Power Integrations and the Power Integrations logo are trademarks or registered trademarks of Power Integrations, Inc.
| POWER INTEGRATIONS, INC. | ||||||||||||||||||||
| CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||||||
| (in thousands, except per-share amounts) | ||||||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||
| December 31, 2020 | September 30, 2020 | December 31, 2019 | December 31, 2020 | December 31, 2019 | ||||||||||||||||
| NET REVENUES | $ |
150,693 |
|
$ |
121,129 |
|
$ |
114,457 |
|
$ |
488,318 |
|
$ |
420,669 |
|
|||||
| COST OF REVENUES |
|
76,688 |
|
|
61,560 |
|
|
56,232 |
|
|
244,728 |
|
|
207,267 |
|
|||||
| GROSS PROFIT |
|
74,005 |
|
|
59,569 |
|
|
58,225 |
|
|
243,590 |
|
|
213,402 |
|
|||||
| OPERATING EXPENSES: | ||||||||||||||||||||
| Research and development |
|
21,921 |
|
|
20,868 |
|
|
18,298 |
|
|
81,711 |
|
|
73,470 |
|
|||||
| Sales and marketing |
|
14,113 |
|
|
13,442 |
|
|
14,241 |
|
|
53,578 |
|
|
52,720 |
|
|||||
| General and administrative |
|
10,028 |
|
|
10,302 |
|
|
10,634 |
|
|
36,895 |
|
|
37,582 |
|
|||||
| Amortization of acquisition-related intangible assets |
|
216 |
|
|
216 |
|
|
378 |
|
|
919 |
|
|
1,577 |
|
|||||
| Litigation settlement |
|
- |
|
|
- |
|
|
(168,969 |
) |
|
- |
|
|
(168,969 |
) |
|||||
| Total operating expenses |
|
46,278 |
|
|
44,828 |
|
|
(125,418 |
) |
|
173,103 |
|
|
(3,620 |
) |
|||||
| INCOME FROM OPERATIONS |
|
27,727 |
|
|
14,741 |
|
|
183,643 |
|
|
70,487 |
|
|
217,022 |
|
|||||
| OTHER INCOME |
|
630 |
|
|
877 |
|
|
1,852 |
|
|
4,764 |
|
|
5,392 |
|
|||||
| INCOME BEFORE INCOME TAXES |
|
28,357 |
|
|
15,618 |
|
|
185,495 |
|
|
75,251 |
|
|
222,414 |
|
|||||
| PROVISION FOR INCOME TAXES |
|
1,079 |
|
|
798 |
|
|
27,204 |
|
|
4,075 |
|
|
28,946 |
|
|||||
| NET INCOME | $ |
27,278 |
|
$ |
14,820 |
|
$ |
158,291 |
|
$ |
71,176 |
|
$ |
193,468 |
|
|||||
| EARNINGS PER SHARE: | ||||||||||||||||||||
| Basic | $ |
0.46 |
|
$ |
0.25 |
|
$ |
2.69 |
|
$ |
1.19 |
|
$ |
3.31 |
|
|||||
| Diluted | $ |
0.45 |
|
$ |
0.24 |
|
$ |
2.64 |
|
$ |
1.17 |
|
$ |
3.24 |
|
|||||
| SHARES USED IN PER-SHARE CALCULATION: | ||||||||||||||||||||
| Basic |
|
59,879 |
|
|
59,823 |
|
|
58,854 |
|
|
59,657 |
|
|
58,534 |
|
|||||
| Diluted |
|
61,176 |
|
|
60,852 |
|
|
60,010 |
|
|
60,845 |
|
|
59,632 |
|
|||||
| SUPPLEMENTAL INFORMATION: | Three Months Ended | Twelve Months Ended | ||||||||||||||||||
| December 31, 2020 | September 30, 2020 | December 31, 2019 | December 31, 2020 | December 31, 2019 | ||||||||||||||||
| Stock-based compensation expenses included in: | ||||||||||||||||||||
| Cost of revenues | $ |
713 |
|
$ |
602 |
|
$ |
413 |
|
$ |
1,963 |
|
$ |
1,237 |
|
|||||
| Research and development |
|
2,942 |
|
|
2,976 |
|
|
2,754 |
|
|
10,378 |
|
|
8,423 |
|
|||||
| Sales and marketing |
|
1,740 |
|
|
1,900 |
|
|
1,602 |
|
|
6,290 |
|
|
5,015 |
|
|||||
| General and administrative |
|
3,468 |
|
|
3,880 |
|
|
3,569 |
|
|
12,281 |
|
|
8,672 |
|
|||||
| Total stock-based compensation expense | $ |
8,863 |
|
$ |
9,358 |
|
$ |
8,338 |
|
$ |
30,912 |
|
$ |
23,347 |
|
|||||
| Cost of revenues includes: | ||||||||||||||||||||
