Monolithic Power Systems Announces Fourth Quarter & 2008 Results

Monolithic Power Systems announced financial results for the quarter and year ended December 31, 2008. The results for the year ended December 31, 2008 are as follows: Net revenues were $160.5 million, compared to $134.0 million for the year ended December 31, 2007, an increase of 19.8%. Gross margin was 61.9%, compared to 63.6% for the year ended December 31, 2007.

GAAP operating expenses were $76.8 million, including $70.1 million for research and development and selling, general and administrative expenses, which includes $12.8 million for stock-based compensation and $6.7 million for patent litigation expenses. Non-GAAP operating expenses were $64.0 million, excluding $12.8 million for stock-based compensation. GAAP net income was $24.2 million, with GAAP EPS of $0.67 per diluted share. Non-GAAP net income was $32.3 million, or $0.90 per diluted share, excluding stock-based compensation and related tax effects.

The results for the quarter ended December 31, 2008 are as follows: Net revenues were $34.7 million, down 9.8% from $38.5 million in the fourth quarter of 2007 and down 29.0% sequentially from $48.9 million in the third quarter of 2008. Gross margin was 58.0%, compared to 63.9% in the fourth quarter of 2007 and 62.8% in the third quarter of 2008.

GAAP operating expenses were $17.9 million, including $17.3 million for research and development and selling, general and administrative expenses, which includes $3.6 million for stock-based compensation, and $0.6 million for patent litigation expenses. Non-GAAP operating expenses were $14.3 million, excluding $3.6 million for stock-based compensation. GAAP net income was $3.2 million, with GAAP EPS of $0.09 per diluted share. Non-GAAP net income of $5.5 million, or $0.16 per diluted share, excluding stock-based compensation and related tax effects.

"2008 was another outstanding year for MPS despite the unfavorable operating environment," said Michael Hsing, Chief Executive Officer and founder of MPS. "Our history has proven that we have the right strategies combined with excellent execution. We will continue to have a lean and adaptive operation, focus on developing superior leading edge products, and expand our regional sales. We believe this recession is a business opportunity for MPS. As long as we continue to execute on our strategies, we will be a much stronger company once the economy recovers."