POWI Power Integrations Inc

Quarterly revenues increased 18 percent year-over-year to $105.2 million; GAAP earnings were $0.16 per diluted share; non-GAAP earnings were $0.30 per diluted share

Power Integrations (NASDAQ: POWI) today announced financial results for the quarter and year ended December 31, 2024. Net revenues for the fourth quarter were $105.2 million, down nine percent from the prior quarter and up 18 percent from the fourth quarter of 2023. GAAP net income for the fourth quarter was $9.1 million or $0.16 per diluted share compared to $0.25 per diluted share in the prior quarter and $0.25 per diluted share in the fourth quarter of 2023. Cash flow from operations for the fourth quarter was $14.7 million.

In addition to its GAAP results, the company provided non-GAAP measures that exclude stock-based compensation, amortization of acquisition-related intangible assets and the related tax effects. Non-GAAP net income for the fourth quarter of 2024 was $17.2 million or $0.30 per diluted share compared to $0.40 per diluted share in the prior quarter and $0.22 per diluted share in the fourth quarter of 2023. A reconciliation of GAAP to non-GAAP financial results is included with the tables accompanying this press release.

For the full year, net revenues were $419.0 million, compared to $444.5 million in the prior year. Full-year GAAP net income was $32.2 million or $0.56 per diluted share, compared to $0.97 per diluted share in the prior year. Non-GAAP net income was $1.16 per diluted share, compared to $1.29 per diluted share in the prior year. Cash flow from operations for the full year was $81.2 million.

Commented Balu Balakrishnan, chairman and CEO of Power Integrations: “Fourth-quarter revenues were up 18 percent year-over-year, and we expect another double-digit increase in the first quarter. While the demand outlook is cloudy, especially in light of uncertainty around trade policy, we expect growth in a variety of end-markets in 2025, including renewable energy, high-voltage DC transmission, metering, automotive, appliances and more. Products featuring our proprietary PowiGaN™ technology should contribute significant growth this year as adoption accelerates across a broad set of high-voltage power-conversion applications.”

Additional Highlights

• Power Integrations paid a dividend of $0.21 per share on December 31, 2024. A dividend of $0.21 per share will be paid on March 31, 2025, to stockholders of record as of February 28, 2025.
• The company utilized $1.9 million for share repurchases during the fourth quarter, leaving $48.1 million remaining on its repurchase authorization as of December 31.

Financial Outlook

The company issued the following forecast for the first quarter of 2025:

• Revenues are expected to be flat compared to the fourth quarter of 2024, plus or minus five percent.
• GAAP gross margin is expected to be between 55 percent and 55.5 percent, and non-GAAP gross margin is expected to be between 55.5 percent and 56 percent. The difference between GAAP and non-GAAP is primarily attributable to stock-based compensation, with a smaller impact from amortization of acquisition-related intangible assets.
• GAAP operating expenses are expected to be approximately $54 million; non-GAAP operating expenses are expected to be approximately $45 million. Non-GAAP operating expenses are expected to exclude approximately $9 million of stock-based compensation.

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. A live webcast of the call will be available on the investor section of the company's website, http://investors.power.com. Members of the investment community can register for the conference call by visiting https://emportal.ink/3C0h3y6.

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 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. 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 above statements regarding the company’s forecast for its first-quarter financial performance and expectation of growth across a wide range of end-markets in 2025 are forward-looking statements reflecting management's current expectations and beliefs. These 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: the company’s ability to supply products and its ability to conduct other aspects of its business such as competing for new design wins; changes in global economic and geopolitical conditions, including such factors as inflation, armed conflicts and trade negotiations, 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; 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 on February 12, 2024. The company is under no obligation (and expressly disclaims any obligation) to update or alter its forward-looking statements, whether because of new information, future events or otherwise, except as otherwise required by law.

