Power Integrations, BridgeSwitch 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, 2021 | September 30, 2021 | December 31, 2020 | December 31, 2021 | December 31, 2020 | |||||||||||
| NET REVENUES | $ 172,654 |
$ 176,776 |
$ 150,693 |
$ 703,277 |
$ 488,318 |
||||||||||
| COST OF REVENUES | 79,478 |
85,037 |
76,688 |
342,638 |
244,728 |
||||||||||
| GROSS PROFIT | 93,176 |
91,739 |
74,005 |
360,639 |
243,590 |
||||||||||
| OPERATING EXPENSES: | |||||||||||||||
| Research and development | 22,028 |
21,137 |
21,921 |
84,933 |
81,711 |
||||||||||
| Sales and marketing | 15,590 |
15,443 |
14,113 |
60,037 |
53,578 |
||||||||||
| General and administrative | 11,073 |
9,386 |
10,028 |
39,840 |
36,895 |
||||||||||
| Amortization of acquisition-related intangible assets | 181 |
181 |
216 |
771 |
919 |
||||||||||
| Total operating expenses | 48,872 |
46,147 |
46,278 |
185,581 |
173,103 |
||||||||||
| INCOME FROM OPERATIONS | 44,304 |
45,592 |
27,727 |
175,058 |
70,487 |
||||||||||
| OTHER INCOME | 101 |
206 |
630 |
1,077 |
4,764 |
||||||||||
| INCOME BEFORE INCOME TAXES | 44,405 |
45,798 |
28,357 |
176,135 |
75,251 |
||||||||||
| PROVISION FOR INCOME TAXES | 3,705 |
3,764 |
1,079 |
11,722 |
4,075 |
||||||||||
| NET INCOME | $ 40,700 |
$ 42,034 |
$ 27,278 |
$ 164,413 |
$ 71,176 |
||||||||||
| EARNINGS PER SHARE: | |||||||||||||||
| Basic | $ 0.68 |
$ 0.70 |
$ 0.46 |
$ 2.73 |
$ 1.19 |
||||||||||
| Diluted | $ 0.66 |
$ 0.69 |
$ 0.45 |
$ 2.67 |
$ 1.17 |
||||||||||
| SHARES USED IN PER-SHARE CALCULATION: | |||||||||||||||
| Basic | 60,259 |
60,319 |
59,879 |
60,327 |
59,657 |
||||||||||
| Diluted | 61,381 |
61,363 |
61,176 |
61,467 |
60,845 |
||||||||||
| SUPPLEMENTAL INFORMATION: | Three Months Ended | Twelve Months Ended | |||||||||||||
| December 31, 2021 | September 30, 2021 | December 31, 2020 | December 31, 2021 | December 31, 2020 | |||||||||||
| Stock-based compensation expenses included in: | |||||||||||||||
| Cost of revenues | $ 424 |
$ 664 |
$ 713 |
$ 2,359 |
$ 1,963 |
||||||||||
| Research and development | 3,522 |
3,055 |
2,942 |
12,127 |
10,378 |
||||||||||
| Sales and marketing | 2,090 |
2,201 |
1,740 |
7,630 |
6,290 |
||||||||||
| General and administrative | 4,248 |
3,725 |
3,468 |
15,493 |
12,281 |
||||||||||
| Total stock-based compensation expense | $ 10,284 |
$ 9,645 |
$ 8,863 |
$ 37,609 |
$ 30,912 |
||||||||||
| Cost of revenues includes: | |||||||||||||||
| Amortization of acquisition-related intangible assets | $ 552 |
$ 552 |
$ 799 |
$ 2,477 |
$ 3,196 |
||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||
| REVENUE MIX BY END MARKET | December 31, 2021 | September 30, 2021 | December 31, 2020 | December 31, 2021 | December 31, 2020 | ||||||||||
| Communications | 23% |
25% |
34% |
30% |
30% |
||||||||||
| Computer | 10% |
11% |
9% |
10% |
7% |
||||||||||
| Consumer | 35% |
34% |
31% |
32% |
33% |
||||||||||
| Industrial | 32% |
30% |
26% |
28% |
30% |
||||||||||
| 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, 2021 | September 30, 2021 | December 31, 2020 | December 31, 2021 | December 31, 2020 | |||||||||||||||
| RECONCILIATION OF GROSS PROFIT | |||||||||||||||||||
| GAAP gross profit | $ 93,176 |
|
$ 91,739 |
|
$ 74,005 |
|
$ 360,639 |
|
$ 243,590 |
|
|||||||||
