Revenues increased four percent sequentially to $88.9 million;
non-GAAP earnings were $0.55 per diluted share; GAAP earnings were $0.39
per diluted share
Cash flow from operations was $24.7 million for the quarter; company
announces new $30 million share-repurchase authorization
Power Integrations (Nasdaq: POWI)
today announced financial results for the quarter ended September 30,
2015. Net revenues for the third quarter were $88.9 million, up four
percent from the prior quarter and down one percent from the third
quarter of 2014. GAAP gross margin for the third quarter was 49.7
percent; operating margin was 13.3 percent. Net income for the quarter
was $11.5 million or $0.39 per diluted share, compared with $0.29 per
diluted share in the prior quarter and $0.52 per diluted share in the
third quarter of 2014.
In addition to its GAAP results, the company provided non-GAAP financial
measures that exclude stock-based compensation expenses, amortization of
intangible assets and other acquisition-related expenses, the tax
effects of these items, and a tax benefit recognized in 2014. Non-GAAP
gross margin for the third quarter was 51.0 percent; operating margin
was 18.9 percent. Non-GAAP net income was $16.2 million or $0.55 per
diluted share, compared with $0.47 per diluted share in the prior
quarter and $0.65 per diluted share in the third quarter of 2014.
Commented Balu Balakrishnan, president and CEO of Power Integrations:
“Like many of our peers, we experienced soft demand in the industrial
end-market during the third quarter. However, revenues increased in each
of the other three end-market categories, resulting in overall
sequential growth of four percent. Most notably, revenues from the
communications market grew more than 30 percent sequentially driven by
adoption of our InnoSwitch™ products in the mobile-device market.
“While macroeconomic conditions continue to weigh on overall demand, we
believe we are in the early stages of a promising product cycle with
InnoSwitch ICs, and we are poised to capitalize on key trends in power
conversion such as energy-efficiency, faster charging of mobile devices,
renewable energy and more.”
Additional Highlights
-
Power Integrations repurchased approximately 775,000 shares of its
common stock during the quarter for $30.6 million, exhausting the
company’s repurchase authorization. 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 September 30. A
dividend of $0.12 per share is scheduled to be paid on December 31,
2015, to stockholders of record as of November 30, 2015.
-
Power Integrations had $151.0 million in cash and short-term
marketable securities at quarter-end, a decrease of $19.9 million
during the quarter. Cash flow from operations in the quarter was $24.7
million.
-
Power Integrations was issued 15 U.S. patents during the third quarter
and had 748 U.S. patents at quarter-end.
Financial Outlook
The company issued the following forecast for the fourth quarter of 2015:
-
Revenues are expected to be in a range of $89 million, plus or minus
$3 million.
-
Non-GAAP gross margin is expected to be between 51 percent and 51.5
percent. (Excludes approximately $0.2 million of stock-based
compensation expense and $1 million of amortization of
acquisition-related intangible assets.) GAAP gross margin is expected
to be between 49.7 percent and 50.2 percent.
