Non-GAAP earnings were $0.47/diluted share; GAAP earnings were
$0.29/diluted share
Cash flow from operations was $25.1 million for the quarter; company
announces new $30 million share-repurchase plan
Power Integrations (Nasdaq: POWI)
today announced financial results for the quarter ended June 30, 2015.
Net revenues for the second quarter were $85.3 million, up three percent
from the prior quarter and down four percent from the second quarter of
2014. GAAP gross margin for the second quarter was 51.6 percent;
operating margin was 10.8 percent. Net income for the quarter was $8.6
million or $0.29 per diluted share, compared with $0.21 per diluted
share in the prior quarter and $0.54 per diluted share in the second
quarter of 2014. (GAAP net income for the year-ago quarter included a
non-recurring tax benefit of $3.3 million.)
In addition to its GAAP results, the company provided non-GAAP financial
measures that exclude stock-based compensation expenses, certain
acquisition-related expenses, the tax effects of these items, and the
above-mentioned tax benefit recognized in 2014. Non-GAAP gross margin
for the second quarter was 53.1 percent; operating margin was 17.6
percent. Non-GAAP net income for the quarter was $14.2 million or $0.47
per diluted share, compared with $0.43 per diluted share in the prior
quarter and $0.61 per diluted share in the second quarter of 2014.
Commented Balu Balakrishnan, president and CEO of Power Integrations:
“Like many of our industry peers, we experienced lower-than-expected
demand in the second quarter. However, we proactively adjusted our
operating expenses during the quarter and delivered solid earnings and
strong cash flow.
“While macroeconomic factors remain a concern, we did see an uptick in
sales and bookings in the latter part of the second quarter. We
anticipate sequential revenue growth in the third quarter, led by
adoption of our new InnoSwitch™ product family, which continues to ramp
into the mobile-device market and is now gaining adoption by customers
in our other end-markets as well.”
Additional Highlights
-
Power Integrations repurchased approximately 460,000 shares of its
common stock during the quarter for $22.3 million. Approximately $0.6
million remained on the company’s repurchase authorization at
quarter-end. Earlier this month the company’s board of directors
authorized the use of an additional $30 million for further
repurchases.
-
The company paid a dividend of $0.12 per share on June 30. A dividend
of $0.12 per share is scheduled to be paid on September 30, 2015, to
stockholders of record as of August 31, 2015.
-
Power Integrations had $170.9 million in cash and short-term
marketable securities at quarter-end, a decrease of $2.3 million
during the quarter. Cash flow from operations in the quarter was $25.1
million.
-
Power Integrations was issued 10 U.S. patents during the second
quarter and had 734 U.S. patents at quarter-end.
Financial Outlook
The company issued the following forecast for the third quarter of 2015:
-
Revenues are expected to be in a range of flat to seven percent higher
compared with the second quarter.
-
Non-GAAP gross margin is expected to be between 52.5 percent and 53
percent. (Excludes $0.3 million of stock-based compensation and $1
million of amortization of acquisition-related intangibles.) GAAP
gross margin is expected to be between 51 percent and 51.5 percent.
