EX-99.2 4 dex992.txt PRESENTATION FOR AEA CLASSIC FINANCIAL CONFERENCE Exhibit 99.2 Header of all slides more than solutions - enabling possibilities [Logo] Microsemi AEA| 11/2/2001 | http://www.microsemi.com Slide 1 Investor Overview Presentation "Click Here for" Webcast Replay Slide 2 Disclaimer . Some of the information in this presentation may contain projections or other forward-looking statements regarding future events or the future financial performance of Microsemi Corporation. . We wish to caution you that these statements are only predictions and that actual events or results may differ materially. We refer you to the documents the company files from time to time with the Securities and Exchange Commission, specifically, the Company's most recent Form 8-K, 10-K and Form 10-Q. . These documents contain and identify important factors that could cause the actual results to differ materially from those contained in our projections or forward -looking statements. Slide 3 Company Overview . Semiconductor manufacturer -- Founded in 1960, core strengths developed in military/aerospace and medical markets . Executing on 3 Point Strategy -- System engineered solutions, increasing gross margins, leveraging intellectual property . Operational improvements -- New management team improving bottom line . Diverse market strategy provides stability -- Broad customer base, none > 4% of revenues . Increasing R&D - Developing our Future -- Focus on 5 key Circuit Solutions that are fueling company growth . Strong Financial Results -- Stability in rough markets, long term earnings history, improving margins, strong balance sheet Product Mix FY02E Power Management 29% Transient Protection 16% Power Conditioning/Discretes 38% RF and Optoelectronics 17% Top 20 OEM Customers (FY01) Rank Customer Market/Application ---- ----------------- ------------------------ 1 Boeing Satellites/Military 2 Guidant Medical Implantables 3 Seagate Disk Drives 4 Motorola Mobile Phones 5 Alcatel Fiber Optics/Satellites 6 BAE Systems Military/Aerospace 7 Rockwell Military/Aerospace 8 Lockheed Martin Satellites/Military 9 Robert Bosch GMBH Satellite Communications 10 Agilent Telecommunications 11 Dell PC/Peripherals 12 Mitsubishi Mobile Phones 13 Loral Space Satellites 14 Siemens AG PC/Peripherals 15 Honeywell Military/Aerospace 16 Tecnologica Satellites 17 Delco Automotive 18 St. Jude Medical Medical Implantables 19 Raytheon Military/Aerospace 20 Solectron Various Slide 4 Company Strategy . Develop and Market System Engineered Solutions -- Work with customers to develop "must have" products -- Develop alliances/reference design wins .. CREE, Nitronex, APTI, Intel, Intersil, Atheros -- Re-utilize packaging IP to enhance performance .. Powermite as Power Diode or LED package .. MMSM as WLAN switch or LED package -- Combining application specific semiconductor processes .. Low voltage silicon (0.7V chips), InGaP (HBT Amps), InP (OC192/768 detectors), InGaN (Blue, Green, and UV LEDs), SiC (Schottkys) .. Mix and match depending on end application . Increase Gross Margins (Goal of 50% or better) -- Consolidation of business units, focus on utilization -- Introduce higher value added/higher gross margin products . Experts at reapplying Intellectual Property -- Repositioning Core Competencies and Circuit "know how" into multiple market segments and applications [graphics of Four PDA's] [Intersil Logo] [Sharp Logo] [Harrison Logo] [Atheros Logo] [Intel Logo] [Picture] [Picture] [Picture] Slide 5 Operational Improvements . New Management Reshaping company -- Chief Operating Officer appointed -- VP of Human Resources appointed -- VP of Quality/Business Process Development appointed . Improved Incentive programs -- Now focused on operating income improvements -- Broader employee stock option program . Utilization Improvements and Consolidations in progress -- Florida