power integrations, inc. - jefferies integrations.pdf · these slides accompany an oral...

Power Integrations, Inc.Nasdaq: POWI

May 2013

© Copyright 2013 Power Integrations 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, http://investors.powerint.com (see “Historical Financials” data file).


Secular Growth Story in Analog Semis

� Leader in bringing integration to high-voltage power conversion

� Energy efficiency driving faster market penetration

� Strong position in LED lighting

� Expanding addressable market with higher-power products and strategic transactions


Highly Integrated Power Supplies Replacing Legacy Technologies

Discrete DVD power supply: 70 components

Equivalent power supply with POWI:36 components, smaller board

Linear transformer: weighs 12 oz.

Adapter with POWI: weighs 2 oz.


� Ultra-simple power supplies• Fewer components

• Shorter design cycles

• Easier to manufacture

• Higher reliability

� BOM cost similar to discrete designs

� Highly energy-efficient

Dimensions of Innovation


Relentless Innovation

534 U.S. Patents390 Non-U.S. Patents

at 12/31/2012

0

100

200

300

400

500

600

U.S

. Pat

ents

Gra

nted


Broad Addressable Market –Power Conversion Is Needed Everywhere


Long -Term Secular Growth Drivers

1. Ongoing transition to IC-based power supplies• Integration saves labor and materials, improves reliability


Leading Transition to IC -Based Power Supplies

Linear Transformers

1970 1994

Discretes

1994 Today1970

Integrated•Fairchild•Sanken•ST Micro•ON Semi• Infineon POWI

• iWatt•BCD•Active•Leadtrend•OnBright

•Fairchild• Infineon•ON Semi•ST Micro•NXP 80%

20%

Pow

er S

uppl

y U

nit V

olum

e




2. Energy-efficiency• Driven by standards and consumer awareness


Recognized Leader in Energy Efficiency

� 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


Energy Specs Continue to Tighten

� New ENERGY STAR® label rewards top performers in designated product categories

� New CEC battery-charger standards in 2013; U.S. to tighten federal standards for external power supplies

� European standby power limitation tightens to 0.5 W as of 2013


“ Zero” Series Zeroes Out Standby Waste

� CAPZero™ eliminates 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





3. LED lighting• Requires low-cost, efficient, reliable power supplies


Well Positioned in LED Lighting

� Traditional incandescent lights phasing out

� LEDs need efficient, reliable drivers

� Integration, single-stage architecture bring reliability, efficiency, low cost

0

5

10

15

20

25

2007 2008 2009 2010 2011 2012

LED Lighting Revenues ($M)





3. LED lighting• Requires low-cost, efficient, reliable power supplies

4. Expanding addressable market to higher power levels• Mid-power (50-500 W) products plus Concept acquisition expand

addressable market by ~$1 billion


Expanding Market with Mid -Power Products

0W 500W5W 50W2W 20W 200W

CAPZero ™/SENZero™/Qspeed ™

Hiper ™ Family

TOPSwitch ™

TinySwitch ™

LinkSwitch ™ / LinkZero ™

LinkSwitch-PL/PH / LYTSwitch ™

LED Products

LOW-POWER MID-POWER


Radically Simplifying Mid -Power Converters

HiperPFS™ and HiperTFS™ replace up to 100 components

HiperTFS + HiperPFS


More Silicon Content at Higher Power Levels

EMI Filter PFC Stage Main and Standby Stage

Main &

Standby

Controller

Boost Inductor

PFC

Controller

EMI Filter

Standby

Output

AC

Gate

Drive

SR

Main

Output

TNY

Before: Single IC for standby power supply


More Silicon Content at Higher Power Levels EMI Filter PFC Stage Main and Standby Stage

Main &

Standby

Controller

Boost Inductor

PFC

Controller

EMI Filter

Standby

Output

AC

HiperPFS

HiperTFS

CpZ

Gate

Drive

SnZ

QSpeed

SR

Main

Output

HiperTFS ™ main + standbyCapZero ™ HiperPFS ™ SenZero ™ Qspeed ™

Now: Up to five components, 5x-10x the dollar content


CONCEPT: Highly Integrated IGBT Drivers

Highly integrated drivers enhance cost, efficiency, size, reliability

� Acquired in May 2012

� Applications: industrial motors, solar/wind power, electric trains and cars

� Addressable market approaching $500M

� Adds ~10% to POWI revenue


CONCEPT Spans the Clean -Power Ecosystem

High-Voltage Power Conversion

Renewable Power Generation

Efficient Power Transmission

Efficient Power Consumption


Higher-Power Products Expand SAM to $2.5B

● Mobile phone chargers● Cordless phone adapters● Broadband modems● VoIP phones● Wireless routers● Desktop/server standby

● Desktop main● Notebook adapters● LCD monitors● Printers

● White goods● Air conditioners● TV standby / TV main● Small appliances● Set-top boxes● DVD players● Game consoles

● LED general lighting● LED street lights● Smart meters ● Industrial control● UPS● Industrial motor drives● Wind/solar inverters● Electric trains/cars● DC transmission

Consumer

Comms

Computer

Industrial

Mid-power applications in orange

High-power applications in green


Consistent Track Record of Growth

0

40

80

120

160

200

240

280

320

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Revenue ($M)


Outperforming the Peer Group

-10%

0%

10%

20%

30%

40%

2007 2008 2009 2010 2011 2012 6-yearCAGR

Annual Revenue Growth POWI

Analog Semis (SIA)


Well Diversified Revenue Mix

25%Consumer

23%Computer

43%Comms

20022012

24%Comms

36%Consumer

28% Industrial

11%Computer

Higher-margin industrial & consumer markets now ~2/3 of revenues; cellphone chargers down from ~40% to less than 15%


Consistent Cash Flow Generation

0

10

20

30

40

50

60

70

80

90

100

2008 2009 2010 2011 2012

Cash Flow from Operations ($M )

Effect of one-time tax payment


Strong Balance Sheet

� $119M cash and investments• Used $116M for Concept acquisition

• $43M tax payment in Q3’12; tax rate down to single digits in 2013

� No debt

� Quarterly dividend of $0.08/share• Announced 60% increase for 2013

� $260M of repurchases since 2004• Repurchased >2% of outstanding shares

in Q4 2012 for ~$30/share

0

50

100

150

200

250

Q3'08 Q4'10 Q1'13

Cash and Investments ($M)

10

15

20

25

30

35

Q3'08 Q4'10 Q1'13

Diluted Shares Outstanding (M)

At March 31, 2013


Prudently Returning Cash to Stockholders

15

20

25

30

35

2004 2013

Shares Outstanding (M)

� $260M of share repurchases since 2004

� Avg. price of repurchased shares: ~ $23

� 6% net reduction in outstanding shares (February 2004 to February 2013)

� 13th “most profitable” buyback since 2000 (The Buyback Monitor, July 2011*)

*Survey period January 2000 through March 2011; included 252 companies

Power Integrations, Inc.Nasdaq: POWI

power integrations, inc. - jefferies integrations.pdf · these slides accompany an oral...

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