HOT CHIP IPO: Inphi Corporation (IPHI)

Morgan Stanley, Deutsche Bank Securities, and Jefferies & Company were listed as the joint book-running managers; co-managers are listed as Stifel Nicolaus Weisel and Needham & Company.  Inphi granted the underwriters a 30-day option to purchase up to an additional 1,020,000 shares to cover over-allotments, if any.

Inphi is a fabless provider of high-speed analog semiconductor solutions for the communications and computing markets. Its products are designed into systems sold by OEMs, including Agilent Technologies, Alcatel-Lucent, Cisco Systems, Danaher Corporation, Dell, EMC, HP, Huawei, IBM, and Oracle.  The company also noted that is believes it is one of a limited number of suppliers to these OEMs, and in some cases it may be the sole supplier for certain applications.  The company’s product portfolio has 17 product lines and over 170 products as of December 31, 2009.

For the year ended December 31, 2009 and the nine months ended September 30, 2010, total revenue was $58.9 million and $62.0 million, respectively, and net income was $7.3 million and $23.2 million, respectively.

During the year ended December 31, 2009, it sold semiconductor products to more than 160 customers. Sales directly to Samsung accounted for 36% and 33% of total revenue and sales directly and through distributors to Micron accounted for 17% and 12% of total revenue for the year ended December 31, 2009 and the nine months ended September 30, 2010, respectively.

JON C. OGG