| GAAP gross margin | 54.0 |
% |
51.9 |
% |
49.1 |
% |
51.3 |
% |
49.9 |
% |
|||||||||
| Stock-based compensation included in cost of revenues | 424 |
|
664 |
|
713 |
|
2,359 |
|
1,963 |
|
|||||||||
| Amortization of acquisition-related intangible assets | 552 |
|
552 |
|
799 |
|
2,477 |
|
3,196 |
|
|||||||||
| Non-GAAP gross profit | $ 94,152 |
|
$ 92,955 |
|
$ 75,517 |
|
$ 365,475 |
|
$ 248,749 |
|
|||||||||
| Non-GAAP gross margin | 54.5 |
% |
52.6 |
% |
50.1 |
% |
52.0 |
% |
50.9 |
% |
|||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||||||
| RECONCILIATION OF OPERATING EXPENSES | December 31, 2021 | September 30, 2021 | December 31, 2020 | December 31, 2021 | December 31, 2020 | ||||||||||||||
| GAAP operating expenses | $ 48,872 |
|
$ 46,147 |
|
$ 46,278 |
|
$ 185,581 |
|
$ 173,103 |
|
|||||||||
| Less: | Stock-based compensation expense included in operating expenses | ||||||||||||||||||
| Research and development | 3,522 |
|
3,055 |
|
2,942 |
|
12,127 |
|
10,378 |
|
|||||||||
| Sales and marketing | 2,090 |
|
2,201 |
|
1,740 |
|
7,630 |
|
6,290 |
|
|||||||||
| General and administrative | 4,248 |
|
3,725 |
|
3,468 |
|
15,493 |
|
12,281 |
|
|||||||||
| Total | 9,860 |
|
8,981 |
|
8,150 |
|
35,250 |
|
28,949 |
|
|||||||||
| Amortization of acquisition-related intangible assets | 181 |
|
181 |
|
216 |
|
771 |
|
919 |
|
|||||||||
| Non-GAAP operating expenses | $ 38,831 |
|
$ 36,985 |
|
$ 37,912 |
|
$ 149,560 |
|
$ 143,235 |
|
|||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||||||
| RECONCILIATION OF INCOME FROM OPERATIONS | December 31, 2021 | September 30, 2021 | December 31, 2020 | December 31, 2021 | December 31, 2020 | ||||||||||||||
| GAAP income from operations | $ 44,304 |
|
$ 45,592 |
|
$ 27,727 |
|
$ 175,058 |
|
$ 70,487 |
|
|||||||||
| GAAP operating margin | 25.7 |
% |
25.8 |
% |
18.4 |
% |
24.9 |
% |
14.4 |
% |
|||||||||
| Add: | Total stock-based compensation | 10,284 |
|
9,645 |
|
8,863 |
|
37,609 |
|
30,912 |
|
||||||||
| Amortization of acquisition-related intangible assets | 733 |
|
733 |
|
1,015 |
|
3,248 |
|
4,115 |
|
|||||||||
| Non-GAAP income from operations | $ 55,321 |
|
$ 55,970 |
|
$ 37,605 |
|
$ 215,915 |
|
$ 105,514 |
|
|||||||||
| Non-GAAP operating margin | 32.0 |
% |
31.7 |
% |
25.0 |
% |
30.7 |
% |
21.6 |
% |
|||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||||||
| RECONCILIATION OF PROVISION FOR INCOME TAXES | December 31, 2021 | September 30, 2021 | December 31, 2020 | December 31, 2021 | December 31, 2020 | ||||||||||||||
| GAAP provision for income taxes | $ 3,705 |
|
$ 3,764 |
|
$ 1,079 |
|
$ 11,722 |
|
$ 4,075 |
|
|||||||||
| GAAP effective tax rate | 8.3 |
% |
8.2 |
% |
3.8 |
% |
6.7 |
% |
5.4 |
% |
|||||||||
| Tax effect of adjustments to GAAP results | (800 |
) |
(565 |
) |
(725 |
) |
(5,044 |
) |
(2,719 |
) |
|||||||||
| Non-GAAP provision for income taxes | $ 4,505 |
|
$ 4,329 |
|
$ 1,804 |
|
$ 16,766 |
|
$ 6,794 |
|
|||||||||
| Non-GAAP effective tax rate | 8.1 |
% |
7.7 |
% |
4.7 |
% |
7.7 |
% |
6.2 |
% |
|||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||||||
| RECONCILIATION OF NET INCOME PER SHARE (DILUTED) | December 31, 2021 | September 30, 2021 | December 31, 2020 | December 31, 2021 | December 31, 2020 | ||||||||||||||
