ralink technology (taiex:3534) company profile-ralink confidential-8 0 100,000 200,000 300,000...
TRANSCRIPT
Ralink Technology (TAIEX:3534) Company Profile
Fast. Far-reaching. Reliable
Ralink Technology Corp.
Ralink Technology
Founded in 2001 & shipping since 2003
Headquartered in Hsinchu, Taiwan
Branch Offices in US, Europe, Japan, China
600 employees worldwide
Top 4 WLAN IC-solution provider with 12~15% global market share; top 3 xDSL IC-solution provider with 22~25% global market share.
Taiwan IPO in April, 2008
– Stock Code: 3534 (TT)
– Capital: 58.6 million (USD)
– Market Cap: 620.9 million (USD)
Note: USD:NTD=1:29.8; stock quote at NTD 106 per share. (As of January 10 , 2011)
- Ralink Confidential -2
Global Wi-Fi Market
675.9M
945.4M
1,257.5M
1,607.5M
1,922.8M
Source: In-Stat, 2010
(Year)
(Unit)
Global ADSL MarketBroadband Subscribers (in millions)
Year
xDSL accounts for ~ 60% of the global broadband market.
Source: iSuppli, 2010
Wireless LandscapeRalink is focusing on Wi-Fi IC design
WPAN
Bluetooth 802.15.1 – 2.4Mbps
ZigBee802.15.4 – 20kbps
UWB802.15.43– 55Mbps
WMAN
WiMAX802.16 d.e 50 – 134 MbpsWLAN
Wi-Fi 802.11a – 54Mbps (5GHz)802.11b – 11Mbps (2.4GHz)802.11g – 54Mbps (2.4GHz)802.11n – 150~600Mbps (2.4GHz/5GHz)
3G 1~3.5 Mbps3.5G 3.6~7.2 Mbps
Cellular
- Ralink Confidential -5
Shipment Breakdown by Applications
Broadband
29%
PC/NB
20%
CE
9%
Retail
42 %
11n vs. 11a/g(1Q09 ~ 3Q10)
Product mix(3Q10)
- Ralink Confidential -6
1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10
11a/g 49% 38% 29% 27% 21% 14% 12%
11n 51% 62% 71% 73% 79% 86% 88%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Note : Consolidation with TrendChip since October. 2010.Prior to 4Q10, all graphs, charts were made based on pre-merger data
Ralink’s Shipment Record
- Ralink Confidential -7
22.4 M units shipped in 3Q10, representing a 2.6% QoQ shipment growth, and a 45% YoY shipment growth
Achieved 50% Wi-Fi shipment growth and 40% ADSL shipment growth respectively in 2010
Note : Consolidation with TrendChip since October. 2010.Prior to 4Q10, all graphs, charts were made based on pre-merger data
Track records 2008-2010(NTD thousands)
NTD Thousands
Jan. Feb. Mar. Apr. May. Jun. Jul. Aug. Sep. Oct. Nov. Dec.
