| POWER INTEGRATIONS, INC. | |||||||||||
| CONSOLIDATED STATEMENTS OF INCOME | |||||||||||
| (in thousands, except per-share amounts) | |||||||||||
| Three Months Ended | |||||||||||
| March 31, 2024 | December 31, 2023 | March 31, 2023 | |||||||||
| NET REVENUES | $ |
91,688 |
|
$ |
89,507 |
|
$ |
106,297 |
|
||
| COST OF REVENUES |
|
43,908 |
|
|
43,299 |
|
|
52,340 |
|
||
| GROSS PROFIT |
|
47,780 |
|
|
46,208 |
|
|
53,957 |
|
||
| OPERATING EXPENSES: | |||||||||||
| Research and development |
|
23,225 |
|
|
23,505 |
|
|
23,981 |
|
||
| Sales and marketing |
|
15,722 |
|
|
15,472 |
|
|
15,885 |
|
||
| General and administrative |
|
8,363 |
|
|
8,282 |
|
|
8,334 |
|
||
| Total operating expenses |
|
47,310 |
|
|
47,259 |
|
|
48,200 |
|
||
| INCOME (LOSS) FROM OPERATIONS |
|
470 |
|
|
(1,051 |
) |
|
5,757 |
|
||
| OTHER INCOME |
|
3,502 |
|
|
3,282 |
|
|
1,714 |
|
||
| INCOME BEFORE INCOME TAXES |
|
3,972 |
|
|
2,231 |
|
|
7,471 |
|
||
| PROVISION (BENEFIT) FOR INCOME TAXES |
|
18 |
|
|
(12,040 |
) |
|
596 |
|
||
| NET INCOME | $ |
3,954 |
|
$ |
14,271 |
|
$ |
6,875 |
|
||
| EARNINGS PER SHARE: | |||||||||||
| Basic | $ |
0.07 |
|
$ |
0.25 |
|
$ |
0.12 |
|
||
| Diluted | $ |
0.07 |
|
$ |
0.25 |
|
$ |
0.12 |
|
||
| SHARES USED IN PER-SHARE CALCULATION: | |||||||||||
| Basic |
|
56,833 |
|
|
56,937 |
|
|
57,105 |
|
||
| Diluted |
|
57,132 |
|
|
57,272 |
|
|
57,579 |
|
||
| SUPPLEMENTAL INFORMATION: | Three Months Ended | ||||||||||
| March 31, 2024 | December 31, 2023 | March 31, 2023 | |||||||||
| Stock-based compensation expenses included in: | |||||||||||
| Cost of revenues | $ |
346 |
|
$ |
499 |
|
$ |
301 |
|
||
| Research and development |
|
2,425 |
|
|
2,947 |
|
|
2,668 |
|
||
| Sales and marketing |
|
1,604 |
|
|
1,827 |
|
|
1,653 |
|
||
| General and administrative |
|
2,039 |
|
|
2,230 |
|
|
2,746 |
|
||
| Total stock-based compensation expense | $ |
6,414 |
|
$ |
7,503 |
|
$ |
7,368 |
|
||
| Cost of revenues includes: | |||||||||||
| Amortization of acquisition-related intangible assets | $ |
482 |
|
$ |
482 |
|
$ |
482 |
|
||
| Three Months Ended | |||||||||||
| REVENUE MIX BY END MARKET | March 31, 2024 | December 31, 2023 | March 31, 2023 | ||||||||
| Communications |
|
11 |
% |
|
27 |
% |
|
28 |
% |
||
| Computer |
|
11 |
% |
|
9 |
% |
|
14 |
% |
||
| Consumer |
|
41 |
% |
|
29 |
% |
|
24 |
% |
||
| Industrial |
|
37 |
% |
|
35 |
% |
|
34 |
% |
||
| POWER INTEGRATIONS, INC. | |||||||||||
| RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP RESULTS | |||||||||||
| (in thousands, except per-share amounts) | |||||||||||
| Three Months Ended | |||||||||||
| March 31, 2024 | December 31, 2023 | March 31, 2023 | |||||||||
| RECONCILIATION OF GROSS PROFIT | |||||||||||
| GAAP gross profit | $ |
47,780 |
|
$ |
46,208 |
|
$ |
53,957 |
|
||
| GAAP gross margin |
|
52.1 |
% |
|
51.6 |
% |
|
50.8 |
% |
||
| Stock-based compensation included in cost of revenues |
|
346 |
|
|
499 |
|
|
301 |
|
||
| Amortization of acquisition-related intangible assets |
|
482 |
|
|
482 |
|
|
482 |
|
||
| Non-GAAP gross profit | $ |
48,608 |
|
$ |
47,189 |
|
$ |
54,740 |
|
||
| Non-GAAP gross margin |
|
53.0 |
% |
|
52.7 |
% |
|
51.5 |
% |
||
| Three Months Ended | |||||||||||
| RECONCILIATION OF OPERATING EXPENSES | March 31, 2024 | December 31, 2023 | March 31, 2023 | ||||||||
| GAAP operating expenses | $ |
47,310 |
|
$ |
47,259 |
|
$ |
48,200 |
|
||
| Less: Stock-based compensation expense included in operating expenses | |||||||||||
