Power Integrations Releases Strong Financial Results Overview

Power Integrations Reports Financial Performance

Power Integrations (NASDAQ: POWI) has shared its fiscal results from the fourth quarter of the year, showcasing a net revenue of $105.2 million. This reflects a decline of nine percent from the previous quarter, yet represents an impressive increase of 18 percent compared to the same time frame in 2023. The company's GAAP net income for this quarter stood at $9.1 million, translating to $0.16 per diluted share, a decrease from $0.25 in both the prior quarter and fourth quarter of 2023. Operational cash flow reached $14.7 million during this period.

Non-GAAP Results and Yearly Review

Alongside its GAAP results, Power Integrations provided an overview of its non-GAAP financial metrics, which exclude stock-based expenses and intangible assets amortization. The non-GAAP net income for the fourth quarter of 2024 was reported at $17.2 million, or $0.30 per diluted share, down from $0.40 in the previous quarter and up from $0.22 in the fourth quarter of 2023. Over the full year, total net revenues reached $419.0 million, compared to $444.5 million the previous year. The full-year GAAP net income totaled $32.2 million, equating to $0.56 per diluted share, a drop from $0.97 per diluted share in the prior year, while non-GAAP net income fell to $1.16 per diluted share from $1.29.

CEO Insight on Growth Opportunities

Balu Balakrishnan, the chairman and CEO, expressed optimism about future revenue trends, citing a year-over-year revenue increase of 18 percent in the fourth quarter and an expectation for further growth in various sectors in 2025. Sectors such as renewable energy, automotive, appliances, metering, and high-voltage DC transmission are seen as key areas for expansion. He emphasized the role of PowiGaN™ technology, which is expected to drive significant growth due to increasing adoption across high-voltage power-conversion applications.

Financial Highlights and Future Outlook

Noteworthy highlights include a dividend payment of $0.21 per share on December 31, which will be followed by another similar dividend on March 31, 2025. Additionally, the company spent $1.9 million on share repurchases in the fourth quarter, leaving $48.1 million available under its current authorization.

Looking ahead to the first quarter of 2025, Power Integrations anticipates flat revenues compared to the fourth quarter of 2024, with a variability of plus or minus five percent. The GAAP gross margin is projected to be between 55% and 55.5%, while the non-GAAP gross margin is aimed to be in a range from 55.5% to 56%. With these margins, the company expects operating expenses of around $54 million and non-GAAP operating expenses to be about $45 million, after excluding expected stock-based compensation of approximately $9 million.

Engaging Conference and Company Information

The management team at Power Integrations will conduct a conference call today at 1:30 PM Pacific Time, where they will elaborate on these results. Investors and interested parties are encouraged to access the call via the investor section of the company's website.

About Power Integrations

Power Integrations is recognized as a leading innovator in semiconductor technologies that facilitate high-voltage power conversion. Their products serve as critical components in the clean energy ecosystem, enabling renewable energy's generation and optimizing power consumption across diverse applications. To explore more about Power Integrations, interested parties can navigate to their official site.

Frequently Asked Questions

What were Power Integrations' net revenues for the fourth quarter?

The net revenues for the fourth quarter were $105.2 million.

How did the year-on-year performance of Power Integrations compare?

The company exhibited an 18 percent increase in net revenues compared to the fourth quarter of 2023.

What is the expected outlook for the first quarter of 2025?

Power Integrations anticipates revenues to be flat compared to Q4 2024, with a variability of plus or minus five percent.

What sectors does Power Integrations expect growth in 2025?

They expect growth in renewable energy, automotive, appliances, metering, and high-voltage DC transmission.

When will the dividend be paid to stockholders?

A dividend payment of $0.21 per share is set to be paid on March 31, 2025.

About The Author

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