Monolithic Power Systems Announces 2007 Financial Results; $25 Million Stock Repurchase Program
Monolithic Power Systems (MPS) announced financial results for the quarter and fiscal year ended December 31, 2007. The results for the quarter ended December 31, 2007 were as follows: net revenues were $38.5 million, up 45.8% from $26.4 million in the fourth quarter of 2006 and down 4.2% sequentially from $40.2 million in the third quarter of 2007. Gross margin was 63.9%, compared to 63.9% in the fourth quarter of 2006 and 63.5% in the third quarter of 2007.
The results for the year ended December 31, 2007 were as follows: net revenues were $134.0 million, compared to $105.0 million for the year ended December 31, 2006, an increase of 27.6%. Gross margin was 63.6%, compared to 63.7% for the year ended December 31, 2006. GAAP operating expenses were $75.6 million, including $56.9 million for research and development and selling, general and administrative expenses, which includes $10.7 million for stock-based compensation, $9.4 million for patent litigation expenses, $9.8 million for a litigation settlement provision, and a credit of $0.5 million for the sublease of the company’s Los Gatos property.
"MPS had strong growth in 2007, which was the result of putting the right strategy in place in earlier years", said Michael Hsing, CEO and founder of MPS. "We will continue along the same path, focusing on new product introductions, expanding our silicon content, and attacking the large analog markets outside Greater China, including North America, Europe and Japan. I am confident MPS is well positioned for long-term future growth."
The company also announced that its Board of Directors has approved a stock repurchase program that authorizes MPS to repurchase up to $25 million dollars in the aggregate of its common stock during this calendar year.
"After a review of MPS’ financial position and cash flow projections, our Board concluded that it was in the best interest of our shareholders to engage in this repurchase program," said Rick Neely, Chief Financial Officer of MPS. "In addition, the repurchase program will help to offset dilution associated with our employee stock plans."
The repurchases will be funded from available working capital. As of December 31, 2007, MPS had cash, cash equivalents, restricted cash and short-term investments of approximately $118 million, and approximately 35 million diluted weighted average shares of common stock outstanding.