Power Integrations announced financial results for the quarter ended September 30, 2015. Net revenues for the third quarter were $88.9 million, up four percent from the prior quarter and down one percent from the third quarter of 2014. GAAP gross margin for the third quarter was 49.7 percent; operating margin was 13.3 percent. Net income for the quarter was $11.5 million or $0.39 per diluted share, compared with $0.29 per diluted share in the prior quarter and $0.52 per diluted share in the third quarter of 2014.
In addition to its GAAP results, the company provided non-GAAP financial measures that exclude stock-based compensation expenses, amortization of intangible assets and other acquisition-related expenses, the tax effects of these items, and a tax benefit recognized in 2014. Non-GAAP gross margin for the third quarter was 51.0 percent; operating margin was 18.9 percent. Non-GAAP net income was $16.2 million or $0.55 per diluted share, compared with $0.47 per diluted share in the prior quarter and $0.65 per diluted share in the third quarter of 2014.
Commented Balu Balakrishnan, president and CEO of Power Integrations: “Like many of our peers, we experienced soft demand in the industrial end-market during the third quarter. However, revenues increased in each of the other three end-market categories, resulting in overall sequential growth of four percent. Most notably, revenues from the communications market grew more than 30 percent sequentially driven by adoption of our InnoSwitch™ products in the mobile-device market.
“While macroeconomic conditions continue to weigh on overall demand, we believe we are in the early stages of a promising product cycle with InnoSwitch ICs, and we are poised to capitalize on key trends in power conversion such as energy-efficiency, faster charging of mobile devices, renewable energy and more.â€
The company also issued the following forecast for the fourth quarter of 2015: Revenues are expected to be in a range of $89 million, plus or minus $3 million. Non-GAAP gross margin is expected to be between 51 percent and 51.5 percent. (Excludes approximately $0.2 million of stock-based compensation expense and $1 million of amortization of acquisition-related intangible assets.) GAAP gross margin is expected to be between 49.7 percent and 50.2 percent. And non-GAAP operating expenses are expected to be between $29.5 million and $30 million. (Excludes approximately $3.8 million of stock-based compensation expenses and $0.7 million of amortization of acquisition-related intangible assets.) GAAP operating expenses are expected to be between $34 million and $34.5 million.
