and 50G in SFP/QSFP modules, 100G in QSFP modules, 40G, 50G, 100G, 400G PAM4 solutions sampling from Inphi now! Demonstrated 35dB Backplane, 5m copper twinax with double stacked QSFP, 35km optical fiber 32

33 Inphi First to Sample 40/50/100/400 Gigabit Ethernet PAM4 IC Solutions Partner Optics Linear TIA PAM ASIC: DSP, ADC, SERDES 40G Module 40G 100G 100G Module 4x10G NRZ 4x10G NRZ FEC Encode 40G PAM Tx 40G PAM TOSA 1λ 4x25G NRZ 4 Lane CAUI RX FEC Encode 2x50G PAM Tx 2x50G PAM 2x TOSA + Optical Mux 2λ I2C I2C 4x10G NRZ 4x10G NRZ FEC Decode 40G PAM Rx 40G PAM TiA ROSA 1λ 4x25G NRZ 4 Lane CAUI TX FEC Decode 2x50G PAM Rx 2x50G PAM TiA 2x ROSA + Optical Demux 2λ 50G Module 50G 400G 400G Module 1x50G PAM 1x50G PAM 50G PAM Rx 50G PAM Tx 50G PAM Tx (28GBaud) 50G PAM Rx (28GBaud) 50G PAM I2C 50G PAM TiA TOSA ROSA 1λ 1λ 16x25G NRZ 16x25G NRZ 16x25G Rx 16x25G Tx FEC Encode FEC Decode 8x50G PAM Tx 8x50G PAM Rx 8x50G PAM I2C 8x50G PAM TiA 8x TOSA + Optical Mux 8x ROSA + Optical Demux 8λ SMF 8λ SMF 33

34 CPU + I/O Controller Backplane Optical Modules or Cables Networking Interconnect Products Key Products Differentiators 10G/40G Product Family (Cortina) EDC CDR CDR EDC EDC CDR CDR EDC Unique Electronic Dispersion Compensation (EDC) signal processing architecture PHY 10G/40G Products (Cortina) PHY Best power, latency and performance trade-off Flexible multi-function capability Strong ecosystem; millions ports shipped System ASICs Tbps Capacity NX100G 100G SERDES 100G SERDES 100G SERDES 100G SERDES 100G SERDES 100G SERDES 100G SERDES 100G SERDES 100G SERDES 100G SERDES NX100G 100G MODULE 100G MODULE 100G MODULE 100G MODULE 100G MODULE 100G MODULE 100G MODULE 100G MODULE 100G MODULE 100G MODULE 100G Product Family Industry leading performance and power High resolution iscan TM signal integrity Solid industry footprint across service provider and Data Center Roadmap to higher modulation DSP, FEC 1 st Gen (Gearbox) 2 nd Gen (Gearbox) 3 rd Gen (CDR) 34

35 Interconnects Inside Server and Storage: Scalable Memory Solutions

36 Data Increasing Faster than Server Units Server Unit CAGR 5% ( ) 100 Server Units (M) 5 32 Content CAGR 44% ( ) 50 Content (GB DRAM /Server) Source: Micron Analyst Day, February

37 2133 MT/s 2133 MT/s 2133 MT/s 2133 MT/s 2133 MT/s 2133 MT/s 2133 MT/s 2133 MT/s Memory Interconnect Products Key Products Differentiators up to 18 cores & 36 threads per socket up to 45 MB Shared Cache Memory Controller Link Controller Memory Registers for DDR4 RDIMMs Industry s 1 st 40nm solution Lowest power consumption Best-in-class signal integrity RDIMM Solutions DDR4 Channel LRDIMM Solutions DDR4 Channel Memory Buffers for DDR4 LRDIMMs Industry s 1 st 40nm solution Highly-programmable to optimize OEM platform performance Scalable architecture for future persistent memory solutions Memory Register Memory Buffers Scales System Memory Capacity up to 4x Increases System Memory Performance >15% Lowers System Memory Power by >10% 37

38 TAM Expansion from Increased ASPs & Unit Volumes $450 Semiconductor TAM ($M) CAGR 21% ( ) $300 Non-Volatile DRAM CAGR 143% DDR4 CAGR 49% $150 DDR3 $ *CAGR **Source: IHS, Micron, Inphi Estimates 38

39 Inphi Strong Leadership from Comms/Server Position Dr. Ford Tamer John Edmunds Dr. Loi Nguyen Sudeep Bhoja Vinod Lakhani Background President and CEO CFO Founder, Sr. VP, Optical Interconnect CTO, Networking Interconnect VP, Memory Interconnect Dr. Radha Nagarajan CTO, Optical Interconnect Charlie Roach Hojjat Salemi Siddharth Sheth Dr. Ron Torten Lawrence Tse VP, Worldwide Sales VP, Optical Transport Networks VP, Networking Interconnect Sr. VP of Operations and IT VP of Engineering 39

40 Inphi Recognized for Supplier Excellence Sumitomo Awards for Excellence Cisco New Emerging Technology Supplier 2015 Samsung Best Quality Company NeoPhotonics Supplier of the Year 2015 ECN Impact Award

41 Innovation Drives Customer Success G Differential Drive Modulator Driver + 40G TIA 2009 LRDIMM Buffer + 28G Coherent TIA + 28 Gbps Differential Modulator Driver 2004 DDR2 Register and PLL G CMOS SERDES + 32G Linear Modulator Driver 2008 DDR3 Register G Linear Modulator Driver + Coherent TIA + PAM 41

42 Thank You