Verigy … a Premier Semiconductor Test Companyfiles.shareholder.com/downloads/VRGY/0x0x337580/18224457...Verigy … a Premier Semiconductor Test Company Barclays Global Technology

Verigy … a Premier Semiconductor Test Company

Barclays Global Technology ConferenceDecember 8, 2009

Judy Davies

Credit Suisse Technology Conference / December 2009

Page 2

Page 2

Safe Harbor Statement

This presentation contains certain forward-looking statements within the meaning of section 27A of the Securities Act of 1933 and section 21E of the Securities Exchange Act of 1934. These forward-looking statements are based on current information and expectations, and involve a number of risks and uncertainties. Actual results may differ materially from those projected in such statements due to various factors, including but not limited to: unforeseen changes in demand for semiconductors and thus for our semiconductor test solutions; our dependence on independent contract manufacturers and sole source suppliers; changes in key customer relationships; new product introductions by our competitors and/or technological changes that may render our test solutions less competitive and other factors set forth in Verigy’s filings with the Securities and Exchange Commission. These and other factors that may cause actual results to differ from those projected are discussed in our most recent SEC filings.

Verigy assumes no obligation to update the information in this presentation.


Page 3

Verigy: Positioning for the Future

Strong balance sheet with which to navigate the“100 year flood” scenario facing the semiconductor industry

Added four new solutions to product portfolio: V6000, Yield Learning Solution, V101, and Touchdown Technologies probe cards

These new solutions will expand our SAM by $1.3B, nearly doubling our current SAM

Increased overall RF market share to 35% in 18 months

Manufacturing transition to Jabil is on track for year end

Selected as the #1 backend company by customers – ranked #1 in 11 of 13 categories


Page 4Verigy Restricted

Page 4

Memory:NAND & NOR FlashMultiChip Package (MCP)DRAMWafer Sort / Final Test

System on Chip (SOC): System in Package (SIP) Specialty High Speed MemoryGDDR3/5 - XDR1/2 - DDR3

Our Business is Semiconductor Test

V93000 Platform

V101 PlatformLow Cost ICs:Lowest CostZero FootprintEasy to Set-up / useEasy Maintenance

Touchdown Technologies Probe CardsMemory:DRAMNAND & NOR FlashAdvanced MEMS Technology

V6000 Platform


Page 5

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

2007 2008 2009 2010 2011 2012 2013

Advance Probe Cards (TdT)

Yield Learning & DFT (DfX)

SOC 100 MHz (V101)High-Speed DRAM Test

DRAM Test (V6000 & 93K)

Flash TestSOC 200 MHz +

ATE + PC TAM

$3,554

$5,258

$2,137

$3,176

$4,254

$4,884

$5,265

ATE TAM and Verigy Served Available Markets

Source: VLSI Research (June 2009)

$2,600


Page 6

Page 6

Strategy to Accelerate Growth and Diversify

Strong existing products based on scalable platform strategy

Proactively developed new products to expand SAM in CY’10

– DRAM market - $400M additional SAM

– Low-end SOC market - $400M additional SAM

Recent acquisition of Touchdown Technologies adds advanced probe card solutions

– Advanced probe card market - $500M additional SAM in CY’10

Continue to assess diversification opportunities where appropriate

Source: VLSI Research (June 2009); SAM is for CY’10

Verigy SAM Doubles in CY’10

$1,230

$400$400

$500 $2,570

Former SAM DRAM Low-end Probe card Current SAM

$1,300

$400 $400 $500

$2,600$ in millions


Page 7

CY 2008 Market Share

Source: VLSI Research (Apr 2009)

Overall ATE Market Share

Verigy20%

Teradyne*34%

Advantest28%

LTX-Credence7%

Other11%

* Nextest and EagleTest included in Teradyne market share data

SOC ATE Market Share

Verigy21%

Teradyne*41%

Advantest20%

LTX-Credence10%

Other8%

*Nextest and EagleTest included in Teradyne market share data**Verigy market share data excludes HSM

Verigy 16%

Teradyne*11%

Advantest52%

Yokogawa17%

Other4%

*Nextest included in Teradyne market share data** Verigy market share data includes HSM

Memory ATE Market Share

V93000 Platform


Page 9Page 9

can be tested on a SCALABLE V93000 test system

V93000 Single Scalable Platform Applications Coverage

to deliver a diverse set of end products

A wide range of devices

Analog Front EndPMIC Low End STB Optical Disk Drives AudioRF Transceiver

Integrated BB+RFCellular BBHigh-End STB

High End Graphics ChipsetsHigh-End FPGA Mobile Processors

MPUsGPUs

Logic

DDR3XDRGDDR5

High Speed Memory

http://images.google.de/imgres?imgurl=http://www.chip.de/ii/89781809_a380ed64eb.jpg&imgrefurl=http://www.chip.de/bildergalerie/Overclocking-mit-dem-Core-2-Duo-Galerie_20894355.html&h=468&w=468&sz=40&hl=de&start=6&um=1&tbnid=t-E2bX-w8bcOiM:&tbnh=128&tbnw=128&prev=/images%3Fq%3Dcore%2Bduo%2Bchip%26um%3D1%26hl%3Dde%26rlz%3D1T4GZEZ_deDE257DE257