Power Integrations, PowiGaN 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 Twelve Months Ended December 31, 2024 September 30, 2024 December 31, 2023 December 31, 2024   December 31, 2023 NET REVENUES

$

105,250

 

$

115,837

 

$

89,507

 

$

418,973

 

 

$

444,538

 

    COST OF REVENUES

 

47,983

 

 

52,666

 

 

43,299

 

 

194,222

 

 

 

215,582

 

    GROSS PROFIT

 

57,267

 

 

63,171

 

 

46,208

 

 

224,751

 

 

 

228,956

 

    OPERATING EXPENSES:   Research and development

 

25,689

 

 

25,829

 

 

23,505

 

 

100,790

 

 

 

96,067

 

Sales and marketing

 

16,931

 

 

17,119

 

 

15,472

 

 

67,825

 

 

 

64,598

 

General and administrative

 

10,728

 

 

8,641

 

 

8,282

 

 

38,207

 

 

 

33,232

 

Total operating expenses

 

53,348

 

 

51,589

 

 

47,259

 

 

206,822

 

 

 

193,897

 

    INCOME (LOSS) FROM OPERATIONS

 

3,919

 

 

11,582

 

 

(1,051

)

 

17,929

 

 

 

35,059

 

    OTHER INCOME

 

3,384

 

 

2,750

 

 

3,282

 

 

12,825

 

 

 

10,848

 

    INCOME BEFORE INCOME TAXES

 

7,303

 

 

14,332

 

 

2,231

 

 

30,754

 

 

 

45,907

 

    PROVISION (BENEFIT) FOR INCOME TAXES

 

(1,837

)

 

41

 

 

(12,040

)

 

(1,480

)

 

 

(9,828

)

    NET INCOME

$

9,140

 

$

14,291

 

$

14,271

 

$

32,234

 

 

$

55,735

 

    EARNINGS PER SHARE:   Basic

$

0.16

 

$

0.25

 

$

0.25

 

$

0.57

 

 

$

0.97

 

Diluted

$

0.16

 

$

0.25

 

$

0.25

 

$

0.56

 

 

$

0.97

 

    SHARES USED IN PER-SHARE CALCULATION:   Basic

 

56,848

 

 

56,817

 

 

56,937

 

 

56,820

 

 

 

57,195

 

Diluted

 

57,097

 

 

57,004

 

 

57,272

 

 

57,130

 

 

 

57,622

 

            SUPPLEMENTAL INFORMATION: Three Months Ended Twelve Months Ended December 31, 2024 September 30, 2024 December 31, 2023 December 31, 2024   December 31, 2023 Stock-based compensation expenses included in:   Cost of revenues

$

541

 

$

496

 

$

499

 

$

2,090

 

 

$

1,692

 

Research and development

 

3,280

 

 

2,997

 

 

2,947

 

 

12,587

 

 

 

10,939

 

Sales and marketing

 

2,074

 

 

1,876

 

 

1,827

 

 

8,064

 

 

 

6,888

 

General and administrative

 

3,394

 

 

2,969

 

 

2,230

 

 

12,335

 

 

 

9,009

 

Total stock-based compensation expense

$

9,289

 

$

8,338

 

$

7,503

 

$

35,076

 

 

$

28,528

 

    Cost of revenues includes:   Amortization of acquisition-related intangible assets

$

147

 

$

147

 

$

482

 

$

1,034

 

 

$

1,928

 

        Three Months Ended Twelve Months Ended REVENUE MIX BY END MARKET December 31, 2024 September 30, 2024 December 31, 2023 December 31, 2024   December 31, 2023 Communications

 

13

%

 

12

%

 

27

%

 

12

%

 

 

29

%

Computer

 

15

%

 

14

%

 

9

%

 

14

%

 

 

12

%

Consumer

 

37

%

 

38

%

 

29

%

 

39

%

 

 

27

%

Industrial

 

35

%

 

36

%

 

35

%

 

35

%

 

 

