content company overview financial overview appendix
TRANSCRIPT
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Content
Company OverviewCompany Overview
Sales & MarketingSales & MarketingProducts & TechnologyProducts & Technology
AppendixAppendixManufacturing Process GuidelineManufacturing Process Guideline
Financial OverviewFinancial Overview
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Company Profile
• TXC Corporation, founded in 1983, is a leading professional frequency
control product manufacturer. We have devoted to the research, design,
manufacture, and sale of Dual-Inline-Package (DIP) and Surface Mount
Device (SMD) quartz crystal products. TXC now specializes in four
categories of products such as high quality Quartz Crystal, Crystal
Oscillator (CXO), Surface Acoustic Wave (SAW) Filter, and Timing Module
(TM).
• Our goal is to add value to our customers by providing a complete solution
of frequency devices and modules, design-in service to fully satisfy
various needs of the esteemed customers. We believe based upon the
competence of cost effectiveness, quality, lead-time, and customer service
TXC will go beyond customers' expectation.
• www.txccorp.com
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1983
Established TCXO Production Lines
Established SMD Production Lines
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 20061984 …
Implemented Oracle ERP
Founded- Capital US$ 95,000 IPO’ed Increased Capital to US$ 34.8M
Listed in Main Board of Taiwan Security Exchange (Code- 3042)
Ranked 6th Largest Crystal/Oscillator Manufacturer in the World
Ranked 8th Largest Crystal/Oscillator Manufacturer in the World
Completed new Ningbo Factory in China
Established SAW Production Lines
Total capacity can up to 112 M /m
2007
Total capacity can up to 174 M /m
2008
Milestones
2009
Ranked 5th
Production
Business
TS16949- Taiwan and China Factories
ISO 9001:2000 6 Sigma
IECQ QC080000
ISO 14001:1996
ISO 14001:2004
Green Product Policy & QS 9000
2010
Quality
Paid-in Capital: US$96 M
NQA Rewarded
5
Headquarter - Taiwan Taipei
Factories(2)- Taiwan Ping-ChengChina NingboChina Chong-Qing (Future)
Sales FAEs(10) - Taiwan TaipeiField Application Engineer China Shanghai, Suzhou, Shenzhen, Wuhan
USA LAJapan Yokohama, OsakaEuropeSingapore
Distributors(12)- Europe-UK, Germany………
Representative (8)- Korea, India, Mexico…….
Worldwide Locations
6
For Communication
For Information
For Entertainment
For Telematics
DPFGame Console
Desktop PCPDA
NB
PDA +GPS
NB
PDA Mobile Phone+ +
+
Mobile Phone +DSC +MP3 +WiFi
• XTAL• OSC• T/F
• XTAL• OSC• Advanced OSC• VCXO• T/F
• XTAL• OSC• TCXO• T/F
• XTAL• OSC• TCXO• T/F
• XTAL• OSC• T/F
MIMOUWBADSL/
Cable Modem
WIMAX
DSC
WLAN
PMP
TPMSHUD Keyless Entry
Infotainment System
Netbook
Smartphone
HDWiFi Keyboard/Mouse
MP3
DVDProjector
LCD TV
High PerformanceSwitch & Routers
High PerformanceComputing & Storage
HSDPA
Application
77
Automotives
Communications & Telecom
Wireless & Wirelines
Security
Energy & Lighting
Industrial
Medical
Consumer Electronics
Audio, Video & Imaging
Computing & Peripherals
Crystal & OscillatorConnecting Technology Together
MiniaturizationStable
(Ex. Smart Phone)(Ex. WLAN)
Ultra stableHigh FrequencyAOM/TCXO (Ex. Base Station)(Ex. GPS)
MiniaturizationUltra stable
(Ex. Medical Device)
Ultra stableZero defect(Ex. Automotive products)
Miniaturization Price Competitive(Ex. LED TV)
StablePrice Competitive(Ex. Digital Camera)
Miniaturization Price Competitive
(Ex. NB, Tablet PC)
Miniaturization Ultra stable(Ex. Security Door
System)
StableTCXO (Ex. Smart Grid)
StableHigh Frequency (Ex. Industrial Monitoring System)
Application v.s. Frequency Control Unit applied
1Specific requirement for different industry
8
1.6x1.2(8Q)
1.6x1.22.5x2.03.2x2.5(7V)6x3.57x58x4.5(6X) 5x3.2(7A)
Dip Type
Glass Type
Seam Type
Crystal by Package Size
2.0x1.6(8Y)2.5x2.0(8Z)3.2x2.5(7M)6x3.5(6V)7x5(6P)8x4.5 5x3.2(7B)
5x3.2(4 pads, 7Y)
2.0x1.6
9
7x5(6U)14x9(7H) 5x3.2
VCXO
CXO
2.0x1.6(8N)2.5x2.0(8W)3.2x2.5(7X)6x3.57x5(7W)14x9(7J) 5x3.2(7C) 1.6x1.2
Oscillator by Package Size
2.0x1.6(7Z)2.5x2.0(7L)3.2x2.5(7Q)6x3.57x514x9 5x3.2
TCXO
1.6x1.2
(Sample Ready)
11
Automotive Products
Wireless Communication
Mobile
Bluetooth
WLAN
PC / Consumer
Multimedia
Desktop/Laptop
Peripherals
Digital Imaging
Others
Compact Low Power
