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Monolithic Power Announces Consecutive Record Revenue Results for Quarter & Nine Months Ended September 30, 2010

November 08, 2010 by Jeff Shepard

Monolithic Power Systems (MPS) announced financial results for the quarter and nine months ended September 30, 2010.

The results for the quarter ended September 30, 2010 are as follows: net revenues were $65.8 million, an increase of 18.2% sequentially from $55.7 million in the second quarter of 2010 and 37.3% from $48.0 million in the third quarter of 2009. Gross margin was 54.7%, compared to 58.2% in the second quarter of 2010 and 60.7% in the third quarter of 2009.

GAAP operating expenses were $22.6 million, including $21.6 million for research and development and selling, general and administrative expenses, which includes $4.1 million for stock-based compensation and $1.0 million for litigation expenses. Non-GAAP operating expenses were $18.5 million, excluding $4.1 million for stock-based compensation, compared to $19.2 million, excluding $3.1 million for stock-based compensation and a $6.4 million litigation provision reversal for the three months ended September 30, 2009. GAAP net income was $13.2 million, with GAAP earnings per share of $0.35 per diluted share. Non-GAAP net income was $16.4 million, with non-GAAP earnings per share of $0.43 per diluted share, excluding stock-based compensation and related tax effects.

The results for the nine months ended September 30, 2010 are as follows: net revenues were $171.8 million, compared to $118.5 million for the nine months ended September 30, 2009, an increase of 45.0%. Gross margin was 56.9%, compared to 59.4% for the nine months.

GAAP operating expenses of $71.2 million, including $66.4 million for research and development and selling, general and administrative expenses, which includes $13.5 million for stock-based compensation and $4.8 million for patent litigation expenses. Non-GAAP operating expenses were $57.7 million, excluding $13.5 million for stock-based compensation, compared to $51.4 million, excluding $10.2 million in stock-based compensation and a $6.4 million litigation provision reversal for the nine months ended September 30, 2009, an increase of 12.4%. GAAP net income was $26.0 million, with GAAP EPS of $0.68 per diluted share. Non-GAAP net income was $37.9 million, with non-GAAP earnings per share of $1.00 per diluted share, excluding stock-based compensation and related tax effects.

"MPS demonstrated the potential of its new products and achieved significant revenue growth in the third quarter", said Michael Hsing, CEO of MPS. "While our fourth quarter outlook is disappointing, I am excited about the prospects of some of our new product lines, such as AC power and WLED lighting that are showing outstanding potential".