Monolithic Power Systems, Inc. (MPS) (Nasdaq: MPWR), a leading
company in high performance analog solutions, today announced
financial results for the quarter and year ended December 31, 2018.
The Company also announced that its Board of Directors has approved
an increase in the quarterly cash dividend from $0.30 per share to
$0.40 per share. The first quarter dividend of $0.40 per share will
be paid on April 15, 2019 to all stockholders of record as of the
close of business on March 29, 2019.
The results for the quarter ended December 31,
2018 are as follows:
- Revenue was $153.5 million for the quarter ended December
31, 2018, a 4.0% decrease from $160.0 million for the quarter ended
September 30, 2018 and an 18.6 % increase from $129.4 million for
the quarter ended December 31, 2017.
- GAAP gross margin was 55.1% for the quarter ended December 31,
2018, compared with 55.0% for the quarter ended December 31,
2017.
- Non-GAAP (1) gross margin was 55.6% for the quarter ended
December 31, 2018, excluding the impact of $0.5 million for
stock-based compensation expense and $0.2 million for the
amortization of acquisition-related intangible assets, compared
with 55.7% for the quarter ended December 31, 2017, excluding the
impact of $0.4 million for stock-based compensation expense and
$0.5 million for the amortization of acquisition-related intangible
assets.
- GAAP operating expenses were $51.5 million for the quarter
ended December 31, 2018, compared with $46.1 million for the
quarter ended December 31, 2017.
- Non-GAAP (1) operating expenses were $38.7 million for the
quarter ended December 31, 2018, excluding $14.3 million for
stock-based compensation expense and $1.5 million for deferred
compensation plan income, compared with $33.9 million for the
quarter ended December 31, 2017, excluding $11.5 million for
stock-based compensation expense and $0.8 million for deferred
compensation plan expense.
- GAAP operating income was $33.1 million for the quarter ended
December 31, 2018, compared with $25.1 million for the quarter
ended December 31, 2017.
- Non-GAAP (1) operating income was $46.6 million for the quarter
ended December 31, 2018, excluding $14.8 million for stock-based
compensation expense, $0.2 million for the amortization of
acquisition-related intangible assets and $1.5 million for deferred
compensation plan income, compared with $38.2 million for the
quarter ended December 31, 2017, excluding $11.9 million for
stock-based compensation expense, $0.5 million for the amortization
of acquisition-related intangible assets and $0.8 million for
deferred compensation plan expense.
- GAAP interest and other expense, net was $0.4 million for the
quarter ended December 31, 2018, compared with interest and other
income, net of $1.6 million for the quarter ended December 31,
2017.
- Non-GAAP (1) interest and other income, net was $1.6 million
for the quarter ended December 31, 2018, excluding $2.0 million for
deferred compensation plan expense, compared with $1.0 million for
the quarter ended December 31, 2017, excluding $0.6 million for
deferred compensation plan income.
- GAAP income before income taxes was $32.7 million for the
quarter ended December 31, 2018, compared with $26.7 million for
the quarter ended December 31, 2017.
- Non-GAAP (1) income before income taxes was $48.2 million for
the quarter ended December 31, 2018, excluding $14.8 million for
stock-based compensation expense, $0.2 million for the amortization
of acquisition-related intangible assets and $0.5 million for
deferred compensation plan expense, compared with $39.2 million for
the quarter ended December 31, 2017, excluding $11.9 million for
stock-based compensation expense, $0.5 million for the amortization
of acquisition-related intangible assets, and $0.1 million for
deferred compensation plan expense.
- GAAP net income was $27.6 million and GAAP earnings per share
were $0.61 per diluted share for the quarter ended December 31,
2018. Comparatively, GAAP net income was $12.1 million and GAAP
earnings per share were $0.27 per diluted share for the quarter
ended December 31, 2017.
- Non-GAAP (1) net income was $44.6 million and non-GAAP earnings
per share were $0.99 per diluted share for the quarter ended
December 31, 2018, 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 $36.3 million and non-GAAP earnings per
share of $0.82 per diluted share for the quarter ended December 31,
2017, excluding stock-based compensation income, amortization of
acquisition-related intangible assets, net deferred compensation
plan expense and related tax effects.
The results for the year ended December 31, 2018
are as follows:
- Revenue was $582.4 million for the year ended December 31,
2018, a 23.7% increase from $470.9 million for the year ended
December 31, 2017.
- GAAP gross margin was 55.4% for the year ended December 31,
2018, compared with 54.8% for the year ended December 31,
2017.
