Mar 31, 2021

Monolithic Power Q1 2021 Earnings Report

Monolithic Power Systems' Q1 2021 earnings were released, revealing a substantial revenue increase and improved profitability compared to the previous year.

Key Takeaways

Monolithic Power Systems (MPS) announced strong financial results for the first quarter ended March 31, 2021, with revenue reaching $254.5 million, a 53.5% increase year-over-year. The company's GAAP net income was $45.4 million, or $0.95 per diluted share, compared to $35.8 million, or $0.77 per diluted share, in the same quarter of the previous year. MPS provided financial targets for the second quarter ending June 30, 2021, including revenue in the range of $274 million to $286 million.

Revenue increased by 53.5% year-over-year, reaching $254.5 million.

GAAP gross margin was 55.4%, slightly up from 55.2% in the same quarter last year.

GAAP operating income increased to $46.1 million, compared to $31.0 million in the prior year.

GAAP net income was $45.4 million, or $0.95 per diluted share, compared to $35.8 million, or $0.77 per diluted share, in the prior year.

Total Revenue
$254M
Previous year: $166M
+53.5%
EPS
$1.46
Previous year: $0.95
+53.7%
Gross Margin
55.4%
Previous year: 55.2%
+0.4%
Gross Profit
$141M
Previous year: $91.5M
+54.2%
Cash and Equivalents
$36.5M
Previous year: $155M
-76.4%
Free Cash Flow
$58.1M
Previous year: $41.5M
+40.1%
Total Assets
$1.72B
Previous year: $1.01B
+70.6%

Monolithic Power

Monolithic Power

Forward Guidance

MPS projects revenue between $274 million and $286 million for the second quarter ending June 30, 2021, with GAAP gross margin between 55.1% and 55.7%.

Positive Outlook

  • Revenue in the range of $274 million to $286 million.
  • GAAP gross margin between 55.1% and 55.7%.
  • Non-GAAP gross margin between 55.5% and 56.1%, excluding stock-based compensation expenses.
  • Interest income of $1.3 million to $1.7 million.
  • Fully diluted shares outstanding between 47.3 million and 48.3 million.

Challenges Ahead

  • GAAP research and development and selling, general and administrative expenses between $95.9 million and $99.9 million.
  • Non-GAAP R&D and SG&A expenses between $65.5 million and $67.5 million, excluding estimated stock-based compensation expenses.
  • Total stock-based compensation expense of $31.4 million to $33.4 million.
  • Litigation expenses ranging between $2.3 million and $2.7 million.
  • Unspecified risks and uncertainties related to forward-looking statements.