Mar 31, 2020

Monolithic Power Q1 2020 Earnings Report

Monolithic Power Systems reported earnings for the first quarter of 2020.

Key Takeaways

Monolithic Power Systems announced revenue of $165.8 million for the quarter ended March 31, 2020, a 0.6% decrease from the previous quarter and a 17.3% increase year-over-year. GAAP earnings per share were $0.77, while non-GAAP earnings per share were $0.95.

Revenue was $165.8 million, a 0.6% decrease from the previous quarter and a 17.3% increase year-over-year.

GAAP gross margin was 55.2%, consistent with the same quarter last year.

GAAP operating income was $31.0 million, compared to $21.7 million for the same quarter last year.

GAAP net income was $35.8 million, or $0.77 per diluted share.

Total Revenue
$166M
Previous year: $141M
+17.3%
EPS
$0.95
Previous year: $0.84
+13.1%
Gross Margin
55.2%
Previous year: 55.2%
+0.0%
Gross Profit
$91.5M
Previous year: $78M
+17.3%
Cash and Equivalents
$155M
Previous year: $182M
-14.8%
Free Cash Flow
$41.5M
Previous year: -$19.5M
-312.2%
Total Assets
$1.01B
Previous year: $848M
+18.8%

Monolithic Power

Monolithic Power

Forward Guidance

MPS expects revenue in the range of $167 million to $173 million for the second quarter ending June 30, 2020, with a GAAP gross margin between 55.0% and 55.6%.

Positive Outlook

  • Revenue in the range of $167 million to $173 million.
  • GAAP gross margin between 55.0% and 55.6%.
  • Non-GAAP gross margin between 55.3% and 55.9%, excluding stock-based compensation expenses.
  • Interest income of $1.7 million to $1.9 million.
  • Fully diluted shares outstanding between 45.8 million and 47.8 million.

Challenges Ahead

  • GAAP research and development and selling, general and administrative expenses between $60.9 million and $64.9 million.
  • Non-GAAP R&D and SG&A expenses between $43.4 million and $45.4 million, excluding stock-based compensation expenses.
  • Total stock-based compensation expense of $18.1 million to $20.1 million.
  • Litigation expenses ranging between $1.7 million and $2.1 million.
  • Uncertainty due to the macro-economic environment.