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Parade Technologies Best solution provider for touch, display and high-speed digital interface applications November 27, 2018
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Safe Harbor Notice This presentation includes forward-looking statements. All statements, other than statements of historical facts, that address activities, events or developments that Parade Technologies Ltd. expects or anticipates will or may occur in the future (including but not limited to projections, targets, estimates and business plans) are forward-looking statements. Parade’s actual results or developments may differ materially from those indicated by these forward-looking statements as a result of various factors and uncertainties, including but not limited to price fluctuations, actual demand, exchange rate fluctuations, market share, competition, environmental risks, change in legal, financial and regulatory frameworks, government policies, international economic and financial market conditions, political risks, cost estimates and other risks and factors beyond our control. Parade does not undertake any obligation to publicly update any forward-looking statement to reflect events or circumstances after the date on which any such statement is made or to reflect the occurrence of unanticipated events.
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About Parade Technologies, Ltd.
World’s leading provider of Touch, Display and High- Speed Digital Interface solutions Market leader in DP/eDP timing controller Leading expertise in DisplayPort technology and high-speed digital interface transmission Industry’s rich portfolio of high-speed interface product Rich portfolio of touchscreen and TDDI solutions with the industry’s most robust noise immunity and wet finger touch performance Strategic collaboration with leading CPU/GPU vendor and tier-1 global brand end customers IPO on September 13, Taipei Exchange: 4966 Acquire Cypress TrueTouch mobile business on August 1, 2015 (US$100mn) Worldwide 457 employees T
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Sufficient, Timely and Efficient
Global Presence Ireland (R&D) Korea (Customer Support) Beijing (Customer Support) Washington (R&D) Shanghai (R&D, Customer Support) Japan (Customer Support) Nanjing (R&D) Taipei (Operations, Sales, R&D, Customer Support) California (Headquarters) Shenzhen (Customer Support) Hong Kong (Sales, Logistics) Sufficient, Timely and Efficient
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DP/eDP Tcon Source Driver High-Speed I/F Parade’s Products
Redriver; Convertors; Mux/DeMux Jitter Cleaning/ Retimer USB Type-C redriving switch/with USB-PD Controller 16-Channel PCIe 3(8Gb/s) redriver for Server For PC/Notebook/Tablet/Server/ Dongle applications DP/eDP Tcon Support TFT LCD and AMOLED panels, up to 4K resolution TED (Tcon-Embedded Driver); Supports eDP 1.4b Panel Self-Refresh For Tablet/Notebook/ALL-in-One /Monitor applications Source Driver Point-to-Point source driver; SIPI / iSP source driver For Notebook/Tablet panels applications Touch Controller Single touch, two-finger touch and muti-touch for screen size from 1.5~10.1” TDDI(Touch + Driver) For Smart phone/ Tablet/ Wearables/ E-reader//Industrial 5
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Product Mix- FY2017 25%~30% 50%~55% 3%~5% 10%~15% HS I/F DP Source Dr.
Repeater Jitter Cleaning Converter DP eDP Tcons 3%~5% 10%~15% Source Dr. SIPI iSP Touch Single Touch Muti -Touch
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Major Customers US Japan Korea China Taiwan
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Industry Trend
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Higher resolution 2011 HD 2015 FHD QHD→4K 1366 X 768 1 Gb/s
Data Rate: 1366 X 768 1 Gb/s 1920 X 1080 3 Gb/s 2560 X 1600 8 Gb/s~20Gb/s
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Evolution of DP/eDP- Low power/Higher bandwidth
DP v1.2 2010 DP v1.2a 2012 DP v1.3 2014 DP v1.4 2016 2015 eDP v1.4 (a/b) 2014 2011 eDP v1.4 2010 eDP v1.3 (PSR) Addition of specifying Y-coordinates for partial frame update - Refinement to eDP 1.4 standard * Automotive leans to adopt DP similar standard for their advanced panel display 2008 eDP v1.2 Added Partial-Update Panel Self-Refresh(PSR) option Added Display Stream Compression option Added Regional Backlight Control option Added Multi-touch over AUX options eDP v1.1 Added AUX channel commands to control panel backlight and other display functions Added HBR2 5.4 Gb/s as option Fast link training by Sink made mandatory
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Data Transmission Move to Higher Speed
Jitter and signal degrade problems will become significant due to increasing data rate High-Speed interface products will become important to solve the Jitter and signal degrade problem ? 100G NEXT GEN DP 1.4 Thunderbolt 4 PCIe 4 HDMI 2.1 USB 3.2 USB 3.1 Gen 2 SATA 3.0 DP 1.2/ eDP 1.3 HDMI 2.0 40G TOMORROW USB 2.0 SATA 1.0 PCIe HDMI 1.0 10G TODAY 1G LEGACY
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Switch + USB Repeater+ DP Repeater + PD Controller
Roadmap for USB-Type C Switch Integration The ability to integrate high-speed technologies (Repeaters &Jitter Cleaning) positions Parade for lead in USB-Type C integration solutions Integration benefits including lower cost, simple layout, thin design, and lower power USB-Type C Solution(without integration) USB-Type C Integration Solution Connector USB Repeater USB 3.1 CPU Connector Switch + USB Repeater DP Repeater PD Controller USB 3.1 CPU Switch DP Repeater DP 1.2 DP 1.2 I2C I2C PD Controller PMIC I2C PMIC
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Roadmap for Touch Display Driver Integration (TDDI)
Combination of display technology leader with state-of-the-art touch-sensing business positions Parade for TDDI platforms Integration benefits including shorter time-to-market for customers, thin panels, and improved touch experiences through synchronization Hybrid In-Cell Solution Single-Chip TDDI Touch Controller Touch & Display Panel Touch & Display Panel Touch Rx Touch Data Touch Data Touch Rx Host Processor Host Processor TDDI Controller Synchronization DDI Pixels Image Data Pixels Image Data Touch Tx and VCOM Touch Tx and VCOM
