Transcript Plc

CSS INVESTOR PRESENTATION
Plc
Oxford & Cambridge Club
21 May 2014
“To become the world leader in supplying optical chips
to the active optical networking market”
The Future is Optical
The world is moving to optical communications that is replacing electrical
communication because copper lines are limited in transmitting high speed
signals, over medium to long distances.
Optical communication will dominate the line communication market in the
near and far future.
The problem companies are facing is how to make the translation between
electrical and optical signals a low cost solution.
OTX breakthrough solution: “Optical Chips”
The translators (TOSA and ROSA) are made in a “silicon chip production” fashion, making it:
• Low cost
• Easy to assemble
• Widely spread
With OTX optical “chips” manufacturers can make low cost:
•
•
•
HDMI active optical cables
USB3.0 active optical cables
Any other fast communication line connection
OTX provides low-cost optical solutions for mass market
Optical Communications
“Higher Speed and longer distances”
Electrical signals
Electronic equipment
(PC, TV, etc.)
Standard
interface
(PCI-X, USB3,
HDMI etc.)
Standard
interface
(PCI-X, USB3,
HDMI etc.)
Electronic equipment
(PC, Server etc.)
High speed cable
Optical signals
Electronic equipment
(PC, TV, etc.)
Electrical to Optical (TOSA)
and Optical to Electrical
(ROSA) translation unit
Standard
interface
(PCI-X,
USB3, HDMI
etc.)
High speed cable
Standard
interface
(PCI-X,
USB3, HDMI
etc.)
Electronic equipment
(PC, Server etc.)
Electrical to Optical (TOSA)
and Optical to Electrical
(ROSA) translation unit
OTX makes “translation” units available to mass market
Background to the Company
OTX was founded in March 2007.
Its mission to create a new Production Platform for the assembly and
manufacture of integrated Optical Circuits used in implementing active
optical networks.
To use this Production Platform to make smaller, simpler and cheaper
“optical chips” consisting of lasers and photodetectors for active optical
applications.
The R&D phase lasted five years. The OTX Production Platform
technology was completed and the optical chips it made passed all the
tests for telecoms application.
In 2014 we started integration process by engaging with Chinese optical
cable manufacturers to refine OTX translators to facilitate their
production process.
Accomplishments to Date
1. OTX has validated the proper functioning optical chips produced by its proprietary
platform. Chips have been subjected to conventional heat, stress, vibration tests and
passed them all with no exceptions (2011-12). Even qualifying for use in telecom
infrastructure.
2. OTX has completed its R&D Production Platform line in Israel (2012-13). Consists of
two automated machines that make the laser-emitter chips and photodetector chips
respectively, operated by one PC.
–
–
–
–
Theoretical upper limit for one machine is 3,600 chips per hour
1 machine operating 10 hours/day for 30 days can manufacture 1 million chips per month
Cost of one machine < US$ 5,000 dollars
No limit on scalability, just add add 1 PC every 4 machines
3. Throughout OTX has maintained IP policy of patenting the uTOSA/uROSA specific
geometries and layout (one patent awarded on chip design in 2012); combined with a
strict trade secrecy policy over the OTX Production Platform designs, its methods and
construction.
4. In 2013 OTX market approach focused on singlemode Active Optical Cables and we
have integrated our two chips in a stand alone “translator” component for ease of
assembly by HDMI and USB cable manufacturers. The so called OTX micro-OTR (or uOTR).
2 Chips into 1 Component
Two Active Optical Cable chips made with OTX Production Platform:
• microTOSA a singlemode 1310nm standard (Fabry Perot) laser-emitter
• microROSA a singlemode 1310nm photo-detector
picture of a Laser/Detector (magnified)
•
OTX Optical “Translator” Component
Packaged component for use in new Active Optical HDMI Cables
micro OTR + (microTOSA + microROSA + electronics )
Offered as a single integrated component to manufacturers of new active optical cables.
Width: 0.5mm
Width: 2mm
Laser/Detector
Single Mode Fiber
(125 micron)
Current Solution vs. uOTR
Current VCSEL based Multi-mode Active Optical USB 3.0 Cable
IC (Electronics)
Photodetector
Multimode Fiber
Laser Diode
OTX uOTR
+ Singlemode
Fiber Optic Cable
uOTR Advantages
OTX uOTR
Current Solution
Fiber Type
Singlemode
Multimode
Laser Type
Low-cost Fabry-Perot
VCSEL
Wavelength
1310nm
850nm
Fiber Cost
2xSinglemode
Distance
0-10 Km
50m-100m (decreases as
bandwidth increase)
Electronics
Simple
Requires EDC
Cable Assembly
Simple
Complex
Size
0.5mm x 3mm
Much larger
OTX uOTR deliver superior performance compared with
multimode active cable for a lower price.
