Power Integrations (Nasdaq: POWI)
today announced financial results for the quarter ended September 30,
2013. Net revenues for the quarter were $91.7 million, up four percent
from the prior quarter and 18 percent from the third quarter of 2012.
GAAP net income for the quarter was $16.7 million or $0.54 per diluted
share, compared with income of $0.45 per diluted share in the prior
quarter and a net loss of $1.54 per share in the third quarter of 2012.
GAAP gross margin for the third quarter was 53.2 percent; operating
margin was 18.1 percent.
In addition to its GAAP results, the company provided non-GAAP financial
measures that exclude stock-based compensation expenses, certain
charges, gains and expenses related to acquisitions and strategic
investments, non-cash interest income, the tax effects of these items,
and a one-time tax-related charge incurred in 2012. Non-GAAP net income
for the third quarter of 2013 was $21.8 million or $0.71 per diluted
share, compared with $0.61 per diluted share in the prior quarter and
$0.49 per diluted share in the third quarter of 2012. Non-GAAP gross
margin for the third quarter was 54.2 percent; non-GAAP operating margin
was 24.6 percent.
Commented Balu Balakrishnan, president and CEO of Power Integrations:
“Our third-quarter results featured record revenues, with sequential
growth across all four end-market categories. Compared to a year ago,
sales were up 18 percent, with all four end markets contributing
double-digit growth. We also reported record earnings and strong cash
flow in the third quarter, fueled by the continued expansion of our
gross-profit margins.
“Our fourth-quarter revenues are likely to be modestly lower compared to
the third quarter due primarily to seasonal trends. Nevertheless, we are
on pace for a double-digit revenue increase in 2013, substantially ahead
of the growth rate of the overall analog semiconductor industry. We
believe we are well positioned for further growth as we continue to
increase our penetration across the broader power supply market while
aggressively pursuing emerging opportunities in areas like LED lighting,
rapid charging and high power.”
Additional Highlights
-
Cash flow from operations in the third quarter was $29.0 million; cash
and investments increased by $35.1 million from the end of the prior
quarter to a total of $180.2 million.
-
The company paid a dividend of $0.08 per share on September 30, 2013.
The next dividend of $0.08 per share is to be paid on December 31,
2013 to stockholders of record as of November 29, 2013. The company’s
board of directors has declared an increase in the quarterly dividend
payout to $0.10 per share beginning in the first quarter of 2014.
-
Power Integrations received 24 U.S. patents and 37 non-U.S. patents
during the quarter and had a total of 586 U.S. patents and 474
non-U.S. patents as of September 30, 2013.
Financial Outlook
The company issued the following forecast for the fourth quarter of 2013:
-
Fourth-quarter revenues are expected to be between $86 million and $92
million.
-
Non-GAAP gross margin is expected to be approximately 54.5 percent.
(Excludes from cost of revenues approximately $0.6 million of
amortization of acquisition-related intangible assets and $0.3 million
of stock-based compensation.) GAAP gross margin is expected to be
approximately 53.5 percent.
-
Non-GAAP operating expenses are expected to be between $28 million and
$28.5 million. (Excludes from GAAP operating expenses approximately $4
million of stock-based compensation expenses and $1 million of
amortization expense for acquisition-related intangible assets.) GAAP
operating expenses are expected to be between $33 million and $33.5
million.
Conference Call Today at 1:45 p.m. Pacific Time
Power Integrations management will hold a conference call today at 1:45
p.m. Pacific time. Members of the investment community can join the call
by dialing 1-877-317-6789 from within the United States or
1-412-317-6789 from outside the U.S. The call will be available via a
live and archived webcast on the investor section of the company's
website, http://investors.powerint.com.
