brainchip files 2016 annual report - content.equisolve.net · 3/31/2017 · technology, hardware...
TRANSCRIPT
PRESS RELEASE
BrainChipFiles2016AnnualReport
AlisoViejo,CA–March31,2017,BrainChipHoldingsLtd.(ASX:BRN),(“BrainChip”or“theCompany”),isaleadingdeveloperofsoftwareandhardwareacceleratedsolutionsforAdvancedArtificialIntelligenceandMachineLearningapplications.TheCompanyhasdevelopedarevolutionarynewSpikingNeuronAdaptiveProcessor(SNAP)technologythatcanlearnautonomously,evolveandassociateinformationjustlikethehumanbrain.Thetechnology,whichisproprietary,isfast,completelydigital,andconsumesverylowpower.TargetmarketsincludeCivilandCommercialSurveillance,aswellasMachineLearning.
OnMarch30,2017,theCompanyissuedits2016AnnualReport.TheAnnualReportfeaturesanoperationalreview(lettertoshareholders)bytheCompany’sPresidentandChiefExecutiveOfficerLouisDiNardo,inwhichhehighlightsthesignificantprogressBrainChiphasmadewithregardtofurthercommercializationandrevenuegrowth.Overthepastyear,theCompanyhasdevelopedasolidstrategicplan;andhasmadeimportantpracticaladvanceswithregardtomarketselection,productdefinition,andtechnologydevelopment,puttingBrainChipinanexcellentpositionforgrowthin2017.
TheAnnualReportandoperationalreviewareavailableatthefollowingURL:http://ir.brainchipinc.com/asx-announcements.
Thefulltextoftheletterfollows:
ReviewofOperations
During2016,BrainChiptooksignificantstepstodevelopastrategicplanthatfocusesonmarketselection,productdefinition,researchanddevelopmentandbuildingateamthatcanexecuteasoundcommercializationstrategy.Wehavefieldprovensoftwareandalgorithms,anextensivenewproductpipelinethatwillbringSNAPtechnologytotheforefrontofbest-in-classArtificialIntelligencesolutions,andagrowinglistofmarqueecustomersandpartners:
MarketsSelection
ThemarketforArtificialIntelligencesolutionsisbroad.CurrentsolutionsincludeDeepLearning,whichcurrentlyrequiresextremelylargedatasetsandlongtrainingregimens,AutonomousSupervisedLearningforfeatureextractionandpatternrecognitionwithsmallsamplesets,andAutonomousUnsupervisedLearningwhennosamplesetexists.WithourproprietarySpikingNeuralNetwork,BrainChipexcelsinAutonomousLearning(SupervisedorUnsupervised).Oursignificantcompetitiveadvantagesarebasedonthecombinationofwell-developedalgorithmsandourhardware-basedprocessor.Mostimportantoftheseadvantagesisthespeedatwhichwecanextractafeatureoridentifyapatternwithinaverysmallsampleset.Fromasinglescreen-shotwecanreviewinreal-time,orfromstorageofmanyhoursofvideoorimages,andidentifyafaceorpatternwithgreataccuracy.
BrainChiphasmadethedecisiontofocusoursalesandmarketingeffortinitiallyonvisualapplicationsinCivilandCommercialSurveillanceaswellasMachineLearning.Thisdecisionisbasedonthelargesizeofthemarket,themissioncriticalandimmediatedemandspresentedbythethreatofterrorismandcrime,andmanufacturingefficacy.OurSNAPtechnologyisalsowellsuitedforapplicationsinFinTech(FinancialTechnology)suchascommoditiesandhigh-frequencytradinganalysisaswellasHighPerformanceComputing(HPC)fordataanalysisingenomics,seismicanalysis,naturalresourceextractionandcybersecurity.
CivilSurveillance
CivilSurveillanceincludesAutonomousFeatureExtraction(AFE)andPatternRecognitionforLawEnforcementandHomelandSecurity,AirportSecurity,aswellasSchoolCampusSecurity.BrainChiphasexistingcustomersineachofthesecategoriesincludingtheParisDepartmentofMunicipalLawEnforcementandtheFrenchDepartmentofHomelandSecurity(theDHS).OurworkwiththeDHShasresultedintheirissuanceofastrongformalendorsementfortheCompany’sFacialandPatternRecognitionproducts.During2016webuiltuponthisendorsementandaddednewcapabilitiesthatservetheircriticalrequirementsinfightingthethreatofterrorism.WecontinuetoworkwiththeDHStoaddimprovementsinfacialrecognitionandreal-timeanalysisoflivevideostreams.