| Amortization of acquisition-related intangible assets | $ |
799 |
|
$ |
799 |
|
$ |
955 |
|
$ |
3,196 |
|
$ |
3,483 |
|
|||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||
| REVENUE MIX BY END MARKET | December 31, 2020 | September 30, 2020 | December 31, 2019 | December 31, 2020 | December 31, 2019 | |||||||||||||||
| Communications |
|
34 |
% |
|
32 |
% |
|
29 |
% |
|
30 |
% |
|
26 |
% |
|||||
| Computer |
|
9 |
% |
|
9 |
% |
|
6 |
% |
|
7 |
% |
|
5 |
% |
|||||
| Consumer |
|
31 |
% |
|
31 |
% |
|
35 |
% |
|
33 |
% |
|
35 |
% |
|||||
| Industrial |
|
26 |
% |
|
28 |
% |
|
30 |
% |
|
30 |
% |
|
34 |
% |
|||||
| POWER INTEGRATIONS, INC. | ||||||||||||||||||||
| RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP RESULTS | ||||||||||||||||||||
| (in thousands, except per-share amounts) | ||||||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||
| December 31, 2020 | September 30, 2020 | December 31, 2019 | December 31, 2020 | December 31, 2019 | ||||||||||||||||
| RECONCILIATION OF GROSS PROFIT | ||||||||||||||||||||
| GAAP gross profit | $ |
74,005 |
|
$ |
59,569 |
|
$ |
58,225 |
|
$ |
243,590 |
|
$ |
213,402 |
|
|||||
| GAAP gross margin |
|
49.1 |
% |
|
49.2 |
% |
|
50.9 |
% |
|
49.9 |
% |
|
50.7 |
% |
|||||
| Stock-based compensation included in cost of revenues |
|
713 |
|
|
602 |
|
|
413 |
|
|
1,963 |
|
|
1,237 |
|
|||||
| Amortization of acquisition-related intangible assets |
|
799 |
|
|
799 |
|
|
955 |
|
|
3,196 |
|
|
3,483 |
|
|||||
| Non-GAAP gross profit | $ |
75,517 |
|
$ |
60,970 |
|
$ |
59,593 |
|
$ |
248,749 |
|
$ |
218,122 |
|
|||||
| Non-GAAP gross margin |
|
50.1 |
% |
|
50.3 |
% |
|
52.1 |
% |
|
50.9 |
% |
|
51.9 |
% |
|||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||
| RECONCILIATION OF OPERATING EXPENSES | December 31, 2020 | September 30, 2020 | December 31, 2019 | December 31, 2020 | December 31, 2019 | |||||||||||||||
| GAAP operating expenses | $ |
46,278 |
|
$ |
44,828 |
|
$ |
(125,418 |
) |
$ |
173,103 |
|
$ |
(3,620 |
) |
|||||
| Less: Stock-based compensation expense included in operating expenses | ||||||||||||||||||||
| Research and development |
|
2,942 |
|
|
2,976 |
|
|
2,754 |
|
|
10,378 |
|
|
8,423 |
|
|||||
| Sales and marketing |
|
1,740 |
|
|
1,900 |
|
|
1,602 |
|
|
6,290 |
|
|
5,015 |
|
|||||
| General and administrative |
|
3,468 |
|
|
3,880 |
|
|
3,569 |
|
|
12,281 |
|
|
8,672 |
|
|||||
| Total |
|
8,150 |
|
|
8,756 |
|
|
7,925 |
|
|
28,949 |
|
|
22,110 |
|
|||||
| Amortization of acquisition-related intangible assets |
|
216 |
|
|
216 |
|
|
378 |
|
|
919 |
|
|
1,577 |
|
|||||
| Non-GAAP operating expenses | $ |
37,912 |
|
$ |
35,856 |
|
$ |
(133,721 |
) |
$ |
143,235 |
|
$ |
(27,307 |
) |
|||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||
| RECONCILIATION OF INCOME FROM OPERATIONS | December 31, 2020 | September 30, 2020 | December 31, 2019 | December 31, 2020 | December 31, 2019 | |||||||||||||||
| GAAP income from operations | $ |
27,727 |
|
$ |
14,741 |
|
$ |
183,643 |
|
$ |
70,487 |
|
$ |
217,022 |
|
|||||
| GAAP operating margin |
|
18.4 |
% |
|
12.2 |
% |
|
160.4 |
% |
|
14.4 |
% |
|
51.6 |
% |
|||||
