Power Integrations announced financial results for the quarter ended March 31, 2017. Results are calculated using the "sell-in" method of revenue recognition on sales to distributors, reflecting the company's adoption of ASC 606 effective January 1, 2017. Prior-period results have been recast as if ASC 606 had been in effect for those periods.
Net revenues for the first quarter were $104.7 million, an increase of two percent from the prior quarter, and an increase of 19 percent from the first quarter of 2016. Net income was $14.1 million or $0.47 per diluted share, compared to $0.48 per diluted share in the prior quarter and $0.35 per diluted share in the first quarter of 2016.
In addition to its GAAP results, the company provided certain non-GAAP financial measures that exclude stock-based compensation expenses, amortization of intangible assets and the tax effects of these items. Non-GAAP net income for the first quarter was $19.1 million or $0.63 per diluted share, compared with $0.70 per diluted share in the prior quarter and $0.55 per diluted share in the first quarter of 2016.
Commented Balu Balakrishnan, president and CEO of Power Integrations: “We are off to a strong start in 2017 with 19 percent revenue growth in the first quarter. Our growth is being fueled by innovative products such as our InnoSwitchâ„¢ ICs, and by multi-year secular trends such as energy-efficiency, faster charging for mobile devices, smarter homes and appliances, LED lighting, renewable energy, and the growing use of battery power in transportation, power tools and other applications. We also have a robust pipeline of new products coming to market over the next several quarters, which we believe will further enhance our competitive positioning and expand our addressable market.â€
Power Integrations paid a dividend of $0.14 per share on March 31, 2017. A dividend of $0.14 per share is scheduled to be paid on June 30, 2017, to stockholders of record as of May 31, 2017.
The company issued the following forecast for the second quarter of 2017: Revenues are expected to be $107 million plus or minus $3 million. GAAP gross margin is expected to be between 48.8 percent and 49.3 percent; non-GAAP gross margin is expected to be between 50 percent and 50.5 percent. (The difference between the expected GAAP and non-GAAP gross margins is composed of approximately 0.9 percentage points from amortization of acquisition-related intangible assets and 0.3 percentage points from stock-based compensation.) GAAP operating expenses are expected to be approximately $39 million; non-GAAP operating expenses are expected to be approximately $33.5 million. (Non-GAAP expenses are expected to exclude approximately $5 million of stock-based compensation expenses and $0.5 million of amortization of acquisition-related intangible assets.)