About Power Integrations
Power
Integrations, Inc., is a Silicon Valley-based supplier of
high-performance electronic components used in high-voltage
power-conversion systems. The company’s integrated circuits and diodes
enable compact, energy-efficient AC-DC power supplies for a vast range
of electronic products including mobile devices, TVs, PCs, appliances,
smart utility meters and LED lights. CONCEPT IGBT drivers enhance
the efficiency, reliability and cost of high-power applications such as
industrial motor drives, solar and wind energy systems, electric
vehicles and high-voltage DC transmission. Since its introduction in
1998, Power Integrations’ EcoSmart® energy-efficiency
technology has prevented billions of dollars’ worth of energy waste and
millions of tons of carbon emissions. Reflecting the environmental
benefits of the company’s products, Power Integrations’ stock is
included in the NASDAQ® Clean Edge® Green Energy
Index, The Cleantech Index®, and the Ardour Global IndexSM.
For more information, including design-support tools and resources,
please visit www.powerint.com;
visit Power Integrations’ Green
Room for a comprehensive guide to energy-efficiency standards around
the world.
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 Accounting Standard Codification 718-10,
acquisition-related expenses, amortization of acquisition-related
intangible assets and the fair-value write-up of acquired inventory,
certain charges and gains associated with strategic investments,
non-cash interest income, the tax effects of the above items, and a
one-time tax related charge incurred in the second quarter of 2012. The
company uses these non-GAAP measures in its own financial and
operational decision-making processes 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 non-GAAP
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 in Mr. Balakrishnan’s quote and
under the caption “Financial Outlook” relating to the company’s
projected fourth-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
forward-looking 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; unfavorable
fluctuations in component costs resulting from changes in commodity
prices and/or the exchange rate between the U.S. dollar and the Japanese
yen; and the challenges inherent in integrating and forecasting the
performance of acquired businesses. 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
Quarterly Report on Form 10-Q, filed with the Securities and Exchange
Commission (SEC) on August 1, 2013. 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, EcoSmart 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 OPERATIONS
|
(in thousands, except per-share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
|
|
September 30, 2013
|
|
June 30, 2013
|
|
September 30, 2012
|
|
September 30, 2013
|
|
September 30, 2012
|
NET REVENUES
|
|
$
|
91,715
|
|
|
$
|
87,922
|
|
|
$
|
78,045
|
|
|
$
|
256,677
|
|
|
$
|
226,200
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COST OF REVENUES
|
|
|
42,941
|
|
|
|
41,715
|
|
|
|
39,294
|
|
|
|
121,832
|
|
|
|
115,101
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GROSS PROFIT
|
|
|
48,774
|
|
|
|
46,207
|
|
|
|
38,751
|
|
|
|
134,845
|
|
|
|
111,099
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
|
12,984
|
|
|
|
13,489
|
|
|
|
11,428
|
|
|
|
38,745
|
|
|
|
34,134
|
|
Sales and marketing
|
|
|
10,091
|
|
|
|
10,242
|
|
|
|
9,206
|
|
|
|
29,992
|
|
|
|
25,736
|
|
General and administrative
|
|
|
7,984
|
|
|
|
8,066
|
|
|
|
7,912
|
|
|
|
23,784
|
|
|
|
21,203
|
|
Amortization of acquisition-related intangible assets
|
|
|
1,121
|
|
|
|
1,122
|
|
|
|
1,123
|
|
|
|
3,365
|
|
|
|
1,908
|
|
