[July 26, 2018] |
|
Power Integrations Reports Second-Quarter Financial Results
Power Integrations (Nasdaq: POWI)
today announced financial results for the quarter ended June 30, 2018.
Net revenues for the second quarter were $109.5 million, an increase of
six percent from the prior quarter and an increase of two percent from
the second quarter of 2017. Net income for the quarter was $15.4 million
or $0.51 per diluted share, compared to net income of $0.46 per diluted
share in the prior quarter and $0.46 per diluted share in the second
quarter of 2017. Cash flow from operations was $26.7 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 acquisition-related intangible assets and the tax
effects of these items. Non-GAAP net income for the second quarter of
2018 was $22.2 million or $0.74 per diluted share, compared with $0.67
per diluted share in the prior quarter and $0.69 per diluted share in
the second quarter of 2017.
Commented Balu Balakrishnan, president and CEO of Power Integrations:
"Revenues and earnings increased significantly compared to the prior
quarter, and we generated strong cash flow while returning nearly $35
million to stockholders. While some customers have begun to express
caution in light of global trade issues, we expect third-quarter
sequential revenue growth consistent with recent seasonality. Meanwhile,
InnoSwitch™-3 products are winning designs across a broad range of
applications, and the next phase of growth in rapid-charging
applications is taking shape as USB PD technology approaches mass
adoption.
"We also achieved an important operational milestone in the second
quarter with the announcement of AEC-Q100 automotive certification for
our SCALE-iDriver® gate-driver products. Electric-vehicle
makers want safe, reliable power-conversion products for drivetrain,
charging and other high-voltage applications in the car, and we are
encouraged by the response of automotive customers."
Additional Highlights
-
Power Integrations repurchased approximately 434,000 shares of its
common stock during the second quarter, utilizing $30.1 million. The
company had $11.0 million remaining on its repurchase authorization at
quarter-end.
-
The company paid a dividend of $0.16 per share on June 29, 2018. A
dividend of $0.16 per share is scheduled to be paid on September 28,
2018, to stockholders of record as of August 31, 2018.
-
Power Integrations was issued nine U.S. patents during the second
quarter of 2018.
Financial Outlook
The company issued the following forecast for the third quarter of 2018:
-
Revenues are expected to be $114 million plus or minus $3 million.
-
Gross margins are expected to be similar to second-quarter levels.
-
GAAP operating expenses are expected to be between $41.5 million and
$42.5 million; non-GAAP operating expenses are expected to be between
$35 million and $36 million. (Non-GAAP expenses are expected to
exclude approximately $6 million of stock-based compensation 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 1-647-689-4187. 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 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 14, 2018.
