Dec 31, 2021

Monolithic Power Q4 2021 Earnings Report

Monolithic Power Systems reported strong growth in revenue and earnings for Q4 2021, driven by increased capacity and new product ramps.

Key Takeaways

Monolithic Power Systems (MPS) announced its Q4 and full-year 2021 financial results, demonstrating significant revenue and earnings growth. Q4 revenue reached $336.5 million, a 44.4% increase year-over-year, while GAAP net income was $72.7 million, or $1.51 per diluted share. The company's performance was supported by a 40% increase in fab and assembly capacity.

Revenue for Q4 2021 was $336.5 million, up 44.4% year-over-year.

GAAP gross margin for Q4 2021 was 57.6%, compared to 55.3% in Q4 2020.

GAAP net income for Q4 2021 was $72.7 million, or $1.51 per diluted share, compared to $42.9 million, or $0.90 per diluted share, in Q4 2020.

The board of directors approved an increase in the quarterly cash dividend from $0.60 per share to $0.75 per share.

Total Revenue
$337M
Previous year: $233M
+44.4%
EPS
$2.12
Previous year: $1.31
+61.8%
Gross Margin
57.6%
Previous year: 55.3%
+4.2%
Gross Profit
$194M
Previous year: $129M
+50.6%
Cash and Equivalents
$189M
Previous year: $335M
-43.5%
Free Cash Flow
$10.6M
Previous year: $68.2M
-84.4%
Total Assets
$1.59B
Previous year: $1.21B
+31.2%

Monolithic Power

Monolithic Power

Forward Guidance

For the first quarter ending March 31, 2022, MPS projects revenue between $354.0 million and $366.0 million and GAAP gross margin between 57.4% and 58.0%.

Positive Outlook

  • Revenue in the range of $354.0 million to $366.0 million.
  • GAAP gross margin between 57.4% and 58.0%.
  • Non-GAAP gross margin between 57.7% and 58.3%, excluding stock-based compensation expenses.
  • Interest income of $1.0 million to $1.4 million.
  • Fully diluted shares outstanding between 47.8 million and 48.8 million.

Challenges Ahead

  • GAAP research and development and selling, general and administrative expenses between $119.2 million and $123.2 million.
  • Non-GAAP R&D and SG&A expenses between $83.4 million and $85.4 million, excluding stock-based compensation expenses.
  • Total stock-based compensation expense of $36.9 million to $38.9 million.
  • Litigation expense of $2.3 million to $2.7 million.
  • Potential impact of stock-based compensation expenses on gross margin and R&D and SG&A expenses.