Monolithic Power Systems, Inc. (MPS) (Nasdaq:MPWR), a leading
company in high performance analog solutions, today announced
financial results for the quarter and year ended December 31, 2017.
The Company also announced that its Board of Directors has
approved an increase in its quarterly cash dividend from $0.20 per
share to $0.30 per share. The first quarter dividend of $0.30 per
share will be paid on April 13, 2018 to all stockholders of record
as of the close of business on March 30, 2018.
The results for the quarter ended December 31,
2017 are as follows:
- Revenue was $129.4 million, a 0.4% increase from $128.9 million
for the quarter ended September 30, 2017 and a 24.9% increase from
$103.6 million for the quarter ended December 31, 2016.
- GAAP gross margin was 55.0%, compared with 54.5% for the
quarter ended December 31, 2016.
- Non-GAAP (1) gross margin was 55.7%, excluding the impact of
$0.4 million for stock-based compensation expense and $0.5 million
for the amortization of acquisition-related intangible assets,
compared with 55.4% for the quarter ended December 31, 2016,
excluding the impact of $0.4 million for stock-based compensation
expense and $0.5 million for the amortization of
acquisition-related intangible assets.
- GAAP operating expenses were $46.1 million, compared with $39.0
million for the quarter ended December 31, 2016.
- Non-GAAP (1) operating expenses were $33.9 million, excluding
$11.5 million for stock-based compensation expense and $0.8 million
for deferred compensation plan expense, compared with $28.4
million, excluding $10.4 million for stock-based compensation
expense and $0.2 million for deferred compensation plan expense,
for the quarter ended December 31, 2016.
- GAAP operating income was $25.1 million, compared with $17.5
million for the quarter ended December 31, 2016.
- Non-GAAP (1) operating income was $38.2 million, excluding
$11.9 million for stock-based compensation expense, $0.5 million
for the amortization of acquisition-related intangible assets and
$0.8 million for deferred compensation plan expense, compared with
$29.0 million, excluding $10.7 million for stock-based compensation
expense, $0.5 million for the amortization of acquisition-related
intangible assets and $0.2 million for deferred compensation plan
expense, for the quarter ended December 31, 2016.
- GAAP interest and other income, net was $1.6 million, compared
with $0.9 million for the quarter ended December 31, 2016.
- Non-GAAP (1) interest and other income, net was $1.0 million,
excluding $0.6 million for deferred compensation plan income,
compared with $0.7 million, excluding $0.2 million for deferred
compensation plan income, for the quarter ended December 31,
2016.
- GAAP income before income taxes was $26.7 million, compared
with $18.4 million for the quarter ended December 31, 2016.
- Non-GAAP (1) income before income taxes was $39.2 million,
excluding $11.9 million for stock-based compensation expense, $0.5
million for the amortization of acquisition-related intangible
assets and $0.1 million for deferred compensation plan expense,
compared with $29.7 million, excluding $10.7 million for
stock-based compensation expense and $0.5 million for the
amortization of acquisition-related intangible assets, for the
quarter ended December 31, 2016.
- GAAP net income was $12.1 million and GAAP earnings per share
were $0.27 per diluted share. Comparatively, GAAP net income was
$16.6 million and GAAP earnings per share were $0.39 per diluted
share for the quarter ended December 31, 2016.
- Non-GAAP (1) net income was $36.3 million and non-GAAP earnings
per share were $0.82 per diluted share, excluding stock-based
compensation expense, amortization of acquisition-related
intangible assets, net deferred compensation plan expense and
related tax effects, compared with non-GAAP net income of $27.5
million and non-GAAP earnings per share of $0.65 per diluted share,
excluding stock-based compensation income, amortization of
acquisition-related intangible assets, net deferred compensation
plan expense and related tax effects, for the quarter ended
December 31, 2016.
The results for the year ended December 31, 2017 are as
follows:
- Revenue was $470.9 million, a 21.2% increase from $388.7
million for the year ended December 31, 2016.
- GAAP gross margin was 54.8%, compared with 54.3% for the year
ended December 31, 2016.
- Non-GAAP (1) gross margin was 55.6%, excluding the impact of
$1.7 million for stock-based compensation expense and $2.1 million
for the amortization of acquisition-related intangible assets,
compared with 55.2% for the year ended December 31, 2016, excluding
the impact of $1.6 million for stock-based compensation expense and
$2.1 million for the amortization of acquisition-related intangible
assets.