Charge related to SemiSouth
|
|
|
-
|
|
|
|
-
|
|
|
|
25,300
|
|
|
|
-
|
|
|
|
25,300
|
|
Acquisition expenses
|
|
|
-
|
|
|
|
-
|
|
|
|
29
|
|
|
|
-
|
|
|
|
931
|
|
|
|
Total operating expenses
|
|
|
32,180
|
|
|
|
32,919
|
|
|
|
54,998
|
|
|
|
95,886
|
|
|
|
109,212
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS) FROM OPERATIONS
|
|
|
16,594
|
|
|
|
13,288
|
|
|
|
(16,247
|
)
|
|
|
38,959
|
|
|
|
1,887
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash interest income
|
|
|
-
|
|
|
|
-
|
|
|
|
665
|
|
|
|
-
|
|
|
|
1,445
|
|
Cost of acquisition-related currency option
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(635
|
)
|
Gain (charge) related to SemiSouth
|
|
|
-
|
|
|
|
497
|
|
|
|
(33,937
|
)
|
|
|
497
|
|
|
|
(33,937
|
)
|
Other income (expense), net
|
|
|
82
|
|
|
|
68
|
|
|
|
172
|
|
|
|
367
|
|
|
|
837
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS) BEFORE PROVISION (BENEFIT) FOR INCOME TAXES
|
|
|
16,676
|
|
|
|
13,853
|
|
|
|
(49,347
|
)
|
|
|
39,823
|
|
|
|
(30,403
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PROVISION (BENEFIT) FOR INCOME TAXES
|
|
|
22
|
|
|
|
181
|
|
|
|
(4,941
|
)
|
|
|
(1,406
|
)
|
|
|
13,718
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME (LOSS)
|
|
$
|
16,654
|
|
|
$
|
13,672
|
|
|
$
|
(44,406
|
)
|
|
$
|
41,229
|
|
|
$
|
(44,121
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS (LOSS) PER SHARE:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.56
|
|
|
$
|
0.47
|
|
|
$
|
(1.54
|
)
|
|
$
|
1.41
|
|
|
$
|
(1.54
|
)
|
|
|
Diluted
|
|
$
|
0.54
|
|
|
$
|
0.45
|
|
|
$
|
(1.54
|
)
|
|
$
|
1.36
|
|
|
$
|
(1.54
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SHARES USED IN PER-SHARE CALCULATION:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
29,762
|
|
|
|
29,178
|
|
|
|
28,908
|
|
|
|
29,235
|
|
|
|
28,586
|
|
|
|
Diluted
|
|
|
30,652
|
|
|
|
30,158
|
|
|
|
28,908
|
|
|
|
30,237
|
|
|
|
28,586
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL INFORMATION:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation expenses included in:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues
|
|
$
|
296
|
|
|
$
|
264
|
|
|
$
|
271
|
|
|
$
|
824
|
|
|
$
|
772
|
|
|
|
Research and development
|
|
|
1,485
|
|
|
|
1,640
|
|
|
|
1,467
|
|
|
|
4,231
|
|
|
|
4,154
|
|
|
|
Sales and marketing
|
|
|
964
|
|
|
|
795
|
|
|
|
940
|
|
|
|
2,588
|
|
|
|
2,433
|
|
|
|
General and administrative
|
|
|
1,446
|
|
|
|
1,629
|
|
|
|
1,169
|
|
|
|
4,512
|
|
|
|
3,161
|
|
|
|
Total stock-based compensation expense
|
|
$
|
4,191
|
|
|
$
|
4,328
|
|
|
$
|
3,847
|
|
|
$
|
12,155
|
|
|
$
|
10,520
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues includes:
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of write-up of acquired inventory
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
1,597
|
|
|
$
|
-
|
|
|
$
|
2,813
|
|
|
|
Amortization of acquisition-related intangible assets
|
|
$
|
645
|
|
|
$
|
645
|
|
|
$
|
645
|
|
|
$
|
1,935
|
|
|
$
|
1,189
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses include:
|
|
|
|
|
|
|
|
|
|
|
|
|
Patent-litigation expenses
|
|
$
|
1,667
|
|
|
$
|
807
|
|
|
$
|
1,885
|
|
|
$
|
3,873
|
|
|
$
|
4,590
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REVENUE MIX BY END MARKET
|
|
|
|
|
|
|
|
|
|
|
|
|
Communications
|
|
|
21
|
%
|
|
|
21
|
%
|
|
|
23
|
%
|
|
|
21
|
%
|
|
|
25
|
%
|
|
|
Computer
|
|
|
10
|
%
|
|
|
10
|
%
|
|
|
10
|
%
|
|
|
10
|
%
|
|
|
11
|
%
|
|
|
Consumer
|
|
|
34
|
%
|
|
|
34
|
%
|
|
|
36
|
%
|
|
|
35
|
%
|
|
|
37
|
%
|
|
|
Industrial
|
|
|
35
|
%
|
|
|
35
|
%
|
|
|
31
|
%
|
|
|
34
|
%
|
|
|
27
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
POWER INTEGRATIONS, INC.