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Growth Strategies Parade
Expansion product portfolio to match mobile panel evolution and high-speed transmission Build up broad Tcons, source drivers, touch and high-speed I/F solutions portfolio for different mobile device applications Address products unique features by leverage our core technology and innovation Provide best integrated solution for high- speed transmission, higher resolution display, lower cost, lower power and lower EMI/RFI Customized solution for target customers Through integrate more functionalities to offer customers the ability to deliver differentiated features and user experience to their end- customers Continue to cultivate strong relationship with strategic partners Best performance and production quality Timely deliver new technology and products DisplayPort Technology High Speed/ Bandwidth Low Power SERDES Technology Equalizer/ Jitter Cleaning Technology Parade Touch Sensing Technology Low EMI/RFI Low Cost
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Target Markets
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Parade in Timing Controller Market
Advance Industry’s most advance products Very low power eDP 1.2 v Tcon with Smart-Backlight TM feature eDP 1.4b Tcon support PSR2 for lower power, lower BOM cost eDP Tcon for AMOLED Panels supports eDP 1.4b for Extended Battery Life Leading market share position DP/eDP1.2v and eDP1.3v/1.4v Tcons have mass production for years and available supporting low power/higher resolution panels and multiple Tcon to Source Driver interfaces Demand on PSR Tcon in major OEM and general Notebook market increased Have majority market share in Notebook eDP Tcons Secured design-wins with major OEMs Developing highly integrated solutions for thin-profile panels TED(Tcon embedded driver) solution for thin-profile panel is in design-in/win process Leading Opportunity
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Parade in Source Driver Market
High Resolution/ Bandwidth Notebook/Tablet Panel – Move to higher resolution While eDP removed the data bottleneck between the GPU and Tcon, there was still a difficulty for the Tcon output specially when supporting higher-resolution, COG panels Ability to support high-resolution, COG panels With our core high-speed technology and advantages of SIPI interface, SIPI source driver provide advantages over the market existing source drivers SIPI source driver will get more benefit when Notebook/ Tablet panel move to higher resolution and high bandwidth demand SIPI source driver has mass production eDP v1.2 and eDP v1.3/v1.4 TCON paired with SIPI source driver has design-in/win with panel makers Ability Status
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Parade in High-Speed Interface Market
DP/USB/SATA/HDMI/PCIe has increasing their data rates USB Tpye-C goes to 10 Gbps; HDMI 2.0 goes to 6 Gbps Strong demand for high-speed interface products to solve high-speed transmission problems Market leader in USB Type-C switch and Repeaters High-Speed interface products have qualified by Tier-1 OEMs Market leader in active USB Type-C switch/with integrated PD Controller: best solution to address high-speed HDMI 2.0 repeater with Jitter cleaning: market best solution to solve design challenge of HDMI 2.0 New DP1.4a to HDMI 2.0b converters may remove jitter during the protocol conversion process and may support HDR at 4K New 16-Channel 8Gb/s PCIe redriver: for server with low power Continue introducing various high speed interface products USB 3.1 Gen 2 (10Gpbs) Retimer/Type-C Retiming switch Type-C Retiming/Redriving Switch for USB Gen 2 and DP 1.4 HBR3 / with Integrated USB PD 3.0 Controller Opportunity Leading New Product
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Parade in Touch Market Acquire Cypress’s TrueTouch mobile business
Acquisition Acquire Cypress’s TrueTouch mobile business Purchase price of $100 million, closing day at Aug. 1, 2015 90 employees from Cypress. Included R&D, Marketing and Sales Expands market position in display and touch market Own unmatched IP portfolio of hundreds of capacitive touch-sensing patents Market-leading touch solutions Enables roadmap for touch and display integration Developing total solutions for panel maker May simplifies the industry supply chain, significantly reducing resources required to support multitude of touch module platforms Integrated Touchscreen Controller and Display Driver Solution(TDDI) for Smartphone FHD / FHD+ LTPS in-cell displays is in design-in/win process Keep developing TDDI and other display/touch integrate solutions Status Developing
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Financial Results
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Revenue Revenue (US in millions)
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Annual Financial Performance
Net Revenue Gross Margin (US$ in millions) (% of Net Revenue) ’10 to ’17 CAGR 31% R&D Expense Net Income (US$ in millions) (US$ in millions)
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Key Balance Sheet Items
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Business Outlook Based on current business outlook, Parade is providing the following guidance for the fourth quarter of fiscal 2018: Revenue: US$ Million Gross margin: 40%-43% Operating expense: US$ Million
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Investment Highlights
Leading Position in Fast Growing DisplayPort and High-Speed Interface Markets Leading expertise in DisplayPort technology and high-speed digital interface transmission Technology leader for next-generation display-touch integration solutions Own unmatched IP portfolio of hundreds of capacitive touch-sensing patents New development for TDDI market and for the high speed applications in server market Strategic Collaborations with Leading CPU/GPU vendor and Tier-1 Global Brand End-Customers Focus on Driving Future Growth and Profitability L E T N
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Thank You
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