IDEX November Q3 2014 pub...IDEX!STRATEGY!TO!BECOME!A!LEADING!FINGERPRINT!SENSOR!...
Transcript of IDEX November Q3 2014 pub...IDEX!STRATEGY!TO!BECOME!A!LEADING!FINGERPRINT!SENSOR!...
ENABLING(THE(MASS(MARKET(FOR(SECURE(ID(
!November!2014!Dr.!Hemant!Mardia,!CEO!
www.idex.no!
12.11.14
• Mass!market!valida?on!for!fingerprint!sensors!driven!by!mobile!adop?on!and!payment!
• Enviable!patent!posi?on!and!crossFlicense!with!Apple!in!confined!patent!space!
• Execu?ng!mobile!market!product!roadmap!with!swipe,!touch!and!unique!glass!sensors!
• Well!posi?oned!for!emerging!second!mass!market!for!ID/payment!cards!
• Expanding!major!ecosystem!partners!for!volume!manufacture!and!customer!channels!
• Experienced!leadership!team!with!strong!commercialisa?on!and!biometrics!track!record!
• AOrac?ve!outlook!F!well!funded,!strong!customer!interest,!cusp!of!commercialisa?on!
IDEX!STRONG!VALUE!PROPOSITION!
IDEX:!SMARTFINGER®!!
LOW!COST! ACCURATE!&!SECURE! THIN!&!FLEXIBLE!
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IDEX!STRATEGY!TO!BECOME!A!LEADING!FINGERPRINT!SENSOR!PLAYER!IN!HIGH!GROWTH!MARKETS!
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“…Our&belief&is&that&we&should&be&able&to&iden4fy&ourselves&without&having&to&use&passwords&or&PIN&numbers.&Biometric&authen4ca4on&can&help&us&achieve&this…”&
( ( (Ajay!Bhalla,!President!of!Enterprise!Security!Solu?ons!MasterCard!
“…Fingerprint&sensors&play&a&key&role&in&mobile&payment&services,&providing&authen4ca4on&for&systems&like&Apple&Pay..” ! ! ! !!
! ! ! !!!!!!!!!IHS!
“…the&next&6G12&months&will&bring&legi4mate&strong&authen4ca4on&to&the&enterprise,&help&choke&off&major&password&hacks&plaguing&the&Internet,&and&see&hundreds&of&millions&of&FIDOGready&devices&worldwide…”&
Michael(Barre+,&&FIDO(Alliance(president&
Suppor?ng!mega!trends!• Password(replacement(• Mobile(payment(• PersonalisaEon(• Access(control(• Security(
Cards(ID(&(smart(
Internet(of(Things((IOT)(
Mobile(devices(
CLEAR!VALIDATION!OF!CAPACITIVE!FINGERPRINT!SENSORS!!FOR!THE!MASS!MARKET!DUE!TO!COMPACT!SIZE!AND!COST!POINTS!
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Tier!one!flagship!plaborms,!each!deploying!capaci?ve!fingerprint!sensors...!
…third!party!analyst!indicate!huge!growth!from!today’s!market!of!>300!million!units!
iPhone!5s/6/6+! iPad!Air2/iPad!Mini!3!
Samsung!Galaxy!S5! Huawei!Ascend!Mate!7!
2015!
300P350(
+43%!
400P500(
2014!
#!Fingerprint!sensors!in!mobile!plaborms!Million(units;(CAGR(
Sterne!Agee!es?mates!
IHS!es?mates!
317
1(400(+28%!
2014( 2020(
Cypress!Semiconductor!Q3!earnings!call! ~40%!
Source:(IHS;(Sterne(Agee;(Cypress;(Company(websites(
“…If&you&believe&all&the&data&out&there&[on&expected&market&growth]&about&40%&CAGR&in&the&next&five&years…”&
• Strongest(core(patent(porWolio(of(any(independent(capaciEve(fingerprint(supplier(
• Patent(landscape(highly(constrained(due(to(vendor(consolidaEon(
• IDEX(acquisiEon(of(Picofield(patents(in(2013(
• Extensive(coverage(to(2023(and(beyond(
• Key(jurisdicEons(include(Europe(and(the(US(
• Unique(protecEon(from(crossPlicense(with(AuthenTec/Apple:(8(US(patents(
• Apple(strengthened(the(core(‘381P(patent’(adding(118(claims(aaer(recent(challenge(
IDEX!UNIQUE!ACTIVE!CAPACITIVE!FINGERPRINT!SENSING!IP!!AND!APPLE!CROSSFLICENCE!SECURES!IDEX!MARKET!OPPORTUNITY!
