Upload
truongtu
View
215
Download
2
Embed Size (px)
Citation preview
Disclosure & Forward Looking Statements
This investor presentation contains forward-looking statements, including statements
regarding the Company's expectation regarding its strategic initiatives and business
outlook. Forward-looking statements are based on current expectations, estimates,
forecasts and projections about the Company, the Company’s future performance
and the industries in which the Company operates as well as on the Company
management's assumptions and beliefs.
These forward-looking statements are only predictions and are subject to risks and
uncertainties that may cause actual results to differ materially and adversely from the
Company’s current expectations. These include risks and uncertainties related to,
among other things, changes in the financial condition and cash position of the
Company, changes in the composition of the Company’s management and their
effect on the Company, the Company’s ability to realize anticipated results of
operational improvements and benefits of the divestiture transaction, successfully
operate and grow its services business, execute its business plan and manage
regulatory matters, as well as the risk factors identified in the Company’s latest Annual
Report on Form 20-F, and Current Reports on Form 6-K, as filed with the Securities and
Exchange Commission. We undertake no obligation to update these forward-looking
statements to reflect events or circumstances occurring after the date of this investor
presentation. The Company is in a period of significant transition and the conduct of its
business is exposed to additional risks as a result.2
Company’s Business Highlights
● Leading Technologies in Packet Optical Transport, Sync over packet and
SDN
● Innovative and customized solutions that help operators to reduce
opex/capex and quickly launch new services
● Long-term partnerships with global blue-chip carrier customers
● Best-in-class product quality attributable to proven R&D and in-house
manufacturing capabilities
● System integration capabilities with strong local teams in key regional
markets
● New growth market opportunities in Residential Gateway, IoT, and Smart
City
3
Overview of Key Products
4
100G Packet Optical TransportThe Service Provider (SP) Router & Carrier Ethernet
Switch (CES) market reached an all-time high of over
$13 B in 2016. … Consistent demand worldwide for 100
GE ports in core networks …
● Over 24,000 nodes have been deployed
● Flagship 100G TN765: large volume deployed since 2015
● New NG-PTN product line announced in 2015: higher
efficiency and advanced SDN-based features
● Rich SDN functionality including L3VPN and uFlex BoD
Synchronization over Packet NetworkA solution facilitating cost-efficient deployment of 4G
networks, and 5G networks moving forward
● E2E precise synchronization solution SyncRing
● Grand Master and Boundary Clock products
● Over 1800 units deployed in field since 2016
Revolutionary SDN PlatformGlobal Software Defined Networking Market is projected
to expand at a CAGR of 53.13% over the forecast period
to increase from US$3.270 billion in 2016 to US$42.157
billion in 2021
● At the forefront of SDN development: SOO SDN
controller launched in 2014 and POC completed in 2014
● Automated service provisioning and network operation
● Provisioning of pre-planned bandwidth on demand:
uFlex BoD – 2015
Virtual Broadband/Enterprise GatewayGlobal Residential Gateway market is forecasted to
grow at a CAGR of ~7.8% over the period 2014-2019. The
Virtual CPE market size is estimated to grow from USD
486.5 Million in 2016 to USD 2818.8 Million by 2021, at a
CAGR of 42.1% from 2016 to 2021.
● A new disruptive technology offering intelligence at
customer’s edge for service flexibility, high data rates
and improved quality of experience
● Good potential to become an integral part of Smart
City and IoT infrastructure
● Office-in-a-box, smart retail, smart shelf applications
Carrier Wi-FiThe global carrier Wi-Fi equipment market totaled $713
million in 2015, and is forecast to reach $1.5 billion in
2020. Global Wi-Fi hotspot market is poised to grow at a
CAGR of around 14.2% over the next decade to reach
approximately $5.1 billion by 2025
● Carrier-class Wireless Controllers and network
management. Outdoor and indoor Access Points.
● Value Added Services including location-based services,
O2O, big data etc.
