Chip Maker Inphi Corp. Prices IPO at High End of Range

| About: Inphi Corporation (IPHI)

Inphi Corporation (NYSE:IPHI) floated its IPO yesterday November 10th. The company sold 6.8 million shares at $12 per share, the high end of its $10-$12 expected price range.

Business Overview (from prospectus)

We are a fabless provider of high-speed analog semiconductor solutions for the communications and computing markets. Our analog semiconductor solutions provide high signal integrity at leading-edge data speeds while reducing system power consumption. Our semiconductor solutions are designed to address bandwidth bottlenecks in networks, maximize throughput and minimize latency in computing environments and enable the rollout of next generation communications and computing infrastructures. Our solutions provide a vital high-speed interface between analog signals and digital information in high-performance systems such as telecommunications transport systems, enterprise networking equipment, datacenter and enterprise servers, storage platforms, test and measurement equipment and military systems. We believe we are a leader in 40G, or 40 gigabits per second, and 100G, or 100 gigabits per second, high-speed analog semiconductor solutions for the communications market and high-speed memory interface solutions for the computing market. We have a broad product portfolio with 17 product lines and over 170 products as of December 31, 2009.

Offering: 6.8 million shares at $12.00 per share. Net proceeds of approximately $81.6 million dollars will be used for working capital and general corporate purposes.

Lead Underwriters: Morgan Stanley (NYSE:MS), Deutsche Bank Securities (NYSE:DB), Jefferies & Co. (JEF)

Financial Highlights:

For the year ended December 31, 2009 and the three months ended March 31, 2010, our total revenue was $58.9 million and $19.1 million, respectively, and our net income was $7.3 million and $12.0 million, respectively.


Currently, our competitors range from large, international companies offering a wide range of semiconductor products to smaller companies specializing in narrow markets. Our primary competitors include Broadcom (BRCM), Hittite (NASDAQ:HITT), IDT (NYSE:IDT) and Texas Instruments (NYSE:TXI), as well as other smaller analog signal processing companies. We expect competition in our target markets to increase in the future as existing competitors improve or expand their product offerings. In addition, as we continue to develop our 100G semiconductor solutions for enterprise networks, we may face competition from companies such as Broadcom and NetLogic (NASDAQ:NETL).

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