| Research and development |
|
2,425 |
|
|
2,947 |
|
|
2,668 |
|
||
| Sales and marketing |
|
1,604 |
|
|
1,827 |
|
|
1,653 |
|
||
| General and administrative |
|
2,039 |
|
|
2,230 |
|
|
2,746 |
|
||
| Total |
|
6,068 |
|
|
7,004 |
|
|
7,067 |
|
||
| Non-GAAP operating expenses | $ |
41,242 |
|
$ |
40,255 |
|
$ |
41,133 |
|
||
| Three Months Ended | |||||||||||
| RECONCILIATION OF INCOME FROM OPERATIONS | March 31, 2024 | December 31, 2023 | March 31, 2023 | ||||||||
| GAAP income (loss) from operations | $ |
470 |
|
$ |
(1,051 |
) |
$ |
5,757 |
|
||
| GAAP operating margin |
|
0.5 |
% |
|
-1.2 |
% |
|
5.4 |
% |
||
| Add: Stock-based compensation |
|
6,414 |
|
|
7,503 |
|
|
7,368 |
|
||
| Amortization of acquisition-related intangible assets |
|
482 |
|
|
482 |
|
|
482 |
|
||
| Non-GAAP income from operations | $ |
7,366 |
|
$ |
6,934 |
|
$ |
13,607 |
|
||
| Non-GAAP operating margin |
|
8.0 |
% |
|
7.7 |
% |
|
12.8 |
% |
||
| Three Months Ended | |||||||||||
| RECONCILIATION OF PROVISION FOR INCOME TAXES | March 31, 2024 | December 31, 2023 | March 31, 2023 | ||||||||
| GAAP provision (benefit) for income taxes | $ |
18 |
|
$ |
(12,040 |
) |
$ |
596 |
|
||
| GAAP effective tax rate |
|
0.5 |
% |
|
-539.7 |
% |
|
8.0 |
% |
||
| Tax effect of adjustments to GAAP results |
|
(358 |
) |
|
(9,556 |
) |
|
(501 |
) |
||
| Non-GAAP provision (benefit) for income taxes | $ |
376 |
|
$ |
(2,484 |
) |
$ |
1,097 |
|
||
| Non-GAAP effective tax rate |
|
3.5 |
% |
|
-24.3 |
% |
|
7.2 |
% |
||
| Three Months Ended | |||||||||||
| RECONCILIATION OF NET INCOME PER SHARE (DILUTED) | March 31, 2024 | December 31, 2023 | March 31, 2023 | ||||||||
| GAAP net income | $ |
3,954 |
|
$ |
14,271 |
|
$ |
6,875 |
|
||
| Adjustments to GAAP net income | |||||||||||
| Stock-based compensation |
|
6,414 |
|
|
7,503 |
|
|
7,368 |
|
||
| Amortization of acquisition-related intangible assets |
|
482 |
|
|
482 |
|
|
482 |
|
||
| Tax effect of items excluded from non-GAAP results |
|
(358 |
) |
|
(9,556 |
) |
|
(501 |
) |
||
| Non-GAAP net income | $ |
10,492 |
|
$ |
12,700 |
|
$ |
14,224 |
|
||
| Average shares outstanding for calculation | |||||||||||
| of non-GAAP net income per share (diluted) |
|
57,132 |
|
|
57,272 |
|
|
57,579 |
|
||
| Non-GAAP net income per share (diluted) | $ |
0.18 |
|
$ |
0.22 |
|
$ |
0.25 |
|
||
| GAAP net income per share (diluted) | $ |
0.07 |
|
$ |
0.25 |
|
$ |
0.12 |
|
||
| POWER INTEGRATIONS, INC. | |||||||
| CONSOLIDATED BALANCE SHEETS | |||||||
| (in thousands) | |||||||
| March 31, 2024 | December 31, 2023 | ||||||
| ASSETS | |||||||
| CURRENT ASSETS: | |||||||
| Cash and cash equivalents | $ |
56,443 |
|
$ |
63,929 |
|
|
| Short-term marketable securities |
|
243,163 |
|
|
247,640 |
|
|
| Accounts receivable, net |
|
12,279 |
|
|
14,674 |
|
|
| Inventories |
|
167,865 |
|
|
163,164 |
|
|
| Prepaid expenses and other current assets |
|
22,714 |
|
|
22,193 |
|
|
| Total current assets |
|
502,464 |
|
|
511,600 |
|
|
| PROPERTY AND EQUIPMENT, net |
|
159,945 |
|
|
164,213 |
|
|
| INTANGIBLE ASSETS, net |
|
3,881 |
|
|
4,424 |
|
|
| GOODWILL |
|
91,849 |
|
|
91,849 |
|
|
| DEFERRED TAX ASSETS |
|
29,654 |
|
|
28,325 |
|
|
| OTHER ASSETS |
|
17,983 |
|
|
19,457 |
|
|
| Total assets | $ |
805,776 |
|
$ |
819,868 |
|
|
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
| CURRENT LIABILITIES: | |||||||
| Accounts payable | $ |
27,361 |
|
$ |
26,390 |
|
|
