Power Integrations Announces First Quarter Results

Apr 25, 2001, 01:00 ET from Power Integrations, Inc.

    SAN JOSE, Calif., April 25 /PRNewswire/ --
 Power Integrations, Inc. (Nasdaq: POWI) a leading supplier of high-voltage
 analog integrated circuits for use in AC to DC power conversion, today
 announced financial results for its first quarter ended March 31, 2001.
     Net revenues for the first quarter of 2001 were $26.2 million compared
 with net revenues of $28.0 million in the first quarter of 2000.  Net income
 for the first quarter of 2001 was $3.9 million, or $0.14 per diluted share on
 approximately 28.4 million shares outstanding.  This compares with first
 quarter 2000 net income of $4.9 million, or $0.17 on approximately
 28.9 million shares outstanding.
     "In light of the challenging economic environment, we are pleased with the
 results we achieved," said Howard Earhart, chairman and chief executive
 officer of Power Integrations.  "However, the order rate turned dramatically
 down as we progressed through the quarter and has greatly reduced our
 visibility and outlook for our near-term results."
     "Despite these unfavorable conditions, we believe the issues we are facing
 are temporary in nature. Our commitment to increase our market penetration
 rates and diversify our customer base through broader product offerings
 remains strong," he added.  "As a result, we will make the necessary
 investments to continue our accelerated new product development and the
 expansion of our addressable markets."
 
     Second Quarter 2001 Outlook
     The following statements are based on current expectations. These
 statements are forward-looking, and actual results may differ materially.
     Revenue for the second quarter is expected to decline sequentially by
 approximately 25 to 30 percent.  With the continued investment in new product
 and market development, operating expenses may increase by 12 to 15 percent
 from the first quarter.  Driven primarily by lower production volume, gross
 margin is expected to be in a range of 45 to 48 percent.  Based on the above,
 second quarter earnings are expected to be at breakeven.
 
     Conference Call
     Power Integrations will broadcast its conference call discussion of its
 first quarter 2001 results and other developments for the company live over
 the Internet on Wednesday, April 25, 2001, 1:30 p.m. PDT (4:30 P.M. EDT).
 Interested parties may access the conference call over the Internet through
 the Investor Relations section of the Power Integrations web site at
 http://www.powerint.com .  To listen to the live call, please go to the web
 site at least 15 minutes early to download and install any necessary audio
 software.  A replay of the conference call will be indexed and archived on the
 company's site two hours following completion of the event.
 
     Safe Harbor Statement
     This press release contains forward-looking statements, which reflect
 management's current forecast of certain aspects of the Company's future
 business.  These forward looking statements are based on current information
 which we have assessed, but which by its nature, is subject to rapid and even
 abrupt changes.  Forward looking statements are denoted by the use of such
 words and phrases as "will," "expects," "believe," "should" and similar words
 and phrases that look toward future events or performance.  The Company's
 actual results could differ materially from those projected or implied by our
 forward looking statements due to risks and uncertainties associated with the
 Company's business.  These include, but are not limited to, changes and shifts
 in customer demand away from products that integrate the Company's ICs to
 products that do not.  Other factors include, but are not limited to, our
 ability to maintain and establish strategic relationships; the effects of
 competition; the risks inherent in the development and delivery of complex
 technologies; our ability to attract, retain and motivate qualified personnel;
 the emergence of new markets for our products and services, and our ability to
 compete in those markets based on timeliness, cost and market demand; and our
 limited financial resources.  Acceleration in new product introductions are
 subject to the risks and uncertainties that typically accompany accelerated
 development and delivery of complex technologies to the market place,
 including product development delays and defects.  We more fully discuss these
 and other risk factors in the Company's most recent reports on Form 10-K and
 Form 10-Q filed with the Securities and Exchange Commission.
 
     About Power Integrations
     Power Integrations, Inc. is a leading supplier of high-voltage analog
 integrated circuits for use in AC to DC power conversion.  For more
 information, visit the company's web site at:  www.powerint.com or contact the
 company at 5245 Hellyer Ave., San Jose, Calif. 95138; 408-414-9200.
 
 
                             POWER INTEGRATIONS, INC.
                       CONSOLIDATED STATEMENTS OF OPERATIONS
                     (in thousands, except per share amounts)
                                    (Unaudited)
 
 
                                                        THREE MONTHS ENDED
                                                             MARCH 31
                                                      2001              2000
 
     NET REVENUES
 
        Product sales                               $25,821           $27,587
        License fees and royalties                      375               423
 
            Total Net Revenues                       26,196            28,010
 
     COST OF REVENUES                                12,781            13,442
 
     GROSS PROFIT                                    13,415            14,568
 
     OPERATING EXPENSES:
 
        Research and development                      3,546             3,055
        Sales and marketing                           3,510             3,408
        General and administrative                    1,302             1,917
 
            Total Operating Expenses                  8,358             8,380
 
     INCOME FROM OPERATIONS                           5,057             6,188
 
     OTHER INCOME (EXPENSE):
 
        Interest income and other                       543               807
        Interest expense                                (21)              (52)
 
