| POWER INTEGRATIONS, INC. | ||||||||||||||||
| RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP RESULTS | ||||||||||||||||
| (in thousands, except per-share amounts) | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
|
March 31, 2019 |
December 31, 2018 |
March 31, 2018 |
||||||||||||||
| RECONCILIATION OF GROSS PROFIT | ||||||||||||||||
| GAAP gross profit | $ | 45,474 | $ | 48,005 | $ | 53,544 | ||||||||||
| GAAP gross margin | 51.0 | % | 51.4 | % | 51.9 | % | ||||||||||
| Stock-based compensation included in cost of revenues | 271 | 313 | 249 | |||||||||||||
| Amortization of acquisition-related intangible assets | 794 | 813 | 813 | |||||||||||||
| Non-GAAP gross profit | $ | 46,539 | $ | 49,131 | $ | 54,606 | ||||||||||
| Non-GAAP gross margin | 52.2 | % | 52.7 | % | 53.0 | % | ||||||||||
| RECONCILIATION OF OPERATING EXPENSES | ||||||||||||||||
| GAAP operating expenses | $ | 39,353 | $ | 39,962 | $ | 39,583 | ||||||||||
| Less: | Stock-based compensation expense included in operating expenses | |||||||||||||||
| Research and development | 1,632 | 1,944 | 1,839 | |||||||||||||
| Sales and marketing | 1,061 | 1,222 | 1,276 | |||||||||||||
| General and administrative | 1,443 | 1,963 | 2,261 | |||||||||||||
| Total | 4,136 | 5,129 | 5,376 | |||||||||||||
| Amortization of acquisition-related intangible assets | 427 | 455 | 514 | |||||||||||||
| Non-GAAP operating expenses | $ | 34,790 | $ | 34,378 | $ | 33,693 | ||||||||||
| RECONCILIATION OF INCOME FROM OPERATIONS | ||||||||||||||||
| GAAP income from operations | $ | 6,121 | $ | 8,043 | $ | 13,961 | ||||||||||
| GAAP operating margin | 6.9 | % | 8.6 | % | 13.5 | % | ||||||||||
| Add: | Total stock-based compensation | 4,407 | 5,442 | 5,625 | ||||||||||||
| Amortization of acquisition-related intangible assets | 1,221 | 1,268 | 1,327 | |||||||||||||
| Non-GAAP income from operations | $ | 11,749 | $ | 14,753 | $ | 20,913 | ||||||||||
| Non-GAAP operating margin | 13.2 | % | 15.8 | % | 20.3 | % | ||||||||||
| RECONCILIATION OF PROVISION (BENEFIT) FOR INCOME TAXES | ||||||||||||||||
| GAAP provision (benefit) for income taxes | $ | 40 | $ | (13,396 | ) | $ | 597 | |||||||||
| GAAP effective tax rate | 0.5 | % | -143.4 | % | 4.0 | % | ||||||||||
| Impact of U.S. tax legislation | - | (9,687 | ) | - | ||||||||||||
| Tax effect of adjustments to GAAP results | (799 | ) | (3,846 | ) | (789 | ) | ||||||||||
| Non-GAAP provision for income taxes | $ | 839 | $ | 137 | $ | 1,386 | ||||||||||
| Non-GAAP effective tax rate | 6.5 | % | 0.9 | % | 6.4 | % | ||||||||||
| RECONCILIATION OF NET INCOME PER SHARE (DILUTED) | ||||||||||||||||
| GAAP net income | $ | 7,233 | $ | 22,736 | $ | 14,200 | ||||||||||
| Adjustments to GAAP net income | ||||||||||||||||
| Stock-based compensation | 4,407 | 5,442 | 5,625 | |||||||||||||
| Amortization of acquisition-related intangible assets | 1,221 | 1,268 | 1,327 | |||||||||||||
| Impact of U.S. tax legislation | - | (9,687 | ) | - | ||||||||||||
| Tax effect of items excluded from non-GAAP results | (799 | ) | (3,846 | ) | (789 | ) | ||||||||||
| Non-GAAP net income | $ | 12,062 | $ | 15,913 | $ | 20,363 | ||||||||||
|
Average shares outstanding for calculation of non-GAAP net income per share (diluted) |
29,446 | 29,651 | 30,552 | |||||||||||||
| Non-GAAP net income per share (diluted) | $ | 0.41 | $ | 0.54 | $ | 0.67 | ||||||||||
| GAAP net income per share | $ | 0.25 | $ | 0.77 | $ | 0.46 | ||||||||||
Power Integrations Reports First-Quarter Financial Results
 |  | More IC News
|
|
RELATED NEWS