- Non-GAAP (1) gross margin was 55.9% for the year ended
December 31, 2018, excluding the impact of $1.9 million for
stock-based compensation expense and $0.8 million for the
amortization of acquisition-related intangible assets, compared
with 55.6% for the year ended December 31, 2017, excluding the
impact of $1.7 million for stock-based compensation expense and
$2.1 million for the amortization of acquisition-related intangible
assets.
- GAAP operating expenses were $209.2 million for the year ended
December 31, 2018, compared with $180.9 million for the year ended
December 31, 2017.
- Non-GAAP (1) operating expenses were $151.1 million for
the year ended December 31, 2018, excluding $58.7 million for
stock-based compensation expense and $0.6 million for deferred
compensation plan income, compared with $127.1 million for the year
ended December 31, 2017, excluding $51.0 million for stock-based
compensation expense and $2.8 million for deferred compensation
plan expense.
- GAAP operating income was $113.5 million for the year ended
December 31, 2018, compared with $77.4 million for the year ended
December 31, 2017.
- Non-GAAP (1) operating income was $174.3 million for the year
ended December 31, 2018, excluding $60.6 million for stock-based
compensation expense, $0.8 million for the amortization of
acquisition-related intangible assets and $0.6 million for deferred
compensation plan income, compared with $134.9 million for the year
ended December 31, 2017, excluding $52.6 million for stock-based
compensation expense, $2.1 million for the amortization of
acquisition-related intangible assets and $2.8 million for deferred
compensation plan expense.
- GAAP interest and other income, net was $5.0 million for the
year ended December 31, 2018, compared with $5.5 million for the
year ended December 31, 2017.
- Non-GAAP (1) interest and other income, net was $6.0 million
for the year ended December 31, 2018, excluding $1.0 million for
deferred compensation plan expense, compared with $3.0 million for
the year ended December 31, 2017, excluding $2.5 million for
deferred compensation plan income.
- GAAP income before income taxes was $118.5 million for the year
ended December 31, 2018, compared with $82.9 million for the year
ended December 31, 2017.
- Non-GAAP (1) income before income taxes was $180.4 million for
the year ended December 31, 2018, excluding $60.6 million for
stock-based compensation expense, $0.8 million for the amortization
of acquisition-related intangible assets and $0.4 million for
deferred compensation plan expense, compared with $137.9 million
for the year ended December 31, 2017, excluding $52.6 million for
stock-based compensation expense, $2.1 million for the amortization
of acquisition-related intangible assets, and $0.2 million for
deferred compensation plan expense.
- GAAP net income was $105.3 million and GAAP earnings per share
were $2.36 per diluted share for the year ended December 31, 2018.
Comparatively, GAAP net income was $65.2 million and GAAP earnings
per share were $1.50 per diluted share for the year ended December
31, 2017.
- Non-GAAP (1) net income was $166.8 million and non-GAAP
earnings per share were $3.74 per diluted share for the year ended
December 31, 2018, 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 $127.5 million and non-GAAP earnings per
share of $2.93 per diluted share for the year ended December 31,
2017, excluding stock-based compensation income, amortization of
acquisition-related intangible assets, net deferred compensation
plan expense and related tax effects.
The following is a summary of revenue by end
market for the periods indicated (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
End Market |
|
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
Computing and
storage |
|
$ |
43,537 |
|
$ |
26,679 |
|
$ |
159,121 |
|
$ |
100,782 |
|
Automotive |
|
|
22,221 |
|
|
15,846 |
|
|
80,078 |
|
|
53,888 |
|
Industrial |
|
|
26,928 |
|
|
16,160 |
|
|
88,472 |
|
|
62,896 |
|
Communications |
|
|
20,147 |
|
|
15,857 |
|
|
70,589 |
|
|
63,606 |
|
Consumer |
|
|
40,664 |
|
|
54,888 |
|
|
184,122 |
|
|
189,757 |
|
Total |
|
$ |
153,497 |
|
$ |
129,430 |
|
$ |
582,382 |
|
$ |
470,929 |
|
|
|
|
|
|
|
|
|
|
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 |
|
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
DC to DC |
|
$ |
143,021 |
|
$ |
119,161 |
|
$ |
537,512 |
|
$ |
431,861 |
|
Lighting
Control |
|
|
10,476 |
|
|
10,269 |
|
|
44,870 |
|
|
39,068 |
|
Total |
|
$ |
153,497 |
|
$ |
129,430 |
|
$ |
582,382 |
|
$ |
470,929 |
|
|
|
|
|
|
|
|
|
|
“Despite uncertainty in the macro economy, we
expect to continue winning market share in cloud computing,
automotive and telecommunication markets. We believe our future is
bright," said Michael Hsing, CEO and founder of MPS.
