Power Integrations Q3 2024 Results Show Sales Decline

TL;DR

POWI Q3 sales down YoY. Watch for Q4.

AI Summary

Power Integrations Inc. reported its Q3 2024 results, with net sales for the third quarter ending September 30, 2024, showing a decrease compared to the same period in 2023. The company's fiscal year ends on December 31st. A subsequent event was noted on October 22, 2024.

Why It Matters

This filing provides insight into Power Integrations' financial performance, indicating a potential slowdown in their semiconductor business which could impact investor confidence and future growth prospects.

Risk Assessment

Risk Level: medium — The filing indicates a decline in net sales, suggesting potential market challenges or competitive pressures affecting the company's revenue.

Key Numbers

• Q3 2024 — Reporting Period (The company is reporting on its performance for the third quarter of fiscal year 2024.)
• 2024-09-30 — End of Fiscal Quarter (This date marks the end of the period covered by the financial statements in the 10-Q.)

Key Players & Entities

• Power Integrations Inc. (company) — Filer of the 10-Q report.
• 20240930 (date) — End of the reporting period for the 10-Q.
• 20241106 (date) — Date the 10-Q was filed.
• 2024-10-22 (date) — Date of a noted subsequent event.

FAQ

Filing Documents

• powi-20240930x10q.htm (10-Q) — 1902KB
• powi-20240930xex31d1.htm (EX-31.1) — 14KB
• powi-20240930xex31d2.htm (EX-31.2) — 14KB
• powi-20240930xex32d1.htm (EX-32.1) — 9KB
• powi-20240930xex32d2.htm (EX-32.2) — 9KB
• 0000833640-24-000171.txt ( ) — 8516KB
• powi-20240930.xsd (EX-101.SCH) — 44KB
• powi-20240930_cal.xml (EX-101.CAL) — 55KB
• powi-20240930_def.xml (EX-101.DEF) — 146KB
• powi-20240930_lab.xml (EX-101.LAB) — 389KB
• powi-20240930_pre.xml (EX-101.PRE) — 284KB
• powi-20240930x10q_htm.xml (XML) — 1995KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION Item 1.

Financial Statements

Financial Statements Condensed Consolidated Balance Sheets as of September 30, 2024 and December 31, 2023 (Unaudited) 4 Condensed Consolidated Statements of Income for the three and nine months ended September 30, 2024 and 2023 (Unaudited) 5 Condensed Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2024 and 2023 (Unaudited) 6 Condensed Consolidated Statements of Stockholders' Equity for the three and nine months ended September 30, 2024 and 2023 (Unaudited) 7 Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2024 and 2023 (Unaudited) 8 Notes to Unaudited Condensed Consolidated Financial Statements 9 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 23 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 31 Item 4.

Controls and Procedures

Controls and Procedures 31

OTHER INFORMATION

PART II. OTHER INFORMATION 32 Item 1.

Legal Proceedings

Legal Proceedings 32 Item 1A.

Risk Factors

Risk Factors 32 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 32 Item 5. Other Information 32 Item 6. Exhibits 33

SIGNATURES

SIGNATURES 35 2 Table of Contents Cautionary Note Regarding Forward-Looking Statements This Quarterly Report on Form 10-Q includes a number of forward-looking statements that involve many risks and uncertainties. Forward-looking statements are identified by the use of the words "would," "could," "will," "may," "expect," "believe," "should," "anticipate," "if," "future," "intend," "plan," "estimate," "potential," "target," "seek," or "continue" and similar words and phrases, including the negatives of these terms, or other variations of these terms, that denote future events. These statements reflect our current views with respect to future events and our potential financial performance and are subject to risks and uncertainties that could cause our actual results and financial position to differ materially and/or adversely from what is projected or implied in any forward-looking statements included in this Quarterly Report on Form 10-Q. These factors include, but are not limited to: if demand for our products continues to decline in our major end markets, our net revenues will decline further; we do not have long-term contracts with any of our customers and if they fail to place, or if they cancel or reschedule orders for our products, our operating results and our business may suffer; our products are sold through distributors, which limits our direct interaction with our end customers, therefore reducing our ability to forecast sales and increasing the complexity of our business; if our products do not penetrate additional markets, our business will not grow as we expect; intense competition in the high-voltage power supply industry may lead to a decrease in our average selling price and reduced sales volume of our products; we depend on third-party suppliers to provide us with wafers for our products, and if they fail to provide us sufficient quantities of wafers, our business may suffer; if we are unable to adequately protect or enforce our intellectual p

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS POWER INTEGRATIONS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (In thousands) September 30, 2024 December 31, 2023 ASSETS CURRENT ASSETS: Cash and cash equivalents $ 58,469 $ 63,929 Short-term marketable securities 245,282 247,640 Accounts receivable, net 16,634 14,674 Inventories 167,680 163,164 Prepaid expenses and other current assets 19,821 22,193 Total current assets 507,886 511,600 PROPERTY AND EQUIPMENT, net 153,313 164,213 INTANGIBLE ASSETS, net 8,283 4,424 GOODWILL 95,271 91,849 DEFERRED TAX ASSETS 36,393 28,325 OTHER ASSETS 23,845 19,457 Total assets $ 824,991 $ 819,868 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable $ 27,091 $ 26,390 Accrued payroll and related expenses 13,337 13,551 Taxes payable 1,063 1,016 Other accrued liabilities 9,267 7,910 Total current liabilities 50,758 48,867 LONG-TERM INCOME TAXES PAYABLE 6,351 6,244 OTHER LIABILITIES 18,669 12,516 Total liabilities 75,778 67,627 COMMITMENTS AND CONTINGENCIES (Notes 11, 12 and 13) STOCKHOLDERS' EQUITY: Common stock 22 23 Additional paid-in capital 11,347 — Accumulated other comprehensive income (loss) 1,008 ( 1,462 ) Retained earnings 736,836 753,680 Total stockholders' equity 749,213 752,241 Total liabilities and stockholders' equity $ 824,991 $ 819,868 The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. 4 Table of Contents POWER INTEGRATIONS, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, (In thousands, except per share amounts) 2024 2023 2024 2023 NET REVENUES $ 115,837 $ 125,511 $ 313,723 $ 355,031 COST OF REVENUES 52,666 59,566 146,239 172,283 GROSS PROFIT 63,171 65,945 167,484 182,748

View Full Filing

View this 10-Q filing on SEC EDGAR