POWI - Earnings call transcript Q4 2020 | Power Integrations, Inc.

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Operator

Ladies and gentlemen, thank you for standing by. And welcome to the Power Integrations' Fourth Quarter Earnings Call. At this time, all participants are in a listen-only mode. [Operator Instructions] I would now like to hand the conference over to your speaker today, Joe Shiffler, Director of Investor Relations. Thank you. ahead. go Please

Joe Shiffler

Chief Good me Mike. President Thanks joining Nayyar, for CEO Thank the afternoon, call With our Sandeep and on Power Balakrishnan, Officer. today us. of you, Integrations; everyone. Financial are and Balu

included of financial GAAP the During according our not these tax on stock-based expenses, effects to refer related results acquisition Reconciliation exclude calculated amortization measures of measures of this non-GAAP Non-GAAP intangible release. will our call, compensation we is measures to to GAAP. assets press items. and

Our are And is including report differ uncertainties statements performance. forecast, recording the discussed or look of with today may that from should, will, the SEC is discussion release. of on that include Power Q&A results filed events rebroadcast and or press with call projected filed those XX, SEC outlook, February forward denoted would, Such risks cause actual session statements looking implied. anticipate expect, materially on Integrations. like Integrations. And expressions Such future in will Power and are without similar most property or XX-K by expressly form the October our written XXXX. to And our in and prohibited Form XX-Q subject today's This words X, the toward consent risks believe, uncertainties recent XXXX. the any on quarterly to

Now, I'll over turn call Balu. the to

Balu Balakrishnan

$X.XX time. prior share. quarterly broad revenues with quarter. everyone. of cash from in our diluted with expanded sheet, third quarter to million. a afternoon, increase and we flow hike from comfortably our up XX% our was dividend you, Thank to total And that dividend in earnings XX%, good non-GAAP margin markets operating healthy double all the XX% based, $X.XX Fourth the Directors of strong million quarters past $XXX was balance cash to expectations, has share. per marks exceeded Joe over per The Reflecting increased Non-GAAP growth $XX foreign This digits generated increasing our Board and operations. four year-over-year

year, full our XX% in all this range by with efficiency were semiconductor the continues growth and appliances end The up analog robust categories. consumer Korea, demand, as about year, and nearly network gains rising of the category, LED magnified as lighting, well grew features China, US. well as at market year-over-year strong, our in such tighter the in intelligence For for grew energy Appliances broad other electronic to four entering content in be the XXXX, main in and just as while dollar end revenues standards. continued The X% largest connectivity, revenues reflecting driver gains fourth as quarter. market grew growth the industry finished XX% XX% share of Japan Europe, by share household a customers impact driven

operated chips growth which by lower the home and was low our traction our by strong resulting significant industrial than category. in products even customers, in automation, to applications, growth products tools single high driver power in XXXX drive pandemic In gaining by broad-based at demand for greater revenues products. forward. overall seeing in appliances offset driven projects. InnoSwitch in GaN content in for a and are were category, Our interest integration of many bridge constrained growth switch infrastructure providing points content a earlier going also appliance dollar which industrial delays in power and digit level products, The motor continued We're dollar building the high battery higher in

denominator The and as of of renewable trends transmission, largest smartphones, revenue up chargers nearly voltage in communications transportation categories the category tools, computer The buildings homes from a more notebooks. for year. grew common such smaller than tablets, benefit XX% category to these secular USB range and business provided electrification incremental XX%. advanced even smart adoption industrial and The receptacles. charging faster, for DC and of our XXXX expect we high the forward, energy, across contribution Going broad growing the power is fixed rapid

and past years the now growth advantage a Integrations continues. slowing chargers. Power has sign terms as of chargers in revenue. Over demonstrated rollout in shows couple advanced into of Adoption advanced And and product design of that last rapid share commanding technology and accelerated market XG of the is lead for year, no translating

our smaller several MinE-CAP designs QX; saving model power and seeing much of Many XG robust ICs, differentiate design as use devices even with products. GaN thanks chargers batteries. a designed in Even charging require products. technologies our watt capacitors. an offer of are two their accessory a are including the higher a to CAPZero pipeline an pushing levels larger suppliers. We their to to charger as with wave or Meanwhile, charger the which USBPD, reduce designs our products, MinE-CAP as ICs. to OEMs OEMs, InnoSwitch power faster higher OEMs phones based MinE-CAP utilizing and GaN GaN includes won our an technology along at by industries with and includes of of well to increasing the to move innovation energy aftermarket due more as we new GaN to at That power XX and certain input number chargers based enabling designs This size in unprecedented like way