|
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP RESULTS
|
(in thousands, except per-share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
|
|
|
|
September 30, 2013
|
|
June 30, 2013
|
|
September 30, 2012
|
|
September 30, 2013
|
|
September 30, 2012
|
RECONCILIATION OF GROSS PROFIT
|
|
|
|
|
|
|
|
|
|
|
GAAP gross profit
|
|
$
|
48,774
|
|
|
$
|
46,207
|
|
|
$
|
38,751
|
|
|
$
|
134,845
|
|
|
$
|
111,099
|
|
|
|
GAAP gross profit margin
|
|
|
53.2
|
%
|
|
|
52.6
|
%
|
|
|
49.7
|
%
|
|
|
52.5
|
%
|
|
|
49.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation included in cost of revenues
|
|
|
296
|
|
|
|
264
|
|
|
|
271
|
|
|
|
824
|
|
|
|
772
|
|
Amortization of write-up of acquired inventory
|
|
|
-
|
|
|
|
-
|
|
|
|
1,597
|
|
|
|
-
|
|
|
|
2,813
|
|
Amortization of acquisition-related intangible assets
|
|
|
645
|
|
|
|
645
|
|
|
|
645
|
|
|
|
1,935
|
|
|
|
1,189
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP gross profit
|
|
$
|
49,715
|
|
|
$
|
47,116
|
|
|
$
|
41,264
|
|
|
$
|
137,604
|
|
|
$
|
115,873
|
|
|
|
Non-GAAP gross profit margin
|
|
|
54.2
|
%
|
|
|
53.6
|
%
|
|
|
52.9
|
%
|
|
|
53.6
|
%
|
|
|
51.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF OPERATING EXPENSES
|
|
|
|
|
|
|
|
|
|
|
GAAP operating expenses
|
|
$
|
32,180
|
|
|
$
|
32,919
|
|
|
$
|
54,998
|
|
|
$
|
95,886
|
|
|
$
|
109,212
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less:
|
|
Stock-based compensation expense included in operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
|
1,485
|
|
|
|
1,640
|
|
|
|
1,467
|
|
|
|
4,231
|
|
|
|
4,154
|
|
|
|
|
|
Sales and marketing
|
|
|
964
|
|
|
|
795
|
|
|
|
940
|
|
|
|
2,588
|
|
|
|
2,433
|
|
|
|
|
|
General and administrative
|
|
|
1,446
|
|
|
|
1,629
|
|
|
|
1,169
|
|
|
|
4,512
|
|
|
|
3,161
|
|
|
|
|
|
Total
|
|
|
3,895
|
|
|
|
4,064
|
|
|
|
3,576
|
|
|
|
11,331
|
|
|
|
9,748
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition expenses
|
|
|
-
|
|
|
|
-
|
|
|
|
29
|
|
|
|
-
|
|
|
|
931
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of acquisition-related intangible assets
|
|
|
1,121
|
|
|
|
1,122
|
|
|
|
1,123
|
|
|
|
3,365
|
|
|
|
1,908
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Charge related to SemiSouth
|
|
|
-
|
|
|
|
-
|
|
|
|
25,300
|
|
|
|
-
|
|
|
|
25,300
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP operating expenses
|
|
$
|
27,164
|
|
|
$
|
27,733
|
|
|
$
|
24,970
|
|
|
$
|
81,190
|
|
|
$
|
71,325
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF INCOME FROM OPERATIONS
|
|
|
|
|
|
|
|
|
|
|
GAAP income (loss) from operations
|
|
$
|
16,594
|
|
|
$
|
13,288
|
|
|
$
|
(16,247
|
)
|
|
$
|
38,959
|
|
|
$
|
1,887
|
|
|
|
GAAP operating margin
|
|
|
18.1
|
%
|
|
|
15.1
|
%
|
|
|
-20.8
|
%
|
|
|
15.2
|
%
|
|
|
0.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add:
|
|
Total stock-based compensation
|
|
|
4,191
|
|
|
|
4,328
|
|
|
|
3,847
|
|
|
|
12,155
|
|
|
|
10,520
|
|
|
|
Amortization of write-up of acquired inventory
|
|
|
-
|
|
|
|
-
|
|
|
|
1,597
|
|
|
|
-
|
|
|
|
2,813
|
|
|
|
Amortization of acquisition-related intangible assets
|
|
|
1,766
|
|
|
|
1,767
|
|
|
|
1,768
|
|
|
|
5,300
|
|
|
|
3,097
|
|
|
|
Charge related to SemiSouth
|
|
|
-
|
|
|
|
-
|
|
|
|
25,300
|
|
|
|
-
|
|
|
|
25,300
