Power Integrations, Inc. Nasdaq: POWI. February 2016

Transcription

1 Power Integrations, Inc. Nasdaq: POWI February 2016

2 Forward-Looking Statements/Non-GAAP Metrics These slides accompany an oral presentation by Power Integrations, Inc., which contains forward-looking statements. Each statement relating to events that will or may occur in the future is a forward-looking statement. The Company s actual results may differ materially from those suggested in the presentation. Information concerning factors that could cause such a difference is contained in the Company s most recent reports on Form 10-K and 10-Q. This presentation may also contain certain non-gaap financial information. Reconciliations of non-gaap financial metrics to GAAP results are available at the end of this presentation and/or on the investor page of the Power Integrations website, (see Historical Financials data file) Power Integrations 2

3 Secular Growth Story in Analog Semis Leader in energy-efficient high-voltage power conversion Clean-tech enabler: LED lighting, efficient appliances, DC motor drives, renewable energy, electric transportation Expanding market opportunity with higher-power products, rapid-charging for mobile devices 2016 Power Integrations 3

4 Comprehensive Expertise in High-Voltage Systems & Applications Know-How High-Voltage Semiconductor Technology Ultra-simple power converters Fewer components Shorter design cycles Easier to manufacture Higher reliability BOM cost similar to discrete designs Highly energy-efficient 2016 Power Integrations 4

5 Highly Integrated Power Converters Replacing Legacy Technologies Discrete power supply: 70 components Equivalent power supply with POWI: 36 components, smaller board Linear transformer: weighs 12 oz. Adapter with POWI: weighs 2 oz Power Integrations 5

6 Relentless Innovation U.S. Patents at 12/31/2015 U.S. Patents Granted Power Integrations 6

7 Power Everywhere A Vast Addressable Market 2016 Power Integrations 7

8 Long-Term Secular Growth Drivers Ongoing transition to IC-based power supplies Integration saves labor and materials, improves reliability 2016 Power Integrations 8

9 Leading Transition to IC-Based Power Supplies Power Supply Unit Volume Fairchild Sanken ST Micro ON Semi Infineon POWI Discretes Linear Transformers Fairchild Infineon ON Semi ST Micro NXP Integrated iwatt/dialog BCD/Diodes Active Leadtrend OnBright Today 2016 Power Integrations 9

10 InnoSwitch : A New Level of Integration First IC to integrate primary and secondary sides of power supply across safety barrier Secondary Primary Enables drastic reduction in component count, complexity Highly energy-efficient 2016 Power Integrations 10

11 Long-Term Secular Growth Drivers Ongoing transition to IC-based power supplies Integration saves labor and materials, improves reliability Energy-efficient electronics & appliances Driven by standards and consumer awareness 2016 Power Integrations 11

12 Recognized Leader in Clean Technology Member of clean-tech stock indices The Cleantech Index (CTIUS) Nasdaq Clean Edge Green Energy (CELS) Ardour Global Index (AGIGL) Twice named a top 20 sustainable stock by SustainableBusiness.com ENERGY STAR award recipient Star of Energy Efficiency award recipient 2016 Power Integrations 12

13 Energy Specs Continue to Tighten U.S. Dept. of Energy tightening federal standards for external power supplies effective 2016 ENERGY STAR Most Efficient label rewards top performers SEAD competition to recognize most efficient TVs European standby power limitation tightened to 0.5 W in 2013 Traditional incandescent bulbs banned in U.S Power Integrations 13

14 Zero Series Eliminates Waste CAPZero removes waste from X-cap bleed resistors SENZero disconnects sense resistors in main power supply LinkZero cuts waste to 0.00 W in chargers and auxiliary power supplies 2016 Power Integrations 14

15 Energy Vampire vs. LinkZero 2016 Power Integrations 15

16 Long-Term Secular Growth Drivers Ongoing transition to IC-based power supplies Integration saves labor and materials, improves reliability Energy-efficient electronics & appliances Driven by standards and consumer awareness Expanding market opportunity Rapid charging for mobile-device market LED lighting requires efficient, reliable power supplies Higher-power products add ~$1B to addressable market 2016 Power Integrations 16

17 Rapid Charging Emerging Trend in Mobility More power needed to charge bigger batteries faster Demands ICs with high integration and maximum efficiency InnoSwitch + ChiPhy Interface Chip = More POWI content Conventional Charging With PI chipset 2016 Power Integrations 17