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, 2018
|
|
March 31, 2018
|
|
June 30, 2017
|
|
|
June 30, 2018
|
|
June 30, 2017
|
NET REVENUES
|
|
|
$
|
109,482
|
|
|
$
|
103,081
|
|
|
$
|
107,563
|
|
|
|
$
|
212,563
|
|
|
$
|
212,251
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COST OF REVENUES
|
|
|
|
53,248
|
|
|
|
49,537
|
|
|
|
54,116
|
|
|
|
|
102,785
|
|
|
|
108,328
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GROSS PROFIT
|
|
|
|
56,234
|
|
|
|
53,544
|
|
|
|
53,447
|
|
|
|
|
109,778
|
|
|
|
103,923
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
|
|
17,898
|
|
|
|
17,481
|
|
|
|
17,341
|
|
|
|
|
35,379
|
|
|
|
33,981
|
|
Sales and marketing
|
|
|
|
13,022
|
|
|
|
12,574
|
|
|
|
12,607
|
|
|
|
|
25,596
|
|
|
|
24,240
|
|
General and administrative
|
|
|
|
9,220
|
|
|
|
9,014
|
|
|
|
8,765
|
|
|
|
|
18,234
|
|
|
|
17,469
|
|
Amortization of acquisition-related intangible assets
|
|
|
|
475
|
|
|
|
514
|
|
|
|
537
|
|
|
|
|
989
|
|
|
|
1,120
|
|
Total operating expenses
|
|
|
|
40,615
|
|
|
|
39,583
|
|
|
|
39,250
|
|
|
|
|
80,198
|
|
|
|
76,810
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME FROM OPERATIONS
|
|
|
|
15,619
|
|
|
|
13,961
|
|
|
|
14,197
|
|
|
|
|
29,580
|
|
|
|
27,113
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income, net
|
|
|
|
885
|
|
|
|
836
|
|
|
|
465
|
|
|
|
|
1,721
|
|
|
|
971
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME BEFORE INCOME TAXES
|
|
|
|
16,504
|
|
|
|
14,797
|
|
|
|
14,662
|
|
|
|
|
31,301
|
|
|
|
28,084
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PROVISION FOR INCOME TAXES
|
|
|
|
1,123
|
|
|
|
597
|
|
|
|
760
|
|
|
|
|
1,720
|
|
|
|
83
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME
|
|
|
$
|
15,381
|
|
|
$
|
14,200
|
|
|
$
|
13,902
|
|
|
|
$
|
29,581
|
|
|
$
|
28,001
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER SHARE:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
|
0.52
|
|
|
$
|
0.48
|
|
|
$
|
0.47
|
|
|
|
$
|
1.00
|
|
|
$
|
0.95
|
|
Diluted
|
|
|
$
|
0.51
|
|
|
$
|
0.46
|
|
|
$
|
0.46
|
|
|
|
$
|
0.97
|
|
|
$
|
0.92
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SHARES USED IN PER-SHARE CALCULATION:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
29,505
|
|
|
|
29,799
|
|
|
|
29,720
|
|
|
|
|
29,651
|
|
|
|
29,589
|
|
Diluted
|
|
|
|
30,183
|
|
|
|
30,552
|
|
|
|
30,454
|
|
|
|
|
30,387
|
|
|
|
30,370
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL INFORMATION:
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation expenses included in:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues
|
|
|
$
|
292
|
|
|
$
|
249
|
|
|
$
|
351
|
|
|
|
$
|
541
|
|
|
$
|
494
|
|
Research and development
|
|
|
|
2,271
|
|
|
|
1,839
|
|
|
|
2,351
|
|
|
|
|
4,110
|
|
|
|
3,985
|
|
Sales and marketing
|
|
|
|
1,126
|
|
|
|
1,276
|
|
|
|
1,189
|
|
|
|
|
2,402
|
|
|
|
2,286
|
|
General and administrative
|
|
|
|
2,426
|
|
|
|
2,261
|
|
|
|
2,436
|
|
|
|
|
4,687
|
|
|
|
4,531
|
|
Total stock-based compensation expense
|
|
|
$
|
6,115
|
|
|
$
|
5,625
|
|
|
$
|
6,327
|
|
|
|
$
|
11,740
|
|
|
$
|
11,296
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues includes:
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of acquisition-related intangible assets
|
|
|
$
|
813
|
|
|
$
|
813
|
|
|
$
|
939
|
|
|
|
$
|
1,626
|
|
|
$
|
1,878
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General & administrative expenses include:
|
|
|
|
|
|
|
|
|
|
|
|
|
Patent-litigation expenses
|
|
|
$
|
2,019
|
|
|
$
|
1,897
|
|
|
$
|
1,779
|
|
|
|
$
|
3,916
|
|
|
$
|
3,623
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income, net includes:
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of in-place lease intangible assets
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
90
|
|
|
|
$
|
-
|
|
|
$
|
180
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REVENUE MIX BY END MARKET
|
|
|
|
|
|
|
|
|
|
|
|
|
Communications
|
|
|
|
20
|
%
|
|
|
19
|
%
|
|
|
22
|
%
|
|
|
|
20
|
%
|
|
|
25
|
%
|
Computer
|
|
|
|
5
|
%
|
|
|
5
|
%
|
|
|
4
|
%
|
|
|
|
5
|
%
|
|
|
4
|
%
|
Consumer
|
|
|
|
40
|
%
|
|
|
40
|
%
|
|
|
41
|
%
|
|
|
|
40
|
%
|
|
|
39
|
%
|
Industrial
|
|
|
|
35
|
%
|
|
|
36
|
%
|
|
|
33
|
%
|
|
|
|
35
|
%
|
|
|
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, 2018
|
|
March 31, 2018
|
|
June 30, 2017
|
|
|
June 30, 2018
|
|
June 30, 2017
|
RECONCILIATION OF GROSS PROFIT
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP gross profit
|
|
|
$
|
56,234
|
|
|
$
|
53,544
|
|
|
$
|
53,447
|
|
|
|
$
|
109,778
|
|
|
$
|
103,923
|
|
GAAP gross margin
|
|
|
|
51.4
|
%
|
|
|
51.9
|
%
|
|
|
49.7
|
%
|
|
|
|
51.6
|
%
|
|
|
49.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation included in cost of revenues
|
|
|
|
292
|
|
|
|
249
|
|
|
|
351
|
|
|
|
|
541
|
|
|
|
494
|
|
Amortization of acquisition-related intangible assets
|
|
|
|
813
|
|
|
|
813
|
|
|
|
939
|
|
|
|
|
1,626
|
|
|
|
1,878
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP gross profit
|
|
|
$
|
57,339
|
|
|
$
|
54,606
|
|
|
$
|
54,737
|
|
|
|
$
|
111,945
|
|
|
$
|
106,295
|
|
Non-GAAP gross margin
|
|
|
|
52.4
|
%
|
|
|
53.0
|
%
|
|
|
50.9
|
%
|
|
|
|
52.7
|
%
|
|
|
50.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF OPERATING EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating expenses
|
|
|
$
|
40,615
|
|
|
$
|
39,583
|
|
|
$
|
39,250
|
|
|
|
$
|
80,198
|
|
|
$
|
76,810
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less:Stock-based compensation expense included in operating expenses
|
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
|
|
2,271
|
|
|
|
1,839
|
|
|
|
2,351
|
|
|
|
|
4,110
|
|
|
|
3,985
|
|
Sales and marketing
|
|
|
|
1,126
|
|
|
|
1,276
|
|
|
|
1,189
|
|
|
|
|
2,402
|
|
|
|
2,286
|
|
General and administrative
|
|
|
|
2,426
|
|
|
|
2,261
|
|
|
|
2,436
|
|
|
|
|
4,687
|
|
|
|
4,531
|
|
Total
|
|
|
|
5,823
|
|
|
|
5,376
|
|
|
|
5,976
|
|
|
|
|
11,199
|
|
|
|
10,802
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of acquisition-related intangible assets
|
|
|
|
475
|
|
|
|
514
|
|
|
|
537
|
|
|
|
|
989
|
|
|
|
1,120
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP operating expenses
|
|
|
$
|
34,317
|
|
|
$
|
33,693
|
|
|
$
|
32,737
|
|
|
|
$
|
68,010
|
|
|
$
|
64,888
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF INCOME FROM OPERATIONS
