IS™ Power Integrations, Inc. Nasdaq: POWI Q 0 0 (3) September 2020 ac-dc converters led drivers 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 2 results may differ materially from those suggested in the presentation. Information concerning factors that could cause such a dif ...

Financial Data and Key Metrics Changes - Q2 revenues were $106.8 million, up 4% year-over-year, in line with guidance despite a challenging demand environment [8][24] - Non-GAAP gross margin fell 150 basis points sequentially to 51.1% due to a shift in revenue mix [26] - Non-GAAP earnings were $0.66 per diluted share, with cash and investments increasing by about $23 million during the quarter [28][34] Business Line Data and Key Metrics Changes - Industrial revenues accounted for 35% of sales, growing high single digits year-over-year, driven by broad-based industrial applications [8][26] - Communications revenues grew more than 20% year-over-year, primarily due to the adoption of fast chargers for mobile devices [13][25] - Consumer revenues declined at a double-digit rate year-over-year, significantly impacted by the pandemic and inventory corrections [18][24] Market Data and Key Metrics Changes - The consumer market is expected to remain flat sequentially in Q3, with air conditioning sales particularly affected by seasonality [19][61] - The company anticipates a gradual recovery in the consumer market post-pandemic, driven by increasing electronic content in appliances and energy efficiency requirements [19][63] - The company maintains an elevated level of inventory to prepare for a potential recovery in demand [21][65] Company Strategy and Development Direction - The company is aggressively pursuing low power opportunities in electric vehicles and has qualified several products for automotive use [12][18] - The focus on GaN technology is expected to drive growth in the fast-charging market, with significant design wins anticipated [17][75] - The company is maintaining a cautious outlook on the demand environment due to the pandemic but is preparing for a potential recovery [20][21] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about long-term growth prospects in the industrial and communications sectors, despite short-term challenges [10][63] - The company expects revenues to increase sequentially in Q3, driven by growth in fast-charging and communication categories [22][31] - Management noted that the high-power market is expected to recover in the long run, despite current softness due to pandemic-related delays [10][41] Other Important Information - The Board approved a two-for-one stock split, with the additional shares to be distributed on August 18 [34][35] - The company plans to maintain a minimum level of activity at foundries to help sustain capacity, despite slowing wafer starts [30][65] Q&A Session Summary Question: Automotive revenue expectations - Management indicated that some revenue from low power products is expected next year, but significant revenue won't materialize until 2023 or 2024 [39] Question: Communications design wins - The majority of new inbox designs are in the 20 to 30-watt range, with fast charging being adopted across various phone segments, including mid and low-end models [40] Question: Industrial business outlook - Industrial revenues are expected to remain flat in Q3, with no significant changes anticipated [48] Question: Gross margin sustainability - Management expects gross margins to remain in the range of 50.5% to 51% for Q3, supported by cost improvements [54][55] Question: Consumer market seasonality - The consumer market is projected to recover slightly in the second half of the year, but air conditioning seasonality may offset this [61] Question: Inventory levels - Internal inventory levels are primarily in wafer form, and the company plans to adjust wafer purchases gradually to maintain capacity [65] Question: 5G handsets and power levels - The company noted that 5G phones are likely to require higher power fast chargers, with power levels increasing from 20 watts to 30 watts [70] Question: GaN-based product revenue trends - Revenue from GaN-based products is expected to double this year and potentially increase even more next year based on design wins [77]

Power Integrations, Inc. (NASDAQ:POWI) Q1 2020 Results Conference Call May 7, 2020 4:30 PM ET Company Participants Joe Shiffler - Director, Investor Relations Balu Balakrishnan - President and CEO Sandeep Nayyar - Chief Financial Officer Conference Call Participants Ross Seymore - Deutsche Bank David Williams - Loop Capital Jeremy Kwan - Stifel Christopher Rolland - Susquehanna Operator Thank you for standing by, and welcome to the Power Integrations First Quarter Earnings Call. [Operator Instructions] I'd ...

er cions" Power Integrations, Inc. Nasdaq: POWI March 2020 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 m ...

Power Integrations, Inc. (NASDAQ:POWI) Q4 2019 Earnings Conference Call January 30, 2020 4:30 PM ET Company Participants Joe Shiffler - Director, Investor Relations & Corporate Communications Balu Balakrishnan - President & Chief Executive Officer Sandeep Nayyar - Chief Financial Officer & Vice President, Finance Conference Call Participants Tore Svanberg - Stifel Ross Seymore - Deutsche Bank David Williams - Loop Capital Christopher Rolland - Susquehanna Gus Richard - Northland Operator Ladies and gentleme ...

Financial Data and Key Metrics Changes - Revenues increased 11% sequentially to just over $114 million, representing a 4% increase compared to the same quarter last year, marking a return to year-over-year growth ahead of the broader analog industry [11][21] - Non-GAAP gross margin was 52%, up 80 basis points from the prior quarter, while non-GAAP operating margin increased by 500 basis points sequentially to reach 21% [22][23] - Non-GAAP earnings were $23.3 million or $0.78 per diluted share [23] Business Line Data and Key Metrics Changes - Communications revenue grew nearly 40% year-over-year in Q3, driven by market share gains in the smartphone charger market [11] - Industrial revenues increased double digits sequentially, supported by high power applications and smart meters [22] - Consumer revenues were down mid-single digits sequentially due to seasonal softness in air conditioning [22] Market Data and Key Metrics Changes - The mobile device market is rapidly shifting towards higher wattage chargers, with most OEMs moving to the 15 to 25 watt range for smartphones [29] - GaN-based products are beginning to penetrate the market, with expectations of significant revenue growth in the coming years [31][54] Company Strategy and Development Direction - The company aims to leverage its intellectual property and innovation, particularly in GaN technology and fast charging solutions, to drive future growth [10][12] - New product lines such as BridgeSwitch for motor control are expected to provide additional growth vectors in appliances [17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the fundamentals of the appliance market, which continues to experience growth from the expanding middle class in emerging markets [16] - The introduction of 5G technology is anticipated to increase the demand for fast charging solutions due to higher power requirements [45] Other Important Information - The company received a $175 million settlement from ON Semiconductor, which is expected to lead to a substantial reduction in operating expenses starting in Q1 2020 [9][19] - The board has increased the quarterly dividend to $0.19 per share, effective in the current quarter [20] Q&A Session Summary Question: Market dynamics for higher power adapters - Management noted that most OEMs are transitioning to 15 to 25 watt chargers, with GaN technology beginning to penetrate the market [29][30] Question: Future cash allocation post-settlement - The company plans to continue its historical four-pronged approach to cash management, focusing on internal investment, selective M&A, opportunistic buybacks, and dividends [33] Question: Seasonality in consumer segment - Management indicated a typical decline in the consumer segment but expects a good sequential increase in Q2 and Q3 of the following year [38] Question: Competitive landscape for GaN products - Management highlighted that GaN technology offers significant advantages in efficiency and size, particularly for higher wattage applications [54] Question: 5G impact on power requirements - Management confirmed that 5G will increase the need for fast charging due to higher usage and power demands [45] Question: BridgeSwitch expectations in motor control - Management expressed confidence in the BridgeSwitch solution's potential due to tightening efficiency regulations in various appliances [48]