News

Power Integrations Reports Third Consecutive Quarter of Record Revenues and Net Income

April 28, 2010 by Jeff Shepard

Power Integrations announced financial results for the quarter ended March 31, 2010. Net revenues for the quarter were $71.5 million, an increase of 8% compared with the prior quarter and 77% compared with the first quarter of 2009. Net income was a record $12.3 million, or $0.42 per diluted share, compared with net income of $9.2 million, or $0.32 per diluted share in the prior quarter and net income of $0.4 million, or $0.01 per share, in the first quarter of 2009. Gross margin for the first quarter was 50.2%; operating margin was 20.8%.

In addition to its GAAP results, the company provided certain non-GAAP measures that exclude stock-based compensation expenses and the related tax effects. Non-GAAP net income for the first quarter was $14.3 million or $0.49 per diluted share, compared with $12.2 million or $0.42 per diluted share in the prior quarter and $3.9 million or $0.14 per diluted share in the first quarter of 2009. Non-GAAP gross margin for the quarter was 50.5%; non-GAAP operating margin was 23.6%.

Commented Balu Balakrishnan, President and CEO of Power Integrations: "We achieved record revenues for the third straight quarter, surpassing $70 million in quarterly revenues for the first time ever, and we expanded our non-GAAP operating margin for the fifth straight quarter. Bookings increased dramatically during the quarter and have remained strong in April. While the strength in orders and resulting expansion of our backlog is partly attributable to extended lead times, we believe our revenue growth is being driven mainly by end-market demand as well as greater penetration of our products into the power-supply market."

Balakrishnan continued: "The demand for more energy-efficient power supplies continues to be a key driver in our business. Designers looking to meet standards such as the European Union’s new requirements for standby power consumption are increasingly turning to our EcoSmart® technology to replace inefficient discrete and passive power supplies. Many manufacturers are tightening their specs beyond the requirements, both of their own volition and in response to incentive programs such as ENERGY STAR® and 80 PLUS®, as OEMs clearly see an advantage in offering greener products.

"During the first quarter we won multiple 80 PLUS high-efficiency designs for a top-tier PC OEM with two new, yet-to-be-announced members of our Hiper family of high-power ICs – our first high-volume design wins in the high-power segment of the ac-dc market. We have also won our first designs with the brand-new CAPZero family of X-capacitor discharge chips, which complement our EcoSmart technology by further reducing standby power consumption in high-power applications. We expect to begin production shipments of both of these new product families in the second quarter."