investor presentationotc.nfmf.no/public/news/5671.pdf · solutions to the voip industry – an...
TRANSCRIPT
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www.globalipsound.comwww.globalipsound.com
Investor Presentation
January 9, 2007
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www.globalipsound.com
Agenda
• Q4 2006 Financial Review
• 2007 Perspective
• Results and Conclusions
• Q & A
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www.globalipsound.com
Q4 2006 Results
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www.globalipsound.com
Q4 2006
• Continuing quarter over quarter growth
• 25 Deals signed in 4Q’06, vs. 20 in 3Q’06
• 21 Design Wins
– New Key Customers include Oracle & SK Communications
– Expanded relationships with Texas Instruments, Yahoo! & Net2Phone
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www.globalipsound.com
Investor Program• Objective
– To improve time and quality of communication to investors
– Promote GIPS investment value
– Address investor concerns immediately
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www.globalipsound.com
2007 Plan
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www.globalipsound.com
Current Global IP Sound Vision and Strategy
• Global IP Sound has set a vision to become the premier voice-processing company providing world leadership in embedded solutions to the VoIP industry – an industry transforming and revolutionizing the face of telecommunications for individuals around the globe
• More simply stated, our vision is to have every IP-enabled media powered by GIPS
• Our strategy is to target manufacturers of chips, gateways, ATAs, IP Phones, application developers and ISPs with comprehensive, embedded media processing solutions
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www.globalipsound.com
Global IP Sound Vision and Strategy
• Our vision also includes reaching $100M (US) in revenue
• How do we reach $100M
1. More of what we are doing2. Expansion of our product offering3. Change of business model4. All of the above!
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www.globalipsound.com
Global IP Sound Vision and Strategy
• To date, GIPS has seen great success in the market– De facto standard– Marquee client roster– Achieving revenue targets
• Identified opportunities to accelerate this success– Expand Sales– Capitalize on new markets– Evolve the business model
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www.globalipsound.com
Expanding Sales• Accelerate the pipeline
– 800 + Accounts
• Increase in GIPS Sales Force– Double the size of GIPS sales force– All regions
• Focus on royalty revenue– Farming accounts to ensure deployments– Modified compensation plans to accelerate royalties
• Development into new territories– South America– Further Asian expansion
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www.globalipsound.com
Sales Pipeline
Category Current Previous Current Previous Current Previous Current Previous Current Previous Current Previous
Chips 12 17 21 18 7 5 8 4 3 5 18 16Systems 39 41 49 63 33 25 24 18 8 3 40 39Servic Providers 100 107 36 44 15 10 7 4 7 6 37 37Applications 128 127 52 43 31 36 24 24 21 9 62 58
Total 279 292 158 168 86 76 63 50 39 23 157 150
Total Previous Active Account 759Total Current Active Accounts 782
Sales Pipeline Summary as of Dec-2006
Negotiation LaunchExplore Discovery Evaulation Biz Dev
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www.globalipsound.com
Royalty Analysis
2005 2006 2007
2005 - 2007 Royalty Revenue
EuropeUS EastUS WestAsia
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www.globalipsound.com
Royalty Analysis
2005 2006 2007 2008
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www.globalipsound.com
Royalty Analysis
Time from Signing to Launch - All Regions
0
1
2
3
4
5
6
7
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29
All Regions
55 accounts not yet launched
# of
Acc
ount
s
Time to launch - Months
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Royalty – Aging Analysis
• 55 accounts not yet launched
Year Signed # of accounts Overall Percentage2002 1 1.8%
2003 1 1.8%
2004 6 10.9%
2005 15 27.2%
2006 32 56.3%
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www.globalipsound.comwww.globalipsound.com
2007 & Beyond
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Global IP Solutions
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Global IP Solutions
• Expansion and enhancement
• Global IP Sound is now Global IP Solutions to better reflect its enhanced offerings
• GIPS now has two business units
– GIPS Solutions
– GIPS Media Engines
• Global IP Solutions reflects our broader technology offerings
• GIPS has significant brand recognition within the VoIP community, which will maintain our market visibility and value
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2007 Vision
• Move from a voice processing company to a media processing company
– Voice and Video strategic focus for the company• Will integrate video into all of GIPS engines -- clients and servers
– Acquired IPR from Espré Communications Inc.• Espré LSVX video codec• Will develop on top of IPR to bring LSVX into leadership position
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Capitalizing on New Markets• Signed Definitive Agreement to acquire CrystalVoice
– Expect to close on January 15, 2007
– Evolve and expand GIPS with established and field-proven VoIP technology
– Complete solutions that move GIPS higher up the value chain
– IP PBX enhancements• Remote Extension application• Click-to-talk application
– Two groups within GIPS• Media Engines• Solutions
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Solutions Product Line
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EmbeddedSolutions
NetEQ
VoiceEngine
Client/Server Embedded Solutions
ConferenceEngine
Global IP Solutions
Applications
EmbeddableApplications
Future Offerings
Remote Extension
Click-to-TalkEmbeddedRE
Embedded CTT
AEC
AES
NEC
Product Evolution
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Justification• IPR
– 4 additional patents, 4 more patents in review– Will enhance current GIPS offering (NAT/FW technology,
two-sided solutions, bandwidth management)– Ability to control video IPR
• Expands GIPS Total Available Market (TAM)– Healthy Pipeline– Markets Growing– New Emerging Markets
• Grow the organization with limited exposure and low risk– Committed technology team with established rapport
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Revised Organization
Gary Hermansen
Solutions Sales(1) CTO Engineering Marketing Sales Finance Business Development
Cisco Channel Rep(1)
Avaya Channel Rep(1)
3Com Channel Rep(1)
Solutions Engineering
(8)
SolutionsMarketing
(1)= Solutions
Human Resources
= Engines
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Capitalizing on New Markets• Partner with Industry leading companies to expand product offering
– Paradial -- leading NAT and FW traversal technology that will be incorporated into VoiceEngine Secure
– ADI -- VoIP reference designs for ATAs and IP Phones
– Gemtek – ATA device that is market-ready Q1 2007
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Evolve The Business Model
• Focus on mobile market– Defined as all media processing non-PC devices with wireless IP
communication– Laying ground work now for a ’09 and beyond market
• Mobile market comprised of six segments:– Device Manufacturers– Infrastructure Providers– Enterprise– Network Operators– Internet Service Providers– Application Developers
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Results and Conclusions
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What it Means• Global IP Sound will become Global IP Solutions
• Two business groups
• Media Engines
• Solutions
– Additional IPR– Enhanced Partnering– Accelerate Revenue Growth
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2006 2007 2008 2009
The $100 Million Mark