Power Integrations announced financial results for the quarter ended June 30, 2016. Net revenues for the second quarter were $97.2 million, up 14 percent from the prior quarter and also up 14 percent compared to the second quarter of 2015. Net income was $11.3 million or $0.38 per diluted share, compared to $0.30 per diluted share in the prior quarter and $0.29 per diluted share in the second quarter of 2015. Cash flow from operations for the second quarter was $23.6 million.
Commented Balu Balakrishnan, president and CEO of Power Integrations: “We achieved record quarterly revenues, with sequential growth across all four end-market categories. Growth was strongest in the communications market, where our InnoSwitchâ„¢ products continue to make gains in rapid-charging applications for the mobile-device market. In spite of a challenging demand environment for the semiconductor industry, our first-half revenues increased nine percent from the prior year, and we expect healthy year-over-year growth to continue in the second half of the year.â€
Additional highlights include: Power Integrations paid a dividend of $0.13 per share on June 30, 2016. A dividend of $0.13 per share is scheduled to be paid on September 30, 2016 to stockholders of record as of August 31, 2016. The company had $202.2 million in cash and short-term marketable securities at quarter-end, an increase of $17.1 million during the quarter. Power Integrations received 18 U.S. patents during the second quarter.
The company issued the following forecast for the third quarter of 2016: Revenues are expected to be in a range of $96 million to $102 million. GAAP gross margin is expected to be between 48.7 percent and 49.2 percent. Non-GAAP gross margin is expected to be between 50.0 percent and 50.5 percent. (The difference between the expected GAAP and non-GAAP gross margins is composed of approximately 1.0 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 $36.5 million. Non-GAAP operating expenses are expected to be approximately $31 million.