and Hong Kong operations closed in FY01 -- Operational consolidations planned -- Easy to execute, have signifiacnt positive financial impact, under our control - not market or application dependent Slide 6 Diverse OEM Customer Base 14.8% Mobile connectivity [graphic of mobile telephone] Qualcomm, Samsung, Motorola, Compaq, Palm, Mitsubishi 12.0% telecom [graphic of pbx operator] Alcatel, Ericsson, Nokia, Nortel 13.6% industrial [graphic of welder] Coleman, PowerOne, Recoton, Magnatek 2.2% automotive [graphic of computer inside a vehicle] Visteon, Becker, VDO, Clarion 11.5% computers/peripherals [graphic of laptop computer] Dell, Seagate, Gigabyte, Compaq, IBM, Fijitsu 10.1% medical [graphic of Chest X-ray] GE Medical, Guidant, St. Jude, Biotronik, Medtronic, InSonus 35.8% mil/aerospace [graphic of Astronaut in space] Matra, Raytheon, General Electric, Bosch, Lockhead Martin, Boeing . Top 100 customers 70% Sales, none greater than 4% . North America 70% . Europe 20% . Asia 9% . ROW 1% . OEM 60% . Distributors 36% . CMs 4% Slide 7 Extensive product portfolio Product Group RF/Opto(17%) Breakdown 0% 48% 50% 2% I R T P D C F r h e s a o t (P A D n t e o m i s o c w p o i t e s) d s o r e t r s o s Markets Applications r -------------- --------------------------- s Mobile Mobile Phones, 2-Way Radios 50% x x x x Connectivity PDAs, Web Tablets 50% x x Base station/POTs 28% x x Wireless LAN 2% x x Telecom Set-top box 30% x x Fiber Optics 40% x x AutoPC/Navigation 98% x x Automotive Audio 2% Commercial Aircraft 10% Military Communications 10% Military/ Military Aircraft 10% x x Aerospace Missiles 10% x x Communication Satellites 40% x x x Military Satellites 10% Other 10% Medical Heart Defibrillators/Pacers 80% x x MRI/Ultrasound/Diagnostic 13% x x x Hearing aids 5% Computer/ PCs/Laptops/Servers 50% x Peripheral Disc drives 30% Audio equip 5% Monitors 5% Industrial/ Semi-cap/RF Generators 15% x x Commercial Power Supplies 40% x Pet Electric Fence Sys. 5% x x Power Management (29%) Breakdown 20% 2% 40% 15% 15% 2% 5% 1% L P A P L D S M P M M T i r u r i C C e r i o E g o d o n : S d o l/ d C h d I d e D I I d A u t u o u a C c u e l I i c c r a c r e C n t t l t o s s g s s P s W M Markets Applications s ------- ------------------ Mobile Mobile Phones, 2-Way Radios 50% x x x x Connectivity PDAs, Web Tablets 50% x x x x Base station/POTs 28% x x x Wireless LAN 2% Telecom Set-top box 30% x x x x Fiber Optics 40% x x x AutoPC/Navigation 98% x x x Automotive Audio 2% x x x x Commercial Aircraft 10% x x Military Communications 10% x x Military/ Military Aircraft 10% Aerospace Missiles 10% x x Communication Satellites 40% x Military Satellites 10% Other 10% x Medical Heart Defibrillators/Pacers 80% x x MRI/Ultrasound/Diagnostic 13% x x x Hearing aids 5% x x Computer/ PCs/Laptops/Servers 50% x x x x Peripheral Disc drives 30% x x x Audio equip 5% x x Monitors 5% x Industrial/ Semi-cap/RF Generators 15% x x Commercial Power Supplies 40% Pet Electric Fence Sys. 5% x TVS(16%) Breakdown 50% 20% 0% 30% E L E Z S i M e D g I n h e t r i s n Markets Applications g ------------ ----------------------------- Mobile Mobile Phones, 2-Way Radios 50% x x x Connectivity PDAs, Web Tablets 50% x x Base station/POTs 28% x x Wireless LAN 2% x Telecom Set-top box 30% x x x x Fiber Optics 40% x x AutoPC/Navigation 98% x x x Automotive Audio 2% x x Commercial Aircraft 10% x x Military Communications 10% x x Military/ Military Aircraft 10% x x Aerospace Missiles 10% x x x Communication Satellites 40% x x Military Satellites 10% Other 10% x x Medical Heart Defibrillators/Pacers 80% x x x MRI/Ultrasound/Diagnostic 13% x x Hearing aids 5% x Computer/ PCs/Laptops/Servers 50% x x x Peripheral Disc drives 30% x Audio equip 5% x Monitors 5% Industrial/ Semi-cap/RF Generators 15% x x Commercial Power Supplies 40% x Pet Electric Fence Sys. 5% x Discrete(38%) Breakdown 