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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Power Integrations Inc | NASDAQ:POWI | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
-1.01 | -1.60% | 61.93 | 58.00 | 73.52 | 62.96 | 61.50 | 62.41 | 499,370 | 05:00:02 |
Revenues were $115.8 million; GAAP earnings were $0.25 per diluted share; non-GAAP earnings were $0.40 per diluted share
Announces five-percent dividend increase and $50 million share-repurchase authorization
Power Integrations (NASDAQ: POWI) today announced financial results for the quarter ended September 30, 2024. Net revenues for the third quarter were $115.8 million, up nine percent from the prior quarter and down eight percent from the third quarter of 2023. GAAP net income for the third quarter was $14.3 million or $0.25 per diluted share compared to $0.09 per diluted share in the prior quarter and $0.34 per diluted share in the third quarter of 2023. Cash flow from operations for the third quarter was $32.9 million.
In addition to its GAAP results, the company provided non-GAAP measures that exclude stock-based compensation, amortization of acquisition-related intangible assets and the related tax effects. Non-GAAP net income for the third quarter of 2024 was $22.6 million or $0.40 per diluted share compared to $0.28 per diluted share in the prior quarter and $0.46 per diluted share in the third quarter of 2023. A reconciliation of GAAP to non-GAAP financial results is included with the tables accompanying this press release.
Commented Balu Balakrishnan, chairman and CEO of Power Integrations: “Our third-quarter results were on target, and while our outlook reflects soft end-market demand, particularly in consumer appliances, we nevertheless expect double-digit year-over-year revenue growth in the fourth quarter. In light of our strong balance sheet, our board of directors has authorized $50 million for share repurchases and increased our quarterly dividend by five percent.
“Progress on our PowiGaN™ technology roadmap continues apace, with the introduction earlier this week of the world’s first 1700-volt gallium-nitride transistors in our InnoMux™-2 product family. As PowiGaN technology reaches ever-higher voltage and power capabilities, it becomes an increasingly attractive, lower-cost alternative to silicon carbide. At the same time, its cost is approaching parity with the most advanced high-voltage silicon MOSFETs, but with far superior performance.”
Additional Highlights
Financial Outlook
The company issued the following forecast for the fourth quarter of 2024:
Conference Call Today at 1:30 p.m. Pacific Time
Power Integrations management will hold a conference call today at 1:30 p.m. Pacific time. A live webcast of the call will be available on the investor section of the company's website, http://investors.power.com. Members of the investment community can access the telephonic conference call by going to: https://bit.ly/POWI-2024-Q3-Earnings-Call.
About Power Integrations
Power Integrations, Inc. is a leading innovator in semiconductor technologies for high-voltage power conversion. The company’s products are key building blocks in the clean-power ecosystem, enabling the generation of renewable energy as well as the efficient transmission and consumption of power in applications ranging from milliwatts to megawatts. For more information, please visit www.power.com.
Note Regarding Use of Non-GAAP Financial Measures
In addition to the company's consolidated financial statements, which are presented according to GAAP, the company provides certain non-GAAP financial information that excludes stock-based compensation expenses recorded under ASC 718-10, amortization of acquisition-related intangible assets and the tax effects of these items. The company uses these measures in its financial and operational decision-making and, with respect to one measure, in setting performance targets for compensation purposes. The company believes that these non-GAAP measures offer important analytical tools to help investors understand its operating results, and to facilitate comparability with the results of companies that provide similar measures. Non-GAAP measures have limitations as analytical tools and are not meant to be considered in isolation or as a substitute for GAAP financial information. For example, stock-based compensation is an important component of the company’s compensation mix and will continue to result in significant expenses in the company’s GAAP results for the foreseeable future but is not reflected in the non-GAAP measures. Also, other companies, including companies in Power Integrations’ industry, may calculate non-GAAP measures differently, limiting their usefulness as comparative measures. Reconciliations of non-GAAP measures to GAAP measures are attached to this press release.
