[July 29, 2014] |
|
Power Integrations Reports Second-Quarter Financial Results
SAN JOSE, Calif. --(Business Wire)--
Power Integrations (Nasdaq:POWI)
today announced financial results for the quarter ended June 30, 2014.
Net revenues for the quarter were $89.0 million, up seven percent from
the prior quarter and up one percent from the second quarter of 2013.
GAAP gross margin for the second quarter was 54.8 percent; operating
margin was 16.1 percent. GAAP net income for the quarter was $16.7
million or $0.54 per diluted share, compared with $0.40 per diluted
share in the prior quarter and $0.45 per diluted share in the second
quarter of 2013. GAAP net income for the second quarter included a tax
benefit of $3.3 million stemming from the completion of the company's
tax audit for years 2007 - 2009.
In addition to its GAAP results, the company provided non-GAAP financial
measures that exclude stock-based compensation expenses,
acquisition-related amortization expenses, a 2013 gain related to asset
sales, the tax effects of these items, and the above-mentioned tax
benefit. Non-GAAP gross margin for the quarter was 55.8 percent;
non-GAAP operating margin was 22.4 percent. Non-GAAP net income for the
quarter was $18.9 million or $0.61 per diluted share, compared with
$0.56 per diluted share in the prior quarter and $0.61 per diluted share
in the second quarter of 2013.
Commented Balu Balakrishnan, president and CEO of Power Integrations:
"Our second-quarter results were on-target, with seven-percent
sequential revenue growth, healthy profit margins and strong cash flow.
We repurchased more than $25 million worth of our stock during the
quarter at an average price of less than $50 per share, and our
quarterly dividend is set to increase by 20 percent in the third
quarter. We are excited about the second half of 2014 as we ramp new
products and continue to cultivate growth opportunities like rapid
charging, LED lighting and high-power applications."
Additional Highlights
-
Cash flow from operations in the second quarter was $26.2 million;
cash and investments totaled $212.4 million at quarter-end.
-
Power Integrations repurchased approximately 516,000 shares of its
common stock during the quarter for $25.7 million. As of June 30,
2014, the company had approximately $53.8 million remaining on its
repurchase authorization.
-
The company paid a dividend of $0.10 per share on June 30, 2014. A
dividend of $0.12 per share is to be paid on September 30, 2014, to
stockholders of record as of August 29, 2014.
-
The company received 19 U.S. patents during the quarter and had 645
U.S. patents at quarter-end.
Financial Outlook
The company issued the following forecast for the third quarter of 2014:
-
Third-quarter revenues are expected to be between $92 million and $97
million.
-
Non-GAAP gross margin is expected to be between 55 percent and 55.5
percent. (Excludes approximately $0.3 million of stock-based
compensation and $0.6 million of amortization of acquisition-related
intangibles.) GAAP gross margin is expected to be between 54 percent
and 54.5 percent.
-
Operating expenses (GAAP and non-GAAP) are expected to be flat to
slightly lower compared with the second quarter.
