Monolithic Power Systems, Inc. (MPS) (Nasdaq:MPWR), a leading
company in high performance power solutions, today announced
financial results for the quarter and year ended December 31, 2016.
The results for the quarter ended December 31,
2016 are as follows:
- Revenue was $103.6 million, a 2.7% decrease from $106.5 million
in the third quarter of 2016 and a 19.2% increase from $86.9
million in the fourth quarter of 2015.
- GAAP gross margin was 54.5%, compared with 54.0% in the fourth
quarter of 2015.
- Non-GAAP gross margin(1) was 55.4%, excluding the impact of
$0.4 million for stock-based compensation expense and $0.5 million
for the amortization of acquisition-related intangible assets,
compared with 55.0% in the fourth quarter of 2015, excluding the
impact of $0.3 million for stock-based compensation expense and
$0.5 million for the amortization of acquisition-related intangible
assets.
- GAAP operating expenses were $39.0 million, compared with $35.1
million for the quarter ended December 31, 2015.
- Non-GAAP(1) operating expenses were $28.4 million, excluding
$10.4 million for stock-based compensation expense and $0.2 million
for deferred compensation plan expense, compared with $25.3
million, excluding $12.0 million for stock-based compensation
expense, $0.3 million for deferred compensation plan expense and a
credit of $2.5 million related to the change in fair value of
contingent consideration for a completed acquisition, for the
quarter ended December 31, 2015.
- GAAP operating income was $17.5 million, compared with $11.8
million for the quarter ended December 31, 2015.
- Non-GAAP(1) operating income was $29.0 million, excluding $10.8
million for stock-based compensation expense, $0.5 million for the
amortization of acquisition-related intangible assets and $0.2
million for deferred compensation plan expense, compared with $22.5
million, excluding $12.4 million for stock-based compensation
expense, $0.5 million for the amortization of acquisition-related
intangible assets, $0.3 million for deferred compensation plan
expense and a credit of $2.5 million related to the change in fair
value of contingent consideration for a completed acquisition, for
the quarter ended December 31, 2015.
- GAAP interest and other income, net was $0.9 million, compared
with $0.6 million for the quarter ended December 31, 2015.
- Non-GAAP(1) interest and other income, net was $0.7 million,
excluding $0.2 million for deferred compensation plan income,
compared with $0.4 million, excluding $0.2 million for deferred
compensation plan income, for the quarter ended December 31,
2015.
- GAAP net income was $16.6 million and GAAP earnings per share
were $0.39 per diluted share. Comparatively, GAAP net income was
$10.1 million and GAAP earnings per share were $0.24 per diluted
share for the quarter ended December 31, 2015.
- Non-GAAP(1) net income was $27.5 million and non-GAAP earnings
per share were $0.65 per diluted share, excluding stock-based
compensation expense, amortization of acquisition-related
intangible assets, net deferred compensation plan expense and
related tax effects, compared with non-GAAP net income of $21.1
million and non-GAAP earnings per share of $0.51 per diluted share,
excluding stock-based compensation expense, amortization of
acquisition-related intangible assets, net deferred compensation
plan expense, a credit related to the change in fair value of
contingent consideration for a completed acquisition and related
tax effects, for the quarter ended December 31, 2015.
The results for the year ended December 31, 2016
are as follows:
- Revenue was $388.7 million, a 16.7% increase from $333.1
million for the year ended December 31, 2015.
- GAAP gross margin was 54.3%, compared with 54.1% for the year
ended December 31, 2015.
- Non-GAAP gross margin(1) was 55.2%, excluding the impact of
$1.6 million for stock-based compensation expense and $2.1 million
for the amortization of acquisition-related intangible assets,
compared with 55.0% for the year ended December 31, 2015, excluding
the impact of $1.2 million for stock-based compensation expense and
$1.8 million for the amortization of acquisition-related intangible
assets.
- GAAP operating expenses were $156.4 million, compared with
$139.1 million for the year ended December 31, 2015.
- Non-GAAP(1) operating expenses were $111.9 million, excluding
$43.4 million for stock-based compensation expense and $1.1 million
for deferred compensation plan expense, compared with $101.4
million, excluding $40.4 million for stock-based compensation
expense, $0.2 million for deferred compensation plan income and a
credit of $2.5 million related to the change in fair value of
contingent consideration for a completed acquisition, for the year
ended December 31, 2015.