WealsohaveexistingcustomersintheAirportSecuritysector.InBordeaux,France,BrainChipservestherequirementsforperimeterintrusionandairplanesecurityattheBordeaux-MerignacAirport.Ourearlysuccessinservicingtheseneedshasresultedinastrongformalendorsementfromthiscustomer.Also,inGeneva,SwitzerlandweservetherequirementsoftheOperationsCentreforPassengerandRestrictedAreaSurveillanceattheGenevaInternationalAirport.
Finally,in2016,BrainChipmadesignificantinroadsintotheareaofSchoolCampusSecurity.WecurrentlyhaveoneschoolinNewYork,U.S.,andanothermunicipalschooldistrictinNewYork,U.S.,wheretechnicalspecificationsarebeingreviewed.Deploymentforthesecustomersisexpectedin2017.
CommercialSurveillance
CommercialSurveillanceincludesCasinoGaming,AdvertisingTracking,ConsumerBehavior,andVehicleDetection.In2016,BrainChipaddedcustomersintheCasinoGamingmarket.Thefirstofthesecustomers,locatedinLasVegas,Nevada,U.S,isoneofthelargestcasinoswithintheMGMGroup(theMGMGroupisoneofthelargestownersofcasinosinNorthAmerica).BrainChipaddedanothersignificantCasinoGamingcustomerin2016,MoheganSun,locatedinUncasville,Connecticut,U.S.MoheganSunisoneofthelargestindependentcasinooperatorsintheU.S.WehavereceivednumerousinquiriesaboutourGameOutcomesolutionfromcasinooperatorsaroundtheworldandwearepursuingnewopportunitiesinthisspace.OurGameStatisticssolutionwillbeaggressivelymarketedtonewandexistingcustomersin2017.Weestimatethatthereareover2,600casinosworldwideandover50,000gamingtablesthatwouldbenefitfromtheuseofBrainChipsolutions.
In2016,BrainChipadvanceditsinvolvementintheVehicleDetectionarena.TheCompanyiscurrentlycollaboratingwiththeCiscoInternetInnovationCenterandCurtainUniversityinWesternAustralia(CIIC)onatwo-phaseproject.Phase1involvesvehicledetectionandidentification.Phase2involvesanin-vehiclecameratohelpdriversbetterunderstandtheirdrivingbehaviorandhabits.Thisprojectisunderwayandonschedule.InadditiontoourworkwithCisco,weareworkingwithmajorautomobilemanufacturersand/ortheirsuppliersonthepotentialdeploymentofourtechnologyinconjunctionwiththeirdevelopmentofautonomousvehiclesandAdvancedDriverAssistanceSystems(ADAS).
MachineLearning
MachineLearningincludesMachineVisionandahostofotheropportunitiesindataanalyticsforfinancialtransactions,genomics,seismic,naturalresourceanalyticsandcybersecurity.In2016,theCompanymadeimportantadvanceswithregardtoMachineVision.Specifically,weareengagedwithcustomersthatrequirevisualinspectionforhighvolumemanufacturingaswellasmissioncriticalassemblies.Safran,headquarteredinParisandoneofFrance’slargestindustrialcompaniesintheaeronauticssector,usesourAutonomousFeatureExtraction(AFE)andPatternRecognitioncompetencyinacomplexassemblyprocesstoensurequalityandreliabilityofthesystem.OurcurrentstrategyistoexpandourpresenceinMachineLearningandVisualInspectionwiththedevelopmentofautonomousdronesthatcaninspectinfrastructureandlargefacilitiesaswellastransportationofproductsinthenaturalresourcesindustry.
BrainChipbelievesthattherearenumerousotheropportunitiesfortheCompanytopursueinthenaturalresourcesindustry.Inordertoadvancethisagenda,wesignedanagreementin2016withAdvisian,aconsultinggroupwithintheWorleyParsonsCorporation.TheobjectiveofthisagreementistoexploreandcapitalizeonimportantopportunitiesforourSNAPtechnology.Asourhardwaresolution,SNAPvision,becomesavailablein2017,andthismarketwillbeamajorfocus.
