Power Integrations Reports Selected Fourth-Quarter and Full-Year Financial Results
Power Integrations announced selected financial results for the quarter and year ended December 31, 2006. All numbers should be considered preliminary and subject to change, as the company is yet to complete its customary closing and review procedures.
Preliminary net revenue for the fourth quarter was $41.3 million, an increase of 9% from the year-ago quarter and a decline of 7% from the third quarter of 2006. Fourth-quarter GAAP gross margin is expected to be approximately 53%, including an impact of approximately one margin point from stock-based compensation. Preliminary full-year net revenue for 2006 totaled $162.4 million, an increase of 13% compared to 2005. GAAP gross margin for the full year is expected to exceed 54%, including an impact of approximately one margin point from stock-based compensation, offset by a favorable margin impact of approximately one margin point from the ship-and-debit settlement recognized in the second quarter.
Cash and investments totaled $132.7 million as of December 31, 2006, an increase of $4 million during the quarter. For the year, the company’s balance of cash and investments increased by $2.2 million after using $20 million during the year for share repurchases, and incurring approximately $18 million in expenses for its restatement efforts and patent litigation.
"Our revenues for the fourth quarter were clearly impacted by the broad-based supply-chain issues being observed throughout the industry," said Balu Balakrishnan, President and CEO of Power Integrations. "After a very strong October, bookings slowed significantly in November and December, and revenues from the consumer, computer and industrial segments were all sequentially lower. "However, bookings have picked up significantly since the start of the year, and we believe that sequential revenue growth is likely to resume in the first quarter," continued Mr. Balakrishnan.
