Monolithic Power Systems Announces Record Third Quarter Financial Results
Monolithic Power Systems (MPS) announced financial results for the three and nine months ended September 30, 2008.
The results for the quarter ended September 30, 2008 are as follows: net revenues were $48.9 million, up 21.7% from $40.2 million in the third quarter of 2007 and up 17.8% sequentially from $41.5 million in the second quarter of 2008. Gross margin was 62.8%, compared to 63.5% in the third quarter of 2007 and 63.0% in the second quarter of 2008. GAAP operating expenses were $20.1 million, including $19.0 million for research and development and selling, general and administrative expenses, which includes $3.3 million for stock-based compensation, and $1.1 million for patent litigation expenses. Non-GAAP operating expenses were $16.8 million, excluding $3.3 million for stock-based compensation. GAAP net income was $10.5 million, with GAAP EPS of $0.29 per diluted share. Non-GAAP net income was $12.1 million, or $0.33 per diluted share, excluding stock-based compensation and related tax effects.
The results for the nine months ended September 30, 2008 are as follows: net revenues were $125.8 million, compared to $95.5 million for the nine months ended September 30, 2007, an increase of 31.7%. Gross margin was 62.9%, compared to 63.5% for the nine months ended September 30, 2007. GAAP operating expenses were $58.9 million, including $52.8 million for research and development and selling, general and administrative expenses, which includes $9.2 million for stock-based compensation and $6.1 million for patent litigation expenses. Non-GAAP operating expenses were $49.7 million, excluding $9.2 million for stock-based compensation. GAAP net income was $21.0 million, with GAAP EPS of $0.58 per diluted share. Non-GAAP net income of $26.9 million, or $0.74 per diluted share, excluding stock-based compensation and related tax effects.
"MPS saw very strong results this quarter, particularly in our dc to dc product segment," said Michael Hsing, Chief Executive Officer and founder of MPS. "We are well-positioned to continue to capture opportunities in this market with our tremendous slate of new products. As our revenue approached $50M this quarter, MPS is becoming a major player in the Power Management segment of the analog semiconductor market."
"While MPS has been doing well and we continue to deliver innovative products, we recognize that the last few weeks have seen a deterioration in general demand for electronic products, as a result of the worldwide financial crisis and associated macro-economic slowdown. Despite excellent execution, MPS is affected by the current economic crisis. For the fourth quarter of 2008, our normal seasonality in the consumer segment typically means that the fourth quarter is somewhat down sequentially from the third quarter. We have noticed some cancelations and delays in new projects. On the other hand, we also see many of our new products starting to ramp up to volume production. Therefore, our fourth quarter revenue is very uncertain compared with prior years. Our fourth quarter revenue guidance is in a wider range of 39 to 43 million dollars," Hsing concluded.