● Large potential in India and other developing markets
Sources: Infonetics, SDNCentral, Plexxi,, TechNavio, Crehan Research Inc. and Lightspeed Venture Partners, Research and Markets, Dell'Oro Group
Product Portfolio
5
E2E solution for hyperconnected era
Broadband Access
CPE
Transport Network Network SyncBB Core Apps
AON/MPLS-TP MSANWLAN AC xPON
NG-PTN
NG CPE – VBGEnterprise MPLS-TP
CPE FTTx ONTCarrier-class
Wi-Fi AP
SyncRingBroadband Core:
Cloud control,
Signaling Gateway,
IMS
E2E service
orchestration and
automation based on
SDN
Virtual Broadband
Gateway: Intelligent
customer edge
Broadband access:
MSAN, xPON, Wi-Fi
SyncRing: Precise
synchronization over
packet network
4G/5G
NG-PTN: Metro
transport network with
centralized
intelligence
Service Providers
Cloud SPMSOISPOTT SPMNO
Users/Applications
Enterprise RuralUrbanWireless
4G/5G/Wi-FiSmart City
IOT
AP
I
API API
AP
I
SDN Controller
Automation
E2E
Orchestration
Dynamic
Services, BoD
Packet Optical Transport Product Portfolio
6
GE/1
0G
E E
co
syst
em
10
GE/1
00
GE E
co
syst
em
CoreAggregationAccessCPE
SDN/NFV
SOO Network
Netman OMC-O
NMS
TN703A64Gbps SW
GE/XGE
E1/STM-1
TN701B/703B10/6Gbps SW
GE SFP/RJ45/E1
Indoor/Outdoor
1U
TN765960Gbps SW
1/10/100GE
10G POS
9U 100G
TN703C6.4Gbps SW
FE/GE/E1
Indoor/Outdoor
TN703E44Gbps SW
FE/GE/XGE
E1/STM-1
TN701A4.4Gbps SW
GE SFP/FE RJ45
Indoor/Outdoor
1U
TN70588Gbps SW
2.5/10G POS
FE/GE/XGE
E1/STM-1
3U
TN735400Gbps SW
10GE/10G POS
FE/GE
E1/STM-1
TN725108Gbps SW
2.5/10G POS
FE/GE/XGE
E1/STM-1
TN725E176Gbps SW
FE/GE/XGE
E1/STM-1
7U
18U
7U
1U
NG-PTN
PTN
Network Intelligence
CPE/1U
TN705B40Gbps SW
GE/XGE
E1/STM-1
3U
TN725B80Gbps SW
GE/XGE
E1/STM-1
3U
SyncRing: Time, Phase and Frequency Synchronization
SyncRing: Synchronization Solution
● High-precision sync solution based on IEEE 1588v2 and
SyncE
● Accurate frequency, phase, and time synchronization
● Meets stringent requirements of LTE/LTE-A
● Integrated platform for sync and data traffic
● Great scalability
● Centralized NMS
SyncRing XBC510● Boundary Clock
● PTP + SyncE
Netman 6000 OMC-O● Centralized network
management
SyncRing XGM20● Grand Master
● PTP + SyncE
RAN
PTP BC
SyncE
RRH
Mobile Network
Core
XBC510
MRAU
eNBXBC510
PTP/SyncE/
Data
PTPBC
SyncE
M
SFP
SFPS
PTPBC
SyncE
XBC510
MPTP/SyncE/
Data
S
GM
GPS
S
eNBS
eNBS
PTP/SyncE
Metro Transport Network
TN765TN705E
TN765
NetRingSyncRing
RCC S S
XGM20
GM
XGM20
Carrier Wi-Fi Solution Portfolio
Location-Based Engine
HW-based AC
Cloud Marketing Platform
Customer Flow Analysis
Access Points Access Controller O2O/VAS Platform
Network Management
Cloud AC
Carrier AP
(Indoor)
Carrier AP
(Outdoor)
Transport AP
SOO Platform – Transport SDN
“SOO APP”: In-house/3rd party applications
● In house apps for customer/manager service
ordering, network design etc.