30% 2% 0% 25% 35% 8% P M S D S T o o i i c r w s c o h a e f d o n r e e t s m t s t i i k s t y t e s o Markets Applications r ------------- -------------------------- s Mobile Mobile Phones, 2-Way Radios 50% x x Connectivity PDAs, Web Tablets 50% x x Base station/POTs 28% x x x x x Wireless LAN 2% Telecom Set-top box 30% x Fiber Optics 40% x x AutoPC/Navigation 98% x x Automotive Audio 2% Commercial Aircraft 10% x x x x x Military Communications 10% x x x x Military/ Military Aircraft 10% x x Aerospace Missiles 10% x x x x x Communication Satellites 40% x x Military Satellites 10% Other 10% x x x x Medical Heart Defibrillators/Pacers 80% x x x x MRI/Ultrasound/Diagnostic 13% x x Hearing aids 5% x Computer/ PCs/Laptops/Servers 50% x Peripheral Disc drives 30% x Audio equip 5% Monitors 5% Industrial/ Semi-cap/RF Generators 15% x x x Commercial Power Supplies 40% x x x Pet Electric Fence Sys. 5% x x Slide 8 Mil/Space Product Leader . Virtually every military program since 1968 -- Military/Aerospace business 36% of total . Business helps develop commercial developments -- Advanced technology and semiconductor processes repositioned into high growth commercial applications [picture of Hemetic Power Modules] [picture of fighter aircraft] [picture of aircraft] [picture of electronic component] [picture of discrete electronic components] [picture of orbiting Satellite] FY01 Mil/Space OEM End Application Mix Military Aircraft 10% Military Satellites 10% Missiles 10% Military Communications 10% Military Ground Based Systems 10% Commercial Aircraft 10% Communication Satellites 40% Military Products RF/Optoelectronics
Microsemi Alpha Industies M/A Comm Semicoa Solid State Devises ------------- --------------- -------- --------- ------------------- High Freq Switches x x x Power PINs x x x x RF Bipolar Power x RF Bipolar Mobile x Photodetectors x x Power Management Microsemi IRF/Ominrel Linear Tech Semitech Sensitron Solid State Devices ------------- --------------- ----------- -------- --------- ------------------- CCFL Controllers x x Class D Audio x LDOs/Regulators x x x x DC:DC Converters x x x PWMs x x x x Ruggedized Modules x x x TEC Controllers x x
TVS Microsemi Semitech Sensitron Solid State Devices ------------ -------- --------- ------------------- Surge Protection x x x x Lightning Protection x x EMI Suppression x Zener Regulation x x x
Discrete
Microsemi Fairchild (Military) IRF/Omnitrel Semicoa Sensitron Solid State Devices --------- ------------------- ------------ --------- --------- ------------------- Power Rectifiers x MOSFET x x x x x SiC Schottkys x Signal Diodes x x Power Schottkys x x x x Transistors x x x x
Slide 9 Typical Fighter Content ~$300 - 500K per plane Cockpit Electronics - IFF (RF Transistors/PIN Diodes) - CRT (HV Diodes) - Backlit Displays (Power Modules) - Seat Ejection (SCRs) - Air Flow Control (Power Modules) - Fire Control (SCRs, Transistors) Power Conversion - Generators (SCRs, MOSFETs, IGBTs, Linear ICs) - Inverters (3 Phase Rectifier Bridges) Wing Electronics - Lightning Protection (TVS Modules) - Actuation (3 Phase Power Modules) - Missile Launch (SCRs) Power Distribution - Power Supplies (FETs, Schottkys, Rectifiers) - Logic Control Protection (TVS, Zeners) Motor Control - Wings (3 Phase Power Modules, PWM) - Canopy (3 Phase Power Modules, PWM) - Landing Gear (Rectifiers/MOSFETs, Drivers) Radar/Communications - Transmitters (HV Diodes, Varactors, PAs) - Antennas (PIN Diodes) - Amplifiers (RF Transistors) Slide 10 Developing Microsemi's Future . Focus on high growth, high margin product opportunities -- 8X min Return on R&D over life of product . R&D increasing -- 2.2% in FY99 -- 6.4% in FY01 -- Estimated 8% in FY02 . New part roll out increasing -- 4 Parts introduced in FY01Q3 -- 8 Parts introduced in FY01Q4 -- Estimate 40-50 products in FY02 . Optimizing Margin Mix of Product Portfolio . 5 Key Circuit Solutions to Fuel MSCC Growth -- Upside estimate of new products developed/introduced in FY00/FY01 Base Business + new Products MSCC Fiscal Year
