Earnings out;
Thursday July 22, 4:06 pm Eastern Time
Company Press Release
SOURCE: Power Integrations
Power Integrations Announces Record Q2 99 Results
SUNNYVALE, Calif., July 22 /PRNewswire/ -- Power Integrations, Inc. (Nasdaq: POWI - news) today announced record
financial results for its first quarter ended June 30, 1999.
Net revenues for the second quarter of 1999 were $23.0 million, up 52 percent from net revenues of $15.1 million reported in
the second quarter of 1998 and up 10 percent from net revenues of $20.8 million in the first quarter of 1999. Net income for
the second quarter of 1999 was $5.3 million, compared with $2.2 million in the second quarter of 1998 and $4.9 million in the
first quarter of 1999. Second quarter earnings per share, on a diluted basis, were $0.38 on approximately 14.1 million shares
outstanding. This compares with $0.16 on approximately 13.1 million shares outstanding in the second quarter of 1998 and
$0.36 on approximately 13.7 million shares outstanding in the first quarter of 1999.
''In the second quarter, we achieved record revenue, operating income and earnings per share,'' said Howard Earhart
president & CEO. ''Our record revenue was primarily driven by strong demand for our TOPSwitch(TM) ICs across all of our
major end markets and geographies. Also, we started production shipments of our new energy-saving TinySwitch(TM) ICs,
which we recently introduced to address the large and growing power supply market for energy efficient, low power electronic
products and appliances.
''We also introduced our first ICs that are targeted for high-voltage DC-to-DC applications. The growth in distributed power
architectures in the communications industry, such as Voice over Internet Protocol (VoIP), is creating a new market for
high-voltage DC-to-DC power conversion solutions. Our high-voltage technology is particularly well suited to the needs of this
emerging market, which values small, efficient and highly reliable power supplies,'' said Mr. Earhart.
Safe Harbor Statement
The statements in this news release, other than the historical financial information, may contain forward-looking statements that
involve risks and uncertainties that could cause actual results to differ from anticipated results. Further information on risk
factors that could affect the company's results is detailed in the company's Annual Report on Form 10-K for the year ended
Dec. 31, 1998, as filed with the Securities and Exchange Commission, as well as the Form 10-Q for the quarter ended March
31, 1999.
About Power Integrations
Power Integrations, Inc. is a leading supplier of high-voltage analog integrated circuits for use in AC to DC power conversion.
For more information, visit the company's web site at: www.powerint.com or contact the company at 477 North Mathilda
Ave., Sunnyvale, Calif. 94086; 408-523-9200.
POWER INTEGRATIONS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(Unaudited)
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30 JUNE 30
1999 1998 1999 1998
NET REVENUES:
Product sales $22,655 $14,647 $43,101 $28,549
License fees and
royalties 324 466 699 990
Total net revenues 22,979 15,113 43,800 29,539
COST OF REVENUES 10,482 8,254 19,949 16,230
GROSS PROFIT 12,497 6,859 23,851 13,309
OPERATING EXPENSES:
Research and
development 2,535 1,720 4,871 3,279
Sales and marketing 2,729 1,724 5,204 3,613
General and
administrative 1,427 730 2,796 1,278
Total operating
expenses 6,691 4,174 12,871 8,170
INCOME FROM
OPERATIONS 5,806 2,685 10,980 5,139
OTHER INCOME (EXPENSE):
Interest income 527 361 1,234 723
Interest expense (87) (100) (168) (213)
Other, net (7) (72) (49) (134)
Total other income
(expense) 433 189 1,017 376
INCOME BEFORE
PROVISION FOR
INCOME TAXES 6,239 2,874 11,997 5,515
PROVISION FOR
INCOME TAXES 939 721 1,803 1,384
NET INCOME $5,300 $2,153 $10,194 $4,131
EARNINGS PER SHARE:
Basic $0.41 $0.18 $0.80 $0.34
Diluted $0.38 $0.16 $0.73 $0.31
SHARES USED IN PER
SHARE CALCULATION:
Basic 12,903 12,087 12,773 12,083
Diluted 14,092 13,119 13,908 13,123
POWER INTEGRATIONS, INC.
CONSOLIDATED BALANCE SHEETS
( in thousands)
June 30, December 31,
1999 1998
(Unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 7,882 $24,176
Short-term investments 43,632 20,242
Accounts receivable 7,700 4,640
Inventories 8,284 8,845
Prepaid expenses and
other current assets 3,953 812
Total current assets 71,451 58,715
PROPERTY AND EQUIPMENT, AT COST:
Machinery and equipment 17,824 14,716
Leasehold improvements 1,272 1,158
19,096 15,874
Less: Accumulated depreciation (11,031) (9,535)
8,065 6,339
$79,516 $65,054
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Current portion of capitalized
lease obligations $1,699 $1,950
Accounts payable 7,245 5,866
Accrued payroll and related expenses 2,573 2,394
Taxes payable and other accrued
liabilities 1,625 2,951
Deferred income on sales to
distributors 2,566 2,566
Total current liabilities 15,708 15,727
CAPITALIZED LEASE OBLIGATIONS,
net of current portion 1,944 1,963
STOCKHOLDERS' EQUITY:
Common stock 13 12
Additional paid-in capital 61,539 57,289
Common stock warrants -- 12
Shareholder notes receivable (264) (274)
Deferred compensation (251) (321)
Cumulative translation adjustment (70) (57)
Retained earnings (deficit) 897 (9,297)
Total stockholders' equity 61,864 47,364
$79,516 $65,054
SOURCE: Power Integrations |
