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Mobius Microsystems AeA Fall Venture Forum September 22, 2005. L. David Sikes, CEO & Chairman sikes@mobiusmicro.com Michael McCorquodale, Ph.D., CTO mccorquodale@mobiusmicro.com James Vincke, CFO vincke@mobiusmicro.com. Mobius Microsystems, Inc. 1020 Corporation Way, Suite 204
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Mobius MicrosystemsAeA Fall Venture ForumSeptember 22, 2005 L. David Sikes, CEO & Chairman sikes@mobiusmicro.com Michael McCorquodale, Ph.D., CTO mccorquodale@mobiusmicro.com James Vincke, CFO vincke@mobiusmicro.com Mobius Microsystems, Inc. 1020 Corporation Way, Suite 204 Palo Alto, CA 94303 www.mobiusmicro.com 650.726.8162 Phone 650.726.8168 Fax
Overview • Technology and IP • Mobius’ proven all-Si clock generation technology has the potential to reduce total platform power/heat by 20% and costs by 33% • 1 patent issuing, 3 full-utility apps. pending, 3 apps. under development • Business model • Fabless: Design & sell clock components; outsource manufacturing and test • Market and customers • $3.4B available market in 2005 • Validation of technology performance and value with 3 IP customers • Team • Raised $2M, built team, delivered to IP customers • Investment opportunity • Raising first institutional round of $8M to move to fabless model
ICSMaster Timing Clock Mobius Master Timing Clock Entrenched Technology vs. Mobius’ Technology Obviously valuable, but can Mobius achieve the required accuracy without the external frequency reference? YES But can Mobius defend sockets on just cost/size? Maybe, but Mobius also addresses power • Mobius… • eliminates the crystal, but retains the required frequency accuracy (±500ppm) • eliminates the 2 pins on the package and 2 capacitors previously required for the crystal interface • enables a new paradigm in power management with clock start-up latency and scaling in ns, not ms, thus providing the potential for 20-30% total platform power savings • can serve applications in harsh environments (high T, G, etc.)
Accomplishments to Date July 2004 Closed $678k contract with first Asian IP customer for embedded USB clock Nov. 2004 Delivered technology to 1st customer; Began USB qualification Apr.-Aug. 2005 Second angel round: $1M January 2004 Technology proven with Si prototypes (IP + discrete) Aug. 2005 2nd customereval. a success Time April 2004Initial angel round: $990k August 2004 Closed $106k contract with first American customer for discrete mP clock sample June 2005 First customer goes to full production; 3rd customer IP license executed March 2005Delivered technology to 2nd customer
450mm 400mm 1st IP Customer:USB Bridge Controller • Asian customer (Taiwan) • USB bridge controller for cables and thumb drives • Mobius reduced clock module cost from ~$0.25/unit to $0.02/unit • Mobius reduced clock module size by over 1,000x • 2M units/month in full-production
Product Opportunities • Nearly every single semiconductor component requires a clock • Computing: Laptop and PC motherboards, printers, scanners, print servers, etc. • Handheld/portable consumer electronics: PDAs, video cameras, digital cameras, mp3 players, calculators, etc. • Industrial, scientific, and medical: instruments, etc. • Automotive: engine control, etc.
$1.26B-33%=$832M 2005 Available and Served Markets • Silicon timing (TAM): $3.4B, 4% CAGR • Frequency references (passive XTAL or ceramic): $1.1B, 1% CAGR • Clocking components (active dedicated clock chips): $2.3B, 6% CAGR • Mobius’ served markets (SAM) • ~50% of $1.1B frequency reference mkt.: ~$550M • ~30% of $2.3B clocking component mkt.: ~$710M • Value in Served Markets • Power and heat: Reduced by 20% or more • Cost: Average per unit savings of 33% • Size: Reduced by 50% or more
Example Target Socket and Platform • ICS421-05Digital camera clock • Power: 10mA • Cost: ~$0.82 • Clocks:24.576MHz (1394)72MHz (CCD)12MHz (USB) • Pins: 8 • Start-up latency: 10ms • Input: 27MHz ref. clock • MobiusDigital camera clock • Power: 8mA • Cost: <$0.55 (55% GM) • Clocks:24.576MHz (1394)72MHz (CCD)12MHz (USB) • Pins: 6 • Start-up latency: 20ns • Input: None
Competitive Clock Chip Landscape • Competition • Clock synthesizer: ICS (IDT),Cypress, Freescale • Clock oscillator: Epson, Toyocom, NDK • Performance and Cost • Power and heat management is not addressed by competitors • Mobius eliminates resonator and associated costs • Acquisition activity in the space • Jan. ‘01: Cypress acquired IMI for $125M (2.5X 2001 revenue of $50M) • June ‘05: IDT acquired ICS for $1.7B (6.5X 2004 revenue of $260M)
Executive Team • David Sikes, Interim CEO • Semiconductor industry veteran with 40+ years experience • Michael S. McCorquodale, Ph.D., CTO • 8 years clock IC design: Hughes Space, U. of Michigan, Mobius • Technology inventor and CEO since founding to 6/2005 • James E. Vincke, CFO • Former CFO, Mechanical Dynamics, U. of Michigan technology spin-out • 23 years at Mechanical Dynamics: IPO, fund raising, acquisitions, international expansion, executive management
Revenue and Expense Model • Revenue: sell clock semiconductor components • ASP $0.65/unit • Fabless business model: outsource manufacturing • 1 design effort spread across product family (i.e. multiple products) • 55% gross margins • Direct sales force manages independent sales representatives and distributors • Product development through mid 2006
Mobius MicrosystemsAeA Fall Venture ForumSeptember 22, 2005 L. David Sikes, CEO & Chairman sikes@mobiusmicro.com Michael McCorquodale, Ph.D., CTO mccorquodale@mobiusmicro.com James Vincke, CFO vincke@mobiusmicro.com Mobius Microsystems, Inc. 1020 Corporation Way, Suite 204 Palo Alto, CA 94303 www.mobiusmicro.com 650.726.8162 Phone 650.726.8168 Fax