| GAAP net income | $ 40,700 |
|
$ 42,034 |
|
$ 27,278 |
|
$ 164,413 |
|
$ 71,176 |
|
|||||||||
| Adjustments to GAAP net income | |||||||||||||||||||
| Stock-based compensation | 10,284 |
|
9,645 |
|
8,863 |
|
37,609 |
|
30,912 |
|
|||||||||
| Amortization of acquisition-related intangible assets | 733 |
|
733 |
|
1,015 |
|
3,248 |
|
4,115 |
|
|||||||||
| Tax effect of items excluded from non-GAAP results | (800 |
) |
(565 |
) |
(725 |
) |
(5,044 |
) |
(2,719 |
) |
|||||||||
| Non-GAAP net income | $ 50,917 |
|
$ 51,847 |
|
$ 36,431 |
|
$ 200,226 |
|
$ 103,484 |
|
|||||||||
| Average shares outstanding for calculation | |||||||||||||||||||
| of non-GAAP net income per share (diluted) | 61,381 |
|
61,363 |
|
61,176 |
|
61,467 |
|
60,845 |
|
|||||||||
| Non-GAAP net income per share (diluted) | $ 0.83 |
|
$ 0.84 |
|
$ 0.60 |
|
$ 3.26 |
|
$ 1.70 |
|
|||||||||
| GAAP net income per share (diluted) | $ 0.66 |
|
$ 0.69 |
|
$ 0.45 |
|
$ 2.67 |
|
$ 1.17 |
|
|||||||||
| POWER INTEGRATIONS, INC. | ||||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||||
| (in thousands) | ||||||||||
| December 31, 2021 | September 30, 2021 | December 31, 2020 | ||||||||
| ASSETS | ||||||||||
| CURRENT ASSETS: | ||||||||||
| Cash and cash equivalents | $ 158,117 |
|
$ 262,435 |
|
$ 258,874 |
|
||||
| Short-term marketable securities | 372,235 |
|
286,506 |
|
190,318 |
|
||||
| Accounts receivable, net | 41,393 |
|
38,872 |
|
35,910 |
|
||||
| Inventories | 99,266 |
|
91,814 |
|
102,878 |
|
||||
| Prepaid expenses and other current assets | 15,804 |
|
23,720 |
|
13,252 |
|
||||
| Total current assets | 686,815 |
|
703,347 |
|
601,232 |
|
||||
| PROPERTY AND EQUIPMENT, net | 179,824 |
|
168,498 |
|
166,188 |
|
||||
| INTANGIBLE ASSETS, net | 9,012 |
|
9,807 |
|
12,506 |
|
||||
| GOODWILL | 91,849 |
|
91,849 |
|
91,849 |
|
||||
| DEFERRED TAX ASSETS | 16,433 |
|
3,266 |
|
3,339 |
|
||||
| OTHER ASSETS | 30,554 |
|
28,223 |
|
28,225 |
|
||||
| Total assets | $ 1,014,487 |
|
$ 1,004,990 |
|
$ 903,339 |
|
||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||
| CURRENT LIABILITIES: | ||||||||||
| Accounts payable | $ 43,721 |
|
$ 40,390 |
|
$ 34,712 |
|
||||
| Accrued payroll and related expenses | 15,492 |
|
14,064 |
|
14,806 |
|
||||
| Taxes payable | 1,210 |
|
970 |
|
902 |
|
||||
| Other accrued liabilities | 11,898 |
|
10,638 |
|
12,106 |
|
||||
| Total current liabilities | 72,321 |
|
66,062 |
|
62,526 |
|
||||
| LONG-TERM LIABILITIES: | ||||||||||
| Income taxes payable | 15,280 |
|
14,644 |
|
15,588 |
|
||||
| Other liabilities | 14,854 |
|
15,928 |
|
14,814 |
|
||||
| Total liabilities | 102,455 |
|
96,634 |
|
92,928 |
|
||||
| STOCKHOLDERS' EQUITY: | ||||||||||
| Common stock | 28 |
|
28 |
|
28 |
|
||||
| Additional paid-in capital | 162,301 |
|
189,790 |
|
190,920 |
|
||||
| Accumulated other comprehensive loss | (3,737 |
) |
(3,249 |
) |
(2,163 |
) |
||||
| Retained earnings | 753,440 |
|
721,787 |
|
621,626 |
|
||||
| Total stockholders' equity | 912,032 |
|
908,356 |
|
810,411 |
|
||||
| Total liabilities and stockholders' equity | $ 1,014,487 |
|
$ 1,004,990 |
|
$ 903,339 |
|
||||
| POWER INTEGRATIONS, INC. | ||||||||||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||||||
