67 WALL STREET, New York - October 2, 2012 - The Wall Street Transcript has just published its Semiconductors Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs, Equity Analysts and Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
Topics covered: Semiconductor Capital Equipment - Cloud Computing - Mobile Device Consumer Demand - Enterprise Data Storage Demand - High Computing Power Technology - Semiconductor Inventory Burnoff
Companies include: IXYS Corp. (IXYS) and many others.
In the following excerpt from the Semiconductors Report, the President & CFO of the IXYS Corporation discusses the outlook for his company for investors:
TWST: Please provide some historical context related to the inception of IXYS.
Mr. Sasson: The company was founded by Dr. Nathan Zommer, who currently serves as IXYS' Chairman and CEO, in Silicon Valley in 1983. Backed by strong organic and acquisitive growth, IXYS has become a premier international power and IC semiconductor company with a broad offering of technologies and products. Today, we have 11 divisions worldwide, four in-house fab facilities and more than 1,000 employees.
With more than 350 patents constituting our I.P. capital, IXYS' technologies are often considered some of the most innovative on the market as evidenced by competitors who often purchase our products. We cover 90% of the power spectrum, with power semiconductors, MOSFETs and IGBTs, solid state relays, integrated circuits, microcontrollers, and radio frequency power and systems.
All of our products seek to accomplish one goal - energy conservation. As companies increasingly seek to improve energy-conversion efficiency, generate clean energy and advance automation, steering clear of fossil fuels, IXYS products gain fast adoption.
Today, we have approximately 3,000 customers in applications ranging from industrial to telecom, medical, transportation, lighting, smart grid and renewable energy companies.
TWST: Over the next three years, what broad industry trends will prove most beneficial and detrimental to IXYS?
Mr. Sasson: Consider the increasing automation in industry, advance LED lighting systems, the evolution of "smart" cities, feature-laden consumer electronics, mass transit systems, hybrid/electrical vehicles, etc. Yet the demands for electricity - clean uninterruptible power, voltage needs, higher-power density and efficiency - outstrip supply. Power semiconductors can help bridge the gap.
Recent research estimates put a price tag of $20 billion on the 2012 market for semiconductor devices, discretes and modules, dedicated to the power electronics industry. We can infer that this market will grow in the years ahead, exacerbated by worsening demand/supply constraints. Focused on the power market, IXYS is well positioned to capitalize on this industry growth.
Difficult macroeconomic conditions weighed heavily on the semiconductor industry over the past few years. IXYS admirably weathered this storm, recording its two highest fiscal revenue years in 2011 and 2012, while main competitors fared much worse. We have been able to generate real cash profitability year over year due to maintenance of an efficient operating environment. Because of our careful cost analysis and streamlined business practices, even modest sales can result in positive cash flows.
TWST: You briefly referenced demand for power semiconductors in various applications. Would you provide additional detail on three or four of these applications?
For more from this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.