Business Outlook
The following are MPS’ financial targets for the
first quarter ending March 31, 2019:
- Revenue in the range of $138 million to $144 million.
- GAAP gross margin between 54.8% and 55.4%. Non-GAAP (1) gross
margin between 55.3% and 55.9%, which excludes an estimated impact
of stock-based compensation expenses of 0.5%.
- GAAP research and development (“R&D”) and selling, general
and administrative (“SG&A”) expenses between $55 million and
$59 million. Non-GAAP (1) R&D and SG&A expenses between $38
million and $40 million, which excludes an estimate of stock-based
compensation expenses in the range of $17.0 million to $19.0
million.
- Total stock-based compensation expense of $17.6 million to
$19.6 million.
- Interest and other income, net, of $1.4 million to $1.6 million
before foreign exchange gains or losses.
- Fully diluted shares outstanding between 44.7 million and 45.7
million.
(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, non-GAAP operating income and non-GAAP income before
taxes differ from net income, earnings per share, gross margin,
R&D and SG&A expenses, operating expenses, interest and
other income, net, operating income and income before taxes
determined in accordance with Generally Accepted Accounting
Principles in the United States (GAAP). 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 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 and deferred compensation plan income/expense. 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 and deferred
compensation plan income/expense. Non-GAAP income before taxes
excludes the effect of stock-based compensation expense,
amortization of acquisition-related intangible assets and deferred
compensation plan income/expense. Projected non-GAAP gross margin
excludes the effect of stock-based compensation expense. 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 financial results
at 2:00 p.m. PT / 5:00 p.m. ET, February 12,
2019. 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 8037138. This press release and any other
information related to the call will also be posted on the
website.
Safe Harbor StatementThis 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, interest and other income, and diluted shares
outstanding, (ii) our outlook for the long-term prospects of the
company, including our performance against our business plan,
revenue growth in certain of our market segments, 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; our ability to increase market share in
our targeted markets; 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 laws and government regulations, such as
tariffs on imports of foreign goods, including in foreign countries
where MPS has offices or operations; adverse events arising from
orders of governmental entities, including such orders that impact
our customers, and adopting of new or amended accounting standards;
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 March 1, 2018 and our quarterly report on
Form 10-Q filed with the SEC on November 2, 2018. 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 based
in the United States. MPS can be contacted through its website
at www.monolithicpower.com 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.
Contact:Bernie BlegenChief Financial
OfficerMonolithic Power Systems,
Inc.408-826-0777investors@monolithicpower.com
