Monolithic Power Systems, Inc. (MPS) (Nasdaq: MPWR), a leading
company in high performance analog solutions, today announced
financial results for the quarter ended June 30, 2020.
- Revenue was $186.2 million for
the quarter ended June 30, 2020, a 12.3% increase from $165.8
million for the quarter ended March 31, 2020 and a 23.3% increase
from $151.0 million for the quarter ended June 30, 2019.
- GAAP gross margin was 55.1% for the
quarter ended June 30, 2020, compared with 55.1% for the quarter
ended June 30, 2019.
- Non-GAAP (1) gross margin was
55.7% for the quarter ended June 30, 2020, excluding the impact of
$0.6 million for stock-based compensation expense and $0.5 million
for deferred compensation plan expense, compared with 55.6% for the
quarter ended June 30, 2019, excluding the impact of $0.7 million
for stock-based compensation expense and $0.1 million for the
amortization of acquisition-related intangible assets.
- GAAP operating expenses were
$74.6 million for the quarter ended June 30, 2020, compared
with $63.1 million for the quarter ended June 30, 2019.
- Non-GAAP (1) operating expenses
were $50.7 million for the quarter ended June 30, 2020,
excluding $20.4 million for stock-based compensation expense and
$3.6 million for deferred compensation plan expense, compared with
$40.3 million for the quarter ended June 30, 2019, excluding $22.0
million for stock-based compensation expense and $0.8 million for
deferred compensation plan expense.
- GAAP operating income was $28.0
million for the quarter ended June 30, 2020, compared with $20.1
million for the quarter ended June 30, 2019.
- Non-GAAP (1) operating income was
$53.0 million for the quarter ended June 30, 2020, excluding $21.0
million for stock-based compensation expense and $4.0 million for
deferred compensation plan expense, compared with $43.7 million for
the quarter ended June 30, 2019, excluding $22.7 million for
stock-based compensation expense, $0.1 million for the amortization
of acquisition-related intangible assets and $0.8 million for
deferred compensation plan expense.
- GAAP other income, net, was $5.2
million for the quarter ended June 30, 2020, compared
with other income, net, of $2.2 million for the quarter ended
June 30, 2019.
- Non-GAAP (1) other income, net was
$1.6 million for the quarter ended June 30, 2020, excluding $3.6
million for deferred compensation plan income, compared with $1.6
million for the quarter ended June 30, 2019, excluding $0.6 million
for deferred compensation plan income.
- GAAP income before income taxes was
$33.2 million for the quarter ended June 30, 2020, compared with
$22.3 million for the quarter ended June 30, 2019.
- Non-GAAP (1) income before income
taxes was $54.7 million for the quarter ended June 30, 2020,
excluding $21.0 million for stock-based compensation expense and
$0.5 million for deferred compensation plan expense, compared with
$45.3 million for the quarter ended June 30, 2019, excluding $22.7
million for stock-based compensation expense, $0.1 million for the
amortization of acquisition-related intangible assets, and $0.2
million for deferred compensation plan expense.
- GAAP net income was $30.2 million
and $0.64 per diluted share for the quarter ended June 30, 2020.
Comparatively, GAAP net income was $20.7 million and $0.45 per
diluted share for the quarter ended June 30, 2019.
- Non-GAAP (1) net income was $50.6
million and $1.08 per diluted share for the quarter ended June
30, 2020, excluding stock-based compensation expense, net deferred
compensation plan expense and related tax effects, compared with
non-GAAP net income of $41.9 million and $0.92 per diluted share
for the quarter ended June 30, 2019, excluding stock-based
compensation expense, amortization of acquisition-related
intangible assets, net deferred compensation plan expense and
related tax effects.
The financial results for the six months ended June 30, 2020 are
as follows:
- Revenue was $352.0 million for the six months ended June
30, 2020, a 20.4% increase from $292.4 million for the six months
ended June 30, 2019.
- GAAP gross margin was 55.1% for the six months ended June 30,
2020, compared with 55.1% for the six months ended June 30,
2019.
- Non-GAAP (1) gross margin was 55.6% for the six months
ended June 30, 2020, excluding the impact of $1.2 million for
stock-based compensation expense and $0.4 million for deferred
compensation plan expense, compared with 55.6% for the six months
ended June 30, 2019, excluding the impact of $1.2 million for
stock-based compensation expense and $0.1 million for the
amortization of acquisition-related intangible
assets.
