Power Integrations Inc. (San Jose, CA) announced financial results for its fourth quarter and year ended December 31, 2002. Net revenues for the fourth quarter of 2002 increased four percent to $29.2 million from $28.2 million in the third quarter of 2002, and 23 percent from $23.6 million in the fourth quarter of 2001. Net income for the fourth quarter increased 55 percent to $3.6 million, or $0.12 per diluted share, from $2.3 million, or $0.08 per diluted share, in the third quarter. For the same period last year, the company reported net income of $1.3 million, or $0.04 per diluted share.
For the year ended December 31, 2002, the company reported net revenues of $108.2 million compared with $94.1 million reported in 2001. Net income for 2002 was $9.6 million, or $0.32 per diluted share, compared with net income of $6.7 million, or $0.23 per diluted share, in 2001.
"2002 was a success on all fronts for Power Integrations," said Balu Balakrishnan, president and chief executive officer of the company. "While our end markets were relatively flat, we grew our revenue by 15 percent entirely through market penetration. We also increased our cash by $32.5 million, ending the year with $109.4 million. Furthermore, we significantly reduced manufacturing costs, which positions us to achieve gross margins of 48 to 50 percent beginning in the first quarter. As a result of the success in our market penetration strategy, we expect to grow revenues by 15 to 25 percent in 2003, assuming end-market growth of 0 to 10 percent."
