Inphi Moves Big Data Faster - Inphi Corporate Update November 1, 2016 - Inphi Corporation
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Inphi Moves Big Data Faster Inphi Corporate Update November 1, 2016
Safe Harbor Summary
This presentation is neither an offer to sell nor a solicitation of an offer to buy any of these securities and shall not
constitute an offer, solicitation, or sale in any jurisdiction in which such offer, solicitation, or sale is unlawful. The notes and
the shares of Inphi Corporation common stock issuable upon conversion of the notes, if any, will not be registered under
the Securities Act of 1933, as amended (the “Act”) or any state securities laws, and unless so registered, may not be
offered or sold in the United States except pursuant to an exemption from the registration requirements of the Act and
applicable state laws. Any purchaser of such securities will be deemed to have made certain representations and
acknowledgments, including, without limitation, that the purchaser is a “qualified institutional buyer” as defined in Rule
144A under the Act.
This presentation includes forward-looking statements relating to matters that are not historical facts, including, without
limitation, statements regarding the expected terms of the notes, the timing and expected use of the net proceeds of the
proposed offering, Inphi’s short and long term growth strategies, trends in IP traffic and technology adoption, the future
sizes and anticipated growth of the networking infrastructure, cloud computing and data center markets, and the scaling of
memory capacity with CPU cores. In some cases, such forward-looking statements are identified by words such as
“anticipate,” “believe,” “plan,” “estimate,” “expect,” “strive,” “future,” “intend” and similar expressions. Although Inphi’s
management believes that the expectations reflected in the forward-looking statements are reasonable, such statements
involve known and unknown risks, uncertainties and other factors that may cause Inphi’s actual results to be different from
any future results expressed or implied by these statements, including the risks and uncertainties described in the
preliminary offering memorandum relating to the proposed offering report, and other filings with the U.S. Securities and
Exchange Commission made from time to time. We caution you that no forward-looking statement is a guarantee of future
performance, and you should not place undue reliance on these forward-looking statements which reflect the view of
Inphi’s management only as of the date of this presentation. We assume no obligation to, and expressly disclaim any
obligation to, update any forward-looking statements contained in this presentation as a result of new information or future
events or developments.
In addition to U.S. GAAP financials, this presentation includes certain non-GAAP financial measures. These non-GAAP
financial measures are in addition to, and not a substitute for or superior to, measures of financial performance prepared in
accordance with U.S. GAAP. See the Appendix for a reconciliation between each non-GAAP measure and the most
comparable U.S. GAAP measure.
Inphi Proprietary 2
Inphi Leads in Optical and Networking Physical Layer
Non-GAAP Revenue ($M)*
Focus on high-speed data movement interconnects
$193 $185
Serve cloud, enterprise and service provider markets $100
$43
Differentiate with broadband linear amplification and higher
modulation opto-electronic solutions 2013 2014 2015 YTD Q3'16
Non-GAAP EPS
Core competence in high speed analog, DSP and optics
$1.04
$0.93
439 patents: high-speed analog and package design
$0.23
Invest for growth with 75% engineering
2014 2015 YTD Q3'16