- GAAP operating expenses were $135.1 million for the six
months ended June 30, 2020, compared with $119.4 million for the
six months ended June 30, 2019.
- Non-GAAP (1) operating expenses were $96.7 million for the
six months ended June 30, 2020, excluding $38.4 million for
stock-based compensation expense, compared with $79.3 million for
the six months ended June 30, 2019, excluding $37.5 million for
stock-based compensation expense and $2.6 million for deferred
compensation plan expense.
- GAAP operating income was $58.9 million for the six months
ended June 30, 2020, compared with $41.8 million for the six months
ended June 30, 2019.
- Non-GAAP (1) operating income was $98.9 million for the six
months ended June 30, 2020, excluding $39.6 million for stock-based
compensation expense and $0.4 million for deferred compensation
plan expense, compared with $83.2 million for the six months ended
June 30, 2019, excluding $38.7 million for stock-based compensation
expense, $0.1 million for the amortization of acquisition-related
intangible assets and $2.6 million for deferred compensation plan
expense.
- GAAP other income, net, was $3.5 million for the six months
ended June 30, 2020, compared with other income, net, of $5.6
million for the six months ended June 30, 2019.
- Non-GAAP (1) other income, net was $3.7 million for the six
months ended June 30, 2020, excluding $0.2 million for deferred
compensation plan expense, compared with $3.0 million for the six
months ended June 30, 2019, excluding $2.6 million for deferred
compensation plan income.
- GAAP income before income taxes was $62.4 million for the six
months ended June 30, 2020, compared with $47.4 million for the six
months ended June 30, 2019.
- Non-GAAP (1) income before income taxes was $102.6 million for
the six months ended June 30, 2020, excluding $39.6 million for
stock-based compensation expense and $0.6 million for deferred
compensation plan expense, compared with $86.2 million for the six
months ended June 30, 2019, excluding $38.7 million for stock-based
compensation expense, and $0.1 million for the amortization of
acquisition-related intangible assets.
- GAAP net income was $65.9 million and $1.41 per diluted
share for the six months ended June 30, 2020. Comparatively, GAAP
net income was $46.9 million and $1.03 per diluted share for
the six months ended June 30, 2019.
- Non-GAAP (1) net income was $94.9 million and $2.03 per
diluted share for the six months ended June 30, 2020, excluding
stock-based compensation expense, net deferred compensation plan
expense and related tax effects, compared with non-GAAP net income
of $79.8 million and $1.76 per diluted share for the six
months ended June 30, 2019, excluding stock-based compensation
expense, amortization of acquisition-related intangible assets, net
deferred compensation plan expense and related tax effects.
The following is a summary of revenue by end
market for the periods indicated (in thousands):
| |
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
|
End Market |
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
| Computing and storage |
|
$ |
64,087 |
|
|
$ |
41,590 |
|
|
$ |
116,044 |
|
|
$ |
80,778 |
|
| Automotive |
|
|
17,779 |
|
|
|
21,225 |
|
|
|
41,091 |
|
|
|
41,742 |
|
| Industrial |
|
|
26,592 |
|
|
|
22,438 |
|
|
|
51,829 |
|
|
|
43,778 |
|
| Communications |
|
|
30,095 |
|
|
|
21,968 |
|
|
|
57,965 |
|
|
|
44,150 |
|
| Consumer |
|
|
47,656 |
|
|
|
43,786 |
|
|
|
85,058 |
|
|
|
81,922 |
|
| Total |
|
$ |
186,209 |
|
|
$ |
151,007 |
|
|
$ |
351,987 |
|
|
$ |
292,370 |
|
The following is a summary of revenue by product
family for the periods indicated (in thousands):
| |
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
|
Product Family |
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
| DC to DC |
|
$ |
176,113 |
|
|
$ |
139,691 |
|
|
$ |
332,988 |
|
|
$ |
272,402 |
|
| Lighting Control |
|
|
10,096 |
|
|
|
11,316 |
|
|
|
18,999 |
|
|
|
19,968 |
|
| Total |
|
$ |
186,209 |
|
|
$ |
151,007 |
|
|
$ |
351,987 |
|
|
$ |
292,370 |
|
“We continue to grow year over year. We are excited about our
design activities in the pipeline and expanding our reach in the
new frontiers,” said Michael Hsing, CEO and founder of
MPS.