● Open & standard interface for 3rd party’s APPs
integration
“SOO Station”: SDN Controller
● Centralized SDN Controller
● Orchestration of abstracted underlying network
resources
● Automated service provisioning and network
operation
● Path computing and management
“SOO Device”: SDN-ized Network Devices
● Network elements controlled by SOO station
9
3rd Party
Apps
SDN Product Line: “SOO(Software Defined Open Packet Optical ) Network”
Outstanding Manufacturing &
Quality Assurance Capabilities
● Over 20 years manufacturing experience
● Focus on telecom equipment
● Comprehensive manufacturing capabilities:− From PCB Assembly To MEC Assembly To System Integration
− From NPI (New Products Introduction) To MP( Mass Production)
− SMT, THT (PTH), MEC Assembly, Micro BGA, CSP,0201
− BGA Rework and Re-Balling
● The highest quality standards, comprehensive
quality control − Comprehensive quality control process, certified by LRQA for ISO9001/14001, OHSAS 18001,QC080000
− Quality centric culture, implement “Kaizen” supervised by Japan customer and partner
− Field proven, hardware failure rate less than 0.05% per month
● Green, environment friendly, employee care
10
10
54
39
44
35
24
20
26
2930
3332
28
31
3737
45
31
27
21
34
40
48
57
25
36
42
49
46
38
29
45
38
3435
39
36384042
32
27
47
56
32
39
36
10
13
10 9
5
10
5
13
12
3
8
1413
8 8
46 7
11
8
11111210
1514
9 8
1210 9
1412
1919
1614
19
1515
121213 141211
18
0
5
10
15
20
25
30
35
40
45
50
55
60
Apr-05
May-05
Jun-05
Jul-05
Aug-05
Sep-05
Oct-05
Nov-05
Dec-05
Jan-06
Feb-06
Mar-06
Apr-06
May-06
Jun-06
Jul-06
Aug-06
Sep-06
Oct-06
Nov-06
Dec-06
Jan-07
Feb-07
Mar-07
Apr-07
May-07
Jun-07
Jul-07
Aug-07
Sep-07
Oct-07
Nov-07
Dec-07
Jan-08
Feb-08
Mar-08
Apr-08
May-08
Jun-08
Jul-08
Aug-08
Sep-08
Oct-08
Nov-08
Dec-08
Jan-09
Feb-09
0.00
0.05
0.10
0.15
0.20
CISCO故障件数 UTS故障件数 CISCO故障率 UTS故障率
1010
Multiple Customers Worldwide
including Tier-1 Carriers
Japan
● Softbank
● NEC
● SONET
India – ~ 35% broadband market share
● BNSL
● Bharti
● TATA
● Reliance
● MTNL
Latvia
● LMT
11
Taiwan
● Taiwan Chunghwa Telecom
● TW Mobile
Brazil
● NEC
USA
● In pursuit of US residential gateway
market
Positioning for Long Term Growth
Focused R&D investments
●Further invest in specific technical capabilities
●Attract targeted engineering talents by establishing a new R&D
Center in Chengdu, the technology capital of western China
Additional global opportunities in the 10G to 100G
transitions
●Early traction in Taiwan and Brazil
●U.S. rural broadband
New products for new market opportunities
●SkyFlux Intelligent Networking with source routing technology
●SyncRing (next generation for 5G) – Synchronization solutions
● IU+ Integrated Intelligent retail solutions
12
Area B, C,…
Area ASkyFlux
Intelligent Networking:Source Routing + SDN + 10/100GE
Enable
network programmability,
SDN-based automation, and high network scalability…
…while reducing complexity
Service
Orchestrator
Integrated Control and
Management Platform (SDN)
Network
Analytics
Programmable agile network
Seamless SDN integration
L2VPN/L3VPN services, 100GE support
Carrier-class feature set (<50ms protection, OAM, TE, QoS)
Reliable modular hardware platform
SkyFlux: SDN + Source Routing
Sync requirement:
±260ns
Sync requirement:
±1.5μs
Next gen SyncRing XGM● Improved accuracy
● Improved availability
● Auto-calibration
● Extended monitoring
BBU
T-BC
BBU
BBU
…
Fronthaul
T-GM
IP NetworkSyncE/PTP support
ePRTCT-GM
CO
GNSS Antenna
PRC
(Cs)
GNSS Antenna
T-BC
T-BCs
Core
T-BC
Macro BS
CRAN
4G 5G
4G/5G-ready
synchronization over packetSyncRing XGM
● Grand Master
