power integrations, inc.s1.q4cdn.com/369102141/files/doc_presentations/2017/2017-12-powi... ·...

Power Integrations, Inc.Nasdaq: POWI

December 2017

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 report on Form 10-K.

This presentation may also contain certain non-GAAP financial information.

Reconciliations of non-GAAP financial metrics to GAAP results are available on the

investor page of the Power Integrations website, http://investors.power.com.

©2017 Power Integrations | www.power.com 2

Secular Growth Story in Analog Semis

Leading innovator in high-voltage power conversion

Clean-tech enablerEfficient appliances, LED lighting

Industrial DC motor drives

Renewable energy

Electric transportation

Expanding market opportunityRapid charging for mobile devices

Connected appliances / smart-home / IoT

Battery-driven tools, e-bikes

Gate drivers for high-power applications


Comprehensive Expertise in High-Voltage


Ultra-simple power converters

Fewer components

Shorter design cycles

Easier to manufacture

Higher reliability

BOM cost similar to discrete

designs

Highly energy-efficient

The Power Integrations Advantage

5©2017 Power Integrations | www.power.com

Conventional Phone Charger - More than 60 Components

EMI filter and bridge rectifier Isolation transformer Synchronous rectification

Output current and

voltage control

Opto-coupler

feedback

Switching MOSFET

and current sense

The Power Integrations Advantage


Phone-charger Power Supply Using InnoSwitch-CH – only 24 parts

InnoSwitch™

• Switching MOSFET

• Current sense

• FluxLink™ replaces opto-coupler

• Synchronous rectification driver

• Output current and voltage control

InnoSwitch™: A New Level of Integration

First IC to integrate primary and

secondary sides of power supply

across safety barrier

Enabled by FluxLink™ technology

Enables drastic reduction in

component count, complexity

Highly energy-efficient

Very high efficiency

Very low standby consumption


SecondaryPrimary

65 W adapter with discretes:

72 components, two heatsinks, 144 cm3

65 W adapter with POWI InnoSwitch™3

39 components, no heatsinks, 59 cm3

Highly Integrated Power Converters Replace

Legacy Technologies


Radically Simplifying Power Supplies

HiperPFS™, HiperLCS™ / HiperTFS™ ICs replace up to 100 components


HiperPFS , HiperLCS / HiperTFS

Power Everywhere – A Vast Addressable Market


Addressable Market Now Exceeds $3B

Consumer

CommsComputer

Industrial

High-power applications in red

● Desktop/server standby

● Desktop main

● Notebook adapters

● LCD monitors

● Printers

● LED lighting

● Home/building automation

● Smart meters

● Industrial controls

● Battery-powered tools

● UPS

● Industrial motor drives

●Wind/solar inverters

● Electric trains/buses

● DC transmission

●Medical

●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


Long-Term Secular Growth Drivers

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

POWI

• Diodes

• Richtek

• Leadtrend

• OnBright

• Others

• Infineon

• ON Semi

• ST Micro

• NXP

• Dialog

Po

we

r S

up

ply

Un

it V

olu

me

Sanken

ST Micro

ON Semi

Infineon



Ongoing transition to IC-based power supplies

Integration saves labor and materials, improves reliability

Energy-efficient electronics & appliances

Driven by standards and consumer awareness


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


Energy Specs Continue to Tighten

U.S. Dept. of Energy tightened federal standards

for external power supplies effective 2016

ENERGY STAR® “Most Efficient” label rewards top

performers

SEAD competition recognizes most efficient TVs

European standby power limitation tightened to

0.5 W in 2013

Traditional incandescent bulbs banned in U.S.


“Zero” Series Eliminates Waste

LinkZero™ cuts waste to 0.00 W in

chargers and auxiliary power

supplies

CAPZero™ removes waste from

X-cap bleed resistors

SENZero™ disconnects sense

resistors in main power supply


Energy Vampire vs. LinkZero™



Ongoing transition to IC-based power suppliesIntegration saves labor and materials, improves reliability

Energy-efficient electronics & appliancesDriven by standards and consumer awareness

Expanding market opportunity – SAM has doubled since 2010Rapid charging for mobile-device market