- GAAP operating income was $54.4 million, compared with $41.1
million for the year ended December 31, 2015.
- Non-GAAP(1) operating income was $102.6 million, excluding
$45.0 million for stock-based compensation expense, $2.1 million
for the amortization of acquisition-related intangible assets and
$1.1 million for deferred compensation plan expense, compared with
$81.7 million, excluding $41.6 million for stock-based compensation
expense, $1.8 million for the amortization of acquisition-related
intangible assets, $0.2 million for deferred compensation plan
income and a credit of $2.5 million related to the change in fair
value of contingent consideration for a completed acquisition, for
the year ended December 31, 2015.
- GAAP interest and other income, net was $2.8 million, compared
with $1.4 million for the year ended December 31, 2015.
- Non-GAAP(1) interest and other income, net was $1.6 million,
excluding $1.2 million for deferred compensation plan income,
compared with $1.8 million, excluding $0.4 million for deferred
compensation plan expense, for the year ended December 31,
2015.
- GAAP net income was $52.7 million and GAAP earnings per share
were $1.26 per diluted share. Comparatively, GAAP net income was
$35.2 million and GAAP earnings per share were $0.86 per diluted
share for the year ended December 31, 2015.
- Non-GAAP(1) net income was $96.3 million and non-GAAP earnings
per share were $2.30 per diluted share, excluding stock-based
compensation expense, amortization of acquisition-related
intangible assets, net deferred compensation plan income and
related tax effects, compared with non-GAAP net income of $77.2
million and non-GAAP earnings per share of $1.89 per diluted share,
excluding stock-based compensation expense, amortization of
acquisition-related intangible assets, net deferred compensation
plan expense, a credit related to the change in fair value of
contingent consideration for a completed acquisition and related
tax effects, for the year ended December 31, 2015.
The following is a summary of revenue by end
market for the periods indicated, estimated based on MPS’s
assessment of available end market data (in thousands):
|
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
End Market |
|
|
2016 |
|
|
2015 |
|
|
2016 |
|
|
2015 |
|
Consumer |
|
$ |
37,970 |
|
$ |
38,594 |
|
$ |
153,732 |
|
$ |
145,090 |
|
Industrial |
|
|
25,190 |
|
|
17,928 |
|
|
89,639 |
|
|
66,343 |
|
Storage and
computing |
|
|
23,405 |
|
|
14,552 |
|
|
80,562 |
|
|
56,568 |
|
Communications |
|
|
17,053 |
|
|
15,844 |
|
|
64,732 |
|
|
65,066 |
|
Total |
|
$ |
103,618 |
|
$ |
86,918 |
|
$ |
388,665 |
|
$ |
333,067 |
The following is a summary of revenue by product family for the
periods indicated (in thousands):
|
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
Product Family |
|
|
2016 |
|
|
2015 |
|
|
2016 |
|
|
2015 |
|
DC to DC |
|
$ |
93,977 |
|
$ |
77,515 |
|
$ |
350,930 |
|
$ |
299,726 |
|
Lighting Control |
|
|
9,641 |
|
|
9,403 |
|
|
37,735 |
|
|
33,341 |
|
Total |
|
$ |
103,618 |
|
$ |
86,918 |
|
$ |
388,665 |
|
$ |
333,067 |
“In the last several years, MPS has focused on
investing in new products and targeted markets,” said Michael
Hsing, CEO and founder of MPS. “Starting this year, we
believe MPS will begin to benefit from these investments which will
translate to strong revenue growth in 2018 and beyond.”
Business Outlook
The following are MPS’ financial targets for the
first quarter ending March 31, 2017:
- Revenue in the range of $98 million to $102 million.
- GAAP gross margin between 53.8% and 54.8%. Non-GAAP(1)
gross margin between 54.8% and 55.8%, which excludes an estimated
impact of stock-based compensation expenses of 0.5% and
amortization of acquisition-related intangible assets of
0.5%.
- GAAP R&D and SG&A expenses between $40.0 million and
$44.0 million. Non-GAAP(1) R&D and SG&A expenses between
$28.3 million and $30.3 million, which excludes an estimate of
stock-based compensation expenses in the range of $11.7 million to
$13.7 million.
- Total stock-based compensation expense of $12.1 million to
$14.1 million.
- Litigation expenses of $150,000 to $250,000.
- Interest and other income, net, of $300,000 to $400,000 before
foreign exchange gains or losses.
