Power Integrations (POWI) Q4 1998 earnings summary

Executive summary

• Record FY1998 revenue of $70.0M, up 52.2% YoY; net income reached $12.7M versus $4.8M in 1997.

• FY1998 diluted EPS was $0.96; reported earnings benefited from tax credits and net operating loss carryforwards.

• Q4 revenue was $20.2M, operating income $4.6M and net income $4.2M.

Financial highlights

• Product sales rose to $68.2M from $44.8M; license fees and royalties increased to $1.8M from $1.2M.

• Operating income reached $14.0M, versus $6.0M in 1997; gross profit was $33.4M, versus $19.7M.

• Operating cash flow was $18.5M in 1998, up from $8.1M in 1997.

Outlook and guidance

• Operating expenses are expected to rise in absolute dollars as R&D, sales, marketing and administrative resources expand.

• TinySwitch and EcoSmart are positioned for energy-sensitive, low-power applications; EcoSmart is planned for incorporation into future products.

• Existing operating cash and liquidity sources are expected to meet working-capital and other cash needs for at least 12 months.