FY01E FY02E FY03E FY04E Protection ~ 0 ~1 ~4 ~8 Temperature ~ 0 ~1 ~3 ~8 Power ~ 5 to 6 ~13 ~46 ~83 Sound ~ 1 ~7 ~15 ~29 Light ~ 14 to 15 ~22 ~48 ~93 Base Business ~ 223 to 226 ~237 ~277 ~304 Total ~ 243.2 to 248.2 ~281 ~393 ~525
NOTE: Amounts shown are estimates of projected revenue growth from new products. These estimates represent the average of the range of company estimates developed from external market research data, as well as internal company market and product forecasts. Amounts could change due to changes in market conditions, customer acceptance and other factors, whether known or unknown to the company at this time. Please refer to Microsemi Safe Harbor Statement. Slide 11 5 Key Circuit Solutions . Managing Light ( ~30% of R&D): -- Microsemi offers advanced solutions for CCFL and LED lighting systems and photodetectors for optical communications . Managing Sound ( ~20% of R&D): -- Microsemi offers Class D Audio solutions for low power and high power applications. . Managing Power (~30% of R&D): -- Microsemi offers the broadest line of discrete, RF/microwave, and integrated circuits focused on efficiently managing power. . Managing Temperature (~10% of R&D): -- Microsemi offers both integrated circuit solutions and packaging solutions that solve critical heat dissipation, optical tuning and control functions. . Protecting Circuits (~ 10% of R&D): -- Microsemi offers the broadest line of solutions for protecting sensitive circuits from ESD, Lightning, EMI, and Electrical Fast Transients Slide 12 Managing Light (CCFL) . What sets us apart -- Patented Fluorescent Lamp (CCFL) Driver Architecture .. 50% more efficient than competition .. 40%- 90% less components .. Full Range Dimming /Full Temp Range -- Application engineering .. Products designed for specific end markets --- PDA, Automotive, LCD TV products [graphic of AAA alkaline battery] [graphic of circuit board] . Applications -- PDAs (leader in CCFL lit color displays) [graphic of PDA] [graphic of PDA] [graphic of PDA] [graphic of PDA] -- Wireless Web, AutoPC, 3G Phones, Medical Displays, Voice Over IP Phones, Fish Finders, Pen Based computers . What's next? -- Ambient light tracking systems, auto-brite adjust [graphic of Auto PC] [graphic of AutoPC] [graphic of Parview Golf GPS] Application Major Design Wins ----------------- -------------------------------------------- Automotive BMW Automotive Clarion AutoPC Automotive Marelli (Italy) Automotive Mercedes* Automotive Rosen Avionics Kaiser F-22 E Book Go Reader E Book RCA Entertainment Boeing 777 Entertainment Sony InFlight Systems LCD Monitor Phillips LCD Monitor Samsung Notebook Compaq Armada PDA Compaq iPAQ PDA HP Jornada Series PDA Palm IIIC PDA Siemens PDA PDA Toshiba e570 Pen Computer Symbol Portable Pen Tester/Meter Agilent Optical Tester Web Tablet AirSpeak FLAIR Web Tablet Intel Web Tablet Nokia Web Tablet Sonic Blue/Number 9 Slide 13 Managing Light (LED) . What sets us apart -- Patented packaging enhances LED performance .. Optomite packaging (more power - higher brightness) .. Patented MMSM FlipChip InGaN/Silicon architecture --- Eliminates UV degradation, Lowers VF, reduces total system cost, 4" wafers possible -- LED Drivers to support LEDs .. Complete "Light Engine" systems . Products -- LX199X Series of 2, 4, 6 LED drivers -- Optomite Packaging for high brightness LEDs -- Optomite 3 Packaging for Large Area LEDs (5-8Watts) -- OptoMMSM flip chip for glass LEDs . Applications -- Low Power (Mobile phones, PDAs) -- High Power (Solid State Lighting, Automotive) . What's next? -- High brightness UV LEDs with integrated drivers Introduced Product ----------------------- --------------------- Oct-01 LX1992 LED Driver Future Releases Product ----------------------- --------------------- Nov-01 Optomite MB LED Dec-01 OptoMMSM Blue LED Spring 2002 Optomite UB/HB Summer 2002 Optomite 3 UV LED Item Value ----------------------- --------------------- Optomite Capacity up to 10 mil/month Optomite MB ASP ~$0.60-$0.85 OptoMMSM up to 5 mil/month OptoMMSM ASP ~$0.85-$1.25 [graphic of Optomite for Large Area LEDs] [graphic of MMSM FlipChip for Glass LEDs Resistant to UV] Slide 14 Managing Light (Photodetectors) . What sets us apart -- Advanced InP based process .. 