- Fully diluted shares outstanding between 42.8 million and
43.8 million before shares buyback.
(1) Non-GAAP net income, non-GAAP earnings per
share, non-GAAP gross margin, non-GAAP R&D and SG&A
expenses, non-GAAP operating expenses, non-GAAP interest and other
income, net and non-GAAP operating income differ from net income,
earnings per share, gross margin, R&D and SG&A expenses,
operating expenses, interest and other income, net and operating
income determined in accordance with GAAP (Generally Accepted
Accounting Principles in the United States). Non-GAAP net income
and non-GAAP earnings per share exclude the effect of stock-based
compensation expense, amortization of acquisition-related
intangible assets, deferred compensation plan income/expense, a
credit related to the change in fair value of contingent
consideration for a completed acquisition and related tax effects.
Non-GAAP gross margin excludes the effect of stock-based
compensation expense and amortization of acquisition-related
intangible assets. Non-GAAP operating expenses exclude the effect
of stock-based compensation expense, deferred compensation plan
income/expense and a credit related to the change in fair value of
contingent consideration for a completed acquisition.
Non-GAAP interest and other income, net excludes the effect of
deferred compensation plan income/expense. Non-GAAP operating
income excludes the effect of stock-based compensation expense,
amortization of acquisition-related intangible assets, deferred
compensation plan income/expense and a credit related to the change
in fair value of contingent consideration. Projected non-GAAP gross
margin excludes the effect of stock-based compensation expense and
amortization of acquisition-related intangible assets. Projected
non-GAAP R&D and SG&A expenses exclude the effect of
stock-based compensation expense. These non-GAAP financial measures
are not prepared in accordance with GAAP and should not be
considered as a substitute for, or superior to, measures of
financial performance prepared in accordance with GAAP. A schedule
reconciling non-GAAP financial measures is included at the end of
this press release. MPS utilizes both GAAP and non-GAAP financial
measures to assess what it believes to be its core operating
performance and to evaluate and manage its internal business and
assist in making financial operating decisions. MPS believes that
the inclusion of non-GAAP financial measures, together with GAAP
measures, provides investors with an alternative presentation
useful to investors' understanding of MPS’ core operating results
and trends. Additionally, MPS believes that the inclusion of
non-GAAP measures, together with GAAP measures, provides investors
with an additional dimension of comparability to similar companies.
However, investors should be aware that non-GAAP financial measures
utilized by other companies are not likely to be comparable in most
cases to the non-GAAP financial measures used by MPS.
Conference CallMPS plans to
conduct an investor teleconference covering its quarter and year
ended December 31, 2016 results at 2:00 p.m. PT / 5:00 p.m. ET,
February 9, 2017. To access the conference call and the following
replay of the conference call, go to
http://ir.monolithicpower.com and click on the webcast link.
From this site, you can listen to the teleconference, assuming that
your computer system is configured properly. In addition to the
webcast replay, which will be archived for all investors for one
year on the MPS website, a phone replay will be available for seven
days after the live call at (404) 537-3406, code number 56124739.
This press release and any other information related to the call