High Frequency
Low Jitter
High Reliability
Quartz Sensor
Pressure
Gyroscopes
Gases
Non-Safety
TPMS
Matured products:
Technology Integration
Safety
PND
GPS
CrystalCXOTuning Fork
High
Stability
Products and Technology Strategies
TCXO
Advanced Oscillators and Modules (AOM):
Networking I
WAN (FC/GbE/FCoE)
TelecomDatacom
Networking II
MAN
Long Haul
High Frequency
High Stability
HF OscillatorHF VCOTCXO
Stratum 3 TCXOFX/CDROCXO
ZERO Defect AutomotiveProducts
1 2
3
3
4
5
5
1212
KHz Xtal35.8%
MHz Xtal52.8%
XO4.7%
TCXO6.2%
VCXO0.4% OCXO
0.0%
2010 Vol. by Products
KHz Xtal18%
MHz Xtal35%XO
14%
TCXO21.70%
VCXO5.76%
OCXO5%
2010 Rev. by Products
2010 WorldWide Volume v.s. Revenue Comparison by Products
88.6%53%
0.02%
1313
Worldwide Ranking & Market ShareWorldwide Revenue of the Top Crystal and Oscillator Suppliers (Unit: Millions of USD)
* Data Courtesy of CS & A
CS&A forecasts 7.5% YoY Growth in 2010, and 6.1% in 2011
14
Competitive Advantage of TXCTXC Competitors
of JapanCompetitors of
TaiwanCompetitors of
ChinaOverhead Cost
Quotation advantage due to JPY appreciation
High Low High High
Market Focus
Flexibility
Relationship with ODM
High Low High Low
Diversification
Ability Of Production Line
Transfer
Economic Scale
Manufacturing Technology
Quality Control
LowMediumHighMedium
Asia(Growing)
High
HighPC, Automotive,
Networking, Mobile, Consumer, Global
High
High(SMD)High
2016,1612
High
USA, Europe(Declining)
Low
HighAutomotive,
Networking, Mobile, Consumer, Global
High
Highest(SMD & TCXO)
High1612,1210
Highest
Asia(Growing)
High
LowSpecific to one or two
field
Medium
Low
Medium2520,2016
Medium
China(Growing)
High
LowPC, Consumer
Medium
High(DIP)Low
3225,2520
Low
15
0
50
100
150
200
250
300
Operating Revenue 61 80 95 116 162 194 228 240
2002 2003 2004 2005 2006 2007 2008 2009
Operating Revenue
(Unit: Millions of USD) / 1USD = 31 NTD
31%19%
22%
40%
20%18%
5%
16
NETWORKING23.8%
GLOBAL/EMS15.9%MOBILE
20.2%
PC17.0%
CONSUMER9.4%
ACAP0.9%
Others12.7%
1H- Strong demand returned from 20092H- Relatively flat trend
TXC Sales Revenue by Marketing Fields
ACAP0.4%
NETWORKING25.3%
GLOBAL/EMS17.5%
MOBILE20.5%
PC14.5%
CONSUMER10.7%
Others11.1%
2121
Unit: NT$ in MillionItem 10.Q1 10.Q2 10.Q3
Current Assets $ 5,854 $ 6,459 $ 5,969
Cash & Cash equivalents $ 1,839 $ 2,491 $ 1,691
Notes & Account receivables $ 2,447 $ 2,697 $ 2,808
Inventories $ 869 $ 1,012 $ 1,313
Fixed assets $ 4,103 $ 4,354 $ 4,681
Total assets $ 10,205 $ 11,118 $ 10,987
Current liabilities $ 2,447 $ 3,717 $ 3,354
Notes & Account payables $ 1,216 $ 1,560 $ 1,633
Long-term liabilities $ 1,456 $ 1,329 $ 1,212
Total liabilities $ 3,947 $ 5,058 $ 4,579
Shareholders' equity $ 6,258 $ 6,059 $ 6,407
Debt ratio 38.68% 45.49% 41.68%
Current Ratio 239.22% 173.77% 177.97%
Quick Ratio 189.02% 139.10% 134.14%
Net Value Per Share $ 21.51 $ 20.83 $ 21.56
Balance Sheets & Key Index1 USD = 31 NTD
2222
CapEx Line Amount$ Date (F) Capacity/M Revenue/M (F)
Ping-Cheng factoryexpansion plant (2) 640
SMD Seam X’tal (TWN)2016 / 1612 6 300 1H.3Q 6.0M 60
SMD TC / VC XO (TWN)3225 / 2520 / 2016 2 200 2Q.3Q 1.5M 26
SMD TF (TWN)2012 2 100 3Q 2.0M 12
NGB factoryexpansion plant 110
SMD Glass X’tal (NGB)5032 / 3225 15 300 2Q 15.0M 45
SMD Seam X’tal (NGB)3225 / 2520 9 250 3Q.4Q 9.0M 35
Total 34 1,900 33.5M 178
2010 Overall Capacity +30%; Advanced Capacity +50%Unit: PCS / NT$ Million
Capital Expenditures
1 USD = 31 NTD
2323
TXC
Strategy in
09
AOM products shipment will ramp up along with raising Cloud Computing and Smart Grid applications
Revenue will grow gradually and stably.
China Market is still the major sales driving force
New Business will bring new growth momentumNew Business will bring new growth momentum
The company will continue penetrating worldwide market with Smart Phone and GPS Applications
Revenue will ramp up Quarter-over-QuarterGross margin will be improved due to better product mix
Business Highlights
25
Blank Process
Wire Sawing
Quartz Bar
A1 2 34 5 67 8 90 EN
BCD
22.1372
Wafer Frequency Lapping
12
3
45
67
8
26
SMD Process and structure
IC Die Bonding
Wire Bonding
Blank Cleaning
Base Plating
Frequency Adj.
Final Testing
Marking
Taping
Seam Sealing
Mechanical Testing
Blank Auto-Mounting
Cry
stal
Osc
illat
or
OscillatorCrystal
Metal Lid
Plated Blank
Ceramic Package
( Bottom )
Ceramic Package
( top )
Oscillation IC