Mar 31, 2023

Monolithic Power Q1 2023 Earnings Report

Monolithic Power Systems reported earnings for Q1 2023, with revenue increasing year-over-year but decreasing from the previous quarter. The company's GAAP and non-GAAP profitability metrics showed improvement compared to the previous year.

Key Takeaways

Monolithic Power Systems (MPS) announced its Q1 2023 financial results, revealing a 19.4% increase in revenue compared to Q1 2022, reaching $451.1 million, but a slight decrease compared to the previous quarter. GAAP net income increased to $109.8 million or $2.26 per diluted share, compared to $79.6 million or $1.65 per diluted share for the same period last year. The company remains cautious about near-term business conditions but is focused on long-term growth.

Revenue for Q1 2023 was $451.1 million, up 19.4% year-over-year but down 1.9% from the previous quarter.

GAAP gross margin was 57.4% compared to 57.9% for the quarter ended March 31, 2022.

GAAP operating income increased to $124.3 million, compared to $96.1 million for the same quarter last year.

GAAP net income was $109.8 million, or $2.26 per diluted share, compared to $79.6 million, or $1.65 per diluted share, for the same quarter last year.

Total Revenue
$451M
Previous year: $378M
+19.4%
EPS
$3
Previous year: $2.45
+22.4%
Gross Margin
57.4%
Previous year: 57.9%
-0.9%
Gross Profit
$259M
Previous year: $219M
+18.3%
Cash and Equivalents
$488M
Previous year: $382M
+27.8%
Free Cash Flow
$210M
Previous year: $80.5M
+160.7%
Total Assets
$2.78B
Previous year: $2.3B
+20.9%

Monolithic Power

Monolithic Power

Forward Guidance

MPS anticipates revenue between $430.0 million and $450.0 million for the second quarter ending June 30, 2023, with a GAAP gross margin between 55.9% and 56.5%.

Positive Outlook

  • Revenue is expected to be in the range of $430.0 million to $450.0 million.
  • GAAP gross margin is projected to be between 55.9% and 56.5%.
  • Non-GAAP gross margin is expected to be between 56.2% and 56.8%, excluding stock-based compensation expenses.
  • Interest and other income is projected to be $3.8 million to $4.2 million.
  • Fully diluted shares outstanding are expected to be between 48.6 million and 49.0 million.

Challenges Ahead

  • The company remains cautious about near-term business conditions.
  • Stock-based compensation expenses are estimated to be between $37.6 million and $39.6 million.
  • GAAP research and development and selling, general and administrative expenses are projected to be between $132.5 million and $136.5 million.
  • Non-GAAP R&D and SG&A expenses are projected to be between $94.9 million and $96.9 million, excluding stock-based compensation expenses.
  • Total stock-based compensation expenses are projected to be $38.8 million to $40.8 million.