Ralink Technology (TAIEX:3534) Company Profile
Fast. Far-reaching. Reliable
Ralink Technology Corp.
Ralink Technology
Founded in 2001 & shipping since 2003
Headquartered in Hsinchu, Taiwan
Branch Offices in US, Europe, Japan, China
660 employees worldwide
Top 4 WLAN IC-solution provider with 12~15% global market share; top 3 xDSL IC-solution provider with 22~25% global market share.
Taiwan IPO in April, 2008
– Stock Code: 3534 (TT)
– Capital: 42.2 million (USD)
– Market Cap: 543.2 million (USD)
Note: USD:NTD=1:29.3; stock quote at NTD 91 per share. (As of February 17, 2011)
- Ralink Confidential -2
Ralink Headquarters - Hsinchu, Taiwan
Global Wi-Fi Market
675.9M
945.4M
1,257.5M
1,607.5M
1,922.8M
Source: In-Stat, 2010
(Year)
(Unit)
Global ADSL MarketBroadband Subscribers (in millions))
Year
xDSL accounts for ~ 60% of the global broadband market.
Source: iSuppli, 2010
Wireless LandscapeRalink is focusing on Wi-Fi IC design
WPAN
Bluetooth 802.15.1 – 2.4Mbps
ZigBee802.15.4 – 20kbps
UWB802.15.43– 55Mbps
WMAN
WiMAX802.16 d.e 50 – 134 MbpsWLAN
Wi-Fi 802.11a – 54Mbps (5GHz)802.11b – 11Mbps (2.4GHz)802.11g – 54Mbps (2.4GHz)802.11n – 150~600Mbps (2.4GHz/5GHz)
3G 1~3.5 Mbps3.5G 3.6~7.2 Mbps
Cellular
- Ralink Confidential -5
Ralink’s Shipment Record
25.8 M units shipped in 4Q10, representing an 15.2% QoQshipment growth, and an 49% YoY shipment growth
Totaled 2010 shipped 88.4M units, representing a 67.7% YoYshipment growth.
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Shipment Breakdown by Applications
Broadband
50%
PC/NB
15%
CE
6%
Retail
29%
Wi-Fi v.s. ADSL(4Q10)
Chipset applications(4Q10)
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Wi-Fi70%
ADSL30%
NTD (Thousands) 2010 2009 YoY
Net revenues 7,360,927 100% 5,086,535 100% 44.7%
Gross profit 3,124,266 42.4% 1,956,156 38.5% 59.7%
Operating expenses (2,258,794) (30.7%) (1,538,451) (30.3%) 46.8%
Operating income 865,472 11.8% 417,705 8.2% 107.2%
Non-operating income (loss) 58,181 0.8% 83,346 1.6% (30.2%)
Pretax income 923,653 12.6% 501,051 9.8% 84.3%
Net income 910,981 498,449 82.8%
EPS (NT dollars) 6.5 4.0 62.5%
Employee profit sharing 289,097 158,174
2010 Ralink’s Income Statement
※Unaudited Concise Consolidated Income Statement
NTD (Thousands) 4Q10 3Q10 QoQ
Net revenues 1,814,658 100.0% 1,905,736 100.0% (4.8%)
Gross profit 672,952 37.1% 843,955 44.3% (20.3%)
Operating expenses (618,992) (34.1%) (602,050) (31.6%) 2.8%
Operating income 53,960 3.0% 241,905 12.7% (77.7%)
Non-operating income (loss) (3,618) (0.2%) 26,646 1.4% (113.6%)
Pretax income 50,343 2.8% 268,551 14.1% (81.3%)
Net income 58,866 262,372 (77.6%)
EPS (NT dollars) 0.42 1.87
Employee profit sharing 16,377 79,017
4Q10 Ralink’s Income Statement
※Unaudited Concise Consolidated Income Statement
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Ralink’s Balance Sheets
(In NT thousands, except indicated otherwise) 4Q10 3Q10
Cash & Financial assets-current 5,879,480 5,224,076
Notes & Accounts receivable (net) 1,156,150 1,087,241
Inventory (net) 812,930 649,820
Total assets 13,703,509 7,512,249
Notes & Accounts payable 2,188,219 1,768,920
Long-term liabilities 443 933
Total liabilities 2,490,541 1,867,581
Paid-in capital 1,745,624 1,285,642
Total shareholders' equity 11,212,968 5,644,668
Key indices
Net value per share (NTD) 64.2 43.9
Current ratio 322% 379%
A/R turnover days 56 53
Inventory turnover days 58 50
※ Unaudited Concise Consolidated Balance Sheets
Launched mobile Wi-Fi product line for cell phones and portable consumer electronics.
Unveiled world’s 1st 30a profile vDSL chipsets on a 2-Layer board design
Demonstrated next generation wireless solutions and applications at CES 2011 including:
− Next-generation wireless display solutions
− Wireless Blu-Ray players
− Advanced wireless peer-to-peer connectivity solutions
− World’s 1st single-chip 802.11n+Bluetooth 3.0 for mobile computers
− Customer solutions including eReaders, Femtocells, 3G routers, cable modems, Internet radios, and other consumer electronics solutions
Recent Highlights
- Ralink Confidential -12
New Ralink’s Merger Progress
Consolidation Date : Oct. 1st , 2010
Paid-in Capital as of Dec. 31st, 2010: 140,049,811 shares
New Ralink’s Capital : 174,903,402 shares
Previous Share Swap Ratio : TrendChip : Ralink = 0.8209 : 1
Final Share Swap Ratio : TrendChip : Ralink = 0.7939 : 1
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