Power Integrations (POWI) Q4 2013 earnings summary

Executive summary

• FY13 revenue rose to $347.1M from $305.4M, including a full year of Concept results versus eight months in FY12; higher unit sales across industrial, consumer and computer markets also contributed.

• FY13 net income was $57.3M versus a $34.4M loss in FY12; comparisons were affected by FY12 SemiSouth impairment charges and the IRS tax settlement.

• Q4 revenue was $90.4M, gross profit $48.4M and net income $16.0M; diluted EPS was $0.52.

Financial highlights

• FY13 revenue was $347.1M, up from $305.4M in FY12 and $298.7M in FY11; gross profit was $183.2M, $150.5M and $140.6M, respectively.

• Operating income was $54.1M in FY13, versus $11.4M in FY12 and $43.2M in FY11; FY12 included a $25.2M SemiSouth operating charge.

• FY13 net income was $57.3M and diluted EPS $1.88; FY12 net loss was $34.4M and diluted loss per share $1.20.

• Operating cash flow was $98.7M in FY13, compared with $51.8M in FY12 and $69.2M in FY11.

• Q4 FY13 revenue of $90.4M compared with $79.2M in Q4 FY12; Q4 net income was $16.0M versus $9.7M, with diluted EPS of $0.52 versus $0.34.

Outlook and guidance

• Expected international sales to remain a large share of revenue; international sales were 95% in FY13 and FY12.

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

• Foreign subsidiary earnings were expected to fund foreign working capital, growth needs and potential foreign acquisitions.