STEC, Inc.: SWOT Analysis & Company Profile

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					STEC, Inc.

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STEC, Inc.: SWOT Analysis & Company
Profile


Reference code: BRTC281CP10-Q4

Published: Nov 2010




Business Review
John Carpenter House
7 Carmelite Street
London EC4Y 0BS
United Kingdom
Tel: +44 (0) 20 7936 6400
Fax: +44 (0) 20 7336 6813



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STEC, Inc. - SWOT Profile                                                           Page 1
STEC, Inc.

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STEC, Inc. - Company Overview

STEC, Inc. (STEC) is a one of the leading manufacturers and distributors of memory solutions based on Flash memory
and Dynamic Random Access Memory (DRAM) technologies. The company is involved in development of Flash solid-
state drives (SSDs) and memory cards used in highly-volatile environments and high-density DRAM modules. It offers a
comprehensive product line used by original equipment manufacturers (OEMs). STEC also provides both monolithic
DRAM modules and DRAM modules based on stacking technology. It provides storage products, which are used in
enterprise applications, networking and communications and other OEM applications. The company principally operates
in Austria, China, Germany, Hong Kong, Italy, Japan, Malaysia, Taiwan and the UK. STEC is headquartered in Santa Ana
(California), the US.


Financial Performance

The company reported revenues of (U.S. Dollars) USD 354.18 million during the fiscal year ended December 2009, an
increase of 55.72% over 2008. The operating profit of the company was USD 89.16 million during the fiscal year 2009, an
increase of 1,525.58% over 2008. The net profit of the company was USD 72.61 million during the fiscal year 2009, an
increase of 1,591.82% over 2008.




STEC, Inc. - Key Facts

STEC, Inc., Key Facts

                                  3001 Daimler Street, Santa Ana,
                                  California (CA), 92705, United    Ticker Symbol, Stock
Corporate Address:                                                                             STEC (NASDAQ)
                                                                    Exchange
                                  States


Telephone                         + 1 949 4761180                   No. of Employees           767



Fax                               + 1 949 4761209                   Financial Year End         December



URL                               www.stec-inc.com                  Revenue (in USD Million)   354.18


                                  Technology and
Industry
                                  Communications


Locations                         China, Japan, Malaysia, Taiwan, Austria, United States

Source: Annual Report, Company Website, Primary and Secondary Research




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STEC, Inc. - SWOT Profile                                                                                      Page 2
STEC, Inc.

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STEC, Inc. - Business Description

STEC, Inc. (STEC) designs, develops, manufactures and markets custom memory solutions based on Flash Memory and
Dynamic Random Access Memory (DRAM) technologies for electronic and controls industry. It is specialized in
developing high-speed, high-capacity solid-state flash drives and memory cards used in sensitive and highly-volatile
environments and high-density DRAM modules. The major areas of OEM flash-based product investment are focused on
Solid State Devices (SSD) technology. Its offerings find their applications in financial services, government, defense and
aerospace, transportation, and transaction processing. As of December 31, 2009, the company employed 767 people.

The company operates in one reportable segment. The memory market of the industry is divided into several types of
integrated circuit (IC) devices. The two major types of memory products are SSD Flash and DRAM. Flash is considered
as non-volatile memory since it is able to retain data without a power source and DRAM requires a constant power supply
to retain data. It is considered volatile memory. The company invested in the design and development of customized OEM
Flash controllers, firmware and hardware and OEM Flash product.

The SSD products offered by the company include ZeusIOPS Solid State Drive, Zeus Solid State Family, MACH8IOPS,
MACH8, ATA PC Cards, Compact Flash Memory, Flash Modules, Secure Digital Memory Cards, MMCPlus Memory
Cards, USB Flash Drive and Single Chip Drive (SCD). These products are used in a wide range of applications. STEC’s
MACH8IOPS Solid State Drives have small form factor, high throughput storage solution for mission-critical systems in
variety of industries. STEC’s MACH8 Solid State Drives have small form factor, high throughput and storage solution.

The DRAM products include dual in-line memory modules (DIMMs), small-outline DIMMS (SODIMMs), mini-registered
DIMMs (mini-RDIMMs), very low profile (VLP RDIMMs) and Fully-Buffered DIMMs (FB-DIMMs). The company also offers
different DRAM architectures including FB-DIMM, DDR, DDR2, DDR3 and SDRAM.

The company’s R&D activities include test software development in the form of proprietary tools and utilities that are
closely integrated with the SSD controller development, as well as innovative approaches to the manufacturing test
processes required to deliver STEC’s SSDs, Flash and DRAM products. The company spent USD 27.5 million towards its
research and development (R&D) activities during the fiscal year 2009. As of January 28, 2010, the company owned 20
patents and had 60 additional pending patent applications.

The company has classified its geographic operations in three segments, namely, United States, Malaysia and Other.
During the fiscal year 2009, the United States region generated 55.3% of the company’s total revenue, followed by
Malaysia (42.1%), and Others (2.6%).

In July 2010, the company entered into a partnership with Greater China-based Infortrend to offer Solid State Drive-
Enabled San Storage Solutions. In March 2010, the company launched SSDs for the embedded markets.




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STEC, Inc. - SWOT Profile                                                                                        Page 3
STEC, Inc.

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STEC, Inc. - Major Products and Services

STEC, Inc. (STEC) is manufacturer and distributor of memory solutions based on Flash memory and Dynamic Random
Access Memory (DRAM) technologies. The key products and services of the company include the following:

STEC, Inc., Major Products and Services
Products:

ZeusIOPS SSD

MACH8IOPS SSD

MACH8 SSD

MACH4 SSD

Ultra Mobile SSD (PCI Express)

Slim SATA Embedded SSD

CFast Embedded SSD

MACH4 CompactFlash

CompactFlash (CF) Card

USB Flash Module (UFM)

USB Flash Drive (UFD)

DRAM
Source: Annual Report, Company Website, Primary and Secondary Research




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STEC, Inc. - SWOT Profile                                                                                Page 4
STEC, Inc.

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STEC, Inc. - History

STEC, Inc., History

    Year                Event type                                                    Description


                                                The company integrated enterprise-class ZeusIOPS solid-state drives (SSDs) into the
   2009      New Products/Services              HP Storage Works Enterprise Virtual Array (EVA) disk array platform, for creating
                                                optimized storage systems to deliver the advantages of storage virtualization.


                                                STEC collaborated with LSI Corporation to add enterprise Solid-State Drive
   2009      Contracts/Agreements
                                                Technology to Flagship Engenio 7900 Storage System.


                                                STEC launched industry's first class 6Gb Serial Attached SCSI (SAS) Solid State Drive
   2009      New Products/Services
                                                (SSD).


   2009      New Products/Services              STEC launched Enterprise Class 4Gb Fibre Channel (FC) Solid State Drive (SSD).


                                                STEC delivered first MLC-based Enterprise-Class Solid State Drives (SSDs), enabling
   2009      New Products/Services
                                                broader Enterprise SSD market adoption.


                                                The company formed partnership with EMC Corporation ,the world leader in
   2008      Contracts/Agreements               information infrastructure solutions,for deployment in its Symmetrix DMX-4 high-end
                                                networked storage systems.


   2007      Corporate Changes/Expansions SimpleTech’s OEM division changesd its name to STEC.


   2006      Acquisitions/Mergers/Takeovers STEC, Inc. acquires Gnutek (Solid State Drive company).


                                                STEC, Inc. acquired MemTech a Solid State Drive company and ICSI controller design
   2005      Acquisitions/Mergers/Takeovers
     
				
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