will also be posted on the website.
Safe Harbor Statement This
press release contains, and statements that will be made during the
accompanying teleconference will contain, forward-looking
statements, as that term is defined in the Private Securities
Litigation Reform Act of 1995, including, among other things, (i)
projected revenues, GAAP and non-GAAP gross margin, GAAP and
non-GAAP R&D and SG&A expenses, stock-based compensation
expenses, amortization of acquisition-related intangible assets,
litigation expenses, interest and other income and diluted shares
outstanding for the quarter ending March 31, 2017, (ii) our outlook
for the long-term prospects of the company, including our
performance against our business plan, our continued investment
into R&D, expected revenue growth, customers’ acceptance of our
new product offerings, the prospects of our new product
development, and our expectations regarding market and industry
segment trends and prospects, (iii) our ability to penetrate new
markets and expand our market share, (iv) the seasonality of our
business, (v) our ability to reduce our expenses, and (vi)
statements of the assumptions underlying or relating to any
statement described in (i), (ii), (iii), (iv), or (v). These
forward-looking statements are not historical facts or guarantees
of future performance or events, are based on current expectations,
estimates, beliefs, assumptions, goals, and objectives, and involve
significant known and unknown risks, uncertainties and other
factors that may cause actual results to be materially different
from the results expressed by these statements. Readers of this
press release and listeners to the accompanying conference call are
cautioned not to place undue reliance on any forward-looking
statements, which speak only as of the date hereof. Factors that
could cause actual results to differ include, but are not limited
to, our ability to attract new customers and retain existing
customers; acceptance of, or demand for, MPS’ products, in
particular the new products launched recently, being different than
expected; our ability to efficiently and effectively develop new
products and receive a return on our R&D expense investment;
competition generally and the increasingly competitive nature of
our industry; any market disruptions or interruptions in MPS’
schedule of new product development releases; adverse changes in
production and testing efficiency of our products; our ability to
realize the anticipated benefits of companies and products that we
acquire, and our ability to effectively and efficiently integrate
these acquired companies and products into our operations; our
ability to manage our inventory levels; adverse changes in
government regulations in foreign countries where MPS has offices
or operations; the effect of catastrophic events; adequate supply
of our products from our third-party manufacturing partners; the
risks, uncertainties and costs of litigation in which we are
involved; the outcome of any upcoming trials, hearings, motions and
appeals; the adverse impact on MPS’ financial performance if its
tax and litigation provisions are inadequate; adverse changes or
developments in the semiconductor industry generally, which is
cyclical in nature; difficulty in predicting or budgeting for
future customer demand and channel inventories, expenses and
financial contingencies; the ongoing consolidation of companies in
the semiconductor industry; and other important risk factors
identified in MPS’ Securities and Exchange Commission (SEC)
filings, including, but not limited to, our annual report on Form
10-K filed with the SEC on February 29, 2016, and our quarterly
report on Form 10-Q filed with the SEC on November 3, 2016.