10gb/sec, 20gb/sec products -- Volume manufacturing capability -- Responsivity to faint light signals -- Supporting complementary products .. TEC Controllers, ESD protection . Products -- MXP4000 Series of InP 10gb Detectors -- MXP7A Series of Flip Chip Short wavelength detectors . Applications -- OC192, OC768 -- Optical Processing . What's next? -- 40gb Detectors -- Integrated Photodetector (receiver) and TIA (converter) Microsemi Product Design Win -------------------------- --------------------- 20 gb InP Detector JDS Uniphase 10 gb InP Detector Cielo 10 gb InP Detector Optical Crossing 10 gb InP Detector Teledyne 10 gb InP Detector Aeroflex [graphic of circuit schematic] Slide 15 Managing Sound . What sets us apart -- Class D Technology based on PWM .. 40-60% Linear vs Class D 90-97% efficiency .. THD less than 0.05% . Products -- AudioMAXTM High Power Solutions (greater than 50 Watts) -- AudioMITETM Micro Power Solutions ((less than) 1 Watt) . Applications -- Flat panel speakers (no heatsinks) -- 900MHz wireless speakers (extended playtime) -- Hearing Aids (extending use from 3wks to 6months) -- Headsets/Earphones (16 bit, high fidelity, low noise) -- 5:1 and 6:1 Home and Automotive systems . What's next? -- Developing Class D Solutions for Mobile Phones/PDAs (battery consumption is everything) -- Eliminate the problems with Class D in Automotive and handheld systems (eliminate EMI) Microsemi Product Design Win -------------------------- --------------------- AudioMAX Benwin NXT Speaker AudioMAX IBM Speakers AudioMAX Recoton Wireless AudioMAX Altec Lansing AudioMAX Hamon Kardon AudioMite Knowles AudioMite Envision AudioMite InSonus AudioMite SoundParts Released in FY01 Product/Description ------------------------- -------------------- LX1710/11 Mono Class D LX1721/22 Stereo Class D LX1790 Hearing Aid Class D [graphic of Recoton/Advent 900MHz Wireless Speaker System] [graphic of Knowles Hearing Aid Receivers/Amps] [graphic of IBM Flat panel Speakers] Slide 16 Managing Power (RF ICs) . What sets us apart -- Advanced InGaP HBT Flip Chip Architecture .. Remove the heat, reduce the size -- System engineering/Smart Amplifiers .. Combining Power Detection, InGaP RFICs and high speed Power Management to solve major power consumption issues . Product - WCDMA PA (best performing PA) [graphic of thermal map and scale] [graphic of thermal map and scale] Surface Temperature - Stud Side [graphic of 3-D thermal map] [X Y Z axes] [graphic of circuit layout] Output Temperature (C) 500 71 .9903 69 .191 66 .3916 63 .5923 60 .7929 57 .9936 55 .1942 52 .3948 49 .5955 46 .7961 1000 43 .9968 41 .1974 1500 38 .3981 35 .5987 1000 32 .7994 Input Slide 17 Managing Power (Wireless LAN) . What sets us apart -- Military high frequency expertise -- One stop shopping .. Complete line of front end supporting products -- Patented broadband silicon switch technology . Products for WLAN [picture of discrete component] [Atheros logo] [picture of discrete component] [Prism logo] [graphic of Complete Antenna Switches for 802.11a/e, 802.16, UWB] 802.11a Antenna Reference Design [Graphic of circuit flowchart including ESD Protection TVSF Series, Baseband Processor MAC,Host Computer, USB, SRAM FLASH MEMORY, Clock Source, Synthesizer, Quad IF, Modem, DATA ADDRESS CONTROL, 3.3/5V IN, VCO, VCO, Bias Control, LX1734, LED Control, DC-DC