Power Integrations Reports Third-Quarter Financial Results


POWER INTEGRATIONS, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP RESULTS
(in thousands, except per-share amounts)

	Three Months Ended									Nine Months Ended
	September 30, 2014			June 30, 2014			September 30, 2013			September 30, 2014			September 30, 2013
RECONCILIATION OF GROSS PROFIT
GAAP gross profit	$	49,052		$	48,736		$	48,774		$	143,765		$	134,845
GAAP gross profit margin		54.4	%		54.8	%		53.2	%		54.8	%		52.5	%

Stock-based compensation included in cost of revenues		131			298			296			648			824
Amortization of acquisition-related intangible assets		645			645			645			1,935			1,935

Non-GAAP gross profit	$	49,828		$	49,679		$	49,715		$	146,348		$	137,604
Non-GAAP gross profit margin		55.3	%		55.8	%		54.2	%		55.8	%		53.6	%


RECONCILIATION OF OPERATING EXPENSES
GAAP operating expenses	$	32,177		$	34,411		$	32,180		$	99,834		$	95,886

Less: Stock-based compensation expense included in operating expenses
Research and development		971			1,339			1,485			3,522			4,231
Sales and marketing		779			864			964			2,578			2,588
General and administrative		699			1,674			1,446			3,922			4,512
Total		2,449			3,877			3,895			10,022			11,331

Amortization of acquisition-related intangible assets		629			798			1,121			2,562			3,365

Non-GAAP operating expenses	$	29,099		$	29,736		$	27,164		$	87,250		$	81,190


RECONCILIATION OF INCOME FROM OPERATIONS
GAAP income from operations	$	16,875		$	14,325		$	16,594		$	43,931		$	38,959
GAAP operating margin		18.7	%		16.1	%		18.1	%		16.8	%		15.2	%

Add: Total stock-based compensation		2,580			4,175			4,191			10,670			12,155
Amortization of acquisition-related intangible assets		1,274			1,443			1,766			4,497			5,300

Non-GAAP income from operations	$	20,729		$	19,943		$	22,551		$	59,098		$	56,414
Non-GAAP operating margin		23.0	%		22.4	%		24.6	%		22.5	%		22.0	%


RECONCILIATION OF PROVISION (BENEFIT) FOR INCOME TAXES
GAAP provision (benefit) for income taxes	$	1,145		$	(2,193	)	$	22		$	(423	)	$	(1,406	)
GAAP effective tax rate		6.6	%		-15.1	%		0.1	%		-0.9	%		-3.5	%

Benefit associated with tax settlement		-			(3,331	)		-			(3,331	)		-
Tax effect of other adjustments to GAAP results		(120	)		(115	)		(776	)		(783	)		(3,873	)

Non-GAAP provision for income taxes	$	1,265		$	1,253		$	798		$	3,691		$	2,467
Non-GAAP effective tax rate		6.0	%		6.2	%		3.5	%		6.2	%		4.3	%


RECONCILIATION OF NET INCOME PER SHARE (DILUTED)
GAAP net income	$	16,111		$	16,716		$	16,654		$	45,190		$	41,229

Adjustments to GAAP net income
Stock-based compensation		2,580			4,175			4,191			10,670			12,155
Amortization of acquisition-related intangible assets		1,274			1,443			1,766			4,497			5,300
Gain on sale of assets held for sale		-			-			-			-			(497	)
Benefit associated with tax settlement		-			(3,331	)		-			(3,331	)		-
Tax effect of items excluded from non-GAAP results		(120	)		(115	)		(776	)		(783	)		(3,873	)

Non-GAAP net income	$	19,845		$	18,888		$	21,835		$	56,243		$	54,314

Average shares outstanding for calculation
of non-GAAP income per share (diluted)		30,757			31,110			30,652			31,053			30,237

Non-GAAP net income per share (diluted)	$	0.65		$	0.61		$	0.71		$	1.81		$	1.80

GAAP income per share	$	0.52		$	0.54		$	0.54		$	1.46		$	1.36

« Previous Page 1 | 2 | 3 | 4 | 5 | 6 Next Page »