Semiconductor IPO: MEMSIC Inc.

MEMSIC (MEMS), a provider of advanced semiconductor sensor and system solutions based on MEMS technology and mixed signal circuit design, is expected to go public this week.

All quotations are taken from the company's most recent SEC filing with a link provided.

MEMSIC (MEMS)
Business Overview (from prospectus)

We provide advanced semiconductor sensor and system solutions based on integrated micro electro-mechanical systems, or MEMS, technology and mixed signal circuit design. Our accelerometer products are used to measure tilt, shock, vibration and acceleration, and have a wide range of applications such as mobile phones, automotive safety systems and video projectors. We combine proprietary thermal-based MEMS technology and advanced analog mixed signal processing circuitry design into a single chip using a standard complementary metal-oxide semiconductor, or CMOS, process. This approach allows us to provide sensor solutions at a lower cost, with higher performance and greater functionality than our competitors. In addition, our technology platform allows us to easily integrate additional functions or create new sensors to expand into magnetic, touch and flow sensors and related applications.

Offering: 6.0 million shares at $11.00 - $13.00 per share. Net proceeds of approximately $63.1 million will be used for expansion of manufacturing facilities, working capital and future strategic acquisitions.

Lead Underwriters: Citi, Jefferies

Financial Highlights:

Our net sales increased by 104.7% to $18.8 million for the nine months ended September 30, 2007 from $9.2 million for the same period in 2006...Our cost of goods sold increased by 109.4% to $6.4 million for the nine months ended September 30, 2007 from $3.1 million for the same period in 2006...Our gross profit increased by 102.3% to $12.3 million for the nine months ended September 30, 2007 from $6.1 million for the same period in 2006. Gross margin for the nine months ended September 30, 2007 and September 30, 2006 was 65.6% and 66.4% respectively...Our overall operating expense increased by 70.2% to $7.2 million for the nine months ended September 30, 2007 from $4.2 million for the same period in 2006...We recorded net income of $4.7 million for the nine months ended September 30, 2007, compared to a net income of $0.8 million for the same period in 2006.

Competition:

The market for sensor products, including accelerometer products, is highly competitive and dynamic and is characterized by rapid technological changes, evolving industry standards, price reductions and rapid product obsolescence. Our ability to compete effectively depends on defining, designing and regularly introducing new products that meet or anticipate the design needs of our customers’ next generation products and applications. We face competition primarily from traditional capacitive/piezoresistive-based accelerometer manufacturers.

Additional Resources:

• Company website
• Online road show
• SmallTimes.com: 'Popularity of MEMS-based products bodes well for MEMSIC IPO'
• AP: 'Memsic Discloses Expected Terms of IPO'