SAN JOSE, Calif.- Power Integrations announced financial results for the quarter ended September 30, 2022. Net revenues for the third quarter were $160.2 million, down 13 percent compared to the prior quarter and down nine percent from the third quarter of 2021. Net income for the third quarter was $46.0 million or $0.80 per diluted share compared to $0.96 per diluted share in the prior quarter and $0.69 per diluted share in the third quarter of 2021. Cash flow from operations for the third quarter was $49.8 million.
In addition to its GAAP results, the company provided certain non-GAAP measures that exclude stock-based compensation, amortization of acquisition-related intangible assets, net other operating expenses of $1.1 million in the second quarter of 2022 stemming from a patent-litigation settlement and an offsetting recovery from the liquidation of SemiSouth Laboratories, and the tax effects of these items. Non-GAAP net income for the third quarter of 2022 was $48.3 million or $0.84 per diluted share compared with $1.03 per diluted share in the prior quarter and $0.84 per diluted share in the third quarter of 2021. A reconciliation of GAAP to non-GAAP financial results is included with the tables accompanying this press release.
Commented Balu Balakrishnan, president and CEO of Power Integrations: “Demand has continued to weaken, particularly in appliances and other consumer applications, and inventories have accumulated in the supply chain. While our near-term revenue outlook is therefore muted, we continue to gain market share across a broad set of end markets while making excellent progress on growth initiatives like automotive, motor drive, and our proprietary GaN technology. Our board of directors has committed $100 million to share repurchases, reflecting our strong balance sheet and our high level of confidence in our long-term growth prospects.”
Additional Highlights
- Power Integrations’ board of directors has authorized the use of $100 million for the repurchase of the company’s common stock, subject to pre-determined price/volume thresholds. The authorization does not have an expiration date.
- The company paid a dividend of $0.18 per share on September 30, 2022. A dividend of $0.18 per share is to be paid on December 30, 2022, to stockholders of record as of November 30, 2022.
Financial Outlook
The company issued the following forecast for the fourth quarter of 2022:
- Revenues are expected to be $125 million plus or minus $5 million.
- GAAP gross margin is expected to be between 55.5 percent and 56 percent. Non-GAAP gross margin is expected to be between 56 percent and 56.5 percent. The difference between GAAP and non-GAAP gross margins is approximately equally attributable to stock-based compensation and amortization of acquisition-related intangible assets.
- GAAP operating expenses are expected to be between $49.5 million and $50 million; non-GAAP operating expenses are expected to be between $42 million and $42.5 million. Non-GAAP expenses are expected to exclude approximately $7.5 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. Members of the investment community can register for the call by visiting the following link: https://conferencingportals.com/event/iobnvsok. A live webcast of the call will also be available on the investor section of the company’s website, http://investors.power.com.