Business Outlook
The following are MPS’ financial targets for the
third quarter ending September 30, 2020:
- Revenue in the range of $200 million to
$210 million.
- GAAP gross margin between 55.2% and 55.8%. Non-GAAP (1) gross
margin between 55.5% and 56.1%, which excludes an estimated impact
of stock-based compensation expenses of 0.3%.
- GAAP research and development (“R&D”) and selling, general
and administrative (“SG&A”) expenses between $70.7 million
and $74.7 million. Non-GAAP (1) R&D and SG&A expenses
between $50.2 million and $52.2 million, which excludes
estimated stock-based compensation expenses in the range of
$20.5 million to $22.5 million.
- Total stock-based compensation expense of $21.2 million to
$23.2 million.
- Litigation expenses ranging between $1.8 million and
$2.2 million.
- Interest income of $1.5 million to
$1.7 million.
- Fully diluted shares outstanding between 46.5 million and 47.5
million.
(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 other income
(expense), 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, other
income (expense), 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,
amortization of acquisition-related intangible assets and deferred
compensation plan income/expense. Non-GAAP operating expenses
exclude the effect of stock-based compensation expense and deferred
compensation plan income/expense. Non-GAAP other income (expense),
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. 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.
Earnings WebinarMPS plans to
host a Zoom webinar covering its financial results at 2:00
p.m. PT / 5:00 p.m. ET, July 28, 2020. You can
access the webinar, free of charge, at:
https://mpsic.zoom.us/j/96497779610. The webinar will be archived
and available for replay for one year under the Investor Relations
page on the MPS 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, litigation expenses, interest income, and diluted shares
outstanding, (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, and (vi) statements of the assumptions underlying or
relating to any statement described in (i), (ii), (iii), (iv), or
(v). 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; our ability to increase market share in
our targeted markets; 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 manage our inventory levels; the effect of
export controls, trade and economic sanctions regulations and other
regulatory or contractual limitations on our ability to sell or
develop our products in certain foreign markets, particularly in
China; our ability to obtain governmental licenses and
approvals for international trading activities or technology
transfers, including export licenses; adverse changes in laws and
government regulations such as tariffs on imports of foreign goods,
export regulations and export classifications, including in foreign
countries where MPS has offices or operations; adverse events
arising from orders of governmental entities, including such orders
that impact our customers, and adopting of new or amended
accounting standards; the effect of epidemics and pandemics, such
as the COVID-19 outbreak first identified in December 2019, on the
global economy and on our business; 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, and our ability to adjust our operations to
address such changes or developments; difficulty in predicting or
budgeting for future customer demand and channel inventories,
expenses and financial contingencies (including as a result of
the COVID-19 pandemic); 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; the ongoing consolidation of
companies in the semiconductor industry; and other important risk
factors identified in MPS’s Securities and Exchange
Commission (SEC) filings, including, but not limited to, our