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 1-647-788-4901. 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, amortization of
acquisition-related intangible assets, a 2013 gain related to asset
sales, the tax effects of these items, and a tax benefit recognized in
the second quarter of 2014. 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 relating to the company's projected
third-quarter financial performance and growth opportunities for the
second half of 2014 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; and 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. 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 May 5, 2014. 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
|
|
Six Months Ended
|
|
|
|
|
June 30, 2014
|
|
March 31, 2014
|
|
June 30, 2013
|
|
June 30, 2014
|
|
June 30, 2013
|
NET REVENUES
|
|
$
|
88,985
|
|
|
$
|
83,073
|
|
|
$
|
87,922
|
|
|
$
|
172,058
|
|
|
$
|
164,962
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COST OF REVENUES
|
|
|
40,249
|
|
|
|
37,096
|
|
|
|
41,715
|
|
|
|
77,345
|
|
|
|
78,891
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GROSS PROFIT
|
|
|
48,736
|
|
|
|
45,977
|
|
|
|
46,207
|
|
|
|
94,713
|
|
|
|
86,071
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
|
14,366
|
|
|
|
13,490
|
|
|
|
13,489
|
|
|
|
27,856
|
|
|
|
25,761
|
|
Sales and marketing
|
|
|
11,434
|
|
|
|
10,975
|
|
|
|
10,242
|
|
|
|
22,409
|
|
|
|
19,901
|
|
General and administrative
|
|
|
7,813
|
|
|
|
7,646
|
|
|
|
8,066
|
|
|
|
15,459
|
|
|
|
15,800
|
|
Amortization of acquisition-related intangible assets
|
|
|
798
|
|
|
|
1,135
|
|
|
|
1,122
|
|
|
|
1,933
|
|
|
|
2,244
|
|
|
|
Total operating expenses
|
|
|
34,411
|
|
|
|
33,246
|
|
|
|
32,919
|
|
|
|
67,657
|
|
|
|
63,706
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME FROM OPERATIONS
|
|
|
14,325
|
|
|
|
12,731
|
|
|
|
13,288
|
|
|
|
27,056
|
|
|
|
22,365
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on sale of assets held for sale
|
|
|
-
|
|
|
|
-
|
|
|
|
497
|
|
|
|
-
|
|
|
|
497
|
|
Other income (expense), net
|
|
|
198
|
|
|
|
257
|
|
|
|
68
|
|
|
|
455
|
|
|
|
285
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME BEFORE PROVISION (BENEFIT) FOR INCOME TAXES
|
|
|
14,523
|
|
|
|
12,988
|
|
|
|
13,853
|
|
|
|
27,511
|
|
|
|
23,147
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PROVISION (BENEFIT) FOR INCOME TAXES
|
|
|
(2,193
|
)
|
|
|
625
|
|
|
|
181
|
|
|
|
(1,568
|
)
|
|
|
(1,428
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME
|
|
$
|
16,716
|
|
|
$
|
12,363
|
|
|
$
|
13,672
|
|
|
$
|
29,079
|
|
|
$
|
24,575
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER SHARE:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.55
|
|
|
$
|
0.41
|
|
|
$
|
0.47
|
|
|
$
|
0.96
|
|
|
$
|
0.85
|
|
|
|
Diluted
|
|
$
|
0.54
|
|
|
$
|
0.40
|
|
|
$
|
0.45
|
|
|
$
|
0.93
|
|
|
$
|
0.82
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SHARES USED IN PER-SHARE CALCULATION:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
30,310
|
|
|
|
30,239
|
|
|
|
29,178
|
|
|
|
30,275
|
|
|
|
28,967
|
|
|
|
Diluted
|
|
|
31,110
|
|
|
|
31,167
|
|
|
|
30,158
|
|
|
|
31,150
|
|
|
|
29,977
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL INFORMATION:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation expenses included in:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues
|
|
$
|
298
|
|
|
$
|
219
|
|
|
$
|
264
|
|
|
$
|
517
|
|
|
$
|
528
|
|
|
|
Research and development
|
|
|
1,339
|
|
|
|
1,212
|
|
|
|
1,640
|
|
|
|
2,551
|
|
|
|
2,746
|
|
|
|
Sales and marketing
|
|
|
864
|
|
|
|
935
|
|
|
|
795
|
|
|
|
1,799
|
|
|
|
1,624
|
|
|
|
General and administrative
|
|
|
1,674
|
|
|
|
1,549
|
|
|
|
1,629
|
|
|
|
3,223
|
|
|
|
3,066
|
|
|
|
Total stock-based compensation expense
|
|
$
|
4,175
|
|
|
$
|
3,915
|
|
|
$
|
4,328
|
|
|
$
|
8,090
|
|
|
$
|
7,964
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues includes:
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of acquisition-related intangible assets
|
|
$
|
645
|
|
|
$
|
645
|
|
|
$
|
645
|
|
|
$
|
1,290
|
|
|
$
|
1,290
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses include:
|
|
|
|
|
|
|
|
|
|
|
|
|
Patent-litigation expenses
|
|
$
|
1,127
|
|
|
$
|
1,186
|
|
|
$
|
807
|
|
|
$
|
2,313
|
|
|
$
|
2,206
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REVENUE MIX BY END MARKET
|
|
|
|
|
|
|
|
|
|
|
|
|
Communications
|
|
|
15
|
%
|
|
|
18
|
%
|
|
|
21
|
%
|
|
|
17
|
%
|
|
|
21
|
%
|
|
|
Computer
|
|
|
12
|
%
|
|
|
10
|
%
|
|
|
10
|
%
|
|
|
11
|
%
|
|
|
10
|
%
|
|
|
Consumer
|
|
|
38
|
%
|
|
|
37
|
%
|
|
|
34
|
%
|
|
|
37
|
%
|
|
|
35
|
%
|
|
|
Industrial
|
|
|
35
|
%
|
|
|
35
|
%
|
|
|
35
|
%
|
|
|
35
|
%
|
|
|
34
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, 2014
|
|
March 31, 2014
|
|
June 30, 2013
|
|
June 30, 2014
|
|
June 30, 2013
|
RECONCILIATION OF GROSS PROFIT
|
|
|
|
|
|
|
|
|
|
|
GAAP gross profit
|
|
$
|
48,736
|
|
|
$
|
45,977
|
|
|
$
|
46,207
|
|
|
$
|
94,713
|
|
|
$
|
86,071
|
|
|
|
GAAP gross profit margin
|
|
|
54.8
|
%
|
|
|
55.3
|
%
|
|
|
52.6
|
%
|
|
|
55.0
|
%
|
|
|
52.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation included in cost of revenues
|
|
|
298
|
|
|
|
219
|
|
|
|
264
|
|
|
|
517
|
|
|
|
528
|
|
Amortization of acquisition-related intangible assets
|
|
|
645
|
|
|
|
645
|
|
|
|
645
|
|
|
|
1,290
|
|
|
|
1,290
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP gross profit
|
|
$
|
49,679
|
|
|
$
|
46,841
|
|
|
$
|
47,116
|
|
|
$
|
96,520
|
|
|
$
|
87,889
|
|
|
|
Non-GAAP gross profit margin
|
|
|
55.8
|
%
|
|
|
56.4
|
%
|
|
|
53.6
|
%
|
|
|
56.1
|
%
|
|
|
53.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF OPERATING EXPENSES
|
|
|
|
|
|
|
|
|
|
|
GAAP operating expenses
|
|
$
|
34,411
|
|
|
$
|
33,246
|
|
|
$
|
32,919
|
|
|
$
|
67,657
|
|
|
$
|
63,706
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less:
|
|
Stock-based compensation expense included in operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
|
1,339
|
|
|
|
1,212
|
|
|
|
1,640
|
|
|
|
2,551
|
|
|
|
2,746
|
|
|
|
|
|
Sales and marketing
|
|
|
864
|
|
|
|
935
|
|
|
|
795
|
|
|
|
1,799
|
|
|
|
1,624
|
|
|
|
|
|
General and administrative
|
|
|
1,674
|
|
|
|
1,549
|
|
|
|
1,629
|
|
|
|
3,223
|
|
|
|
3,066
|
|
|
|
|
|
Total
|
|
|
3,877
|
|
|
|
3,696
|
|
|
|
4,064
|
|
|
|
7,573
|
|
|
|
7,436
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of acquisition-related intangible assets
|
|
|
798
|
|
|
|
1,135
|
|
|
|
1,122
|
|
|
|
1,933
|
|
|
|
2,244
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP operating expenses
|
|
$
|
29,736
|
|
|
$
|
28,415
|
|
|
$
|
27,733
|
|
|
$
|
58,151
|
|
|
$
|
54,026