ago, strategically as variable costs While designs Today, third-party revenue past Not sea or the the not of commodities value-added are in that accessory a chargers, and necessarily emerged thinking has wave mattered. long over either that years. feature generating and the exemplify value about brands high OEMs are as aftermarket market for occurred has typical, only change the chargers a well. such several charger

technologies like this inner for GaN in We made change it and time. like some And thanks were revolutionary we have quite investments products we R&D for have seen to coming switch. ready

a which that decade investment thinking example of our Our GaN, a success. great long-term our been is almost ago, has of cornerstone a in began

Our the challenges through approach another. is to managing of pandemic

the peers, increase headcount we cut expanding last or of early invest industry our by in salaries pandemic, some coming of people our year, in and with the the increases R&D. in reduced largest workforce our salary continue to X% While normal giving stages

In fact, in we hired a number industry early the of peers capable the pandemic. of highly that by go stages people

year, invested also our to facilities million and of last our We European nearly in headquarters. more San for $XX operations, construction million and capital spending new Jose capacity $XX than infrastructure, in on including updates

foundry of at demand have across long can are stages is are seeing We today. relationships, life early brings shelf June in also fungible and satisfy softened helping to and the pandemic, and to capacity, us stability Building our the preserve customers when we inventory the knowing quarter. as that to the end to of our customers. inventory our enables afford, rising It something as XXX build demand we days applications surges, products

While we've bookings lead times able have months. lines the newer customer been to extended in and inventories for unprecedented production below our some normal, products, the running, keep distributor are in surge recent an of despite

help now operations of as acquisition XX Integrations Petrakian, Raja his by before his ideal experience our and Gupta, operations like industry. and over and who than person to reasons, forward. turn at Renesas, to six for success who over He was going our years Sunny a previously I transition years VP personal leading in to over acknowledge Raja charge also Sunny engineering he to to for at Operations. their I'll over. for I'd of We And our Renesas. And more quality thank of it smooth is Intersil is before in contributions in is has Power Sandeep. as it semiconductor in after takes the Taking lead Sandeep, operations the team turn Raja Finally, ensuring

Sandeep Nayyar

Thanks Balu afternoon. and good

by continued up usual, the release up well in XX% noted. by for to XX% Computer were respect demand than a the growth as slight industrial's sequentially remarks supplies. will Balu margin for double on driven market in reflecting reflecting digit as above of well while automation, my market in operating the As basis; were XX non-GAAP Consumer million, quarter also more double as based the reconcile power tablets, industrial Communications home mid-XXs sequentially strong categories X% monitors up $X $XX.X margin, servers all tables. XX%. our the strength timing was prior revenues charging building XX% by which were Mix ongoing a to were points communication, revenues the and than quarter are primarily driven fast broad from was basis standby our more XX% Non-GAAP computer. which grew mix appliance by million, up to XX% expenses Revenue primarily driven projects. quarter was GAAP with $XXX for revenues revenue R&D was growing results, Industrial and headwind I operating as Fourth as fell press with the up four digits quarter and low applications. in modestly XX.X% million focus smartphones. non-GAAP expectations, and gross the non-GAAP XX% on consumer,

balance capital For only Other $XX the CapEx capacity million. recorded $X.XX share. quarter, million from quarter non-GAAP settlement, CapEx negative test, need due of to which fourth last litigation million by increased slightly, sheet for in of as $XXX for Cash down the over were bought from the demand. aside investments was interest from additions building a roughly surge ending about rate $X prior diluted especially operations year's $XXX,XXX The assembly full at $XX for up year in including million non-GAAP in That the income just the while the some were forward ongoing resulting result the tax $XX pull and year, was Cash expenditures quarter the and environment. expense. The the effective a the for higher lower $XX quarter our rate non-GAAP year X%, was to quarter the the as of prior construction. for reflects expenses setting was total impact million, in million the earnings per flow to

rate our the million our return revenue, XXXX, projects. normal For expect X% an plus to the run $XX to base to I for additional $XX construction X% of CapEx of of million to completion

the notable fourth quarter for The cash $X dividends. of use in million was other

