Mar 31, 2024

Monolithic Power Q1 2024 Earnings Report

Monolithic Power Systems reported a slight revenue increase and a decrease in GAAP gross margin for Q1 2024.

Key Takeaways

Monolithic Power Systems announced its financial results for the first quarter ended March 31, 2024, with revenue up slightly by 1.5% year-over-year to $457.9 million. However, the company's GAAP gross margin decreased to 55.1% compared to 57.4% in the same quarter last year. GAAP net income also declined to $92.5 million, or $1.89 per diluted share, from $109.8 million, or $2.26 per diluted share, in Q1 2023.

Revenue increased by 1.5% year-over-year to $457.9 million.

GAAP gross margin decreased to 55.1% compared to 57.4% in the previous year.

GAAP operating income was $95.5 million, down from $124.3 million year-over-year.

GAAP net income decreased to $92.5 million, or $1.89 per diluted share.

Total Revenue
$458M
Previous year: $451M
+1.5%
EPS
$2.81
Previous year: $3
-6.3%
Gross Margin
55.1%
Previous year: 57.4%
-4.0%
Gross Profit
$252M
Previous year: $259M
-2.5%
Cash and Equivalents
$480M
Previous year: $488M
-1.5%
Free Cash Flow
$232M
Previous year: $210M
+10.5%
Total Assets
$2.95B
Previous year: $2.78B
+6.2%

Monolithic Power

Monolithic Power

Forward Guidance

For the second quarter ending June 30, 2024, MPS expects revenue between $480.0 million and $500.0 million and GAAP gross margin between 55.1% and 55.7%.

Positive Outlook

  • Revenue in the range of $480.0 million to $500.0 million.
  • GAAP gross margin between 55.1% and 55.7%.
  • Non-GAAP gross margin between 55.4% and 56.0%.
  • Other income of $5.3 million to $5.7 million before foreign exchange gains or losses.
  • Fully diluted shares outstanding between 48.8 million and 49.2 million.

Challenges Ahead

  • Stock-based compensation and related expenses of $43.2 million to $45.2 million.
  • Non-GAAP tax rate of 12.5% for 2024.
  • Cautious outlook for the second half of 2024 business conditions.
  • Continued downturn in the global economy.
  • Adverse changes in laws and government regulations.