News

Monolithic Power Systems Announces Results for the Quarter and Year Ended

February 08, 2010 by Jeff Shepard

Monolithic Power Systems (MPS) announced financial results for the quarter and year ended December 31, 2009.

The results for the quarter ended December 31, 2009 were as follows: net revenues for the quarter ended December 31, 2009, were $46.5 million, down 3.0% sequentially from $48.0 million in the third quarter of 2009 and up 34.1% from $34.7 million in the fourth quarter of 2008.

Gross margin for the quarter were 58.7%, compared to 60.7% in the third quarter of 2009 and 58.0% in the fourth quarter of 2008. GAAP operating expenses of $22.9 million, including $20.6 million for research and development and selling, general and administrative expenses, which includes $4.2 million for stock-based compensation and $2.4 million for litigation expenses.

Non-GAAP operating expenses were $18.8 million, excluding $4.2 million for stock-based compensation, compared to $14.3 million for the three months ended December 31, 2008. GAAP net income was $4.7 million, with GAAP earnings per share of $0.12 per diluted share. Non-GAAP net income was $7.7 million, or $0.20 per diluted share, excluding stock-based compensation and related tax effects.

The results for the year ended December 31, 2009 are as follows: Net revenues of $165.0 million, compared to $160.5 million for the year ended December 31, 2008, an increase of 2.8%. Gross margin of 59.2%, compared to 61.9% for the year ended December 31, 2008.

GAAP operating expenses of $78.1 million, including $75.0 million for research and development and selling, general and administrative expenses, which includes $14.4 million for stock-based compensation, $9.5 million for litigation expenses and a credit of $6.4 million for the net effect of a litigation provision reversal.

Non-GAAP operating expenses of $70.1 million, excluding $14.4 million for stock-based compensation and a credit of $6.4 million for the net effect of a litigation provision reversal, compared to $64.0 million for the year ended December 31, 2008, an increase of 9.6%. GAAP net income of $19.7 million, with GAAP EPS of $0.54 per diluted share. Non-GAAP net income of $24.9 million, or $0.68 per diluted share, excluding stock-based compensation and related tax effects and a credit of $6.4 million for the net effect of a litigation provision reversal.

"2009 was a recessionary year, and MPS reacted aggressively", said Michael Hsing, CEO of MPS. "We used a few select products to secure and gain a significant share in a very competitive LCD TV market. This resulted in a relatively small reduction in gross margin%age, but we were able to grow revenues in 2009 despite a sharp decline in our CCFL revenues and market ASP’s in general. For 2010, we expect our pricing approach to return to normal practices. Our best achievement in 2009 was the development and release of new technologies that will expand our market segments and reduce manufacturing costs in the future. Based on these technologies, we released a record number of new products in 2009. With these new products we believe that we will penetrate new markets and continue to expand our market share on a much broader scale. We believe this strategy will enable MPS to accelerate our revenue and net income growth rate well above our analog competition in 2010."