Transcript Mobius - University of Michigan

Mobius Microsystems Inc.
3430 E. Jefferson Ave. #140
Detroit, MI 48207
313.205.3489
www.mobius-microsystems.com
[email protected]
Business Plan Presentation
Pryor-Hale Business Plan Competition
Ann Arbor, MI
February 7, 2003
© February 2003 Confidential Information
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Overview
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Vision
Management Team
Technology
Industry and Market
Competition
Marketing and Sales Strategy
Financials
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Vision
Mobius Microsystems Technology
Enables electronic system developers to produce less
expensive, smaller, more functional, and more reliable
products that consume less power.
Our Customers
Will reap orders of magnitude improvements in the
products they build and lead their industries in end-product
performance, functionality, and value.
VISION
MANAGEMENT
TECHNOLOGY
MARKET
COMPETITION
STRATEGY
FINANCIALS
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Management Team
Michael S. McCorquodale, CEO and CTO
• Electrical Engineering Doctoral Fellow, U of M
• Notable patents, publications, engineering design awards, and experience
• Vision of how microsystems technology and Mobius will change the world
Jeffrey G. Wilkins, COO
• MBA 2003, U of M
• Business Development, Velocys, Inc. (Battelle Memorial Institute spin-off)
• The commitment and experience to turn Mobius’ vision into reality
James E. Vincke, CFO
• B.S.E., M.S.E., MBA, U of M
• Mechanical Dynamics, Inc. CFO during $30M IPO
• Veteran experience and financial acumen
VISION
MANAGEMENT
TECHNOLOGY
MARKET
COMPETITION
STRATEGY
FINANCIALS
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Electronic Systems Today
To build cell phones, PDA’s, and other electronic systems today, a
number of core technologies must be assembled on a printed
circuit board: electronic, digital, analog, mechanical, etc.
Digital Microprocessor
Mixed-Signal
Circuits
Crystal Oscillator
Memory
Mechanical Sensor
Analog
Circuits
Printed Circuit Board
VISION
MANAGEMENT
TECHNOLOGY
MARKET
COMPETITION
STRATEGY
FINANCIALS
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The Problem
These systems are
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Large (package sizes)
Expensive (package costs)
Power-hungry (signal across a board requires 10x power)
Complicated (interface issues)
Less reliable (interconnect issues)
Limited in functionality (size and power constraints)
VISION
MANAGEMENT
TECHNOLOGY
MARKET
COMPETITION
STRATEGY
FINANCIALS
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The Solution: Microsystems
Microsystems are intelligent miniaturized systems comprising sensing,
processing, and actuating functions integrated onto a single chip. They are
smaller, cheaper, lower power, simpler, more reliable, and more functional.
Digital Microprocessor
Mixed-Signal
Circuits
Crystal Oscillator
Memory
Mechanical Sensor
Analog
Circuits
PCB
Printed Circuit Board
VISION
MANAGEMENT
TECHNOLOGY
MARKET
COMPETITION
STRATEGY
FINANCIALS
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Semiconductor Clock Generation
So what makes it run at 1GHz?
fclk
AMD Athlon Processor
(1 GHz)
Clock frequency signal from off-chip crystal
Every microprocessor, microcontroller,
and PLD requires a clock signal to operate
VISION
MANAGEMENT
TECHNOLOGY
MARKET
COMPETITION
STRATEGY
FINANCIALS
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State of the Art vs. Mobius’ DMC
Mobius’ DMC
• MEMS-based
• On-chip
• Tunable frequency
• Small
• Low-power
Existing Clock Solutions
• Crystal-based
• Off-chip component
• Fixed frequency
• Large
• Power-hungry
crystal
electronics
vs.
Mobius’
DMC
VISION
MANAGEMENT
TECHNOLOGY
MARKET
COMPETITION
STRATEGY
FINANCIALS
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The Mobius DMC in Action…
Using Current Technology
Using Mobius’ Technology
~$1.00
~$0.45
Clock Space Requirements
323mm2 on circuit board
0.09mm2 on semiconductor
Clock Power Requirements
32mW
4mW
Fixed (w/o add. electronics)
62.5MHz to 1GHz
Example: iPAQ PDA
Clock Hardware Costs
Tuning Range
COMPAQ iPAQ Pocket PC
VISION
MANAGEMENT
What Mobius can do for Compaq
• Reduce total cost
• Reduce component inventory
• Increase battery life
• Increase functionality
• Decrease time to market
• Increase share of total system revenue
TECHNOLOGY
MARKET
COMPETITION
STRATEGY
FINANCIALS
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Semiconductor Intellectual Property
Semiconductor
Design
• Blocks (blueprints) that are
placed into larger designs
• Manufacturing handled by
customer
Mobius’
DMC IP
• Low COGS
Packaged
Semiconductor
VISION
MANAGEMENT
TECHNOLOGY
• Successful Technology Model:
ARM, MIPS, Rambus, Parthus
MARKET
COMPETITION
STRATEGY
FINANCIALS
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Industry and Market Overview
• Semiconductor Industry: $151B (2002)
– CAGR: 8%
– Cyclical, Mature
• System-On-Chip Market (SoC): $32B
– CAGR: ~ 25% to 30%
– Wide array of end products
• Cell phones, DVD, disk drives, WLAN
• Texas Instruments, Motorola, Sony
VISION
MANAGEMENT
TECHNOLOGY
MARKET
COMPETITION
STRATEGY
FINANCIALS
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System-on-Chip Explained
• System-on-chip provides a higher level of on-chip
integration (also known as system-level integration)
• SoC’s combine a processing core, memory, and logic
on a single chip
Communications
Analog Front
End
Microprocessor Core
Microprocessor system-on-chip
with memory and communications
Clock
Clock
Sensor
SoC
Sensor
Other
Subsystems
Other
Subsystems
Memory
PCB
Printed Circuit Board (PCB)
VISION
MANAGEMENT
TECHNOLOGY
MARKET
COMPETITION
STRATEGY
Analog Front
End
FINANCIALS
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First Addressable Market
• The System-On-Chip (SoC) Market Segment
– SoC: $32 Billion or (@ $20/unit) 1.6 Billion units/yr
– One DMC unit per SoC manufactured
– Currently $1.6B spent on clock generation in SoC
segment
– Mobius’ DMC average selling price of $0.45/unit
• First Addressable Market: $720 Million
VISION
MANAGEMENT
TECHNOLOGY
MARKET
COMPETITION
STRATEGY
FINANCIALS
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Why SoC?
