News

Power Integrations sees Sales Impact from InnoSwitch Products

April 28, 2016 by Jeff Shepard

Power Integrations announced financial results for the quarter ended March 31, 2016. Net revenues for the first quarter were $85.3 million, down two percent from the prior quarter and up three percent compared to the first quarter of 2015. Net income was $8.8 million or $0.30 per diluted share, compared to $0.44 in the prior quarter and $0.21 in the first quarter of 2015. Cash flow from operations for the first quarter was $20.3 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, and the tax effects of these items. Non-GAAP net income for the first quarter was $14.7 million or $0.50 per diluted share, compared with $0.58 in the prior quarter and $0.43 in the first quarter of 2015.

Commented Balu Balakrishnan, president and CEO of Power Integrations: “Revenues increased from a year ago, and we expect continued growth in the second quarter as demand for our InnoSwitch™ products continues to ramp in the mobile-device market. The broader InnoSwitch product cycle continues to take shape with the recent introductions of InnoSwitch-CE and the 900-Volt InnoSwitch-EP, and we have a robust pipeline of innovative new products on the way that will further expand our addressable market.”

Additional highlights include: Power Integrations repurchased approximately 138,000 shares of its common stock during the quarter for $6.1 million. At quarter-end the company had $23.9 million remaining on its repurchase authorization. The company paid a dividend of $0.13 per share on March 31, 2016. A dividend of $0.13 per share will be paid on June 30, 2016 to stockholders of record as of May 31, 2016. Power Integrations had $185.2 million in cash and short-term marketable securities at quarter-end, an increase of $11.3 million during the quarter. Power Integrations was issued 14 U.S. patents during the first quarter.

The company issued the following forecast for the second quarter of 2016: Revenues are expected to be in a range of $88 million to $94 million. Non-GAAP gross margin is expected to be between 50.5 percent and 51 percent. (Excludes approximately $0.3 million of stock-based compensation expense and $1 million of amortization of acquisition-related intangible assets.) GAAP gross margin is expected to be between 49.1 percent and 49.6 percent. Non-GAAP operating expenses are expected to be approximately $31 million. (Excludes approximately $4.8 million of stock-based compensation expenses and $0.6 million of amortization of acquisition-related intangible assets.) GAAP operating expenses are expected to be approximately $36.4 million.