| Add: Total stock-based compensation |
|
8,863 |
|
|
9,358 |
|
|
8,338 |
|
|
30,912 |
|
|
23,347 |
|
|||||
| Amortization of acquisition-related intangible assets |
|
1,015 |
|
|
1,015 |
|
|
1,333 |
|
|
4,115 |
|
|
5,060 |
|
|||||
| Non-GAAP income from operations | $ |
37,605 |
|
$ |
25,114 |
|
$ |
193,314 |
|
$ |
105,514 |
|
$ |
245,429 |
|
|||||
| Non-GAAP operating margin |
|
25.0 |
% |
|
20.7 |
% |
|
168.9 |
% |
|
21.6 |
% |
|
58.3 |
% |
|||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||
| RECONCILIATION OF PROVISION FOR INCOME TAXES | December 31, 2020 | September 30, 2020 | December 31, 2019 | December 31, 2020 | December 31, 2019 | |||||||||||||||
| GAAP provision for income taxes | $ |
1,079 |
|
$ |
798 |
|
$ |
27,204 |
|
$ |
4,075 |
|
$ |
28,946 |
|
|||||
| GAAP effective tax rate |
|
3.8 |
% |
|
5.1 |
% |
|
14.7 |
% |
|
5.4 |
% |
|
13.0 |
% |
|||||
| Tax effect of adjustments to GAAP results |
|
(725 |
) |
|
(971 |
) |
|
(53 |
) |
|
(2,719 |
) |
|
(1,955 |
) |
|||||
| Non-GAAP provision for income taxes | $ |
1,804 |
|
$ |
1,769 |
|
$ |
27,257 |
|
$ |
6,794 |
|
$ |
30,901 |
|
|||||
| Non-GAAP effective tax rate |
|
4.7 |
% |
|
6.8 |
% |
|
14.0 |
% |
|
6.2 |
% |
|
12.3 |
% |
|||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||
| RECONCILIATION OF NET INCOME PER SHARE (DILUTED) | December 31, 2020 | September 30, 2020 | December 31, 2019 | December 31, 2020 | December 31, 2019 | |||||||||||||||
| GAAP net income | $ |
27,278 |
|
$ |
14,820 |
|
$ |
158,291 |
|
$ |
71,176 |
|
$ |
193,468 |
|
|||||
| Adjustments to GAAP net income | ||||||||||||||||||||
| Stock-based compensation |
|
8,863 |
|
|
9,358 |
|
|
8,338 |
|
|
30,912 |
|
|
23,347 |
|
|||||
| Amortization of acquisition-related intangible assets |
|
1,015 |
|
|
1,015 |
|
|
1,333 |
|
|
4,115 |
|
|
5,060 |
|
|||||
| Tax effect of items excluded from non-GAAP results |
|
(725 |
) |
|
(971 |
) |
|
(53 |
) |
|
(2,719 |
) |
|
(1,955 |
) |
|||||
| Non-GAAP net income | $ |
36,431 |
|
$ |
24,222 |
|
$ |
167,909 |
|
$ |
103,484 |
|
$ |
219,920 |
|
|||||
| Average shares outstanding for calculation of non-GAAP net income per share (diluted) |
|
61,176 |
|
|
60,852 |
|
|
60,010 |
|
|
60,845 |
|
|
59,632 |
|
|||||
| Non-GAAP net income per share (diluted) | $ |
0.60 |
|
$ |
0.40 |
|
$ |
2.80 |
|
$ |
1.70 |
|
$ |
3.69 |
|
|||||
| GAAP net income per share (diluted) | $ |
0.45 |
|
$ |
0.24 |
|
$ |
2.64 |
|
$ |
1.17 |
|
$ |
3.24 |
|
|||||
| POWER INTEGRATIONS, INC. | ||||||||||||||||||||
| CALCULATION OF EARNINGS PER SHARE BENEFIT OF SETTLEMENT | ||||||||||||||||||||
| (in thousands, except per-share amounts) | ||||||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||
| December 31, 2020 | September 30, 2020 | December 31, 2019 | December 31, 2020 | December 31, 2019 | ||||||||||||||||
| Gain from litigation settlement | $ |
- |
|
$ |
- |
|
$ |
168,969 |
|
$ |
- |
|
$ |
168,969 |
|
|||||
| Tax expense attributed to settlement |
|
- |
|
|
- |
|
|
25,543 |
|
|
- |
|
|
25,543 |
|
|||||
| Litigation settlement net of tax | $ |
- |
|
$ |
- |
|
$ |
143,426 |
|
$ |
- |
|
$ |
143,426 |
|
|||||