| Accrued payroll and related expenses |
|
11,822 |
|
|
13,551 |
|
|
| Taxes payable |
|
878 |
|
|
1,016 |
|
|
| Other accrued liabilities |
|
9,474 |
|
|
7,910 |
|
|
| Total current liabilities |
|
49,535 |
|
|
48,867 |
|
|
| LONG-TERM LIABILITIES: | |||||||
| Income taxes payable |
|
6,193 |
|
|
6,244 |
|
|
| Other liabilities |
|
11,870 |
|
|
12,516 |
|
|
| Total liabilities |
|
67,598 |
|
|
67,627 |
|
|
| STOCKHOLDERS' EQUITY: | |||||||
| Common stock |
|
22 |
|
|
23 |
|
|
| Additional paid-in capital |
|
- |
|
|
- |
|
|
| Accumulated other comprehensive loss |
|
(2,559 |
) |
|
(1,462 |
) |
|
| Retained earnings |
|
740,715 |
|
|
753,680 |
|
|
| Total stockholders' equity |
|
738,178 |
|
|
752,241 |
|
|
| Total liabilities and stockholders' equity | $ |
805,776 |
|
$ |
819,868 |
|
|
| POWER INTEGRATIONS, INC. | |||||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||
| (in thousands) | |||||||||||
| Three Months Ended | |||||||||||
| March 31, 2024 | December 31, 2023 | March 31, 2023 | |||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||
| Net income | $ |
3,954 |
|
$ |
14,271 |
|
$ |
6,875 |
|
||
| Adjustments to reconcile net income to cash provided by operating activities | |||||||||||
| Depreciation |
|
8,715 |
|
|
8,887 |
|
|
8,961 |
|
||
| Amortization of intangible assets |
|
543 |
|
|
543 |
|
|
543 |
|
||
| Loss on disposal of property and equipment |
|
8 |
|
|
14 |
|
|
7 |
|
||
| Stock-based compensation expense |
|
6,414 |
|
|
7,503 |
|
|
7,368 |
|
||
| Amortization of premium (accretion of discount) on marketable securities |
|
(496 |
) |
|
(497 |
) |
|
404 |
|
||
| Deferred income taxes |
|
(1,330 |
) |
|
705 |
|
|
(738 |
) |
||
| Increase (decrease) in accounts receivable allowance for credit losses |
|
163 |
|
|
- |
|
|
(454 |
) |
||
| Change in operating assets and liabilities: | |||||||||||
| Accounts receivable |
|
2,232 |
|
|
13,865 |
|
|
705 |
|
||
| Inventories |
|
(4,701 |
) |
|
(12,918 |
) |
|
(7,024 |
) |
||
| Prepaid expenses and other assets |
|
846 |
|
|
(346 |
) |
|
(2,302 |
) |
||
| Accounts payable |
|
1,294 |
|
|
(2,553 |
) |
|
2,926 |
|
||
| Taxes payable and other accrued liabilities |
|
(1,737 |
) |
|
(13,207 |
) |
|
(686 |
) |
||
| Net cash provided by operating activities |
|
15,905 |
|
|
16,267 |
|
|
16,585 |
|
||
| CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||
| Purchases of property and equipment |
|
(4,343 |
) |
|
(6,143 |
) |
|
(4,082 |
) |
||
| Purchases of marketable securities |
|
(49,912 |
) |
|
(18,196 |
) |
|
(36,922 |
) |
||
| Proceeds from sales and maturities of marketable securities |
|
54,198 |
|
|
36,045 |
|
|
22,693 |
|
||
| Net cash provided by (used in) investing activities |
|
(57 |
) |
|
11,706 |
|
|
(18,311 |
) |
||
| CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||
| Net proceeds from issuance of common stock |
|
2,691 |
|
|
- |
|
|
3,098 |
|
||
| Repurchase of common stock |
|
(14,641 |
) |
|
(47,444 |
) |
|
(1,687 |
) |
||
| Payments of dividends to stockholders |
|
(11,384 |
) |
|
(11,343 |
) |
|
(10,868 |
) |
||
| Net cash used in financing activities |
|
(23,334 |
) |
|
(58,787 |
) |
|
(9,457 |
) |
||
| NET DECREASE IN CASH AND CASH EQUIVALENTS |
|
(7,486 |
) |
|
(30,814 |
) |
|
(11,183 |
) |
||
| CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD |
|
63,929 |
|
|
94,743 |
|
|
105,372 |
|
||
| CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ |
56,443 |
|
$ |
63,929 |
|
$ |
94,189 |
|
||
