IKANOS COMMUNICATIONS, INC. - FORM 8-K - EX-99.1 - SLIDE PRESENTATION

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8-K - CURRENT REPORT ON FORM 8-K - IKANOS COMMUNICATIONS, INC.	d420410d8k.htm

Ikanos Communications, Inc.

A Growth Opportunity

October 4, 2012

Exhibit 99.1

Safe Harbor Statement

This presentation contains, in addition to historical information, forward-looking statements. Such

forward-looking statements are based on management’s current expectations, estimates and projections

about our industry and business, including but not limited to the expected growth of and opportunities in

the broadband market, the company’s position in the market, any statements about historical results that

may suggest trends for our business, any statements of the plans, strategies, and objectives of

management for future operations or products, any statements of expectation or belief regarding the

performance of our technology or products, customer demand and future technology developments, any

statements of assumptions underlying any of the foregoing, management's beliefs, and certain

assumptions, all of which are subject to change. Forward-looking statements can often be identified by

words such as "anticipates," "expects," "intends," "plans," "predicts," "believes," "seeks," "estimates,"

"may," "will," "should," "would," "could," "potential," "continue," "ongoing," similar expressions, and

variations or negatives of these words. These forward-looking statements are not guarantees of future

results and are subject to risks, uncertainties and assumptions that could cause our actual results to differ

materially and adversely from those expressed in any forward-looking statement. For a further discussion

the

risks

and

uncertainties,

which

could

cause

actual

results

differ

from

those

contained

the

forward-looking statements, see the Company’s periodic filings on Forms 10-K and 10-Q, as well as other

reports the Company files from time-to-time with the Securities and Exchange Commission. For the most

current detailed risk factors, please review our Form 10-Q for the period ended July 1, 2012. The

Company cannot assure that the events and circumstances reflected in any forward-looking statements

will be achieved or occur, nor does the Company undertake any obligation to update any forward-looking

or other statements for any reason after the date of this presentation.

Ikanos

Communications,

Inc.

All

rights

reserved.

Ikanos™,

NodeScale™

are

among

the

trademarks

owned by Ikanos Communications, Inc. Any other trademarks or trade names mentioned are the property

of the respective owners.

•

Focused

Broadband

DSL

–

End-to-End

Solution

•

Leadership Technology & IPR

•

Global Footprint -

400M Ports Shipped

•

Strong Balance Sheet

•

Strong

Market

Need

–

Bandwidth

to/from

Home

Ikanos Communications, Inc. (Nasdaq: IKAN)

Omid

Tahernia,

CEO

and

President

Tilera, Xilinx, Motorola (Equip. and Semi)

Dennis

Bencala,

CFO

Renewable Energy Test Center, SiRF, ScanVision

Debajyoti

Pal,

CTO

GlobespanVirata, Excess Bandwidth, Amati

Syrus

Ziai,

Engineering

Qspeed, Collinear, HP

Michael

Kelly,

Sales/Marketing

SiRF, Alliance Semi, NEC

Jim

Murphy,

SiRF, LSI Logic, National

Bob

Dunnigan,

Operations

Cypress, Sigmatel, Motorola Semi

Dado

Banatao,

Chairman

Tallwood, Managing Partner

George Pavlov

Tallwood, General Partner

Danial Faizullabhoy

Former BroadLogic CEO

Frederick Lax

Former CEO of Tekelec

Douglas Norby

CFO to multiple technology companies

James Smaha

Former EVP/GM of National Semi

Omid Tahernia

CEO and President

Board of Directors And New Management Team

Ikanos Broadband Access Solutions

FTTx

Ikanos Solutions for

Broadband over Copper

enable high speed access to

the Digital Home

Ikanos delivers end-to-end Broadband Access solutions

Fiber

Copper

Photos

and

Docs

Online

Games

Services

Music

and

Media

Library

Storage &

Backup

Video

Streams

Ikanos Gateway for

Digital Home

•

Entryway for triple-play content

Ikanos xDSL Worldwide Footprint

400M Ports shipped

Vectored VDSL enables significant upgrade opportunities

for Copper Networks

Ikanos enabling major IPTV Deployments worldwide

Taiwan

ODMs

Central

Office

•

$2,500 / household

•

5+ years to deploy

•

$250 / household

•

Deployment over

existing infrastructure

Source: BusinessWeek article on FTTH in USA and

OECD presentation a major US carrier on FTTN

Fiber

Copper

Ikanos Innovative Technology Delivers

The speed of fiber at 1/10

the cost!

Node

Fiber to the

Neighborhood +

Copper to the Home

Fiber to the Home

Ikanos NodeScale™

Vectoring will deliver

200 Mbps Data

over Copper

Drivers for High Rate Broadband Access

•

Carriers searching for new revenue streams, higher ARPU and lower

CAPEX

•

Subscribers demanding higher speed Internet access, more video

content and higher video resolution

•

New services and applications

•

Cloud services creating a need for higher upstream data rates

•

Carriers experiencing competition from alternative broadband

providers

200Mbps (Bonded VDSL2)

(>2013; e.g. Vectored VDSL, Bonding)

New Services and Applications

Net DVR

12-18 Mbps

(3-4 streams)

Service providers now architecting for

multi-play services and require

>100Mbps

Voice

Data

Online

Gaming

HD IPTV

Music

1-2 Mbps

6-9 Mbps

.5 Mbps

5-7 Mbps

1-2 Mbps

Online HD

Gaming

4-6 Mbps

.5 Mbps

Tele-

medicine

8-10 Mbps

Security

6 Mbps

Home

Automation

2 Mbps

3D IPTV

9-12 Mbps

Video Conf.

