[July 27, 2017] |
|
Power Integrations Reports Second-Quarter Financial Results
Power Integrations (Nasdaq: POWI)
today announced financial results for the quarter ended June 30, 2017.
Results are calculated using the "sell-in" method of revenue recognition
on sales to distributors, reflecting the company's adoption of ASC 606
effective January 1, 2017. Prior-year results have been recast as if ASC
606 had been in effect for those periods.
Net revenues for the second quarter were $107.6 million, an increase of
three percent from the prior quarter and ten percent from the second
quarter of 2016. Net income was $13.9 million or $0.46 per diluted
share, compared to $0.47 per diluted share in the prior quarter and
$0.39 per diluted share in the second quarter of 2016. Cash flow from
operations was $24.1 million for the quarter.
In addition to its GAAP results, the company provided certain non-GAAP
financial measures that exclude stock-based compensation expenses,
amortization of intangible assets and the tax effects of these items.
Non-GAAP net income for the second quarter was $21.1 million or $0.69
per diluted share, compared with $0.63 per diluted share in the prior
quarter and $0.61 per diluted share in the second quarter of 2016.
Commented Balu Balakrishnan, president and CEO of Power Integrations:
"Quarterly revenues grew ten percent from a year ago, and we believe we
are on track for another year of double-digit revenue growth. We are
excited about the breadth and diversity of growth opportunities across
our business, such as expanding electronic content in consumer
appliances, IoT applications, faster charging for mobile devices, LED
lighting, electric transportation, renewable energy, high-voltage DC
transmission and more. We are attacking these opportunities with our
most innovative products ever, and we have a robust pipeline of new
products that will further expand our addressable market in the years to
come."
Additional Highlights
-
Power Integrations paid a dividend of $0.14 per share on June 30,
2017. A dividend of $0.14 per share is scheduled to be paid on
September 29, 2017, to stockholders of record as of August 31, 2017.
-
Power Integrations' board of directors has expanded the company's
share-repurchase authorization by $30 million; the company now has
$53.6 million available for the repurchase of its common stock.
-
Power Integrations was issued 15 U.S. patents during the second
quarter of 2017.
Financial Outlook
The company issued the following forecast for the third quarter of 2017:
-
Revenues are expected to be $111 million plus or minus $3 million.
-
GAAP gross margin is expected to be approximately 49.3 percent;
non-GAAP gross margin is expected to be approximately 50.5 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 approximately $39.5
million; non-GAAP operating expenses are expected to be approximately
$33 million. (Non-GAAP expenses are expected to exclude approximately
$6 million of stock-based compensation expenses and $0.5 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. Pacific time. Members of the investment community can join the call
by dialing 1-647-788-4901. 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 (including in-place lease intangible assets) and the
tax effects of these items. The company uses these measures in its
financial and operational decision-making and, with respect to one
measure, in setting performance targets for compensation purposes. The
company believes that these non-GAAP measures offer important analytical
tools to help investors understand its operating results, and to
facilitate comparability with the results of companies that provide
similar measures. These non-GAAP measures have 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. Reconciliations of
non-GAAP measures to GAAP measures are attached to this press release.
Note Regarding Forward-Looking Statements
The statements in this press release regarding the company's forecast
for its third-quarter financial performance, being on track for
double-digit revenue growth for the year and expanding its addressable
market in the years to come 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's revenues to
decrease or 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 8, 2017. 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 and the Power Integrations logo are trademarks or
registered trademarks of Power Integrations, Inc.
POWER INTEGRATIONS, INC.