Note Regarding Forward-Looking Statements
The above statements regarding the company’s forecast for its fourth-quarter financial performance are forward-looking statements reflecting management's current expectations and beliefs. These statements are based on current information that is, by its nature, subject to rapid and even abrupt change. Due to risks and uncertainties associated with the company's business, actual results could differ materially from those projected or implied by these statements. These risks and uncertainties include, but are not limited to: the company’s ability to supply products and its ability to conduct other aspects of its business such as competing for new design wins; changes in global economic and geopolitical conditions, including such factors as inflation, armed conflicts and trade negotiations, which may impact the level of demand for the company’s products; potential changes and shifts in customer demand away from end products that utilize the company's integrated circuits to end products that do not incorporate the company's products; the effects of competition, which may cause the company’s revenues to decrease or cause the company to decrease its selling prices for its products; unforeseen costs and expenses; and unfavorable fluctuations in component costs or operating expenses resulting from changes in commodity prices and/or exchange rates. In addition, new product introductions and design wins are subject to the risks and uncertainties that typically accompany development and delivery of complex technologies to the marketplace, including product development delays and defects and market acceptance of the new products. These and other risk factors that may cause actual results to differ are more fully explained under the caption “Risk Factors” in the company's most recent Annual Report on Form 10-K, filed with the Securities and Exchange Commission on February 12, 2024. The company is under no obligation (and expressly disclaims any obligation) to update or alter its forward-looking statements, whether because of new information, future events or otherwise, except as otherwise required by law.
Power Integrations, PowiGaN, InnoMux and the Power Integrations logo are trademarks or registered trademarks of Power Integrations, Inc. All other trademarks are property of their respective owners.
POWER INTEGRATIONS, INC. CONSOLIDATED STATEMENTS OF INCOME (in thousands, except per-share amounts) Three Months Ended Nine Months Ended September 30, 2024 June 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023 NET REVENUES$
115,837
$
106,198
$
125,511
$
313,723
$
355,031
COST OF REVENUES
52,666
49,665
59,566
146,239
172,283
GROSS PROFIT
63,171
56,533
65,945
167,484
182,748
OPERATING EXPENSES: Research and development
25,829
26,047
24,064
75,101
72,562
Sales and marketing
17,119
18,053
16,224
50,894
49,126
General and administrative
8,641
10,475
7,945
27,479
24,950
Total operating expenses
51,589
54,575
48,233
153,474
146,638
INCOME FROM OPERATIONS
11,582
1,958
17,712
14,010
36,110
OTHER INCOME
2,750
3,189
3,138
9,441
7,566
INCOME BEFORE INCOME TAXES
14,332
5,147
20,850
23,451
43,676
PROVISION FOR INCOME TAXES
41
298
1,054
357
2,212
NET INCOME
$
14,291
$
4,849
$
19,796
$
23,094
$
41,464
EARNINGS PER SHARE: Basic
$
0.25
$
0.09
$
0.34
$
0.41
$
0.72
Diluted
$
0.25
$
0.09
$
0.34
$
0.40
$
0.72
SHARES USED IN PER-SHARE CALCULATION: Basic
56,817
56,780
57,383
56,810
57,282
Diluted
57,004
56,984
57,741
57,106
57,711
SUPPLEMENTAL INFORMATION: Three Months Ended Nine Months Ended September 30, 2024 June 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023 Stock-based compensation expenses included in: Cost of revenues
$
496
$
707
$
446
$
1,549
$
1,193
Research and development
2,997
3,885
2,895
9,307
7,992
Sales and marketing
1,876
