[July 28, 2016] |
|
Power Integrations Reports Second-Quarter Financial Results
Power Integrations (Nasdaq: POWI)
today announced financial results for the quarter ended June 30, 2016.
Net revenues for the second quarter were $97.2 million, up 14 percent
from the prior quarter and also up 14 percent compared to the second
quarter of 2015. Net income was $11.3 million or $0.38 per diluted
share, compared to $0.30 per diluted share in the prior quarter and
$0.29 per diluted share in the second quarter of 2015. Cash flow from
operations for the second quarter was $23.6 million.
In addition to its GAAP results, the company provided certain non-GAAP
financial measures that exclude stock-based compensation expenses,
amortization of intangible assets, other acquisition-related expenses,
and the tax effects of these items. Non-GAAP net income for the second
quarter was $17.7 million or $0.60 per diluted share, compared with
$0.50 per diluted share in the prior quarter and $0.47 per diluted share
in the second quarter of 2015.
Commented Balu Balakrishnan, president and CEO of Power Integrations:
"We achieved record quarterly revenues, with sequential growth across
all four end-market categories. Growth was strongest in the
communications market, where our InnoSwitch™ products continue to make
gains in rapid-charging applications for the mobile-device market. In
spite of a challenging demand environment for the semiconductor
industry, our first-half revenues increased nine percent from the prior
year, and we expect healthy year-over-year growth to continue in the
second half of the year."
Additional Highlights
-
Power Integrations paid a dividend of $0.13 per share on June 30,
2016. A dividend of $0.13 per share is scheduled to be paid on
September 30, 2016 to stockholders of record as of August 31, 2016.
-
The company had $202.2 million in cash and short-term marketable
securities at quarter-end, an increase of $17.1 million during the
quarter.
-
Power Integrations received 18 U.S. patents during the second quarter.
Financial Outlook
The company issued the following forecast for the third quarter of 2016:
-
Revenues are expected to be in a range of $96 million to $102 million.
-
GAAP gross margin is expected to be between 48.7 percent and 49.2
percent. Non-GAAP gross margin is expected to be between 50.0 percent
and 50.5 percent. (The difference between the expected GAAP and
non-GAAP gross margins is composed of approximately 1.0 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 approximately $36.5
million. Non-GAAP operating expenses are expected to be approximately
$31 million. (Non-GAAP operating expenses exclude approximately $4.9
million of stock-based compensation expenses and $0.6 million of
amortization of acquisition-related intangible assets.)
Conference Call Today at 1:30 p.m. Pacific Time
Power Integrations management will hold a conference call today at 1:30
p.m. PT. Members of the investment community can join the call by
dialing 1-617-826-1698. The call will also be available on the investor
section of the company's website, http://investors.power.com.
About Power Integrations
Power
Integrations, Inc. is a leading innovator in semiconductor
technologies for high-voltage power-conversion. The company's products
are key building blocks in the clean-power ecosystem, enabling the
generation of renewable energy as well as the efficient transmission and
consumption of power in applications ranging from milliwatts to
megawatts. For more information please visit www.power.com.
Note Regarding Use of Non-GAAP Financial Measures
In addition to the company's consolidated financial statements, which
are presented according to GAAP, the company provides certain non-GAAP
financial information that excludes stock-based compensation expenses
recorded under ASC 718-10, amortization of acquisition-related
intangible assets and the write-up of acquired inventory, acquisition
expenses, severance and transition expenses, and the tax effects of
these items. The company uses these measures in its own financial and
operational decision-making and, with respect to one measure, in setting
performance targets for employee-compensation purposes. Further, the
company believes that these non-GAAP measures offer an important
analytical tool to help investors understand the company's core
operating results and trends, and to facilitate comparability with the
operating results of other companies that provide similar measures.
These non-GAAP measures have certain limitations as analytical tools and
are not meant to be considered in isolation or as a substitute for GAAP
financial information. For example, stock-based compensation is an
important component of the company's compensation mix, and will continue
to result in significant expenses in the company's GAAP results for the
foreseeable future, but is not reflected in the non-GAAP measures. Also,
other companies, including companies in Power Integrations' industry,
may calculate non-GAAP measures differently, limiting their usefulness
as comparative measures.
