Electronics Companies Share Quarterly Financial Results

August 30, 2020 by Shannon Cuthrell

Power electronics companies give insight into the impact of COVID-19 in their second and third-quarter earnings results.

Just over halfway through an unprecedented year, many semiconductor and power electronics companies are slowly beginning to bounce back from the initial economic fallout of the COVID-19 pandemic. Other companies are experiencing a hit from the drop in demand for automotive systems.

On a larger level, the semiconductor market as a whole has experienced 12% year-over-year growth in Q2 2020, according to FactSet’s latest Earnings Insight Report, released August 7. 

Over the past month, power electronics firms have shared their second and third quarter earnings reports and are placing estimates for the coming months. Below is a rundown of the recent earnings results among some industry players. Each company touches on how COVID-19 has affected overall financial performance. 


Infineon Technologies 

Infineon’s Q3 results reflect early signs of recovery in the market, along with heightened demand for IoT and mobile communication products. The company’s Q3 revenue hit €2.17 billion (or around $2.57 billion USD), up €1.99 billion from last quarter. The 9% growth seen in this quarter’s revenue is tied to the power and sensor systems and connected secure systems that came with the company’s acquisition of Cypress Semiconductor, which closed earlier this year. 


Infineon Q3 2020 earnings presentation to investors. Image courtesy of Infineon.
Infineon Q3 2020 earnings presentation to investors. Image courtesy of Infineon.


At the same time, power and sensor systems, which make up 31% of the company’s overall revenue, increased by 10% from €617 million in the second quarter to €681 million in the past three months. 

Infineon’s report did note that industrial power control segment revenue, which accounts for around 17% of the company’s total revenue, remained stable, seeing just a 2% increase with increased demand for industrial drives and wind turbines. The automotive segment, accounting for 38% of total revenue, decreased from €846 million to €815 million. 

Looking ahead, Infineon CEO Reinhard Plosss stated in the announcement that his outlook for the fourth quarter of the year is “cautiously optimistic” and that performance is “highly dependent on how the coronavirus pandemic continues to unfold worldwide, on the impact of the economic stimulus packages that have been implemented, and on a variety of geopolitical factors." 



Gallium Nitride (GaN) semiconductor manufacturer Transphorm, Inc. reported an increase in revenue in the second quarter to $6.3 million, up from $1.1 million in the first quarter. Q2 earnings include $5 million in licensing revenue from Nexperia in a partnership funding Transphorm’s Gen IV technology, and a government contract to supply GaN epiwafer products to the U.S. Navy. This is a significant jump from the second quarter of 2019 when the company recorded only $488,000 in revenue.


Quarterly Financial Results Amid COVID-19 Pandemic Fig2
Image courtesy of Transphorm.

In its Q2 2020 earnings report, Transphorm notes that its overall revenue is sourced from licensing agreements, government contracts with the U.S. Navy, and product sales to distributors and end-users in automotive, gaming, industrial, IT and consumer products markets. 

The growth reflected in Transphorm’s Q2 earnings report coincides with several recent developments, including new partnerships with Microchip Technology Inc. and Hangzhou Zhongheng Electric. Transphorm also recently launched its SuperGaN Power FETs with the Gen IV GaN platform. 

Transphorm CEO Mario Rivas stated in a press release that the company is continuing to expand its portfolio of high-voltage GaN power conversion devices, “while working to drive increased adoption of our products for targeted applications, including the emerging opportunity in fast charging power adapters.”

While COVID-19 impacted some customers’ development programs and delayed the pace of adoption and immediate revenue, Rivas added that he’s “confident that our pipeline of customer engagements and design wins will drive future long-term growth.”


Power Integrations

Power Integrations reported second quarter revenues of $106.8 million, a 3% decrease from the first quarter of 2020, yet still up 4% from the second quarter of last year. While overall revenue is down, the second quarter saw growth in the communications and industrial market segments. 

The company’s industrial segment accounts for 35% of overall revenue, up 2% from the first quarter ending on March 31. The share of revenue in the communications segment increased from 22% to 28% since the first quarter, while consumer market sales decreased from 41% to 31% and computer revenue fell from 4% to 6%. 

In an earnings call, Power Integrations CEO Balu Balakrishna said the company saw a recovery in broad-based industrial applications and growth across markets like home and building automation and electrification. 


Power Integrations Q2 2020 investor presentation. Image courtesy of Power Integrations.
Power Integrations Q2 2020 investor presentation. Image courtesy of Power Integrations.


“While the pandemic continues to weigh on end-market demand, we continue to gain share across a wide range of power-conversion applications and we are on track to outperform the analog semiconductor industry again this year,” Balakrishna said.

Power Integrations expects to reach around $115 million in revenue over the next quarter, with a GAAP gross margin of 49.5% to 50%. 


Silicon Labs

Silicon Labs announced Q2 2020 revenues of $207.5 million, a decrease from $214.9 million in the previous quarter. IoT and infrastructure/automotive segment revenue both dropped: IoT revenue slipped to $115.1 million, down 3% from last quarter, and infrastructure and automotive revenue fell by 5% to $92.5 million.


Image courtesy of Silicon Labs.
Image courtesy of Silicon Labs. 


The company’s top-earning categories are its industrial and communications segments, with IoT sales (MCUs, wireless devices and sensors) accounting for 55% of the company’s total Q2 revenue. The company recently unveiled a new family of energy-friendly power management ICs to be paired with its wireless devices and microcontrollers. 

The remaining 45% of revenue is sourced from its infrastructure (timing and isolation systems) and automotive systems. 

In a press release, Silicon Labs CEO Tyson Tuttle stated that this quarter’s revenue reached the high end of the guidance range and that in the COVID-19 pandemic, Silicon Labs is “well-positioned to execute our strategy in IoT connectivity and internet infrastructure in light of recent trends in the market, which we see accelerating as the world moves even faster to becoming more connected."

Silicon Labs forecasts third quarter revenue to land between $208 million and $218 million, which tracks with recent trends in IoT and infrastructure and automotive sales. 



Vicor Corporation reported Q2 2020 revenues of $70.7 million, an 11.6% jump from $63.4 million in the first quarter. Bookings for the second quarter increased by 45.4% to $87.5 million, compared to $70.1 million in the first quarter. 


Image courtesy of Vicor.
Image courtesy of Vicor. 

In the announcement, Vicor CEO Patrizio Vinciarelli said that the increase in bookings was caused by increased demand for advanced products, adding that this quarter’s recovery reflects “ramping shipments of lateral power system solutions for AI accelerators and recovery of Asian demand, which had been impacted during the first quarter by COVID-19.” 

He added that due to the pandemic’s impact on the U.S. shifting from the first to the second quarter, Q2 2020 marked a 16% sequential drop in shipments, coinciding with the decline of non-essential manufacturing. COVID-19 also impacted Vicor’s supply chain productivity in the second quarter.

Vicor Corporation retains a positive outlook for the rest of the year, pending the expansion of the company’s manufacturing facilities and expecting substantial orders for additional equipment to increase high-volume production capacity.