32

%

    POWER INTEGRATIONS, INC. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP RESULTS (in thousands, except per-share amounts)   Three Months Ended Twelve Months Ended December 31, 2024 September 30, 2024 December 31, 2023 December 31, 2024 December 31, 2023 RECONCILIATION OF GROSS PROFIT GAAP gross profit

$

57,267

 

$

63,171

 

$

46,208

 

$

224,751

 

$

228,956

 

GAAP gross margin

 

54.4

%

 

54.5

%

 

51.6

%

 

53.6

%

 

51.5

%

  Stock-based compensation included in cost of revenues

 

541

 

 

496

 

 

499

 

 

2,090

 

 

1,692

 

Amortization of acquisition-related intangible assets

 

147

 

 

147

 

 

482

 

 

1,034

 

 

1,928

 

  Non-GAAP gross profit

$

57,955

 

$

63,814

 

$

47,189

 

$

227,875

 

$

232,576

 

Non-GAAP gross margin

 

55.1

%

 

55.1

%

 

52.7

%

 

54.4

%

 

52.3

%

    Three Months Ended Twelve Months Ended RECONCILIATION OF OPERATING EXPENSES December 31, 2024 September 30, 2024 December 31, 2023 December 31, 2024 December 31, 2023 GAAP operating expenses

$

53,348

 

$

51,589

 

$

47,259

 

$

206,822

 

$

193,897

 

  Less:Stock-based compensation expense included in operating expenses Research and development

 

3,280

 

 

2,997

 

 

2,947

 

 

12,587

 

 

10,939

 

Sales and marketing

 

2,074

 

 

1,876

 

 

1,827

 

 

8,064

 

 

6,888

 

General and administrative

 

3,394

 

 

2,969

 

 

2,230

 

 

12,335

 

 

9,009

 

Total

 

8,748

 

 

7,842

 

 

7,004

 

 

32,986

 

 

26,836

 

  Non-GAAP operating expenses

$

44,600

 

$

43,747

 

$

40,255

 

$

173,836

 

$

167,061

 

    Three Months Ended Twelve Months Ended RECONCILIATION OF INCOME FROM OPERATIONS December 31, 2024 September 30, 2024 December 31, 2023 December 31, 2024 December 31, 2023 GAAP income (loss) from operations

$

3,919

 

$

11,582

 

$

(1,051

)

$

17,929

 

$

35,059

 

GAAP operating margin

 

3.7

%

 

10.0

%

 

-1.2

%

 

4.3

%

 

7.9

%

  Add:Total stock-based compensation

 

9,289

 

 

8,338

 

 

7,503

 

 

35,076

 

 

28,528

 

Amortization of acquisition-related intangible assets

 

147

 

 

147

 

 

482

 

 

1,034

 

 

1,928

 

  Non-GAAP income from operations

$

13,355

 

$

20,067

 

$

6,934

 

$

54,039

 

$

65,515

 

Non-GAAP operating margin

 

12.7

%

 

17.3

%

 

7.7

%

 

12.9

%

 

14.7

%

    Three Months Ended Twelve Months Ended RECONCILIATION OF PROVISION FOR INCOME TAXES December 31, 2024 September 30, 2024 December 31, 2023 December 31, 2024 December 31, 2023 GAAP provision (benefit) for income taxes

$

(1,837

)

$

41

 

$

(12,040

)

$

(1,480

)

$

(9,828

)

GAAP effective tax rate

 

-25.2

%

 

0.3

%

 

-539.7

%

 

-4.8

%

 

-21.4

%

  Tax effect of adjustments to GAAP results

 

(1,366

)

 

(160

)

 

(9,556

)

 

(2,153

)

 

(11,653

)

  Non-GAAP provision (benefit) for income taxes

$

(471

)

$

201

 

$

(2,484

)

$

673

 

$

1,825

 

Non-GAAP effective tax rate

 

-2.8

%

 

0.9

%

 

-24.3

%

 

