Power Integrations, Inc. announced financial results for the quarter ended March 31, 2015. Net revenues for the first quarter were $82.6 million, down five percent from the prior quarter and one percent from the first quarter of 2014. GAAP gross margin for the first quarter was 51.2 percent; operating margin was 8.4 percent. Net income for the quarter was $6.3 million or $0.21 per diluted share, compared with $0.48 per diluted share in the prior quarter and $0.40 per diluted share in the first quarter of 2014.
In addition to its GAAP results, the company provided non-GAAP financial measures that exclude stock-based compensation expenses, acquisition-related expenses and the related tax effects of these items. Non-GAAP gross margin for the first quarter was 53.1 percent; operating margin was 17.1 percent. Non-GAAP net income for the quarter was $13.0 million or $0.43 per diluted share, compared with $0.59 per diluted share in the prior quarter and $0.56 per diluted share in the first quarter of 2014.
Commented Balu Balakrishnan, president and CEO of Power Integrations: “First-quarter revenues were within the expected range, albeit toward the lower end, largely reflecting continued softness in the desktop PC market. While the overall demand environment appears somewhat mixed, we expect growth in key focus areas in the months ahead, including rapid-charging and high-power applications. Notably, shipments increased nearly ten percent sequentially in the first quarter in anticipation of stronger demand through the distribution channel. All in all, we expect second-quarter revenues to increase sequentially by five to ten percent.â€
The company paid a dividend of $0.12 per share on March 31. A dividend of $0.12 per share is scheduled to be paid on June 30, 2015, to stockholders of record as of May 29. Power Integrations had $173.2 million in cash and short-term marketable securities at quarter-end, a decrease of $2.1 million during the quarter. Cash flow from operations in the quarter was $17.7 million.
The company issued the following forecast for the second quarter of 2015: Revenues are expected to increase by five to ten percent compared to the first quarter. Non-GAAP gross margin is expected to be between 52.5 percent and 53 percent. (Excludes $0.3 million of stock-based compensation and $1 million of amortization of acquisition-related intangibles.) GAAP gross margin is expected to be between 51 percent and 51.5 percent. Non-GAAP operating expenses are expected to be between $31.5 million and $32 million. (Excludes approximately $4.3 million of stock-based compensation and $0.7 million of amortization of acquisition-related intangibles.) GAAP operating expenses are expected to be between $36.5 million and $37 million.
