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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.
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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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