Power Integrations, Inc. Nasdaq: POWI. May 2013

Transcription

1 Power Integrations, Inc. Nasdaq: POWI May 2013

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). Copyright 2013 Power Integrations 2

3 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 Copyright 2013 Power Integrations 3

4 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. Copyright 2013 Power Integrations 4

5 Dimensions of Innovation Ultra-simple power supplies Fewer components Shorter design cycles Easier to manufacture Higher reliability BOM cost similar to discrete designs Highly energy-efficient Copyright 2013 Power Integrations 5

6 Relentless Innovation U.S. Patents 390 Non-U.S. Patents at 12/31/2012 U.S. Patents Granted Copyright 2013 Power Integrations 6

7 Broad Addressable Market Power Conversion Is Needed Everywhere Copyright 2013 Power Integrations 7

8 Long-Term Secular Growth Drivers 1. Ongoing transition to IC-based power supplies Integration saves labor and materials, improves reliability Copyright 2013 Power Integrations 8

9 Leading Transition to IC-Based Power Supplies Power Supply Unit Volume Fairchild Sanken ST Micro ON Semi Infineon POWI Discretes Fairchild Infineon ON Semi ST Micro Integrated iwatt BCD Active 20% Leadtrend NXP OnBright 80% Linear Transformers Today Copyright 2013 Power Integrations 9

10 Long-Term Secular Growth Drivers 1. Ongoing transition to IC-based power supplies Integration saves labor and materials, improves reliability 2. Energy-efficiency Driven by standards and consumer awareness Copyright 2013 Power Integrations 10

11 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 Copyright 2013 Power Integrations 11

12 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 Copyright 2013 Power Integrations 12

13 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 Copyright 2013 Power Integrations 13

14 Long-Term Secular Growth Drivers 1. Ongoing transition to IC-based power supplies Integration saves labor and materials, improves reliability 2. Energy-efficiency Driven by standards and consumer awareness 3. LED lighting Requires low-cost, efficient, reliable power supplies Copyright 2013 Power Integrations 14

15 Well Positioned in LED Lighting Traditional incandescent lights phasing out LEDs need efficient, reliable drivers Integration, single-stage architecture bring reliability, efficiency, low cost LED Lighting Revenues ($M) Copyright 2013 Power Integrations 15

16 Long-Term Secular Growth Drivers 1. Ongoing transition to IC-based power supplies Integration saves labor and materials, improves reliability 2. Energy-efficiency Driven by standards and consumer awareness 3. LED lighting Requires low-cost, efficient, reliable power supplies 4. Expanding addressable market to higher power levels Mid-power ( W) products plus Concept acquisition expand addressable market by ~$1 billion Copyright 2013 Power Integrations 16

17 Expanding Market with Mid-Power Products LOW-POWER MID-POWER Hiper Family CAPZero /SENZero /Qspeed TOPSwitch TinySwitch LinkSwitch / LinkZero LED Products LinkSwitch-PL/PH / LYTSwitch 0W 2W 5W 20W 50W 200W 500W Copyright 2013 Power Integrations 17

18 Radically Simplifying Mid-Power Converters HiperTFS + HiperPFS HiperPFS and HiperTFS replace up to 100 components Copyright 2013 Power Integrations 18

19 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 Copyright 2013 Power Integrations 19

20 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, 5x-10x the dollar content Copyright 2013 Power Integrations 20

21 CONCEPT: Highly Integrated IGBT Drivers Acquired in May 2012 Applications: industrial motors, solar/wind power, electric trains and cars Addressable market approaching $500M Adds ~10% to POWI revenue Highly integrated drivers enhance cost, efficiency, size, reliability Copyright 2013 Power Integrations 21

22 CONCEPT Spans the Clean-Power Ecosystem Renewable Power Generation Efficient Power Transmission Efficient Power Consumption High-Voltage Power Conversion Copyright 2013 Power Integrations 22

23 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 Industrial Desktop/server standby Desktop main Notebook adapters LCD monitors Printers Consumer Comms Computer 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 Copyright 2013 Power Integrations 23

24 Consistent Track Record of Growth Revenue ($M) Copyright 2013 Power Integrations 24

25 Outperforming the Peer Group 40% Annual Revenue Growth POWI Analog Semis (SIA) 30% 20% 10% 0% -10% year CAGR Copyright 2013 Power Integrations 25

26 Well Diversified Revenue Mix % Consumer 36% Consumer 23% Computer 43% Comms 28% Industrial 24% Comms 11% Computer Higher-margin industrial & consumer markets now ~2/3 of revenues; cellphone chargers down from ~40% to less than 15% Copyright 2013 Power Integrations 26

27 Consistent Cash Flow Generation Cash Flow from Operations ($M) Effect of onetime tax payment Copyright 2013 Power Integrations 27

28 Strong Balance Sheet At March 31, 2013 $119M cash and investments Used $116M for Concept acquisition $43M tax payment in Q3 12; tax rate down to single digits in 2013 No debt Cash and Investments ($M) Quarterly dividend of $0.08/share Announced 60% increase for 2013 $260M of repurchases since 2004 Repurchased >2% of outstanding shares in Q for ~$30/share 0 Q3'08 Q4'10 Q1'13 Diluted Shares Outstanding (M) Q3'08 Q4'10 Q1'13 Copyright 2013 Power Integrations 28

29 Prudently Returning Cash to Stockholders Shares Outstanding (M) $260M of share repurchases since 2004 Avg. price of repurchased shares: ~ $ % net reduction in outstanding shares (February 2004 to February 2013) 13 th most profitable buyback since 2000 (The Buyback Monitor, July 2011*) *Survey period January 2000 through March 2011; included 252 companies Copyright 2013 Power Integrations 29

30 Power Integrations, Inc. Nasdaq: POWI