Power Integrations Announces Strong Financial Results

Power Integrations announced financial results for the quarter and fiscal year ended December 31, 2010. Net revenues for the fourth quarter were $73.0 million, up 10% compared with the fourth quarter of 2009, and down 3% compared with the third quarter of 2010. Net income was $8.9 million or $0.30 per diluted share, compared with $9.2 million or $0.32 per diluted share in the year-ago quarter and $12.6 million or $0.43 per diluted share in the third quarter of 2010. Gross margin for the fourth quarter was 49.5%; operating margin was 15.0%.

In addition to its GAAP results, the company provided certain non-GAAP financial measures that exclude stock-based compensation expenses and the related tax effects. Non-GAAP net income for the fourth quarter was $11.6 million or $0.39 per diluted share, compared with $12.2 million or $0.42 per diluted share in the year-ago quarter and $15.5 million or $0.53 per diluted share, in the third quarter of 2010. Non-GAAP gross margin for the fourth quarter was 49.8%; non-GAAP operating margin was 19.5%.

Full-year revenues for 2010 were $299.8 million, an increase of 39% compared with 2009. Net income for the full year was $1.67 per diluted share, more than double the $0.82 per diluted share reported in the prior year. Non-GAAP net income for the full year was $2.00 per diluted share, an increase of 69% from $1.18 per diluted share in the prior year.

Commented Balu Balakrishnan, President and CEO of Power Integrations: "2010 was a landmark year for Power Integrations, as shipments surpassed one billion units and we approached $300 million in annual revenues. We grew our top line by 39%, achieving our ninth consecutive year of revenue growth. We also had an excellent year from a profitability standpoint, expanding our non-GAAP operating margin by more than five percentage points and growing our non-GAAP earnings by more than 75%."

Balakrishnan continued: "We also made great progress last year in expanding our product portfolio and solidifying our leadership in high-voltage technology to position us for continued growth. We introduced a record eight new product families in 2010, including LinkSwitch™-PH and LinkSwitch-PL for LED lighting, our Zero series for ultra-low standby, and two new members of our Hiper™ series, targeting high-power applications.

"We also expanded our high-voltage technology presence with multiple strategic transactions, including our investment in SemiSouth Laboratories and, most recently, our acquisition of Qspeed Semiconductor, whose high-performance diode technology is a great complement to our new high-power products. The expansion of our high-voltage footprint – both organically and through strategic transactions – is reflected in the growth of our patent portfolio. We received and acquired more than 100 U.S. patents during the year, increasing the size of our U.S. patent holdings by more than a third."