Monolithic Power Announces Record Second Quarter Revenues, Enters Settlement Agreement with Taiwan Sumida
Monolithic Power Systems (MPS) announced financial results for the quarter ended June 30, 2007. Net revenues were $30.8 million, compared to $26.6 million in the second quarter of 2006 and up 26% sequentially from $24.5 million in the first quarter of 2007. Gross margin was 63.5%, compared to 63.0% in the second quarter of 2006 and 63.4% in the first quarter of 2007.
GAAP operating expenses were $26.9 million, including $11.2 million for research and development and selling, general and administrative, $4 million for patent litigation, $9.8 million for a one time legal settlement provision, $2.4 million for stock-based compensation and a credit of $0.5 million resulting from the sublease of the company’s Los Gatos property. Non-GAAP operating expenses were $15.2 million, excluding $2.4 million for stock-based compensation and a $9.8 million provision for litigation, and including a reversal of the lease write-off of $0.5 million. Net loss was $6.4 million, with GAAP EPS of ($0.20) per share. Non-GAAP net income was $4.3 million, or $0.12 per diluted share, excluding stock-based compensation, the one-time provision for litigation and related tax effects, and including a reversal of the lease write-off of $0.5 million that was previously recorded.
"MPS recorded our strongest calendar second quarter in the company’s history, and we are pleased with the momentum we see in the market," said Michael Hsing, CEO of MPS. "Our existing products are finding new applications and our CCFL inverters are growing with the market again. In addition, we look forward to growth from our new, high current, high voltage products such as the MiniMonster™ family in future quarters, as these products begin to penetrate additional new applications for MPS."
The company also announced that it had reached a definitive settlement agreement with Taiwan Sumida Corp. in its indemnity contract dispute. The company agreed to pay Taiwan Sumida approximately $2.5 million and to place in escrow $7.3 million. The details of the settlement agreement will be disclosed in the company’s 2007 second quarter Form 10-Q.