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP income from operations
|
|
|
$
|
15,619
|
|
|
$
|
13,961
|
|
|
$
|
14,197
|
|
|
|
$
|
29,580
|
|
|
$
|
27,113
|
|
GAAP operating margin
|
|
|
|
14.3
|
%
|
|
|
13.5
|
%
|
|
|
13.2
|
%
|
|
|
|
13.9
|
%
|
|
|
12.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add: Total stock-based compensation
|
|
|
|
6,115
|
|
|
|
5,625
|
|
|
|
6,327
|
|
|
|
|
11,740
|
|
|
|
11,296
|
|
Amortization of acquisition-related intangible assets
|
|
|
|
1,288
|
|
|
|
1,327
|
|
|
|
1,476
|
|
|
|
|
2,615
|
|
|
|
2,998
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP income from operations
|
|
|
$
|
23,022
|
|
|
$
|
20,913
|
|
|
$
|
22,000
|
|
|
|
$
|
43,935
|
|
|
$
|
41,407
|
|
Non-GAAP operating margin
|
|
|
|
21.0
|
%
|
|
|
20.3
|
%
|
|
|
20.5
|
%
|
|
|
|
20.7
|
%
|
|
|
19.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF PROVISION (BENEFIT) FOR INCOME TAXES
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP provision for income taxes
|
|
|
$
|
1,123
|
|
|
$
|
597
|
|
|
$
|
760
|
|
|
|
$
|
1,720
|
|
|
$
|
83
|
|
GAAP effective tax rate
|
|
|
|
6.8
|
%
|
|
|
4.0
|
%
|
|
|
5.2
|
%
|
|
|
|
5.5
|
%
|
|
|
0.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax effect of adjustments to GAAP results
|
|
|
|
(559
|
)
|
|
|
(789
|
)
|
|
|
(736
|
)
|
|
|
|
(1,348
|
)
|
|
|
(2,269
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP provision for income taxes
|
|
|
$
|
1,682
|
|
|
$
|
1,386
|
|
|
$
|
1,496
|
|
|
|
$
|
3,068
|
|
|
$
|
2,352
|
|
Non-GAAP effective tax rate
|
|
|
|
7.0
|
%
|
|
|
6.4
|
%
|
|
|
6.6
|
%
|
|
|
|
6.7
|
%
|
|
|
5.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF NET INCOME (LOSS) PER SHARE (DILUTED)
|
|
|
|
|
|
|
|
|
|
|
GAAP net income
|
|
|
$
|
15,381
|
|
|
$
|
14,200
|
|
|
$
|
13,902
|
|
|
|
$
|
29,581
|
|
|
$
|
28,001
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments to GAAP net income
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation
|
|
|
|
6,115
|
|
|
|
5,625
|
|
|
|
6,327
|
|
|
|
|
11,740
|
|
|
|
11,296
|
|
Amortization of acquisition-related intangible assets
|
|
|
|
1,288
|
|
|
|
1,327
|
|
|
|
1,476
|
|
|
|
|
2,615
|
|
|
|
2,998
|
|
Amortization of in-place lease intangible assets
|
|
|
|
-
|
|
|
|
-
|
|
|
|
90
|
|
|
|
|
-
|
|
|
|
180
|
|
Tax effect of items excluded from non-GAAP results
|
|
|
|
(559
|
)
|
|
|
(789
|
)
|
|
|
(736
|
)
|
|
|
|
(1,348
|
)
|
|
|
(2,269
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income
|
|
|
$
|
22,225
|
|
|
$
|
20,363
|
|
|
$
|
21,059
|
|
|
|
$
|
42,588
|
|
|
$
|
40,206
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average shares outstanding for calculation of non-GAAP income per
share (diluted)
|
|
|
|
30,183
|
|
|
|
30,552
|
|
|
|
30,454
|
|
|
|
|
30,387
|
|
|
|
30,370
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income per share (diluted)
|
|
|
$
|
0.74
|
|
|
$
|
0.67
|
|
|
$
|
0.69
|
|
|
|
$
|
1.40
|
|
|
$
|
1.32
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP income per share
|
|
|
$
|
0.51
|
|
|
$
|
0.46
|
|
|
$
|
0.46
|
|
|
|
$
|
0.97
|
|
|
$
|
0.92
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