The forward-looking statements in this press
release and statements made during the accompanying teleconference
represent MPS’ projections and current expectations, as of the date
hereof, not predictions of actual performance. MPS assumes no
obligation to update the information in this press release or in
the accompanying conference call.
About Monolithic Power
SystemsMonolithic Power Systems, Inc. (MPS) provides
small, highly energy efficient, easy-to-use power solutions for
systems found in industrial applications, telecom infrastructures,
cloud computing, automotive, and consumer applications. MPS'
mission is to reduce total energy consumption in its
customers' systems with green, practical, compact solutions. The
company was founded by Michael Hsing in 1997 and is headquartered
in San Jose, CA. MPS can be contacted through its website
at or its support offices around the world.
Monolithic Power Systems, MPS, and the MPS logo
are registered trademarks of Monolithic Power Systems, Inc. in the
U.S. and trademarked in certain other countries.
Condensed Consolidated Balance
Sheets(Unaudited, in thousands, except par value) |
|
|
|
|
December 31, |
|
|
|
2016 |
|
|
|
2015 |
|
ASSETS |
|
|
|
|
Current assets: |
|
|
|
|
Cash and
cash equivalents |
$ |
112,703 |
|
|
$ |
90,860 |
|
Short-term investments |
|
155,521 |
|
|
|
144,103 |
|
Accounts
receivable, net |
|
34,248 |
|
|
|
30,830 |
|
Inventories |
|
71,469 |
|
|
|
63,209 |
|
Other
current assets |
|
9,043 |
|
|
|
2,926 |
|
Total
current assets |
|
382,984 |
|
|
|
331,928 |
|
Property
and equipment, net |
|
85,171 |
|
|
|
65,359 |
|
Long-term investments |
|
5,354 |
|
|
|
5,361 |
|
Goodwill |
|
6,571 |
|
|
|
6,571 |
|
Acquisition-related intangible assets, net |
|
3,002 |
|
|
|
5,053 |
|
Deferred
tax assets, net |
|
633 |
|
|
|
672 |
|
Other
long-term assets |
|
27,411 |
|
|
|
16,341 |
|
Total
assets |
$ |
511,126 |
|
|
$ |
431,285 |
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
Current
liabilities: |
|
|
|
|
Accounts
payable |
$ |
17,427 |
|
|
$ |
13,487 |
|
Accrued
compensation and related benefits |
|
12,578 |
|
|
|
9,812 |
|
Accrued
liabilities |
|
22,916 |
|
|
|
19,984 |
|
Total
current liabilities |
|
52,921 |
|
|
|
43,283 |
|
Income
tax liabilities |
|
3,870 |
|
|
|
2,941 |
|
Other
long-term liabilities |
|
23,219 |
|
|
|
16,545 |
|
Total
liabilities |
|
80,010 |
|
|
|
62,769 |
|
Commitments and contingencies |
|
|
|
|
Stockholders' equity: |
|
|
|
|
Common
stock and additional paid-in capital, $0.001 par value; shares
authorized: |
|
|
|
|
150,000;
shares issued and outstanding: 40,793 and 39,689 |
|
|
|
|
as of
December 31, 2016 and December 31, 2015, respectively |
|
315,969 |
|
|
|
265,763 |
|
Retained
earnings |
|
119,362 |
|
|
|
101,287 |
|
Accumulated other comprehensive income (loss) |
|
(4,215 |
) |
|
|
1,466 |
|
Total
stockholders’ equity |
|
431,116 |
|
|
|
368,516 |
|
Total
liabilities and stockholders’ equity |
$ |
511,126 |
|
|
$ |
431,285 |
|
|
|
|
|
|
Condensed Consolidated Statements of
Operations(Unaudited, in thousands, except per share
amounts) |
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
Revenue |
$ |
103,618 |
|
|
$ |
86,918 |
|
|
$ |
388,665 |
|
|
$ |
333,067 |
|
Cost of revenue |
|
47,107 |
|
|
|
40,001 |
|
|
|
177,792 |
|
|
|
152,898 |
|
Gross
profit |
|
56,511 |
|
|
|
46,917 |
|
|
|
210,873 |
|
|
|
180,169 |
|
Operating
expenses: |
|
|
|
|
|
|
|
Research
and development |
|
17,974 |
|
|
|
16,734 |
|
|
|
73,643 |
|
|
|
65,787 |
|
Selling,
general and administrative |
|
21,316 |
|
|
|
18,107 |
|
|
|
83,012 |
|
|
|
72,312 |
|
Litigation expense (benefit), net |
|
(321 |
) |
|
|
283 |
|
|
|
(229 |
) |
|
|
1,000 |
|
Total
operating expenses |
