IPO Filing: Intellon Corporation (ITLN), IC's For Electric Wires

Intellon Corporation has filed to come public via an IPO on NASDAQ under the ticker "ITLN."  Intellon is a entirely-fabless semiconductor company that designs and sells integrated circuits (ICs) for high-speed communications over existing electrical wiring to enable home connectivity in sharing and moving of content among personal computers and other consumer electronics products.  These IC’s allow consumers to share downloaded video content from a PC with a television in another room. Its largest market is the digital home, or a home enabled with high-speed connectivity among devices such as PC’s and consumer electronics products.  It also sells ICs for use in powerline communications applications in electric utility and other commercial markets to maximize power efficiency.

Goldman Sachs and Deutsche Bank are the lead underwriters listed, and co-managers are Jefferies and Piper Jaffray.  Here is is the self description of revenues:  As of June 1, 2007, we had shipped more than 16 million powerline communications ICs, including over 10 million HomePlug-based ICs. We shipped over 5.3 million powerline communications ICs in 2006, an 87% increase over 2005 shipments of 2.9 million powerline communications ICs. Our revenue grew to $33.7 million for 2006 from $16.6 million for 2005 and to $9.7 million for the three months ended March 31, 2007 from $7.3 million for the three months ended March 31, 2006. HomePlug-based ICs represented 92% of our revenue for the three months ended March 31, 2007. 

Its primary powerline competitors include Afa Technologies, Inc., Arkados Group Inc., Conexant Systems, Inc. and Maxim Integrated Products Inc., which build HomePlug-based ICs, and Design of Systems on Silicon (DS2) and Panasonic.  It also faces would-be competition from Atheros Communication Inc., Broadcom Corporation, Conexant Systems Inc., Coppergate Communications, Ltd., Entropic Communications, Inc., Intel Corporation, Marvell Technology Group Ltd., Pulse-Link, Inc., Realtek Semiconductor Corp. and Texas Instruments Incorporated.  Intellon also lists only a few key customers as of Q1-end: devolo AG OEM) as 21%, Lumax 21%, Sanmina-SCI Systems (Mexico) as 12%, and Aztech Systems Ltd. as 14%.

Shareholders listed as 5% or more are listed as follows: BCE Inc. (BCE); Comcast Interactive Capital, LP; EnerTech Capital; Fidelity; Goldman Sachs; LAP Intellon; and UMC Capital.

Jon C. Ogg
July 13, 2007

Jon Ogg can be reached at [email protected]; he does not own securities in the companies he covers.