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF INCOME FROM OPERATIONS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
14,325
|
|
|
$
|
12,731
|
|
|
$
|
13,288
|
|
|
$
|
27,056
|
|
|
$
|
22,365
|
|
|
|
GAAP operating margin
|
|
|
16.1
|
%
|
|
|
15.3
|
%
|
|
|
15.1
|
%
|
|
|
15.7
|
%
|
|
|
13.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add:
|
|
Total stock-based compensation
|
|
|
4,175
|
|
|
|
3,915
|
|
|
|
4,328
|
|
|
|
8,090
|
|
|
|
7,964
|
|
|
|
Amortization of acquisition-related intangible assets
|
|
|
1,443
|
|
|
|
1,780
|
|
|
|
1,767
|
|
|
|
3,223
|
|
|
|
3,534
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP income from operations
|
|
$
|
19,943
|
|
|
$
|
18,426
|
|
|
$
|
19,383
|
|
|
$
|
38,369
|
|
|
$
|
33,863
|
|
|
|
Non-GAAP operating margin
|
|
|
22.4
|
%
|
|
|
22.2
|
%
|
|
|
22.0
|
%
|
|
|
22.3
|
%
|
|
|
20.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF PROVISION (BENEFIT) FOR INCOME TAXES
|
|
|
|
|
|
|
|
|
|
GAAP provision (benefit) for income taxes
|
|
$
|
(2,193
|
)
|
|
$
|
625
|
|
|
$
|
181
|
|
|
$
|
(1,568
|
)
|
|
$
|
(1,428
|
)
|
|
|
GAAP effective tax rate
|
|
|
-15.1
|
%
|
|
|
4.8
|
%
|
|
|
1.3
|
%
|
|
|
-5.7
|
%
|
|
|
-6.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Benefit associated with tax settlement
|
|
|
(3,331
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
(3,331
|
)
|
|
|
-
|
|
Tax effect of other adjustments to GAAP results
|
|
|
(115
|
)
|
|
|
(548
|
)
|
|
|
(802
|
)
|
|
|
(663
|
)
|
|
|
(3,097
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP provision for income taxes
|
|
$
|
1,253
|
|
|
$
|
1,173
|
|
|
$
|
983
|
|
|
$
|
2,426
|
|
|
$
|
1,669
|
|
|
|
Non-GAAP effective tax rate
|
|
|
6.2
|
%
|
|
|
6.3
|
%
|
|
|
5.1
|
%
|
|
|
6.2
|
%
|
|
|
4.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF NET INCOME PER SHARE (DILUTED)
|
|
|
|
|
|
|
|
|
|
GAAP net income
|
|
$
|
16,716
|
|
|
$
|
12,363
|
|
|
$
|
13,672
|
|
|
$
|
29,079
|
|
|
$
|
24,575
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments to GAAP net income
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation
|
|
|
4,175
|
|
|
|
3,915
|
|
|
|
4,328
|
|
|
|
8,090
|
|
|
|
7,964
|
|
|
|
Amortization of acquisition-related intangible assets
|
|
|
1,443
|
|
|
|
1,780
|
|
|
|
1,767
|
|
|
|
3,223
|
|
|
|
3,534
|
|
|
|
Gain on sale of assets held for sale
|
|
|
-
|
|
|
|
-
|
|
|
|
(497
|
)
|
|
|
-
|
|
|
|
(497
|
)
|
|
|
Benefit associated with tax settlement
|
|
|
(3,331
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
(3,331
|
)
|
|
|
-
|
|
|
|
Tax effect of items excluded from non-GAAP results
|
|
|
(115
|
)
|
|
|
(548
|
)
|
|
|
(802
|
)
|
|
|
(663
|
)
|
|
|
(3,097
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income
|
|
$
|
18,888
|
|
|
$
|
17,510
|
|
|
$
|
18,468
|
|
|
$
|
36,398
|
|
|
$
|
32,479
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average shares outstanding for calculation of non-GAAP income per
share (diluted)
|
|
|
31,110
|
|
|
|
31,167
|
|
|
|
30,158
|
|
|
|
31,150
|
|
|
|
29,977
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income per share (diluted)
|
|
$
|
0.61
|
|
|
$
|
0.56
|
|
|
$
|
0.61
|
|
|
$
|
1.17
|
|
|
$
|
1.08
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP income per share
|
|
$
|
0.54
|
|
|
$
|
0.40
|
|
|
$
|
0.45
|
|
|
$
|
0.93
|
|
|
$
|
0.82
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
POWER INTEGRATIONS, INC.