-
Non-GAAP operating expenses are expected to be between $29.5 million
and $30 million. (Excludes approximately $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 between $34 million and $34.5 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. 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 a 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 fourth-quarter financial performance and its beliefs about being
in the early stages of a promising product cycle and being poised to
capitalize on key trends in power conversion 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 including its InnoSwitch
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 July 31,
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
|
|
Nine Months Ended
|
|
|
|
|
|
September 30, 2015
|
|
June 30, 2015
|
|
September 30, 2014
|
|
September 30, 2015
|
|
September 30, 2014
|
NET REVENUES
|
|
$
|
88,878
|
|
|
$
|
85,265
|
|
|
$
|
90,144
|
|
|
$
|
256,700
|
|
|
$
|
262,202
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COST OF REVENUES
|
|
|
44,717
|
|
|
|
41,247
|
|
|
|
41,092
|
|
|
|
126,229
|
|
|
|
118,437
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GROSS PROFIT
|
|
|
44,161
|
|
|
|
44,018
|
|
|
|
49,052
|
|
|
|
130,471
|
|
|
|
143,765
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
|
13,888
|
|
|
|
14,683
|
|
|
|
13,458
|
|
|
|
43,144
|
|
|
|
41,314
|
|
Sales and marketing
|
|
|
10,463
|
|
|
|
11,567
|
|
|
|
10,935
|
|
|
|
33,337
|
|
|
|
33,344
|
|
General and administrative
|
|
|
7,361
|
|
|
|
7,480
|
|
|
|
7,155
|
|
|
|
22,824
|
|
|
|
22,614
|
|
Amortization of acquisition-related intangible assets
|
|
|
666
|
|
|
|
693
|
|
|
|
629
|
|
|
|
2,109
|
|
|
|
2,562
|
|
Acquisition expenses, severance and transition costs
|
|
|
-
|
|
|
|
391
|
|
|
|
-
|
|
|
|
1,113
|
|
|
|
-
|
|
|
|
|
Total operating expenses
|
|
|
32,378
|
|
|
|
34,814
|
|
|
|
32,177
|
|
|
|
102,527
|
|
|
|
99,834
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME FROM OPERATIONS
|
|
|
11,783
|
|
|
|
9,204
|
|
|
|
16,875
|
|
|
|
27,944
|
|
|
|
43,931
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income, net
|
|
|
428
|
|
|
|
14
|
|
|
|
381
|
|
|
|
219
|
|
|
|
836
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME BEFORE INCOME TAXES
|
|
|
12,211
|
|
|
|
9,218
|
|
|
|
17,256
|
|
|
|
28,163
|
|
|
|
44,767
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PROVISION (BENEFIT) FOR INCOME TAXES
|
|
|
698
|
|
|
|
628
|
|
|
|
1,145
|
|
|
|
1,717
|
|
|
|
(423
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME
|
|
$
|
11,513
|
|
|
$
|
8,590
|
|
|
$
|
16,111
|
|
|
$
|
26,446
|
|
|
$
|
45,190
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER SHARE:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.40
|
|
|
$
|
0.29
|
|
|
$
|
0.54
|
|
|
$
|
0.91
|
|
|
$
|
1.50
|
|
|
|
|
Diluted
|
|
$
|
0.39
|
|
|
$
|
0.29
|
|
|
$
|
0.52
|
|
|
$
|
0.89
|
|
|
$
|
1.46
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SHARES USED IN PER-SHARE CALCULATION:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
28,855
|
|
|
|
29,368
|
|
|
|
30,013
|
|
|
|
29,175
|
|
|
|
30,186
|
|
|
|
|
Diluted
|
|
|
29,298
|
|
|
|
30,034
|
|
|
|
30,757
|
|
|
|
29,856
|
|
|
|
31,053
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL INFORMATION:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation expenses included in:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues
|
|
$
|
219
|
|
|
$
|
257
|
|
|
$
|
131
|
|
|
$
|
725
|
|
|
$
|
648
|
|
|
|
|
Research and development
|
|
|
1,277
|
|
|
|
1,306
|
|
|
|
971
|
|
|
|
3,974
|
|
|
|
3,522
|
|
|
|
|
Sales and marketing
|
|
|
877
|
|
|
|
878
|
|
|
|
779
|
|
|
|
2,767
|
|
|
|
2,578
|
|
|
|
|
General and administrative
|
|
|
988
|
|
|
|
1,309
|
|
|
|
699
|
|
|
|
4,036