XX%. terms first an XX down noted, to the exceeded occur days. inventories days March Internal quarter of unsustainably of quarter quarter. the to by replenishment again consider expect go once in. fell As the as XXX the ended $X.XX which per during weeks, we a dollars, Channel quarter, inventories the quarter We slightly Balu level low, is be increase we're some in fell also X.X sell-through of which level prior and dividend share sell from we in to and will the in up at

point, slowdown through some compared increased June some their flat strength in declines our in or that the situation, be handset OEM cell dust as Nevertheless, Looking is to customers we business to share believe that with cell of the offsetting the We our share the fourth phone perhaps quarter on and X%, likely to at the looking the magnifying industrial continued as plus categories. to when are early level handset have in Huawei materialize believe ahead, that a and achieving phones current we chargers. the advanced Huawei first settles gains reflect computer the success strength old we market, quarter. expect by of building will OEMs, the quarter revenues minus do seasonal capture in

percentage expect we low, of being a communication a March margin. as For the lower quarter, gross mix, in revenues seasonally with to the resulting industrial increase

expect Specifically, approximately be to XX%. gross QX non-GAAP margin in I

this favorable be as QX. The beginning However, stronger should year the watermark the I direction cost be quarter in by Dollar low expect offset to be the half more mix to a a I of year, improve largely expect though Japanese in headwind in second versus initiatives. Yen the the reduction the for March will impact

expense the in about the As million with and be stay non-GAAP be hiring and XXXX. I that rebound basis. late rate barring for with full administration. law point $XXX,XXX a QX to and gross $XX.X and modest After some I in a XX% should to fourth level XXXX in during year and resuming very non-GAAP changes decline around tax XXXX QX under X% income to compared at remain expect a result, a a on our do should year mark. in expenses growth margin expect impact The should full early any forward. events the XXXX, quarter tax going a the modestly similar from to around at operating deferred the travel year QX effective full be Other potential the new year around

Finally, Q&A quarter And to per operator, session. I count year. let's the the share now throughout roughly the expect begin by shares diluted rise XXX,XXX

Operator

from Karl first [Operator Instructions] from question Cowen. Your comes Ackerman

KarlAckerman

Yes, question, my taking good the first afternoon, on industrial are my Appreciate it's gentlemen. Sandeep, question. you for business.

important that go mix area about gross is visibility the throughout of is and year, the could Given margin how business the quarters? the leverage for next the the as over to the power high talk you few we

SandeepNayyar

So grow the may segment the grow. at be It'll of that bit. the in we the all down kind seems be of well We to a the year. in that the expect I not as because for I year at we of because positioned. talked our four projects earlier things fact, industrial slowed pace. pandemic resuming still coming slower. think But had same about are expect segments to a theme. We still very had And think our the be pandemic, to And

BaluBalakrishnan

Let in the has Because business lot term, the are bright me the electrification. investments renewables there around a you of made longer look future. in add and power high a very world, also when being

just help. And believe with stage. announced will trillion $XX like to zero-carbon plan. center get new carbon also energy administration, we example, invest XXXX. are planning recently to that'll to efficiency country the For And zero the something by become a And they the US, renewables and China

not Europe have course, the all pushing been in and Of long of the those always designing the delayed even are to the term, products, continues to due our designed the short good are projects term very we challenge pandemic. ability because impact In in, leader electrification, which are renewables the we where only infrastructure pandemic, the so drivers. a and of has to in

KarlAckerman

that. Appreciate Yes.

a we've supply several the across between margin And up wafers commitments prices follow raised plays heard across your input is customers? particularly volume the outlook, higher Thank or strategy your foundry. from also of role. a as having mix comm's pricing other your my so, But shortage chain know suppliers I regarding given prices, For function you tradeoff of about could costs? if talk the you. and

SandeepNayyar

increased have because customers. our we not have We prices long-term

year. been prices However, this our have firmed

We to haven't normal the extent. the decline same had yearly

because our in normally of costs, definitely the will there's said, not gone you the when to we're to pricing But some that push So try has it say at costs. help. terms much - to capacity the slightly limit it the always up we're we I do But do. as But as passing the decreasing moment, price on customers. we not as extra