|
CONSOLIDATED STATEMENTS OF INCOME
|
(in thousands, except per-share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
|
|
|
June 30, 2017
|
|
March 31, 2017
|
|
June 30, 2016
|
|
June 30, 2017
|
|
June 30, 2016
|
NET REVENUES
|
|
|
$
|
107,563
|
|
|
|
$
|
104,688
|
|
|
|
$
|
97,571
|
|
|
$
|
212,251
|
|
|
$
|
185,607
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COST OF REVENUES
|
|
|
54,116
|
|
|
|
|
54,212
|
|
|
|
|
49,786
|
|
|
|
108,328
|
|
|
|
93,334
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GROSS PROFIT
|
|
|
|
53,447
|
|
|
|
|
50,476
|
|
|
|
|
47,785
|
|
|
|
103,923
|
|
|
|
92,273
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
|
17,341
|
|
|
|
|
16,640
|
|
|
|
|
15,859
|
|
|
|
33,981
|
|
|
|
30,638
|
|
Sales and marketing
|
|
|
12,607
|
|
|
|
|
11,633
|
|
|
|
|
11,407
|
|
|
|
24,240
|
|
|
|
22,147
|
|
General and administrative
|
|
|
8,765
|
|
|
|
|
8,704
|
|
|
|
|
8,133
|
|
|
|
17,469
|
|
|
|
15,983
|
|
Amortization of acquisition-related intangible assets
|
|
|
537
|
|
|
|
|
583
|
|
|
|
|
611
|
|
|
|
1,120
|
|
|
|
1,277
|
|
|
Total operating expenses
|
|
|
39,250
|
|
|
|
|
37,560
|
|
|
|
|
36,010
|
|
|
|
76,810
|
|
|
|
70,045
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME FROM OPERATIONS
|
|
|
14,197
|
|
|
|
|
12,916
|
|
|
|
|
11,775
|
|
|
|
27,113
|
|
|
|
22,228
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income, net
|
|
|
465
|
|
|
|
|
506
|
|
|
|
|
236
|
|
|
|
971
|
|
|
|
497
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME BEFORE INCOME TAXES
|
|
|
14,662
|
|
|
|
|
13,422
|
|
|
|
|
12,011
|
|
|
|
28,084
|
|
|
|
22,725
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PROVISION FOR INCOME TAXES
|
|
|
760
|
|
|
|
|
(677
|
)
|
|
|
|
604
|
|
|
|
83
|
|
|
|
939
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME
|
|
|
$
|
13,902
|
|
|
|
$
|
14,099
|
|
|
|
$
|
11,407
|
|
|
$
|
28,001
|
|
|
$
|
21,786
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER SHARE:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
$
|
0.47
|
|
|
|
$
|
0.48
|
|
|
|
$
|
0.40
|
|
|
$
|
0.95
|
|
|
$
|
0.76
|
|
|
Diluted
|
|
|
|
$
|
0.46
|
|
|
|
$
|
0.47
|
|
|
|
$
|
0.39
|
|
|
$
|
0.92
|
|
|
$
|
0.74
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SHARES USED IN PER-SHARE CALCULATION:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
29,720
|
|
|
|
|
29,456
|
|
|
|
|
28,850
|
|
|
|
29,589
|
|
|
|
28,765
|
|
|
Diluted
|
|
|
|
|
30,454
|
|
|
|
|
30,248
|
|
|
|
|
29,422
|
|
|
|
30,370
|
|
|
|
29,361
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL INFORMATION:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation expenses included in:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues
|
|
$
|
351
|
|
|
|
$
|
143
|
|
|
|
$
|
293
|
|
|
$
|
494
|
|
|
$
|
383
|
|
|
Research and development
|
|
|
2,351
|
|
|
|
|
1,634
|
|
|
|
|
1,940
|
|
|
|
3,985
|
|
|
|
3,409
|
|
|
Sales and marketing
|
|
|
1,189
|
|
|
|
|
1,097
|
|
|
|
|
899
|
|
|
|
2,286
|
|
|
|
1,926
|
|
|
General and administrative
|
|
|
2,436
|
|
|
|
|
2,095
|
|
|
|
|
1,880
|
|
|
|
4,531
|
|
|
|
3,710
|
|
|
Total stock-based compensation expense
|
|
$
|
6,327
|
|
|
|
$
|
4,969
|
|
|
|
$
|
5,012
|
|
|
$
|
11,296
|
|
|
$
|
9,428