|
|
|
|
3,922
|
|
|
|
|
Total stock-based compensation expense
|
|
$
|
3,361
|
|
|
$
|
3,750
|
|
|
$
|
2,580
|
|
|
$
|
11,502
|
|
|
$
|
10,670
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues includes:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of write-up of acquired inventory
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
309
|
|
|
$
|
-
|
|
|
|
|
Amortization of acquisition-related intangible assets
|
|
$
|
961
|
|
|
$
|
961
|
|
|
$
|
645
|
|
|
$
|
2,883
|
|
|
$
|
1,935
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General & administrative expenses include:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Patent-litigation expenses
|
|
$
|
1,500
|
|
|
$
|
1,501
|
|
|
$
|
1,529
|
|
|
$
|
4,458
|
|
|
$
|
3,842
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income, net includes:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of in-place lease intangible assets
|
|
$
|
30
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
30
|
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REVENUE MIX BY END MARKET
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Communications
|
|
|
26
|
%
|
|
|
21
|
%
|
|
|
18
|
%
|
|
|
23
|
%
|
|
|
17
|
%
|
|
|
|
Computer
|
|
|
7
|
%
|
|
|
7
|
%
|
|
|
11
|
%
|
|
|
7
|
%
|
|
|
11
|
%
|
|
|
|
Consumer
|
|
|
36
|
%
|
|
|
36
|
%
|
|
|
36
|
%
|
|
|
37
|
%
|
|
|
37
|
%
|
|
|
|
Industrial
|
|
|
31
|
%
|
|
|
36
|
%
|
|
|
35
|
%
|
|
|
33
|
%
|
|
|
35
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, 2015
|
|
June 30, 2015
|
|
September 30, 2014
|
|
September 30, 2015
|
|
September 30, 2014
|
RECONCILIATION OF GROSS PROFIT
|
|
|
|
|
|
|
|
|
|
|
GAAP gross profit
|
|
$
|
44,161
|
|
|
$
|
44,018
|
|
|
$
|
49,052
|
|
|
$
|
130,471
|
|
|
$
|
143,765
|
|
|
|
GAAP gross margin
|
|
|
49.7
|
%
|
|
|
51.6
|
%
|
|
|
54.4
|
%
|
|
|
50.8
|
%
|
|
|
54.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation included in cost of revenues
|
|
|
219
|
|
|
|
257
|
|
|
|
131
|
|
|
|
725
|
|
|
|
648
|
|
Amortization of write-up of acquired inventory
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
309
|
|
|
|
-
|
|
Amortization of acquisition-related intangible assets
|
|
|
961
|
|
|
|
961
|
|
|
|
645
|
|
|
|
2,883
|
|
|
|
1,935
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP gross profit
|
|
$
|
45,341
|
|
|
$
|
45,236
|
|
|
$
|
49,828
|
|
|
$
|
134,388
|
|
|
$
|
146,348
|
|
|
|
Non-GAAP gross margin
|
|
|
51.0
|
%
|
|
|
53.1
|
%
|
|
|
55.3
|
%
|
|
|
52.4
|
%
|
|
|
55.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF OPERATING EXPENSES
|
|
|
|
|
|
|
|
|
|
|
GAAP operating expenses
|
|
$
|
32,378
|
|
|
$
|
34,814
|
|
|
$
|
32,177
|
|
|
$
|
102,527
|
|
|
$
|
99,834
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less:
|
|
Stock-based compensation expense included in operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
|
1,277
|
|
|
|
1,306
|
|
|
|
971
|
|
|
|
3,974
|
|
|
|
3,522
|
|
|
|
|
|
|
Sales and marketing
|
|
|
877
|
|
|
|
878
|
|
|
|
779
|
|
|
|
2,767
|
|
|
|
2,578
|
|
|
|
|
|
|
General and administrative
|
|
|
988
|
|
|
|
1,309
|
|
|
|
699
|
|
|
|
4,036
|
|
|
|
3,922
|
|
|
|
|
|
|
Total
|
|
|
3,142
|
|
|
|
3,493
|
|
|
|
2,449
|
|
|
|
10,777
|
|
|
|
10,022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of acquisition-related intangible assets
|
|
|
666
|
|
|
|
693
|
|
|
|
629
|
|
|
|
2,109
|
|
|
|
2,562
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition expenses, severance and transition costs
|
|
|
-
|
|
|
|
391
|
|
|
|
-
|
|
|
|
1,113
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP operating expenses
|
|
$
|
28,570
|
|
|
$
|
30,237
|
|
|
$
|
29,099
|
|
|
$
|
88,528
|
|
|
$
|
87,250
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF INCOME FROM OPERATIONS
|
|
|
|
|
|
|
