SAN JOSE, Calif.--(BUSINESS WIRE)-- Power Integrations (Nasdaq:POWI), the leader in high-voltage integrated circuits for energy-efficient power conversion, today announced financial results for the quarter ended December 31, 2011. Net revenues for the fourth quarter were $66.7 million, down 11 percent from the prior quarter and down nine percent compared with the fourth quarter of 2010. Net income was $6.3 million or $0.22 per diluted share, compared with $0.25 per diluted share in the prior quarter and $0.30 per diluted share in the fourth quarter of 2010. Gross margin for the fourth quarter was 47.3 percent; operating margin was 11.7 percent.
In addition to its GAAP results, the company provided certain non-GAAP financial measures that exclude stock-based compensation expenses, amortization of acquisition-related intangible assets and the fair-value write-up of acquired inventory, and the tax effects of these items. Non-GAAP net income for the quarter was $8.5 million or $0.29 per diluted share, compared with $0.32 per diluted share in the prior quarter and $0.39 per diluted share in the fourth quarter of 2010. Non-GAAP gross margin for the fourth quarter was 47.8 percent; non-GAAP operating margin was 15.6 percent.
For the full year, net revenues were $298.7 million, a slight decrease compared with $299.8 million in the prior year. Net income for 2011 was $34.3 million or $1.14 per diluted share, compared with $49.5 million or $1.67 per diluted share in the prior year. Non-GAAP net income was $43.2 million or $1.44 per diluted share, compared with $59.4 million or $2.01 per diluted share in the prior year.
Commented Balu Balakrishnan, president and CEO of Power Integrations: "As expected, our fourth-quarter revenues were down from the prior quarter reflecting the industry-wide slowdown in demand. However, we have seen an uptick in orders of late, and while it is difficult to predict the trajectory of the recovery, it appears that business conditions have stabilized and perhaps begun to improve. Moreover, our gross margin increased in the fourth quarter as we began to realize the benefits of our ongoing cost-reduction initiatives. We anticipate further margin expansion in 2012 as these efforts continue."
"In spite of challenging macroeconomic conditions we reported record operating cash flow of $69.2 million for 2011. Looking ahead, the global trend toward more energy-efficient electronics and lighting technologies continues to gather steam, and we are a leading enabler in both of these areas. We also made excellent progress last year winning designs, ramping new products and growing our customer base, and we believe we are well positioned for growth as cyclical headwinds abate."
Additional Highlights
The company issued the following forecast for the first quarter of 2012:
Power Integrations, Inc., is a Silicon Valley-based supplier of high-voltage integrated circuits and other high-voltage components used in energy-efficient power conversion. The company's innovative technologies enable compact, reliable AC-DC power supplies for a vast range of electronic products including mobile devices, TVs, PCs, appliances, smart utility meters and LED lights. Since its introduction in 1998, Power Integrations' EcoSmart® energy-efficiency technology has prevented billions of dollars' worth of energy waste and millions of tons of carbon emissions. Reflecting the environmental benefits of the company's products, Power Integrations' stock is included in the NASDAQ® Clean Edge® Green Energy Index, The Cleantech Index®, and the Ardour Global IndexSM. For more information, including design-support tools and resources, please visit www.powerint.com; visit Power Integrations' Green Room for a comprehensive guide to energy-efficiency standards around the world.
In addition to its GAAP results, the company provided certain non-GAAP financial measures that exclude stock-based compensation expenses, amortization of acquisition-related intangible assets and the fair-value write-up of acquired inventory, and the tax effects of these items. Non-GAAP net income for the quarter was $8.5 million or $0.29 per diluted share, compared with $0.32 per diluted share in the prior quarter and $0.39 per diluted share in the fourth quarter of 2010. Non-GAAP gross margin for the fourth quarter was 47.8 percent; non-GAAP operating margin was 15.6 percent.
For the full year, net revenues were $298.7 million, a slight decrease compared with $299.8 million in the prior year. Net income for 2011 was $34.3 million or $1.14 per diluted share, compared with $49.5 million or $1.67 per diluted share in the prior year. Non-GAAP net income was $43.2 million or $1.44 per diluted share, compared with $59.4 million or $2.01 per diluted share in the prior year.
Commented Balu Balakrishnan, president and CEO of Power Integrations: "As expected, our fourth-quarter revenues were down from the prior quarter reflecting the industry-wide slowdown in demand. However, we have seen an uptick in orders of late, and while it is difficult to predict the trajectory of the recovery, it appears that business conditions have stabilized and perhaps begun to improve. Moreover, our gross margin increased in the fourth quarter as we began to realize the benefits of our ongoing cost-reduction initiatives. We anticipate further margin expansion in 2012 as these efforts continue."
"In spite of challenging macroeconomic conditions we reported record operating cash flow of $69.2 million for 2011. Looking ahead, the global trend toward more energy-efficient electronics and lighting technologies continues to gather steam, and we are a leading enabler in both of these areas. We also made excellent progress last year winning designs, ramping new products and growing our customer base, and we believe we are well positioned for growth as cyclical headwinds abate."
Additional Highlights
- Cash flow from operations was $9.2 million for the fourth quarter and $69.2 million for the year.
- Power Integrations repurchased 0.4 million shares of its common stock during the fourth quarter for $14.2 million. During the year the company repurchased 1.5 million shares for $50 million.
- The company paid a dividend of $0.05 per share on December 30, 2011. The next dividend of $0.05 per share will be paid on March 30, 2012 to stockholders of record as of February 29, 2012.
- Power Integrations was issued 15 U.S. patents and 25 non-U.S. patents during the quarter and had a total of 454 U.S. patents and 317 non-U.S. patents as of December 31, 2011.
The company issued the following forecast for the first quarter of 2012:
- Revenues are expected to be between $64 million and $70 million;
- Gross margins are expected to be flat to 50 basis points higher compared with the fourth quarter;
- Operating expenses:
- GAAP: between $25 million and $26 million;
- Non-GAAP: between $22 million and $23 million (which excludes from GAAP operating expenses approximately $3 million of stock-based compensation expenses and less than $0.1 million of amortization expense related to acquisition-related intangible assets).
Power Integrations, Inc., is a Silicon Valley-based supplier of high-voltage integrated circuits and other high-voltage components used in energy-efficient power conversion. The company's innovative technologies enable compact, reliable AC-DC power supplies for a vast range of electronic products including mobile devices, TVs, PCs, appliances, smart utility meters and LED lights. Since its introduction in 1998, Power Integrations' EcoSmart® energy-efficiency technology has prevented billions of dollars' worth of energy waste and millions of tons of carbon emissions. Reflecting the environmental benefits of the company's products, Power Integrations' stock is included in the NASDAQ® Clean Edge® Green Energy Index, The Cleantech Index®, and the Ardour Global IndexSM. For more information, including design-support tools and resources, please visit www.powerint.com; visit Power Integrations' Green Room for a comprehensive guide to energy-efficiency standards around the world.
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