ProductDefinition
On15September2016,BrainChipannouncedtheacquisitionofSpikenetTechnology,locatedinToulouse,France.Spikenethasbeenaproviderofsoftware-basedneuralnetworkingtechnologysinceitsinceptionin1999.ThecompanyhaswelldevelopedrelationshipsinCivilSurveillance,CommercialSurveillance,andMachineVision.ThepurposeoftheacquisitionwastoaccelerateBrainChip’sproductdevelopmentplanbyintegratingtheSpikenetalgorithmswiththeBrainChipSpikingNeuralAdaptiveProcessor(SNAP)andlearningrules.BrainChipiswellpositionedtodemonstrateleadershipproductsinabroadrangeofArtificialIntelligenceapplications.TheCompany’sproductroadmapisdepictedasfollows:
Theintegrationofthesetechnologieswillprovideauniquehigh-speed,low-powerimageandvideoprocessingplatformforAutonomousFeatureExtraction(AFE)andpatternrecognitionapplications.TheculminationofthisintegrationwillresultinaFieldProgrammableGateArray(FPGA)SNAPsolutionthatcoversawide-rangeofcomplexityandcostpoints.BrainChiphasdefineda4-Channel,8-Channeland16-ChannelfamilyofproductsthatarePCIeplug-incardsforLinuxorWindowsvideoserverswhichshouldopenupawidevarietyofpotentialcustomerstotheCompany.ArepresentationoftheBrainChipFPGAisdepictedinthefigurebelow:
Illustrationonly–implementedonanFPGA
ResearchandDevelopment
ResearchandDevelopment(R&D)includesneuromorphicsemiconductordevelopmentandneuralcomputing,algorithmdevelopment,software,andhardwaredevelopmentaswellasintegrationengineering.BrainChipnowhastwodesigncentersinwhichtheCompany’sR&Dactivitiestakeplace.ThefirstcenterisinToulouse,Francewherewehaveateamofhighlyskilledengineersthatfocusonalgorithmandsoftwaredevelopment.ThisteamhasdevelopedFacialandPatternRecognitiontechnologythathasbeencommerciallydeployedandisbasedonseveralgenerationsofdevelopment.ThesecondR&DcenterislocatedinAlisoViejo,California,U.S.Thisteamcomprisesasimilarlyhighlyskilledgroupofengineerswhofocusonneuromorphicsemiconductortechnology,hardwaredevelopmentandsystemsolutions.During2016andcontinuingin2017,wewilladdsignificantresourcesinallareasofR&D.
Inthefirstquarterof2017,weannouncedanexclusivelicensetonext-generationlearningrules(JAST)andhardwareimplementationfortheCERCOMindandBrainCognitionResearchCenterinToulouse,France.ThisexclusivelicenseprovidesBrainChipanewplatformforAutonomousUnsupervisedLearning.ThistechnologywillbeimplementedontheBrainChipSNAPsolution.Theresultofthisintegrationwillbeanunparalleledcapabilityforreal-timeanalyticsofvideoandimages,audio,andotherdatastreams.
HumanResources
HumanResourcesincludestheestablishmentofamanagementteam,recruitingandretainingtopengineeringtalentandstrengtheningourBoardofDirectors.During2016,managementandtheBoardofDirectorshasfocusedonrecruitingafullmanagementteamandexpandingtheskillsetsalreadyrepresentedontheCompany’sBoardofDirectors.TheCompanycurrentlyemploys24peopleandhasaddedseniorengineeringtalentinAlisoViejo,California,U.S.andToulouse,France,allofwhichhavesignificantexperienceintheirrespectiveareas.
ManagementandProfessionalStaff
Inthefourthquarteroftheyear,IwashiredasCEOoftheCompany,relievingPetervanderMadewhoperformedtheCEOroleonaninterimbasisinconcertwithhisotherpermanentresponsibilitiesastheChiefTechnologyOfficer.
BrainChipalsoaddedaUS-basedseniorfinanceprofessionaltoitsteamthisyear,CossetteDrossler.Ms.DrosslerjoinedtheCompanyinNovemberof2016asVicePresidentofFinanceandAdministration.Ms.Drosslerhas30yearsofexperienceasafinanceandaccountingexecutiveintheSanFranciscoBayArea,CaliforniaU.S.
