Power Integrations Reports Fourth-Quarter and Full-Year 2011 Financial Results

Power Integrations announced financial results for the quarter ended December 31, 2011. Net revenues for the fourth quarter were $66.7 million, down 11 percent from the prior quarter and down nine percent compared with the fourth quarter of 2010. Net income was $6.3 million or $0.22 per diluted share, compared with $0.25 per diluted share in the prior quarter and $0.30 per diluted share in the fourth quarter of 2010. Gross margin for the fourth quarter was 47.3 percent; operating margin was 11.7 percent.

In addition to its GAAP results, the company provided certain non-GAAP financial measures that exclude stock-based compensation expenses, amortization of acquisition-related intangible assets and the fair-value write-up of acquired inventory, and the tax effects of these items. Non-GAAP net income for the quarter was $8.5 million or $0.29 per diluted share, compared with $0.32 per diluted share in the prior quarter and $0.39 per diluted share in the fourth quarter of 2010. Non-GAAP gross margin for the fourth quarter was 47.8 percent; non-GAAP operating margin was 15.6 percent.

For the full year, net revenues were $298.7 million, a slight decrease compared with $299.8 million in the prior year. Net income for 2011 was $34.3 million or $1.14 per diluted share, compared with $49.5 million or $1.67 per diluted share in the prior year. Non-GAAP net income was $43.2 million or $1.44 per diluted share, compared with $59.4 million or $2.01 per diluted share in the prior year.

Commented Balu Balakrishnan, President and CEO of Power Integrations: "As expected, our fourth-quarter revenues were down from the prior quarter reflecting the industry-wide slowdown in demand. However, we have seen an uptick in orders of late, and while it is difficult to predict the trajectory of the recovery, it appears that business conditions have stabilized and perhaps begun to improve. Moreover, our gross margin increased in the fourth quarter as we began to realize the benefits of our ongoing cost-reduction initiatives. We anticipate further margin expansion in 2012 as these efforts continue."

"In spite of challenging macroeconomic conditions we reported record operating cash flow of $69.2 million for 2011. Looking ahead, the global trend toward more energy-efficient electronics and lighting technologies continues to gather steam, and we are a leading enabler in both of these areas. We also made excellent progress last year winning designs, ramping new products and growing our customer base, and we believe we are well positioned for growth as cyclical headwinds abate."