Power Integrations today announced financial results for the quarter ended June 30, 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-year results have been recast as if ASC 606 had been in effect for those periods.
Net revenues for the second quarter were $107.6 million, an increase of three percent from the prior quarter and ten percent from the second quarter of 2016. Net income was $13.9 million or $0.46 per diluted share, compared to $0.47 per diluted share in the prior quarter and $0.39 per diluted share in the second quarter of 2016. Cash flow from operations was $24.1 million for the quarter.
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 second quarter was $21.1 million or $0.69 per diluted share, compared with $0.63 per diluted share in the prior quarter and $0.61 per diluted share in the second quarter of 2016.
Commented Balu Balakrishnan, president and CEO of Power Integrations: "Quarterly revenues grew ten percent from a year ago, and we believe we are on track for another year of double-digit revenue growth. We are excited about the breadth and diversity of growth opportunities across our business, such as expanding electronic content in consumer appliances, IoT applications, faster charging for mobile devices, LED lighting, electric transportation, renewable energy, high-voltage DC transmission and more. We are attacking these opportunities with our most innovative products ever, and we have a robust pipeline of new products that will further expand our addressable market in the years to come."
Additional highlights include:
- Power Integrations paid a dividend of $0.14 per share on June 30, 2017. A dividend of $0.14 per share is scheduled to be paid on September 29, 2017, to stockholders of record as of August 31, 2017.
- Power Integrations' board of directors has expanded the company's share-repurchase authorization by $30 million; the company now has $53.6 million available for the repurchase of its common stock.
- Power Integrations was issued 15 U.S. patents during the second quarter of 2017.
The company issued the following forecast for the third quarter of 2017:
- Revenues are expected to be $111 million plus or minus $3 million.
- GAAP gross margin is expected to be approximately 49.3 percent; non-GAAP gross margin is expected to be approximately 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 $39.5 million; non-GAAP operating expenses are expected to be approximately $33 million. (Non-GAAP expenses are expected to exclude approximately $6 million of stock-based compensation expenses and $0.5 million of amortization of acquisition-related intangible assets.)