Operator

Svanberg Your next Stifel. from question comes from Tore

ToreSvanberg

in you more Yes, strong and supporting devices, interfaces Balu, you more And that, chargers these the as that Because now about really thank more congratulations bit impact dynamics devices. to X, X have USBPD charge X, the a the assume, like many have I does seeing can with and you of results. you as how we're on now business? talked for multiple device quite would a content. that

BaluBalakrishnan

us for will one that products. InnoSwitch require of our of advantage ports typically Thanks the multiple Tore. is port Yes, each

actually there multi-port two two design. most And InnoSwitch will if you build that's to products. efficient way a the be have So ports,

that So benefit. the is

ports. essentially was if triples, ASP Our it's and doubles it ports two three

So that's huge a benefit.

multiple The multiple port And means to is, other want the efficiency GaN size and increase having also to use products. end significantly. you you the typically benefit to have That power. base up ports, when are go our you higher reasonable, you to keep chargers

use has have higher a will by inner than our So silicon GaN ASP definition, much to switches. they GaN, based and

by to of which that all in And important for So designs, capacitor the reduces last multiple of becomes is this, also to size. GaN in in a uses size. addition helps. current The input also MinE-CAP again input this, issue. typically the size addition get that MinE-CAP because CAPZero then one usually, to we product, reduce also or once the our you the capacitor very becomes higher, watts have XX But to an also like the way, something

meet to normal use the So to you CAPZero consumption. have

like them something sell to two-port in began a different three get and we chips, so And design. could four of

huge us. So for ASP that's a increase

ToreSvanberg

know context just understanding watts. XXX that's marketing limited some to there. at I but XXX is see charger if manufacturers don't approach is I great a some I'm watts. mean, PD to That's And my starting adapters by

proprietor something So be and that standard into? is that that perhaps you is shipping a would

BaluBalakrishnan

watt is each XXX XXX charger; port within of actually USBPD is watts, two the charger standard. his The one which

However, they or not, the use one use to are some of do orthogonal they do OEMs, don't whether in protocol, we not because own especially their which use China, do we USBPD, which they any what protocol. USBPD care

to on connect the input charge So it to is designs. handle quite phones dramatically. the some XXX can port is And watt time true, two OEMs it reduce that them working that are true the watt XXX

ToreSvanberg

good. question Sandeep quarter be a pretty to for bit do days you'll up Very things so Sandeep; you going this or inventory tight, be One XXX, little those that's think last get at able to tough?

SandeepNayyar

All right.

the the you playing with in dynamics So QX, exactly being QX think remember, to before, weeks about talked QX, out low, I which so demand thought. the being there, you channel I if I still and as is

you thought hot. little were You a turning

little our think I that got - meet all to are demands but we it'll the So we longer customers. a absolute do we capacity. making take are And of we've sure

problem I up as And in XX terms. within you our going a But day's think model. XX while. take know, wouldn't So little it's to be it'll a

can So upside way that more to can, so demands. any we if would we we that like it need keep

Operator

Bank. comes from Your next question Deutsche from Ross Seymore

RossSeymore

smarter to Hi, beginning really on year close the and strong congrats and one. a year even guys, this to

you channels within the Is that the there lean little inventory you doesn't the your limiting strategic side be hold. to a constraint supply supply see how or are guys issues revenue growth bit very you're next quarters? seem the any supply now, at know I books about all. But equation and impacting leaner. the So two you of quarter much your

BaluBalakrishnan

we actual very their because very everything with to are want be then what know How inventory. But believe their much they sure talking get But the don't demand, surprised we us is? capacity. can of to safety build, demand make From going they customers. actual careful, we demand we we've how we to closely able build meet multiple they sure to reasons. a said had if the meet for upon demand. they they we at very make days quickly to can are They and demand the end inventory necessarily that inventory the parts. And helping is actually demand depend the able And obviously are They the the everything you that not our to June, goal really, been hurt any customer. will the of really expand is inventory, stock XXX do forward One are that's built we us. remember lot at we our want of

downturn, The kept running, preserve able our second we so benefit that the even of were we is during to the foundries capacity.