annual report on Form 10-K filed with
the SEC on February 28, 2020 and our quarterly
report on Form 10-Q filed with the SEC on May 11, 2020. The
forward-looking statements in this press release and statements
made during the accompanying teleconference represent MPS’s
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 based
in the United States. 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)
| |
|
June 30, |
|
|
December 31, |
|
| |
|
2020 |
|
|
2019 |
|
| ASSETS |
|
|
|
|
|
|
|
|
| Current assets: |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
156,483 |
|
|
$ |
172,960 |
|
|
Short-term investments |
|
|
355,840 |
|
|
|
282,437 |
|
|
Accounts receivable, net |
|
|
55,136 |
|
|
|
52,704 |
|
|
Inventories |
|
|
152,119 |
|
|
|
127,500 |
|
|
Other current assets |
|
|
29,286 |
|
|
|
19,605 |
|
|
Total current assets |
|
|
748,864 |
|
|
|
655,206 |
|
| Property and equipment,
net |
|
|
251,980 |
|
|
|
228,315 |
|
| Long-term investments |
|
|
3,032 |
|
|
|
3,138 |
|
| Goodwill |
|
|
6,571 |
|
|
|
6,571 |
|
| Deferred tax assets, net |
|
|
13,432 |
|
|
|
17,193 |
|
| Other long-term assets |
|
|
47,276 |
|
|
|
45,952 |
|
|
Total assets |
|
$ |
1,071,155 |
|
|
$ |
956,375 |
|
| |
|
|
|
|
|
|
|
|
| LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
| Current liabilities: |
|
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
45,169 |
|
|
$ |
27,271 |
|
|
Accrued compensation and related benefits |
|
|
32,785 |
|
|
|
26,164 |
|
|
Other accrued liabilities |
|
|
58,831 |
|
|
|
44,790 |
|
|
Total current liabilities |
|
|
136,785 |
|
|
|
98,225 |
|
| Income tax liabilities |
|
|
35,624 |
|
|
|
37,596 |
|
| Other long-term
liabilities |
|
|
49,801 |
|
|
|
47,063 |
|
|
Total liabilities |
|
|
222,210 |
|
|
|
182,884 |
|
| Commitments and
contingencies |
|
|
|
|
|
|
|
|
| Stockholders’ equity: |
|
|
|
|
|
|
|
|
|
Common stock and additional paid-in capital: $0.001 par value;
shares authorized: 150,000; shares issued and outstanding: 44,911
and 43,616, respectively |
|
|
605,165 |
|
|
|
549,517 |
|
|
Retained earnings |
|
|
247,864 |
|
|
|
229,450 |
|
|
Accumulated other comprehensive loss |
|
|
(4,084 |
) |
|
|
(5,476 |
) |
|
Total stockholders’ equity |
|
|
848,945 |
|
|
|
773,491 |
|
|
Total liabilities and stockholders’ equity |
|
$ |
1,071,155 |
|
|
$ |
956,375 |
|
Monolithic Power Systems,
Inc.Condensed Consolidated Statements of
Operations(Unaudited, in thousands, except per share
amounts)
| |
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
| |
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
| Revenue |
|
$ |
186,209 |
|
|
$ |
151,007 |
|
|
$ |
351,987 |
|
|
$ |
292,370 |
|
| Cost of revenue |
|
|
83,616 |
|
|
|
67,782 |
|
|
|
157,947 |
|
|
|
131,139 |
|
|
Gross profit |
|
|
102,593 |
|
|
|
83,225 |
|
|
|
194,040 |
|
|
|
161,231 |
|
| Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development |
|
|
31,673 |
|
|
|
27,545 |
|
|
|
57,629 |
|
|
|
53,003 |
|
|
Selling, general and administrative |
|
|
40,883 |
|
|
|
35,058 |
|
|
|
73,047 |
|
|
|
65,611 |
|
|
Litigation expense |
|
|
2,082 |
|
|
|
503 |
|
|
|
4,423 |
|
|
|
781 |
|
|
Total operating expenses |
|
|
74,638 |
|
|
|
63,106 |
|
|
|
135,099 |
|
|
|
119,395 |
|
| Income from operations |
|
|
27,955 |
|
|
|
20,119 |
|
|
|
58,941 |
|
|
|
41,836 |
|
| Other income, net |
|
|
5,200 |
|
|
|
2,229 |
|
|
|
3,486 |
|
|
|
5,569 |
|
| Income before income
taxes |
|
|
33,155 |
|
|
|
22,348 |
|
|
|
62,427 |
|
|
|
47,405 |
|
| Income tax expense
(benefit) |
|
|
2,988 |
|
|
|
1,655 |
|
|
|
(3,495 |
) |
|
|
531 |
|
| Net income |
|
$ |
30,167 |
|
|
$ |
20,693 |
|
|
$ |
65,922 |
|
|
$ |
46,874 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.67 |
|
|
$ |
0.48 |
|
|
$ |
1.48 |
|
|
$ |
1.09 |
|
|
Diluted |
|
$ |
0.64 |
|
|
$ |
0.45 |
|
|
$ |
1.41 |
|
|
