Power Integrations today 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.”
Cash flow from operations in the second quarter was $26.2 million; cash and investments totaled $212.4 million at quarter-end.
Power Integrations repurchased approximately 516,000 shares of its common stock during the quarter for $25.7 million. As of June 30, 2014, the company had approximately $53.8 million remaining on its repurchase authorization.
The company paid a dividend of $0.10 per share on June 30, 2014. A dividend of $0.12 per share is to be paid on September 30, 2014, to stockholders of record as of August 29, 2014.
The company received 19 U.S. patents during the quarter and had 645 U.S. patents at quarter-end.
Third-quarter revenues are expected to be between $92 million and $97 million.
Non-GAAP gross margin is expected to be between 55 percent and 55.5 percent. (Excludes approximately $0.3 million of stock-based compensation and $0.6 million of amortization of acquisition-related intangibles.) GAAP gross margin is expected to be between 54 percent and 54.5 percent.
Operating expenses (GAAP and non-GAAP) are expected to be flat to slightly lower compared with the second quarter.
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