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Power Integrations
🇺🇸 NASDAQ:POWI
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•
Sep 30, 2023

Power Integrations Q3 2023 Earnings Report

Revenue increased sequentially, but decreased year-over-year due to broad-based demand weakness.

Key Takeaways

Power Integrations reported Q3 2023 financial results with a sequential increase in revenues but a year-over-year decrease. GAAP earnings were $0.34 per diluted share, and non-GAAP earnings were $0.46 per diluted share. The company is progressing on growth initiatives, including EVs and GaN technology.

Net revenues for the third quarter were $125.5 million, up two percent compared to the prior quarter and down 22 percent from the third quarter of 2022.

Net income for the third quarter was $19.8 million or $0.34 per diluted share compared to $0.26 per diluted share in the prior quarter and $0.80 per diluted share in the third quarter of 2022.

Non-GAAP net income for the third quarter of 2023 was $26.6 million or $0.46 per diluted share compared to $0.36 per diluted share in the prior quarter and $0.84 per diluted share in the third quarter of 2022.

Company repurchased approximately 24,000 shares of its common stock for $1.8 million during the third quarter.

Total Revenue
$126M
Previous year: $160M
-21.7%
EPS
$0.46
Previous year: $0.84
-45.2%
Industrial Revenue %
32%
Previous year: 41%
-22.0%
Computer Revenue %
10%
Previous year: 11%
-9.1%
Consumer Revenue %
26%
Previous year: 32%
-18.8%
Gross Profit
$65.9M
Previous year: $92M
-28.3%
Cash and Equivalents
$94.7M
Previous year: $133M
-29.0%
Free Cash Flow
$19.2M
Previous year: $44.3M
-56.7%
Total Assets
$865M
Previous year: $838M
+3.3%

Power Integrations

Power Integrations

Power Integrations Revenue by Segment

Forward Guidance

The company expects Q4 2023 revenues to be $90 million plus or minus $5 million. Gross margins are expected to be similar to the third-quarter levels. GAAP operating expenses are expected to be approximately $50 million, and non-GAAP operating expenses are expected to be approximately $42.5 million. Non-GAAP expenses are expected to exclude about $7.5 million of stock-based compensation.

Positive Outlook

  • Revenues are expected to be $90 million plus or minus $5 million.
  • Gross margins are expected to be similar to the third-quarter levels.
  • GAAP operating expenses are expected to be approximately $50 million.
  • Non-GAAP operating expenses are expected to be approximately $42.5 million.
  • Non-GAAP expenses are expected to exclude about $7.5 million of stock-based compensation.

Challenges Ahead

  • Uncertain short-term outlook due to broad-based demand weakness.
  • Elevated supply-chain inventories.
  • Potential changes and shifts in customer demand.
  • Effects of competition may cause revenue decrease.
  • Unfavorable fluctuations in component costs.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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