Jun 30, 2022

Monolithic Power Q2 2022 Earnings Report

Monolithic Power Systems reported strong Q2 2022 results with significant revenue growth.

Key Takeaways

Monolithic Power Systems announced financial results for the quarter ended June 30, 2022, with revenue reaching $461.0 million, a 57.2% increase compared to the same quarter last year. GAAP net income was $114.7 million, or $2.37 per diluted share, compared to $55.2 million, or $1.16 per diluted share, for the quarter ended June 30, 2021.

Revenue increased by 57.2% year-over-year, reaching $461.0 million.

GAAP gross margin was 58.8%, compared to 56.0% for the quarter ended June 30, 2021.

GAAP net income was $114.7 million, or $2.37 per diluted share.

Non-GAAP net income was $157.0 million, or $3.25 per diluted share.

Total Revenue
$461M
Previous year: $293M
+57.2%
EPS
$3.25
Previous year: $1.81
+79.6%
Gross Margin
58.8%
Previous year: 56%
+5.0%
Gross Profit
$271M
Previous year: $164M
+65.0%
Cash and Equivalents
$570M
Previous year: $220M
+158.8%
Free Cash Flow
$93.4M
Previous year: $57.6M
+62.0%
Total Assets
$2.72B
Previous year: $1.37B
+98.3%

Monolithic Power

Monolithic Power

Forward Guidance

MPS provided financial targets for the third quarter ending September 30, 2022.

Positive Outlook

  • Revenue in the range of $480.0 million to $500.0 million.
  • GAAP gross margin between 58.4% and 59.0%.
  • Non-GAAP gross margin between 58.7% and 59.3%, excluding stock-based compensation expenses.
  • Interest and other income of $1.3 million to $1.7 million before foreign exchange gains or losses.
  • Fully diluted shares outstanding between 47.9 million and 48.9 million.

Challenges Ahead

  • GAAP research and development and selling, general and administrative expenses between $136.2 million and $140.2 million.
  • Non-GAAP R&D and SG&A expenses between $94.7 million and $96.7 million, excluding estimated stock-based compensation expenses.
  • Total stock-based compensation expense of $42.8 million to $44.8 million.
  • Litigation expense of $2.3 million to $2.7 million.
  • Unspecified foreign exchange gains or losses.