|
|
|
|
Acquisition expenses
|
|
|
-
|
|
|
|
-
|
|
|
|
29
|
|
|
|
-
|
|
|
|
931
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP income from operations
|
|
$
|
22,551
|
|
|
$
|
19,383
|
|
|
$
|
16,294
|
|
|
$
|
56,414
|
|
|
$
|
44,548
|
|
|
|
Non-GAAP operating margin
|
|
|
24.6
|
%
|
|
|
22.0
|
%
|
|
|
20.9
|
%
|
|
|
22.0
|
%
|
|
|
19.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF PROVISION FOR INCOME TAXES
|
|
|
|
|
|
|
|
|
|
|
GAAP provision (benefit) for income taxes
|
|
$
|
22
|
|
|
$
|
181
|
|
|
$
|
(4,941
|
)
|
|
$
|
(1,406
|
)
|
|
$
|
13,718
|
|
|
|
GAAP effective tax rate
|
|
|
0.1
|
%
|
|
|
1.3
|
%
|
|
|
10.0
|
%
|
|
|
-3.5
|
%
|
|
|
-45.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One-time charge associated with tax settlement
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
15,749
|
|
Tax effect of other adjustments to GAAP results
|
|
|
(776
|
)
|
|
|
(802
|
)
|
|
|
(6,873
|
)
|
|
|
(3,873
|
)
|
|
|
(7,582
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP provision for income taxes
|
|
$
|
798
|
|
|
$
|
983
|
|
|
$
|
1,932
|
|
|
$
|
2,467
|
|
|
$
|
5,551
|
|
|
|
Non-GAAP effective tax rate
|
|
|
3.5
|
%
|
|
|
5.1
|
%
|
|
|
11.7
|
%
|
|
|
4.3
|
%
|
|
|
12.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF NET INCOME (LOSS) PER SHARE (DILUTED)
|
|
|
|
|
|
|
|
|
|
|
GAAP net income (loss)
|
|
$
|
16,654
|
|
|
$
|
13,672
|
|
|
$
|
(44,406
|
)
|
|
$
|
41,229
|
|
|
$
|
(44,121
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments to GAAP net income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation
|
|
|
4,191
|
|
|
|
4,328
|
|
|
|
3,847
|
|
|
|
12,155
|
|
|
|
10,520
|
|
|
|
Amortization of write-up of acquired inventory
|
|
|
-
|
|
|
|
-
|
|
|
|
1,597
|
|
|
|
-
|
|
|
|
2,813
|
|
|
|
Amortization of acquisition-related intangible assets
|
|
|
1,766
|
|
|
|
1,767
|
|
|
|
1,768
|
|
|
|
5,300
|
|
|
|
3,097
|
|
|
|
Acquisition expenses
|
|
|
-
|
|
|
|
-
|
|
|
|
29
|
|
|
|
-
|
|
|
|
931
|
|
|
|
Non-cash interest income
|
|
|
-
|
|
|
|
-
|
|
|
|
(665
|
)
|
|
|
-
|
|
|
|
(1,445
|
)
|
|
|
Cost of acquisition-related currency option
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
635
|
|
|
|
One-time charge associated with tax settlement
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
15,749
|
|
|
|
Charge (gain) related to SemiSouth
|
|
|
-
|
|
|
|
(497
|
)
|
|
|
59,237
|
|
|
|
(497
|
)
|
|
|
59,237
|
|
|
|
Tax effect of items excluded from non-GAAP results
|
|
|
(776
|
)
|
|
|
(802
|
)
|
|
|
(6,873
|
)
|
|
|
(3,873
|
)
|
|
|
(7,582
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income
|
|
$
|
21,835
|
|
|
$
|
18,468
|
|
|
$
|
14,534
|
|
|
$
|
54,314
|
|
|
$
|
39,834
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average shares outstanding for calculation of non-GAAP income per
share (diluted)
|
|
|
30,652
|
|
|
|
30,158
|
|
|
|
29,809
|
|
|
|
30,237
|
|
|
|
29,740
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income per share (diluted)
|
|
$
|
0.71
|
|
|
$
|
0.61
|
|
|
$
|
0.49
|
|
|
$
|
1.80
|
|
|
$
|
1.34
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP income (loss) per share
|
|
$
|
0.54
|
|
|
$
|
0.45
|
|
|
$
|
(1.54
|
)
|
|
$
|
1.36
|
|
|
$
|
(1.54
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
POWER INTEGRATIONS, INC.
