Power Integrations posted financial results for the quarter that ended March 31, 2019. Net revenues for the first quarter were $89.2 million, down 4% from the prior quarter and down 13% from the first quarter of 2018.
Net income was $7.2 million or $0.25 per diluted share compared to $0.77 per share in the previous quarter and $0.46 in the first quarter of 2018. (The prior quarter’s results included a tax benefit from the revision of prior estimates of the transition tax from the 2017 U.S. tax legislation.) Cash flow from operations was $1.1 million for the first quarter.
Along with its GAAP results, the company provided certain non-GAAP measures that exclude stock-based compensation, amortization of acquisition-related intangible assets, the tax effects of these items, and the aforementioned tax benefit. Non-GAAP net income for the first quarter of 2019 was $12.1 million or $0.41 per diluted share, compared with $0.54 per diluted share in the previous quarter and $0.67 per diluted share in the first quarter of 2018.
Balu Balakrishnan, president and CEO of Power Integrations, stated, “As expected, our first-quarter results reflect the slowdown being felt across the industry. However, we expect strong sequential growth in the second quarter driven largely by increased demand from fast-charging applications in the smartphone market. With the arrival of USB PD technology, we expect adoption of faster chargers to accelerate as OEMs look for new ways to differentiate their products.”
Power Integrations repurchased about 121,000 shares of its common stock during the first quarter for $7.3 million. At the end of the quarter, $43.9 million remained available in the company’s repurchase authorization.
The company paid a dividend of $0.17 per share on March 29, 2019. A dividend of $0.17 per share will be paid on June 28, 2019 to stockholders of record as of May 31.
Financial Outlook for Second Quarter of 2019
Revenues are projected to be $100 million plus or minus $3 million. GAAP gross margin are forecast to be between 50.5% and 51%. Non-GAAP gross margin is expected to be between 51.5% and 52%. (The difference between the expected GAAP and non-GAAP gross margins is composed of approximately 0.7 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 between $42.5 million and $43 million.
The company expects non-GAAP operating expenses to be between $36 million and $36.5 million.