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues includes:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of acquisition-related intangible assets
|
|
$
|
939
|
|
|
|
$
|
939
|
|
|
|
$
|
946
|
|
|
$
|
1,878
|
|
|
$
|
1,907
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General & administrative expenses include:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Patent-litigation expenses
|
|
$
|
1,779
|
|
|
|
$
|
1,844
|
|
|
|
$
|
1,658
|
|
|
$
|
3,623
|
|
|
$
|
2,817
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income, net includes:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of in-place lease intangible assets
|
|
$
|
90
|
|
|
|
$
|
90
|
|
|
|
$
|
90
|
|
|
$
|
180
|
|
|
$
|
180
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REVENUE MIX BY END MARKET
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Communications
|
|
|
22
|
%
|
|
|
|
28
|
%
|
|
|
|
26
|
%
|
|
|
25
|
%
|
|
|
25
|
%
|
|
Computer
|
|
|
|
4
|
%
|
|
|
|
4
|
%
|
|
|
|
6
|
%
|
|
|
4
|
%
|
|
|
6
|
%
|
|
Consumer
|
|
|
|
41
|
%
|
|
|
|
37
|
%
|
|
|
|
36
|
%
|
|
|
39
|
%
|
|
|
37
|
%
|
|
Industrial
|
|
|
|
33
|
%
|
|
|
|
31
|
%
|
|
|
|
32
|
%
|
|
|
32
|
%
|
|
|
32
|
%
|
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, 2017
|
|
March 31, 2017
|
|
June 30, 2016
|
|
June 30, 2017
|
|
June 30, 2016
|
RECONCILIATION OF GROSS PROFIT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP gross profit
|
|
$
|
53,447
|
|
|
|
$
|
50,476
|
|
|
|
$
|
47,785
|
|
|
|
$
|
103,923
|
|
|
$
|
92,273
|
|
|
GAAP gross margin
|
|
|
49.7
|
%
|
|
|
|
48.2
|
%
|
|
|
|
49.0
|
%
|
|
|
|
49.0
|
%
|
|
|
49.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation included in cost of revenues
|
|
|
351
|
|
|
|
|
143
|
|
|
|
|
293
|
|
|
|
|
494
|
|
|
|
383
|
|
Amortization of acquisition-related intangible assets
|
|
|
939
|
|
|
|
|
939
|
|
|
|
|
946
|
|
|
|
|
1,878
|
|
|
|
1,907
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP gross profit
|
|
$
|
54,737
|
|
|
|
$
|
51,558
|
|
|
|
$
|
49,024
|
|
|
|
$
|
106,295
|
|
|
$
|
94,563
|
|
|
Non-GAAP gross margin
|
|
|
50.9
|
%
|
|
|
|
49.2
|
%
|
|
|
|
50.2
|
%
|
|
|
|
50.1
|
%
|
|
|
50.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF OPERATING EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating expenses
|
|
$
|
39,250
|
|
|
|
$
|
37,560
|
|
|
|
$
|
36,010
|
|
|
|
$
|
76,810
|
|
|
$
|
70,045
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less:
|
Stock-based compensation expense included in operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
|
2,351
|
|
|
|
|
1,634
|
|
|
|
|
1,940
|
|
|
|
|
3,985
|
|
|
|
3,409
|
|
|
|
Sales and marketing
|
|
|
1,189
|
|
|
|
|
1,097
|
|
|
|
|
899
|
|
|
|
|
2,286
|
|
|
|
1,926
|
|
|
|
General and administrative
|
|
|
2,436
|
|
|
|
|
2,095
|
|
|
|
|
1,880
|
|
|
|
|
4,531
|
|
|
|
3,710
|
|
|
|
Total
|
|
|
|
5,976
|
|
|
|
|
4,826
|
|
|
|
|
4,719
|
|
|
|
|
10,802
|
|
|
|
9,045
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of acquisition-related intangible assets
|
|
|
537
|
|
|
|
|
583
|
|
|
|
|
611
|
|
|
|
|
1,120
|
|
|
|
1,277
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP operating expenses
|
|
$
|
32,737
|
|
|
|
$
|
32,151
|
|
|
|
$
|
30,680
|
|
|
|
$
|
64,888
|
|
|
$
|
59,723