these And shorter we if expanding lead take testers an is times. much those where area and the So in that's assembly are capacity there are equipment. the backend,

that it speak. doing So demand as we we expand and we are the can as increases,

have with we we'll to back goal than But inventory is more right customers. by much our the think us, enough quarter. of all so of we serve that the So the keep capacity as this end can on the end now

customers not As around that to all our serve allow the to soon we inventory build as well. allow does our world is inventory, customers us spread

to is not that. do So our goal

the satisfied only build underlying of real demand. inventory all allow we will have We once them to

we've able and QX to QX. been do that So in

higher And the is ability are than So we until that do our very continue will to demand. significantly to our ship happy. customers

RossSeymore

little Thanks now multi handset on how otherwise? there, side. talk la shifts be useful seasonality a wireless out Can we're even bit then of carte Balu. but box, a they it shifts? of of detailed or seasonality things, the you chargers, Is And about talking the that framework how the answer kind just the a for quarter side whether

BaluBalakrishnan

in a out one want other of OEM, in if of the of that phone two are fact, one charger, phones. the throw sense. only you same a out went of they'll on box And words, box, the a in which is price the have broad who gone the There in at is China, as buy high and they them, of the with the gone without box has they there said the out other Well, the who charger OEMs, you only one three. In charger. that can end

customers the are do. what to guess So going

use end box, is it's number in of I even the out term, entire though will the believe up a I shifts end to units So ability short be But is to long down. small, charger. impact us. of going faster And relatively in the the low if even the will unknown. to we it negative have everybody reason the that, for term And that think the the to have the line most But clear we go say faster product buying exposure people a chargers. not

some that So higher, the will charges attachment the slower sense, in lot rate to fast of be charger the are relative a cheaper.

one that's So aspect.

the The the aspect growing promoting really or guys volume just taking fast how of rapidly. is advantage box aftermarket out and is it happening. It's it's of the is aftermarket the amazing are very second

aftermarket capture on wait the these to accessories. so are that the can charger they And gross means as want the hey, a attractive margin that have as minute, so I saying, that a OEMs

ASP with chargers going which compete in chargers, So in of in they to terms of the incentive is because out there build terms of higher attractive terms to aftermarket is be power, now now means chargers OEMs with directly chargers. that in a for of ports, our strong are much that size, and aftermarket these competing multiple box

our So content go we think up; up. go will dollar profit our overall, will

SAM, means This phone charger larger mean chargers become of I the business. term. you actually also that of power higher so is for if portion will. us a will good think And the we long this cell

SandeepNayyar

indicated the in the short Balu trend for is the term. what Ross, So future

is Huawei I seasonality. happen situation can talked impact with that But the a is dynamic the will because And move the term think level, that's of the power that Balu about why actually the for about thing of of us indicated changes box we QX long out to level. definitely good And I power dynamic. the the the the and talked QX, with very play. QX, that what high

RossSeymore

Thanks that just that. different the customer and is to kind you're versus names buying you just shares, that patterns, monitoring to these you seasonal report et on color otherwise that et gives it caution Is mentioned, little people awesome of just clarification it One that obviously guide? about go Multiple on that are people pause gets that for incrementally Sandeep. what that topic buying, magnitude cetera. a without the of multiple give commentary sheer bit just customers and about what's leading you cautious cetera,

BaluBalakrishnan

the major and know cell each total of information number we Well, is well available phones the known at market. in OEM open exactly every

us at Huawei know And going we to is that easy multiple how much look number to So total share it's is for losing. people.

to So will people. go different of to out it's easy likely figure that how much

the share much gains we one of don't will take, we total. how OEMs the know serve exactly we each but know Now,

well. are to are that us to reasonably make overall to know that going demand we can But out that shipping of much. it's not too need. how be for each so shipping, hard we what very using sure we manage much figure Obviously, do So them the able the over one we is we are

Operator

comes Capital. question David from Loop Williams next Your from

DavidWilliams

touch could business of the bit Yes, think just the the GaN and could GaN? much the products then maybe that been you've between on within ASP you and a for portfolio thanks the magnitude based. how your to importance you because do able capture the taking the you and the a wanted of kind on based of silicon question. maybe if And differential little if GaN congrats to of quarter I see

