Jun 30, 2021

Monolithic Power Q2 2021 Earnings Report

Monolithic Power Systems' financial results announced for Q2 2021, demonstrating strong revenue growth and improved profitability.

Key Takeaways

Monolithic Power Systems reported a strong second quarter in 2021, with revenue reaching $293.3 million, a 57.5% increase compared to the same quarter last year. GAAP net income was $55.2 million, or $1.16 per diluted share, up from $30.2 million, or $0.64 per diluted share, in Q2 2020.

Revenue increased by 57.5% year-over-year, reaching $293.3 million.

GAAP gross margin improved to 56.0% compared to 55.1% in the same quarter last year.

GAAP operating income significantly increased to $60.6 million from $28.0 million year-over-year.

GAAP net income rose to $55.2 million, or $1.16 per diluted share, compared to $30.2 million, or $0.64 per diluted share, in the prior year.

Total Revenue
$293M
Previous year: $186M
+57.5%
EPS
$1.81
Previous year: $1.08
+67.6%
Gross Margin
56%
Previous year: 55.1%
+1.6%
Gross Profit
$164M
Previous year: $103M
+60.1%
Cash and Equivalents
$220M
Previous year: $156M
+40.7%
Free Cash Flow
$57.6M
Previous year: $44.7M
+28.8%
Total Assets
$1.37B
Previous year: $1.07B
+28.2%

Monolithic Power

Monolithic Power

Forward Guidance

For the third quarter ending September 30, 2021, MPS expects revenue in the range of $309 million to $321 million and GAAP gross margin to be in the range of 57.3% to 57.9%, including a one-time benefit from a litigation settlement.

Positive Outlook

  • Revenue is projected to be between $309 million and $321 million.
  • GAAP gross margin is expected to be in the range of 57.3% to 57.9%, including a one-time benefit.
  • Non-GAAP gross margin is expected to be in the range of 57.6% to 58.2%, including a one-time benefit.
  • Interest income is projected to be $1.0 million to $1.4 million.
  • The company is well positioned to accelerate future revenue growth with planned capacity expansion and new parts released into production.

Challenges Ahead

  • GAAP R&D and SG&A expenses are projected to be between $104.1 million and $108.1 million.
  • Litigation expenses are expected to range between $2.3 million and $2.7 million.
  • Total stock-based compensation expense is expected to be $31.2 million to $33.2 million.
  • Fully diluted shares outstanding are expected to be between 47.4 million and 48.4 million.
  • Non-GAAP R&D and SG&A expenses are projected to be between $73.9 million and $75.9 million, excluding stock-based compensation.