-
Non-GAAP operating expenses are expected to be approximately $30.5
million. (Excludes $3.8 million of stock-based compensation expenses
and $0.7 million of amortization of acquisition-related intangible
assets.) GAAP operating expenses are expected to be approximately $35
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. PT. 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 and the write-up of acquired inventory, acquisition
expenses, severance and transition expenses, the tax effects of these
items, and the above-mentioned tax benefit recognized in 2014. 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 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
Quarterly Report on Form 10-Q, filed with the Securities and Exchange
Commission (SEC) on April 30, 2015. 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, 2015
|
|
March 31, 2015
|
|
June 30, 2014
|
|
June 30, 2015
|
|
June 30, 2014
|
NET REVENUES
|
|
$
|
85,265
|
|
|
$
|
82,557
|
|
|
$
|
88,985
|
|
|
$
|
167,822
|
|
|
$
|
172,058
|
|
|
|
|
|
|
|
|
|
|
|
|
COST OF REVENUES
|
|
|
41,247
|
|
|
|
40,265
|
|
|
|
40,249
|
|
|
|
81,512
|
|
|
|
77,345
|
|
|
|
|
|
|
|
|
|
|
|
|
GROSS PROFIT
|
|
|
44,018
|
|
|
|
42,292
|
|
|
|
48,736
|
|
|
|
86,310
|
|
|
|
94,713
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
|
14,683
|
|
|
|
14,573
|
|
|
|
14,366
|
|
|
|
29,256
|
|
|
|
27,856
|
|
Sales and marketing
|
|
|
11,567
|
|
|
|
11,307
|
|
|
|
11,434
|
|
|
|
22,874
|
|
|
|
22,409
|
|
General and administrative
|
|
|
7,480
|
|
|
|
7,983
|
|
|
|
7,813
|
|
|
|
15,463
|
|
|
|
15,459
|
|
Amortization of acquisition-related intangible assets
|
|
|
693
|
|
|
|
750
|
|
|
|
798
|
|
|
|
1,443
|
|
|
|
1,933
|
|
Acquisition expenses, severance and transition costs
|
|
|
391
|
|
|
|
722
|
|
|
|
-
|
|
|
|
1,113
|
|
|
|
-
|
|
Total operating expenses
|
|
|
34,814
|
|
|
|
35,335
|
|
|
|
34,411
|
|
|
|
70,149
|
|
|
|
67,657
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME FROM OPERATIONS
|
|
|
9,204
|
|
|
|
6,957
|
|
|
|
14,325
|
|
|
|
16,161
|
|
|
|
27,056
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense), net
|
|
|
14
|
|
|
|
(223
|
)
|
|
|
198
|
|
|
|
(209
|
)
|
|
|
455
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME BEFORE INCOME TAXES
|
|
|
9,218
|
|
|
|
6,734
|
|
|
|
14,523
|
|
|
|
15,952
|
|
|
|
27,511
|
|
|
|
|
|
|
|
|
|
|
|
|
PROVISION (BENEFIT) FOR INCOME TAXES
|
|
|
628
|
|
|
|
391
|
|
|
|
(2,193
|
)
|
|
|
1,019
|
|
|
|
(1,568
|
)
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME
|
|
$
|
8,590
|
|
|
$
|
6,343
|
|
|
$
|
16,716
|
|
|
$
|
14,933
|
|
|
$
|
29,079
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER SHARE:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.29
|
|
|
$
|
0.22
|
|
|
$
|
0.55
|
|
|
$
|
0.51
|
|
|
$
|
0.96
|
|
Diluted
|
|
$
|
0.29
|
|
|
$
|
0.21
|
|
|
$
|
0.54
|
|
|
$
|
0.50
