Power Integrations, Inc. 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."