Power Integrations (POWI) Q4 2000 earnings summary

Executive summary

• FY2000 was mixed: revenue grew 7.2%, while softness in cellular chargers and PC standby supplies weighed on performance; other markets grew 40% annually.

• Investment in R&D supported a record year of product introductions and the largest new-product pipeline to date.

Financial highlights

• FY2000 net revenue was $111.5M, up 7.2% YoY; product sales were $109.8M and license fees and royalties were $1.8M.

• Gross profit was $57.6M, or 51.7% of revenue, vs. $57.3M and 55.0% in 1999; 1999 included a one-time $1.4M supplier credit that added 1.3 percentage points to gross margin.

• Operating income was $25.7M vs. $26.7M; net income was $19.8M vs. $24.5M; diluted EPS was $0.69 vs. $0.87.

• Q4 2000 revenue was $26.6M, gross margin 50.1%, operating income $6.1M, net income $4.6M and diluted EPS $0.16.

Outlook and guidance

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

• Cash from operations and existing liquidity were expected to cover working capital and other cash needs for at least the next 12 months.

• TOPSwitch GX expanded the product range to 6–250 watts and was expected to open markets including laptop adapters, LCD monitors, printers and internet appliances.