Note Regarding Forward-Looking Statements
The statements in this press release regarding the company's forecast
for its third-quarter financial performance and expected second-half
revenue growth are forward-looking statements reflecting management's
current expectations and beliefs. These forward-looking statements are
based on current information that is, by its nature, subject to rapid
and even abrupt change. Due to risks and uncertainties associated with
the company's business, actual results could differ materially from
those projected or implied by these statements. These risks and
uncertainties include, but are not limited to: changes in global
macroeconomic conditions, which may impact the level of demand for the
company's products; potential changes and shifts in customer demand away
from end products that utilize the company's integrated circuits to end
products that do not incorporate the company's products; the effects of
competition, which may cause the company to decrease its selling prices
for its products; the outcome and cost of patent litigation, which may
affect sales of the company's products or could result in higher
expenses and charges than currently expected; unforeseen costs and
expenses; and unfavorable fluctuations in component costs or operating
expenses resulting from changes in commodity prices and/or exchange
rates. In addition, new product introductions and design wins are
subject to the risks and uncertainties that typically accompany
development and delivery of complex technologies to the marketplace,
including product development delays and defects and market acceptance
of the new products. These and other risk factors that may cause actual
results to differ are more fully explained under the caption "Risk
Factors" in the company's most recent Annual Report on Form 10-K, filed
with the Securities and Exchange Commission (SEC) on February 11, 2016.
The company is under no obligation (and expressly disclaims any
obligation) to update or alter its forward-looking statements, whether
as a result of new information, future events or otherwise, except as
otherwise required by the rules and regulations of the SEC.
Power Integrations, InnoSwitch and the Power Integrations logo are
trademarks or registered trademarks of Power Integrations, Inc. All
other trademarks are property of their respective owners.
|
POWER INTEGRATIONS, INC.
|
CONSOLIDATED STATEMENTS OF INCOME
|
(in thousands, except per-share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
|
June 30, 2016
|
|
March 31, 2016
|
|
June 30, 2015
|
|
|
June 30, 2016
|
|
June 30, 2015
|
NET REVENUES
|
|
$
|
97,169
|
|
|
$
|
85,326
|
|
|
$
|
85,265
|
|
|
|
$
|
182,495
|
|
|
$
|
167,822
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COST OF REVENUES
|
|
|
49,532
|
|
|
|
42,379
|
|
|
|
41,247
|
|
|
|
|
91,911
|
|
|
|
81,512
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GROSS PROFIT
|
|
|
47,637
|
|
|
|
42,947
|
|
|
|
44,018
|
|
|
|
|
90,584
|
|
|
|
86,310
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
|
15,859
|
|
|
|
14,779
|
|
|
|
14,683
|
|
|
|
|
30,638
|
|
|
|
29,256
|
|
Sales and marketing
|
|
|
11,407
|
|
|
|
10,740
|
|
|
|
11,567
|
|
|
|
|
22,147
|
|
|
|
22,874
|
|
General and administrative
|
|
|
8,133
|
|
|
|
7,850
|
|
|
|
7,480
|
|
|
|
|
15,983
|
|
|
|
15,463
|
|
Amortization of acquisition-related intangible assets
|
|
|
611
|
|
|
|
666
|
|
|
|
693
|
|
|
|
|
1,277
|
|
|
|
1,443
|
|
