CONFIDENTIAL, © TriCN January 20022
Presentation Agenda
TriCN = Overview, History, Vision, Team
Dynamics within IP and IC Industries
TriCN’s Value, Benefits, Positioning
Funding the company through Sales
Future Funding
CONFIDENTIAL, © TriCN January 20023
Clients: Over 50 established and start-up companies.
TriCN Overview
In business since 1997.
Self-funded and Profitable since inception.
Originally Design Services and Consulting.
Financial
Revenue doubled every year.
Revenue for 2001 = $1.7M.
CONFIDENTIAL, © TriCN January 20024
TriCN Team Staff of 12: Diverse backgrounds.
Motorola, DEC, MIPS, SGI, Synopsys, FCI, Nortel, CDC.
Staff responsible for over 20 patents in Circuit Design.
TriCN Founders Combined 50 years experience in data bandwidth density and circuit design.
Ron Nikel (CTO)
Chief Circuit Interconnect Technologist: SGI’s Origin scalable server project.
Hansel Collins (CSO)
Invented DSCC for HIPPI-6400.
John Ellis (VP Signal Integrity)
Obtained patents for FCI relating to HIPPI-6400.
CONFIDENTIAL, © TriCN January 20025
History of TriCN
Design Services andConsulting
97 98 99 00 01 02 03
IP Licensing
1
3
5
10
30
50
04 05 06 07 08
Million $
Time
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TriCN Today
Developer of High-Bandwidth Interface Intellectual Property (IP).
Currently Licensing:
High Speed Application Specific I/O (ASI/O) IP portfolio.
High Speed PLL and Mixed Signal Circuits
TriDL (Digital Dynamic Deskewing Link) = High-speed
interface technology applied to standard and custom I/Os.
CONFIDENTIAL, © TriCN January 20027
Competitive Dynamics within IP and IC IndustriesHigh-Speed Semiconductor Segment
Bleeding Edge Technology: Faster, Smaller, Less Power
Long Development Cycles: 1-4 years
Weak Economic Climate: Downsizing = Buy (vs. Build)
Consolidation: Quick way to Advance Technology
Increased Fabless Foundry Model Based IC Production
ConsolidationLong Development
Weak Economy
Bleeding Edge
Strong Fabless Foundry
CONFIDENTIAL, © TriCN January 20028
Benefits of TriCN IP Technology
Power Digital implementation
Low power usage
$$Real estate
Improved bandwidth density reduces pin count Saves $$ and IC real estate
$$Dev Time
TriCN technology is easily deployable Saves $$ and development time
Bandwidth Increased speed and reliability
Greater bandwidth density
TriCNMarketSolutionStrategyCompetition
AvailableNow
TriCN IP pre-verified Pre-tested in foundry processes
CONFIDENTIAL, © TriCN January 20029
TriCN Value Proposition: High Margin, Large Market
Categories of IPRanked by Profit Margin
TSMC UMC IBM Other
TriCNMarketSolutionStrategyCompetition
Foundry Market Share
High Margin
Low Margin
Interface
Mixed Signal
PLL
Memory
Standard Cell
Within the IP Market Space, Interface and Mixed Signal IP have the highest margin, and TSMC/UMC have the largest market share.
= TriCN Product focus
CONFIDENTIAL, © TriCN January 200210
Market Positioning for TriCN’s Interface IP
Performance
I/O Interfaces
Many
Few
TriCN
Leda
NurLogic
Artisan
Low High
High Performance, High Price Points
Mysticom RamBus
VST
CONFIDENTIAL, © TriCN January 200211
TriCN & 2001 Self Funding Decision
Products are high margin, high value, difficult to obtain
technology solutions
Profitability easily maintained
Development and support of the products require a small highly
skilled engineering team
Requirement for expanded infrastructure minimal
Initiated Marketing and Sales effort
First 3 years – stealth marketing and sales effort
Formalized but minimal efforts in the past year created
hockey stick in sales and sales opportunities
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Income
0
1
2
3
4
5
6
1997 1998 1999 2000 2001 2002
Income
$/person
Design Services
IP Model
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TriCN SWOT Analysis
Strengths Highly Profitable Products
Scalable Business
Relatively High Entry
Barriers
Weaknesses Development limited by Rev
Growth limited by Rev
No buffer/war chest
Opportunities Sustainable Market
Few true competitors
Economic factors leading
towards client outsourcing
Threats Slowed Dev can allow
Competition to catch up
Big Company/Big $$ could
wipe out company
CONFIDENTIAL, © TriCN January 200214
TriCN’s Future: 3 Options Stay with present self-funded model
Build business/valuation as able
Exit via M&A
Limited funding - $1-3 Million
Accelerate building of business/valuation
Exit via M&A
Larger rounds of funding - $5 + Million Series A
Allows for larger vision - IC Dev, Build through Acquisition
Immediately increases value
More Options for Exit = IPO, further M&A
CONFIDENTIAL, © TriCN January 200215
TriCN Future Funding Decision Pros
Accelerates/Ensures Development and R&D
Allows for strategic Business Growth
Buffers against bumps in the road
Reduces Stress
Cons Reduces Upside
Must report to Board/Investors
Reduces Business Control
Reduces Control of Vision