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF INCOME FROM OPERATIONS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP income from operations
|
|
$
|
14,197
|
|
|
|
$
|
12,916
|
|
|
|
$
|
11,775
|
|
|
|
$
|
27,113
|
|
|
$
|
22,228
|
|
|
GAAP operating margin
|
|
|
13.2
|
%
|
|
|
|
12.3
|
%
|
|
|
|
12.1
|
%
|
|
|
|
12.8
|
%
|
|
|
12.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add:
|
Total stock-based compensation
|
|
|
6,327
|
|
|
|
|
4,969
|
|
|
|
|
5,012
|
|
|
|
|
11,296
|
|
|
|
9,428
|
|
|
Amortization of acquisition-related intangible assets
|
|
|
1,476
|
|
|
|
|
1,522
|
|
|
|
|
1,557
|
|
|
|
|
2,998
|
|
|
|
3,184
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP income from operations
|
|
$
|
22,000
|
|
|
|
$
|
19,407
|
|
|
|
$
|
18,344
|
|
|
|
$
|
41,407
|
|
|
$
|
34,840
|
|
|
Non-GAAP operating margin
|
|
|
20.5
|
%
|
|
|
|
18.5
|
%
|
|
|
|
18.8
|
%
|
|
|
|
19.5
|
%
|
|
|
18.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF PROVISION FOR INCOME TAXES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP provision for income taxes
|
|
$
|
760
|
|
|
|
$
|
(677
|
)
|
|
|
$
|
604
|
|
|
|
$
|
83
|
|
|
$
|
939
|
|
|
GAAP effective tax rate
|
|
|
5.2
|
%
|
|
|
|
-5.0
|
%
|
|
|
|
5.0
|
%
|
|
|
|
0.3
|
%
|
|
|
4.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax effect of adjustments to GAAP results
|
|
|
(736
|
)
|
|
|
|
(1,533
|
)
|
|
|
|
(225
|
)
|
|
|
|
(2,269
|
)
|
|
|
(526
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP provision for income taxes
|
|
$
|
1,496
|
|
|
|
$
|
856
|
|
|
|
$
|
829
|
|
|
|
$
|
2,352
|
|
|
$
|
1,465
|
|
|
Non-GAAP effective tax rate
|
|
|
6.6
|
%
|
|
|
|
4.3
|
%
|
|
|
|
4.4
|
%
|
|
|
|
5.5
|
%
|
|
|
4.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF NET INCOME PER SHARE (DILUTED)
|
|
|
|
|
|
|
|
|
|
|
GAAP net income
|
|
$
|
13,902
|
|
|
|
$
|
14,099
|
|
|
|
$
|
11,407
|
|
|
|
$
|
28,001
|
|
|
$
|
21,786
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments to GAAP net income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation
|
|
|
6,327
|
|
|
|
|
4,969
|
|
|
|
|
5,012
|
|
|
|
|
11,296
|
|
|
|
9,428
|
|
|
Amortization of acquisition-related intangible assets
|
|
|
1,476
|
|
|
|
|
1,522
|
|
|
|
|
1,557
|
|
|
|
|
2,998
|
|
|
|
3,184
|
|
|
Amortization of in-place lease intangible assets
|
|
|
90
|
|
|
|
|
90
|
|
|
|
|
90
|
|
|
|
|
180
|
|
|
|
180
|
|
|
Tax effect of items excluded from non-GAAP results
|
|
|
(736
|
)
|
|
|
|
(1,533
|
)
|
|
|
|
(225
|
)
|
|
|
|
(2,269
|
)
|
|
|
(526
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income
|
|
$
|
21,059
|
|
|
|
$
|
19,147
|
|
|
|
$
|
17,841
|
|
|
|
$
|
40,206
|
|
|
$
|
34,052
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average shares outstanding for calculation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
of non-GAAP income per share (diluted)
|
|
|
30,454
|
|
|
|
|
30,248
|
|
|
|
|
29,422
|
|
|
|
|
30,370
|
|
|
|
29,361
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income per share (diluted)
|
|
$
|
0.69
|
|
|
|
$
|
0.63
|
|
|
|
$
|
0.61
|
|
|
|
$
|
1.32
|
|
|
$
|
1.16
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP income per share
|
|
$
|
0.46
|
|
|
|
$
|
0.47
|
|
|
|
$
|
0.39
|
|
|
|
$
|
0.92
|
|
|
$
|
0.74
|
|
POWER INTEGRATIONS, INC.