18 Well-Positioned in LED Lighting Traditional light sources phasing out LEDs need efficient, reliable AC-DC drivers Integration brings reliability, efficiency, size advantage LYTSwitch products offer highest level of integration available 2016 Power Integrations 18

19 Expanded Power Range = Larger TAM AC/DC LED IGBT Hiper Family CAPZero SENZero Qspeed SCALE IGBT Drivers TOPSwitch TinySwitch LinkSwitch / InnoSwitch LED Driver Products LYTSwitch 0W 2W 5W 20W 50W 100W 200W 500W 50kW 1MW 2016 Power Integrations 19

20 Radically Simplifying Power Supplies for PCs, TVs HiperPFS, HiperLCS and HiperTFS ICs replace up to 100 components HiperPFS + HiperLCS/ HiperTFS 2016 Power Integrations 20

21 More Silicon Content at Higher Power Levels EMI Filter PFC Stage Main and Standby Stage Boost Inductor AC EMI Filter Gate Drive Main & Standby Controller Main Output SR Standby Output PFC Controller TNY Before: Single IC for standby power supply 2016 Power Integrations 21

22 More Silicon Content at Higher Power Levels EMI Filter PFC Stage Main and Standby Stage Boost Inductor QSpeed HiperTFS AC CpZ EMI Filter SnZ Gate Drive Main & Standby Controller Main Output SR Standby Output PFC Controller HiperPFS CapZero HiperPFS SenZero Qspeed HiperTFS main + standby Now: Up to five components, potential dollar content >5x higher 2016 Power Integrations 22

23 IGBT Drivers for High-Power Market Acquired CT-Concept in 2012 Addressable market ~$500M; now accounts for ~10% of POWI revenues Addressing applications of 30 KW to 1 GW Broadens POWI opportunity in cleanpower applications High-efficiency industrial motors, renewable energy, electric transportation, DC transmission SCALE drivers reduce component count, enhance efficiency, reliability 2016 Power Integrations 23

24 Serving the Clean-Power Ecosystem Energy Ecosystem End Markets Energy Generation Wind Turbines Solar Power Power Semiconductors Energy Transmission HVDC Transmission Driver IGBT Module Energy Consumption Motor Control Hybrid Vehicles Locomotive Medical Driver optimizes efficiency, operating performance and lifespan IGBT module: Transistors arranged in parallel to increase switching capacity at high currents and voltages 2016 Power Integrations 24

25 Higher-Power Products Expand SAM to $2.5B LED general lighting LED street lights Smart meters Industrial control UPS Industrial motor drives Wind/solar inverters Electric trains/cars DC transmission Desktop/server standby Desktop main Notebook adapters LCD monitors Printers Industrial Computer Consumer Comms White goods Air conditioners TV standby / TV main Small appliances Set-top boxes DVD players Game consoles Mobile phone chargers Cordless phone adapters Broadband modems VoIP phones Wireless routers Mid-power applications in orange High-power applications in green 2016 Power Integrations 25

26 Worldwide Field Support and Operations Headquartered in San Jose, California Design Centers in San Jose, Ottawa, Switzerland, UK 16 field labs worldwide, each with in-house EMI test capability Excellent field technical support worldwide PI Locations Wafer Foundry (Oki, EPSON, XFAB) Assembly Subcontractor All Vendors and PI Are ISO9000 Certified 2016 Power Integrations 26

27 Track Record of Growth Revenues ($M) Power Integrations

28 Well-Diversified Revenue Mix % Industrial 23% Computer 24% Consumer 43% Comms 33% Industrial 36% Consumer 24% Comms 7% Computer Higher-margin industrial & consumer markets now over 2/3 of revenues 2016 Power Integrations 28

29 Strong Cash Generation Cash Flow from Operations ($M) One-time tax payment Power Integrations 29

30 Strong Balance Sheet At December 31, 2015 $174M cash and investments Used $116M for Concept acquisition, $23M for CamSemi acquisition Cash and Investments ($M) No debt 0 Q3'08 Diluted Shares Outstanding (M) Q4'15 Quarterly dividend of $0.13/share Diluted share count down 11% since 2008 on share repurchases Q3'08 Q4' Power Integrations 30

31 Power Integrations, Inc. Nasdaq: POWI