Acquisition expenses, severance and transition costs
|
|
|
-
|
|
|
|
-
|
|
|
|
391
|
|
|
|
|
-
|
|
|
|
1,113
|
|
Total operating expenses
|
|
|
36,010
|
|
|
|
34,035
|
|
|
|
34,814
|
|
|
|
|
70,045
|
|
|
|
70,149
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME FROM OPERATIONS
|
|
|
11,627
|
|
|
|
8,912
|
|
|
|
9,204
|
|
|
|
|
20,539
|
|
|
|
16,161
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income, net
|
|
|
236
|
|
|
|
261
|
|
|
|
14
|
|
|
|
|
497
|
|
|
|
(209
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME BEFORE INCOME TAXES
|
|
|
11,863
|
|
|
|
9,173
|
|
|
|
9,218
|
|
|
|
|
21,036
|
|
|
|
15,952
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PROVISION FOR INCOME TAXES
|
|
|
598
|
|
|
|
330
|
|
|
|
628
|
|
|
|
|
928
|
|
|
|
1,019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME
|
|
$
|
11,265
|
|
|
$
|
8,843
|
|
|
$
|
8,590
|
|
|
|
$
|
20,108
|
|
|
$
|
14,933
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER SHARE:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.39
|
|
|
$
|
0.31
|
|
|
$
|
0.29
|
|
|
|
$
|
0.70
|
|
|
$
|
0.51
|
|
Diluted
|
|
$
|
0.38
|
|
|
$
|
0.30
|
|
|
$
|
0.29
|
|
|
|
$
|
0.68
|
|
|
$
|
0.50
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SHARES USED IN PER-SHARE CALCULATION:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
28,850
|
|
|
|
28,679
|
|
|
|
29,368
|
|
|
|
|
28,765
|
|
|
|
29,339
|
|
Diluted
|
|
|
29,422
|
|
|
|
29,244
|
|
|
|
30,034
|
|
|
|
|
29,361
|
|
|
|
30,075
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL INFORMATION:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation expenses included in:
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues
|
|
$
|
293
|
|
|
$
|
90
|
|
|
$
|
257
|
|
|
|
$
|
383
|
|
|
$
|
506
|
|
Research and development
|
|
|
1,940
|
|
|
|
1,469
|
|
|
|
1,306
|
|
|
|
|
3,409
|
|
|
|
2,697
|
|
Sales and marketing
|
|
|
899
|
|
|
|
1,027
|
|
|
|
878
|
|
|
|
|
1,926
|
|
|
|
1,890
|
|
General and administrative
|
|
|
1,880
|
|
|
|
1,830
|
|
|
|
1,309
|
|
|
|
|
3,710
|
|
|
|
3,048
|
|
Total stock-based compensation expense
|
|
$
|
5,012
|
|
|
$
|
4,416
|
|
|
$
|
3,750
|
|
|
|
$
|
9,428
|
|
|
$
|
8,141
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues includes:
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of write-up of acquired inventory
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
|
$
|
-
|
|
|
$
|
309
|
|
Amortization of acquisition-related intangible assets
|
|
$
|
946
|
|
|
$
|
961
|
|
|
$
|
961
|
|
|
|
$
|
1,907
|
|
|
$
|
1,922
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General & administrative expenses include:
|
|
|
|
|
|
|
|
|
|
|
|
Patent-litigation expenses
|
|
$
|
1,658
|
|
|
$
|
1,159
|
|
|
$
|
1,501
|
|
|
|
$
|
2,817
|
|
|
$
|
2,958
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income, net includes:
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of in-place lease intangible assets
|
|
$
|
90
|
|
|
$
|
90
|
|
|
$
|
-
|
|
|
|
$
|
180
|
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REVENUE MIX BY END MARKET
|
|
|
|
|
|
|
|
|
|
|
|
Communications
|
|
|
27
|
%
|
|
|
23
|
%
|
|
|
21
|
%
|
|
|
|
25
|
%
|
|
|
21
|
%
|
Computer
|
|
|
6
|
%
|
|
|
6
|
%
|
|
|
7
|
%
|
|
|
|
6
|
%
|
|
|
7
|
%
|
Consumer
|
|
|
35
|
%
|
|
|
39
|
%
|
|
|
36
|
%
|
|
|
|
37
|
%
|
|
|
37
|
%
|
Industrial
|
|
|
32
|
%
|
|
|
32
|
%
|
|
|
36
|
%
|
|
|
|
32
|
%
|
|
|
35
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
POWER INTEGRATIONS, INC.