SoC’s Market Dynamics and Needs
• Fast design cycles to meet product windows
• High acceptance of emerging technologies
• Comfort with IP and IP companies
• Medium to high volume
• Wide array of end products and markets
• Fabrication facilities (TSMC, IBM)
VISION
MANAGEMENT
TECHNOLOGY
MARKET
COMPETITION
STRATEGY
FINANCIALS
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Competition
Competitive Landscape: 3 kinds of competitors
• Discrete Crystal Clock Generation
Epson, NDK, Toyocom
• Integrated Clock Manufacturers
Motorola, Analog Devices, and Texas Instruments
• Hybrid Clock Manufacturers
Motorola, Analog Devices, and Texas Instruments
Currently no inexpensive, small, low-power, high-performance,
tunable, reliable, and accurate on-chip solution exists for clock
generation in the semiconductor market.
VISION
MANAGEMENT
TECHNOLOGY
MARKET
COMPETITION
STRATEGY
FINANCIALS
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Mobius’ “Secret Sauce”
• Design cycle lead and microsystems development
trade secrets
• Patent-protected intellectual property portfolio
• Industrial membership and “first-look” rights to IP
from The University of Michigan Center for Wireless
Integrated Microsystems (WIMS)
• “Product Hopping” development strategy
VISION
MANAGEMENT
TECHNOLOGY
MARKET
COMPETITION
STRATEGY
FINANCIALS
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Marketing and Sales Strategy
Goal: De-facto standard in clock generation for SoC
1. Establish IP partnerships with leading chip makers
• Existing IP partner programs (e.g. Altera, TSMC)
2. Educate the market on Mobius’ DMC product;
Create $Free Technology “Buzz”
• Leverage existing relationships, conferences, tradeshows
3. Design wins pull sales through IP partnerships
• Direct sales, technical sales reps
• Get “designed in”
VISION
MANAGEMENT
TECHNOLOGY
MARKET
COMPETITION
STRATEGY
FINANCIALS
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Business System
Revenue Model
• Design License: Tiered $100,000 to $300,000
• Royalty: Tiered $0.15 to $0.50 per unit
• Annual Support & Maintenance: 15% of Initial
License
• Services: Design Services for Customers
VISION
MANAGEMENT
TECHNOLOGY
MARKET
COMPETITION
STRATEGY
FINANCIALS
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Financials
Revenue, Net Income, and Cash Flow from Operations
Financial Highlights
3,000
25,000
Net Income
Dollars (000's)
2,500
20,000
Cash Flow from Operations
Revenue
2,000
15,000
1,500
10,000
1,000
5,000
500
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(500)
2003
2004
2005
2006
2007
(5,000)
Years
VISION
MANAGEMENT
TECHNOLOGY
MARKET
COMPETITION
STRATEGY
FINANCIALS
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Investment Opportunities
Self-Fund Operations Until First Sale Is Made
$114K Founders Investment (Q2 2003)
After First Sale (Q3 2003):
Seeking $500K 1st Round Investment
Uses:
Develop Professional Marketing & Sales Team
Hire Additional Engineering Expertise
Port to Additional Manufacturing Processes
Enhance DMC
Milestone: 5 Reference Customer Relationships
VISION
MANAGEMENT
TECHNOLOGY
MARKET
COMPETITION
STRATEGY
FINANCIALS
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Investment Opportunities
Potential $500K 2nd Round Investment
(Q1 2004)
Uses:
Open Sales Office in Munich
Continue to Develop Engineering Team
Commercialize Follow-on Technologies
Milestone: International Reference Customers
Working AFE Prototype
VISION
MANAGEMENT
TECHNOLOGY
MARKET
COMPETITION
STRATEGY
FINANCIALS
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Closing
• $720 Million First Addressable Market
• The least-expensive, smallest, lowest power, high-performance
clock generator available
• Cutting-edge microsystems know-how
• The flexibility of intellectual property
• Strong IP position and competitive advantage
• Committed management team
QUESTIONS?