- GAAP operating expenses were $180.9 million, compared with
$156.4 million for the year ended December 31, 2016.
- Non-GAAP (1) operating expenses were $127.1 million, excluding
$51.0 million for stock-based compensation expense and $2.8 million
for deferred compensation plan expense, compared with $111.9
million, excluding $43.4 million for stock-based compensation
expense and $1.1 million for deferred compensation plan expense,
for the year ended December 31, 2016.
- GAAP operating income was $77.4 million, compared with $54.4
million for the year ended December 31, 2016.
- Non-GAAP (1) operating income was $134.9 million, excluding
$52.6 million for stock-based compensation expense, $2.1 million
for the amortization of acquisition-related intangible assets and
$2.8 million for deferred compensation plan expense, compared with
$102.6 million, excluding $45.0 million for stock-based
compensation expense, $2.1 million for the amortization of
acquisition-related intangible assets and $1.1 million for deferred
compensation plan expense, for the year ended December 31,
2016.
- GAAP interest and other income, net was $5.5 million, compared
with $2.8 million for the year ended December 31, 2016.
- Non-GAAP (1) interest and other income, net was $3.0 million,
excluding $2.5 million for deferred compensation plan income,
compared with $1.6 million, excluding $1.3 million for deferred
compensation plan income, for the year ended December 31,
2016.
- GAAP income before income taxes was $82.9 million, compared
with $57.3 million for the year ended December 31, 2016.
- Non-GAAP (1) income before income taxes was $137.9 million,
excluding $52.6 million for stock-based compensation expense, $2.1
million for the amortization of acquisition-related intangible
assets and $0.2 million for deferred compensation plan expense,
compared with $104.1 million, excluding $45.0 million for
stock-based compensation expense, $2.1 million for the amortization
of acquisition-related intangible assets and $0.2 million for
deferred compensation plan income, for the year ended December 31,
2016.
- GAAP net income was $65.2 million and GAAP earnings per share
were $1.50 per diluted share. Comparatively, GAAP net income was
$52.7 million and GAAP earnings per share were $1.26 per diluted
share for the year ended December 31, 2016.
- Non-GAAP (1) net income was $127.5 million and non-GAAP
earnings per share were $2.93 per diluted share, excluding
stock-based compensation expense, amortization of
acquisition-related intangible assets, net deferred compensation
plan expense and related tax effects, compared with non-GAAP net
income of $96.3 million and non-GAAP earnings per share of $2.30
per diluted share, excluding stock-based compensation expense,
amortization of acquisition-related intangible assets, net deferred
compensation plan income and related tax effects, for the year
ended December 31, 2016.
On December 22, 2017, the Tax Cuts and Jobs
Act (the “2017 Tax Act”) was enacted into law. For the fourth
quarter and full year of 2017, the Company’s income tax provision
included a net increase of $13.5 million as a result of
the 2017 Tax Act.
The following is a summary of revenue by end
market for the periods indicated, estimated based on MPS’s
assessment of available end market data (in thousands):
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
End Market |
|
|
2017 |
|
|
2016 |
|
|
2017 |
|
|
2016 |
Consumer |
|
$ |
54,888 |
|
$ |
37,970 |
|
$ |
189,757 |
|
$ |
153,732 |
Computing and
storage |
|
|
26,679 |
|
|
23,405 |
|
|
100,782 |
|
|
80,562 |
Industrial |
|
|
16,160 |
|
|
15,142 |
|
|
62,896 |
|
|
55,685 |
Automotive |
|
|
15,846 |
|
|
10,048 |
|
|
53,888 |
|
|
33,954 |
Communications |
|
|
15,857 |
|
|
17,053 |
|
|
63,606 |
|
|
64,732 |
Total |
|
$ |
129,430 |
|
$ |
103,618 |
|
$ |
470,929 |
|
$ |
388,665 |
|
|
|
|
|
|
|
|
|
The following is a summary of revenue by product
family for the periods indicated (in thousands):
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
Product Family |
|
|
2017 |
|
|
2016 |
|
|
2017 |
|
|
2016 |
DC to DC |
|
$ |
119,161 |
|
$ |
93,977 |
|
$ |
431,861 |
|
$ |
350,930 |
Lighting
Control |
|
|
10,269 |
|
|
9,641 |
|
|
39,068 |
|
|
37,735 |
Total |
|
$ |
129,430 |
|
$ |
103,618 |
|
$ |
470,929 |
|
$ |
388,665 |
|
|
|
|
|
|
|
“We continue to grow and continue to enhance
shareholder value," said Michael Hsing, CEO and founder of
MPS.
