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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 Worldwide Shipments of Mobile Phones (Millions of Units) 800 700 GR CA 600 36% 556 500 118 223 320 409 484 Mid-range to High End Mid-Range to High End includes 400 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 Multimedia Companion Chip Market (Millions of Dollars) 3000 2500 2000 Apps Processors 1500 R G A C MM Companion % Chips 1000 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.
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