| (in thousands) | ||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| December 31, 2021 | September 30, 2021 | December 31, 2020 | December 31, 2021 | December 31, 2020 | ||||||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||||||||
| Net income | $ 40,700 |
|
$ 42,034 |
|
$ 27,278 |
|
$ 164,413 |
|
$ 71,176 |
|
||||||
| Adjustments to reconcile net income to cash provided by operating activities | ||||||||||||||||
| Depreciation | 8,054 |
|
8,126 |
|
6,672 |
|
31,454 |
|
23,743 |
|
||||||
| Amortization of intangible assets | 795 |
|
794 |
|
1,076 |
|
3,494 |
|
4,359 |
|
||||||
| Loss on disposal of property and equipment | 905 |
|
2,162 |
|
214 |
|
3,105 |
|
525 |
|
||||||
| Stock-based compensation expense | 10,284 |
|
9,645 |
|
8,863 |
|
37,609 |
|
30,912 |
|
||||||
| Amortization of premium on marketable securities | 815 |
|
475 |
|
180 |
|
1,590 |
|
705 |
|
||||||
| Deferred income taxes | (13,228 |
) |
(1,194 |
) |
(692 |
) |
(13,240 |
) |
(592 |
) |
||||||
| Increase (decrease) in accounts receivable allowance for credit losses | 1 |
|
(74 |
) |
(491 |
) |
18 |
|
(336 |
) |
||||||
| Change in operating assets and liabilities: | ||||||||||||||||
| Accounts receivable | (2,522 |
) |
2,554 |
|
(5,972 |
) |
(5,501 |
) |
(11,300 |
) |
||||||
| Inventories | (7,452 |
) |
(2,171 |
) |
1,927 |
|
3,612 |
|
(12,498 |
) |
||||||
| Prepaid expenses and other assets | 9,299 |
|
(472 |
) |
3,020 |
|
4,326 |
|
9,153 |
|
||||||
| Accounts payable | (2,566 |
) |
(1,420 |
) |
(668 |
) |
4,067 |
|
5,697 |
|
||||||
| Taxes payable and other accrued liabilities | 2,078 |
|
(1,724 |
) |
4,959 |
|
(4,079 |
) |
4,095 |
|
||||||
| Net cash provided by operating activities | 47,163 |
|
58,735 |
|
46,366 |
|
230,868 |
|
125,639 |
|
||||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||||||||
| Purchases of property and equipment | (16,967 |
) |
(11,011 |
) |
(34,860 |
) |
(47,272 |
) |
(70,598 |
) |
||||||
| Proceeds from sale of property and equipment | - |
|
- |
|
320 |
|
35 |
|
651 |
|
||||||
| Purchases of marketable securities | (172,115 |
) |
(193,150 |
) |
(43,637 |
) |
(554,018 |
) |
(109,703 |
) |
||||||
| Proceeds from sales and maturities of marketable securities | 84,421 |
|
123,953 |
|
64,390 |
|
368,457 |
|
151,385 |
|
||||||
| Net cash used in investing activities | (104,661 |
) |
(80,208 |
) |
(13,787 |
) |
(232,798 |
) |
(28,265 |
) |
||||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||||||||
| Net proceeds from issuance of common stock | - |
|
4,058 |
|
865 |
|
7,710 |
|
10,527 |
|
||||||
| Repurchase of common stock | (37,773 |
) |
(9,791 |
) |
- |
|
(73,938 |
) |
(2,636 |
) |
||||||
| Payments of dividends to stockholders | (9,047 |
) |
(7,840 |
) |
(6,584 |
) |
(32,599 |
) |
(25,081 |
) |
||||||
| Net cash used in financing activities | (46,820 |
) |
(13,573 |
) |
(5,719 |
) |
(98,827 |
) |
(17,190 |
) |
||||||
| NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (104,318 |
) |
(35,046 |
) |
26,860 |
|
(100,757 |
) |
80,184 |
|
||||||
| CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 262,435 |
|
297,481 |
|
232,014 |
|
258,874 |
|
178,690 |
|
||||||
| CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ 158,117 |
|
$ 262,435 |
|
$ 258,874 |
|
$ 158,117 |
|
$ 258,874 |
|
||||||