|
|
Monolithic Power Systems, Inc. |
|
Condensed Consolidated Balance
Sheets |
|
(Unaudited, in thousands, except par value) |
|
|
|
|
December 31, |
|
|
|
2018 |
|
|
|
2017 |
|
ASSETS |
|
|
|
|
Current assets: |
|
|
|
|
Cash and
cash equivalents |
$ |
172,704 |
|
|
$ |
82,759 |
|
Short-term investments |
|
204,577 |
|
|
|
216,331 |
|
Accounts
receivable, net |
|
55,214 |
|
|
|
38,037 |
|
Inventories |
|
136,384 |
|
|
|
99,281 |
|
Other
current assets |
|
11,931 |
|
|
|
12,762 |
|
Total
current assets |
|
580,810 |
|
|
|
449,170 |
|
Property
and equipment, net |
|
150,001 |
|
|
|
144,636 |
|
Long-term investments |
|
3,241 |
|
|
|
5,256 |
|
Goodwill |
|
6,571 |
|
|
|
6,571 |
|
Acquisition-related intangible assets, net |
|
111 |
|
|
|
951 |
|
Deferred
tax assets, net |
|
16,830 |
|
|
|
15,917 |
|
Other
long-term assets |
|
35,868 |
|
|
|
30,068 |
|
Total
assets |
$ |
793,432 |
|
|
$ |
652,569 |
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
Current
liabilities: |
|
|
|
|
Accounts
payable |
$ |
22,678 |
|
|
$ |
22,813 |
|
Accrued
compensation and related benefits |
|
18,799 |
|
|
|
15,597 |
|
Accrued
liabilities |
|
38,962 |
|
|
|
27,507 |
|
Total
current liabilities |
|
80,439 |
|
|
|
65,917 |
|
Income
tax liabilities |
|
34,375 |
|
|
|
31,621 |
|
Other
long-term liabilities |
|
38,525 |
|
|
|
33,024 |
|
Total
liabilities |
|
153,339 |
|
|
|
130,562 |
|
Stockholders' equity: |
|
|
|
|
Common stock and additional paid-in capital, $0.001 par value;
shares authorized: |
|
|
|
|
150,000; shares issued and outstanding: 42,505 and 41,614,
respectively |
|
450,908 |
|
|
|
376,586 |
|
Retained
earnings |
|
194,728 |
|
|
|
143,608 |
|
Accumulated other comprehensive income (loss) |
|
(5,543 |
) |
|
|
1,813 |
|
Total
stockholders’ equity |
|
640,093 |
|
|
|
522,007 |
|
Total
liabilities and stockholders’ equity |
$ |
793,432 |
|
|
$ |
652,569 |
|
|
|
|
|
|
Monolithic Power Systems, Inc. |
Condensed Consolidated Statements of
Operations |
(Unaudited, in thousands, except per share
amounts) |
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
|
|
2017 |
|
Revenue |
$ |
153,497 |
|
|
$ |
129,430 |
|
|
$ |
582,382 |
|
|
$ |
470,929 |
|
Cost of
revenue |
|
68,904 |
|
|
|
58,269 |
|
|
|
259,714 |
|
|
|
212,646 |
|
Gross
profit |
|
84,593 |
|
|
|
71,161 |
|
|
|
322,668 |
|
|
|
258,283 |
|
Operating
expenses: |
|
|
|
|
|
|
|
Research and development |
|
22,735 |
|
|
|
21,730 |
|
|
|
93,455 |
|
|
|
82,359 |
|
Selling, general and administrative |
|
28,372 |
|
|
|
24,038 |
|
|
|
113,803 |
|
|
|
97,257 |
|
Litigation expense, net |
|
409 |
|
|
|
340 |
|
|
|
1,922 |
|
|
|
1,243 |
|
Total
operating expenses |
|
51,516 |
|
|
|
46,108 |
|
|
|
209,180 |
|
|
|
180,859 |
|
Income
from operations |
|
33,077 |
|
|
|
25,053 |
|
|
|
113,488 |
|
|
|
77,424 |
|
Interest
and other income (expense), net |
|
(393 |
) |
|
|
1,647 |
|
|
|
4,994 |
|
|
|
5,520 |
|
Income
before income taxes |
|
32,684 |
|
|
|
26,700 |
|
|
|
118,482 |
|
|
|
82,944 |
|
Income
tax provision |
|
5,046 |
|
|
|
14,629 |
|
|
|
13,214 |
|
|
|
17,741 |
|
Net
income |
$ |
27,638 |
|
|
$ |
12,071 |
|
|
$ |
105,268 |
|
|
$ |
65,203 |
|
|
|
|
|
|
|
|
|
Net income per
share: |
|
|
|
|
|
|
|
Basic |
$ |
0.65 |
|
|
$ |
0.29 |
|
|
$ |
2.49 |
|
|
$ |
1.58 |
|
Diluted |
$ |
0.61 |
|
|
$ |
0.27 |
|
|
$ |
2.36 |
|
|
$ |
1.50 |
|
Weighted-average shares outstanding: |
|
|
