DIFFERENTIATION THROUGH INTEGRATION
NeoMagicNeoMagic CorporateCorporate OverviewOverview
August 2004 NeoMagicNeoMagic CorporationCorporation
High Performance, Power Efficient Applications Processors for Multimedia-Rich Mobile Phones and Handheld Devices
2 InvestmentInvestment HighLightsHighLights
Huge and Growing Mobile Multimedia Market Features and Performance Requirements Continuing to Increase Applications Processors are Critical for Advanced Multimedia Features
Highly Differentiated New Product Platform Unique Array Processing Architecture Flexible/Programmable Strong Technology Portfolio with over 70 Patents
Strong Management Team with Experience in Ramping High Volume Businesses
3 MobileMobile MultimediaMultimedia ProliferationProliferation
800 Worldwide Shipments of Mobile Phones (Millions of Units) 700
600 GR CA 36% 500 556 118 223 320 409 484 Mid-range to High End 400 Mid-Range to High End includes Imaging and Advanced Multimedia 300
Low End 200 Low End includes voice/data and basic multimedia only 100
0 2003 2004 2005 2006 2007 2008
4 Based on: IDC Report March, 2004 MobileMobile MultimediaMultimedia GrowthGrowth DriversDrivers
Handset Replacement Market Accelerating Shorter Replacement Cycle in Mobile Phone Market Users Demanding Multimedia Features such as Color Displays, Cameras and Games
Phone Manufacturers and Carriers Want to Introduce Additional Multimedia Apps Digital TV, Video Clips, 3D Gaming Carriers Need Incremental Service Revenues
Mobile Handset Manufacturers Proliferate New Market Entrants are Driving Innovation Features and Performance for Product Differentiation
5 BasebandBaseband ++ CompanionCompanion Chip(s)Chip(s) SolutionSolution
SDRAM
Camera/VideoCamera
CPU Video Codec ARM Primitive LCD ASCI text was all HWyou had on your display. LCD SRAM DSP SRAM Cntl LCD Image BasebandBaseband Companion Chip Sensor
SDRAM
3D Graphics 3D HW
LCD SRAM Cntl LCD Companion Chip
Increasing Costs For Bringing New Features to Market 6 BasebandBaseband ++ ApplicationsApplications ProcessorProcessor
SDRAM
CPU CPU ARM ARM LCD Multimedia DSP SRAM Peripherals Image BasebandBaseband Apps Processor Sensor
Real Time OS Graphical User Interface Radio Link Audio/Video Applications Voice Processing Multi-Tasking OS (Microsoft, Symbian, Linux) Open Environment for 3rd Party Applications
Programmable & Flexible: Faster Path to New Features 7 MarketMarket ShiftShift ToTo ApplicationsApplications ProcessorsProcessors
Worldwide Mobile Phone Applications Processor and 3000 Multimedia Companion Chip Market (Millions of Dollars)
2500
2000
1500 Apps Processors R G A C MM Companion 1000 % Chips 4 6 500
0 2003 2005 2007
8 Based on: IDC Report March, 2004 MMiiMMaaggiicc PPrroodduucctt EEvvoolluuttiioonn Includes Parallel Processing Multimedia Engine MiMagic “Next” • Enhanced Performance • Improved Efficiency
MiMagic 6 • ARM926 Processor • Java H/W Acceleration • APA Multimedia Engine Advanced Camera Functions Advanced Video Codecs 3D Graphics MiMagic 5 • ARM922 processor • Camera Processing Acceleration • Hardware Assisted Video Codec
Performance/Features MiMagic 3 • ARM 7-based processor • Peripheral Integration
Time
9 AcquisitionsAcquisitions HelpHelp BuildBuild UniqueUnique technologytechnology PlatformPlatform
Parallel Array Processing Architecture ACL
Low-Power Multimedia Know-How NeoMagic MiMagic 6 And Future Products
Link-Up
ARM-Based S-O-C
10 ApplicationsApplications ProcessorProcessor ArchitecturesArchitectures
SDRAM 1) Multimedia runs on CPU Advantages: Flexibility and Programmability Disadvantages: High Power Consumption CPU Low Performance ARM
Multimedia 2) Hardware Acceleration Advantages: Low Power Peripherals Disadvantages: Lacks Flexibility and Features Apps Processor
3) Multimedia Processor Advantages: Flexibility, Programmability and High Performance Disadvantages: Dependent on Architecture
11 MultimediaMultimedia EngineEngine ArchitecturesArchitectures
MiMagic 6 Architecture DSP Architecture
Multimedia Engine DSP ARM926 ARM92X Array ALU Processor