|
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP RESULTS
|
(in thousands, except per-share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
|
June 30, 2016
|
|
March 31, 2016
|
|
June 30, 2015
|
|
|
June 30, 2016
|
|
June 30, 2015
|
RECONCILIATION OF GROSS PROFIT
|
|
|
|
|
|
|
|
|
|
|
|
GAAP gross profit
|
|
$
|
47,637
|
|
|
$
|
42,947
|
|
|
$
|
44,018
|
|
|
|
$
|
90,584
|
|
|
$
|
86,310
|
|
GAAP gross margin
|
|
|
49.0
|
%
|
|
|
50.3
|
%
|
|
|
51.6
|
%
|
|
|
|
49.6
|
%
|
|
|
51.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation included in cost of revenues
|
|
|
293
|
|
|
|
90
|
|
|
|
257
|
|
|
|
|
383
|
|
|
|
506
|
|
Amortization of write-up of acquired inventory
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
309
|
|
Amortization of acquisition-related intangible assets
|
|
|
946
|
|
|
|
961
|
|
|
|
961
|
|
|
|
|
1,907
|
|
|
|
1,922
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP gross profit
|
|
$
|
48,876
|
|
|
$
|
43,998
|
|
|
$
|
45,236
|
|
|
|
$
|
92,874
|
|
|
$
|
89,047
|
|
Non-GAAP gross margin
|
|
|
50.3
|
%
|
|
|
51.6
|
%
|
|
|
53.1
|
%
|
|
|
|
50.9
|
%
|
|
|
53.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF OPERATING EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating expenses
|
|
$
|
36,010
|
|
|
$
|
34,035
|
|
|
$
|
34,814
|
|
|
|
$
|
70,045
|
|
|
$
|
70,149
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less:Stock-based compensation expense included in operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
|
1,940
|
|
|
|
1,469
|
|
|
|
1,306
|
|
|
|
|
3,409
|
|
|
|
2,697
|
|
Sales and marketing
|
|
|
899
|
|
|
|
1,027
|
|
|
|
878
|
|
|
|
|
1,926
|
|
|
|
1,890
|
|
General and administrative
|
|
|
1,880
|
|
|
|
1,830
|
|
|
|
1,309
|
|
|
|
|
3,710
|
|
|
|
3,048
|
|
Total
|
|
|
4,719
|
|
|
|
4,326
|
|
|
|
3,493
|
|
|
|
|
9,045
|
|
|
|
7,635
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of acquisition-related intangible assets
|
|
|
611
|
|
|
|
666
|
|
|
|
693
|
|
|
|
|
1,277
|
|
|
|
1,443
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition expenses, severance and transition costs
|
|
|
-
|
|
|
|
-
|
|
|
|
391
|
|
|
|
|
-
|
|
|
|
1,113
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP operating expenses
|
|
$
|
30,680
|
|
|
$
|
29,043
|
|
|
$
|
30,237
|
|
|
|
$
|
59,723
|
|
|
$
|
59,958
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF INCOME FROM OPERATIONS
|
|
|
|
|
|
|
|
|
|
|
|
GAAP income from operations
|
|
$
|
11,627
|
|
|
$
|
8,912
|
|
|
$
|
9,204
|
|
|
|
$
|
20,539
|
|
|
$
|
16,161
|
|
GAAP operating margin
|
|
|
12.0
|
%
|
|
|
10.4
|
%
|
|
|
10.8
|
%
|
|
|
|
11.3
|
%
|
|
|
9.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Add:Total stock-based compensation
|
|
|
5,012
|
|
|
|
4,416
|
|
|
|
3,750
|
|
|
|
|
9,428
|
|
|
|
8,141
|
|
Amortization of write-up of acquired inventory
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
309
|
|
Amortization of acquisition-related intangible assets