|
|
|
|
GAAP income from operations
|
|
$
|
11,783
|
|
|
$
|
9,204
|
|
|
$
|
16,875
|
|
|
$
|
27,944
|
|
|
$
|
43,931
|
|
|
|
GAAP operating margin
|
|
|
13.3
|
%
|
|
|
10.8
|
%
|
|
|
18.7
|
%
|
|
|
10.9
|
%
|
|
|
16.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add:
|
|
Total stock-based compensation
|
|
|
3,361
|
|
|
|
3,750
|
|
|
|
2,580
|
|
|
|
11,502
|
|
|
|
10,670
|
|
|
|
Amortization of write-up of acquired inventory
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
309
|
|
|
|
-
|
|
|
|
Amortization of acquisition-related intangible assets
|
|
|
1,627
|
|
|
|
1,654
|
|
|
|
1,274
|
|
|
|
4,992
|
|
|
|
4,497
|
|
|
|
Acquisition expenses, severance and transition costs
|
|
|
-
|
|
|
|
391
|
|
|
|
-
|
|
|
|
1,113
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP income from operations
|
|
$
|
16,771
|
|
|
$
|
14,999
|
|
|
$
|
20,729
|
|
|
$
|
45,860
|
|
|
$
|
59,098
|
|
|
|
Non-GAAP operating margin
|
|
|
18.9
|
%
|
|
|
17.6
|
%
|
|
|
23.0
|
%
|
|
|
17.9
|
%
|
|
|
22.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF PROVISION (BENEFIT) FOR INCOME TAXES
|
|
|
|
|
|
|
|
|
|
|
GAAP provision (benefit) for income taxes
|
|
$
|
698
|
|
|
$
|
628
|
|
|
$
|
1,145
|
|
|
$
|
1,717
|
|
|
$
|
(423
|
)
|
|
|
GAAP effective tax rate
|
|
|
5.7
|
%
|
|
|
6.8
|
%
|
|
|
6.6
|
%
|
|
|
6.1
|
%
|
|
|
-0.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Benefit associated with tax settlement
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(3,331
|
)
|
Tax effect of other adjustments to GAAP results
|
|
|
(310
|
)
|
|
|
(197
|
)
|
|
|
(120
|
)
|
|
|
(1,028
|
)
|
|
|
(783
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP provision for income taxes
|
|
$
|
1,008
|
|
|
$
|
825
|
|
|
$
|
1,265
|
|
|
$
|
2,745
|
|
|
$
|
3,691
|
|
|
|
Non-GAAP effective tax rate
|
|
|
5.9
|
%
|
|
|
5.5
|
%
|
|
|
6.0
|
%
|
|
|
6.0
|
%
|
|
|
6.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF NET INCOME PER SHARE (DILUTED)
|
|
|
|
|
|
|
|
|
|
|
GAAP net income
|
|
$
|
11,513
|
|
|
$
|
8,590
|
|
|
$
|
16,111
|
|
|
$
|
26,446
|
|
|
$
|
45,190
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments to GAAP net income
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation
|
|
|
3,361
|
|
|
|
3,750
|
|
|
|
2,580
|
|
|
|
11,502
|
|
|
|
10,670
|
|
|
|
Amortization of write-up of acquired inventory
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
309
|
|
|
|
-
|
|
|
|
Amortization of acquisition-related intangible assets
|
|
|
1,627
|
|
|
|
1,654
|
|
|
|
1,274
|
|
|
|
4,992
|
|
|
|
4,497
|
|
|
|
Benefit associated with tax settlement
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(3,331
|
)
|
|
|
Acquisition expenses, severance and transition costs
|
|
|
-
|
|
|
|
391
|
|
|
|
-
|
|
|
|
1,113
|
|
|
|
-
|
|
|
|
Amortization of in-place lease intangible assets
|
|
|
30
|
|
|
|
-
|
|
|
|
-
|
|
|
|
30
|
|
|
|
-
|
|
|
|
Tax effect of items excluded from non-GAAP results
|
|
|
(310
|
)
|
|
|
(197
|
)
|
|
|
(120
|
)
|
|
|
(1,028
|
)
|
|
|
(783
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income
|
|
$
|
16,221
|
|
|
$
|
14,188
|
|
|
$
|
19,845
|
|
|
$
|
43,364
|
|
|
$
|
56,243
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average shares outstanding for calculation
|
|
|
|
|
|
|
|
|
|
|
|
|
of non-GAAP income per share (diluted)
|
|
|
29,298
|
|
|
|
30,034
|
|
|
|
30,757
|
|
|
|
29,856
|
|
|
|
31,053
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income per share (diluted)
|
|
$
|
0.55
|
|
|
$
|
0.47
|
|
|
$
|
0.65
|
|
|
$
|
1.45
|
|
|
$
|
1.81
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP income per share
|
|
$
|
0.39
|
|
|
$
|
0.29
|
|
|
$
|
0.52
|
|
|
$
|
0.89
|
|
|
$
|
1.46
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
POWER INTEGRATIONS, INC.