            Total other income                          522               755
 
     INCOME BEFORE PROVISION FOR                      5,579             6,943
        INCOME TAXES
 
     PROVISION FOR INCOME TAXES                       1,707             2,082
 
     NET INCOME                                      $3,872            $4,861
 
     EARNINGS PER SHARE:
        Basic                                         $0.14             $0.18
 
        Diluted                                       $0.14             $0.17
 
     SHARES USED IN PER SHARE CALCULATION:
        Basic                                        27,522            26,756
 
        Diluted                                      28,449            28,877
 
 
                              POWER INTEGRATIONS, INC.
                            CONSOLIDATED BALANCE SHEETS
                                  (in thousands)
 
                                                  March 31,        December 31,
                                                    2001               2000
                                                 (Unaudited)
 
                    ASSETS
 
     CURRENT ASSETS:
 
       Cash and cash equivalents                    $41,975            $36,462
       Short-term Investments                        24,225             26,972
       Accounts receivable                            9,357              9,189
       Inventories                                   21,634             21,599
       Prepaid expenses and other current assets     10,531             10,672
 
         Total current assets                       107,722            104,894
 
     PROPERTY AND EQUIPMENT, AT COST:
       Machinery and equipment                       32,368             28,832
       Leasehold improvements                         9,779              9,278
 
                                                     42,147             38,110
       Less: Accumulated depreciation               (17,189)           (15,613)
 
                                                     24,958             22,497
 
                                                   $132,680           $127,391
 
     LIABILITIES AND STOCKHOLDERS' EQUITY
 
     CURRENT LIABILITIES:
       Current portion of capitalized
        lease obligations                              $649               $678
       Accounts payable                               7,125              7,490
       Accrued payroll and related
        expenses                                      3,005              2,980
       Taxes payable and other accrued
        liabilities                                   4,227              4,175
       Deferred income on sales to
        distributors                                  2,748              2,566
 
         Total current liabilities                   17,754             17,889
 
     LONG TERM LIABILITIES:
       Long term leases                                 555                715
       Deferred rent                                     94                 --
         Total long term liabilities                    649                715
 
 
     STOCKHOLDERS' EQUITY:
 
       Common stock                                      28                 28
       Additional paid-in capital                    75,630             74,049
       Shareholder notes receivable                     (76)               (76)
       Deferred compensation                             (6)               (41)
       Cumulative translation adjustment               (116)              (118)
       Retained earnings                             38,817             34,945
 
       Total stockholders' equity                   114,277            108,787
 
                                                   $132,680           $127,391
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X12634565
 
 

SOURCE Power Integrations, Inc.
    SAN JOSE, Calif., April 25 /PRNewswire/ --
 Power Integrations, Inc. (Nasdaq: POWI) a leading supplier of high-voltage
 analog integrated circuits for use in AC to DC power conversion, today
 announced financial results for its first quarter ended March 31, 2001.
     Net revenues for the first quarter of 2001 were $26.2 million compared
 with net revenues of $28.0 million in the first quarter of 2000.  Net income
 for the first quarter of 2001 was $3.9 million, or $0.14 per diluted share on
 approximately 28.4 million shares outstanding.  This compares with first
 quarter 2000 net income of $4.9 million, or $0.17 on approximately
 28.9 million shares outstanding.
     "In light of the challenging economic environment, we are pleased with the
 results we achieved," said Howard Earhart, chairman and chief executive
 officer of Power Integrations.  "However, the order rate turned dramatically
 down as we progressed through the quarter and has greatly reduced our
 visibility and outlook for our near-term results."
     "Despite these unfavorable conditions, we believe the issues we are facing
 are temporary in nature. Our commitment to increase our market penetration
 rates and diversify our customer base through broader product offerings
 remains strong," he added.  "As a result, we will make the necessary
 investments to continue our accelerated new product development and the
 expansion of our addressable markets."
 
     Second Quarter 2001 Outlook
     The following statements are based on current expectations. These
 statements are forward-looking, and actual results may differ materially.
     Revenue for the second quarter is expected to decline sequentially by
 approximately 25 to 30 percent.  With the continued investment in new product
 and market development, operating expenses may increase by 12 to 15 percent
 from the first quarter.  Driven primarily by lower production volume, gross
 margin is expected to be in a range of 45 to 48 percent.  Based on the above,
 second quarter earnings are expected to be at breakeven.
 
     Conference Call
     Power Integrations will broadcast its conference call discussion of its
 first quarter 2001 results and other developments for the company live over
 the Internet on Wednesday, April 25, 2001, 1:30 p.m. PDT (4:30 P.M. EDT).
 Interested parties may access the conference call over the Internet through
 the Investor Relations section of the Power Integrations web site at
 http://www.powerint.com .  To listen to the live call, please go to the web
 site at least 15 minutes early to download and install any necessary audio
 software.  A replay of the conference call will be indexed and archived on the
 company's site two hours following completion of the event.
 