|
|
|
1,557
|
|
|
|
1,627
|
|
|
|
1,654
|
|
|
|
|
3,184
|
|
|
|
3,365
|
|
Acquisition expenses, severance and transition costs
|
|
|
-
|
|
|
|
-
|
|
|
|
391
|
|
|
|
|
-
|
|
|
|
1,113
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP income from operations
|
|
$
|
18,196
|
|
|
$
|
14,955
|
|
|
$
|
14,999
|
|
|
|
$
|
33,151
|
|
|
$
|
29,089
|
|
Non-GAAP operating margin
|
|
|
18.7
|
%
|
|
|
17.5
|
%
|
|
|
17.6
|
%
|
|
|
|
18.2
|
%
|
|
|
17.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF PROVISION FOR INCOME TAXES
|
|
|
|
|
|
|
|
|
|
|
|
GAAP provision for income taxes
|
|
$
|
598
|
|
|
$
|
330
|
|
|
$
|
628
|
|
|
|
$
|
928
|
|
|
$
|
1,019
|
|
GAAP effective tax rate
|
|
|
5.0
|
%
|
|
|
3.6
|
%
|
|
|
6.8
|
%
|
|
|
|
4.4
|
%
|
|
|
6.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax effect of adjustments to GAAP results
|
|
|
(225
|
)
|
|
|
(301
|
)
|
|
|
(197
|
)
|
|
|
|
(526
|
)
|
|
|
(718
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP provision for income taxes
|
|
$
|
823
|
|
|
$
|
631
|
|
|
$
|
825
|
|
|
|
$
|
1,454
|
|
|
$
|
1,737
|
|
Non-GAAP effective tax rate
|
|
|
4.4
|
%
|
|
|
4.1
|
%
|
|
|
5.5
|
%
|
|
|
|
4.3
|
%
|
|
|
6.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF NET INCOME PER SHARE (DILUTED)
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income
|
|
$
|
11,265
|
|
|
$
|
8,843
|
|
|
$
|
8,590
|
|
|
|
$
|
20,108
|
|
|
$
|
14,933
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments to GAAP net income
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation
|
|
|
5,012
|
|
|
|
4,416
|
|
|
|
3,750
|
|
|
|
|
9,428
|
|
|
|
8,141
|
|
Amortization of write-up of acquired inventory
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
309
|
|
Amortization of acquisition-related intangible assets
|
|
|
1,557
|
|
|
|
1,627
|
|
|
|
1,654
|
|
|
|
|
3,184
|
|
|
|
3,365
|
|
Acquisition expenses, severance and transition costs
|
|
|
-
|
|
|
|
-
|
|
|
|
391
|
|
|
|
|
-
|
|
|
|
1,113
|
|
Amortization of in-place lease intangible assets
|
|
|
90
|
|
|
|
90
|
|
|
|
-
|
|
|
|
|
180
|
|
|
|
-
|
|
Tax effect of items excluded from non-GAAP results
|
|
|
(225
|
)
|
|
|
(301
|
)
|
|
|
(197
|
)
|
|
|
|
(526
|
)
|
|
|
(718
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income
|
|
$
|
17,699
|
|
|
$
|
14,675
|
|
|
$
|
14,188
|
|
|
|
$
|
32,374
|
|
|
$
|
27,143
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average shares outstanding for calculation of non-GAAP income per
share (diluted)
|
|
|
29,422
|
|
|
|
29,244
|
|
|
|
30,034
|
|
|
|
|
29,361
|
|
|
|
30,075
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income per share (diluted)
|
|
$
|
0.60
|
|
|
$
|
0.50
|
|
|
$
|
0.47
|
|
|
|
$
|
1.10
|
|
|
$
|
0.90
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP income per share
|
|
$
|
0.38
|
|
|
$
|
0.30
|
|
|
$
|
0.29
|
|
|
|
$
|
0.68
|
|
|
$
|
0.50
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
POWER INTEGRATIONS, INC.