1.0

%

 

2.4

%

    Three Months Ended Twelve Months Ended RECONCILIATION OF NET INCOME PER SHARE (DILUTED) December 31, 2024 September 30, 2024 December 31, 2023 December 31, 2024 December 31, 2023 GAAP net income

$

9,140

 

$

14,291

 

$

14,271

 

$

32,234

 

$

55,735

 

  Adjustments to GAAP net income Stock-based compensation

 

9,289

 

 

8,338

 

 

7,503

 

 

35,076

 

 

28,528

 

Amortization of acquisition-related intangible assets

 

147

 

 

147

 

 

482

 

 

1,034

 

 

1,928

 

Tax effect of items excluded from non-GAAP results

 

(1,366

)

 

(160

)

 

(9,556

)

 

(2,153

)

 

(11,653

)

  Non-GAAP net income

$

17,210

 

$

22,616

 

$

12,700

 

$

66,191

 

$

74,538

 

  Average shares outstanding for calculation of non-GAAP net income per share (diluted)

 

57,097

 

 

57,004

 

 

57,272

 

 

57,130

 

 

57,622

 

  Non-GAAP net income per share (diluted)

$

0.30

 

$

0.40

 

$

0.22

 

$

1.16

 

$

1.29

 

  GAAP net income per share (diluted)

$

0.16

 

$

0.25

 

$

0.25

 

$

0.56

 

$

0.97

 

  POWER INTEGRATIONS, INC. CONSOLIDATED BALANCE SHEETS (in thousands)     December 31, 2024 September 30, 2024 December 31, 2023 ASSETS CURRENT ASSETS: Cash and cash equivalents

$

50,972

 

$

58,469

$

63,929

 

Short-term marketable securities

 

249,023

 

 

245,282

 

247,640

 

Accounts receivable, net

 

27,172

 

 

16,634

 

14,674

 

Inventories

 

165,612

 

 

167,680

 

163,164

 

Prepaid expenses and other current assets

 

21,260

 

 

19,821

 

22,193

 

Total current assets

 

514,039

 

 

507,886

 

511,600

 

  PROPERTY AND EQUIPMENT, net

 

149,562

 

 

153,313

 

164,213

 

INTANGIBLE ASSETS, net

 

8,075

 

 

8,283

 

4,424

 

GOODWILL

 

95,271

 

 

95,271

 

91,849

 

DEFERRED TAX ASSETS

 

36,485

 

 

36,393

 

28,325

 

OTHER ASSETS

 

25,394

 

 

23,845

 

19,457

 

Total assets

$

828,826

 

$

824,991

$

819,868

 

  LIABILITIES AND STOCKHOLDERS’ EQUITY CURRENT LIABILITIES: Accounts payable

$

29,789

 

$

27,091

$

26,390

 

Accrued payroll and related expenses

 

13,987

 

 

13,337

 

13,551

 

Taxes payable

 

961

 

 

1,063

 

1,016

 

Other accrued liabilities

 

10,580

 

 

9,267

 

7,910

 

Total current liabilities

 

55,317

 

 

50,758

 

48,867

 

  LONG-TERM LIABILITIES: Income taxes payable

 

3,871

 

 

6,351

 

6,244

 

Other liabilities

 

19,866

 

 

18,669

 

12,516

 

Total liabilities

 

79,054

 

 

75,778

 

67,627

 

  STOCKHOLDERS' EQUITY: Common stock

 

22

 

 

22

 

23

 

Additional paid-in capital

 

18,734

 

 

11,347

 

-

 

Accumulated other comprehensive income (loss)

 

(3,023

)

 

1,008

 

(1,462

)

Retained earnings

 

734,039

 

 

736,836

 

753,680

 

Total stockholders' equity

 

749,772

 

 

749,213

 

752,241

 

Total liabilities and stockholders' equity

$

828,826

 

$

824,991

$

819,868

 

