Revenues grew ten percent year-over-year to $107.6 million; cash flow from operations was $24.1 million
GAAP earnings were $0.46/diluted share; non-GAAP earnings were $0.69/diluted share
SAN JOSE, Calif. — (BUSINESS WIRE) — July 27, 2017 — Power Integrations (Nasdaq: POWI) today announced financial results for the quarter ended June 30, 2017. Results are calculated using the “sell-in” method of revenue recognition on sales to distributors, reflecting the company’s adoption of ASC 606 effective January 1, 2017. Prior-year results have been recast as if ASC 606 had been in effect for those periods.
Net revenues for the second quarter were $107.6 million, an increase of three percent from the prior quarter and ten percent from the second quarter of 2016. Net income was $13.9 million or $0.46 per diluted share, compared to $0.47 per diluted share in the prior quarter and $0.39 per diluted share in the second quarter of 2016. Cash flow from operations was $24.1 million for the quarter.
In addition to its GAAP results, the company provided certain non-GAAP financial measures that exclude stock-based compensation expenses, amortization of intangible assets and the tax effects of these items. Non-GAAP net income for the second quarter was $21.1 million or $0.69 per diluted share, compared with $0.63 per diluted share in the prior quarter and $0.61 per diluted share in the second quarter of 2016.
Commented Balu Balakrishnan, president and CEO of Power Integrations: “Quarterly revenues grew ten percent from a year ago, and we believe we are on track for another year of double-digit revenue growth. We are excited about the breadth and diversity of growth opportunities across our business, such as expanding electronic content in consumer appliances, IoT applications, faster charging for mobile devices, LED lighting, electric transportation, renewable energy, high-voltage DC transmission and more. We are attacking these opportunities with our most innovative products ever, and we have a robust pipeline of new products that will further expand our addressable market in the years to come.”
- Power Integrations paid a dividend of $0.14 per share on June 30, 2017. A dividend of $0.14 per share is scheduled to be paid on September 29, 2017, to stockholders of record as of August 31, 2017.
- Power Integrations’ board of directors has expanded the company’s share-repurchase authorization by $30 million; the company now has $53.6 million available for the repurchase of its common stock.
- Power Integrations was issued 15 U.S. patents during the second quarter of 2017.
The company issued the following forecast for the third quarter of 2017:
- Revenues are expected to be $111 million plus or minus $3 million.
- GAAP gross margin is expected to be approximately 49.3 percent; non-GAAP gross margin is expected to be approximately 50.5 percent. (The difference between the expected GAAP and non-GAAP gross margins is composed of approximately 0.9 percentage points from amortization of acquisition-related intangible assets and 0.3 percentage points from stock-based compensation.)
- GAAP operating expenses are expected to be approximately $39.5 million; non-GAAP operating expenses are expected to be approximately $33 million. (Non-GAAP expenses are expected to exclude approximately $6 million of stock-based compensation expenses and $0.5 million of amortization of acquisition-related intangible assets.)
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. Members of the investment community can join the call by dialing 1-647-788-4901. The call will also be available on the investor section of the company's website, http://investors.power.com.
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 (including in-place lease 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. These 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.