|
CONSOLIDATED BALANCE SHEETS
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2014
|
|
March 31, 2014
|
|
December 31, 2013
|
ASSETS
|
|
|
|
|
|
|
|
|
CURRENT ASSETS:
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
79,060
|
|
|
$
|
83,967
|
|
|
$
|
92,928
|
|
|
|
Short-term marketable securities
|
|
|
133,354
|
|
|
|
133,684
|
|
|
|
109,179
|
|
|
|
Accounts receivable
|
|
|
16,443
|
|
|
|
16,421
|
|
|
|
12,389
|
|
|
|
Inventories
|
|
|
51,269
|
|
|
|
47,934
|
|
|
|
42,235
|
|
|
|
Deferred tax assets
|
|
|
2,011
|
|
|
|
2,059
|
|
|
|
2,059
|
|
|
|
Prepaid expenses and other current assets
|
|
|
13,590
|
|
|
|
17,027
|
|
|
|
18,632
|
|
|
|
Total current assets
|
|
|
295,727
|
|
|
|
301,092
|
|
|
|
277,422
|
|
|
|
|
|
|
|
|
|
|
|
|
PROPERTY AND EQUIPMENT, net
|
|
|
91,368
|
|
|
|
92,142
|
|
|
|
90,141
|
|
|
|
INTANGIBLE ASSETS, net
|
|
|
36,960
|
|
|
|
38,478
|
|
|
|
40,334
|
|
|
|
GOODWILL
|
|
|
80,599
|
|
|
|
80,599
|
|
|
|
80,599
|
|
|
|
DEFERRED TAX ASSETS
|
|
|
8,904
|
|
|
|
5,686
|
|
|
|
9,449
|
|
|
|
OTHER ASSETS
|
|
|
4,031
|
|
|
|
3,332
|
|
|
|
3,476
|
|
|
|
Total assets
|
|
$
|
517,589
|
|
|
$
|
521,329
|
|
|
$
|
501,421
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
CURRENT LIABILITIES:
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
$
|
22,802
|
|
|
$
|
23,600
|
|
|
$
|
20,772
|
|
|
|
Accrued payroll and related expenses
|
|
|
8,786
|
|
|
|
8,046
|
|
|
|
8,900
|
|
|
|
Taxes payable
|
|
|
2,054
|
|
|
|
1,768
|
|
|
|
2,266
|
|
|
|
Deferred taxes
|
|
|
1,110
|
|
|
|
1,325
|
|
|
|
943
|
|
|
|
Deferred income on sales to distributors
|
|
|
19,128
|
|
|
|
17,844
|
|
|
|
15,727
|
|
|
|
Other accrued liabilities
|
|
|
1,701
|
|
|
|
1,698
|
|
|
|
1,810
|
|
|
|
Total current liabilities
|
|
|
55,581
|
|
|
|
54,281
|
|
|
|
50,418
|
|
|
|
|
|
|
|
|
|
|
|
|
LONG-TERM LIABILITIES
|
|
|
|
|
|
|
|
|
Income taxes payable
|
|
|
2,397
|
|
|
|
2,612
|
|
|
|
6,885
|
|
|
|
Deferred taxes
|
|
|
4,647
|
|
|
|
4,991
|
|
|
|
5,273
|
|
|
|
Other liabilities
|
|
|
2,301
|
|
|
|
2,267
|
|
|
|
2,159
|
|
|
|
Total liabilities
|
|
|
64,926
|
|
|
|
64,151
|
|
|
|
64,735
|
|
|
|
|
|
|
|
|
|
|
STOCKHOLDERS' EQUITY:
|
|
|
|
|
|
|
|
|
Common stock
|
|
|
30
|
|
|
|
30
|
|
|
|
30
|
|
|
|
Additional paid-in capital
|
|
|
216,337
|
|
|
|
234,667
|
|
|
|
223,660
|
|
|
|
