Morse Micro

Executive Summary

Morse Micro is a company based in Sydney that designs computer chips but does not own its own factories. They specialize in a technology called Wi-Fi HaLow which allows internet-connected devices to stay linked across distances ten times further than normal wireless signals. The company currently brings in $80 million in total sales but reports a $30 million loss after all expenses are paid. This loss happens because they are spending a lot of money to grow into new markets and invent new products. They have received $200 million in total investment from venture capital firms, which includes a large $140 million Series B funding round. Morse Micro stays ahead of rivals because they own many patents and helped decide the rules for how this specific type of wireless technology works. Major risks to their business operations include the high rate at which they spend their remaining cash and the fact that they must rely on a giant manufacturer called TSMC to actually print their silicon chips. While the company is the first major player in this area, their future depends on whether the world chooses to use their specific wireless system over other older and more common options. A potential initial public offering would give regular investors a chance to buy into a fast-growing business that provides the basic hardware needed for the global network of smart devices.