  POWER INTEGRATIONS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands)   Three Months Ended Twelve Months Ended December 31, 2024 September 30, 2024 December 31, 2023 December 31, 2024 December 31, 2023 CASH FLOWS FROM OPERATING ACTIVITIES: Net income

$

9,140

 

$

14,291

 

$

14,271

 

$

32,234

 

$

55,735

 

Adjustments to reconcile net income to cash provided by operating activities Depreciation

 

7,743

 

 

8,454

 

 

8,887

 

 

33,303

 

 

35,203

 

Amortization of intangible assets

 

208

 

 

208

 

 

543

 

 

1,279

 

 

2,173

 

Loss on disposal of property and equipment

 

24

 

 

208

 

 

14

 

 

240

 

 

100

 

Stock-based compensation expense

 

9,289

 

 

8,338

 

 

7,503

 

 

35,076

 

 

28,528

 

Accretion of discount on marketable securities

 

(385

)

 

(343

)

 

(497

)

 

(1,637

)

 

(351

)

Deferred income taxes

 

336

 

 

(5,206

)

 

705

 

 

(8,352

)

 

(9,247

)

Increase (decrease) in accounts receivable allowance for credit losses

 

214

 

 

(785

)

 

-

 

 

(245

)

 

(454

)

Change in operating assets and liabilities: Accounts receivable

 

(10,752

)

 

523

 

 

13,865

 

 

(12,253

)

 

6,616

 

Inventories

 

2,068

 

 

2,204

 

 

(12,918

)

 

(2,448

)

 

(27,744

)

Prepaid expenses and other assets

 

(1,613

)

 

3,542

 

 

(346

)

 

4,001

 

 

(1,183

)

Accounts payable

 

1,540

 

 

2,031

 

 

(2,553

)

 

3,454

 

 

(5,435

)

Taxes payable and other accrued liabilities

 

(3,086

)

 

(546

)

 

(13,207

)

 

(3,471

)

 

(18,182

)

Net cash provided by operating activities

 

14,726

 

 

32,919

 

 

16,267

 

 

81,181

 

 

65,759

 

  CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property and equipment

 

(3,045

)

 

(5,731

)

 

(6,143

)

 

(17,286

)

 

(20,884

)

Purchases of marketable securities

 

(8,135

)

 

(19,751

)

 

(18,196

)

 

(105,716

)

 

(191,211

)

Proceeds from sales and maturities of marketable securities

 

2,796

 

 

18,414

 

 

36,045

 

 

106,602

 

 

197,942

 

Acquisition

 

-

 

 

(9,520

)

 

-

 

 

(9,520

)

 

-

 

Net cash provided by (used in) investing activities

 

(8,384

)

 

(16,588

)

 

11,706

 

 

(25,920

)

 

(14,153

)

  CASH FLOWS FROM FINANCING ACTIVITIES: Net proceeds from issuance of common stock

 

-

 

 

3,009

 

 

-

 

 

5,700

 

 

6,237

 

Repurchase of common stock

 

(1,902

)

 

-

 

 

(47,444

)

 

(27,881

)

 

(55,278

)

Payments of dividends to stockholders

 

(11,937

)

 

(11,364

)

 

(11,343

)

 

(46,037

)

 

(44,008

)

Net cash used in financing activities

 

(13,839

)

 

(8,355

)

 

(58,787

)

 

(68,218

)

 

(93,049

)

  NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

 

(7,497

)

 

7,976

 

 

(30,814

)

 

(12,957

)

 

(41,443

)

  CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD

 

58,469

 

 

50,493

 

 

94,743

 

 

63,929

 

 

105,372

 

  CASH AND CASH EQUIVALENTS AT END OF PERIOD

$

50,972

 

$

58,469

 

$

63,929

 

$

50,972

 

$

63,929

 

 

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250206282925/en/

Joe Shiffler Power Integrations, Inc. (408) 414-8528 joe@power.com