| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| Product Family | 2021 | 2020 | 2021 | 2020 | ||||||||||||
| DC to DC | $ | 278,808 | $ | 176,113 | $ | 520,237 | $ | 332,988 | ||||||||
| Lighting Control | 14,509 | 10,096 | 27,535 | 18,999 | ||||||||||||
| Total | $ | 293,317 | $ | 186,209 | $ | 547,772 | $ | 351,987 | ||||||||
“With our planned capacity expansion in place and as we release more parts into production, we are well positioned to accelerate our future revenue growth,” said Michael Hsing, CEO and founder of MPS.
Business Outlook
The following are MPS’s financial targets for the third quarter ending September 30, 2021:
| ● | Revenue in the range of $309 million to $321 million. |
| ● | Gross margin, on both a GAAP and non-GAAP (1) basis, is expected to include a one-time benefit from a $4 million litigation settlement. Including this one-time benefit, GAAP gross margin will be in the range of 57.3% to 57.9% and non-GAAP (1) gross margin will be in the range of 57.6% to 58.2%. Excluding this one-time item, non-GAAP (1) gross margin will be in the range of 56.3% to 56.9%. |
| ● | GAAP research and development (“R&D”) and selling, general and administrative (“SG&A”) expenses between $104.1 million and $108.1 million. Non-GAAP (1) R&D and SG&A expenses between $73.9 million and $75.9 million, which excludes estimated stock-based compensation expenses in the range of $30.2 million to $32.2 million. |
| ● | Total stock-based compensation expense of $31.2 million to $33.2 million. |
| ● | Litigation expenses ranging between $2.3 million and $2.7 million. |
| ● | Interest income of $1.0 million to $1.4 million. |
| ● | Fully diluted shares outstanding between 47.4 million and 48.4 million. |
(1) Non-GAAP net income, non-GAAP earnings per share, non-GAAP gross margin, non-GAAP R&D and SG&A expenses, non-GAAP operating expenses, non-GAAP other income, net, non-GAAP operating income and non-GAAP income before taxes differ from net income, earnings per share, gross margin, R&D and SG&A expenses, operating expenses, other income, net, operating income and income before taxes determined in accordance with Generally Accepted Accounting Principles in the United States (GAAP). Non-GAAP net income and non-GAAP earnings per share exclude the effect of stock-based compensation expense, deferred compensation plan income/expense and related tax effects. Non-GAAP gross margin excludes the effect of stock-based compensation expense and deferred compensation plan income/expense. Non-GAAP operating expenses exclude the effect of stock-based compensation expense and deferred compensation plan income/expense. Non-GAAP other income, net excludes the effect of deferred compensation plan income/expense. Non-GAAP operating income excludes the effect of stock-based compensation expense and deferred compensation plan income/expense. Non-GAAP income before taxes excludes the effect of stock-based compensation expense and deferred compensation plan income/expense. Projected non-GAAP gross margin excludes the effect of stock-based compensation expense and a one-time benefit from a litigation settlement. Projected non-GAAP R&D and SG&A expenses exclude the effect of stock-based compensation expense. These non-GAAP financial measures are not prepared in accordance with GAAP and should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. A schedule reconciling non-GAAP financial measures is included at the end of this press release. MPS utilizes both GAAP and non-GAAP financial measures to assess what it believes to be its core operating performance and to evaluate and manage its internal business and assist in making financial operating decisions. MPS believes that the inclusion of non-GAAP financial measures, together with GAAP measures, provides investors with an alternative presentation useful to investors' understanding of MPS's core operating results and trends. Additionally, MPS believes that the inclusion of non-GAAP measures, together with GAAP measures, provides investors with an additional dimension of comparability to similar companies. However, investors should be aware that non-GAAP financial measures utilized by other companies are not likely to be comparable in most cases to the non-GAAP financial measures used by MPS.