|
CONSOLIDATED BALANCE SHEETS
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2013
|
|
June 30, 2013
|
|
December 31, 2012
|
ASSETS
|
|
|
|
|
|
|
|
|
CURRENT ASSETS:
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
78,118
|
|
|
$
|
85,426
|
|
|
$
|
63,394
|
|
|
|
Short-term marketable securities
|
|
|
102,051
|
|
|
|
59,630
|
|
|
|
31,766
|
|
|
|
Accounts receivable
|
|
|
15,101
|
|
|
|
15,772
|
|
|
|
7,326
|
|
|
|
Inventories
|
|
|
40,212
|
|
|
|
43,199
|
|
|
|
44,625
|
|
|
|
Deferred tax assets
|
|
|
344
|
|
|
|
344
|
|
|
|
352
|
|
|
|
Prepaid expenses and other current assets
|
|
|
15,557
|
|
|
|
12,097
|
|
|
|
17,401
|
|
|
|
Total current assets
|
|
|
251,383
|
|
|
|
216,468
|
|
|
|
164,864
|
|
|
|
|
|
|
|
|
|
|
|
|
PROPERTY AND EQUIPMENT, net
|
|
|
90,217
|
|
|
|
89,743
|
|
|
|
89,724
|
|
|
|
INTANGIBLE ASSETS, net
|
|
|
42,212
|
|
|
|
44,054
|
|
|
|
47,738
|
|
|
|
GOODWILL
|
|
|
80,599
|
|
|
|
80,599
|
|
|
|
80,599
|
|
|
|
DEFERRED TAX ASSETS
|
|
|
15,263
|
|
|
|
14,425
|
|
|
|
11,532
|
|
|
|
OTHER ASSETS
|
|
|
3,965
|
|
|
|
4,608
|
|
|
|
4,673
|
|
|
|
Total assets
|
|
$
|
483,639
|
|
|
$
|
449,897
|
|
|
$
|
399,130
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
|
|
|
|
|
CURRENT LIABILITIES:
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
$
|
20,267
|
|
|
$
|
21,347
|
|
|
$
|
16,452
|
|
|
|
Accrued payroll and related expenses
|
|
|
8,157
|
|
|
|
7,681
|
|
|
|
6,720
|
|
|
|
Taxes payable
|
|
|
2,128
|
|
|
|
1,476
|
|
|
|
1,213
|
|
|
|
Deferred taxes
|
|
|
885
|
|
|
|
748
|
|
|
|
1,193
|
|
|
|
Deferred income on sales to distributors
|
|
|
16,861
|
|
|
|
15,035
|
|
|
|
11,550
|
|
|
|
Other accrued liabilities
|
|
|
2,661
|
|
|
|
2,650
|
|
|
|
3,439
|
|
|
|
Total current liabilities
|
|
|
50,959
|
|
|
|
48,937
|
|
|
|
40,567
|
|
|
|
|
|
|
|
|
|
|
|
|
LONG-TERM LIABILITIES
|
|
|
|
|
|
|
|
|
Income taxes payable
|
|
|
8,916
|
|
|
|
8,665
|
|
|
|
7,937
|
|
|
|
Deferred taxes
|
|
|
7,404
|
|
|
|
7,646
|
|
|
|
8,179
|
|
|
|
Pension liability
|
|
|
1,456
|
|
|
|
1,366
|
|
|
|
1,398
|
|
|
|
Total liabilities
|
|
|
68,735
|
|
|
|
66,614
|
|
|
|
58,081
|
|
|
|
|
|
|
|
|
|
|
STOCKHOLDERS' EQUITY:
|
|
|
|
|
|
|
|
|
Common stock
|
|
|
30
|
|
|
|
29
|
|
|
|
28
|
|
|
|
Additional paid-in capital
|
|
|
215,404
|
|
|
|
198,375
|
|
|
|
175,668
|
|
|
|
Accumulated other comprehensive loss
|
|
|
(358
|
)
|
|
|
(687
|
)
|
|
|
(293
|
)
|
|
|
Retained earnings
|
|
|
199,828
|
|
|
|
185,566
|
|
|
|
165,646
|
|
|
|
Total stockholders' equity
|
|
|
414,904
|
|
|
|
383,283
|
|
|
|
341,049
|
|
|
|
Total liabilities and stockholders' equity
|
|
$
|
483,639
|
|
|
$
|
449,897
|
|
|
$
|
399,130
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
POWER INTEGRATIONS, INC.
