Monolithic Power Systems (MPS) announced financial results for the quarter ended September 30, 2007. The company reported net revenues of $40.2 million, compared to $27.3 million in the third quarter of 2006 and up 30% sequentially from $30.8 million in the second quarter of 2007. Gross margin was 63.5%, compared to 65.6% in the third quarter of 2006 and 63.5% in the second quarter of 2007.
GAAP operating expenses were $17.0 million, including $15.5 million for research and development and selling, general and administrative expenses, which includes $3.1 million for stock-based compensation, and $1.5 million for patent litigation. Non-GAAP operating expenses were $13.9 million, excluding $3.1 million for stock-based compensation. Net income was $8.3 million, with GAAP EPS of $0.23 per diluted share. Non-GAAP net income was $9.7 million, or $0.27 per diluted share, excluding stock-based compensation and related tax effects.
The results for the nine months ended September 30, 2007 are as follows: net revenues of $95.5 million, compared to $78.6 million for the nine months ended September 30, 2006, an increase of 21.5%; gross margin of 63.5%, compared to 63.6% for the nine months ended September 30, 2006; GAAP operating expenses of $58.9 million, including $41.3 million for research and development and selling, general and administrative expenses, which includes $7.7 million for stock-based compensation, $8.3 million for patent litigation, a $9.8 million provision for litigation, and a credit of $0.5 million for the sublease of the company’s Los Gatos property; non-GAAP operating expenses of $41.9 million, excluding $7.7 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 income of $2.0 million, with GAAP EPS of $0.06 per diluted share; non-GAAP net income of $16.7 million, or $0.48 per diluted share, excluding stock-based compensation, the provision for litigation and related tax effects, and including a reversal of the lease write-off that was previously recorded.
"MPS had a great third quarter, as all of our product lines grew above our expectations, and we saw excellent strength in the notebook computers, flat panel TV’s and consumer accessories end markets ," said Michael Hsing, CEO of MPS. "We are also starting to see the benefit of our new product lines, such as battery chargers, LDOs and MiniMonsters™, in our revenue base. We expect to continue to introduce innovative products using our leading technologies in the coming quarters".