|
CONSOLIDATED BALANCE SHEETS
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2015
|
|
June 30, 2015
|
|
December 31, 2014
|
ASSETS
|
|
|
|
|
|
|
|
|
|
CURRENT ASSETS:
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
59,735
|
|
|
$
|
75,941
|
|
|
$
|
60,708
|
|
|
|
|
Short-term marketable securities
|
|
|
91,222
|
|
|
|
94,944
|
|
|
|
114,575
|
|
|
|
|
Accounts receivable
|
|
|
11,061
|
|
|
|
13,212
|
|
|
|
10,186
|
|
|
|
|
Inventories
|
|
|
55,439
|
|
|
|
64,231
|
|
|
|
64,025
|
|
|
|
|
Deferred tax assets
|
|
|
75
|
|
|
|
38
|
|
|
|
39
|
|
|
|
|
Prepaid expenses and other current assets
|
|
|
5,780
|
|
|
|
9,444
|
|
|
|
16,379
|
|
|
|
|
Total current assets
|
|
|
223,312
|
|
|
|
257,810
|
|
|
|
265,912
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PROPERTY AND EQUIPMENT, net
|
|
|
102,223
|
|
|
|
92,913
|
|
|
|
95,823
|
|
|
|
|
INTANGIBLE ASSETS, net
|
|
|
39,957
|
|
|
|
41,028
|
|
|
|
35,524
|
|
|
|
|
GOODWILL
|
|
|
91,849
|
|
|
|
91,849
|
|
|
|
80,599
|
|
|
|
|
DEFERRED TAX ASSETS
|
|
|
10,647
|
|
|
|
11,025
|
|
|
|
11,562
|
|
|
|
|
OTHER ASSETS
|
|
|
5,502
|
|
|
|
4,894
|
|
|
|
4,243
|
|
|
|
|
Total assets
|
|
$
|
473,490
|
|
|
$
|
499,519
|
|
|
$
|
493,663
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
|
|
|
|
|
|
CURRENT LIABILITIES:
|
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
$
|
23,370
|
|
|
$
|
30,792
|
|
|
$
|
21,980
|
|
|
|
|
Accrued payroll and related expenses
|
|
|
8,203
|
|
|
|
9,539
|
|
|
|
9,071
|
|
|
|
|
Taxes payable
|
|
|
2,022
|
|
|
|
2,237
|
|
|
|
2,963
|
|
|
|
|
Deferred tax liabilities
|
|
|
1,985
|
|
|
|
2,085
|
|
|
|
2,193
|
|
|
|
|
Deferred income on sales to distributors
|
|
|
16,464
|
|
|
|
16,457
|
|
|
|
15,223
|
|
|
|
|
Other accrued liabilities
|
|
|
3,182
|
|
|
|
3,381
|
|
|
|
3,730
|
|
|
|
|
Total current liabilities
|
|
|
55,226
|
|
|
|
64,491
|
|
|
|
55,160
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LONG-TERM LIABILITIES:
|
|
|
|
|
|
|
|
|
|
Income taxes payable
|
|
|
746
|
|
|
|
746
|
|
|
|
743
|
|
|
|
|
Deferred tax liabilities
|
|
|
3,752
|
|
|
|
3,928
|
|
|
|
4,272
|
|
|
|
|
Other liabilities
|
|
|
2,569
|
|
|
|
2,673
|
|
|
|
2,812
|
|
|
|
|
Total liabilities
|
|
|
62,293
|
|
|
|
71,838
|
|
|
|
62,987
|
|
|
|
|
|
|
|
|
|
|
|
STOCKHOLDERS' EQUITY:
|
|
|
|
|
|
|
|
|
|
Common stock
|
|
|
28
|
|
|
|
29
|
|
|
|
29
|
|
|
|
|
Additional paid-in capital
|
|
|
136,422
|
|
|
|
161,089