Business Outlook
The following are MPS’ financial targets for the
first quarter ending March 31, 2018:
- Revenue in the range of $122 million to $128 million.
- GAAP gross margin between 54.8% and 55.8%. Non-GAAP (1) gross
margin between 55.3% and 56.3%, which excludes an estimated impact
of stock-based compensation expenses of 0.3% and amortization of
acquisition-related intangible assets of 0.2%.
- GAAP research and development (“R&D”) and selling, general
and administrative (“SG&A”) expenses between $45.6 million and
$50.6 million. Non-GAAP (1) R&D and SG&A expenses between
$32.1 million and $35.1 million, which excludes an estimate of
stock-based compensation expenses in the range of $13.5 million to
$15.5 million.
- Total stock-based compensation expense of $13.9 million to
$15.9 million.
- Litigation expenses of $250,000 to $350,000.
- Interest and other income, net, of $600,000 to $700,000 before
foreign exchange gains or losses.
- Fully diluted shares outstanding between 43.9 million and 44.9
million.
- Tax rate between 5% and 10%.
(1) Non-GAAP net income, non-GAAP earnings per
share, non-GAAP gross margin, non-GAAP R&D and SG&A
expenses, non-GAAP operating expenses, non-GAAP interest and other
income, net, non-GAAP operating income and non-GAAP income before
taxes differ from net income, earnings per share, gross margin,
R&D and SG&A expenses, operating expenses, interest and
other income, net, operating income and income before taxes
determined in accordance with Generally Accepted Accounting
Principles in the United States (GAAP). Non-GAAP net income and
non-GAAP earnings per share exclude the effect of stock-based
compensation expense, amortization of acquisition-related
intangible assets, deferred compensation plan income/expense and
related tax effects. Non-GAAP gross margin excludes the effect of
stock-based compensation expense and amortization of
acquisition-related intangible assets. Non-GAAP operating expenses
exclude the effect of stock-based compensation expense and deferred
compensation plan income/expense. Non-GAAP interest and other
income, net excludes the effect of deferred compensation plan
income/expense. Non-GAAP operating income excludes the effect of
stock-based compensation expense, amortization of
acquisition-related intangible assets and deferred compensation
plan income/expense. Non-GAAP income before taxes excludes the
effect of stock-based compensation expense, amortization of
acquisition-related intangible assets and deferred compensation
plan income/expense. Projected non-GAAP gross margin excludes the
effect of stock-based compensation expense and amortization of
acquisition-related intangible assets. Projected non-GAAP R&D
and SG&A expenses exclude the effect of stock-based
compensation expense. These non-GAAP financial measures are not
prepared in accordance with GAAP and should not be considered as a
substitute for, or superior to, measures of financial performance
prepared in accordance with GAAP. A schedule reconciling non-GAAP
financial measures is included at the end of this press release.
MPS utilizes both GAAP and non-GAAP financial measures to assess
what it believes to be its core operating performance and to
evaluate and manage its internal business and assist in making
financial operating decisions. MPS believes that the inclusion of
non-GAAP financial measures, together with GAAP measures, provides
investors with an alternative presentation useful to investors'
understanding of MPS’ core operating results and trends.
Additionally, MPS believes that the inclusion of non-GAAP measures,
together with GAAP measures, provides investors with an additional
dimension of comparability to similar companies. However, investors
should be aware that non-GAAP financial measures utilized by other
companies are not likely to be comparable in most cases to the
non-GAAP financial measures used by MPS.
Conference CallMPS plans to
conduct an investor teleconference covering its quarter and year
ended December 31, 2017 results at 2:00 p.m. PT / 5:00 p.m. ET,
February 8, 2018. To access the conference call and the following
replay of the conference call, go to
http://ir.monolithicpower.com and click on the webcast link.