Accumulated other comprehensive loss
|
|
|
(190
|
)
|
|
|
(315
|
)
|
|
|
(470
|
)
|
|
|
Retained earnings
|
|
|
236,486
|
|
|
|
222,796
|
|
|
|
213,466
|
|
|
|
Total stockholders' equity
|
|
|
452,663
|
|
|
|
457,178
|
|
|
|
436,686
|
|
|
|
Total liabilities and stockholders' equity
|
|
$
|
517,589
|
|
|
$
|
521,329
|
|
|
$
|
501,421
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
POWER INTEGRATIONS, INC.
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
|
|
June 30, 2014
|
|
March 31, 2014
|
|
June 30, 2013
|
|
June 30, 2014
|
|
June 30, 2013
|
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
16,716
|
|
|
$
|
12,363
|
|
|
$
|
13,672
|
|
|
$
|
29,079
|
|
|
$
|
24,575
|
|
|
|
Adjustments to reconcile net income to cash provided by operating
activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
|
3,876
|
|
|
|
3,971
|
|
|
|
3,993
|
|
|
|
7,847
|
|
|
|
7,968
|
|
|
|
Amortization of intangible assets
|
|
|
1,518
|
|
|
|
1,856
|
|
|
|
1,842
|
|
|
|
3,374
|
|
|
|
3,684
|
|
|
|
Gain on disposal of property and equipment
|
|
|
-
|
|
|
|
159
|
|
|
|
17
|
|
|
|
159
|
|
|
|
17
|
|
|
|
Gain on sale of assets held for sale
|
|
|
-
|
|
|
|
-
|
|
|
|
(497
|
)
|
|
|
-
|
|
|
|
(497
|
)
|
|
|
Stock-based compensation expense
|
|
|
4,175
|
|
|
|
3,915
|
|
|
|
4,328
|
|
|
|
8,090
|
|
|
|
7,964
|
|
|
|
Amortization of premium on marketable securities
|
|
|
421
|
|
|
|
394
|
|
|
|
147
|
|
|
|
815
|
|
|
|
251
|
|
|
|
Deferred income taxes
|
|
|
(3,729
|
)
|
|
|
3,864
|
|
|
|
848
|
|
|
|
135
|
|
|
|
(2,388
|
)
|
|
|
Decrease in accounts receivable allowances
|
|
|
-
|
|
|
|
(15
|
)
|
|
|
(133
|
)
|
|
|
(15
|
)
|
|
|
(153
|
)
|
|
|
Excess tax benefit from employee stock plans
|
|
|
(213
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
(213
|
)
|
|
|
-
|
|
|
|
Tax benefit associated with employee stock plans
|
|
|
364
|
|
|
|
-
|
|
|
|
-
|
|
|
|
364
|
|
|
|
-
|
|
|
|
Change in operating assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
(22
|
)
|
|
|
(4,017
|
)
|
|
|
(901
|
)
|
|
|
(4,039
|
)
|
|
|
(8,294
|
)
|
|
|
Inventories
|
|
|
(3,294
|
)
|
|
|
(5,652
|
)
|
|
|
528
|
|
|
|
(8,946
|
)
|
|
|
1,421
|
|
|
|
Prepaid expenses and other assets
|
|
|
3,475
|
|
|
|
1,825
|
|
|
|
1,270
|
|
|
|
5,300
|
|
|
|
5,198
|
|
|
|
Accounts payable
|
|
|
782
|
|
|
|
1,088
|
