Power Integrations Results Reflect Challenging Conditions
Power Integrations announced financial results for the quarter and year ended December 31, 2015. Net revenues for the fourth quarter were $87.3 million, down two percent from the prior quarter and up one percent compared to the fourth quarter of 2014. Net income was $12.7 million or $0.44 per diluted share, compared to $0.39 in the prior quarter and $0.48 in the fourth quarter of 2014. Cash flow from operations for the fourth quarter was $24.8 million.
In addition to its GAAP results, the company provided non-GAAP financial measures that exclude stock-based compensation expenses, amortization of intangible assets and other acquisition-related expenses, the tax effects of these items, and a tax benefit recognized in 2014. Non-GAAP net income for the fourth quarter was $16.9 million or $0.58 per diluted share, compared with $0.55 in the prior quarter and $0.59 in the fourth quarter of 2014.
For the full year, net revenues were $344.0 million, down one percent from the prior year. Net income for the year was $39.1 million or $1.32 per diluted share, compared to $1.93 in the prior year. Non-GAAP net income for 2015 was $2.03 per diluted share, compared to $2.40 in the prior year. Cash flow from operations for the year was $92.2 million, compared to $85.6 million in the prior year.
Commented Balu Balakrishnan, president and CEO of Power Integrations: â€œDespite challenging economic conditions and a steep year-over-year decline in revenues from the PC market, quarterly revenues grew modestly from a year ago, and we generated nearly $25 million in cash flow from operations for the quarter. While we expect the March quarter to be sequentially lower due to seasonal factors, recent order trends and design wins point to strong sequential growth in the second quarter. The InnoSwitchâ„¢ product cycle continues to gain steam, and we have a promising pipeline of innovative new products on the way for key growth areas such as rapid charging, efficient lighting, renewable energy and high-power industrial applications.â€
Additional highlights included: The company paid a dividend of $0.12 per share on December 31. The companyâ€™s board has declared dividends of $0.13 per share for each quarter of 2016, the first of which will be paid on March 31, 2016 to stockholders of record as of February 29, 2016. Power Integrations had $173.9 million in cash and short-term marketable securities at quarter-end, an increase of $22.9 million during the quarter. Power Integrations was issued 16 U.S. patents during the fourth quarter and had 764 U.S. patents at quarter-end.
The company issued the following forecast for the first quarter of 2016: Revenues are expected to be in a range of $84 million plus or minus $3 million. Non-GAAP gross margin is expected to be approximately 51 percent. (Excludes approximately $0.2 million of stock-based compensation expense and $1 million of amortization of acquisition-related intangible assets.) GAAP gross margin is expected to be approximately 49.6 percent. Non-GAAP operating expenses are expected to be between $30 million and $31 million. (Excludes approximately $4 million of stock-based compensation expenses and $0.7 million of amortization of acquisition-related intangible assets.) GAAP operating expenses are expected to be between $34.7 million and $35.7 million.