3-5 Mbps

VoIP

.5 Mbps

Music

1-2 Mbps

Music

1-2 Mbps

.5 Mbps

2 –

10 Mbps

(<2005; e.g. ADSL)

11 –

20 Mbps

(Current; e.g. VDSL)

Streaming

(OTT), Data

10-15 Mbps

HD IPTV

6-9 Mbps

Voice

Carrier Landscape for Broadband Access

•

Designed for TV

•

Can provide low rate

Internet access

•

Designed for Voice

•

4G enables high data

rates, but constrained

backhaul capacity

•

Limited in access and

sustained bandwidth

•

Designed for POTS

•

VDSL enables very high

data rates

•

Extensive embedded base

of copper cables in

developed countries

•

Designed for TV

•

DOCSIS 3.0 enables high

data rates

•

North American centric

•

Upstream challenged

Telcos:

Satellite:

Mobile:

Cable:

Telco Opportunity

•

Telcos (i.e., ADSL, FTTx and

FTTH) have majority share in

broadband lines

>77% Total

•

Deployed copper is Telco’s major

asset

•

Vectored VDSL2 will provide a

significant opportunity to deliver

broadband over copper to meet

customer demands

Source: Point Topic Global Broadband Statistics Q1 2012

60%

14%

19%

Broadband

Line

Market

2012

DSL

FTTx (Incl. VDSL, FTTx+Lan etc)

FTTH

Cable

Satellite/mobile

Other

DSL Tsunami

Full article can be found at:

http://fastnetnews.com/dslprime/42-d/4845-dsl-tsunami-rolling-over-europe-first-look

Germany (20M lines)

switching to Vectored

VDSL from Pure Fiber

Majority EU operators

moving to Vectored VDSL

Excerpts taken from DSL Prime Sept 2012 article..

Ikanos Market Opportunity

Existing copper line creates an opportunity for upgrade at both ends -

Vector processors at the Node and Gateway processors at Home

Total

Opportunity

One Billion

Copper Lines

Source: Projections based on Ikanos analysis of over 50 Incumbent Carrier copper line data

Carrier copper lines data from Dataxis Q2 2012 world wide statistics

Note: Total opportunity includes all

Broadband technologies over copper

~$800M

~$1.5B

~$1.8B

Ikanos Delivers End-to-End

Broadband Access Solutions

Ikanos NodeScale™

Vectoring Processor

Ikanos Vectored

VDSL2 Transceivers

Ikanos Gateway

G.Vector-Compliant

Communications

Processors

Ikanos NodeScale Vectoring Solution

Typical System Content for NodeScale Vectoring

192p System shown

16 port DSP

8Port

AFE

8Port

AFE

16 Lines (to CPE)

To Backplane

(Controller Card and Vector Card)

16 port

slice

16 port

slice

16 port

slice

4x 48-port line cards

Chassis/ Backplane

>75% of

Silicon content

on the line card

>95% of

Silicon content

on the vector card

Vector Card

Separate Vectoring Card

Or Controller Card

96 port

Vector

Processor

Vector

Processor

Ikanos is Well-Positioned within the Home

•

Ikanos is a major supplier of

broadband access gateway

processors for the home

•

Media Agnostic Gateway

•

Ikanos is well positioned to

address the evolution of the

digital home, leveraging:

•

Core competencies

•

Strong partnerships

•

Embedded base of legacy CPE

Digital Home

Residential

Gateway

Wired

Data

Video

Wireless

Data

Voice

Ikanos Operating Focus

and Financials

A Growth Opportunity

Ikanos Operating Focus

Near-term

Product Execution

Go-to-Market

Design-win Pipeline and Ramp

Mid-term

Go-to-Market

Profitability

New Product Roadmap

Longer-term

Technology Leadership

Expanding TAM

Sustainable Execution

Q3 2011

Actual

Q4 2011

Actual

Q1 2012

Actual

Q2 2012

Actual

Revenue

$35M

$31M

$32M

Gross Profit

$18M

$20M

$16M

$15M

OPEX

$20M

$18M

$20M

$17M

Net Income (Loss)

$(2)M

$1M

$(4)M

$(3)M

EPS (Loss)

$(0.03)

$0.01

$(0.05)

$(0.04)

Shares Outstanding

69M

70M

Income Statement Trends –

Non GAAP

Actual Quarterly Revenue versus Guidance ($M)

Accurate, Consistent Results

Q3 Revenue

Guidance of

$30 -

$32M

$35.4

$30.8

$32.1

Q3 2011

Q4 2011

Q1 2012

Q2 2012

Q3 2012

Actual Revenue

Low Guidance

High Guidance

Quarterly R&D & SG&A Spending vs. Revenue ($M)

Long-term Commitment to R&D and Customers

$13.6

$12.7

$13.4

$12.5

$17.4

$5.2

$4.7

$4.4

$4.6

Rev $M

$5.0

$10.0

$15.0

$20.0

$25.0

$30.0

$35.0

$40.0

Q3 2011

Q4 2011

Q1 2012

Q2 2012

Q3 2012 Guidance

R&D $

SG&A $

Rev $

Q3 2011

Actual

Q4 2011

Actual

Q1 2012

Actual

Q2 2012

Actual

Cash and Investments

$36M

$35M

$40M

$33M

Accounts Receivable

$16M

$18M

$17M

$21M

Inventory

$13M

$9M

$8M

$7M

Total Assets

$81M

$78M

$79M

Long-term Debt

Total Liabilities

$22M

$17M

$20M

$23M

Resources and Positioning For Growth

Strong

Balance

Sheet

–

Zero

Long

Term

Debt

•

Focused on right growth market

•

Unique Technology and Products

•

Rich in IPR: 300+ Patents and Patent Applications

•

Strong Balance Sheet

•

Positioned for Growth

Summary

Thank you!

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