Converters, ISDN, T1/E1, Ethernet, HBT, PA, Antenna, RF/IF Converter] Microsemi Product Company/Product ---------------------------- ---------------------------- PIN Diodes Ericsson 802.11a PIN Diodes Malibu Networks AP PIN Diodes Intel 802.11a Antenna Switch Xircom/Intel PIN Diodes Atheros Ref Design USB Protection Intersil Ref Design PIN Diodes Agere/Lucent 802.11a PIN Diodes REMEC PIN Diodes Actiontec 802.11a PC Card Antenna Switch Cisco 802.11a AP . What's next? -- Complete front end modules for "next" wireless standards (UWB) -- Re-positioning expertise to SetTop Box Access Points Slide 18 Managing Power (Medical) . What sets us apart -- Complete system expertise for Pacemakers, Defibrillators, and MRI Systems -- Complete circuit solutions that increase battery life, reduce size, and reduce cost -- Military/Satellite quality and reliability systems . Key Product Solutions -- Implantable Defib content rising ($50 to $350) .. Outpacing market growth with ASSP approach .. Reducing circuit size by 40%, cost by 50% .. Defib modules -up to 15 components per defib
Application Microsemi Product Cutomer ------------ --------------------- ----------------- Defib/Pacer Defib/Pace Protection Medtronic Guidant Biotronik St. Jude Medical ELA/Sorin Medico Charging Diodes Medtronic Guidant Biotronik ELA Medical St. Jude Medical Load Dump Medtronic Guidant Biotronik ELA Medical St. Jude Medical Firing Discretes Medtronic Guidant Biotronik ELA Medical St. Jude Medical Firing ICs Biotronik St. Jude Medical Neuro Protection Neuropace Neurocor Pulse IC Cyberonics MRI Body Coils GE Medical Toshiba Siemens
[photograph] [graphic of circuit board design] [graphic of medical diagram] Slide 19 Managing Power (Processors) . What Sets us Apart -- Current Sharing Voltage Mode Multiphase Operation (LoadShare) -- Patented architecture, best of both worlds
Method Microsemi Linear Tech Semtech Intersil Primarion Volterra -------------- --------- ----------- ------- -------- --------- -------- Current Sense * x x x Voltage Sense * x FET Sense * x x Polyphase * x x
*Patented Load Share (TM) . Our Products -- LX167X Family of Controllers -- Addresses major issues facing high speed video processor companies . Potential Applications/Customers/Partners -- Graphic Cards -- Game Machines [graphic of two monitors] [graphic of electronics schematic] [picture of a game machine] [Nvidia gForce 3 logo] Slide 20 Managing Power (Mil/Aero) . What sets us apart -- Extensive military qualified product line -- System engineering expertise -- Innovative and patented packaging .. Thermally matched packages (environmental extremes) .. Glass on Silicon . New Products -- Battery Bypass Modules -- Solar Cell Bypass -- Turbine/Generator modules (F22 and JSF) . Applications -- Satellites, Fighter Aircraft, Missile control system . What's next? -- Radiation hardened building blocks for low earth orbit, polar orbit, and classified military satellites Microsemi Product Recent Wins ----------------------- -------------------------------- Battery Bypass Thuraya Satellite 3Phase Module Sundstrand F22 Solar Diode Lockheed Battery Bypass Mitsubishi Satellite EMP Protection Raytheon/E-Systems [graphic of Hemetic Power Modules] [graphic of Patented Battery Bypass Modules] [graphic Radiation Hardened DC-DC Power Converter] [graphic of CoolPack and Thinkey Patented packages] [picture of diodes] [picture of aricraft] [picture of electronic component] [picture of fighter aircraft] [picture of discrete electronic components] [graphic of orbiting Satellite] Slide 21 Managing Temperature . What sets us apart -- Critical Heat management expertise .. Zero Atmosphere Space/ 98.6oF Human Body -- Extensive IP .. Packaging for passive cooling techniques .. Class D solution for active cooling .. Powermite patented packaging technologies --- Licensed to OnSemi, Diodes Inc . Products for Managing Temperature -- Thermo Electric Controller (TEC) ICs .. 