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
|
Sept. 30, 2013
|
|
June 30, 2013
|
|
Sept. 30, 2012
|
|
Sept. 30, 2013
|
|
Sept. 30, 2012
|
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
$
|
16,654
|
|
|
$
|
13,672
|
|
|
$
|
(44,406
|
)
|
|
$
|
41,229
|
|
|
$
|
(44,121
|
)
|
|
Adjustments to reconcile net income (loss) to cash provided by
operating activities
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
|
4,094
|
|
|
|
3,993
|
|
|
|
3,799
|
|
|
|
12,062
|
|
|
|
11,426
|
|
|
Amortization of intangible assets
|
|
|
1,842
|
|
|
|
1,842
|
|
|
|
1,843
|
|
|
|
5,526
|
|
|
|
3,322
|
|
|
Loss (gain) on sale of property and equipment
|
|
|
-
|
|
|
|
17
|
|
|
|
-
|
|
|
|
17
|
|
|
|
(1
|
)
|
|
Charge (gain) related to SemiSouth
|
|
|
-
|
|
|
|
(497
|
)
|
|
|
59,237
|
|
|
|
(497
|
)
|
|
|
59,237
|
|
|
Stock-based compensation expense
|
|
|
4,191
|
|
|
|
4,328
|
|
|
|
3,847
|
|
|
|
12,155
|
|
|
|
10,520
|
|
|
Amortization of premium on marketable securities
|
|
|
221
|
|
|
|
147
|
|
|
|
171
|
|
|
|
472
|
|
|
|
738
|
|
|
Non-cash interest income
|
|
|
-
|
|
|
|
-
|
|
|
|
(665
|
)
|
|
|
-
|
|
|
|
(1,445
|
)
|
|
Deferred income taxes
|
|
|
(2,418
|
)
|
|
|
848
|
|
|
|
(745
|
)
|
|
|
(4,806
|
)
|
|
|
4,089
|
|
|
Increase (decrease) in accounts receivable allowances
|
|
|
26
|
|
|
|
(133
|
)
|
|
|
35
|
|
|
|
(127
|
)
|
|
|
21
|
|
|
Excess tax benefit from stock options exercised
|
|
|
-
|
|
|
|
-
|
|
|
|
(86
|
)
|
|
|
-
|
|
|
|
(560
|
)
|
|
Tax benefit associated with employee stock plans
|
|
|
-
|
|
|
|
-
|
|
|
|
(118
|
)
|
|
|
-
|
|
|
|
1,413
|
|
|
Change in operating assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
646
|
|
|
|
(901
|
)
|
|
|
6,825
|
|
|
|
(7,648
|
)
|
|
|
1,489
|
|
|
Inventories
|
|
|
2,938
|
|
|
|
528
|
|
|
|
1,626
|
|
|
|
4,359
|
|
|
|
15,745
|
|
|
Prepaid expenses and other assets
|
|
|
(3,603
|
)
|
|
|
1,270
|
|
|
|
(14,169
|
)
|
|
|
1,595
|
|
|
|
(11,335
|
)
|
|
Accounts payable
|
|
|
(505
|
)
|
|
|
625
|
|
|
|
1,047
|
|
|
|
2,952
|
|
|
|
4,842
|
|
|
Taxes payable and other accrued liabilities
|
|
|
3,088
|
|
|
|
(1,652
|
)
|
|
|
(37,039
|
)
|
|
|
2,608
|
|
|
|
(28,255
|
)
|
|
Deferred income on sales to distributors
|
|
|
1,827
|
|
|
|
548
|
|
|
|
(833
|
)
|
|
|
5,311
|
|
|
|
2,554