http://images.google.com/imgres?imgurl=http://www.nikon.co.jp/main/eng/portfolio/about/history/d-archives/highres/digital/slr/d2h_i.jpg&imgrefurl=http://www.nikon.co.jp/main/eng/portfolio/about/history/d-archives/camera/data3_e.htm&h=675&w=900&sz=166&hl=en&start=2&tbnid=Usd3JNpye_KHYM:&tbnh=109&tbnw=146&prev=/images%3Fq%3Ddigital%2Bslr%26svnum%3D10%26hl%3Den%26lr%3D%26sa%3DN


Page 10

Scalable Platform vs. Multiple Point Solutions

Integra FLEX Fusion CXT2000 T8571Eagle Test ETS 600/300

J750Ex

T6535A

J750

Diamond 10

Fusion MX

ASL-1000IP750 Ex

D750Ex

Eagle Test ETS 200

T5383

V6000

V101

Eagle Test ETS 88

V93000HSM HSM tester

M3670

T6577

T5781T5782

T5588

T5761

T5377

T5593

T5385 T5503

SOCUltra FLEX

7722T6373

MemoryMagnum IIMagnum

V93000


Page 11

Power of the Scalable Platform

Flexibility across applicationsMCU to Highly Integrated Baseband + RFHigh Speed Memory - DDR3 to GDDR5Flash and DRAM on the same tester

Ability for OSATs to keep systems loadedHigher Utilization -> Better ROICSystems can be used for multiple upstream customer and devices

Customers purchase upgrades instead of new systems as technology needs change

V101 Platform


Page 13

V101 Addresses the Growing Low-cost IC Market

4, 8 and 16–bitLow Pin Count

Devices

V101 is Designed to Meet Low-cost Testing Requirements


Page 14

Low Cost Devices Dominate MCU Market

0

4000

8000

12000

16000

20000

CY2006

CY2007

CY2008

CY2009

CY2010

CY2011

CY2012

CY2013

4/8/16-bit 32-bit

Low cost devices dominate global MCU market because of low prices, improving performance, and extensive application fields:

Global MCU Market

Mill

ions

of

Uni

ts

Source: IC Insights, 2009

Worldwide MCU Unit History and Forecast

32 Bit CAGR: 13.6%4/8/16 bit CAGR: 10.0%

2009-2012

0

1

2

3

4

5

2007 2008 2009 2010 2011 2012

8-bit MCU 16-bit MCU 32-bit MCU

Worldwide MCU Unit Price History and Forecast

ASP Changes(2007-2012)

32-bit MCU - 24.8%16-bit MCU - 38.4%

8-bit MCU - 24.9%

Extreme Pressure to Lower Cost of Test

for Low Cost Devices


Page 15

Highly integrated hardware with the latest technologies – Higher performance at lower cost

Increased parallel test – True 1,024 pins with DC and DPS

resources enabling more parallel tests

Optimized for MCU test – All test resources on the same board

Optimized for Wafer Sort– Integrated direct probing design

Simplified Service and Support Model– Easy installation, setup and maintenance

Shorter Program Development Time– Awarding winning easy-to-use STIL-based

software

A Platform of Choice for MCU & Low-End IC Markets

LowersCOT

LowersCOT

LowersCOT

LowersCOT

LowersCOO

Speeds TTM

V101: Designed to reduce cost of test by up to 50%

V6000 Platform


Page 17

Test Flash, DRAM and MCP At the Price of a Flash Tester!

V6000eEngineering

V6000 WSWafer Sort

V6000 FT Final Test

Redefining Memory Test V6000 Series


Page 18

Extended Useful Life With 6th Generation of Tester-Per-Site Architecture

COMPATIBLE Site Module Hardware

• Test Site Controller

• APG (Algorithmic Pattern Generator)

• ECR (Error Capture RAM)

• Pin Electronics

• NEW Active Matrix Technology

COMPATIBLE Software

• Station PC OS: Windows

• System Software

• C Program/APG Language

• Leverage test programs into production

COMPATIBLE Probe Cards

• V6000 WS probe cards are compatible as you upgrade performance and parallelism

Engineering Scalable Architecture Production

V6000eEngineering

V6000 WSWafer Sort

V6000 FT Final Test

Up to 880 MbpsUp to 18K PinsUp to 4K PPS

MCPs

Full pin count NAND & NOR

DRAM

Reducedpin countNAND & NOR

SRAM

The RIGHT Architecture


Page 19

Delivering a Compelling Memory Test Solution V6000 Key Differentiators and Value to Customers

Device Flexibility– Tests NOR & NAND Flash, DRAM, and SRAM– Serves all test strategies/modes, including performance specification test,

design for test, and even BIST

Configuration Flexibility– Optimizes to customer needs (channels, power

supplies, data rates, Redundancy Analysis)– Configures to over 18,000 channels at 880

Mbps and 4,000 device power supplies– Configures for Engineering, Wafer Sort, and

Final Test– Extends platform life with upgradeability and

future growth path

Low Cost of Ownership– Delivers lowest cost per test channel/DPS (< $200 per channel)– Enables lowest cost of ownership (power consumption, factory floor space,

consumables (wafer sort probe cards and final test load boards)


Page 20


Page 21

History of Touchdown Technologies

Focused since early 2003 on leveraging MEMS knowledge to create a next- generation probe card company.

