Power Integrations Sees Opportunities Ahead for High-Voltage Products

Power Integrations announced financial results for the quarter ended September 30, 2017. Net revenues for the third quarter were $111.3 million, an increase of three percent from the prior quarter and nine percent from the third quarter of 2016.

Net income was $16.5 million or $0.54 per diluted share, compared to $0.46 per diluted share in the prior quarter and $0.43 per diluted share in the third quarter of 2016. Cash flow from operations was $24.6 million for the quarter.

Commented Balu Balakrishnan, president and CEO of Power Integrations: “Revenues are up 13 percent for the first nine months of 2017, putting us on course for another year of double-digit revenue growth.

“We have a broad set of attractive opportunities ahead of us in the high-voltage power conversion market, including global trends such as energy efficiency as well as fast-growing vertical markets like rapid charging, smart homes and clean energy.

“We have a strong portfolio of products with which to address these opportunities, including our new InnoSwitch™3 family of ICs, which significantly advances the state of the art in power-supply design with its unprecedented levels of integration and energy efficiency,” Balakrishnan concluded.

Additional highlights include:

• Power Integrations repurchased approximately 96,000 shares of its common stock during the third quarter for $6.7 million; the company has $46.8 million remaining under its current repurchase authorization.
• Power Integrations paid a dividend of $0.14 per share on September 29, 2017. A dividend of $0.14 per share is scheduled to be paid on December 29, 2017, to stockholders of record as of November 30, 2017.
• Power Integrations was issued 17 U.S. patents during the third quarter of 2017.

The company issued the following forecast for the fourth quarter of 2017:

• Revenues are expected to be $110 million plus or minus $3 million.
• GAAP gross margin is expected to be approximately 49.8 percent; non-GAAP gross margin is expected to be approximately 51 percent. (The difference between the expected GAAP and non-GAAP gross margins is composed of approximately 0.9 percentage points from amortization of acquisition-related intangible assets and 0.3 percentage points from stock-based compensation.)
• GAAP operating expenses are expected to be between $40 million and $40.5 million; non-GAAP operating expenses are expected to be between $33 million and $33.5 million. (Non-GAAP expenses are expected to exclude approximately $6.5 million of stock-based compensation expenses and $0.5 million of amortization of acquisition-related intangible assets.)