From this site, you can listen to the teleconference, assuming that
your computer system is configured properly. In addition to the
webcast replay, which will be archived for all investors for one
year on the MPS website, a phone replay will be available for seven
days after the live call at (404) 537-3406, code number 2489619.
This press release and any other information related to the call
will also be posted on the website.
Safe Harbor StatementThis press release
contains, and statements that will be made during the accompanying
teleconference will contain, forward-looking statements, as that
term is defined in the Private Securities Litigation Reform Act of
1995, including, among other things, (i) projected revenues, GAAP
and non-GAAP gross margin, GAAP and non-GAAP R&D and SG&A
expenses, stock-based compensation expenses, amortization of
acquisition-related intangible assets, litigation expenses,
interest and other income, diluted shares outstanding and tax rate,
(ii) our outlook for the long-term prospects of the company,
including our performance against our business plan, revenue growth
in certain of our market segments, our continued investment into
R&D, expected revenue growth, customers’ acceptance of our new
product offerings, the prospects of our new product development,
and our expectations regarding market and industry segment trends
and prospects, (iii) our ability to penetrate new markets and
expand our market share, (iv) the seasonality of our business, (v)
our ability to reduce our expenses, (vi) the impact of the 2017 Tax
Act on our tax rate and provision; and (vii) statements of the
assumptions underlying or relating to any statement described in
(i), (ii), (iii), (iv), (v), or (vi). These forward-looking
statements are not historical facts or guarantees of future
performance or events, are based on current expectations,
estimates, beliefs, assumptions, goals, and objectives, and involve
significant known and unknown risks, uncertainties and other
factors that may cause actual results to be materially different
from the results expressed by these statements. Readers of this
press release and listeners to the accompanying conference call are
cautioned not to place undue reliance on any forward-looking
statements, which speak only as of the date hereof. Factors that
could cause actual results to differ include, but are not limited
to, our ability to attract new customers and retain existing
customers; acceptance of, or demand for, MPS’ products, in
particular the new products launched recently, being different than
expected; our ability to efficiently and effectively develop new
products and receive a return on our R&D expense investment;
competition generally and the increasingly competitive nature of
our industry; any market disruptions or interruptions in MPS’
schedule of new product development releases; adverse changes in
production and testing efficiency of our products; our ability to
realize the anticipated benefits of companies and products that we
acquire, and our ability to effectively and efficiently integrate
these acquired companies and products into our operations; our
ability to manage our inventory levels; adverse changes in
government regulations in foreign countries where MPS has offices
or operations; the effect of catastrophic events; adequate supply
of our products from our third-party manufacturing partners; the
risks, uncertainties and costs of litigation in which we are
involved; the outcome of any upcoming trials, hearings, motions and
appeals; the adverse impact on MPS’ financial performance if its
tax and litigation provisions are inadequate; adverse changes or
developments in the semiconductor industry generally, which is
cyclical in nature; difficulty in predicting or budgeting for
future customer demand and channel inventories, expenses and
financial contingencies; the ongoing consolidation of companies in
the semiconductor industry; and other important risk factors
identified in MPS’ Securities and Exchange Commission (SEC)
filings, including, but not limited to, our annual report on Form
10-K filed with the SEC on March 1, 2017 and our quarterly report
on Form 10-Q filed with the SEC on November 6, 2017.
The forward-looking statements in this press
release and statements made during the accompanying teleconference
represent MPS’ projections and current expectations, as of the date
hereof, not predictions of actual performance. MPS assumes no
obligation to update the information in this press release or in
the accompanying conference call.
About Monolithic Power
SystemsMonolithic Power Systems, Inc. (MPS) provides
small, highly energy efficient, easy-to-use power solutions for
systems found in industrial applications, telecom infrastructures,
cloud computing, automotive, and consumer applications. MPS'
mission is to reduce total energy consumption in its
customers' systems with green, practical, compact solutions. The
company was founded by Michael Hsing in 1997 and is headquartered
in San Jose, CA. MPS can be contacted through its website at
www.monolithicpower.com or its support offices around the
world.
Monolithic Power Systems, MPS, and the MPS logo
are registered trademarks of Monolithic Power Systems, Inc. in the
U.S. and trademarked in certain other countries.