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Solid!patent!porbolio!protec?ng!key!sensor!elements! One!of!fingerprint!industry’s!most!solid!patented!IP!
22(registered(families( (8(pending(families(215(registered(patents (43(pending(patents(
Compe??ve!advantage!for!IDEX!as!global!OEMs!consider!patent!protec?on!as!cri?cal!
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63
30
40
24
37
40
31
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103
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18
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Other!
OnFChip!
Naviga?on!
Through!!Substrate!Imaging! 31(
Imaging!Algorithm! 41(1(
OffFChip! 61(
LiveFinger! 64(1(
Touch! 68(
Swipe! 76(2(
Capaci?ve!!sensing! 140(
Pending(Issued(
PRODUCTS! SWIPE!FIRST!
GENERATION!SILICON!TOUCH!
SECOND!GENERATION!FLEX!TOUCH!
FUTURE!!UNIQUE!GLASS!!SWIPE!&!TOUCH!
BEST!IN!CLASS!SENSORS!
(((((
(((
((((((
RELEVANT!MARKET!
• Mobile!• Cards!• IoT!
• Mobile!• IoT!
• Mobile!• Cards!• IoT!
• Mobile!• IoT!
COMPETITIVE!POSITION!
• Best!in!class!accuracy!
• Flexible!mee?ng!ISO!card!standard!
• Compe??ve!performance!for!small!area!silicon!
• Best!in!class!image!for!mobile!
• >30%!lower!cost!than!Silicon!sensor!
• One!of!only!two!offFchip!sensor!vendors!
• Unique!in!glass!sensor!to!IDEX!
• Non!ac?ve!screen!integra?on:!ul?mate!mobile!sensor!
TIMING! • PILOT!PRODUCTION!
• PILOT!PRODUCTION!
• SAMPLE!H1!2015! • SAMPLE!2015!
IDEX!PRODUCT!ROADMAP!LEVERAGES!CORE!PATENTS!ENABLING!WORLD!LEADING!COST!AND!ACCURACY!
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IDEX!!OFFFCHIP!TECHNOLOGY!DELIVERS!THE!LOWEST!COST!!TOUCH!SENSOR!WITH!HIGH!BIOMETRIC!ACCURACY!
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“We¬e&…&IDEX&will&be&able&to&offer&a&lower&cost&sensor&than&tradi4onal&silicon&based&sensor&compe4tors&because&the&sensor&is&decoupled&from&the&chip&and&a&large&area&chip&is¬&required…”&
& & & & & & &&&&&&&&&&&&&&&&&&&&&Analyst!Charles!Anderson,!Dougherty!&!Company&
Typical!silicon!touch!sensor!! IDEX!second!genera?on!flex!touch!sensor!!
• 8!x!8!mm!
• Silicon!IC!80mm2!!!• USD!6!–!8!!
• 8!x!8!mm!!• Polymer!sensor,!Silicon!IC!<20!mm2!
• >30%!lower!cost!!• Fundamental!new!technology!• Unparalleled!imaging!
Area!!Sensor!!!!ASP!!!!
Silicon
(area(
Silicon(area(
ECOSYSTEM!PARTNERS!DISCLOSED!IN!2014!–!WORLD!CLASS!SUPPLY!AND!SALES!CHANNELS!FOR!IDEX!FINGERPRINT!SENSORS!
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Product!focus! Partner!descrip?on!
• Largest(touch(controller(IC(vendor(in(Asia,(target(300(million(in(2014(• ~50%(touch(IC(market(share(in(Chinese(manufactured(smartphones(
• Principal(independent(fingerprint(module(manufacturer(to(Asian(mobile(customers(
• Established(leading(mixed(signal,(programmable(semiconductor(soluEon(vendor(to(major(end(device(manufacturers(
• Shipped(over(one(billion(touchPsensing(controllers(in(total(
• Leading(provider(of(semiconductor(packaging(and(test(services(• Track(record(of(high(volume(manufacturing(of(finger(print(sensors(
• Sales(>(USD(3(billion;(#2(globally(by(market(share(Sensors(for(mobile(
2nd(generaEon(touch(sensor(for(mobile(
1st(generaEon(touch(and(swipe(for(mobile(
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Swipe(sensor(for(mobile(
ECOSYSTEM!PARTNERS!DISCLOSED!IN!2014!–!WORLD!CLASS!SUPPLY!AND!SALES!CHANNELS!FOR!IDEX!FINGERPRINT!SENSORS!(II/II)!
Partner!customer!access!Partnership!strategy!Product!focus!
