Business
. Fabless semiconductor company that designs, markets and sells mixed signal
integrated circuits for multiple video applications in the consumer, security surveillance
and automotive markets.
. Targets video applications based on digital technologies that receive and process
analog video signals.
. Video applications include advanced TVs, multifunction LCD monitors, DVD recorders,
camcorders, security surveillance systems and in-car displays. These applications
receive analog video signals commonly generated by over-the-air TV broadcasts, by
consumer electronics devices such as set-top boxes, DVD players, VCRs and
camcorders and by surveillance cameras.
Market growth
. Video applications based on digital technology are experiencing rapid growth driven by
significant improvements in the user experience, including enhanced video quality,
increased functionality and reduced form factors.
. For example, according to DisplaySearch, the advanced TV market is expected to grow
from 13.2 million units in 2004 to 101.8 million units in 2009, representing a compound
annual growth rate of 50%.
. In addition, according to J.P. Freeman, the market for recorders, servers and
multiplexers used in security surveillance systems that can incorporate TWLL mixed
signal video semiconductors is expected to grow from $2.5 billion in 2004 to $6.0 billion in
2009, representing a compound annual growth rate of 19%.
. According to Telematics Research Group, shipments of navigation, entertainment and
driver information systems are expected to grow from a combined 16.5 million units in
2004 to a combined 47.2 million units in 2009, representing a compound annual growth
rate of 23%. These systems are causing the proliferation of in-car LCD displays in the
automotive market.
TWLL semiconductors based on proprietary architecture
TWLL semiconductors are based on a proprietary architecture and mixed signal
technologies that TWLL believes provides high video quality under a wide range of signal
conditions, enable high levels of integration and are cost effective.
Customers
. Mixed signal semiconductors are used by over 95 companies, including IC Land,
Lacewood and Samsung, which represented 10%, 10% and 9%, respectively, of
revenues for the year ended December 31, 2005.
. Began shipping semiconductors in 1999, and to date, has sold over 15 million
semiconductors.
Competition
Philips Electronics N.V., Micronas Semiconductor Holding AG and Texas Instruments
Incorporated.
Use of $25.3mm in IPO proceeds from sale 2.45mm shares
(shareholders intend to offer 3mm shares)
. General corporate purposes, including working capital and capital expenditures, to
create a public market for common stock, facilitate future access to the public capital
markets and increase visibility in TWLL markets
. TWLL believes the offering should be adequate to enable it to execute on its business
plan for at least the next 18 to 24 months.