Inthefirstquarterof2017theCompanyhiredRobertBeachlerwhohasjoinedtheCompanyasSeniorVicePresidentofMarketingandBusinessDevelopment.Mr.Beachler,aSiliconValleyveteranwithover30yearsofsuccessindevelopingandmarketingcutting-edgetechnologies,isanimportanthireinsupportoftheCompany’smissionforgrowth.Hisbackgroundincludesmorethan16yearsofexperienceinavarietyofengineeringandmarketingrolesatAlteraCorporation,aleadingproviderofFieldProgrammableGateArrays(FPGA)productswhichwasacquiredbyIntelCorporationin2015foroverUS$16billion.HehasalsoservedasVice-PresidentofMarketing,Operations,andSystemsDesignatStretchInc.,aproviderofembeddedvideoprocessingsolutionsupuntilitsacquisitionbyExarCorporation.WhileatExar,Mr.BeachlerservedasVicePresidentofCorporateMarketingandBusinessDevelopment.Mostrecently,Mr.BeachlerservedatXilinxCorporation,theleadingworldwideindependentproviderofFPGAproductswhereheledthe
marketingofimaging,videoandmachinelearningsolutionsforindustrial,scientific,andmedicalmarkets.
BoardofDirectors
InNovemberof2016,theBoardofDirectorsrecruitedJulieH.Stein,ahighlyseasoned,US-basedfinanceprofessional.Ms.SteinbeganhercareeratGoldmanSachsin1981.Subsequently,shejoinedtheinvestmentbankingfirmofSalomonBrothers.Sheco-foundedtheinvestmentanddevelopmentfirmofSKSInvestmentsin1992andsuccessfullyexecutedaseriesofjointventureswithmajorglobalinstitutionalinvestors.Overthecourseofhercareer,Ms.Steinhasbeeninvolvedwiththeunderwriting,negotiating,structuringand/orplacementoffinancialtransactionsaggregatingoverUS$10billion.Inadditiontoholdinganumberofadvanceddegrees,Ms.SteinisaNationalAssociationofCorporateDirectors(NACD)LeadershipFellowandholdsaCertificatefromStanfordUniversityDirectors'College.
Conclusion
Insummary,BrainChipmadesignificantprogressin2016.TheCompanyhasdevelopedasolidstrategicplanwithregardtomarketselection,productdefinition,technologydevelopmentandbuildingateamdesignedforcommercializationandgrowth.TheCompanyhasmadeimportantpracticaladvancesineachoftheseareasin2016,puttingBrainChipinanexcellentpositionforgrowthin2017.Importantly,wehavegloballeadersworkingwithustodefineproductsandwehaveanexcellentdesignteam.Wearenowbuildingabest-in-classsalesandmarketingorganizationtodrivefurthercommercializationandrevenuegrowth.
Sincerely,
LouisDiNardo
BrainChip
PresidentandChiefExecutiveOfficer
AboutBrainChipHoldingsLtd(ASX:BRN)
BrainChipisaleadingproviderofsoftwareandhardwareacceleratedsolutionsforAdvancedArtificialIntelligenceandMachineLearningapplications.TheCompany’sSpikingNeuralAdaptiveProcessor(SNAP)canlearnautonomouslywithasmallsamplesetandprovidereal-timeinformation,dataanalyticsandknowledgeinimageandvideoprocessingapplications,highfrequencydatastreamsforfinancialanalysisandevent,speech,andspeakerrecognitionfromaudiosources.BrainChip’sSNAPtechnologycanquicklylearn,recognize,andtrackeventsinrealtimefrommultiplesourcesandidentifyrepeatingpatternsincomplexdatastreams.TheCompanycurrentlyprovidessoftwareandhardwareacceleratedsolutionsthataddresshigh-performancerequirementsinCivilSurveillance,FacialRecognition,andVisualInspectionsystems.Futuresolutionsincludeaudioanalyticsanddeeplearningforfinancialandotherdataintensiveapplications.www.brainchipinc.com.
CompanyContact:CossetteDrosslerVPFinanceandAdministration+1(949)330-6754
InvestorContact:LauraGuerrant-OiyePrincipalGuerrantAssociates+1(808)[email protected]
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