|
CONSOLIDATED BALANCE SHEETS
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2016
|
|
March 31, 2016
|
|
December 31, 2015
|
ASSETS
|
|
|
|
|
|
|
CURRENT ASSETS:
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
105,343
|
|
|
$
|
94,735
|
|
|
$
|
90,092
|
|
Short-term marketable securities
|
|
|
96,891
|
|
|
|
90,419
|
|
|
|
83,769
|
|
Accounts receivable
|
|
|
14,010
|
|
|
|
11,294
|
|
|
|
7,818
|
|
Inventories
|
|
|
46,749
|
|
|
|
45,665
|
|
|
|
51,934
|
|
Prepaid expenses and other current assets
|
|
|
6,478
|
|
|
|
7,295
|
|
|
|
6,790
|
|
Total current assets
|
|
|
269,471
|
|
|
|
249,408
|
|
|
|
240,403
|
|
|
|
|
|
|
|
|
PROPERTY AND EQUIPMENT, net
|
|
|
95,746
|
|
|
|
97,723
|
|
|
|
99,381
|
|
INTANGIBLE ASSETS, net
|
|
|
34,726
|
|
|
|
36,373
|
|
|
|
38,165
|
|
GOODWILL
|
|
|
91,849
|
|
|
|
91,849
|
|
|
|
91,849
|
|
DEFERRED TAX ASSETS
|
|
|
11,342
|
|
|
|
11,779
|
|
|
|
11,843
|
|
OTHER ASSETS
|
|
|
6,372
|
|
|
|
5,664
|
|
|
|
5,896
|
|
Total assets
|
|
$
|
509,506
|
|
|
$
|
492,796
|
|
|
$
|
487,537
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
CURRENT LIABILITIES:
|
|
|
|
|
|
|
Accounts payable
|
|
$
|
24,367
|
|
|
$
|
19,862
|
|
|
$
|
21,660
|
|
Accrued payroll and related expenses
|
|
|
10,463
|
|
|
|
7,986
|
|
|
|
9,327
|
|
Taxes payable
|
|
|
247
|
|
|
|
3,326
|
|
|
|
3,620
|
|
Deferred income on sales to distributors
|
|
|
16,888
|
|
|
|
17,102
|
|
|
|
15,101
|
|
Other accrued liabilities
|
|
|
2,548
|
|
|
|
2,217
|
|
|
|
2,285
|
|
Total current liabilities
|
|
|
54,513
|
|
|
|
50,493
|
|
|
|
51,993
|
|
|
|
|
|
|
|
|
LONG-TERM LIABILITIES:
|
|
|
|
|
|
|
Income taxes payable
|
|
|
2,666
|
|
|
|
2,695
|
|
|
|
2,511
|
|
Deferred tax liabilities
|
|
|
1,004
|
|
|
|
1,141
|
|
|
|
1,291
|
|
Other liabilities
|
|
|
3,315
|
|
|
|
3,246
|
|
|
|
3,123
|
|
Total liabilities
|
|
|
61,498
|
|
|
|
57,575
|
|
|
|
58,918
|
|
|
|
|
|
|
|
|
STOCKHOLDERS' EQUITY:
|
|
|
|
|
|
|
Common stock
|
|
|
28
|
|
|
|
28
|
|
|
|
28
|
|
Additional paid-in capital
|
|
|
151,806
|
|
|
|
146,655
|
|
|
|
145,366
|
|
Accumulated other comprehensive loss
|
|
|
(1,527
|
)
|
|
|
(1,652
|
)
|
|
|
(1,851
|
)
|
Retained earnings
|
|
|
297,701
|
|
|
|
290,190
|
|
|
|
285,076
|
|
Total stockholders' equity
|
|
|
448,008
|
|
|
|
435,221
|
|
|
|
428,619
|
|
Total liabilities and stockholders' equity
|
|
$
|
509,506
|
|
|
$
|
492,796
|
|
|
$
|
487,537
|
|
|
|
|
|
|
|
|
|
POWER INTEGRATIONS, INC.
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
June 30, 2016
|
|
March 31, 2016
|
|
June 30, 2015
|
|
June 30, 2016
|
|
June 30, 2015
|
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
11,265
|
|
|
$
|
8,843
|
|
|
$
|
8,590
|
|
|
$
|
20,108
|
|
|
$
|
14,933
|
|
Adjustments to reconcile net income to cash provided by operating
activities
|
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
|
4,206
|
|
|
|
4,315
|
|
|
|
4,035
|
|
|
|
8,521
|
|
|
|
8,067
|
|
Amortization of intangible assets
|
|
|
1,647
|
|
|
|
1,792
|
|
|
|
1,729
|
|
|
|
3,439
|
|
|
|
3,515
|
|
Loss on disposal of property and equipment
|
|
|
70
|
|
|
|
78
|
|
|
|
-
|
|
|
|
148
|
|
|
|
-
|