|
|
|
625
|
|
|
|
1,870
|
|
|
|
3,457
|
|
|
|
Taxes payable and other accrued liabilities
|
|
|
881
|
|
|
|
(5,624
|
)
|
|
|
(1,652
|
)
|
|
|
(4,743
|
)
|
|
|
(480
|
)
|
|
|
Deferred income on sales to distributors
|
|
|
1,285
|
|
|
|
2,116
|
|
|
|
548
|
|
|
|
3,401
|
|
|
|
3,484
|
|
|
|
Net cash provided by operating activities
|
|
|
26,235
|
|
|
|
16,243
|
|
|
|
24,635
|
|
|
|
42,478
|
|
|
|
46,207
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchases of property and equipment
|
|
|
(5,420
|
)
|
|
|
(4,465
|
)
|
|
|
(2,942
|
)
|
|
|
(9,885
|
)
|
|
|
(6,892
|
)
|
|
|
Proceeds from sale of property and equipment
|
|
|
-
|
|
|
|
-
|
|
|
|
36
|
|
|
|
-
|
|
|
|
36
|
|
|
|
Proceeds from sale of assets held for sale
|
|
|
-
|
|
|
|
-
|
|
|
|
959
|
|
|
|
-
|
|
|
|
959
|
|
|
|
Purchases of marketable securities
|
|
|
-
|
|
|
|
(24,751
|
)
|
|
|
(25,801
|
)
|
|
|
(24,751
|
)
|
|
|
(45,223
|
)
|
|
|
Proceeds from maturities of marketable securities
|
|
|
-
|
|
|
|
-
|
|
|
|
15,350
|
|
|
|
-
|
|
|
|
16,850
|
|
|
|
Net cash used in investing activities
|
|
|
(5,420
|
)
|
|
|
(29,216
|
)
|
|
|
(12,398
|
)
|
|
|
(34,636
|
)
|
|
|
(34,270
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
Net proceeds from issuance of common stock
|
|
|
2,822
|
|
|
|
7,045
|
|
|
|
6,044
|
|
|
|
9,867
|
|
|
|
14,749
|
|
|
|
Repurchase of common stock
|
|
|
(25,731
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
(25,731
|
)
|
|
|
-
|
|
|
|
Payments of dividends to stockholders
|
|
|
(3,026
|
)
|
|
|
(3,033
|
)
|
|
|
(2,344
|
)
|
|
|
(6,059
|
)
|
|
|
(4,654
|
)
|
|
|
Excess tax benefit from employee stock plans
|
|
|
213
|
|
|
|
-
|
|
|
|
-
|
|
|
|
213
|
|
|
|
-
|
|
|
|
Net cash provided by (used in) financing activities
|
|
|
(25,722
|
)
|
|
|
4,012
|
|
|
|
3,700
|
|
|
|
(21,710
|
)
|
|
|
10,095
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
|
|
|
(4,907
|
)
|
|
|
(8,961
|
)
|
|
|
15,937
|
|
|
|
(13,868
|
)
|
|
|
22,032
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
|
|
|
83,967
|
|
|
|
92,928
|
|
|
|
69,489
|
|
|
|
92,928
|
|
|
|
63,394
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH AND CASH EQUIVALENTS AT END OF PERIOD
|
|
$
|
79,060
|
|
|
$
|
83,967
|
|
|
$
|
85,426
|
|
|
$
|
79,060
|
|
|
$
|
85,426
|
|
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