SyncRing XBC510
● Boundary Clock/ Transparent Clock
Netman 6000
OMC-O
● Centralized network management
SyncRing – Synchronization Solution for 5G Era
New Integrated Smart Retail Solution
15
Big Data
AnalyticsOperator Center
3rd EPR
Retail Chain Store
Wi-Fi/4G
LTE/Ethernet
Open API
0
5000
10000
15000
20000
2017 2018 2019 2020 2021 2022
389 612 1204
4592
10971
18105
交易额(亿元)
Source: China Industrial information website
Total transactions, 100M RMB
China cashier-free retail
market analysis –
transactions per year
Quickly
growing
market
New Integrated Smart Retail
SolutionsSmart store
Smart
refrigeratorSmart shelf
IU+ Cloud
Internet
Smart City Market Opportunities
Smart City
● ICT – vital enabling element of
the Smart City concept
● Requires 100% broadband
penetration both fixed line
and wireless
● Assumes convergence of
Telecom and IT infrastructure:
− Internet access
− Broadband services
− Telecom services
− Data services
− Cloud services
− Security, VPN, Firewall
− Big data analytics
− IoT, M2M
16
Impact as related to UT business
● 100% broadband
Penetration
● 100% wireless
coverage (4/5G, Wi-
Fi)
● More traffic
● IoT, M2M
● IPv6
● Growing need for
wireless and wired
broadband
coverage
● Growing need for
NG-PTN metro
network
● Wide use of data
centers
● Need for efficient DC
Interconnect
● SDN Network
● SDN Experiences
can bring many
benefits
● Municipal
Management
system (MMS)
● High availability and
scalability NMS
* Source: IHS Carrier WiFi report 2016
** Source: Global Market Insights Inc., Report ID: GMI198, Wi-Fi Hotspot Market … 2016 – 2023
*** Source: Maravedis, Cisco VNI, 2016
Carrier Wi-Fi Market
Carrier Wi-Fi market
● Kept growing since 2007. The global carrier Wi-Fi equipment
market totaled $713 million in 2015, and is forecast to reach $1.5
billion in 2020.*
● Swift growth in number of Wi-Fi hotspots. Wi-Fi hotspot market
size was valued over USD 1.5 billion in 2015 and is likely to reach
around USD 3.5 billion by 2023, growing over 17%.*
● North America, particularly the U.S. Wi-Fi hotspot market size is
estimated to exhibit considerable growth over the forecast
period.** Asia Pacific Leads with 37 Percent Hotspots Worldwide
by 2020.***
● Growing perception of Carrier-grade Wi-Fi value. Carrier-grade
hotspot are going to overtake best effort by 2017-2018
Market Opportunity
● UTStarcom’s Carrier Wi-Fi solution offers
full solution for operators including
wireless access infrastructure and value-
added services platform for more
monetization opportunities. Target
market segments:
− Public hotspots
− Venues
− Education
− Transport
− Enterprise
● Priority markets: India, USA
Global Public Wi-Fi
Hotspots***
17
Non-GAAP Financial Overview
18
Revenue in $M Gross Margin Percentage
Operating Expenses in $M Net Income (Loss) in $M
25.722.3
20.0 16.4
27.5
22.5
31.5
26.0
0
5
10
15
20
25
30
35
2015
Q4
2016
Q1
2016
Q2
2016
Q3
2016
Q4
2017
Q1
2017
Q2
2017
Q3
31%27%
41%
24%
37%40%
28%
41%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
2015
Q4
2016
Q1
2016
Q2
2016
Q3
2016
Q4
2017
Q1
2017
Q2
2017
Q3
5.1
6.6 6.4
5.1
6.3
5.2
7.1 7.2
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
2015
Q4
2016
Q1
2016
Q2
2016
Q3
2016
Q4
2017
Q1
2017
Q2
2017
Q3
-21.2
0.3
5.5
-1.5 -1.7
6.2 2.5 2.5
-25.0
-20.0
-15.0
-10.0
-5.0
-
5.0
10.0
2015
Q4
2016
Q1
2016
Q2
2016
Q3
2016
Q4
2017
Q1
2017
Q2
2017
Q3
Investor Relations Contacts
For investor and media inquiries, please contact:
UTStarcom Holdings Corp.
Tel: +852-3951-9757
Fei Wang
Tel: +86 (571) 8192-8888
Email: [email protected]
Ralph Fong
Tel: +1 (415) 489-2195
Email: [email protected]
19