Sep 30, 2023

Monolithic Power Q3 2023 Earnings Report

Monolithic Power Systems' financial performance decreased slightly compared to the previous year, but increased sequentially.

Key Takeaways

Monolithic Power Systems reported revenue of $474.9 million for Q3 2023, a 7.6% increase from the previous quarter and a 4.1% decrease from Q3 2022. GAAP net income was $121.2 million, or $2.48 per diluted share, compared to $124.3 million, or $2.57 per diluted share, in Q3 2022.

Revenue was $474.9 million, a 7.6% increase sequentially but a 4.1% decrease year-over-year.

GAAP gross margin was 55.5%, compared to 58.7% in the same quarter last year.

GAAP operating income was $135.6 million, compared to $151.9 million in the same quarter last year.

GAAP net income was $121.2 million, or $2.48 per diluted share.

Total Revenue
$475M
Previous year: $495M
-4.1%
EPS
$3.08
Previous year: $3.53
-12.7%
Gross Margin
55.5%
Previous year: 58.7%
-5.5%
Gross Profit
$264M
Previous year: $291M
-9.4%
Cash and Equivalents
$1.04B
Previous year: $316M
+229.6%
Free Cash Flow
$149M
Previous year: -$25.5M
-684.4%
Total Assets
$2.33B
Previous year: $1.93B
+20.6%

Monolithic Power

Monolithic Power

Forward Guidance

For the fourth quarter ending December 31, 2023, MPS expects revenue in the range of $442.0 million to $462.0 million and GAAP gross margin between 55.2% and 55.8%.

Positive Outlook

  • Revenue in the range of $442.0 million to $462.0 million.
  • GAAP gross margin between 55.2% and 55.8%.
  • Non-GAAP gross margin between 55.4% and 56.0%, excluding stock-based compensation expenses.
  • GAAP operating expenses between $127.1 million and $131.1 million.
  • Interest and other income of $4.1 million to $4.5 million.

Challenges Ahead

  • Visibility to remain limited in the short term.
  • Global economic downturn could impact results.
  • Adverse changes in laws and government regulations.
  • Effect of export controls and trade sanctions.
  • Competition and industry cyclicality.