Jun 30, 2023

Monolithic Power Q2 2023 Earnings Report

Monolithic Power Systems reported a decrease in revenue and net income for Q2 2023.

Key Takeaways

Monolithic Power Systems (MPS) announced its financial results for the quarter ended June 30, 2023, with revenue at $441.1 million, a 4.3% decrease compared to the same quarter last year. GAAP net income was $99.5 million, or $2.04 per diluted share, also down from $114.7 million, or $2.37 per diluted share, in Q2 2022.

Revenue was $441.1 million, a 4.3% decrease year-over-year.

GAAP gross margin was 56.1%, compared to 58.8% in the same quarter last year.

GAAP operating income was $112.3 million, down from $141.9 million year-over-year.

GAAP net income was $99.5 million, or $2.04 per diluted share, compared to $114.7 million, or $2.37 per diluted share, in Q2 2022.

Total Revenue
$441M
Previous year: $461M
-4.3%
EPS
$2.82
Previous year: $3.25
-13.2%
Gross Margin
56.1%
Previous year: 58.8%
-4.6%
Gross Profit
$248M
Previous year: $271M
-8.6%
Cash and Equivalents
$507M
Previous year: $570M
-11.1%
Free Cash Flow
$82.4M
Previous year: $93.4M
-11.8%
Total Assets
$2.22B
Previous year: $2.72B
-18.4%

Monolithic Power

Monolithic Power

Forward Guidance

For the third quarter ending September 30, 2023, MPS expects revenue in the range of $464.0 million to $484.0 million and GAAP gross margin between 55.5% and 56.1%.

Positive Outlook

  • Revenue in the range of $464.0 million to $484.0 million.
  • GAAP gross margin between 55.5% and 56.1%.
  • Non-GAAP gross margin between 55.7% and 56.3%, excluding stock-based compensation expenses.
  • GAAP operating expenses between $129.4 million and $133.4 million.
  • Interest and other income of $3.0 million to $3.4 million.

Challenges Ahead

  • Non-GAAP operating expenses between $96.9 million and $98.9 million, excluding stock-based compensation expenses.
  • Total stock-based compensation expenses of $33.5 million to $35.5 million.
  • Fully diluted shares outstanding between 48.6 million and 49.0 million.
  • Unspecified risks associated with forward-looking statements.
  • Potential impact of global economic factors and geopolitical uncertainties.