POWER INTEGRATIONS, INC. CONSOLIDATED BALANCE SHEETS (in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2018
|
|
March 31, 2018
|
|
December 31, 2017
|
ASSETS
|
|
|
|
|
|
|
|
CURRENT ASSETS:
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
148,187
|
|
|
$
|
121,327
|
|
|
$
|
93,655
|
|
Short-term marketable securities
|
|
|
|
98,494
|
|
|
|
136,370
|
|
|
|
189,236
|
|
Accounts receivable, net
|
|
|
|
6,843
|
|
|
|
17,727
|
|
|
|
16,798
|
|
Inventories
|
|
|
|
68,824
|
|
|
|
63,208
|
|
|
|
57,087
|
|
Prepaid expenses and other current assets
|
|
|
|
10,619
|
|
|
|
11,003
|
|
|
|
7,758
|
|
Total current assets
|
|
|
|
332,967
|
|
|
|
349,635
|
|
|
|
364,534
|
|
|
|
|
|
|
|
|
|
PROPERTY AND EQUIPMENT, net
|
|
|
|
111,063
|
|
|
|
109,871
|
|
|
|
111,705
|
|
INTANGIBLE ASSETS, net
|
|
|
|
23,751
|
|
|
|
25,071
|
|
|
|
25,419
|
|
GOODWILL
|
|
|
|
91,849
|
|
|
|
91,849
|
|
|
|
91,849
|
|
DEFERRED TAX ASSETS
|
|
|
|
3,181
|
|
|
|
2,506
|
|
|
|
2,364
|
|
OTHER ASSETS
|
|
|
|
25,216
|
|
|
|
25,502
|
|
|
|
25,203
|
|
Total assets
|
|
|
$
|
588,027
|
|
|
$
|
604,434
|
|
|
$
|
621,074
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
CURRENT LIABILITIES:
|
|
|
|
|
|
|
|
Accounts payable
|
|
|
$
|
26,518
|
|
|
$
|
30,991
|
|
|
$
|
33,211
|
|
Accrued payroll and related expenses
|
|
|
|
12,053
|
|
|
|
10,564
|
|
|
|
12,064
|
|
Taxes payable
|
|
|
|
1,254
|
|
|
|
2,183
|
|
|
|
1,767
|
|
Other accrued liabilities
|
|
|
|
4,588
|
|
|
|
4,427
|
|
|
|
4,009
|
|
Total current liabilities
|
|
|
|
44,413
|
|
|
|
48,165
|
|
|
|
51,051
|
|
|
|
|
|
|
|
|
|
LONG-TERM LIABILITIES:
|
|
|
|
|
|
|
|
Income taxes payable
|
|
|
|
17,635
|
|
|
|
18,138
|
|
|
|
18,259
|
|
Deferred tax liabilities
|
|
|
|
55
|
|
|
|
140
|
|
|
|
138
|
|
Other liabilities
|
|
|
|
4,095
|
|
|
|
4,159
|
|
|
|
3,944
|
|
Total liabilities
|
|
|
|
66,198
|
|
|
|
70,602
|
|
|
|
73,392
|
|
|
|
|
|
|
|
|
|
STOCKHOLDERS' EQUITY:
|
|
|
|
|
|
|
|
Common stock
|
|
|
|
28
|
|
|
|
29
|
|
|
|
29
|
|
Additional paid-in capital
|
|
|
|
152,380
|
|
|
|
175,352
|
|
|
|
198,384
|
|
Accumulated other comprehensive loss
|
|
|
|
(2,088
|
)
|
|
|
(2,382
|
)
|
|
|
(2,139
|
)
|
Retained earnings
|
|
|
|
371,509
|
|
|
|
360,833
|
|
|
|
351,408
|
|
Total stockholders' equity
|
|
|
|
521,829
|
|
|
|
533,832
|
|
|
|
547,682
|
|
Total liabilities and stockholders' equity
|
|
|
$
|
588,027
|
|
|
$
|
604,434
|
|
|
$
|
621,074
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
POWER INTEGRATIONS, INC. CONSOLIDATED STATEMENTS OF
CASH FLOWS (in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
|
|
June 30, 2018
|
|
March 31, 2018
|
|
June 30, 2017
|
|
|
June 30, 2018
|
|
June 30, 2017
|
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
$
|
15,381
|
|
|
$
|
14,200
|
|
|
$
|
13,902
|
|
|
|
$
|
29,581
|
|
|
$
|
28,001
|
|
Adjustments to reconcile net income to cash provided by operating
activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
|
|
4,760
|
|
|
|
4,931
|
|
|
|
4,357
|
|
|
|
|
9,691
|
|
|
|
8,469
|
|
Amortization of intangible assets
|
|
|
|
1,320
|
|
|
|
1,348
|
|
|
|
1,566
|
|
|
|
|
2,668
|
|
|
|
3,178
|
|
Loss on disposal of property and equipment
|
|
|
|
22
|
|
|
|
38
|
|
|
|
-
|
|
|
