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Power Integrations Reports Q1

SAN JOSE, Calif. — Power Integrations (Nasdaq:POWI), the leader in high-voltage integrated circuits for energy-efficient power conversion, today announced financial results for the quarter ended March 31, 2011. Net revenues for the quarter were $76.8 million, up seven percent compared with the first quarter of 2010, and up five percent compared with the fourth quarter of 2010. Net income was $9.9 million or $0.33 per diluted share, compared with $0.42 per diluted share in the year-ago quarter and $0.30 per diluted share in the fourth quarter of 2010. Gross margin for the first quarter was 47.4 percent; operating margin was 15.2 percent.

In addition to its GAAP results, the company provided certain non-GAAP financial measures that exclude stock-based compensation expenses, amortization of the fair-value write-up of acquired inventory and acquisition-related intangible assets, and the tax effects of these items. Non-GAAP net income for the quarter was $12.1 million or $0.40 per diluted share, compared with $0.49 per diluted share in the year-ago quarter and $0.39 per diluted share in the fourth quarter of 2010. Non-GAAP gross margin for the first quarter was 48.0 percent; non-GAAP operating margin was 18.7 percent.

Commented Balu Balakrishnan, president and CEO of Power Integrations: “Our revenues grew five percent sequentially in the first quarter, with all four major end-market categories contributing to the increase. We also saw an increase in bookings for the second consecutive quarter, and orders remained healthy through the month of April. We believe these trends provide further evidence that the inventory correction that began last summer may now be behind us.”

Balakrishnan continued: “With respect to the tragedy in Japan, we have not experienced any interruption in our ability to supply customers thus far, despite the fact that one of our Japanese foundries has been inoperative since the earthquake due to the ongoing shortage of electricity. We believe that our operational safeguards – including dual-sourcing and a healthy inventory buffer – will enable us to continue meeting customer demand. Also, while we continue to monitor the supply of raw materials into our supply chain, at this time we are not aware of any shortages or other issues that would prevent us from meeting customer demand.

“However, the uncertainty created by the Japan crisis does make forecasting demand more challenging than usual. We have seen some negative impact on demand from our Japanese customers, which account for approximately six percent of our sales; there may also be some effect on overall demand if the manufacturing of power supplies or end products is impacted by shortages of other components or materials. Taking these uncertainties into consideration along with the healthy underlying trends in our business, we expect our second-quarter revenues to be between $76 million and $82 million.”

{complink 12954|Power Integrations Inc.}

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