|
|
|
$
|
0.93
|
|
|
|
|
|
|
|
|
|
|
|
|
SHARES USED IN PER-SHARE CALCULATION:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
29,368
|
|
|
|
29,309
|
|
|
|
30,310
|
|
|
|
29,339
|
|
|
|
30,275
|
|
Diluted
|
|
|
30,034
|
|
|
|
30,058
|
|
|
|
31,110
|
|
|
|
30,075
|
|
|
|
31,150
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL INFORMATION:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation expenses included in:
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues
|
|
$
|
257
|
|
|
$
|
249
|
|
|
$
|
298
|
|
|
$
|
506
|
|
|
$
|
517
|
|
Research and development
|
|
|
1,306
|
|
|
|
1,391
|
|
|
|
1,339
|
|
|
|
2,697
|
|
|
|
2,551
|
|
Sales and marketing
|
|
|
878
|
|
|
|
1,012
|
|
|
|
864
|
|
|
|
1,890
|
|
|
|
1,799
|
|
General and administrative
|
|
|
1,309
|
|
|
|
1,739
|
|
|
|
1,674
|
|
|
|
3,048
|
|
|
|
3,223
|
|
Total stock-based compensation expense
|
|
$
|
3,750
|
|
|
$
|
4,391
|
|
|
$
|
4,175
|
|
|
$
|
8,141
|
|
|
$
|
8,090
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues includes:
|
|
|
|
|
|
|
|
|
|
|
Amortization of write-up of acquired inventory
|
|
$
|
-
|
|
|
$
|
309
|
|
|
$
|
-
|
|
|
$
|
309
|
|
|
$
|
-
|
|
Amortization of acquisition-related intangible assets
|
|
$
|
961
|
|
|
$
|
961
|
|
|
$
|
645
|
|
|
$
|
1,922
|
|
|
$
|
1,290
|
|
|
|
|
|
|
|
|
|
|
|
|
General & administrative expenses include:
|
|
|
|
|
|
|
|
|
|
|
Patent-litigation expenses
|
|
$
|
1,501
|
|
|
$
|
1,457
|
|
|
$
|
1,127
|
|
|
$
|
2,958
|
|
|
$
|
2,313
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REVENUE MIX BY END MARKET
|
|
|
|
|
|
|
|
|
|
|
Communications
|
|
|
21
|
%
|
|
|
21
|
%
|
|
|
15
|
%
|
|
|
21
|
%
|
|
|
17
|
%
|
Computer
|
|
|
7
|
%
|
|
|
8
|
%
|
|
|
12
|
%
|
|
|
7
|
%
|
|
|
11
|
%
|
Consumer
|
|
|
36
|
%
|
|
|
38
|
%
|
|
|
38
|
%
|
|
|
37
|
%
|
|
|
37
|
%
|
Industrial
|
|
|
36
|
%
|
|
|
33
|
%
|
|
|
35
|
%
|
|
|
35
|
%
|
|
|
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, 2015
|
|
March 31, 2015
|
|
June 30, 2014
|
|
June 30, 2015
|
|
June 30, 2014
|
RECONCILIATION OF GROSS PROFIT
|
|
|
|
|
|
|
|
|
|
|
GAAP gross profit
|
|
$
|
44,018
|
|
|
$
|
42,292
|
|
|
$
|
48,736
|
|
|
$
|
86,310
|
|
|
$
|
94,713
|
|
GAAP gross margin
|
|
|
51.6
|
%
|
|
|
51.2
|
%
|
|
|
54.8
|
%
|
|
|
51.4
|
%
|
|
|
55.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation included in cost of revenues
|
|
|
257
|
|
|
|
249
|
|
|
|
298
|
|
|
|
506
|
|
|
|
517
|
|
Amortization of write-up of acquired inventory
|
|
|
-
|
|
|
|
309
|
|
|
|
-
|
|
|
|
309
|
|
|
|
-
|
|
Amortization of acquisition-related intangible assets
|
|
|
961
|
|
|
|
961
|
|
|
|
645
|
|
|
|
1,922
|
|
|
|
1,290
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP gross profit
|
|
$
|
45,236
|
|
|
$
|
43,811
|
|
|
$
|
49,679
|
|
|
$
|
89,047
|
|
|
$
|
96,520
|
|
Non-GAAP gross margin
|
|
|
53.1
|
%
|
|
|
53.1
|
%
