Sep 30, 2022

Monolithic Power Q3 2022 Earnings Report

Monolithic Power Systems reported strong Q3 2022 results with revenue up 53.1% year-over-year.

Key Takeaways

Monolithic Power Systems announced its financial results for the quarter ended September 30, 2022, with revenue reaching $495.4 million, a 53.1% increase compared to the same quarter last year. GAAP net income was $124.3 million, or $2.57 per diluted share, while non-GAAP net income was $170.7 million, or $3.53 per diluted share.

Revenue was $495.4 million, up 53.1% year-over-year.

GAAP gross margin was 58.7%, compared to 57.6% in the same quarter last year.

GAAP operating income was $151.9 million, compared to $77.1 million in the same quarter last year.

GAAP net income was $124.3 million, or $2.57 per diluted share.

Total Revenue
$495M
Previous year: $324M
+53.1%
EPS
$3.53
Previous year: $2.06
+71.4%
Gross Margin
58.7%
Previous year: 57.6%
+1.9%
Gross Profit
$291M
Previous year: $186M
+56.1%
Cash and Equivalents
$316M
Previous year: $226M
+39.9%
Free Cash Flow
-$25.5M
Previous year: $99.2M
-125.7%
Total Assets
$1.93B
Previous year: $1.5B
+29.1%

Monolithic Power

Monolithic Power

Forward Guidance

MPS provided financial targets for the fourth quarter ending December 31, 2022, including revenue in the range of $450.0 million to $470.0 million and GAAP gross margin between 58.1% and 58.7%.

Positive Outlook

  • Revenue in the range of $450.0 million to $470.0 million.
  • GAAP gross margin between 58.1% and 58.7%.
  • Non-GAAP gross margin between 58.3% and 58.9%, excluding stock-based compensation expenses.
  • Interest income of $1.1 million to $1.5 million.
  • Fully diluted shares outstanding between 48.2 million and 49.2 million.

Challenges Ahead

  • GAAP research and development and selling, general and administrative expenses between $131.0 million and $135.0 million.
  • Non-GAAP R&D and SG&A expenses between $94.4 million and $96.4 million, excluding stock-based compensation expenses.
  • Total stock-based compensation expense of $37.7 million to $39.7 million.
  • Litigation expense of $1.3 million to $1.7 million.
  • Business conditions are softening.