| Earnings per share benefit of settlement (GAAP and non-GAAP) | $ |
- |
|
$ |
- |
|
$ |
2.39 |
|
$ |
- |
|
$ |
2.41 |
|
|||||
| Diluted average shares outstanding |
|
61,176 |
|
|
60,852 |
|
|
60,010 |
|
|
60,845 |
|
|
59,632 |
|
|||||
| POWER INTEGRATIONS, INC. | ||||||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||||||
| (in thousands) | ||||||||||||
| December 31, 2020 | September 30, 2020 | December 31, 2019 | ||||||||||
| ASSETS | ||||||||||||
| CURRENT ASSETS: | ||||||||||||
| Cash and cash equivalents | $ |
258,874 |
|
$ |
232,014 |
|
$ |
178,690 |
|
|||
| Short-term marketable securities |
|
190,318 |
|
|
211,926 |
|
|
232,398 |
|
|||
| Accounts receivable, net |
|
35,910 |
|
|
29,447 |
|
|
24,274 |
|
|||
| Inventories |
|
102,878 |
|
|
104,805 |
|
|
90,380 |
|
|||
| Prepaid expenses and other current assets |
|
13,252 |
|
|
14,755 |
|
|
15,597 |
|
|||
| Total current assets |
|
601,232 |
|
|
592,947 |
|
|
541,339 |
|
|||
| PROPERTY AND EQUIPMENT, net |
|
166,188 |
|
|
147,719 |
|
|
116,619 |
|
|||
| INTANGIBLE ASSETS, net |
|
12,506 |
|
|
13,582 |
|
|
16,865 |
|
|||
| GOODWILL |
|
91,849 |
|
|
91,849 |
|
|
91,849 |
|
|||
| DEFERRED TAX ASSETS |
|
3,339 |
|
|
2,660 |
|
|
2,836 |
|
|||
| OTHER ASSETS |
|
28,225 |
|
|
27,311 |
|
|
34,388 |
|
|||
| Total assets | $ |
903,339 |
|
$ |
876,068 |
|
$ |
803,896 |
|
|||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||
| CURRENT LIABILITIES: | ||||||||||||
| Accounts payable | $ |
34,712 |
|
$ |
43,623 |
|
$ |
27,433 |
|
|||
| Accrued payroll and related expenses |
|
14,806 |
|
|
12,892 |
|
|
13,408 |
|
|||
| Taxes payable |
|
902 |
|
|
379 |
|
|
584 |
|
|||
| Other accrued liabilities |
|
12,106 |
|
|
9,357 |
|
|
9,051 |
|
|||
| Total current liabilities |
|
62,526 |
|
|
66,251 |
|
|
50,476 |
|
|||
| LONG-TERM LIABILITIES: | ||||||||||||
| Income taxes payable |
|
15,588 |
|
|
15,497 |
|
|
14,617 |
|
|||
| Deferred tax liabilities |
|
75 |
|
|
87 |
|
|
164 |
|
|||
| Other liabilities |
|
14,739 |
|
|
14,436 |
|
|
14,093 |
|
|||
| Total liabilities |
|
92,928 |
|
|
96,271 |
|
|
79,350 |
|
|||
| STOCKHOLDERS' EQUITY: | ||||||||||||
| Common stock |
|
28 |
|
|
28 |
|
|
28 |
|
|||
| Additional paid-in capital |
|
190,920 |
|
|
181,192 |
|
|
152,117 |
|
|||
| Accumulated other comprehensive loss |
|
(2,163 |
) |
|
(2,355 |
) |
|
(3,130 |
) |
|||
| Retained earnings |
|
621,626 |
|
|
600,932 |
|
|
575,531 |
|
|||
| Total stockholders' equity |
|
810,411 |
|
|
779,797 |
|
|
724,546 |
|
|||
| Total liabilities and stockholders' equity | $ |
903,339 |
|
$ |
876,068 |
|
$ |
803,896 |
|
|||
| POWER INTEGRATIONS, INC. | ||||||||||||||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||||||||||
| (in thousands) | ||||||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||
| December 31, 2020 | September 30, 2020 | December 31, 2019 | December 31, 2020 | December 31, 2019 | ||||||||||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||||||||||||
| Net income | $ |
27,278 |
|
$ |
14,820 |
|
$ |
158,291 |
|
$ |
71,176 |
|
$ |
193,468 |
|
|||||
| Adjustments to reconcile net income to cash provided by operating activities | ||||||||||||||||||||
| Depreciation |