Contact:Bernie BlegenChief Financial
OfficerMonolithic Power Systems,
Inc.408-826-0777investors@monolithicpower.com
Monolithic Power Systems,
Inc.Condensed Consolidated Balance
Sheets(Unaudited, in thousands, except par value)
|
|
|
|
December 31, |
|
|
|
2017 |
|
|
2016 |
|
|
ASSETS |
|
|
|
|
Current assets: |
|
|
|
|
Cash and
cash equivalents |
$ |
82,759 |
|
$ |
112,703 |
|
|
Short-term investments |
|
216,331 |
|
|
155,521 |
|
|
Accounts
receivable, net |
|
38,037 |
|
|
34,248 |
|
|
Inventories |
|
99,281 |
|
|
71,469 |
|
|
Other
current assets |
|
12,762 |
|
|
9,043 |
|
|
Total
current assets |
|
449,170 |
|
|
382,984 |
|
|
Property
and equipment, net |
|
143,514 |
|
|
85,171 |
|
|
Long-term investments |
|
5,256 |
|
|
5,354 |
|
|
Goodwill |
|
6,571 |
|
|
6,571 |
|
|
Acquisition-related intangible assets, net |
|
951 |
|
|
3,002 |
|
|
Deferred
tax assets, net |
|
15,917 |
|
|
633 |
|
|
Other
long-term assets |
|
30,068 |
|
|
27,411 |
|
|
Total
assets |
$ |
651,447 |
|
$ |
511,126 |
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
Current
liabilities: |
|
|
|
|
Accounts
payable |
$ |
21,691 |
|
$ |
17,427 |
|
|
Accrued
compensation and related benefits |
|
15,597 |
|
|
12,578 |
|
|
Accrued
liabilities |
|
27,507 |
|
|
22,916 |
|
|
Total
current liabilities |
|
64,795 |
|
|
52,921 |
|
|
Income
tax liabilities |
|
31,621 |
|
|
3,870 |
|
|
Other
long-term liabilities |
|
33,024 |
|
|
23,219 |
|
|
Total liabilities |
|
129,440 |
|
|
80,010 |
|
|
Commitments and contingencies |
|
|
|
|
Stockholders' equity: |
|
|
|
|
Common stock and additional paid-in capital, $0.001 par value;
shares authorized: |
|
|
|
|
150,000; shares issued and outstanding: 41,614 and
40,793 |
|
|
|
|
as
of December 31, 2017 and December 31, 2016, respectively |
|
376,586 |
|
|
315,969 |
|
|
Retained
earnings |
|
143,608 |
|
|
119,362 |
|
|
Accumulated other comprehensive income (loss) |
|
1,813 |
|
|
(4,215 |
) |
|
Total
stockholders’ equity |
|
522,007 |
|
|
431,116 |
|
|
Total
liabilities and stockholders’ equity |
$ |
651,447 |
|
$ |
511,126 |
|
|
|
|
|
|
|
Monolithic Power Systems,
Inc.Condensed Consolidated Statements of
Operations(Unaudited, in thousands, except per share
amounts)
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
|
2017 |
|
|
|
2016 |
|
|
|
2017 |
|
|
|
2016 |
|
Revenue |
$ |
129,430 |
|
|
$ |
103,618 |
|
|
$ |
470,929 |
|
|
$ |
388,665 |
|
Cost of
revenue |
|
58,269 |
|
|
|
47,107 |
|
|
|
212,646 |
|
|
|
177,792 |
|
Gross
profit |
|
71,161 |
|
|
|
56,511 |
|
|
|
258,283 |
|
|
|
210,873 |
|
Operating
expenses: |
|
|
|
|
|
|
|
Research and development |
|
21,730 |
|
|
|
17,974 |
|
|
|
82,359 |
|
|
|
73,643 |
|
Selling, general and administrative |
|
24,038 |
|
|
|
21,316 |
|
|
|
97,257 |
|
|
|
83,012 |
|
Litigation expense (benefit), net |
|
340 |
|
|
|
(321 |
) |
|
|
1,243 |
|
|
|
(229 |
) |
Total
operating expenses |