|
|
60
|
|
|
|
38
|
|
Stock-based compensation expense
|
|
|
|
6,115
|
|
|
|
5,625
|
|
|
|
6,327
|
|
|
|
|
11,740
|
|
|
|
11,296
|
|
Amortization of premium on marketable securities
|
|
|
|
114
|
|
|
|
262
|
|
|
|
257
|
|
|
|
|
376
|
|
|
|
508
|
|
Deferred income taxes
|
|
|
|
(760
|
)
|
|
|
(140
|
)
|
|
|
457
|
|
|
|
|
(900
|
)
|
|
|
(648
|
)
|
Increase in accounts receivable allowances
|
|
|
|
12
|
|
|
|
5
|
|
|
|
80
|
|
|
|
|
17
|
|
|
|
80
|
|
Change in operating assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
|
10,872
|
|
|
|
(934
|
)
|
|
|
(3,731
|
)
|
|
|
|
9,938
|
|
|
|
(12,249
|
)
|
Inventories
|
|
|
|
(5,616
|
)
|
|
|
(6,121
|
)
|
|
|
(1,283
|
)
|
|
|
|
(11,737
|
)
|
|
|
132
|
|
Prepaid expenses and other assets
|
|
|
|
1,753
|
|
|
|
(3,141
|
)
|
|
|
(115
|
)
|
|
|
|
(1,388
|
)
|
|
|
(8,349
|
)
|
Accounts payable
|
|
|
|
(7,509
|
)
|
|
|
233
|
|
|
|
(1,252
|
)
|
|
|
|
(7,276
|
)
|
|
|
(3,629
|
)
|
Taxes payable and other accrued liabilities
|
|
|
|
233
|
|
|
|
(577
|
)
|
|
|
3,523
|
|
|
|
|
(344
|
)
|
|
|
3,208
|
|
Net cash provided by operating activities
|
|
|
|
26,697
|
|
|
|
15,729
|
|
|
|
24,088
|
|
|
|
|
42,426
|
|
|
|
30,035
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchases of property and equipment
|
|
|
|
(4,022
|
)
|
|
|
(6,491
|
)
|
|
|
(16,473
|
)
|
|
|
|
(10,513
|
)
|
|
|
(22,876
|
)
|
Acquisition of technology licenses
|
|
|
|
-
|
|
|
|
(500
|
)
|
|
|
-
|
|
|
|
|
(500
|
)
|
|
|
-
|
|
Purchases of marketable securities
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(49,636
|
)
|
|
|
|
-
|
|
|
|
(111,574
|
)
|
Proceeds from sales and maturities of marketable securities
|
|
|
|
37,987
|
|
|
|
52,366
|
|
|
|
31,800
|
|
|
|
|
90,353
|
|
|
|
78,140
|
|
Net cash provided by (used in) investing activities
|
|
|
|
33,965
|
|
|
|
45,375
|
|
|
|
(34,309
|
)
|
|
|
|
79,340
|
|
|
|
(56,310
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
Net proceeds from issuance of common stock
|
|
|
|
978
|
|
|
|
4,657
|
|
|
|
697
|
|
|
|
|
5,635
|
|
|
|
5,089
|
|
Repurchase of common stock
|
|
|
|
(30,075
|
)
|
|
|
(33,314
|
)
|
|
|
-
|
|
|
|
|
(63,389
|
)
|
|
|
-
|
|
Payments of dividends to stockholders
|
|
|
|
(4,705
|
)
|
|
|
(4,775
|
)
|
|
|
(4,162
|
)
|
|
|
|
(9,480
|
)
|
|
|
(8,299
|
)
|
Proceeds from draw on line of credit
|
|
|
|
-
|
|
|
|
8,000
|
|
|
|
-
|
|
|
|
|
8,000
|
|
|
|
-
|
|
Payments on line of credit
|
|
|
|
-
|
|
|
|
(8,000
|
)
|
|
|
-
|
|
|
|
|
(8,000
|
)
|
|
|
-
|
|
Net cash used in financing activities
|
|
|
|
(33,802
|
)
|
|
|
(33,432
|
)
|
|
|
(3,465
|
)
|
|
|
|
(67,234
|
)
|
|
|
(3,210
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
|
|
|
|
26,860
|
|
|
|
27,672
|
|
|
|
(13,686
|
)
|
|
|
|
54,532
|
|
|
|
(29,485
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
|
|
|
|
121,327
|
|
|
|
93,655
|
|
|
|
46,335
|
|
|
|
|
93,655
|
|
|
|
62,134
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH AND CASH EQUIVALENTS AT END OF PERIOD
|
|
|
$
|
148,187
|
|
|
$
|
121,327
|
|
|
$
|
32,649
|
|
|
|
$
|
148,187
|
|
|
$
|
32,649
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20180726005925/en/
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