2,510
1,787
5,990
5,061
General and administrative
2,969
3,933
1,777
8,941
6,779
Total stock-based compensation expense
$
8,338
$
11,035
$
6,905
$
25,787
$
21,025
Cost of revenues includes: Amortization of acquisition-related intangible assets
$
147
$
258
$
482
$
887
$
1,446
Three Months Ended Nine Months Ended REVENUE MIX BY END MARKET September 30, 2024 June 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023 Communications
12
%
11
%
32
%
11
%
30
%
Computer
14
%
14
%
10
%
14
%
12
%
Consumer
38
%
42
%
26
%
40
%
26
%
Industrial
36
%
33
%
32
%
35
%
32
%
POWER INTEGRATIONS, INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP RESULTS (in thousands, except per-share amounts) Three Months Ended Nine Months Ended September 30, 2024 June 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023 RECONCILIATION OF GROSS PROFIT GAAP gross profit$
63,171
$
56,533
$
65,945
$
167,484
$
182,748
GAAP gross margin
54.5
%
53.2
%
52.5
%
53.4
%
51.5
%
Stock-based compensation included in cost of revenues
496
707
446
1,549
1,193
Amortization of acquisition-related intangible assets
147
258
482
887
1,446
Non-GAAP gross profit
$
63,814
$
57,498
$
66,873
$
169,920
$
185,387
Non-GAAP gross margin
55.1
%
54.1
%
53.3
%
54.2
%
52.2
%
Three Months Ended Nine Months Ended RECONCILIATION OF OPERATING EXPENSES September 30, 2024 June 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023 GAAP operating expenses$
51,589
$
54,575
$
48,233
$
153,474
$
146,638
Less: Stock-based compensation expense included in operating expenses Research and development
2,997
3,885
2,895
9,307
7,992
Sales and marketing
1,876
2,510
1,787
5,990
5,061
General and administrative
2,969
3,933
1,777
8,941
6,779
Total
7,842
10,328
6,459
24,238
19,832
Non-GAAP operating expenses
$
43,747
$
44,247
$
41,774
$
129,236
$
126,806
Three Months Ended Nine Months Ended RECONCILIATION OF INCOME FROM OPERATIONS September 30, 2024 June 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023 GAAP income from operations
$
11,582
$
1,958
$
17,712
$
14,010
$
36,110
GAAP operating margin
10.0
%
1.8
%
14.1
%
4.5
%
10.2
%
Add: Stock-based compensation
8,338
11,035
6,905
25,787
21,025
Amortization of acquisition-related intangible assets
147
258
482
887
1,446
Non-GAAP income from operations
$
20,067
$
13,251
$
25,099
$
40,684
$
58,581
Non-GAAP operating margin
17.3
%
12.5
%
20.0
%
13.0
%
16.5
%
Three Months Ended Nine Months Ended RECONCILIATION OF PROVISION FOR INCOME TAXES September 30, 2024 June 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023 GAAP provision for income taxes$
41
$
298
$
1,054
$
357
$
2,212
GAAP effective tax rate
0.3
%
5.8
%
5.1
%
1.5
%
5.1
%
Tax effect of adjustments to GAAP results
(160
)
(269
)
(580
)
(787
)
(2,097
)
Non-GAAP provision for income taxes$
201
$
567
$
1,634
$
1,144
$
4,309
Non-GAAP effective tax rate
0.9
%
3.4
%
5.8
%
2.3
%
6.5
%
Three Months Ended Nine Months Ended RECONCILIATION OF NET INCOME PER SHARE (DILUTED) September 30, 2024 June 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023 GAAP net income$
14,291
$
4,849
$
19,796
$
23,094
$
41,464
Adjustments to GAAP net income Stock-based compensation
8,338
11,035
6,905
25,787
21,025
Amortization of acquisition-related intangible assets
147
258
482
887
1,446
Tax effect of items excluded from non-GAAP results
(160
)
(269
)
(580
)
(787
)
(2,097
)
Non-GAAP net income$
22,616
$
15,873
$
26,603
$
48,981
$
61,838
Average shares outstanding for calculation of non-GAAP net income per share (diluted)
57,004
56,984
57,741
57,106
57,711
Non-GAAP net income per share (diluted)
$
0.40
$
0.28
$
0.46
$
0.86
$
1.07
GAAP net income per share (diluted)
$
0.25
$
0.09
$
0.34
$
0.40
$
0.72
POWER INTEGRATIONS, INC. CONSOLIDATED BALANCE SHEETS (in thousands) September 30, 2024 June 30, 2024 December 31, 2023 ASSETS CURRENT ASSETS: Cash and cash equivalents
