1. The last 10Q mentions two customers that comprise a significant portion of POWI's
business. Do we know who they are, either I missed it or they are known as Company
No customer accounted for more than 7% of rev last qtr according to my notes. Motorola was big customer in 97 but dropped off significantly in Q1
2. Products - Should POWI sell plenty of the TOP200 switchers instead of the
TOP100, since they can operate from 85V to 265V (hence globally), or do you expect
sales of TOP100 to occur in the USA, since the range in voltage is not required? How
much do the TOP100 and TOP20 sell for?
I think the vast majority of sales are TOPS200. Overall ASP about $.87
3. Matsushita and Oki manufacture for POWI. I read that the OKI deal is just about
up, and they are re-negeotiating the contract. Would you expect that they will be able to
secure a better price, now that the industry is in a slump? If so, wouldn't it make sense
to secure a long-term contract, if prices are low?
OKI contract was renegotiated; do not know details. It accounts for 70-80% of production
fully in place. In the 10Q, I noted a statement that POWI received "strong initial orders
from two new customers with major programs". Any idea if this is cell phone related,
set-top box, or ... ?
A major program for USB monitors started last Q (Phillips). The other one may be Nokia or Iomega
8. Tax Rate - 25%. Is this expected to change, or can we play with this rate for a while,
since they are an IPO, or for any other matter?
Tax rate will be 25% for year.
10. How much does the $/yen exchange rate affect POWI? I read about that in the
10Q, is it a serious factor, medium factor, or is it minor? Would it affect gross margins
by more than 10%, if there was a huge shift in the exchange rate,
exchange rate can be big deal since POWI pays for wafers in yen. It has also been an important hedge against pricing pressure from Korean competition. Negative impact would be if yen bounced back strongly. I imaging at some point the company would by yen futures contracts as hedge. |