|
|
|
|
171,938
|
|
|
|
|
Accumulated other comprehensive loss
|
|
|
(1,043
|
)
|
|
|
(1,167
|
)
|
|
|
(1,136
|
)
|
|
|
|
Retained earnings
|
|
|
275,790
|
|
|
|
267,730
|
|
|
|
259,845
|
|
|
|
|
Total stockholders' equity
|
|
|
411,197
|
|
|
|
427,681
|
|
|
|
430,676
|
|
|
|
|
Total liabilities and stockholders' equity
|
|
$
|
473,490
|
|
|
$
|
499,519
|
|
|
$
|
493,663
|
|
|
|
|
|
|
|
|
|
|
|
POWER INTEGRATIONS, INC.
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
|
|
|
September 30, 2015
|
|
June 30, 2015
|
|
September 30, 2014
|
|
September 30, 2015
|
|
September 30, 2014
|
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
11,513
|
|
|
$
|
8,590
|
|
|
$
|
16,111
|
|
|
$
|
26,446
|
|
|
$
|
45,190
|
|
|
|
|
Adjustments to reconcile net income to cash provided by operating
activities
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
|
4,168
|
|
|
|
4,035
|
|
|
|
4,002
|
|
|
|
12,235
|
|
|
|
11,849
|
|
|
|
|
Amortization of intangible assets
|
|
|
1,732
|
|
|
|
1,729
|
|
|
|
1,349
|
|
|
|
5,247
|
|
|
|
4,723
|
|
|
|
|
Loss on disposal of property and equipment
|
|
|
270
|
|
|
|
-
|
|
|
|
11
|
|
|
|
270
|
|
|
|
170
|
|
|
|
|
Stock-based compensation expense
|
|
|
3,361
|
|
|
|
3,750
|
|
|
|
2,580
|
|
|
|
11,502
|
|
|
|
10,670
|
|
|
|
|
Amortization of premium on marketable securities
|
|
|
258
|
|
|
|
265
|
|
|
|
481
|
|
|
|
809
|
|
|
|
1,296
|
|
|
|
|
Deferred income taxes
|
|
|
66
|
|
|
|
9
|
|
|
|
(917
|
)
|
|
|
152
|
|
|
|
(782
|
)
|
|
|
|
Increase (decrease) in accounts receivable allowances
|
|
|
213
|
|
|
|
(80
|
)
|
|
|
90
|
|
|
|
128
|
|
|
|
75
|
|
|
|
|
Excess tax benefit from employee stock plans
|
|
|
-
|
|
|
|
-
|
|
|
|
(224
|
)
|
|
|
-
|
|
|
|
(437
|
)
|
|
|
|
Tax benefit (deficiency) associated with employee stock plans
|
|
|
-
|
|
|
|
-
|
|
|
|
451
|
|
|
|
(189
|
)
|
|
|
815
|
|
|
|
|
Change in operating assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
1,938
|
|
|
|
(500
|
)
|
|
|
5,972
|
|
|
|
888
|
|
|
|
1,933
|
|
|
|
|
Inventories
|
|
|
8,792
|
|
|
|
779
|
|
|
|
(5,693
|
)
|
|
|
9,995
|
|
|
|
(14,639
|
)
|
|
|
|
Prepaid expenses and other assets
|
|
|
2,428
|
|
|
|
2,077
|
|
|
|
4,655
|
|
|
|
4,278
|
|
|
|
9,955
|
|
|
|
|
Accounts payable
|
|
|
(8,338
|
)
|
|
|
5,954
|
|
|
|
639
|
|
|
|
(2,035
|
)
|
|
|
2,509
|
|
|
|
|
Taxes payable and other accrued liabilities
|
|
|
(1,752
|
)
|
|
|
(751
|
)
|
|
|
1,486
|
|
|
|
(3,579