$
58,469
$
50,493
$
63,929
Short-term marketable securities
245,282
239,985
247,640
Accounts receivable, net
16,634
16,372
14,674
Inventories
167,680
169,884
163,164
Prepaid expenses and other current assets
19,821
23,102
22,193
Total current assets
507,886
499,836
511,600
PROPERTY AND EQUIPMENT, net
153,313
153,785
164,213
INTANGIBLE ASSETS, net
8,283
3,561
4,424
GOODWILL
95,271
91,849
91,849
DEFERRED TAX ASSETS
36,393
31,640
28,325
OTHER ASSETS
23,845
24,089
19,457
Total assets
$
824,991
$
804,760
$
819,868
LIABILITIES AND STOCKHOLDERS’ EQUITY CURRENT LIABILITIES: Accounts payable
$
27,091
$
24,831
$
26,390
Accrued payroll and related expenses
13,337
13,596
13,551
Taxes payable
1,063
827
1,016
Other accrued liabilities
9,267
10,970
7,910
Total current liabilities
50,758
50,224
48,867
LONG-TERM LIABILITIES: Income taxes payable
6,351
6,237
6,244
Other liabilities
18,669
17,557
12,516
Total liabilities
75,778
74,018
67,627
STOCKHOLDERS' EQUITY: Common stock
22
22
23
Additional paid-in capital
11,347
-
-
Accumulated other comprehensive income (loss)
1,008
(3,189
)
(1,462
)
Retained earnings
736,836
733,909
753,680
Total stockholders' equity
749,213
730,742
752,241
Total liabilities and stockholders' equity
$
824,991
$
804,760
$
819,868
POWER INTEGRATIONS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) Three Months Ended Nine Months Ended September 30, 2024 June 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023 CASH FLOWS FROM OPERATING ACTIVITIES: Net income
$
14,291
$
4,849
$
19,796
$
23,094
$
41,464
Adjustments to reconcile net income to cash provided by operating activities Depreciation
8,454
8,391
8,663
25,560
26,316
Amortization of intangible assets
208
320
544
1,071
1,630
Loss on disposal of property and equipment
208
-
64
216
86
Stock-based compensation expense
8,338
11,035
6,905
25,787
21,025
Amortization of premium (accretion of discount) on marketable securities
(343
)
(413
)
(273
)
(1,252
)
146
Deferred income taxes
(5,206
)
(2,152
)
(7,170
)
(8,688
)
(9,952
)
Increase (decrease) in accounts receivable allowance for credit losses
(785
)
163
-
(459
)
(454
)
Change in operating assets and liabilities: Accounts receivable
523
(4,256
)
3,538
(1,501
)
(7,249
)
Inventories
2,204
(2,019
)
(505
)
(4,516
)
(14,826
)
Prepaid expenses and other assets
3,542
1,226
6,404
5,614
(837
)
Accounts payable
2,031
(1,411
)
(11,695
)
1,914
(2,882
)
Taxes payable and other accrued liabilities
(546
)
1,898
455
(385
)
(4,975
)
Net cash provided by operating activities
32,919
17,631
26,726
66,455
49,492
CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property and equipment
(5,731
)
(4,167
)
(7,530
)
(14,241
)
(14,741
)
Purchases of marketable securities
(19,751
)
(27,918
)
(62,205
)
(97,581
)
(173,015
)
Proceeds from sales and maturities of marketable securities
18,414
31,194
63,256
103,806
161,897
Acquisition
(9,520
)
-
-
(9,520
)
-
Net cash used in investing activities
(16,588
)
(891
)
(6,479
)
(17,536
)
(25,859
)
CASH FLOWS FROM FINANCING ACTIVITIES: Net proceeds from issuance of common stock
3,009
-
3,139
5,700
6,237
Repurchase of common stock
-
(11,338
)
(1,835
)
(25,979
)
(7,834
)
Payments of dividends to stockholders
(11,364
)
(11,352
)
(10,904
)
(34,100
)
(32,665
)
Net cash used in financing activities
(8,355
)
(22,690
)
(9,600
)
(54,379
)
(34,262
)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
7,976
(5,950
)
10,647
(5,460
)
(10,629
)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
50,493
56,443
84,096
63,929
105,372
CASH AND CASH EQUIVALENTS AT END OF PERIOD
$
58,469
$
50,493
$
94,743
$
58,469
$
94,743
View source version on businesswire.com: https://www.businesswire.com/news/home/20241106320623/en/
Joe Shiffler Power Integrations, Inc. (408) 414-8528 joe@power.com
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