|
Stock-based compensation expense
|
|
|
5,012
|
|
|
|
4,416
|
|
|
|
3,750
|
|
|
|
9,428
|
|
|
|
8,141
|
|
Amortization of premium on marketable securities
|
|
|
169
|
|
|
|
260
|
|
|
|
265
|
|
|
|
429
|
|
|
|
551
|
|
Deferred income taxes
|
|
|
300
|
|
|
|
(86
|
)
|
|
|
9
|
|
|
|
214
|
|
|
|
86
|
|
Increase (decrease) in accounts receivable allowances
|
|
|
104
|
|
|
|
89
|
|
|
|
(80
|
)
|
|
|
193
|
|
|
|
(85
|
)
|
Tax shortfall associated with employee stock plans
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(189
|
)
|
Change in operating assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
(2,820
|
)
|
|
|
(3,565
|
)
|
|
|
(500
|
)
|
|
|
(6,385
|
)
|
|
|
(1,050
|
)
|
Inventories
|
|
|
(1,084
|
)
|
|
|
6,269
|
|
|
|
779
|
|
|
|
5,185
|
|
|
|
1,203
|
|
Prepaid expenses and other assets
|
|
|
229
|
|
|
|
(868
|
)
|
|
|
2,077
|
|
|
|
(639
|
)
|
|
|
1,850
|
|
Accounts payable
|
|
|
4,879
|
|
|
|
(1,840
|
)
|
|
|
5,954
|
|
|
|
3,039
|
|
|
|
6,303
|
|
Taxes payable and other accrued liabilities
|
|
|
(153
|
)
|
|
|
(1,413
|
)
|
|
|
(751
|
)
|
|
|
(1,566
|
)
|
|
|
(1,827
|
)
|
Deferred income on sales to distributors
|
|
|
(214
|
)
|
|
|
2,001
|
|
|
|
(796
|
)
|
|
|
1,787
|
|
|
|
1,235
|
|
Net cash provided by operating activities
|
|
|
23,610
|
|
|
|
20,291
|
|
|
|
25,061
|
|
|
|
43,901
|
|
|
|
42,733
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
Purchases of property and equipment
|
|
|
(2,795
|
)
|
|
|
(2,095
|
)
|
|
|
(1,822
|
)
|
|
|
(4,890
|
)
|
|
|
(5,144
|
)
|
Payment for acquisition, net of cash acquired
|
|
|
-
|
|
|
|
-
|
|
|
|
(184
|
)
|
|
|
-
|
|
|
|
(15,549
|
)
|
Purchases of marketable securities
|
|
|
(20,984
|
)
|
|
|
(45,227
|
)
|
|
|
(9,993
|
)
|
|
|
(66,211
|
)
|
|
|
(9,993
|
)
|
Proceeds from sales and maturities of marketable securities
|
|
|
14,390
|
|
|
|
38,531
|
|
|
|
2,250
|
|
|
|
52,921
|
|
|
|
29,035
|
|
Net cash used in investing activities
|
|
|
(9,389
|
)
|
|
|
(8,791
|
)
|
|
|
(9,749
|
)
|
|
|
(18,180
|
)
|
|
|
(1,651
|
)
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
Net proceeds from issuance of common stock
|
|
|
491
|
|
|
|
2,957
|
|
|
|
856
|
|
|
|
3,448
|
|
|
|
4,375
|
|
Repurchase of common stock
|
|
|
(350
|
)
|
|
|
(6,085
|
)
|
|
|
(22,335
|
)
|
|
|
(6,435
|
)
|
|
|
(23,176
|
)
|
Payments of dividends to stockholders
|
|
|
(3,754
|
)
|
|
|
(3,729
|
)
|
|
|
(3,529
|
)
|
|
|
(7,483
|
)
|
|
|
(7,048
|
)
|
Net cash used in financing activities
|
|
|
(3,613
|
)
|
|
|
(6,857
|
)
|
|
|
(25,008
|
)
|
|
|
(10,470
|
)
|
|
|
(25,849
|
)
|
|
|
|
|
|
|
|
|
|
|
|
NET INCREASE IN CASH AND CASH EQUIVALENTS
|
|
|
10,608
|
|
|
|
4,643
|
|
|
|
(9,696
|
)
|
|
|
15,251
|
|
|
|
15,233
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
|
|
|
94,735
|
|
|
|
90,092
|
|
|
|
85,637
|
|
|
|
90,092
|
|
|
|
60,708
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH AND CASH EQUIVALENTS AT END OF PERIOD
|
|
$
|
105,343
|
|
|
$
|
94,735
|
|
|
$
|
75,941
|
|
|
$
|
105,343
|
|
|
$
|
75,941
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20160728006480/en/
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