|
|
|
55.8
|
%
|
|
|
53.1
|
%
|
|
|
56.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF OPERATING EXPENSES
|
|
|
|
|
|
|
|
|
|
|
GAAP operating expenses
|
|
$
|
34,814
|
|
|
$
|
35,335
|
|
|
$
|
34,411
|
|
|
$
|
70,149
|
|
|
$
|
67,657
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Stock-based compensation expense included in operating
expenses
|
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
|
1,306
|
|
|
|
1,391
|
|
|
|
1,339
|
|
|
|
2,697
|
|
|
|
2,551
|
|
Sales and marketing
|
|
|
878
|
|
|
|
1,012
|
|
|
|
864
|
|
|
|
1,890
|
|
|
|
1,799
|
|
General and administrative
|
|
|
1,309
|
|
|
|
1,739
|
|
|
|
1,674
|
|
|
|
3,048
|
|
|
|
3,223
|
|
Total
|
|
|
3,493
|
|
|
|
4,142
|
|
|
|
3,877
|
|
|
|
7,635
|
|
|
|
7,573
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of acquisition-related intangible assets
|
|
|
693
|
|
|
|
750
|
|
|
|
798
|
|
|
|
1,443
|
|
|
|
1,933
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition expenses, severance and transition costs
|
|
|
391
|
|
|
|
722
|
|
|
|
-
|
|
|
|
1,113
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP operating expenses
|
|
$
|
30,237
|
|
|
$
|
29,721
|
|
|
$
|
29,736
|
|
|
$
|
59,958
|
|
|
$
|
58,151
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF INCOME FROM OPERATIONS
|
|
|
|
|
|
|
|
|
|
|
GAAP income from operations
|
|
$
|
9,204
|
|
|
$
|
6,957
|
|
|
$
|
14,325
|
|
|
$
|
16,161
|
|
|
$
|
27,056
|
|
GAAP operating margin
|
|
|
10.8
|
%
|
|
|
8.4
|
%
|
|
|
16.1
|
%
|
|
|
9.6
|
%
|
|
|
15.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Add: Total stock-based compensation
|
|
|
3,750
|
|
|
|
4,391
|
|
|
|
4,175
|
|
|
|
8,141
|
|
|
|
8,090
|
|
Amortization of write-up of acquired inventory
|
|
|
-
|
|
|
|
309
|
|
|
|
-
|
|
|
|
309
|
|
|
|
-
|
|
Amortization of acquisition-related intangible assets
|
|
|
1,654
|
|
|
|
1,711
|
|
|
|
1,443
|
|
|
|
3,365
|
|
|
|
3,223
|
|
Acquisition expenses, severance and transition costs
|
|
|
391
|
|
|
|
722
|
|
|
|
-
|
|
|
|
1,113
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP income from operations
|
|
$
|
14,999
|
|
|
$
|
14,090
|
|
|
$
|
19,943
|
|
|
$
|
29,089
|
|
|
$
|
38,369
|
|
Non-GAAP operating margin
|
|
|
17.6
|
%
|
|
|
17.1
|
%
|
|
|
22.4
|
%
|
|
|
17.3
|
%
|
|
|
22.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF PROVISION (BENEFIT) FOR INCOME TAXES
|
|
|
|
|
|
|
|
|
|
|
GAAP provision (benefit) for income taxes
|
|
$
|
628
|
|
|
$
|
391
|
|
|
$
|
(2,193
|
)
|
|
$
|
1,019
|
|
|
$
|
(1,568
|
)
|
GAAP effective tax rate
|
|
|
6.8
|
%
|
|
|
5.8
|
%
|
|
|
-15.1
|
%
|
|
|
6.4
|
%
|
|
|
-5.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Benefit associated with tax settlement
|
|
|
-
|
|
|
|
-
|
|
|
|
(3,331
|
)
|
|
|
-
|
|
|
|
(3,331
|
)
|
Tax effect of other adjustments to GAAP results
|
|
|
(197
|
)
|
|
|
(521
|
)
|
|
|
(115
|
)
|
|
|