3G Basestation and Optical Laser Cooling and tuning -- SiC Schottky Rectifiers (Alliance with Cree May-01) -- Military CoolPack patented packaging .. Used on F22 and Joint Strike Fighter [graphic of electronic components] [graphic of discrete components] [graphic of circuit board] Microsemi Product Company/Product ------------------------------ ---------------------------- TEC Controller JDS Uniphase TEC Controller Agere TEC Controller Ericsson 3G TEC Controller NanoGen Medical TEC Controller ThermOptics TEC Controller Boeing Satellite TEC Controller Lumenis TEC Controller Tyco TEC Controller Corning TEC Controller Hytek SiC Defib Customer SiC NASA CoolPack Raytheon Missile CoolPack Lockheed Satellite CoolPack F22 and JSF . What's next? -- Seat cooling and heating circuits for automobiles -- High temp SiC packaging for Military and Oil Drilling -- Regulating Planar Lightwave Circuits (sensitivity of SiON) Slide 22 Protecting Circuits (High Speed) . What sets us apart -- Highest speed products in the market -- Broadest product portfolio . Products -- USB Series of protection products for peripherals and data ports (2X faster than competing products) -- Polymer ESD protection products for high frequency (>2.4GHz) amplifier and switch protection .. Capable of 12GHz! -- Aircraft electronic protection modules .. Protect against lightning or severe electromagnetic storms -- Long Haul Fiber Optic Undersea Repeater protection .. Customers seeking 25 year life history - we have it Microsemi Product Company/Product ------------------------------ ---------------------------- Repeater Protection Alcatel Repeater Protection Pirelli Lightwave Repeater Protection Tycom Lightning Module AirBus Aircraft Lightning Module Lucas Engine Control Polymer ESD JDSU Polymer ESD Mercedes Polymer ESD Sierra Wireless USB Protection Intersil PRISM 2.5 USB Protection Scientific Atlanta USB Protection Dell Server [graphic of circuit schematic] [graphic of EDFA Undersea Repeater] . What's next? Combination ESD and EMI protection products .. Protect against human interface and RF interference Slide 23 What's Next? FY02 R&D . Managing Power -- Laser Drivers .. Fiber Optic Applications --- Positioning products for metrolink and long haul applications --- OC192, OC768 --- TAM $250 million, 30% growth --- Competition: Vitesse . Blue Laser Drivers for DVDR --- New team with expertise in mass storage market --- Product planned for release in Summer FY02 --- Competition: Elantec . Managing Light -- LEDs (lots of LED products in development!) . Protecting Circuits -- EMI Suppression Products .. Wireless Applications --- As many as 4 EMI filters per mobile phone (competition ST Micro, Semtech) .. Automotive Applications --- Complements our Audio product lines Slide 24 Sales- FY ends September Annual (millions) ----------------------------------------------- FY'96 FY'97 FY'98 FY'99 FY'00 FY'01 1st 6 Months 63.3 64.2 76.0 74.9 108.3 126.1 2nd 6 Months 71.3 74.4 75.8 100.4 129.5 60.1 (3 mos.) Full Year 134.6 138.6 161.8 175.3 237.8 Quarterly (millions) ---------------------------------------------- Jun Sept Dec '99 Mar Jun Sept Dec '00 Mar Jun `01 46.2 54.2 51 57.3 64.1 65.4 63 63.1 60.1 Slide 25 Margins and R&D Quarterly Margins ----------------------------------------------- Jun Sept Dec-99 Mar Jun Sept Dec '00 Mar Jun Gross Margin 24.53% 25.78% 25.54% 29.16% 29.77% 30.86% 31.70% 32.56% 34.06% Operating Margin 4.60% 8.45% 5.28% 8.12% 9.53% 10.71% 9.42% 9.74% 10.38% R&D Spending ----------------------------------------------- Quarter Jun Sept Dec-99 Mar Jun Sept Dec '00 Mar Jun R&D 2.97% 3.45% 4.59% 4.77% 4.61% 4.85% 5.43% 5.98% 6.81% Slide 26 Balance Sheet Highlights
($ millions) FY 99 FY00 Jun-01 Cash and Equivalents 8 30 37 Working Capital 43 80 94 Total Debt 58 12 10 Stockholders' Equity 82 150 166