|
46,108 |
|
|
|
38,969 |
|
|
|
180,859 |
|
|
|
156,426 |
|
Income
from operations |
|
25,053 |
|
|
|
17,542 |
|
|
|
77,424 |
|
|
|
54,447 |
|
Interest
and other income, net |
|
1,647 |
|
|
|
897 |
|
|
|
5,520 |
|
|
|
2,817 |
|
Income
before income taxes |
|
26,700 |
|
|
|
18,439 |
|
|
|
82,944 |
|
|
|
57,264 |
|
Income
tax provision |
|
14,629 |
|
|
|
1,866 |
|
|
|
17,741 |
|
|
|
4,544 |
|
Net
income |
$ |
12,071 |
|
|
$ |
16,573 |
|
|
$ |
65,203 |
|
|
$ |
52,720 |
|
|
|
|
|
|
|
|
|
Net income per
share: |
|
|
|
|
|
|
|
Basic |
$ |
0.29 |
|
|
$ |
0.41 |
|
|
$ |
1.58 |
|
|
$ |
1.30 |
|
Diluted |
$ |
0.27 |
|
|
$ |
0.39 |
|
|
$ |
1.50 |
|
|
$ |
1.26 |
|
Weighted-average shares outstanding: |
|
|
|
|
|
|
|
Basic |
|
41,574 |
|
|
|
40,739 |
|
|
|
41,350 |
|
|
|
40,436 |
|
Diluted |
|
44,160 |
|
|
|
42,404 |
|
|
|
43,578 |
|
|
|
41,915 |
|
|
|
|
|
|
|
|
|
Cash
dividends declared per common share |
$ |
0.20 |
|
|
$ |
0.20 |
|
|
$ |
0.80 |
|
|
$ |
0.80 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL FINANCIAL
INFORMATION |
STOCK-BASED COMPENSATION EXPENSE |
(Unaudited, in thousands) |
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
|
2017 |
|
|
|
2016 |
|
|
|
2017 |
|
|
|
2016 |
|
Cost of revenue |
$ |
391 |
|
|
$ |
358 |
|
|
$ |
1,654 |
|
|
$ |
1,575 |
|
Research and
development |
|
3,519 |
|
|
|
3,039 |
|
|
|
14,816 |
|
|
|
14,041 |
|
Selling, general and
administrative |
|
7,948 |
|
|
|
7,350 |
|
|
|
36,147 |
|
|
|
29,373 |
|
Total stock-based
compensation expense |
$ |
11,858 |
|
|
$ |
10,747 |
|
|
$ |
52,617 |
|
|
$ |
44,989 |
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF NET INCOME TO NON-GAAP NET
INCOME |
(Unaudited, in thousands, except per share
amounts) |
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
|
2017 |
|
|
|
2016 |
|
|
|
2017 |
|
|
|
2016 |
|
Net income |
$ |
12,071 |
|
|
$ |
16,573 |
|
|
$ |
65,203 |
|
|
$ |
52,720 |
|
Net
income as a percentage of revenue |
|
9.3 |
% |
|
|
16.0 |
% |
|
|
13.8 |
% |
|
|
13.6 |
% |
|
|
|
|
|
|
|
|
Adjustments
to reconcile net income to non-GAAP net income: |
|
|
|
|
|
|
Stock-based compensation expense |
|
11,858 |
|
|
|
10,747 |
|
|
|
52,617 |
|
|
|
44,989 |
|
Amortization of acquisition-related intangible assets |
|
513 |
|
|
|
512 |
|
|
|
2,051 |
|
|
|
2,051 |
|
Deferred
compensation plan expense (income) |
|
148 |
|
|
|
29 |
|
|
|
238 |
|
|
|
(188 |
) |
Tax
effect (1) |
|
11,688 |
|
|
|
(364 |
) |
|
|
7,402 |
|
|
|
(3,265 |
) |
Non-GAAP net
income |
$ |
36,278 |
|
|
$ |
27,497 |
|
|
$ |
127,511 |
|
|
$ |
96,307 |
|
Non-GAAP
net income as a percentage of revenue |
|
28.0 |
% |
|
|
26.5 |
% |
|
|
27.1 |
% |
|
|
24.8 |
% |
|
|
|
|
|
|
|
|
Non-GAAP net income per
share: |
|
|
|
|
|
|
|
Basic |
$ |
0.87 |
|
|
$ |
0.67 |
|
|
$ |
3.08 |
|
|
$ |
2.38 |
|
Diluted |
$ |
0.82 |
|
|
$ |
0.65 |
|
|
$ |
2.93 |
|
|
$ |
2.30 |
|
|
|
|
|
|
|
