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iSTART-TEK Is Launching Global Layout, Using the Advantage of Business Model to Optimize the Operation

By May 12, 2021November 16th, 2021No Comments

“With the increasing usage amounts of memory in the market and the fast variation of products, the need of iSTART EDA tools for corporations is gradually rising.”

iSTART-TEK (iSTART, TW: 6786) is the only leading developer in memory testing and repairing technology in Asia. In addition to START™ v2, memory testing and repairing EDA tool, used by many local and world-widely well-known companies, iSTART also provides customized Intellectual Property (IP) via strong research and development capability and the team of technical support, accelerating the time to market and various memory testing and repairing solution. With the increasing usage amounts of memory in the market and the fast variation of products, the need of iSTART EDA tools for corporations is gradually rising.

2020 yearly revenue of iSTART-TEK (6786) is increasing 258.19%. For this, iSTART claims that, company business model can be differentiated into three categories, “Project”, “Token” and “License.” According to customers’requirements, they can choose different modes. Such a flexible business models can widen customers’ coverage, consolidate the connection, and speed up the revenue growth at the same time.

iSTART-TEK further mentions, if customers choose “Project” mode, they can only purchase iSTART-TEK customized memory test and repair IP. In other words, customers can only use the customized memory test and repair IP on the single chip development. For customers with few product items, this is an economical option.

As for “Token” mode, customers can purchase multiple items once. Within the limit of one year, they can use the customized memory testing and repairing IP on the multiple chip developments. Take the authorization of five-time usage within three years, customers can use iSTART customized memory testing and repairing IP on five chip developments within three years. Though, if the right of usage is not completed within three years, customers can’t use it in the fourth year. For both of “Project” and “Token”modes, the corporation has to pay iSTART-TEK license fee and loyalty fee.

In addition, “License” mode can be differentiated into “Multi-Year” (unlimited usages within three year) and “Perpetual” (unlimited usages without the annual restrictions). Corporations need to pay iSTART-TEK EDA tool license fee and the annual maintenance fee. For the corporations with the diverse product developments and therefore the pervasive need of iSTART EDA tools, this mode is good value for money and highly accepted by many famous corporations.

Put it simply, iSTART-TEK’s business model is just like Microsoft selling Office OS. Consumers can choose monthly pay, annual fee or one-time buyout. Through this business model, the iSTART-TEK can have much flexible sales and recognized by Corporations. After using iSTART product, the customers are just like MS Office users at the desk. They have to pay developer, iSTART-TEK the system maintenance fee. The probability to stop using the tool is quite low.

Many institution investors often ask, “Why can iSTART-TEK’s monthly revenue go up an down in such a contrast? Is there the hidden risk at a certain level?” To reply for this, iSTART asserts that this is mainly because the monthly revenue recognition is based on the customers’ project credits in percentage. Therefore, at the stage of promotion, the monthly revenue will be up and down due to the different purchasing budget plan, signing time and payment terms. Though, in the perspective of the whole year, the growing trend in sales year by year.

In the prospect of future, besides the market in Taiwan, iSTART is also proactively layouting global market. So far, the distributor in Israel has signed. Other distributors in the US, the UK, Japan, Korea, Europe and etc are negotiated. The legal person claims that iSTART-TEK is collaborating with IC design service companies and memory IP providers, accumulating EDA tool implement experience. With the boost of reputation and customer satisfaction, customer volume and sales are surging currently and the revenue is expected to upgrade and develop at the steady pace.