LED lighting

Home & building automation / smart lighting and appliances / IoT

Battery-powered tools, e-bikes, electric transportation

SCALE-iDriver™ doubles SAM for high-power business to $1B


Rapid Charging – Important 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

Traditional light sources phasing out

LEDs need efficient, reliable

AC-DC drivers

Integration brings reliability,

efficiency, size advantage

LYTSwitch™ for Solid State Lighting


Increasing IoT Footprint


Connected Power Strips / U Sockets

Connected smoke alarms, occupancy sensors, smart lighting


Gate Drivers for High-Power Market

Acquired CT-Concept in 2012

Addressing applications 10 kW to 1 GW

High-efficiency industrial motors, renewable

energy, electric transportation, DC

transmission

New SCALE-iDriver™ expands addressable

market from ~$500M to ~ $1B

High-power now ~10% of POWI revenues

SCALE™ drivers reduce component count, enhance efficiency, reliability

Serving the Clean-Power Ecosystem

Power Semiconductors

High-voltage switches

arranged to increase

power capability

Driver optimizes

efficiency, operating

performance

and lifespan


Energy Ecosystem End Markets

Energy

Generation

Energy

Transmission

Energy

Consumption

Wind Turbines

Solar Power

HVDC

Transmission

Motor ControlHEV/EV

LocomotiveMedical

Gate Driver

ModuleDriver


SCALE-iDriver™ with FluxLink™

Introduced in 2016; key synergy

of Concept acquisition

FluxLink provides isolation

without optocouplers

Adds ~$500M to addressable

market

IGBT1

IGBT2

Input (PWM)

Fault

Primary

(high-voltage)

Secondary

(low-voltage)

SCALE-iDriver Applications: 10-100 KW


Solar

Motor Drives MedicalUPS

Welding / Cutting Commercial Vehicles

Expanded Power Range = Larger SAM

0W 500W5W 50W2W 20W 200W

TOPSwitch™

TinySwitch™ / InnoSwitch™3

LinkSwitch™ / InnoSwitch

LED Driver Products – LYTSwitch™


AC/DC

LED

IGBT

10 kW 100 kW 1 GW100W

Hiper™ Family

CAPZero™ / SENZero™

Qspeed

SCALE-iDriver™+ SCALE™-2

�

�

�

�

Global PresenceHeadquarters in San José, California

Design centers in Canada, Switzerland, UK, Germany

19 field labs worldwide


�� Assembly Subcontractor

� Wafer Foundry (Lapis, EPSON, X-FAB)

PI Locations

��

�

�

Target Financial Model

Double-digit revenue growth13% growth in 2016

Non-GAAP gross margin 50-55% 50.6% in 2016

Non-GAAP operating margin 20%+19.3% in 2016

Non-GAAP tax rate ~5%3.4% in 2016


Note: Non-GAAP results exclude amortization of acquisition-related intangible assets and stock-based compensation expenses

0

50

100

150

200

250

300

350

400

2001 2006 2011 2016

Re

ven

ue

s ($

M)

©2017 Power Integrations | www.power.com

Track Record of Growth

30

Note: Revenues shown in chart are prior to ASC 606 recast; see company website for recast financial data for 2015-2016

-10%

-5%

0%

5%

10%

15%

20%

Q1'15 Q2'16 Q3'17

Y/Y

Re

ve

nu

e G

row

th

©2017 Power Integrations | www.power.com

Q3 Results

Record revenues of $111.3M in Q3

(9% Y/Y growth)13% growth YTD 2017

High-teens growth YTD in consumer,

industrial categories

Non-GAAP EPS up 16% Y/Y in Q3Q3 non-GAAP operating margin at three-

year high (21.6%)

$24.6M cash flow from operations

31

Q1’17 reflects adoption of ASC 606; all other data points are as originally reported

Well-Diversified Revenue Mix

23%Computer

43%Comms

2002 2016

27%

Comms

36%

Consumer

31%

Industrial

6%

Computer

Higher-margin industrial & consumer markets now ~2/3 of revenues

24%Consumer

9%Industrial


Strong Cash Flow: 15% FCF CAGR (2008-2016)

13% 14% 10%

16%

12%

24%

18% 20%

22%

0

10

20

30

40

50

60

70

80

90

100

2008 2009 2010 2011 2012 2013 2014 2015 2016

Cash flow from operations CAPEX FCF (with FCF Margin)$M

One-time tax

payment


FCF = Cash flow from operations less capital expenditures

Cash-rich Business Model

Effective Tax Strategy

Healthy Balance Sheet, Domestic Cash Resources

Accelerated Internal Investment

Targeted M&A

Opportunistic Buybacks

Dividends

Four-Prong Approach to Capital Management


Strong Balance Sheet

10

15

20

25

30

35

Q3'08 Q4'10 Q1'13 Q2'15 Q3'17

Diluted Shares Outstanding (M)

At September 30, 2017

$264M cash and investments

$116M for Concept acquisition (2012)

Repurchased >$330M of stock since 2008

No debt

Quarterly dividend of $0.14/share

Share count down 6% since 2008

0

50

100

150

200

250

Q3'08 Q4'10 Q1'13 Q2'15 Q3'17

Cash and Investments ($M)


power integrations, inc.s1.q4cdn.com/369102141/files/doc_presentations/2017/2017-12-powi... ·...

Documents