Inphi Corporation (IPHI)

This company completed an initial public offering (IPO) of its stock in 2010. View articles that reference this company. Recent IPOs:   Globe Specialty Metals   •   LogMeIn   •   Invesco Mortgage Capital   •   Medidata   •   Chemspec

 

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Remi Cossart

Inphi Corporation (NYSE:IPHI) provides analog semiconductors which are used in communications and computing markets. These semiconductors convert information between analog signals, which travel to the device, and digital signals, which can be computed and used within an electronic device. These products are used in electronic devices made by companies such as Samsung, Dell, Oracle, IBM, HP and others. Although the company sells its semiconductors to over 160 customers, sales to Samsung accounts for 36% of their total revenue.^[1]

Inphi plans to focus on the high signal integrity at high speeds market. In other words, Inphi's strategic goal is to become the leader in high performance semiconductors.The company believes that the demand for such goods in this market will rise substantially as video applications, cloud computing, and mobile internet devices become increasingly popular. These types of products require greater speeds, greater bandwidth and increased accuracy of transmission, at potentially higher costs.^[2]

The company's initial public offering of stock on the NYSE occurred on November 10, 2010. The company offered 6.8M shares each for $12. This was within the initial price ragne of $10-$12. The IPO raised a total of $82M. The lead underwriters of the deal were Morgan Stanley (MS), Deutsche Bank AG (DB), and Jefferies Group (JEF).^[3] As of October 2010, the company had accumulated $37.6M in debt, and plans to use the revenue from the IPO to pay interest on its debt and fund continued research and development efforts.^[4]

The company's total revenue has risen over the past 3 years. In 2009, the company reported $59M in total revenue, which was a 37% increase over 2008. Inphi also reported its first net profit in 2009 of $7.3M. The company had reported a net loss up until then.^[5]

References

1. ↑ IPHI 2010 S-1 PROSPECTUS SUMMARY "Inphi Corporation" pg 1
2. ↑ IPHI 2010 S-1 PROSPECTUS SUMMARY "Inphi Corporation" pg 2-4
3. ↑ Renaissance Capital - IPO Home "Inphi prices IPO at $12, high end of the range" 11 Nov 2010
4. ↑ IPHI 2010 S-1 PROSPECTUS SUMMARY "Risk Related to Our Business" pg 4
5. ↑ IPHI 2010 S-1 PROSPECTUS SUMMARY "SUMMARY CONSOLIDATED FINANCIAL INFORMATION" pg 6