2 MAC Control D-Cache I-Cache I-Cache & & I- Cache RM I- Cache D-Cache D-Cache
Array Processor Data Movement from Stores and Cache to ALU/MAC: Processes Data: Burns Power SDRAM SDRAM Saves Power 12 ParallelParallel ProcessingProcessing 16-Bits 8-Bits
Conventional Approach: 160 Columns
NeoMagic Approach:
Massively Parallel Array Processor Works on 512 Rows at One Time
13 MiMagicMiMagic 66 PerformancePerformance @@ 100100 MHzMHz
Mega Ops Per Second (MOPS) 1067 1200
1000
800
600
400 100 200 33
0 ARM9 DSP 512 Row Array
Processor 14 Example Op = 16-Bit Addition MoreMore PowerPower--EfficientEfficient ProcessingProcessing
Increasing Parallelism MOPS/mW Increasing Parallelism 17.8 18 16 14 12 10 8 6 4 1.85 0.36Increasing Megahertz 2 Increasing Megahertz0.14 0 ARM9 32-Bit RISC C55 DSP in 512 Row in XScale OMAP Array in
MiMagic 6 15 Example Op = 16-bit Addition CurrentCurrent CompetitiveCompetitive LandscapeLandscape
Type of On Chip Power Runs Company Product Chip Video 3D Efficiency Open O/S NeoMagic MiMagic 6 App Processor Good Yes Good Yes Intel Xscale PXA 26x App Processor Poor No Poor Yes Bulverde PXA 27x App Processor Fair No Poor Yes STMicro Nomadik App Processor Fair No Fair Yes TI OMAP 17xx App Processor Fair No Fair Yes OMAP 7xx App Proc. w/ BB Poor No Fair Yes Qualcomm MSM6500 App Proc. w/ BB FairNoFairNo Renesas SH-Mobile-V Companion Fair No Good No Emblaze ER4525 Companion Fair No Good No Nvidia GoForce 4k Companion FairNoFairNo ATI Imageon W4200 Companion FairNoFairNo 2300 Companion Fair Yes Fair No
16 KeyKey TargetTarget CustomersCustomers Taiwan Europe Japan Arima Alcatel Kyocera BenQ Ericsson NEC ChiMei Neonode Panasonic Compal Nokia Sanyo DBTel Siemens Sharp Foxconn Sony Ericsson Quanta Toshiba Wistron
China Korea United States Bird LG Motorola Konka Pantech & TCL Curitel Samsung Announced Customer 17 TTeecchhnnoollooggyy RRooaaddmmaapp
K A-4 AP 2K A- AP 1K A- AP
1 M 1 A AR AP er rg ISC La rf R r Pe ation ghe tegr MiMagic 6 Hi ral In riphe • ARM926 Processor f Pe vel o • APA-512 Multimedia Engine er Le nm Advanced Camera Functions igh 90 H µm Advanced Video Codecs 0.11 3D Graphics ss • Peripherals Proce • 0.13 Micron
Performance & Functionality
18 OpportunityOpportunity forfor continuingcontinuing InnovationInnovation
Data and Processing Complexity
Mobile D3D
Gaming Engines ts Open GL-ES en High Res Video em 3D Pipeline H.264 ir Video Conferencing qu 2D BitBLT Re MPEG-4 ce hics Encoding 3.2M Pixels n Grap 2M Pixels ma Playback for 1.3M Pixels Per Video 307K Pixels ng 76K Pixels asi rs 480 x 640 cre Image Senso 320 x 480 In 160 x 220 240 x 320 120 x 160 Color Bitmapped Displays MiMagic Product Roadmap MiMagic 5 MiMagic 6 “Next” “Next +1”
19 WorldwideWorldwide OperationsOperations
NeoMagic Semiconductor India New Delhi (Noida), India
NeoMagic Corporation Staff: 60 Santa Clara, California, USA Software Development Staff: 80 Software QA Chip Development IP Block Development Chip Validation/Verification Circuit Design Applications Engineering Software Development Manufacturing Marketing/Sales NeoMagic Israel Finance/Administration Tel Aviv (Netanya), Israel
Staff: 20 Array Processing Architecture Video Compression Algorithms Image Processing Algorithms
160 People Worldwide – Over 120 Engineers 20 FinancialFinancial InformationInformation
Q1 Results:
FY’05 Q1 Revenues $651K
FY’05 Q1 Operating Expenses $7MM
Total Cash $37MM
Long-Term Debt $ 0
21 LongLong TermTerm OperatingOperating ModelModel
Gross Margin 35% - 40%
R&D Expense 13% - 17%
S,G&A Expense 8% - 10%
Net Margin* 8% - 19%
* NeoMagic currently has > $40 million of NOL carryforwards
22 InvestmentInvestment HighLightsHighLights
Huge and Growing Mobile Multimedia Market Features and Performance Requirements Continuing to Increase Applications Processors are Critical for Advanced Multimedia Features
Highly Differentiated New Product Platform Unique Array Processing Architecture Flexible/Programmable Strong Technology Portfolio with over 70 Patents
Strong Management Team with Experience in Ramping High Volume Businesses
23