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Jun 30, 2020

Power Integrations Q2 2020 Earnings Report

Power Integrations' Q2 2020 earnings were reported, with revenue up 4% year-over-year and a 2:1 stock split announced.

Key Takeaways

Power Integrations reported a 4% year-over-year increase in revenue to $106.8 million for Q2 2020. GAAP earnings per diluted share were $0.44, while non-GAAP earnings per diluted share reached $0.66. The company also announced a 2:1 stock split.

Revenues increased four percent year-over-year to $106.8 million.

GAAP earnings were $0.44 per diluted share.

Non-GAAP earnings were $0.66 per diluted share.

Company announced a 2:1 stock split and dividend increase.

Total Revenue
$107M
Previous year: $103M
+3.9%
EPS
$0.33
Previous year: $0.28
+17.9%
Industrial Revenue %
35%
Previous year: 33%
+6.1%
Computer Revenue %
6%
Previous year: 6%
+0.0%
Consumer Revenue %
31%
Previous year: 37%
-16.2%
Gross Profit
$53.5M
Previous year: $51.6M
+3.8%
Cash and Equivalents
$251M
Previous year: $99.5M
+152.6%
Free Cash Flow
$26.6M
Previous year: $14.5M
+83.3%
Total Assets
$854M
Previous year: $620M
+37.6%

Power Integrations

Power Integrations

Power Integrations Revenue by Segment

Forward Guidance

The company issued the following forecast for the third quarter of 2020: Revenues are expected to be $115 million plus or minus $5 million. GAAP gross margin is expected to be between 49.5 percent and 50 percent. Non-GAAP gross margin is expected to be between 50.5 percent and 51 percent. GAAP operating expenses are expected to be approximately $43 million; non-GAAP operating expenses are expected to be approximately $36 million.

Positive Outlook

  • Revenues are expected to be $115 million plus or minus $5 million.
  • GAAP gross margin is expected to be between 49.5 percent and 50 percent.
  • Non-GAAP gross margin is expected to be between 50.5 percent and 51 percent.
  • GAAP operating expenses are expected to be approximately $43 million.
  • Non-GAAP operating expenses are expected to be approximately $36 million.

Challenges Ahead

  • The impact of the COVID-19 crisis on demand for the company’s products
  • Changes in global macroeconomic conditions
  • Potential changes and shifts in customer demand
  • The effects of competition
  • Unfavorable fluctuations in component costs or operating expenses

Revenue & Expenses

Visualization of income flow from segment revenue to net income