Net Sales 540,312 556,006 580,936 606,537 670,960 685,781 687,727 654,047 563,962 582,886 614,927 616,623
MoM 7.6% 2.9% 4.5% 4.4% 10.6% 2.2% 0.3% -4.9% -13.8% 3.4% 5.5% 0.3%
YoY 104.5% 102.0% 91.2% 72% 64.5% 68.0% 62.3% 30.5% 5.0% 5.8% 10.5% 23%
- Ralink Confidential -8
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2008
2009
2010
Note : Consolidation with TrendChip since October. 2010.Prior to 4Q10, all graphs, charts were made based on pre-merger data
NTD (Thousands) 3Q10 2Q10 QoQ
Net revenues 1,905,736 100.0% 1,963,279 100% -2.9%
Gross profit 843,955 44.3% 881,218 44.9% -4.2%
Operating expenses (602,050) (31.6%) (567,304) (28.9%) 6.1%
Operating income 241,905 12.7% 313,914 16.0% -22.9%
Non-operating income (loss) 26,646 1.4% 22,646 1.2% 17.7%
Pretax income 268,551 14.1% 336,560 17.1% -20.2%
Net income 262,372 13.8% 325,892 16.6% -19.5%
EPS (NT dollars) 2.04 2.50
Employee profit sharing 79,017 107,734
Ralink’s Income Statement
※Concise Consolidated Income Statement (pre-merger)
- Ralink Confidential -9
Ralink’s Balance Sheets(In NT thousands, except indicated otherwise) 3Q10 2Q10
Cash & Financial assets-current 5,224,076 5,361,868
Notes & Accounts receivable (net) 1,087,241 1,132,472
Inventory (net) 649,820 503,310
Total assets 7,512,249 7,495,349
Notes & Accounts payable 1,768,920 1,739,961
Long-term liabilities 933 1,244
Total liabilities 1,867,581 2,094,592
Paid-in capital 1,285,642 1,256,155
Total shareholders' equity 5,644,668 5,400,757
Key indices
Net value per share (NTD) 43.9 43.0
Current ratio 379% 338%
A/R turnover days 53 47
Inventory turnover days 50 39
- Ralink Confidential -10
※Concise Consolidated Balance Sheets (Pre-merger)
- Ralink Confidential -11
New Ralink’s Merger Progress
Previous Share Swap Ratio : TrendChip : Ralink = 0.8209 : 1
Final Share Swap Ratio : TrendChip : Ralink = 0.7939 : 1
New Ralink’s Capital : 174,562,423 shares
Consolidation Date : Oct. 1st , 2010
NTD (Thousands) 2Q10 1Q10 QoQ
Net revenues 733,240 100% 714,738 100% 2.6%
Gross profit 232,386 31.7% 228,827 32.0% 1.6%
Operating expenses 143,058 19.5% 151,597 21.2% (5.6%)
Operating income 89,328 12.2% 77,230 10.8% 15.7%
Non-operating income (loss) 1,446 0.2% 312 - 363.5%
Pretax income 90,774 12.4% 77,542 10.8% 17.1%
Net income 90,774 12.4% 77,542 10.8% 17.1%
EPS (NT dollars) 2.46 2.10
TrendChip’s Income Statement
※Concise Consolidated Income Statement
- Ralink Confidential -12
TrendChip’s Balance Sheets(In NT thousands, except indicated otherwise) 2Q10 1Q10
Cash & Financial assets-current 1,080,486 955,115
Notes & Accounts receivable (net) 347,555 325,865
Inventory (net) 107,227 137,793
Total assets 1,754,613 1,642,903
Notes & Accounts payable 297,038 271,582
Long-term liabilities 0 0
Total liabilities 723,704 592,396
Paid-in capital 370,408 369,732
Total shareholders' equity 1,030,909 1,050,507
Key indices
Net value per share (NTD) 27.8 28.4
Current ratio 220% 252%
A/R turnover days 41 41
Inventory turnover days 25 28
- Ralink Confidential -13
※Concise Consolidated Balance Sheets
New Ralink’s Product Mix
Ralink expects shipment volumes to grow more than 50% YoY in 2010.
Ralink is with 12% ~15% global market share for Wi-Fi chips.
Ralink is on track to be the #2 global xDSL CPE chip supplier in 2011 with
22~25% global market share.
3Q10 New Ralink’s Product Mix3Q10 Pre-merger Ralink’s Product Mix
Note : Based on combined unit shipments of Ralink and Trendchip in 3Q10
PC/NB,20%
CE, 9%
Retail, 42%
Broadband, 29%
- Ralink Confidential -14
We expect to continue gaining market share and be well positioned in the
broadband service provider segments with in-house xDSL and Wi-Fi
bundle solutions.
We have just launched a new product line in 2H10 for mobile consumer
electronics, and the first product targeting handset segments will be
launched in 2H11.
We have penetrated to 4 out of top 5 PC supply chains in 2010; PC/NB
segment will further improve in 2011.
Looking forward…
- Ralink Confidential -15