|
CONSOLIDATED BALANCE SHEETS
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2017
|
|
March 31, 2017
|
|
December 31, 2016
|
ASSETS
|
|
|
|
|
|
|
|
CURRENT ASSETS:
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
32,649
|
|
|
$
|
46,335
|
|
|
$
|
62,134
|
|
|
Short-term marketable securities
|
|
|
221,346
|
|
|
|
203,753
|
|
|
|
188,323
|
|
|
Accounts receivable
|
|
|
18,697
|
|
|
|
15,046
|
|
|
|
6,528
|
|
|
Inventories
|
|
|
52,432
|
|
|
|
51,149
|
|
|
|
52,564
|
|
|
Prepaid expenses and other current assets
|
|
|
16,902
|
|
|
|
16,770
|
|
|
|
8,715
|
|
|
Total current assets
|
|
|
342,026
|
|
|
|
333,053
|
|
|
|
318,264
|
|
|
|
|
|
|
|
|
|
|
PROPERTY AND EQUIPMENT, net
|
|
|
113,202
|
|
|
|
105,893
|
|
|
|
95,296
|
|
|
INTANGIBLE ASSETS, net
|
|
|
28,324
|
|
|
|
29,890
|
|
|
|
31,502
|
|
|
GOODWILL
|
|
|
91,849
|
|
|
|
91,849
|
|
|
|
91,849
|
|
|
DEFERRED TAX ASSETS
|
|
|
19,328
|
|
|
|
19,857
|
|
|
|
11,342
|
|
|
OTHER ASSETS
|
|
|
6,809
|
|
|
|
8,118
|
|
|
|
6,157
|
|
|
Total assets
|
|
$
|
601,538
|
|
|
$
|
588,660
|
|
|
$
|
554,410
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
CURRENT LIABILITIES:
|
|
|
|
|
|
|
|
Accounts payable
|
|
$
|
30,124
|
|
|
$
|
37,478
|
|
|
$
|
29,727
|
|
|
Accrued payroll and related expenses
|
|
|
11,639
|
|
|
|
9,146
|
|
|
|
10,756
|
|
|
Taxes payable
|
|
|
1,072
|
|
|
|
877
|
|
|
|
729
|
|
|
Other accrued liabilities
|
|
|
3,858
|
|
|
|
3,409
|
|
|
|
2,734
|
|
|
Total current liabilities
|
|
|
46,693
|
|
|
|
50,910
|
|
|
|
43,946
|
|
|
|
|
|
|
|
|
|
|
LONG-TERM LIABILITIES:
|
|
|
|
|
|
|
|
Income taxes payable
|
|
|
2,805
|
|
|
|
2,804
|
|
|
|
2,639
|
|
|
Deferred tax liabilities
|
|
|
615
|
|
|
|
688
|
|
|
|
820
|
|
|
Other liabilities
|
|
|
4,422
|
|
|
|
4,115
|
|
|
|
3,921
|
|
|
Total liabilities
|
|
|
54,535
|
|
|
|
58,517
|
|
|
|
51,326
|
|
|
|
|
|
|
|
|
|
STOCKHOLDERS' EQUITY:
|
|
|
|
|
|
|
|
Common stock
|
|
|
29
|
|
|
|
29
|
|
|
|
28
|
|
|
Additional paid-in capital
|
|
|
189,259
|
|
|
|
182,235
|
|
|
|
172,875
|
|
|
Accumulated other comprehensive loss
|
|
|
(2,419
|
)
|
|
|
(2,514
|
)
|
|
|
(2,710
|
)
|
|
Retained earnings
|
|
|
360,134
|
|
|
|
350,393
|
|
|
|
332,891
|
|
|
Total stockholders' equity
|
|
|
547,003
|
|
|
|
530,143
|
|
|
|
503,084
|
|
|
Total liabilities and stockholders' equity
|
|
$
|
601,538
|
|
|
$
|
588,660
|
|
|
$
|
554,410
|
|
POWER INTEGRATIONS, INC.
