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STEC, Inc. (Nasdaq:STEC) 2008
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2 Company Highlights ●Leading provider of customized Flash memory and DRAM solutions ●Proprietary technologies focused on the burgeoning SSD markets Headquarters Orange County, CA Total Employees 665 NASDAQ Ticker STEC IPO Date September 2000 Date Founded 1990
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3 Global Scale US Headquarters Malaysia Campus Europe Offices Taiwan Office Japan Office Hong Kong /China Offices
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4 Expertise Across the Full Range of SSD / Flash Competencies Flash Controller Data Integrity, High Density, High Performance Flash Management Wear leveling, SLC/MLC support Storage System Dev High density, high reliability Manufacturing Test, Temp screening Field Support Uniquely positioned to add value across the full range of competencies
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5 CONFIDENTIAL Comprehensive Flash Product Portfolio 2.5” FLD Compact Flash ATA PC Cards Flash Disk Module IDE Single Chip Drive Secure DigitalMMCplus USB Flash Drive USB Flash Disk Module USB SCD miniSD 1.8” SSD2.5” SSD 3.5” SSD Zeus IOPS PATA / SATA / SAS / Fibre Channel PATA / SATA / SAS / Fibre Channel ATA / IDE SD / MMC / SPI USB SDHC 5 Customers need the right mix of interface and form factor
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6 Kiosk / Gaming Wide Range of OEM Flash Applications DSLAM Router Switch Voicemail System Telco GPS System Barcode Reader Mobile phones Handheld Electronics Notebooks PC Computing Mission Data Recorder Field-wearable Computer Defense Robot Control Factory Automation Data Recorder In-flight Entertainment Avionics Defibrillator Medical Voting Machine Video Poker Machine Gaming Devices/Consoles Enterprise Servers Enterprise Storage Routers Switches VOD and Media Servers Networking & Enterprise
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7 Capitalizing On the HDD-Replacement Trend in 3 Distinct Markets Enterprise Storage Enterprise Servers Database storage Video on Demand Processor and bandwidth capabilities outstrip storage Current infrastructure cannot scale to meet customer demands Enterprise Computing Notebook PC Telecom / Industrial Notebook PC Portable computing applications Long boot times and application loading times Short battery life Comm. equipment Medical equipment Casino gaming machines HDD failure results in loss of OS and system performance information Long product life cycles exceed duration of HDD Specific applications: Technological Challenge: Zeus IOPS SSD, MACH8 IOPS SSD MACH8 MLC SSD Industrial-grade CF, PC card and single chip drive STEC Solution: Common Thread: High Reliability Access times Ultra-high throughput HDD-replacement Cost effectiveness Performance enhancing Low-capacity, Small form factor Key specifications:
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Zeus IOPS for the Enterprise Storage Market
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9 ZEUS IOPS SSD Product Details Capacity –3.5-inch: 18 to 300 GB Interfaces –Fibre Channel, SATA Sustained Throughput –Read = 240 MB/s –Write = 115 MB/s Random Operations –Read = 52,000 IOps –Write = 17,000 IOps Applications –Enterprise-class storage systems, online transaction processing, video-on-demand, web serving/data caching, metadata logging, telecommunications, data mining/warehousing Highlights –200 times faster than enterprise-class HDDs –Significantly reduces customers T.C.O.
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MACH8 IOPS for the Enterprise Server Market
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11 MACH8 IOPS SSD Product Details Capacity –2.5-inch: 16 to 128 GB –1.8-inch: 8 to 64 GB Interfaces –SATA, PATA Sustained Throughput –Read = 100 MB/s –Write = 100 MB/s Random Operations –Read = 10,000 IOps –Write = 800 IOps Applications –Enterprise-class servers and storage systems
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12 MACH8 IOPS Provides a Compelling Value Proposition in the Enterprise Computing Environment Needs of Enterprise ApplicationsMACH8 IOPS Benefits Exceptional write IOps 10x improvement in write IO performance relative to HDDs Exceptional read IOps 40x improvement in write IO performance relative to HDDs High sustained throughput Sustained read/write throughput of 100/100 MB/s Data protection Total drive wear leveling, full data path protection, and the most robust ECC protection available in an SSD today SecurityNative hardware encryption
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MACH8 MLC for the Notebook Market
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14 MACH8 MLC SSD Product Details Capacity –2.5-inch: 64 to 512 GB –1.8-inch: 32 to 128 GB Interfaces –SATA, PATA Sustained Throughput –Read = 90 MB/s –Write = 60 MB/s Applications –Notebooks –Other portable computing applications
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15 MACH8 MLC is a High-Capacity, Cost-Effective HDD Replacement for Notebook PCs Needs of Notebook PCsMACH8 MLC Benefits Cost effective storage Dramatically improved cost/MB over SLC Faster boot timesReduces boot time compared to HDD Faster application loading times Reduces application loading times compared to HDD Longer battery lifeConsumes less power than HDD Portability Small form factor, low weight and zero noise Data protection Total drive wear leveling and full data path protection Reliability The most robust ECC protection available in a SSD Drive today Reduced heatProduces less heat compared to HDD
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16 The Growth of the Notebook Market is Compelling Overall PC Portable PCs CAGR 23%CAGR 10% Source: IDC, October 2007 PC market is experiencing robust growth, particularly in the portable segment –According to DisplaySearch, notebook sales rose 41% in 2007 Key drivers of portable PC growth include: –Falling prices –Narrowing the performance gap compared to desktops –Improving wireless connectivity –Expanded access through retail channels Size of the portable segment increased 2X from 2004 to 2007 and is expected to double again by 2011 (and is expected to represent >50% of all PCs) Units in thousands
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R&D Overview
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18 # of Engineers R&D Spend Patents (Pending and Issued) New Design Wins R&D Investment Indicators
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Malaysia Operation
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20 STEC Malaysia: Foundation for Growth
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21 210,000 ft 2 of Operating Capacity Production Area Admin and R&D Offices Production Area Warehouse
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