| POWER INTEGRATIONS, INC. | ||||||||||||
| RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP RESULTS | ||||||||||||
| (in thousands, except per-share amounts) | ||||||||||||
| Three Months Ended | ||||||||||||
|
March 31, 2016 |
December 31, 2015 |
March 31, 2015 |
||||||||||
| RECONCILIATION OF GROSS PROFIT | ||||||||||||
| GAAP gross profit | $ | 42,947 | $ | 42,916 | $ | 42,292 | ||||||
| GAAP gross margin | 50.3 | % | 49.2 | % | 51.2 | % | ||||||
| Stock-based compensation included in cost of revenues | 90 | 208 | 249 | |||||||||
| Amortization of write-up of acquired inventory | - | - | 309 | |||||||||
| Amortization of acquisition-related intangible assets | 961 | 961 | 961 | |||||||||
| Non-GAAP gross profit | $ | 43,998 | $ | 44,085 | $ | 43,811 | ||||||
| Non-GAAP gross margin | 51.6 | % | 50.5 | % | 53.1 | % | ||||||
| RECONCILIATION OF OPERATING EXPENSES | ||||||||||||
| GAAP operating expenses | $ | 34,035 | $ | 31,867 | $ | 35,335 | ||||||
| Less:Stock-based compensation expense included in operating expenses | ||||||||||||
| Research and development | 1,469 | 1,281 | 1,391 | |||||||||
| Sales and marketing | 1,027 | 877 | 1,012 | |||||||||
| General and administrative | 1,830 | 899 | 1,739 | |||||||||
| Total | 4,326 | 3,057 | 4,142 | |||||||||
| Amortization of acquisition-related intangible assets | 666 | 666 | 750 | |||||||||
| Acquisition expenses, severance and transition costs | - | - | 722 | |||||||||
| Non-GAAP operating expenses | $ | 29,043 | $ | 28,144 | $ | 29,721 | ||||||
| RECONCILIATION OF INCOME FROM OPERATIONS | ||||||||||||
| GAAP income from operations | $ | 8,912 | $ | 11,049 | $ | 6,957 | ||||||
| GAAP operating margin | 10.4 | % | 12.7 | % | 8.4 | % | ||||||
| Add:Total stock-based compensation | 4,416 | 3,265 | 4,391 | |||||||||
| Amortization of write-up of acquired inventory | - | - | 309 | |||||||||
| Amortization of acquisition-related intangible assets | 1,627 | 1,627 | 1,711 | |||||||||
| Acquisition expenses, severance and transition costs | - | - | 722 | |||||||||
| Non-GAAP income from operations | $ | 14,955 | $ | 15,941 | $ | 14,090 | ||||||
| Non-GAAP operating margin | 17.5 | % | 18.3 | % | 17.1 | % | ||||||
| RECONCILIATION OF PROVISION (BENEFIT) FOR INCOME TAXES | ||||||||||||
| GAAP provision (benefit) for income taxes | $ | 330 | $ | (1,446 | ) | $ | 391 | |||||
| GAAP effective tax rate | 3.6 | % | -12.8 | % | 5.8 | % | ||||||
| Tax effect of adjustments to GAAP results | (301 | ) | (796 | ) | (521 | ) | ||||||
| Non-GAAP provision (benefit) for income taxes | $ | 631 | $ | (650 | ) | $ | 912 | |||||
| Non-GAAP effective tax rate | 4.1 | % | -4.0 | % | 6.6 | % | ||||||
| RECONCILIATION OF NET INCOME PER SHARE (DILUTED) | ||||||||||||
| GAAP net income | $ | 8,843 | $ | 12,701 | $ | 6,343 | ||||||
| Adjustments to GAAP net income | ||||||||||||
| Stock-based compensation | 4,416 | 3,265 | 4,391 | |||||||||
| Amortization of write-up of acquired inventory | - | - | 309 | |||||||||
| Amortization of acquisition-related intangible assets | 1,627 | 1,627 | 1,711 | |||||||||
| Acquisition expenses, severance and transition costs | - | - | 722 | |||||||||
| Amortization of in-place lease intangible assets | 90 | 90 | - | |||||||||
| Tax effect of items excluded from non-GAAP results | (301 | ) | (796 | ) | (521 | ) | ||||||
| Non-GAAP net income | $ | 14,675 | $ | 16,887 | $ | 12,955 | ||||||
|
Average shares outstanding for calculation of non-GAAP income per share (diluted) |
29,244 | 29,126 | 30,058 | |||||||||
| Non-GAAP net income per share (diluted) | $ | 0.50 | $ | 0.58 | $ | 0.43 | ||||||
| GAAP income per share | $ | 0.30 | $ | 0.44 | $ | 0.21 | ||||||
Power Integrations Reports First-Quarter Financial Results
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