|
|
Shares used
in the calculation of non-GAAP net income per share: |
|
|
|
|
|
|
Basic |
|
41,574 |
|
|
|
40,739 |
|
|
|
41,350 |
|
|
|
40,436 |
|
Diluted |
|
44,160 |
|
|
|
42,404 |
|
|
|
43,578 |
|
|
|
41,915 |
|
|
|
|
|
|
|
|
|
(1) Tax
effect for the quarter and year ended December 31, 2017 includes a
one-time charge of $13.5 million associated with the enactment of
the 2017 Tax Act due to its unique non-recurring nature. |
|
|
|
|
|
|
|
|
RECONCILIATION OF GROSS MARGIN TO NON-GAAP
GROSS MARGIN |
(Unaudited, in thousands) |
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
|
2017 |
|
|
|
2016 |
|
|
|
2017 |
|
|
|
2016 |
|
Gross profit |
$ |
71,161 |
|
|
$ |
56,511 |
|
|
$ |
258,283 |
|
|
$ |
210,873 |
|
Gross
margin |
|
55.0 |
% |
|
|
54.5 |
% |
|
|
54.8 |
% |
|
|
54.3 |
% |
|
|
|
|
|
|
|
|
Adjustments
to reconcile gross profit to non-GAAP gross profit: |
|
|
|
|
|
|
Stock-based compensation expense |
|
391 |
|
|
|
358 |
|
|
|
1,654 |
|
|
|
1,575 |
|
Amortization of acquisition-related intangible assets |
|
513 |
|
|
|
512 |
|
|
|
2,051 |
|
|
|
2,051 |
|
Non-GAAP gross
profit |
$ |
72,065 |
|
|
$ |
57,381 |
|
|
$ |
261,988 |
|
|
$ |
214,499 |
|
Non-GAAP
gross margin |
|
55.7 |
% |
|
|
55.4 |
% |
|
|
55.6 |
% |
|
|
55.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF OPERATING EXPENSES TO
NON-GAAP OPERATING EXPENSES |
(Unaudited, in thousands) |
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
|
2017 |
|
|
|
2016 |
|
|
|
2017 |
|
|
|
2016 |
|
Total operating
expenses |
$ |
46,108 |
|
|
$ |
38,969 |
|
|
$ |
180,859 |
|
|
$ |
156,426 |
|
|
|
|
|
|
|
|
|
Adjustments
to reconcile total operating expenses to non-GAAP total operating
expenses: |
|
|
|
|
Stock-based compensation expense |
|
(11,467 |
) |
|
|
(10,389 |
) |
|
|
(50,963 |
) |
|
|
(43,414 |
) |
Deferred
compensation plan expense |
|
(776 |
) |
|
|
(189 |
) |
|
|
(2,769 |
) |
|
|
(1,069 |
) |
Non-GAAP operating
expenses |
$ |
33,865 |
|
|
$ |
28,391 |
|
|
$ |
127,127 |
|
|
$ |
111,943 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF OPERATING INCOME TO NON-GAAP
OPERATING INCOME |
(Unaudited, in thousands) |
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
|
2017 |
|
|
|
2016 |
|
|
|
2017 |
|
|
|
2016 |
|
Total operating
income |
$ |
25,053 |
|
|
$ |
17,542 |
|
|
$ |
77,424 |
|
|
$ |
54,447 |
|
Operating
income as a percentage of revenue |
|
19.4 |
% |
|
|
16.9 |
% |
|
|
16.4 |
% |
|
|
14.0 |
% |
|
|
|
|
|
|
|
|
Adjustments
to reconcile total operating income to non-GAAP total operating
income: |
|
|
|
|
Stock-based compensation expense |
|
11,858 |
|
|
|
10,747 |
|
|
|
52,617 |
|
|
|
44,989 |
|
Amortization of acquisition-related intangible assets |
|
513 |
|
|
|
512 |
|
|
|
2,051 |
|
|
|
2,051 |
|
Deferred
compensation plan expense |
|
776 |
|
|
|
189 |
|
|
|
2,769 |
|
|
|
1,069 |
|
Non-GAAP operating
income |
$ |
38,200 |
|
|