(718
|
)
|
|
|
(663
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP provision for income taxes
|
|
$
|
825
|
|
|
$
|
912
|
|
|
$
|
1,253
|
|
|
$
|
1,737
|
|
|
$
|
2,426
|
|
Non-GAAP effective tax rate
|
|
|
5.5
|
%
|
|
|
6.6
|
%
|
|
|
6.2
|
%
|
|
|
6.0
|
%
|
|
|
6.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF NET INCOME PER SHARE (DILUTED)
|
|
|
|
|
|
|
|
|
|
|
GAAP net income
|
|
$
|
8,590
|
|
|
$
|
6,343
|
|
|
$
|
16,716
|
|
|
$
|
14,933
|
|
|
$
|
29,079
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments to GAAP net income
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation
|
|
|
3,750
|
|
|
|
4,391
|
|
|
|
4,175
|
|
|
|
8,141
|
|
|
|
8,090
|
|
Amortization of write-up of acquired inventory
|
|
|
-
|
|
|
|
309
|
|
|
|
-
|
|
|
|
309
|
|
|
|
-
|
|
Amortization of acquisition-related intangible assets
|
|
|
1,654
|
|
|
|
1,711
|
|
|
|
1,443
|
|
|
|
3,365
|
|
|
|
3,223
|
|
Benefit associated with tax settlement
|
|
|
-
|
|
|
|
-
|
|
|
|
(3,331
|
)
|
|
|
-
|
|
|
|
(3,331
|
)
|
Acquisition expenses, severance and transition costs
|
|
|
391
|
|
|
|
722
|
|
|
|
-
|
|
|
|
1,113
|
|
|
|
-
|
|
Tax effect of items excluded from non-GAAP results
|
|
|
(197
|
)
|
|
|
(521
|
)
|
|
|
(115
|
)
|
|
|
(718
|
)
|
|
|
(663
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income
|
|
$
|
14,188
|
|
|
$
|
12,955
|
|
|
$
|
18,888
|
|
|
$
|
27,143
|
|
|
$
|
36,398
|
|
|
|
|
|
|
|
|
|
|
|
|
Average shares outstanding for calculation of non-GAAP income per
share (diluted)
|
|
|
30,034
|
|
|
|
30,058
|
|
|
|
31,110
|
|
|
|
30,075
|
|
|
|
31,150
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income per share (diluted)
|
|
$
|
0.47
|
|
|
$
|
0.43
|
|
|
$
|
0.61
|
|
|
$
|
0.90
|
|
|
$
|
1.17
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP income per share
|
|
$
|
0.29
|
|
|
$
|
0.21
|
|
|
$
|
0.54
|
|
|
$
|
0.50
|
|
|
$
|
0.93
|
|
|
POWER INTEGRATIONS, INC. CONSOLIDATED BALANCE SHEETS (in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2015
|
|
March 31, 2015
|
|
December 31, 2014
|
ASSETS
|
|
|
|
|
|
|
CURRENT ASSETS:
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
75,941
|
|
|
$
|
85,637
|
|
|
$
|
60,708
|
|
Short-term marketable securities
|
|
|
94,944
|
|
|
|
87,560
|
|
|
|
114,575
|
|
Accounts receivable
|
|
|
13,212
|
|
|
|
12,631
|
|
|
|
10,186
|
|
Inventories
|
|
|
64,231
|
|
|
|
65,009
|
|
|
|
64,025
|
|
Deferred tax assets
|
|
|
38
|
|
|
|
39
|
|
|
|
39
|
|
Prepaid expenses and other current assets
|
|
|
9,444
|
|
|
|
11,458
|
|
|
|
16,379
|
|
Total current assets
|
|
|
257,810
|
|
|
|
262,334
|
|
|
|
265,912
|
|
|
|
|
|
|
|
|
PROPERTY AND EQUIPMENT, net
|
|
|
92,913
|
|
|
|
94,179
|
|
|
|
95,823
|
|
INTANGIBLE ASSETS, net
|
|
|
41,028
|
|
|
|
42,758
|
|
|
|
35,524
|
|
GOODWILL
|
|
|
91,849
|
|
|
|
91,849
|
|
|
|
80,599
|
|
DEFERRED TAX ASSETS
|
|
|
11,025
