News

# Communications Segment leads Growth at Power Integrations

July 28, 2016 by Jeff Shepard

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: â€œWe 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.