|
|
|
|
|
Basic |
|
42,467 |
|
|
|
41,574 |
|
|
|
42,247 |
|
|
|
41,350 |
|
Diluted |
|
45,058 |
|
|
|
44,160 |
|
|
|
44,602 |
|
|
|
43,578 |
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL FINANCIAL
INFORMATION |
STOCK-BASED COMPENSATION EXPENSE |
(Unaudited, in thousands) |
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
|
|
2017 |
|
Cost of revenue |
$ |
504 |
|
|
$ |
391 |
|
|
$ |
1,888 |
|
|
$ |
1,654 |
|
Research and
development |
|
3,822 |
|
|
|
3,519 |
|
|
|
15,990 |
|
|
|
14,816 |
|
Selling, general and
administrative |
|
10,516 |
|
|
|
7,948 |
|
|
|
42,729 |
|
|
|
36,147 |
|
Total stock-based
compensation expense |
$ |
14,842 |
|
|
$ |
11,858 |
|
|
$ |
60,607 |
|
|
$ |
52,617 |
|
|
|
|
|
|
|
|
|
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, |
|
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
|
|
2017 |
|
Net income |
$ |
27,638 |
|
|
$ |
12,071 |
|
|
$ |
105,268 |
|
|
$ |
65,203 |
|
Net income as a
percentage of revenue |
|
18.0 |
% |
|
|
9.3 |
% |
|
|
18.1 |
% |
|
|
13.8 |
% |
|
|
|
|
|
|
|
|
Adjustments
to reconcile net income to non-GAAP net income: |
|
|
|
|
|
|
Stock-based
compensation expense |
|
14,842 |
|
|
|
11,858 |
|
|
|
60,607 |
|
|
|
52,617 |
|
Amortization of
acquisition-related intangible assets |
|
197 |
|
|
|
513 |
|
|
|
841 |
|
|
|
2,051 |
|
Deferred
compensation plan expense |
|
458 |
|
|
|
148 |
|
|
|
431 |
|
|
|
238 |
|
Tax
effect |
|
1,432 |
|
|
|
11,688 |
|
|
|
(313 |
) |
|
|
7,402 |
|
Non-GAAP net
income |
$ |
44,567 |
|
|
$ |
36,278 |
|
|
$ |
166,834 |
|
|
$ |
127,511 |
|
Non-GAAP net
income as a percentage of revenue |
|
29.0 |
% |
|
|
28.0 |
% |
|
|
28.6 |
% |
|
|
27.1 |
% |
|
|
|
|
|
|
|
|
Non-GAAP net income per
share: |
|
|
|
|
|
|
|
Basic |
$ |
1.05 |
|
|
$ |
0.87 |
|
|
$ |
3.95 |
|
|
$ |
3.08 |
|
Diluted |
$ |
0.99 |
|
|
$ |
0.82 |
|
|
$ |
3.74 |
|
|
$ |
2.93 |
|
|
|
|
|
|
|
|
|
Shares used
in the calculation of non-GAAP net income per share: |
|
|
|
|
|
|
Basic |
|
42,467 |
|
|
|
41,574 |
|
|
|
42,247 |
|
|
|
41,350 |
|
Diluted |
|
45,058 |
|
|
|
44,160 |
|
|
|
44,602 |
|
|
|
43,578 |
|
|
|
|
|
|
|
|
|
RECONCILIATION OF GROSS MARGIN TO NON-GAAP
GROSS MARGIN |
(Unaudited, in thousands) |
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
|
|
2017 |
|
Gross profit |
$ |
84,593 |
|
|
$ |
71,161 |
|
|
$ |
322,668 |
|
|
$ |
258,283 |
|
Gross
margin |
|
55.1 |
% |
|
|
55.0 |
% |
|
|
55.4 |
% |
|
|
54.8 |
% |
|
|
|
|
|
|
|
|
Adjustments
to reconcile gross profit to non-GAAP gross profit: |
|
|
|
|
|
|
Stock-based
compensation expense |
|
504 |
|
|
|
391 |
|
|
|
1,888 |
|
|
|
1,654 |
|
Amortization of
acquisition-related intangible assets |
|
197 |
|
|
|
513 |
|
|
|
841 |
|
|
|
2,051 |
|
Non-GAAP gross
profit |
$ |
85,294 |
|
|
$ |
72,065 |
|
|
$ |
325,397 |
|
|
$ |
261,988 |
|
Non-GAAP gross
margin |
|
55.6 |
% |
|
|
55.7 |
% |
|
|
55.9 |
% |
|
|
55.6 |
% |
|
|
|
|
|
|
|
|
RECONCILIATION OF OPERATING EXPENSES TO
NON-GAAP OPERATING EXPENSES |
(Unaudited, in thousands) |
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
|
|
2017 |
|
Total operating
expenses |
$ |
51,516 |
|
|
$ |
46,108 |
|
|
$ |
209,180 |
|
|
$ |
180,859 |
|
|
|
|
|
|
|
|
|
Adjustments
to reconcile total operating expenses to non-GAAP total operating
expenses: |
|
|
|
|
Stock-based
compensation expense |
|
(14,338 |
) |
|
|
(11,467 |
) |
|
|
(58,719 |
) |
|
|
(50,963 |
