Power Integrations Announces First-Quarter Financial Results; Departure Of CFO
Power Integrations announced financial results for the quarter ended March 31, 2008. The company’s net revenues for the quarter were $51.8 million, up 14% compared to $45.3 million in the first quarter of 2007 and down two% compared to $52.7 million in the fourth quarter of 2007.
Gross margin under generally accepted accounting principles (GAAP) was 54.2%. GAAP net income was $7.2 million, or $0.22 per diluted share, compared to $6.5 million, or $0.21 per diluted share, in the year-ago quarter and $6.6 million, or $0.20 per diluted share, in the fourth quarter of 2007.
On a non-GAAP basis, first-quarter gross margin was 55.1%. Net income on a non-GAAP basis was $10.6 million, or $0.33 per diluted share. This compares to non-GAAP net income of $9.1 million, or $0.30 per share, in the year-ago quarter and $12.4 million, or $0.38 per share, in the fourth quarter of 2007. The sequential decrease in non-GAAP earnings was driven primarily by increased operating expenses resulting from the company’s acquisition of Potentia Semiconductor on December 31, 2007, as well as reduced other income reflecting lower interest rates on cash and investments. Non-GAAP results exclude stock-based compensation expenses, an in-process research and development charge recognized in the fourth quarter of 2007 in conjunction with the company’s acquisition of Potentia Semiconductor, and the tax differences resulting from these exclusions.
Power Integrations ended the quarter with $213.1 million in cash and investments, an increase of $8.9 million during the quarter. The company repurchased approximately 202,000 shares of company stock during the quarter for a total of $5.5 million in cash.
"Our first-quarter results were strong despite the uncertain macroeconomic climate," said Balu Balakrishnan, President and CEO of Power Integrations. "Revenues were down sequentially due primarily to softness in the computer market but increased 14% on a year-over-year basis compared to a strong first quarter of 2007. We also improved our gross margin significantly compared to the fourth quarter and generated nearly $10 million in cash flow from operations during the quarter."
The company also announced that its Chief Financial Officer, Rafael Torres, will be leaving the company. Torres has served as the company’s CFO since 2006. He has agreed to remain in his role for the next several months while the company conducts a search for his replacement.
"Rafael led us through a challenging period in our history as we restated our financials and regained our Nasdaq listing, and he leaves us in an excellent financial position," said Balakrishnan. "I thank him for his contributions, and I am grateful that he has agreed to remain with us as we search for his successor."