     Safe Harbor Statement
     This press release contains forward-looking statements, which reflect
 management's current forecast of certain aspects of the Company's future
 business.  These forward looking statements are based on current information
 which we have assessed, but which by its nature, is subject to rapid and even
 abrupt changes.  Forward looking statements are denoted by the use of such
 words and phrases as "will," "expects," "believe," "should" and similar words
 and phrases that look toward future events or performance.  The Company's
 actual results could differ materially from those projected or implied by our
 forward looking statements due to risks and uncertainties associated with the
 Company's business.  These include, but are not limited to, changes and shifts
 in customer demand away from products that integrate the Company's ICs to
 products that do not.  Other factors include, but are not limited to, our
 ability to maintain and establish strategic relationships; the effects of
 competition; the risks inherent in the development and delivery of complex
 technologies; our ability to attract, retain and motivate qualified personnel;
 the emergence of new markets for our products and services, and our ability to
 compete in those markets based on timeliness, cost and market demand; and our
 limited financial resources.  Acceleration in new product introductions are
 subject to the risks and uncertainties that typically accompany accelerated
 development and delivery of complex technologies to the market place,
 including product development delays and defects.  We more fully discuss these
 and other risk factors in the Company's most recent reports on Form 10-K and
 Form 10-Q filed with the Securities and Exchange Commission.
 
     About Power Integrations
     Power Integrations, Inc. is a leading supplier of high-voltage analog
 integrated circuits for use in AC to DC power conversion.  For more
 information, visit the company's web site at:  www.powerint.com or contact the
 company at 5245 Hellyer Ave., San Jose, Calif. 95138; 408-414-9200.
 
 
                             POWER INTEGRATIONS, INC.
                       CONSOLIDATED STATEMENTS OF OPERATIONS
                     (in thousands, except per share amounts)
                                    (Unaudited)
 
 
                                                        THREE MONTHS ENDED
                                                             MARCH 31
                                                      2001              2000
 
     NET REVENUES
 
        Product sales                               $25,821           $27,587
        License fees and royalties                      375               423
 
            Total Net Revenues                       26,196            28,010
 
     COST OF REVENUES                                12,781            13,442
 
     GROSS PROFIT                                    13,415            14,568
 
     OPERATING EXPENSES:
 
        Research and development                      3,546             3,055
        Sales and marketing                           3,510             3,408
        General and administrative                    1,302             1,917
 
            Total Operating Expenses                  8,358             8,380
 
     INCOME FROM OPERATIONS                           5,057             6,188
 
     OTHER INCOME (EXPENSE):
 
        Interest income and other                       543               807
        Interest expense                                (21)              (52)
 
            Total other income                          522               755
 
     INCOME BEFORE PROVISION FOR                      5,579             6,943
        INCOME TAXES
 
     PROVISION FOR INCOME TAXES                       1,707             2,082
 
     NET INCOME                                      $3,872            $4,861
 
     EARNINGS PER SHARE:
        Basic                                         $0.14             $0.18
 
        Diluted                                       $0.14             $0.17
 
     SHARES USED IN PER SHARE CALCULATION:
        Basic                                        27,522            26,756
 
        Diluted                                      28,449            28,877
 
 
                              POWER INTEGRATIONS, INC.
                            CONSOLIDATED BALANCE SHEETS
                                  (in thousands)
 
                                                  March 31,        December 31,
                                                    2001               2000
                                                 (Unaudited)
 
                    ASSETS
 
     CURRENT ASSETS:
 
       Cash and cash equivalents                    $41,975            $36,462
       Short-term Investments                        24,225             26,972
       Accounts receivable                            9,357              9,189
       Inventories                                   21,634             21,599
       Prepaid expenses and other current assets     10,531             10,672
 
         Total current assets                       107,722            104,894
 
     PROPERTY AND EQUIPMENT, AT COST:
       Machinery and equipment                       32,368             28,832
       Leasehold improvements                         9,779              9,278
 
                                                     42,147             38,110
       Less: Accumulated depreciation               (17,189)           (15,613)
 
                                                     24,958             22,497
 
                                                   $132,680           $127,391
 
     LIABILITIES AND STOCKHOLDERS' EQUITY
 
     CURRENT LIABILITIES:
       Current portion of capitalized
        lease obligations                              $649               $678
       Accounts payable                               7,125              7,490
       Accrued payroll and related
        expenses                                      3,005              2,980
       Taxes payable and other accrued
        liabilities                                   4,227              4,175
       Deferred income on sales to
        distributors                                  2,748              2,566
 
         Total current liabilities                   17,754             17,889
 
     LONG TERM LIABILITIES:
       Long term leases                                 555                715
       Deferred rent                                     94                 --
         Total long term liabilities                    649                715
 
 
     STOCKHOLDERS' EQUITY:
 
       Common stock                                      28                 28
       Additional paid-in capital                    75,630             74,049
       Shareholder notes receivable                     (76)               (76)
       Deferred compensation                             (6)               (41)
       Cumulative translation adjustment               (116)              (118)
       Retained earnings                             38,817             34,945
 
       Total stockholders' equity                   114,277            108,787
 
                                                   $132,680           $127,391
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X12634565
 
 SOURCE  Power Integrations, Inc.

RELATED LINKS

http://www.powerint.com