|
38,969 |
|
|
|
35,124 |
|
|
|
156,426 |
|
|
|
139,099 |
|
Income from
operations |
|
17,542 |
|
|
|
11,793 |
|
|
|
54,447 |
|
|
|
41,070 |
|
Interest and other
income, net |
|
897 |
|
|
|
550 |
|
|
|
2,817 |
|
|
|
1,421 |
|
Income before income
taxes |
|
18,439 |
|
|
|
12,343 |
|
|
|
57,264 |
|
|
|
42,491 |
|
Income tax
provision |
|
1,866 |
|
|
|
2,233 |
|
|
|
4,544 |
|
|
|
7,319 |
|
Net income |
$ |
16,573 |
|
|
$ |
10,110 |
|
|
$ |
52,720 |
|
|
$ |
35,172 |
|
|
|
|
|
|
|
|
|
Net income per
share: |
|
|
|
|
|
|
|
Basic |
$ |
0.41 |
|
|
$ |
0.26 |
|
|
$ |
1.30 |
|
|
$ |
0.89 |
|
Diluted |
$ |
0.39 |
|
|
$ |
0.24 |
|
|
$ |
1.26 |
|
|
$ |
0.86 |
|
Weighted-average shares
outstanding: |
|
|
|
|
|
|
|
Basic |
|
40,739 |
|
|
|
39,615 |
|
|
|
40,436 |
|
|
|
39,470 |
|
Diluted |
|
42,404 |
|
|
|
41,445 |
|
|
|
41,915 |
|
|
|
40,869 |
|
|
|
|
|
|
|
|
|
Cash dividends declared
per common share |
$ |
0.20 |
|
|
$ |
0.20 |
|
|
$ |
0.80 |
|
|
$ |
0.80 |
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL FINANCIAL
INFORMATION |
STOCK-BASED COMPENSATION EXPENSE |
(Unaudited, in thousands) |
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
Cost of revenue |
$ |
358 |
|
|
$ |
336 |
|
|
$ |
1,575 |
|
|
$ |
1,166 |
|
Research and
development |
|
3,039 |
|
|
|
3,102 |
|
|
|
14,041 |
|
|
|
11,156 |
|
Selling, general and
administrative |
|
7,350 |
|
|
|
8,934 |
|
|
|
29,373 |
|
|
|
29,241 |
|
Total stock-based
compensation expense |
$ |
10,747 |
|
|
$ |
12,372 |
|
|
$ |
44,989 |
|
|
$ |
41,563 |
|
|
|
|
|
|
|
|
|
RECONCILIATION OF NET INCOME TO NON-GAAP NET
INCOME |
(Unaudited, in thousands, except per share
amounts) |
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
Net income |
$ |
16,573 |
|
|
$ |
10,110 |
|
|
$ |
52,720 |
|
|
$ |
35,172 |
|
Net
income as a percentage of revenue |
|
16.0 |
% |
|
|
11.6 |
% |
|
|
13.6 |
% |
|
|
10.6 |
% |
|
|
|
|
|
|
|
|
Adjustments
to reconcile net income to non-GAAP net income: |
|
|
|
|
|
|
Stock-based compensation expense |
|
10,747 |
|
|
|
12,372 |
|
|
|
44,989 |
|
|
|
41,563 |
|
Change in
fair value of contingent consideration |
|
- |
|
|
|
(2,507 |
) |
|
|
- |
|
|
|
(2,507 |
) |
Amortization of acquisition-related intangible assets |
|
512 |
|
|
|
512 |
|
|
|
2,051 |
|
|
|
1,759 |
|
Deferred
compensation plan expense (income) |
|
29 |
|
|
|
98 |
|
|
|
(188 |
) |
|
|
175 |
|
Tax
effect |
|
(364 |
) |
|
|
522 |
|
|
|
(3,265 |
) |
|
|
1,058 |
|
Non-GAAP
net income |
$ |
27,497 |
|
|
$ |
21,107 |
|
|
$ |
96,307 |
|
|
$ |
77,220 |
|
Non-GAAP
net income as a percentage of revenue |
|
26.5 |
% |
|
|
24.3 |
% |
|
|
24.8 |
% |
|
|
23.2 |
% |
|
|
|
|
|
|
|
|
Non-GAAP net income per
share: |
|
|
|
|
|
|
|
Basic |
$ |
0.67 |
|
|
$ |
0.53 |
|
|
$ |
2.38 |
|
|
$ |
1.96 |
|
Diluted |
$ |
0.65 |
|
|
$ |
0.51 |
|
|
$ |
2.30 |
|
|
$ |
1.89 |
|
|
|
|
|
|
|
|
|
Shares used
in the calculation of non-GAAP net income per share: |
|
|
|
|
|
|
Basic |
|
40,739 |
|
|
|
39,615 |
|
|
|
40,436 |
|
|
|
39,470 |
|
Diluted |
|
42,404 |
|
|
|
41,445 |
|
|
|
41,915 |
|
|
|
40,869 |
|
|
|
|
|
|
|
|
|
RECONCILIATION OF GROSS MARGIN TO NON-GAAP
GROSS MARGIN |
(Unaudited, in thousands) |
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
Gross profit |
$ |
56,511 |
|
|
$ |
46,917 |
|
|
$ |
210,873 |
|
|
$ |
180,169 |
|
Gross
margin |
|
54.5 |
% |
|
|
54.0 |
% |
|
|
54.3 |
% |
|
|
54.1 |
% |
|
|
|
|
|
|
|
|
Adjustments
to reconcile gross profit to non-GAAP gross profit: |
|
|
|
|
|
|
Stock-based compensation expense |
|
358 |
|
|
|
336 |
|
|
|
1,575 |
|
|
|
1,166 |
|
Amortization of acquisition-related intangible assets |
|
512 |
|
|
|
512 |
|
|
|
2,051 |
|
|
|
1,759 |
|
Non-GAAP gross
profit |
$ |
57,381 |
|
|
$ |
47,765 |
|
|
$ |
214,499 |
|
