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 InnoSwitchâ„¢ 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.â€
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.