uOTR Cost Analysis
Current Industry Cost Estimates
Based on assembly of discrete optical components (not integrated optical circuits)
using currently available technology the Company’s estimated Bill Of Materials (BOM)
costs plus labour per uOTR (single-mode 5G 1310nm optical TOSA/ROSA chip pair) is
approximately $2.50
OTX Cost Breakdown:
uOTR BOM
Units Manufactured
1M
10M
100M
Silicon
Laser Diode
TOTAL
Micro-ROSA-SM-1310-5bps
Silicon
Photo Detector
TOTAL
0.11
0.38
0.49
0.09
0.34
0.43
0.08
0.27
0.35
0.11
0.38
0.49
0.09
0.34
0.43
0.08
0.27
0.35
uOTR Package Cost ($)
0.98
0.86
0.70
Micro-TOSA-SM-1310-5bps
Investment and Growth Plan
OTX Investment and Growth:
US$ (M)
Investment
Sales
Gross Profit
2014
2015
2016
2017
1
10
25
-
.5
21
228
467
10
114
257
OTX Product Development:
2012
2013
1G
OTX
Machine
2014
5G
uTOSA
uROSA
HDMI
uOTR
2015
2016
?
10G
USB
uOTR
2017
PCIx
uOTR
2014-2015 Business Plan
Offer OTX uOTR package that integrates micro-TOSA/micro-ROSA chips
with attendant electronics in a single “translator” component to cable
manufacturers.
1.
2.
3.
4.
5.
6.
7.
8.
Engage with customers in China for defining detailed specifications
and form fit factors for OTX uOTR
Recruit COO to prepare the Production Line in Israel
Expand offer to other Chinese customers
Commission Technology And Market Assessment Study
Recruit CEO to lead expansion
Prepare for M&A or for financing to precede M&A presentations
Expand operations set-up Technical Distribution network (China,
South Korea, Taiwan)
Introduce the OTX company in Israel to strategic optical hardware
vendors whose products can benefit from OTX chips and
components
IP Portfolio
OTX has significant intellectual property, all of which is documented. The IP is
summarised below:
1. OTX PRODUCTION PLATFORM IP
Trade secrets cover the OTX Platform (these are not described in any detail anywhere except
in papers at the Company).
-Design of the automated machine
-Unit testing apparatus and process
-Laser bar spec and preparation process
-Fiber alignment mechanism and process
-Chip assembly process documentation.
-Substrate preparation process
-Input-tray design (for both lasers and detectors)
2. OTX CHIP PATENTS
uTOSA/uROSA architecture design patent awarded
Number: IL2011/000522
Description: Layout and design of chip
Date Published: January 2012 PCT
Jurisdiction: Europe , USA , China , Brasil , South
Africa , Israel
(NEW in 2014) uROSA chip design
Date: expected filing date spring/summer 2014
Jurisdictions: Israel, International PCT
3. OTHER IP
Proprietary Software
1) Factory Management software
2) Machine control software
3) Automated testing software
4) QA management software
Other Proprietary Hardware
1) uOTR Casing
2) AOC Cable assembly tool
USB 3.0 Future
Until recently Ethernet cables dominated the Local Area Networks (LANs) and USB
cables is dominating the peripherals interconnect for many years.
• Started with USB 1.0-10Mbps , USB 2.0-480Mbps , USB 3.0-5000Mbps , USB 3.110,000Mbps.
• USB deliver both Power and Communication on the same cable. USB is supported
by all Electronics products in the market.
• USB 1.0 and 2.0 where limited to few meters. But USB 3.0 standard is no longer
distance limited which makes it superior over Ethernet. Therefore position the USB
as the dominating interface in the years to come.
Conclusion
• USB 3.0 and it successors will dominate the interconnect.
• 5Gbps and higher bandwidth require optical fibers for distances more
then few meters. (Optical Fiber are cheaper then Copper for more then
few meters applications)
• Current Optical cables are using multimode fibers which are more easy
to assemble but suffer from poor performance when
bandwidth/distance increase.
Optical Connectivity Market
“Structured Cabling Market which includes copper and fiber in telecomm and IT sectors
is to exceed $8 billion by 2015 “
2013 Structured Cabling Technology &Market Assessment by Bishop&Associates
The global structured cabling market has been characterized by its stable growth over the
past several years, with the market growing at a compound annual growth rate of 6.8% to
reach $5.6 billion in 2011.
The structured cabling market to exceed $8 billion by 2015.
The US still dominates this market, China and the Asia Pacific region show the most growth
potential over the next five years.
The ongoing battle between copper and fiber systems continues to persist.
These are the companies that are the current optical cable manufacturers and potential customers
• Optical Cable manufacturers
HITACHI, CORNING, AVAGO, FINISTAR, VIA
• Optical Cable vendors
NXP, SILICON IMAGE, STMICRO, TRANSWITCH
These are the companies that are current optical vendors and potential active optical vendors:
• Electronics chips manufacturing
INTEL, MARVELL, BROADCOM, MELLANOX
• Telecom equipment vendors
CISCO, JUNIPER, ALCATEL, ERICSSON
• Electronics component assemblers
FOXCONN, FLEXTRONICS
• Big IT & electronics consumer brands APPLE, SAMSUNG, LG, MS-NOKIA
Company Financials (Audited)
Management & Board
Chairman of the Board & CEO - Eli Ben Oliel
Board Member - Dr Avi Strum
Board Member - Guido Branca
COO (PHd in Optics – will join soon)
Head of Sales WW – Michael “Miki” Halperin
CFO – TBA