|
6,672 |
|
|
6,002 |
|
|
4,928 |
|
|
23,743 |
|
|
19,190 |
|
|||||
| Amortization of intangible assets |
|
1,076 |
|
|
1,076 |
|
|
1,373 |
|
|
4,359 |
|
|
5,213 |
|
|||||
| Loss on disposal of property and equipment |
|
214 |
|
|
19 |
|
|
35 |
|
|
525 |
|
|
249 |
|
|||||
| Stock-based compensation expense |
|
8,863 |
|
|
9,358 |
|
|
8,338 |
|
|
30,912 |
|
|
23,347 |
|
|||||
| Amortization of premium (accretion of discount) on marketable securities |
|
180 |
|
|
204 |
|
|
104 |
|
|
705 |
|
|
(192 |
) |
|||||
| Deferred income taxes |
|
(692 |
) |
|
(1,179 |
) |
|
2,741 |
|
|
(592 |
) |
|
4,019 |
|
|||||
| Increase (decrease) in accounts receivable allowances for credit losses |
|
(491 |
) |
|
309 |
|
|
- |
|
|
(336 |
) |
|
57 |
|
|||||
| Change in operating assets and liabilities: | ||||||||||||||||||||
| Accounts receivable |
|
(5,972 |
) |
|
(16,884 |
) |
|
1,545 |
|
|
(11,300 |
) |
|
(13,259 |
) |
|||||
| Inventories |
|
1,927 |
|
|
(842 |
) |
|
(1,670 |
) |
|
(12,498 |
) |
|
(9,523 |
) |
|||||
| Prepaid expenses and other assets |
|
3,020 |
|
|
2,041 |
|
|
902 |
|
|
9,153 |
|
|
(2,132 |
) |
|||||
| Accounts payable |
|
(668 |
) |
|
504 |
|
|
(3,920 |
) |
|
5,697 |
|
|
(6,556 |
) |
|||||
| Taxes payable and other accrued liabilities |
|
4,959 |
|
|
801 |
|
|
9,492 |
|
|
4,095 |
|
|
10,618 |
|
|||||
| Net cash provided by operating activities |
|
46,366 |
|
|
16,229 |
|
|
182,159 |
|
|
125,639 |
|
|
224,499 |
|
|||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||||||||||||
| Purchases of property and equipment |
|
(34,860 |
) |
|
(14,116 |
) |
|
(9,789 |
) |
|
(70,598 |
) |
|
(24,114 |
) |
|||||
| Proceeds from sale of property and equipment |
|
320 |
|
|
- |
|
|
- |
|
|
651 |
|
|
- |
|
|||||
| Acquisition of technology licenses |
|
- |
|
|
- |
|
|
(675 |
) |
|
- |
|
|
(1,026 |
) |
|||||
| Purchases of marketable securities |
|
(43,637 |
) |
|
(46,239 |
) |
|
(71,952 |
) |
|
(109,703 |
) |
|
(207,240 |
) |
|||||
| Proceeds from sales and maturities of marketable securities |
|
64,390 |
|
|
28,033 |
|
|
4,150 |
|
|
151,385 |
|
|
70,334 |
|
|||||
| Net cash used in investing activities |
|
(13,787 |
) |
|
(32,322 |
) |
|
(78,266 |
) |
|
(28,265 |
) |
|
(162,046 |
) |
|||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||||||||||||
| Net proceeds from issuance of common stock |
|
865 |
|
|
3,364 |
|
|
225 |
|
|
10,527 |
|
|
9,908 |
|
|||||
| Repurchase of common stock |
|
- |
|
|
- |
|
|
- |
|
|
(2,636 |
) |
|
(7,302 |
) |
|||||
| Payments of dividends to stockholders |
|
(6,584 |
) |
|
(6,582 |
) |
|
(5,590 |
) |
|
(25,081 |
) |
|
(20,506 |
) |
|||||
| Net cash used in financing activities |
|
(5,719 |
) |
|
(3,218 |
) |
|
(5,365 |
) |
|
(17,190 |
) |
|
(17,900 |
) |
|||||
| NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS |
|
26,860 |
|
|
(19,311 |
) |
|
98,528 |
|
|
80,184 |
|
|
44,553 |
|
|||||
| CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD |
|
232,014 |
|
|
251,325 |
|
|
80,162 |
|
|
178,690 |
|
|
134,137 |
|
|||||
| CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ |
258,874 |
|
$ |
232,014 |
|
$ |
178,690 |
|
$ |
258,874 |
|
$ |
178,690 |
|
|||||