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
|
June 30, 2017
|
|
March 31, 2017
|
|
June 30, 2016
|
|
June 30, 2017
|
June 30, 2016
|
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
13,902
|
|
|
$
|
14,099
|
|
|
$
|
11,407
|
|
|
$
|
28,001
|
|
$
|
21,786
|
|
|
Adjustments to reconcile net income to cash provided by operating
activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
|
4,357
|
|
|
|
4,112
|
|
|
|
4,206
|
|
|
|
8,469
|
|
|
8,521
|
|
|
Amortization of intangible assets
|
|
|
1,566
|
|
|
|
1,612
|
|
|
|
1,647
|
|
|
|
3,178
|
|
|
3,439
|
|
|
Loss on disposal of property and equipment
|
|
|
-
|
|
|
|
38
|
|
|
|
70
|
|
|
|
38
|
|
|
148
|
|
|
Stock-based compensation expense
|
|
|
6,327
|
|
|
|
4,969
|
|
|
|
5,012
|
|
|
|
11,296
|
|
|
9,428
|
|
|
Amortization of premium on marketable securities
|
|
|
257
|
|
|
|
251
|
|
|
|
169
|
|
|
|
508
|
|
|
429
|
|
|
Deferred income taxes
|
|
|
457
|
|
|
|
(1,105
|
)
|
|
|
306
|
|
|
|
(648
|
)
|
|
225
|
|
|
Increase in accounts receivable allowances
|
|
|
80
|
|
|
|
-
|
|
|
|
104
|
|
|
|
80
|
|
|
193
|
|
|
Change in operating assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
(3,731
|
)
|
|
|
(8,518
|
)
|
|
|
(3,667
|
)
|
|
|
(12,249
|
)
|
|
(6,252
|
)
|
|
Inventories
|
|
|
(1,283
|
)
|
|
|
1,415
|
|
|
|
(1,084
|
)
|
|
|
132
|
|
|
5,185
|
|
|
Prepaid expenses and other assets
|
|
|
(115
|
)
|
|
|
(8,234
|
)
|
|
|
714
|
|
|
|
(8,349
|
)
|
|
(674
|
)
|
|
Accounts payable
|
|
|
(1,252
|
)
|
|
|
(2,377
|
)
|
|
|
4,879
|
|
|
|
(3,629
|
)
|
|
3,039
|
|
|
Taxes payable and other accrued liabilities
|
|
|
3,523
|
|
|
|
(315
|
)
|
|
|
(153
|
)
|
|
|
3,208
|
|
|
(1,566
|
)
|
|
Net cash provided by operating activities
|
|
|
24,088
|
|
|
|
5,947
|
|
|
|
23,610
|
|
|
|
30,035
|
|
|
43,901
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
Purchases of property and equipment
|
|
|
(16,473
|
)
|
|
|
(6,403
|
)
|
|
|
(2,795
|
)
|
|
|
(22,876
|
)
|
|
(4,890
|
)
|
|
Purchases of marketable securities
|
|
|
(49,636
|
)
|
|
|
(61,938
|
)
|
|
|
(20,984
|
)
|
|
|
(111,574
|
)
|
|
(66,211
|
)
|
|
Proceeds from sales and maturities of marketable securities
|
|
|
31,800
|
|
|
|
46,340
|
|
|
|
14,390
|
|
|
|
78,140
|
|
|
52,921
|
|
|
Net cash used in investing activities
|
|
|
(34,309
|
)
|
|
|
(22,001
|
)
|
|
|
(9,389
|
)
|
|
|
(56,310
|
)
|
|
(18,180
|
)
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
Net proceeds from issuance of common stock
|
|
|
697
|
|
|
|
4,392
|
|
|
|
491
|
|
|
|
5,089
|
|
|
3,448
|
|
|
Repurchase of common stock
|
|
|
-
|
|
|
|
-
|
|
|
|
(350
|
)
|
|
|
-
|
|
|
(6,435
|
)
|
|
Payments of dividends to stockholders
|
|
|
(4,162
|
)
|
|
|
(4,137
|
)
|
|
|
(3,754
|
)
|
|
|
(8,299
|
)
|
|
(7,483
|
)
|
|
Net cash provided by (used in) financing activities
|
|
|
(3,465
|
)
|
|
|
255
|
|
|
|
(3,613
|
)
|
|
|
(3,210
|
)
|
|
(10,470
|
)
|
|
|
|
|
|
|
|
|
|
|
|
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
|
|
|
(13,686
|
)
|
|
|
(15,799
|
)
|
|
|
10,608
|
|
|
|
(29,485
|
)
|
|
15,251
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
|
|
|
46,335
|
|
|
|
62,134
|
|
|
|
94,735
|
|
|
|
62,134
|
|
|
90,092
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH AND CASH EQUIVALENTS AT END OF PERIOD
|
|
$
|
32,649
|
|
|
$
|
46,335
|
|
|
$
|
105,343
|
|
|
$
|
32,649
|
|
$
|
105,343
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20170727006412/en/
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