BaluBalakrishnan

very chargers. than I ramp GaN the for roughly revenue much to GaN slightly this us it it fast on clear use as are more multi-port the XXXX, versus the we is But to GaN be XXXX. I to could - maybe designs reasons of increasingly, business. guys in that doubled with should beginning business, earlier, GaN as size, double, the is say differentiate and accessory it'll large mentioned the OEMs, of is growth get revenue weight, rate finding And doubled and revenue to we're products, be The is so aftermarket on compete the extremely XX% than terms triple say. lucrative efficiency, actually for an year now. more they of It our so GaN from portion are the In is their aftermarket right can products we what

engineer, I that, have above into that I will level. certain So we accessories. year where make to in OEM and GaN is inroads here, of will But silicon chargers will a and as end significant believe this believe high shipping for phones we're different it outside we technologist building customers XXX that about data, they into shipped significant are replace even of power shipping an - XXX QX; we GaN Right this business are get beyond cell we customers different XX into. our products. But beyond as of all applications now

proven Our be GaN is cost the very in reliable very field. to effective; it's

in field so the though single roughly about even GaN related we And think than GaN about XX shipped we've watts, GaN. a products. lot is more all a attractive had haven't of failure far, of that our silicon We for

speak. So GaN, and new our almost as we are they using now products will GaN all of use

technology. where phone notebooks building with TV are consumer industrial also cell And a market, number being in market we we winning differential competitors. capacity like proven think And advantage of the market. course are market. our in computer in significant GaN So appliances, the but we already that's offer will and because also and us a over of our the And designs

DavidWilliams

maybe of within helpful I tail can. difference today, about in Great, It you the given kind there? at thanks in that just a for the seen the the constraints helped then cycle. lastly segment. qualifying But any or just color we're there. that's It know of seeing acceleration any automotive I very automotive and if kind you is have thinking design long all force market is that

BaluBalakrishnan

see difference, know next will any wins, are make be so are before where long will the than motor, the we the actually to longer And terms XXXX because multiple won't driving it the issues something the qualify short-term cycles time because automotive, working you much and revenue traction OEMs. car. we in within we year, had if from takes it with those of design probably we that motor Actually, like part a power are is design supply of in driving

from before start we power So coming our will supply chips. that, revenues seeing

released automotive LinkSwitch our have of we example, product. the version the Qspeed For released diodes version automotive we have and of InnoSwitch our

those All because will shorter of car have go get related, designed lot therefore they not parts into faster of cycles. and safety in are that design the they

So year expect to this increasing, we seeing the start when are little drive revenue some bit but will come train. the a in gradually big we increase of revenue,

Operator

from Your Richard question Northland Capital comes next from Gus Markets.

GusRichard

Yes, thanks my for offer a strong taking congratulations let me and quarter the to and question year.

revenue on they GaN that now and what Just of family? what percentage are of product the products, rate sort growth of is

BaluBalakrishnan

to we've said, calculate just will than be be to can year, triple double, be XXXX. which more the in probably millions it it as to million $XX over XXXX. revenue. you worth $XX total the we $XX expect million and And the as ratio revenue. said year somewhere was Well, then it as that million of much It'll revenue, in what where digit in last is was I mid-single - It this

GusRichard

the of supply base to the just product, epi well then wafers situated are terms for And in wafers? it. the of you Got

BaluBalakrishnan

Absolutely.

the constraints at base We all have papers. no on

GusRichard

Okay.

to need need any You capacity. add vendors - your don't

BaluBalakrishnan

No.

GusRichard

expect about thoughts Got Do play in cell I talk out? the will you how you the how bit about And us year off year on seasonality Can days. on year, it. little you seasonality for for know Ross a Could overall it'll line? little bit terms a out of of you these asked - seems color give your the on then think play top phones. full

BaluBalakrishnan

lot Well, there happening. are dynamics a of

is charging is us. fast requires of is driving is First taking which power up, XG even good levels all, power. which more for good The for off, which us,

are are gaining share are from we share and our So our OEMs we distorts competitors, share, gaining from and Huawei. that gaining

multiplying QX, Huawei estimate, phone To after estimate we depends grow. will term really cell this of believe we revenue continue that, we grow, the upon factors. it lot a So itself. And which best can there's resolves situation only to our in how short can

to And of then the will so XG bit softness, a how whether much we the absorbing or in going question grow to will maybe and of little it it's know fast continue QX, is chargers. this start

the whole for well So phone extremely revenues in cell XXXX. should year, the do

GusRichard

one get expect other first, Yes. trying in similar the PC ex get I of or to cell to behave your was as of was expect a seasonal and to have year revenue, normal types they you I pieces to will industrial would consumer phones? trying impacts, at