Notes: Company data per human resources & finance reports 9/30/16 and legal reports 10/25/16
*Pro-forma, Non-GAAP revenue adjusted for continued operations of the sale of the memory business
Inphi Proprietary 3
Inphi Global Locations
Support Customers and Attract Talent
Worldwide Offices in North America, Asia-Pacific, Europe
Inphi HQ:
Santa Clara, CA
Design Centers Sales & Support Operations
USA: Irvine, Santa Clara, USA: Austin, Chicago, Folsom, USA: Santa Clara, Westlake Village
Westlake Village Kansas City, Raleigh Asia-Pacific: Malaysia,
Canada: Ottawa, Vancouver Santa Clara, Westlake Village Singapore, Taiwan
United Kingdom: Northampton Europe: Milan, Munich
Europe: Hanover Asia-Pacific: Beijing, Hsin-Chu,
Asia-Pacific: Singapore Shanghai, Shenzhen, Wuhan, Tokyo
Inphi Proprietary 4
Data and Traffic Growing Exponentially
Cloud Services IoT
▲44% ▲107%
Cisco Global Cisco IoT
Cloud Index White Paper
Data and Traffic
Explosion
Wireless Video
7.3Bn ▲33%
Cisco Visual
Subscriptions Networking Index
Ovum
Big Data Social
▲23% 2.0Bn Users
IDC IDC
e-Commerce
▲10%
IDC
Notes
1. Wireless subscriptions and social media users are as of 2015
Inphi Proprietary 2. CAGR calculated from 2014 – 2019, for sources refer the references section 5
Data and Traffic Explosion Drives Data Center Growth
Cloud Services IoT
Growing 10K to Long Distance =
100K Servers Single Mode Fiber
Need: Massive Need: Cost
Interconnects Effective 100G
Data Center
Cloud Hardware
and SoftwareNetwork
Aggregation Layer
Wireless Video
Big Data Social
e-Commerce
▲ Higher Density ▼ Lower Power ▼ Lower Cost
Inphi Proprietary 6
Inphi Leads in Data Movement Interconnect
Data Manipulation Data Movement
Processor, GPU, NIC, Switch Optical, Networking
Digital Analog, Mixed Signal, DSP
Inphi Proprietary 7
Inphi Solves Data Movement Between & Inside Data Centers
“The Data Center is the Computer™”
Inside DC
500m-2km
Cloud Hardware
and SoftwareNetwork
Aggregation Layer
DCI Long Haul >600km
Connecting DCI Metro 100km-600km
“The Cloud is the Network™” Data Centers DCI Edge 2km-100km
Cloud Hardware
and SoftwareNetwork
Aggregation Layer
“The Data Center is the Computer™”
Inphi Proprietary 8
Leader in Data Movement Interconnect
Long Haul / Metro Between Data Centers Inside Data Centers
Data Movement Around the Globe Data Movement Between Data Centers Data Movement Inside Data Centers
Optical Optical DWDM
Silicon CDR/PHY Gearbox
Amplifier Driver Optical Module PAM
Photonics
Reference Design
Inphi Proprietary 9
Provide Complete Component Solution for Optical Platform
Long Haul / Metro Data Center
Partner
Partner Optics SiPho
Optics
TiA TiA
Driver Driver
High Performance
Coherent DSP Low Power PAM DSP
Inphi ClariPhy* Partners
*Planned
Inphi Proprietary 10Complete Platform to Enable Customer Success
Best Quality
Low Power
High Performance
Fast Time-to-market
Optical Platform
SiPho
or
Coherent DSP* Partner Optics Driver
Optical PHY TiA
Competitive Cost
Long Reach
Dedicated Customer Support Note:
1. Wireless subscriptions and social media users are as of 2015
2. CAGR calculated from 2014 – 2019, for sources refer the
references section
Inphi Proprietary * Planned
11Large Total Addressable Market (TAM)
Long Haul / Metro Between Data Centers Inside Data Centers
90 Million 10G/40G/100G Ports
Service Providers Data Centers Cloud Enterprise
$3 Billion Interconnect TAM in 2019
Note: 2016 data from Cignal AI, Crehan Research, LightCounting,
Inphi Proprietary HIS and Inphi Estimates
12Building an “Annuity” Infrastructure Business
Transimpedence Amplifier (TiA)
Optical PHY: Gearbox, CDR, PAM
Driver
ColorZ
Coherent DSP *
2013 2014 2015 2016 2017 2018 2019
*Planned
Inphi Proprietary 13Long Haul / Metro: The Cloud is the NetworkTM