) |
Deferred
compensation plan income (expense) |
|
1,513 |
|
|
|
(776 |
) |
|
|
591 |
|
|
|
(2,769 |
) |
Non-GAAP operating
expenses |
$ |
38,691 |
|
|
$ |
33,865 |
|
|
$ |
151,052 |
|
|
$ |
127,127 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF OPERATING INCOME TO NON-GAAP
OPERATING INCOME |
(Unaudited, in thousands) |
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
|
|
2017 |
|
Total operating
income |
$ |
33,077 |
|
|
$ |
25,053 |
|
|
$ |
113,488 |
|
|
$ |
77,424 |
|
|
|
|
|
|
|
|
|
Adjustments
to reconcile total operating income to non-GAAP total operating
income: |
|
|
|
|
Stock-based
compensation expense |
|
14,842 |
|
|
|
11,858 |
|
|
|
60,607 |
|
|
|
52,617 |
|
Amortization of
acquisition-related intangible assets |
|
197 |
|
|
|
513 |
|
|
|
841 |
|
|
|
2,051 |
|
Deferred
compensation plan (income) expense |
|
(1,513 |
) |
|
|
776 |
|
|
|
(591 |
) |
|
|
2,769 |
|
Non-GAAP operating
income |
$ |
46,603 |
|
|
$ |
38,200 |
|
|
$ |
174,345 |
|
|
$ |
134,861 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF INTEREST AND OTHER INCOME
(EXPENSE), NET, TO NON-GAAP INTEREST AND OTHER INCOME,
NET |
(Unaudited, in thousands) |
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
|
|
2017 |
|
Total interest and
other income (expense), net |
$ |
(393 |
) |
|
$ |
1,647 |
|
|
$ |
4,994 |
|
|
$ |
5,520 |
|
|
|
|
|
|
|
|
|
Adjustments
to reconcile interest and other income (expense), net, to non-GAAP
interest and other income, net: |
|
|
|
|
Deferred
compensation plan (income) expense |
|
1,971 |
|
|
|
(628 |
) |
|
|
1,022 |
|
|
|
(2,531 |
) |
Non-GAAP interest and
other income, net |
$ |
1,578 |
|
|
$ |
1,019 |
|
|
$ |
6,016 |
|
|
$ |
2,989 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF INCOME BEFORE INCOME TAXES
TO NON-GAAP INCOME BEFORE INCOME TAXES |
(Unaudited, in thousands) |
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
|
|
2017 |
|
Total income before
income taxes |
$ |
32,684 |
|
|
$ |
26,700 |
|
|
$ |
118,482 |
|
|
$ |
82,944 |
|
|
|
|
|
|
|
|
|
Adjustments
to reconcile income before income taxes to non-GAAP income before
income taxes: |
|
|
|
|
Stock-based
compensation expense |
|
14,842 |
|
|
|
11,858 |
|
|
|
60,607 |
|
|
|
52,617 |
|
Amortization of
acquisition-related intangible assets |
|
197 |
|
|
|
513 |
|
|
|
841 |
|
|
|
2,051 |
|
Deferred
compensation plan expense |
|
458 |
|
|
|
148 |
|
|
|
431 |
|
|
|
238 |
|
Non-GAAP income before
income taxes |
$ |
48,181 |
|
|
$ |
39,219 |
|
|
$ |
180,361 |
|
|
$ |
137,850 |
|
|
|
|
|
|
|
|
|
2019 FIRST QUARTER OUTLOOK |
|
RECONCILIATION OF GROSS MARGIN TO NON-GAAP
GROSS MARGIN |
|
(Unaudited) |
|
|
Three Months
Ending |
|
|
March 31, 2019 |
|
|
Low |
|
High |
|
Gross margin |
|
54.8 |
% |
|
|
55.4 |
% |
|
Adjustments to
reconcile gross margin to non-GAAP gross margin: |
|
|
|
|
Stock-based
compensation expense |
|
0.5 |
% |
|
|
0.5 |
% |
|
Non-GAAP gross
margin |
|
55.3 |
% |
|
|
55.9 |
% |
|
|
|
|
|
|
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, 2019 |
|
|
Low |
|
High |
|
R&D and SG&A
expense |
$ |
55,000 |
|
|
$ |
59,000 |
|
|
Adjustments to
reconcile R&D and SG&A expense to non-GAAP R&D and
SG&A expense: |
|
|
|
|
Stock-based
compensation expense |
|
(17,000 |
) |
|
|
(19,000 |
) |
|
Non-GAAP R&D and
SG&A expense |
$ |
38,000 |
|
|
$ |
40,000 |
|
|
|
|
|
|
|
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