Power Integrations (POWI) Investor Presentation - Slideshow

Company Overview - Power Integrations is a technology leader in ICs for energy-efficient AC-DC power supplies, LED lighting, gate drivers, and motor drivers[7] - The company's ICs simplify power supply design by integrating multiple components, reducing complexity, and improving energy efficiency[11, 18] - Power Integrations' products address a broad power range, from 0 W to 1 GW, targeting diverse applications[29] Market and Growth Drivers - The company estimates its addressable market to be over $4 billion, driven by trends in LED lighting, home automation, industrial controls, and electric transportation[34] - Secular growth drivers include the transition to IC-based power supplies and the increasing demand for energy-efficient electronics[12] - Technology trends like rapid charging for mobile devices and electrification in various sectors are expanding the company's market opportunity[48] Financial Performance and Strategy - The company targets low-double-digit revenue growth and a non-GAAP gross margin of 50-55%[63] - Power Integrations has a strong cash flow, with a four-prong approach to capital management including internal investment, M&A, tax strategy, and shareholder returns[66, 67] - As of December 31, 2019, the company had $411 million in cash and investments and no debt[68] Energy Efficiency and Innovation - Power Integrations' EcoSmart technology has saved over 125 billion kWh of standby energy, resulting in over $12 billion saved by end users[39, 40] - The company's "Zero" series of products eliminates waste in chargers and auxiliary power supplies[46] - Power Integrations is incorporating GaN technology into its InnoSwitch products for more efficient, cooler, and smaller power supplies[27]