100G/200G Adoption is Accelerating in Long-Haul & Metro
737
Forecast Improving over Time
619
539
520
436 463
415
369
362
321 360
255 298
208 258
251
167 210
August 2016 120 182
170
October 2015 138 100G & 200G Long-Haul & Metro TAM (KU Ports)
July 2015 124
November 2014
May 2014 2014 2015 2016 2017 2018 2019 2020
Source: IHS (Infonetics), August 2016 and prior forecasts
Inphi Proprietary 15Inphi Leads Transition from Limiting to Linear
10G 40G 100G 200G 400G 1T
TIA Limiting Linear
Driver Limiting Linear
100%
Estimated market share of
80% Linear Drivers for 100G – 1T
60% Prior Estimate
July 2015
40%
20%
Limiting
0%
2012 2013 2014 2015 2016 2017 2018
Inphi Proprietary 16Industry Leading Linear Coherent Solutions
100G/200G 400G
4 Top 4 Tier 1
OEMs use Inphi
32GBaud Linear Driver 45GBaud Linear Driver
linear amplifiers
3 out of 4 Tier 1
OEMs use Inphi
linear drivers
Inphi is first to
market with
45GBaud linear
amplifier and driver
solution for 400G
32GBaud Linear Amplifier Next-Gen 45GBaud Linear Amplifier
Inphi Proprietary 17World’s First 45Gbaud Driver
10,000 km subsea transmission, 8QAM, 300Gbit/sec
Inphi Proprietary 181M Coherent Units Shipped, > all competitors combined
0.6 Industry Smallest SMT 1.2
100G Linear Driver
0.5 1.0
Cumulative Shipments (Millions)
Shipments per Year (Millions)
0.4 0.8
Industry First 100G
0.3 Linear Driver 0.6
0.2 0.4
Industry First 100G
Linear Amplifier
0.1 0.2
0.0 0.0
2010 2011 2012 2013 2014 2015
Inphi Proprietary 19Growing Optical Interconnects Between Data Centers
Ports grow 50%
Enter Metro
Take share with Linear
Ramp new 45 Gbaud products
Grow with both module and line card customers
Support partner products: SiPho, CFP DCO, CFP2 ACO
Ramp new modulations: 8QAM and 16QAM
Inphi Proprietary 20Between Data Centers: DCI Edge Solutions
100G Adoption Ramping Between Data Centers
DCI Edge
100G
312
195
117
68
26
1 10 100G DCI Edge Port Forecast (KU Ports)
July 2016
2014 2015 2016 2017 2018 2019 2020
Source: Cignal AI, July 2016
Inphi Proprietary 22ColorZTM Delivers 100G QSFP28 for 80km Data Center Interconnect
“The Data Center is the Computer™”
Cloud Hardware
and SoftwareNetwork
Aggregation Layer
“The Cloud is the Network™”
100Gb/s
Connecting
Data Centers
80km
4.5W
Cloud Hardware
and SoftwareNetwork
Aggregation Layer
“The Data Center is the Computer™”
Inphi Proprietary 23Metro Datacenter Interconnect (DCI) Gap
No Cost Effective 100Gb/s
DWDM Solutions Today
Point to Point Links ROADM Networks
10G
Standards
IEEE 802.3ba / OIF / Coherent
DWDM OIF / Coherent QPSK/8QAM
CR4,SR4, LR4 QPSK/16-QAM
SFP+
100G/200G 100G/200G/400G
100G
DWDM DWDM
0 2 10 100 600 10,000
Distance (km)
80km
40x 40x
4Tb/s
100G Switch 100G Switch
ColorZ delivers a cost effective approach to resolve these DCI bottlenecks
Inphi Proprietary 24ColorZ Delivers Complete Solution for Time-to-Market
Linear PAM:
SiPho
TiA, DSP,
Optics
Driver ADC
100G,
Validated
QSFP28,
Design
80km
Lower Lower 100G
Power Cost Speed
Inphi Proprietary 25ColorZ Moves the Library of Congress in
ColorZ Platform Enables Virtual Mega-Cloud in 2H’16
Offers compelling value proposition in terms of power,
faceplate density, and cost per bit for 80km reach
Provides a cost effective upgrade path from 10G DWDM in
SFP+ to 100G DWDM in QSFP28
Complements coherent technology for end-to-end 100G
DWDM connectivity for Inter-DCI for Cloud customers
Expands market opportunity for the optical industry and
Inphi, with strong benefits for cloud customers
Industry firsts 100G PAM Silicon Photonics, 80 km PAM4
ASIC, and DWDM Reference Design for QSFP28
Inphi Proprietary 27Inside Data Centers: The Data Center is the ComputerTM
“Fiber PHY” Growing Rapidly in Data Center, SMF
Source: “Mega Data Center Optics Report,” LightCounting, March 2016