• Sensor(packaging(technology(&(mass(producEon(services((
• Established(high(volume(semiconductor(and(mobile(customers(
• Mobile(OEM(customer(integraEon(and(support(
• Asian(mobile(and(tablet(customers(
• Very(strong(posiEon(in(China(
• Mobile(OEM(customer(integraEon(and(support(
• IC mass manufacturing
• Semiconductor solutions to global(EerPone(mobile(customers(
• Module(manufacturing(• Mobile(OEM(customer(integraEon(and(support(
• Module(soluEons(to(Asian(mobile(customers(
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Sensors(for(mobile(
2nd(generaEon(touch(sensor(for(mobile(
1st(generaEon(touch(and(swipe(for(mobile(
Swipe(sensor(for(mobile(
MARKET!LANDSCAPE!AND!INDUSTRY!CHALLENGES!DEPLOYING!FIRST!GENERATION!MOBILE!FINGERPRINT!SENSORS!
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24%(
5%(
12%(
5%(
5%(
49%(
Smartphone!market!share!Q3!2014!Percent(of(units(shipped(
• Apple!shiued!demand!from!swipe!to!touch!• Acquired(AuthenTec(only(market(ready(small(touch(
sensor((silicon)(• ePcommerce,(driving(increased(security(i.e.(5P6(digit(
PIN(equivalent((
Others(
• Synap4cs/Validity((offPchip(sensors)((• Deploying(swipe(sensors(to(Samsung(• No(other(reported(mobile(deployments(• Expect(touch(sensor(deployment(early(2015(
–(analysts(report(as(deferred(from(original(inserEon(expectaEons(
• Fingerprint&Cards&(silicon(sensors)(• swipe(sensor(inserEons(in(Asia,(
first(touch(sensors(in(smartphones(2H(2014(
• Reports(deferred(acEvity(due(to(fewer(smartPphones(launched(than(anEcipated(in(2014(
• IDEX&(offGchip&and&silicon&sensors)&• Design(win(in(Asian(smartphone(first(generaEon(silicon(touch(sensor(via(CrucialTec,(one(of(two(sources(P(
launch(deferred(• Feedback(from(other(mobile(OEMs(confirms(deferred(programs(• IDEX(successfully(commenced(silicon(touch(sensor(shipments(to(WWTT(for(mobile(accessories(
Source:(IDC;(Company(websites(
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High!Image!quliaty!from!2nd!genera?on!prototype!shows!the!micro!pores!
IDEX!PROMOTION!OF!GROUND!BREAKING!OFF!CHIP!TOUCH!DEMONSTRATOR!AND!SWIPE!SENSOR!TO!MOBILE!CUSTOMERS!
12.11.14
• IDEX!one!of!only!two!OFF!CHIP!fingerprint!sensor!vendors:!partnership!with!Cypress!Semiconductor!
– Product(leadership(in(cost(and(performance(with(second(generaEon(touch(sensor(expedited(for(H1(2015(sampling(
– Joint(demonstrator(promoEon(from(November(with(lead(mobile(customers,(proves(groundPbreaking(image(quality(
– CulminaEon(of(years(of(IDEX(IP(and(Picofield(acquisiEon((founders(of(Validity)(creaEng(new(sensing(principle(
(
Image!of!sensor!from!mass!volume!manufacturing!
• IDEX!swipe!sensor!promo?on!and!sampling!in!Asia:!partnership!with!FocalTech!
– High(volume(Eer(one(supply(chain(qualified(with(Amkor(
– Pilot(volumes(completed(with(>90%(yield(
– Prepared(for(mass(producEon(to(target(market(expansion(into(mid(end(mobile(devices(
– Strong(lead(in(to(mass(producEon(for(2nd(generaEon(touch(
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Customers!
Card!integra?on/!
manufacturers!
EMV!chip!providers!
Capaci?ve!Fingerprint!Sensor!
Component!Vendors!
Government!ID!programs!
IDEX!WELL!POSITIONED!IN!BIOMETRICS!CARD!MARKET!FOR!2015!DUE!TO!FLEXIBLE!SENSOR!TECHNOLOGY!
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• Massive!addressable!market!–!payments!and!ID!– 7(billion(payment(cards(shipped(in(2012(– 1.8(billion(were(EMV(cards((PIN)(– Several(naEonal(ID(programs(launched((e.g.(
Netherlands,(UAE,(India)(
• Flexible!substrate!complies!with!ISO!standard!card!stress!test,!not!large!briOle!silicon!IC!
• Best!in!class!biometric!accuracy!– Swipe:(algorithms(for(40%(skew(and(speed(range(– Second(generaEon(touch:(Superior(image(quality(
• Strong!algorithms!suitable!for!card!use!with!low!footprint!and!low!power!opera?on!