$ |
28,990 |
|
|
$ |
134,861 |
|
|
$ |
102,556 |
|
Non-GAAP
operating income as a percentage of revenue |
|
29.5 |
% |
|
|
28.0 |
% |
|
|
28.6 |
% |
|
|
26.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF INTEREST AND OTHER INCOME,
NET, TO NON-GAAP INTEREST AND OTHER INCOME, NET |
(Unaudited, in thousands) |
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
|
2017 |
|
|
|
2016 |
|
|
|
2017 |
|
|
|
2016 |
|
Total interest and
other income, net |
$ |
1,647 |
|
|
$ |
897 |
|
|
$ |
5,520 |
|
|
$ |
2,817 |
|
|
|
|
|
|
|
|
|
Adjustments
to reconcile interest and other income to non-GAAP interest and
other income: |
|
|
|
|
Deferred
compensation plan income |
|
(628 |
) |
|
|
(160 |
) |
|
|
(2,531 |
) |
|
|
(1,257 |
) |
Non-GAAP interest and
other income, net |
$ |
1,019 |
|
|
$ |
737 |
|
|
$ |
2,989 |
|
|
$ |
1,560 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF INCOME BEFORE INCOME TAXES
TO NON-GAAP INCOME BEFORE INCOME TAXES |
(Unaudited, in thousands) |
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
|
2017 |
|
|
|
2016 |
|
|
|
2017 |
|
|
|
2016 |
|
Total income before
income taxes |
$ |
26,700 |
|
|
$ |
18,439 |
|
|
$ |
82,944 |
|
|
$ |
57,264 |
|
|
|
|
|
|
|
|
|
Adjustments
to reconcile income before income taxes to non-GAAP income before
income taxes: |
|
|
|
|
Stock-based compensation expense |
|
11,858 |
|
|
|
10,747 |
|
|
|
52,617 |
|
|
|
44,989 |
|
Amortization of acquisition-related intangible assets |
|
513 |
|
|
|
512 |
|
|
|
2,051 |
|
|
|
2,051 |
|
Deferred
compensation plan expense (income) |
|
148 |
|
|
|
29 |
|
|
|
238 |
|
|
|
(188 |
) |
Non-GAAP income before
income taxes |
$ |
39,219 |
|
|
$ |
29,727 |
|
|
$ |
137,850 |
|
|
$ |
104,116 |
|
|
|
|
|
|
|
|
|
2018 FIRST QUARTER OUTLOOK |
|
RECONCILIATION OF GROSS MARGIN TO NON-GAAP
GROSS MARGIN |
|
(Unaudited) |
|
|
Three Months
Ending |
|
|
March 31, 2018 |
|
|
Low |
|
High |
|
Gross margin |
|
54.8 |
% |
|
|
55.8 |
% |
|
Adjustments to
reconcile gross margin to non-GAAP gross margin: |
|
|
|
|
Stock-based compensation expense |
|
0.3 |
% |
|
|
0.3 |
% |
|
Amortization of acquisition-related intangible assets |
|
0.2 |
% |
|
|
0.2 |
% |
|
Non-GAAP gross
margin |
|
55.3 |
% |
|
|
56.3 |
% |
|
|
|
|
|
|
RECONCILIATION OF R&D AND SG&A EXPENSES
TO NON-GAAP R&D AND SG&A EXPENSES |
|
(Unaudited, in thousands) |
|
|
Three Months
Ending |
|
|
March 31, 2018 |
|
|
Low |
|
High |
|
R&D and SG&A
expense |
$ |
45,600 |
|
|
$ |
50,600 |
|
|
Adjustments to
reconcile R&D and SG&A expense to non-GAAP R&D and
SG&A expense: |
|
|
|
|
Stock-based compensation expense |
|
(13,500 |
) |
|
|
(15,500 |
) |
|
Non-GAAP R&D and
SG&A expense |
$ |
32,100 |
|
|
$ |
35,100 |
|
|
|
|
|
|
|
Monolithic Power Systems (NASDAQ:MPWR)
Historical Stock Chart
From Mar 2024 to Apr 2024
Monolithic Power Systems (NASDAQ:MPWR)
Historical Stock Chart
From Apr 2023 to Apr 2024