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Mar 31, 2023

Power Integrations Q1 2023 Earnings Report

Reported revenues of $106.3 million and GAAP earnings of $0.12 per diluted share.

Key Takeaways

Power Integrations reported first-quarter revenues of $106.3 million, a 42% decrease compared to the first quarter of 2022. GAAP earnings per diluted share were $0.12, while non-GAAP earnings per diluted share were $0.25. The company's CEO indicated that revenues have bottomed and a cyclical recovery is underway.

First-quarter revenues were $106.3 million, in line with expectations.

Sell-through exceeded sell-in, reducing distributor inventories.

The company is gaining share in various end-markets and making progress on growth initiatives.

Introduced first 900-volt GaN products for industrial and EV applications.

Total Revenue
$106M
Previous year: $182M
-41.6%
EPS
$0.25
Previous year: $0.93
-73.1%
Industrial Revenue %
34%
Previous year: 29%
+17.2%
Computer Revenue %
14%
Previous year: 10%
+40.0%
Consumer Revenue %
24%
Previous year: 35%
-31.4%
Gross Profit
$54M
Previous year: $101M
-46.4%
Cash and Equivalents
$94.2M
Previous year: $171M
-44.8%
Free Cash Flow
$12.5M
Previous year: $59.9M
-79.1%
Total Assets
$851M
Previous year: $919M
-7.4%

Power Integrations

Power Integrations

Power Integrations Revenue by Segment

Forward Guidance

The company expects revenues to be $122 million plus or minus $5 million for the second quarter of 2023. GAAP gross margin is expected to be approximately 51.5 percent, and non-GAAP gross margin is expected to be approximately 52 percent. GAAP operating expenses are expected to be approximately $52.5 million; non-GAAP operating expenses are expected to be approximately $44.5 million.

Positive Outlook

  • Revenues are expected to be $122 million plus or minus $5 million.
  • GAAP gross margin is expected to be approximately 51.5 percent.
  • Non-GAAP gross margin is expected to be approximately 52 percent.
  • GAAP operating expenses are expected to be approximately $52.5 million.
  • Non-GAAP operating expenses are expected to be approximately $44.5 million.

Challenges Ahead

  • Unspecified risks associated with COVID-19 pandemic.
  • Potential changes in global economic and geopolitical conditions.
  • Possible shifts in customer demand.
  • Effects of competition may decrease revenues.
  • Unfavorable fluctuations in component costs or operating expenses.

Revenue & Expenses

Visualization of income flow from segment revenue to net income