|
|
|
Net cash provided by (used in) operating activities
|
|
|
29,001
|
|
|
|
24,635
|
|
|
|
(19,631
|
)
|
|
|
75,208
|
|
|
|
29,679
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
|
Purchases of property and equipment
|
|
|
(4,358
|
)
|
|
|
(2,942
|
)
|
|
|
(3,427
|
)
|
|
|
(11,250
|
)
|
|
|
(12,181
|
)
|
|
Proceeds from sale of property and equipment
|
|
|
-
|
|
|
|
36
|
|
|
|
-
|
|
|
|
36
|
|
|
|
2
|
|
|
Proceeds from sale of SemiSouth related assets
|
|
|
-
|
|
|
|
959
|
|
|
|
-
|
|
|
|
959
|
|
|
|
-
|
|
|
Acquisition
|
|
|
-
|
|
|
|
-
|
|
|
|
(2,360
|
)
|
|
|
-
|
|
|
|
(115,720
|
)
|
|
Increase in financing lease receivables
|
|
|
-
|
|
|
|
-
|
|
|
|
(37
|
)
|
|
|
-
|
|
|
|
(420
|
)
|
|
Collections of financing lease receivables
|
|
|
-
|
|
|
|
-
|
|
|
|
228
|
|
|
|
-
|
|
|
|
527
|
|
|
Loan to SemiSouth
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(18,000
|
)
|
|
Purchases of marketable securities
|
|
|
(51,048
|
)
|
|
|
(25,801
|
)
|
|
|
-
|
|
|
|
(96,271
|
)
|
|
|
-
|
|
|
Proceeds from maturities of marketable securities
|
|
|
8,600
|
|
|
|
15,350
|
|
|
|
24,320
|
|
|
|
25,450
|
|
|
|
36,788
|
|
|
Net cash provided by (used in) investing activities
|
|
|
(46,806
|
)
|
|
|
(12,398
|
)
|
|
|
18,724
|
|
|
|
(81,076
|
)
|
|
|
(109,004
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
|
Net proceeds from issuance of common stock
|
|
|
12,889
|
|
|
|
6,044
|
|
|
|
3,656
|
|
|
|
27,638
|
|
|
|
17,977
|
|
|
Payments of dividends to stockholders
|
|
|
(2,392
|
)
|
|
|
(2,344
|
)
|
|
|
(1,448
|
)
|
|
|
(7,046
|
)
|
|
|
(4,301
|
)
|
|
Excess tax benefit from stock options exercised
|
|
|
-
|
|
|
|
-
|
|
|
|
86
|
|
|
|
-
|
|
|
|
560
|
|
|
Net cash provided by financing activities
|
|
|
10,497
|
|
|
|
3,700
|
|
|
|
2,294
|
|
|
|
20,592
|
|
|
|
14,236
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
|
|
|
(7,308
|
)
|
|
|
15,937
|
|
|
|
1,387
|
|
|
|
14,724
|
|
|
|
(65,089
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
|
|
|
85,426
|
|
|
|
69,489
|
|
|
|
73,360
|
|
|
|
63,394
|
|
|
|
139,836
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH AND CASH EQUIVALENTS AT END OF PERIOD
|
|
$
|
78,118
|
|
|
$
|
85,426
|
|
|
$
|
74,747
|
|
|
$
|
78,118
|
|
|
$
|
74,747
|
|
Copyright Business Wire 2013