|
|
|
|
11,265
|
|
|
|
11,562
|
|
OTHER ASSETS
|
|
|
4,894
|
|
|
|
4,789
|
|
|
|
4,243
|
|
Total assets
|
|
$
|
499,519
|
|
|
$
|
507,174
|
|
|
$
|
493,663
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
|
|
|
CURRENT LIABILITIES:
|
|
|
|
|
|
|
Accounts payable
|
|
$
|
30,792
|
|
|
$
|
23,907
|
|
|
$
|
21,980
|
|
Accrued payroll and related expenses
|
|
|
9,539
|
|
|
|
8,815
|
|
|
|
9,071
|
|
Taxes payable
|
|
|
2,237
|
|
|
|
2,930
|
|
|
|
2,963
|
|
Deferred tax liabilities
|
|
|
2,085
|
|
|
|
2,187
|
|
|
|
2,193
|
|
Deferred income on sales to distributors
|
|
|
16,457
|
|
|
|
17,254
|
|
|
|
15,223
|
|
Other accrued liabilities
|
|
|
3,381
|
|
|
|
3,834
|
|
|
|
3,730
|
|
Total current liabilities
|
|
|
64,491
|
|
|
|
58,927
|
|
|
|
55,160
|
|
|
|
|
|
|
|
|
LONG-TERM LIABILITIES:
|
|
|
|
|
|
|
Income taxes payable
|
|
|
746
|
|
|
|
746
|
|
|
|
743
|
|
Deferred tax liabilities
|
|
|
3,928
|
|
|
|
4,059
|
|
|
|
4,272
|
|
Other liabilities
|
|
|
2,673
|
|
|
|
2,960
|
|
|
|
2,812
|
|
Total liabilities
|
|
|
71,838
|
|
|
|
66,692
|
|
|
|
62,987
|
|
|
|
|
|
|
|
|
STOCKHOLDERS' EQUITY:
|
|
|
|
|
|
|
Common stock
|
|
|
29
|
|
|
|
29
|
|
|
|
29
|
|
Additional paid-in capital
|
|
|
161,089
|
|
|
|
178,816
|
|
|
|
171,938
|
|
Accumulated other comprehensive loss
|
|
|
(1,167
|
)
|
|
|
(1,031
|
)
|
|
|
(1,136
|
)
|
Retained earnings
|
|
|
267,730
|
|
|
|
262,668
|
|
|
|
259,845
|
|
Total stockholders' equity
|
|
|
427,681
|
|
|
|
440,482
|
|
|
|
430,676
|
|
Total liabilities and stockholders' equity
|
|
$
|
499,519
|
|
|
$
|
507,174
|
|
|
$
|
493,663
|
|
|
POWER INTEGRATIONS, INC. CONSOLIDATED STATEMENTS OF
CASH FLOWS (in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
June 30, 2015
|
|
March 31, 2015
|
|
June 30, 2014
|
|
June 30, 2015
|
|
June 30, 2014
|
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
8,590
|
|
|
$
|
6,343
|
|
|
$
|
16,716
|
|
|
$
|
14,933
|
|
|
$
|
29,079
|
|
Adjustments to reconcile net income to cash provided by operating
activities
|
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
|
4,035
|
|
|
|
4,032
|
|
|
|
3,876
|
|
|
|
8,067
|
|
|
|
7,847
|
|
Amortization of intangible assets
|
|
|
1,729
|
|
|
|
1,786
|
|
|
|
1,518
|
|
|
|
3,515
|
|
|
|
3,374
|
|
Loss on disposal of property and equipment
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
159
|
|
Stock-based compensation expense
|
|
|
3,750
|
|
|
|
4,391
|
|
|
|
4,175
|
|
|
|
8,141
|
|
|
|
8,090
|
|
Amortization of premium on marketable securities
|
|
|
265
|
|
|
|
286
|
|
|
|
421
|
|
|
|
551
|
|
|
|
815
|
|
Deferred income taxes
|
|
|
9
|
|
|
|
77
|
|
|
|
(3,729
|
)
|
|
|
86
|
|
|
|
135
|
|
Decrease in accounts receivable allowances
|
|
|
(80
|
)
|
|
|
(5
|
)
|
|
|
-
|
|
|
|
(85
|
)
|
|
|
(15
|
)
|
Excess tax benefit from employee stock plans
|
|
|
-
|
|
|
|
-
|
|
|
|
(213
|
)
|
|
|
-
|
|
|
|
(213