Production shipments since 2006, and have production cards in US, Taiwan, Japan, and Singapore

Focused on world class design and manufacturing of advanced MEMS-based probe cards for testing semiconductors.

Initial focus is on memory (NOR, DRAM and NAND), a $500M market in 2010 and $800M in 2013

Sales

Sal

es

Sales


Page 22

Advanced MEMS Manufacturing Facility

Located in Southern California

Houses MEMs fabrication, assembly & test clean-rooms, sales, engineering and administration

Approximately $100M+ already invested in Touchdown technology development and infrastructure prior to Verigy acquisition


Page 23

Delivering a Compelling Technology Advantage

Unique 3D MEMS Probe Architecture

Torsional-based probe provides superior mechanical properties than cantilever

Enables higher probe counts and increased density

Allows individual probe replacement

ACCUTORQTM Probe

Td300 Probe Card300mm Full Wafer Architecture MEMS fab tooled for full 300mm substrate processing Single (monolithic) MEMS probe head

– Accurate scrub mark position– Improved thermal performance (Z position & stability

time)

– Tip placement accuracy of <+/-10 µm across 300mm

Lower cost architecture than competition (multi-tiled substrates)


Page 24

Verigy and Touchdown Technologies Synergies

Both Companies…

Share the same customer base

Focus on lowering the cost of test

Extend their leadership position in memory test at wafer probe

Nurture culture of innovation and technology leadership

Touchdown expands Verigy’s SAM by $500M in CY’10

Achievements in Q4’09 – the first full quarter as “a Verigy company”

Received multiple orders for memory probe cards, including full wafer, single touchdown probe cards

300mm Flash probe card is in qualification at a major customer

300mm DRAM probe card is being built for another customer

Financial Highlights



Page 26

Q4’09: Better-than-Expected

Fourth Quarter Revenue of $97M and Net Loss of ($0.20) Per Share

– Sequential revenue increase of 11% and within the guidance range provided– Non-GAAP net loss was ($0.12) compared to ($0.24) last quarter

Third Consecutive Quarter of Bookings Growth– Orders were $109 million compared to $93 million last quarter– Book-to-bill of 1.12

Positive Signs in SOC and Memory Markets– No seasonality– Utilization rate climbed to 90%– Largest order quarter ever for Port Scale RF– Multiple system orders for SOC, HSM, Flash/DRAM, and probe cards

Operating Leverage Improved– Cost base reduced by over $120 million– Approximately two-thirds derived by permanent reductions



Page 27

P&L Highlights

Q4’09 FY’09 Q3’09 Q4’08 FY’08

Orders $109M $323M $93M $82M $603M

Revenue $97M $323M $87M $150M $691M

Book-to-Bill 1.12 1.00 1.07 0.55 0.87

Gross Margin % 43% 33% 40% 36% 44%

Gross Margin % (non-GAAP) 46% 36% 42% 46% 47%

Op Margin % (10%) (34%) (23%) (7%) 7%

Op Margin % (non-GAAP) (7%) (27%) (15%) 3% 9%

EPS ($0.20) ($2.17) ($0.36) ($0.60) $0.47

EPS (non-GAAP) ($0.12) ($1.49) ($0.24) $0.14 $1.19


Page 28

Q4’09 Q3’09 Q4’08

Cash & Marketable Securities $439M $442M $411M

Accounts Receivable $54M $35M $74M

DSO 50 days 36 days 44 days

Inventory $55M $64M $78M

Inventory Days 92 days 117 days 92 days

Total Assets $711M $705M $734M

Cap Ex $3M $2M $4M

Depreciation $4M $8M* $4M

Balance Sheet Highlights

* Includes $4M for Touchdown Technologies IP R&D


Page 29

27

114

29

34

118

40

33

118

63

38

92

72

37

49

79

36

69

78

36

92

76

37

123

49

37

121

42

40

116

6

41

129

9

42

101

7

35

249

29

38

4

29

54

4

29

63

5

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Page 29

Quarterly Revenue by Business

FY’06 FY’07

$170

$192

$214$202

$165

$183

$204 $209$200

FY’08

$162

$179

$150

$68

FY’09

$71

Memory

SOC

S&S

$87$97


Page 30

Page 30

Documents

Verigy … a Premier Semiconductor Test Companyfiles.shareholder.com/downloads/VRGY/0x0x337580/18224457...Verigy … a Premier Semiconductor Test Company Barclays Global Technology