|
)
|
|
|
(3,257
|
)
|
|
|
|
Deferred income on sales to distributors
|
|
|
6
|
|
|
|
(796
|
)
|
|
|
(384
|
)
|
|
|
1,241
|
|
|
|
3,017
|
|
|
|
|
Net cash provided by operating activities
|
|
|
24,655
|
|
|
|
25,061
|
|
|
|
30,609
|
|
|
|
67,388
|
|
|
|
73,087
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchases of property and equipment
|
|
|
(2,475
|
)
|
|
|
(1,822
|
)
|
|
|
(7,509
|
)
|
|
|
(7,619
|
)
|
|
|
(17,394
|
)
|
|
|
|
Payment for purchase of building
|
|
|
(10,389
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
(10,389
|
)
|
|
|
-
|
|
|
|
|
Payment for acquisition, net of cash acquired
|
|
|
-
|
|
|
|
(184
|
)
|
|
|
-
|
|
|
|
(15,549
|
)
|
|
|
-
|
|
|
|
|
Other assets
|
|
|
-
|
|
|
|
-
|
|
|
|
(1,261
|
)
|
|
|
-
|
|
|
|
(1,261
|
)
|
|
|
|
Purchases of marketable securities
|
|
|
(4,940
|
)
|
|
|
(9,993
|
)
|
|
|
(20,518
|
)
|
|
|
(14,933
|
)
|
|
|
(45,269
|
)
|
|
|
|
Proceeds from sales and maturities of marketable securities
|
|
|
8,424
|
|
|
|
2,250
|
|
|
|
-
|
|
|
|
37,459
|
|
|
|
-
|
|
|
|
|
Net cash used in investing activities
|
|
|
(9,380
|
)
|
|
|
(9,749
|
)
|
|
|
(29,288
|
)
|
|
|
(11,031
|
)
|
|
|
(63,924
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net proceeds from issuance of common stock
|
|
|
2,527
|
|
|
|
856
|
|
|
|
3,237
|
|
|
|
6,902
|
|
|
|
13,104
|
|
|
|
|
Repurchase of common stock
|
|
|
(30,555
|
)
|
|
|
(22,335
|
)
|
|
|
(19,527
|
)
|
|
|
(53,731
|
)
|
|
|
(45,258
|
)
|
|
|
|
Payments of dividends to stockholders
|
|
|
(3,453
|
)
|
|
|
(3,529
|
)
|
|
|
(3,595
|
)
|
|
|
(10,501
|
)
|
|
|
(9,654
|
)
|
|
|
|
Excess tax benefit from employee stock plans
|
|
|
-
|
|
|
|
-
|
|
|
|
224
|
|
|
|
-
|
|
|
|
437
|
|
|
|
|
Net cash used in financing activities
|
|
|
(31,481
|
)
|
|
|
(25,008
|
)
|
|
|
(19,661
|
)
|
|
|
(57,330
|
)
|
|
|
(41,371
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET DECREASE IN CASH AND CASH EQUIVALENTS
|
|
|
(16,206
|
)
|
|
|
(9,696
|
)
|
|
|
(18,340
|
)
|
|
|
(973
|
)
|
|
|
(32,208
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
|
|
|
75,941
|
|
|
|
85,637
|
|
|
|
79,060
|
|
|
|
60,708
|
|
|
|
92,928
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH AND CASH EQUIVALENTS AT END OF PERIOD
|
|
$
|
59,735
|
|
|
$
|
75,941
|
|
|
$
|
60,720
|
|
|
$
|
59,735
|
|
|
$
|
60,720
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20151028006541/en/
Copyright Business Wire 2015