!• Industry!lowest!cost!posi?on!for!touch!sensors!
based!on!offFchip!technology!
IDEX!strong!value!proposi?on!for!the!card!market!IDEX!sensors!ideally!suited!for!card!integra?on!!
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IDEX!WELL!POSITIONED!IN!BIOMETRICS!CARD!MARKET!FOR!2015!DUE!TO!FLEXIBLE!SENSOR!TECHNOLOGY!
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IDEX!sensor!in!world’s!first!ISO!compliant!payment/ID!card!launched!by!Card!Tech!…!
• Initial sales from IDEX swipe sensors delivered in September to Card Tech
• Industry first ISO standard dual interface (contact/contactless) biometric card for
ID and payments integrating IDEX sensor
• Demonstrated at Cartes exhibition early November, strong customer interest and Card Tech sampling underway
• Standard card thickness and passed ISO tests for flexing due to off chip sensor
…!and!IDEX!targe?ng!card!market!with!other!partnership!ini?a?ves!!
• IDEX(working(with(several(integrators(due(to(unique(low(cost(flexible(swipe(sensor(and(compact(algorithms(
• IDEX(forthcoming(second(generaEon(touch(sensor(enables(disrupEve(cost(for(mass(adopEon(
• Off(chip(sensing(meets(ISO(standard(thickness((0.76mm(cards)(and(flexing((
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IDEX!CONTINUES!TO!STRENGTHEN!TEAM!FOR!COMMERCIALISATION!AND!ATTRACT!INDUSTRY!VETERANS!
12.11.14
Several!industry!veterans!joined!recently!aOracted!by!unique!IP!and!roadmap!
Strategy!Advisory!Council!with!industry!pioneers!Larry!Ciaccia!!• Former(CEO(of(AuthenTec,(responsible(for(growth(and(sale(to(
Apple(Inc.((
Michael!BarreO!!• Chairman(FIDO(Alliance,(formerly(CISO(PayPal,(VP(Security(
American(Express(
• Staff!doubling!across!12!month!period!with!exper?se!from!fingerprint!biometrics!and!mobile!product!commercialisa?on!
• Loca?ons!in!Europe,!US,!Asia(
Increased!investment!in!organiza?on!!FTEs*!
5 6114
6 6
820
22
27
31
3
Q3!14!
50!
Q2!14!
39!
Q1!14!
32!
Q4!13!
27!
OperaEons(
Sales(and(markeEng(
R&D(
*(Including(IDEX(employees(and(individual(contractors((
IDEX!global!expansion!
14
8(((46.5)&
Cash!balance!$M(((MNOK)(
48((294.7)&
57((342.5)&
4.0(
4.5(
5.0(
3.5(
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2.0(
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Q4!2013!
3.9!(23.5)!
OPEX!run!rate!$M((MNOK)&
3.3((20.4)(
Q2!2014!
4.2!(25.0)(
0.7((4.3)(
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3.0((17.7)(
Q1!2014!
4.9!(30.0)!
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Q3!2014!
4.6!(29.0)!
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Other(
R&D(
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STRONG!CASH!BALANCE!!SUSTAINING!INCREASED!COMMERCIAL!ACTIVITY!
AOrac?ve!business!model!with!licensing!and!sensor!sales!via!outsourced!manufacture!and!strong!industrial!partnerships!
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• 1st(generaEon(touch(and(swipe(sensors(sampling(and(producEon(
• 2nd(generaEon(touch(promoEon(now(with(Cypress(for(H1(2015(sampling,(H2(2015(producEon(
SECURE!MARKET!TRACTION!
Mobile!
ATTRACTIVE!OUTLOOK!–!WELL!FUNDED,!STRONG!CUSTOMER!INTEREST!AND!CUSP!OF!COMMERCIALIZATION!WITH!TIER!ONE!PARTNERS!
• WWTT(order(upgraded(to(1st(generaEon(touch.(IniEal(shipments(conEnue(Q4(2014(
• Sampling(swipe(sensor(
INITIAL!PRODUCT!SHIPMENTS!
IOT/Peripheral!
• Deliveries(to(CardTech(P(integrated(in(industry(first(launch(of(ISO(card(
• Increased(card(partner(acEvity(
• H2(2015(product(deployment(
DEMONSTRATOR!PHASE!
ID/Smart!Cards!
• AuracEng(significant(Tier(1(partner(acEvity(
(
• Investment(in(product(leadership(through(patents,(IC,(&(algorithms(
• Development(of(unique(glass(sensor((
EXPANSION!OF!STRATEGIC!PARTNERS!
Business!Opera?ons!
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