Inphi Proprietary 29“Fiber PHY” Growing Rapidly in Data Center, SMF
Source: “Mega Data Center Optics Report,” LightCounting, March 2016
Inphi Proprietary 30“Fiber PHY” Growing Rapidly in Data Center, MMF
Source: “Mega Data Center Optics Report,” LightCounting, March 2016
Inphi Proprietary 31Datacenter Transition to Fiber, DAC PHYs
1G 10G 25G 40G 50G 100G 400G
Fiber / DAC
BASE-T
100%
Estimated Capture Rate by Fiber/DAC
into BASE-T PHY Share
BASE-T PHY
0%
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Source: Inphi Estimates, Crehan Research, February 2015
Inphi Proprietary 32Distances, Speeds Drive Optics/Electrical Transition
Mega Data Center
500m-2km
distances
Source:
Corning
Longer Distances = Single Mode Fiber
Cost Effective DSP-based PAM Optical Interconnects
Inphi Proprietary 33Industry Leading NRZ and PAM Optical PHY Solutions
Enterprise Service Provider Data Center
Server Line CFP CFP2/8 QSFP SFP OSFP and
Card QSFP-DD
nx10G PHY
100G Gearbox
nx25G CDR
nx50G PAM
nx100G PAM
Inphi Proprietary 34Roadmap to Lower Cost, Higher Density
Router
N x 100G
QSFP Inflection
2012 2014 2015 onwards
CFP 12W-24W CFP2 12W-14W QSFP 3.5W
Switch
25/50G
SFP Inflection
2008 2015 onwards
SFP 10G 1.5W SFP 1.5W
Server
Enterprise Server
SOC Inflection
2012 2015
N x 10G SFP N x 10G SFP
Higher Density Lower Power Lower Cost
Inphi Proprietary 35Growing Networking Interconnects
Inside Data Centers and for Service Providers
Ports grow 35% for 10G/40G, 300% for 100G
Ramp 10G/40G in servers with Broadwell generation
Accelerate 100G ramp with CFP and CFP2
Grow 100G NRZ CDR/TiA/Driver for QSFP28
Ramp PAM for 40/100G first, 50/200/400G next
Address both single- and multi-mode fiber
Partner with VCSEL, DML, EML and SiPho optics
Inphi Proprietary 36Inphi Strong Leadership from Comms/Server
Position Background
Ford Tamer President and CEO
John Edmunds CFO
Loi Nguyen Founder, Sr. VP, Optical Interconnect
Sudeep Bhoja CTO, Networking Interconnect
Radha Nagarajan CTO, Optical Interconnect
Charlie Roach Sr. VP, Worldwide Sales
Siddharth Sheth VP, Networking Interconnect
Ron Torten Sr. VP of Operations and IT
Lawrence Tse VP of Engineering
Inphi Proprietary 37Inphi Recognized for Excellence
Cisco Huawei FiberHome Sumitomo Sumitomo Electronics
New Emerging Best Quality Core Partner Awards of Excellence Device Innovation (SEDI)
Technology Supplier Company 2015 2013 2015
2015 2015 Best Partner
Awards
2013-2015
Samsung
Best Quality Best Partner
NeoPhotonics ECN LightWave
Company 2016 Impact Awards
Supplier of the Year Innovation Award for PAM4
2010
2015 2016
Quad
PAM4
Linear
2016 Driver
2014
Inphi Proprietary 38Innovation Drives Customer Success
2001 2016
40G Differential Drive
Modulator Driver ColorZ for 80km DWDM
+ +
SiPho Platform for
40G TIA
2015 100G Data Center
Smallest Form Factor +
+ Shipped 1M 100G
2009 SMT Linear Driver Coherent Amplifiers
28G Coherent TIA + & Drivers
+ PAM 4 +
28 Gbps Differential 64G Coherent TIA
Modulator Driver +
Lowest Power CDR
+
2014 400G CFP8 Platform
45G Linear (DSP / Driver / TIA)
Modulator Driver
+
45G Coherent TIA
+
PAM
2012
28G CMOS SERDES
+
32G Linear
Modulator Driver
Inphi Proprietary 39Deliver Consistent Revenue Growth
Non-GAAP Revenue $M
$193
$185
$100
$43
2013 2014 2015 YTD Q3'16
*Pro forma. Non-GAAP revenue adjusted for discontinued operations of the sale of the Memory Business
Inphi Proprietary 40Consistent and Growing Profitability
Non-GAAP
Operating Margin EPS
26.4%
$1.04
22.4%
$0.93
8.5%
$0.23
2014 2015 YTD Q3'16 2014 2015 YTD Q3'16
*Pro forma. Non-GAAP, adjusted for discontinued operations of the sale of the Memory Business
Inphi Proprietary 41Thank You
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