|
)
|
Tax benefit (deficiency) associated with employee stock plans
|
|
|
-
|
|
|
|
(189
|
)
|
|
|
364
|
|
|
|
(189
|
)
|
|
|
364
|
|
Change in operating assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
(500
|
)
|
|
|
(550
|
)
|
|
|
(22
|
)
|
|
|
(1,050
|
)
|
|
|
(4,039
|
)
|
Inventories
|
|
|
779
|
|
|
|
424
|
|
|
|
(3,294
|
)
|
|
|
1,203
|
|
|
|
(8,946
|
)
|
Prepaid expenses and other assets
|
|
|
2,077
|
|
|
|
(227
|
)
|
|
|
3,475
|
|
|
|
1,850
|
|
|
|
5,300
|
|
Accounts payable
|
|
|
5,954
|
|
|
|
349
|
|
|
|
782
|
|
|
|
6,303
|
|
|
|
1,870
|
|
Taxes payable and other accrued liabilities
|
|
|
(751
|
)
|
|
|
(1,076
|
)
|
|
|
881
|
|
|
|
(1,827
|
)
|
|
|
(4,743
|
)
|
Deferred income on sales to distributors
|
|
|
(796
|
)
|
|
|
2,031
|
|
|
|
1,285
|
|
|
|
1,235
|
|
|
|
3,401
|
|
Net cash provided by operating activities
|
|
|
25,061
|
|
|
|
17,672
|
|
|
|
26,235
|
|
|
|
42,733
|
|
|
|
42,478
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
Purchases of property and equipment
|
|
|
(1,822
|
)
|
|
|
(3,322
|
)
|
|
|
(5,420
|
)
|
|
|
(5,144
|
)
|
|
|
(9,885
|
)
|
Acquisition, net of cash acquired
|
|
|
(184
|
)
|
|
|
(15,365
|
)
|
|
|
-
|
|
|
|
(15,549
|
)
|
|
|
-
|
|
Purchases of marketable securities
|
|
|
(9,993
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
(9,993
|
)
|
|
|
(24,751
|
)
|
Proceeds from sales and maturities of marketable securities
|
|
|
2,250
|
|
|
|
26,785
|
|
|
|
-
|
|
|
|
29,035
|
|
|
|
-
|
|
Net cash provided by (used in) investing activities
|
|
|
(9,749
|
)
|
|
|
8,098
|
|
|
|
(5,420
|
)
|
|
|
(1,651
|
)
|
|
|
(34,636
|
)
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
Net proceeds from issuance of common stock
|
|
|
856
|
|
|
|
3,519
|
|
|
|
2,822
|
|
|
|
4,375
|
|
|
|
9,867
|
|
Repurchase of common stock
|
|
|
(22,335
|
)
|
|
|
(841
|
)
|
|
|
(25,731
|
)
|
|
|
(23,176
|
)
|
|
|
(25,731
|
)
|
Payments of dividends to stockholders
|
|
|
(3,529
|
)
|
|
|
(3,519
|
)
|
|
|
(3,026
|
)
|
|
|
(7,048
|
)
|
|
|
(6,059
|
)
|
Excess tax benefit from employee stock plans
|
|
|
-
|
|
|
|
-
|
|
|
|
213
|
|
|
|
-
|
|
|
|
213
|
|
Net cash used in financing activities
|
|
|
(25,008
|
)
|
|
|
(841
|
)
|
|
|
(25,722
|
)
|
|
|
(25,849
|
)
|
|
|
(21,710
|
)
|
|
|
|
|
|
|
|
|
|
|
|
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
|
|
|
(9,696
|
)
|
|
|
24,929
|
|
|
|
(4,907
|
)
|
|
|
15,233
|
|
|
|
(13,868
|
)
|
|
|
|
|
|
|
|
|
|
|
|
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
|
|
|
85,637
|
|
|
|
60,708
|
|
|
|
83,967
|
|
|
|
60,708
|
|
|
|
92,928
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH AND CASH EQUIVALENTS AT END OF PERIOD
|
|
$
|
75,941
|
|
|
$
|
85,637
|
|
|
$
|
79,060
|
|
|
$
|
75,941
|
|
|
$
|
79,060
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20150729006621/en/
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