Power Integrations, Inc. (POWI) today announced financial results for the quarter and year ended December 31, 2014. Net revenues for the fourth quarter were $86.6 million, down four percent from both the prior quarter and the fourth quarter of 2013. GAAP gross margin for the fourth quarter was 52.9 percent; operating margin was 13.7 percent. Net income for the quarter was $14.4 million or $0.48 per diluted share, compared with $0.52 per diluted share in both the prior quarter and the fourth quarter of 2013.
In addition to its GAAP results, the company provided non-GAAP financial measures that exclude stock-based compensation expenses, acquisition-related expenses, a 2013 gain on assets held for sale, the related tax effects of these items, and a benefit stemming from the completion of a tax audit in the second quarter of 2014. Non-GAAP gross margin for the fourth quarter was 53.9 percent; operating margin was 20.3 percent. Non-GAAP net income for the quarter was $17.8 million or $0.59 per diluted share, compared with $0.65 per diluted share in the prior quarter and $0.66 per diluted share in the fourth quarter of 2013.
For the full year 2014, the company reported net revenues of $348.8 million, a slight increase compared with $347.1 million in 2013. GAAP net income for the year was $1.93 per diluted share compared with $1.88 per diluted share in 2013. Non-GAAP net income for the year was $2.40 per diluted share compared with $2.46 per diluted share in 2013.
“While disappointed with our 2014 results overall, we closed out the year with a solid quarter and now look forward to renewed growth in 2015. We are embarking on a promising new product cycle led by the revolutionary InnoSwitch™ family, which brings an unprecedented level of integration to a wide range of ac-dc applications. At the same time, secular trends such as energy efficiency, renewable energy and faster charging of mobile devices continue to drive adoption of our highly integrated power-conversion products across the appliance, electronics, industrial and lighting markets,†commented Balu Balakrishnan, president and CEO of Power Integrations.
The company issued the following forecast for the first quarter of 2015: First-quarter revenues are expected to be between $82 million and $88 million. Non-GAAP gross margin is expected to be between 53 percent and 53.5 percent. (Excludes approximately $0.3 million of stock-based compensation, $1 million of amortization of acquisition-related intangibles and $0.3 million for amortization of the write-up of acquired inventory.) GAAP gross margin is expected to be between 51 percent and 51.5 percent. Non-GAAP operating expenses are expected to be approximately $31 million. (Excludes approximately $4.2 million of stock-based compensation, $0.8 million of amortization of acquisition-related intangibles and $1 million of other acquisition-related expenses.) GAAP operating expenses are expected to be approximately $37 million.
