Power Integrations announced financial results for the quarter ended September 30, 2016. Net revenues for the third quarter were $103.8 million, an increase of seven percent from the prior quarter, and up 17 percent compared to the third quarter of 2015. Net income was $14.2 million or $0.48 per diluted share, compared to $0.38 per diluted share in the prior quarter and $0.39 per diluted share in the third quarter of 2015. Cash flow from operations was $26.3 million.
Commented Balu Balakrishnan, president and CEO of Power Integrations: “Our quarterly revenues grew 17 percent year-over-year, surpassing $100 million for the first time. We believe we are on track for double-digit revenue growth in 2016, and we expect to carry strong momentum into 2017 on the strength of the InnoSwitchâ„¢ product cycle, new products for the high-power and lighting markets, and a robust product pipeline that will further expand our addressable market in the years ahead.â€
Additional highlights include: Power Integrations paid a dividend of $0.13 per share on September 30, 2016. A dividend of $0.13 per share is scheduled to be paid on December 30, 2016, to stockholders of record as of November 30, 2016. The company had $226.6 million in cash and short-term marketable securities at quarter-end, an increase of $24.3 million during the quarter. Power Integrations was issued 15 U.S. patents during the third quarter.
The company issued the following forecast for the fourth quarter of 2016: Revenues are expected to be in a range of $101 million plus or minus $3 million. GAAP gross margin is expected to be approximately 48.8 percent; non-GAAP gross margin is expected to be approximately 50 percent. (The difference between the expected GAAP and non-GAAP gross margins is composed of approximately 0.9 percentage points from amortization of acquisition-related intangible assets and 0.3 percentage points from stock-based compensation.)
GAAP operating expenses are expected to be between $37 million and $38 million; non-GAAP operating expenses are expected to be between $31 million and $32 million. (Non-GAAP operating expenses exclude approximately $5.4 million of stock-based compensation expenses and $0.6 million of amortization of acquisition-related intangible assets.)