|
$ |
183,094 |
|
Non-GAAP gross
margin |
|
55.4 |
% |
|
|
55.0 |
% |
|
|
55.2 |
% |
|
|
55.0 |
% |
|
|
|
|
|
|
|
|
RECONCILIATION OF OPERATING EXPENSES TO
NON-GAAP OPERATING EXPENSES |
(Unaudited, in thousands) |
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
Total operating
expenses |
$ |
38,969 |
|
|
$ |
35,124 |
|
|
$ |
156,426 |
|
|
$ |
139,099 |
|
|
|
|
|
|
|
|
|
Adjustments
to reconcile total operating expenses to non-GAAP total operating
expenses: |
|
|
|
|
Stock-based compensation expense |
|
(10,389 |
) |
|
|
(12,036 |
) |
|
|
(43,414 |
) |
|
|
(40,397 |
) |
Change in
fair value of contingent consideration |
|
- |
|
|
|
2,507 |
|
|
|
- |
|
|
|
2,507 |
|
Deferred
compensation plan income (expense) |
|
(189 |
) |
|
|
(290 |
) |
|
|
(1,069 |
) |
|
|
200 |
|
Non-GAAP operating
expenses |
$ |
28,391 |
|
|
$ |
25,305 |
|
|
$ |
111,943 |
|
|
$ |
101,409 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF OPERATING INCOME TO NON-GAAP
OPERATING INCOME |
(Unaudited, in thousands) |
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
Total operating
income |
$ |
17,542 |
|
|
$ |
11,793 |
|
|
$ |
54,447 |
|
|
$ |
41,070 |
|
Operating
income as a percentage of revenue |
|
16.9 |
% |
|
|
13.6 |
% |
|
|
14.0 |
% |
|
|
12.3 |
% |
|
|
|
|
|
|
|
|
Adjustments
to reconcile total operating income to non-GAAP total operating
income: |
|
|
|
|
Stock-based compensation expense |
|
10,747 |
|
|
|
12,372 |
|
|
|
44,989 |
|
|
|
41,563 |
|
Change in
fair value of contingent consideration |
|
- |
|
|
|
(2,507 |
) |
|
|
- |
|
|
|
(2,507 |
) |
Amortization of acquisition-related intangible assets |
|
512 |
|
|
|
512 |
|
|
|
2,051 |
|
|
|
1,759 |
|
Deferred
compensation plan expense (income) |
|
189 |
|
|
|
290 |
|
|
|
1,069 |
|
|
|
(200 |
) |
Non-GAAP
operating income |
$ |
28,990 |
|
|
$ |
22,460 |
|
|
$ |
102,556 |
|
|
$ |
81,685 |
|
Non-GAAP operating
income as a percentage of revenue |
|
28.0 |
% |
|
|
25.8 |
% |
|
|
26.4 |
% |
|
|
24.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF OTHER INCOME TO NON-GAAP
OTHER INCOME |
(Unaudited, in thousands) |
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
Total interest and
other income, net |
$ |
897 |
|
|
$ |
550 |
|
|
$ |
2,817 |
|
|
$ |
1,421 |
|
|
|
|
|
|
|
|
|
Adjustments
to reconcile interest and other income to non-GAAP interest and
other income: |
|
|
|
|
Deferred
compensation plan expense (income) |
|
(160 |
) |
|
|
(192 |
) |
|
|
(1,257 |
) |
|
|
375 |
|
Non-GAAP interest and
other income, net |
$ |
737 |
|
|
$ |
358 |
|
|
$ |
1,560 |
|
|
$ |
1,796 |
|
|
|
|
|
|
|
|
|
2017 FIRST QUARTER OUTLOOK |
|
RECONCILIATION OF GROSS MARGIN TO NON-GAAP
GROSS MARGIN |
|
(Unaudited) |
|
|
Three Months
Ending |
|
|
March 31, 2017 |
|
|
Low |
|
High |
|
Gross margin |
|
53.8 |
% |
|
|
54.8 |
% |
|
Adjustments to
reconcile gross margin to non-GAAP gross margin: |
|
|
|
|
Stock-based compensation expense |
|
0.5 |
% |
|
|
0.5 |
% |
|
Amortization of acquisition-related intangible assets |
|
0.5 |
% |
|
|
0.5 |
% |
|
Non-GAAP gross
margin |
|
54.8 |
% |
|
|
55.8 |
% |
|
|
|
|
|
|
RECONCILIATION OF R&D AND SG&A EXPENSES
TO NON-GAAP R&D AND SG&A EXPENSES |
|
(Unaudited, in thousands) |
|
|
Three Months
Ending |
|
|
March 31, 2017 |
|
|
Low |
|
High |
|
R&D and SG&A
expense |
$ |
40,000 |
|
|
$ |
44,000 |
|
|
Adjustments to
reconcile R&D and SG&A expense to non-GAAP R&D and
SG&A expense: |
|
|
|
|
Stock-based compensation expense |
|
(11,700 |
) |
|
|
(13,700 |
) |
|
Non-GAAP R&D and
SG&A expense |
$ |
28,300 |
|
|
$ |
30,300 |
|
|
|
|
|
|
|
Contact:
Bernie Blegen
Chief Financial Officer
Monolithic Power Systems, Inc.
408-826-0777
investors@monolithicpower.com
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