Monolithic Power Systems Announces Consecutive Record Revenue Results; $50 Million Stock Repurchase Program
Monolithic Power Systems (MPS) announced financial results for the quarter and half year ended June 30, 2010.
The results for the quarter ended June 30, 2010 are as follows:
Net revenues were $55.7 million, an increase of 10.8% sequentially from $50.3 million in the first quarter of 2010 and 35.3% from $41.2 million in the second quarter of 2009. Gross margin was 58.2%, compared to 58.3% in the first quarter of 2010 and 59.1% in the second quarter of 2009. GAAP operating expenses were $25.6 million, including $23.4 million for research and development and selling, general and administrative expenses, which includes $5.4 million for stock-based compensation and $2.2 million for litigation expenses. Non-GAAP operating expenses were $20.2 million, excluding $5.4 million for stock-based compensation, compared to $17.5 million for the three months ended June 30, 2009. GAAP net income was $6.4 million, with GAAP earnings per share of $0.17 per diluted share. Non-GAAP net income was $11.7 million, with non-GAAP earnings per share of $0.31 per diluted share, excluding stock-based compensation and related tax effects.
The results for the half year ended June 30, 2010 are as follows:
Net revenues were $105.9 million, compared to $70.5 million for the half year ended June 30, 2009, an increase of 50.3%. Gross margin was 58.3%, compared to 58.5% for the half year ended June 30, 2009. GAAP operating expenses were $48.6 million, including $44.8 million for research and development and selling, general and administrative expenses, which includes $9.4 million for stock-based compensation and $3.8 million for patent litigation expenses. Non-GAAP operating expenses were $39.3 million, excluding $9.4 million for stock-based compensation, compared to $32.1 million for the half year ended June 30, 2009, an increase of 22.2%. GAAP net income was $12.8 million, with GAAP EPS of $0.33 per diluted share. Non-GAAP net income was $21.6 million, with non-GAAP earnings per share of $0.57 per diluted share, excluding stock-based compensation and related tax effects.
"Our outstanding revenue performance is driven by our new product releases of the last two years", said Michael Hsing, CEO of MPS. "We are now seeing the dramatic top line and bottom line growth from these successful products."
MPS also announced that its Board of Directors has approved a stock repurchase program that authorizes MPS to repurchase up to $50 million dollars in the aggregate of its common stock between August 2, 2010 and December 31, 2011.
"MPS is in a very strong cash position as a result of the record financial results of the past six months. 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.
The repurchases will be funded from available working capital. As of June 3, 2010, MPS had cash, cash equivalents and investments of approximately $209 million, and approximately 38.4 million diluted weighted average shares of common stock outstanding.