$ |
1.03 |
|
| Weighted-average shares
outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
44,785 |
|
|
|
43,109 |
|
|
|
44,620 |
|
|
|
42,929 |
|
|
Diluted |
|
|
46,831 |
|
|
|
45,483 |
|
|
|
46,750 |
|
|
|
45,358 |
|
SUPPLEMENTAL FINANCIAL
INFORMATION STOCK-BASED COMPENSATION
EXPENSE(Unaudited, in thousands)
| |
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
| |
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
| Cost of revenue |
|
$ |
642 |
|
|
$ |
663 |
|
|
$ |
1,199 |
|
|
$ |
1,193 |
|
| Research and development |
|
|
4,962 |
|
|
|
5,412 |
|
|
|
9,332 |
|
|
|
9,841 |
|
| Selling, general and
administrative |
|
|
15,440 |
|
|
|
16,634 |
|
|
|
29,075 |
|
|
|
27,685 |
|
| Total stock-based compensation
expense |
|
$ |
21,044 |
|
|
$ |
22,709 |
|
|
$ |
39,606 |
|
|
$ |
38,719 |
|
RECONCILIATION OF NET INCOME TO NON-GAAP
NET INCOME(Unaudited, in thousands, except per share
amounts)
| |
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
| |
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
| Net income |
|
$ |
30,167 |
|
|
$ |
20,693 |
|
|
$ |
65,922 |
|
|
$ |
46,874 |
|
|
Net income as a percentage of revenue |
|
|
16.2 |
% |
|
|
13.7 |
% |
|
|
18.7 |
% |
|
|
16.0 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjustments to reconcile net
income to non-GAAP net income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation expense |
|
|
21,044 |
|
|
|
22,709 |
|
|
|
39,606 |
|
|
|
38,719 |
|
|
Amortization of acquisition-related intangible assets |
|
|
- |
|
|
|
51 |
|
|
|
- |
|
|
|
102 |
|
|
Deferred compensation plan expense |
|
|
460 |
|
|
|
151 |
|
|
|
554 |
|
|
|
15 |
|
|
Tax effect |
|
|
(1,111 |
) |
|
|
(1,739 |
) |
|
|
(11,189 |
) |
|
|
(5,937 |
) |
| Non-GAAP net income |
|
$ |
50,560 |
|
|
$ |
41,865 |
|
|
$ |
94,893 |
|
|
$ |
79,773 |
|
|
Non-GAAP net income as a percentage of revenue |
|
|
27.2 |
% |
|
|
27.7 |
% |
|
|
27.0 |
% |
|
|
27.3 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Non-GAAP net income per
share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
1.13 |
|
|
$ |
0.97 |
|
|
$ |
2.13 |
|
|
$ |
1.86 |
|
|
Diluted |
|
$ |
1.08 |
|
|
$ |
0.92 |
|
|
$ |
2.03 |
|
|
$ |
1.76 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Shares used in the calculation
of non-GAAP net income per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
44,785 |
|
|
|
43,109 |
|
|
|
44,620 |
|
|
|
42,929 |
|
|
Diluted |
|
|
46,831 |
|
|
|
45,483 |
|
|
|
46,750 |
|
|
|
45,358 |
|
RECONCILIATION OF GROSS MARGIN TO
NON-GAAP GROSS MARGIN(Unaudited, in thousands)
| |
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
| |
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
| Gross profit |
|
$ |
102,593 |
|
|
$ |
83,225 |
|
|
$ |
194,040 |
|
|
$ |
161,231 |
|
|
Gross margin |
|
|
55.1 |
% |
|
|
55.1 |
% |
|
|
55.1 |
% |
|
|
55.1 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjustments to reconcile gross
profit to non-GAAP gross profit: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation expense |
|
|
642 |
|
|
|
663 |
|
|
|
1,199 |
|
|
|
1,193 |
|
|
Deferred compensation plan expense |
|
|
460 |
|
|
|
- |
|
|
|
406 |
|
|
|
- |
|
|
Amortization of acquisition-related intangible assets |
|
|
- |
|
|
|
51 |
|
|
|
- |
|
|
|
102 |
|
| Non-GAAP gross profit |
|
$ |
103,695 |
|
|
$ |
83,939 |
|
|
$ |
195,645 |
|
|
$ |
162,526 |
|
|
Non-GAAP gross margin |
|
|
55.7 |
% |
|
|
55.6 |
% |
|
|
55.6 |
% |
|
|
55.6 |
% |
RECONCILIATION OF OPERATING EXPENSES TO
NON-GAAP OPERATING EXPENSES(Unaudited, in thousands)
| |
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
| |
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
| Total operating expenses |
|
$ |
74,638 |
|
|
$ |
63,106 |
|
|
$ |
135,099 |
|
|
$ |
119,395 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjustments to reconcile total operating expenses to non-GAAP
total operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation expense |
|
|
(20,402 |
) |
|
|
(22,046 |
) |
|
|
(38,407 |
) |
|
|
(37,526 |
) |
|
Deferred compensation plan (expense) income |
|
|
(3,572 |
) |
|
|
(772 |
) |
|
|
30 |
|
|
|
(2,571 |
) |
| Non-GAAP operating
expenses |
|
$ |
50,664 |
|
|
$ |
40,288 |
|
|
$ |
96,722 |
|
|
$ |
79,298 |
|
RECONCILIATION OF OPERATING INCOME TO
NON-GAAP OPERATING INCOME(Unaudited, in thousands)
| |
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
| |
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
| Total operating income |
|
$ |
27,955 |
|
|
$ |
20,119 |
|
|
$ |
58,941 |
|
|
$ |
41,836 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjustments to reconcile total operating income to non-GAAP
total operating income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation expense |
|
|
21,044 |
|
|
|
22,709 |
|
|
|
39,606 |
|
|
|
38,719 |
|
|
Amortization of acquisition-related intangible assets |
|
|
- |
|
|
|
51 |
|
|
|
- |
|
|
|
102 |
|
|
Deferred compensation plan expense |
|
|
4,032 |
|
|
|
772 |
|
|
|
377 |
|
|
|
2,571 |
|
| Non-GAAP operating income |
|
$ |
53,031 |
|
|
$ |
43,651 |
|
|
$ |
98,924 |
|
|
$ |
83,228 |
|
RECONCILIATION OF OTHER INCOME, NET, TO
NON-GAAP OTHER INCOME, NET(Unaudited, in thousands)
| |
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
| |
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
| Total other income, net |
|
$ |
5,200 |
|
|
$ |
2,229 |
|
|
$ |
3,486 |
|
|
$ |
5,569 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjustments to reconcile other
income, net to non-GAAP other income, net: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred compensation plan (income) expense |
|
|
(3,572 |
) |
|
|
(620 |
) |
|
|
177 |
|
|
|
(2,556 |
) |
| Non-GAAP other income,
net |
|
$ |
1,628 |
|
|
$ |
1,609 |
|
|
$ |
3,663 |
|
|
$ |
3,013 |
|
RECONCILIATION OF INCOME BEFORE INCOME
TAXES TO NON-GAAP INCOME BEFORE INCOME TAXES(Unaudited, in
thousands)
| |
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
| |
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
| Total income before income
taxes |
|
$ |
33,155 |
|
|
$ |
22,348 |
|
|
$ |
62,427 |
|
|
$ |
47,405 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjustments to reconcile income before income taxes to non-GAAP
income before income taxes: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation expense |
|
|
21,044 |
|
|
|
22,709 |
|
|
|
39,606 |
|
|
|
38,719 |
|
|
Amortization of acquisition-related intangible assets |
|
|
- |
|
|
|
51 |
|
|
|
- |
|
|
|
102 |
|
|
Deferred compensation plan expense |
|
|
460 |
|
|
|
151 |
|
|
|
554 |
|
|
|
15 |
|
| Non-GAAP income before income
taxes |
|
$ |
54,659 |
|
|
$ |
45,259 |
|
|
$ |
102,587 |
|
|
$ |
86,241 |
|
2020 THIRD QUARTER
OUTLOOKRECONCILIATION OF GROSS MARGIN TO NON-GAAP
GROSS MARGIN(Unaudited)
| |
|
Three Months Ending |
|
| |
|
September 30, 2020 |
|
| |
|
Low |
|
|
High |
|
| Gross margin |
|
|
55.2 |
% |
|
|
55.8 |
% |
| Adjustments to reconcile gross
margin to non-GAAP gross margin: |
|
|
|
|
|
|
|
|
|
Stock-based compensation expense |
|
|
0.3 |
% |
|
|
0.3 |
% |
| Non-GAAP gross margin |
|
|
55.5 |
% |
|
|
56.1 |
% |
RECONCILIATION OF R&D AND SG&A
EXPENSES TO NON-GAAP R&D AND SG&A
EXPENSES(Unaudited, in thousands)
| |
|
Three Months Ending |
|
| |
|
September 30, 2020 |
|
| |
|
Low |
|
|
High |
|
|
R&D and SG&A expense |
|
$ |
70,700 |
|
|
$ |
74,700 |
|
| Adjustments to reconcile
R&D and SG&A expense to non-GAAP R&D and SG&A
expense: |
|
|
|
|
|
|
|
|
|
Stock-based compensation expense |
|
|
(20,500 |
) |
|
|
(22,500 |
) |
| Non-GAAP R&D and SG&A
expense |
|
$ |
50,200 |
|
|
$ |
52,200 |
|
Monolithic Power Systems (NASDAQ:MPWR)
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