BaluBalakrishnan

convenience more - think example, consumer grow, I is It seasonality to because pent-up a in which demand because the for home want too goods, high different are continuing is is they and will because in demand of the in Appliances they the home. people be back appliances. very far are at company appliance are QX. pulled staying And

appliance online. and adding an to have serve go the of So now It's to they appliances sale. be don't appliance. of consumer which are directly type able have to the selling to more people to want to to companies business most customers that, buy online, are to means because Most they from store buying inventory

that - are demand so cell for sorry And from a major appliances. companies consumer what phone we significant seeing is all

We the surprised distorts if that be So demand QX. the through seasonality. continues won't

is half more to second The always challenging predict.

demand. there total short is the increased right believe demand. long-term is bookings we an higher In to underlying term, are now have seeing the We the than obviously

the we once report will. we Having downturns. like seasonality always you an are half. said I very we So we the if are this confident half demand second are gaining that read, And that a do like cannot are during very kind some the second very, this of over year. believe as share also that, you could market But we the in we result, we will grow tell adjustment the have you about well exact bubble, have confident

Operator

comes Rolland next question from from Christopher International. Your Susquehanna

DavidHaberle

to Hey, congrats the there behalf I terrific for guys knock-on here. have. constraints question other of Chris But on guys Haberle seeing this you're any can't guess side or there ultimately the a that on at build quarter demand of go you a where find guys, way other and to you're David customer you Is components? good have device is because they gauge been Rolland. our it's meeting any who effect customer kind haven't taking that that what much on supply the Thanks can't has real seen pretty point?

BaluBalakrishnan

customer serve right. other their why asked whatever do We can't monitor And to we carefully. lost we've components. because is No, all for, because then it's other sit very don't then components. ability to they going ship to want inventory, get customers. And you're the they times that's Many can't that our in other absolutely procure

the surprisingly, them, So definitely you don't are you cooperative, have customers But will telling okay, but will been make parts please we we need. get inventory. sure build the extremely

all on managing to hard we which so lot the But is that's we what weekly on manage we believe work. I are And that daily doing they a successful very a well only understand I surge is have customers. our of served upswing way it basis, for in been this it are are basis, that. making a And And customers been so think has taken sure care of. that

that QX. with many of IC And have more takes companies work had us. to They've fact, that. to to customers that. other a it with But challenges through They In lot least continue best the we us do than are say at have will supplier. do we told

DavidHaberle

by then And approach, very for it. the a I up, think Got it's follow way. my prudent

have to tailwind seems might you nice when a you a for demand the replenish you any visibility to like into be my visibility at replenishing to down slow channel? have some think building guys able and Do as follow you channel? For when inventory little you. point bit, you'll It up, might allow and do start customers that

BaluBalakrishnan

QX. Yes, to New that's depends the little Lunar demand To a may able the to happens best what estimate, we Year. upon think the we really channel bit replenish be It after question. good in a can we

guidance wait New and is plus Year, outs XXX taking account when and or There X%. to have could there the which so are see. we be we some minus we saying we that So into of on. always are a are the all that projecting is concern But push that after

in if inventory the build demand our difficult So, at then bit continues, our channel a to - customers. our or it's at either

of is of want concern we semiconductor many happen. gaining or over And emphasize that's and know But don't half, too phones, customers basis, what half. that perform I there Yes, year inventory is might this I many will the our goods again. analog relative market more finished Now built our cell may they share, in over might the not appliances, built. to have a too in which whether believe again, in softness that. have may they the second And anticipation might be on do have we second

Operator

That I call turn back was our to the over will last question. the At presenters. time, this

Joe Shiffler

listening. everyone investor call There thanks website, Thanks replay investors.power.com. listening available our on of Okay, be for a for afternoon. this good is which will again and

Operator

Ladies and participating. for conference this call. concludes today's you Thank gentlemen,

may You now disconnect.

Joe Shiffler	Investor Relations
Balu Balakrishnan	President and Chief Executive Officer
Sandeep Nayyar	Vice President of Finance and Chief Financial Officer
Karl Ackerman	Cowen
Tore Svanberg	Stifel, Nicolaus
Ross Seymore	Deutsche Bank
David Williams	Loop Capital Markets
Gus Richard	Northland Capital
David Haberle	Susquehanna International

Power Integrations (POWI) 3 Feb 212020 Q4 Earnings call transcript