Quarterly revenues grew 16 percent year-over-year to $101.1 million; GAAP earnings were $0.46 per diluted share; non-GAAP earnings were $0.67 per diluted share
Full-year revenues were $387.4 million, up 13 percent from the prior year; company generated $97.9 million in cash flow from operations in 2016
SAN JOSE, Calif. — (BUSINESS WIRE) — February 1, 2017 — Power Integrations (Nasdaq: POWI) today announced financial results for the quarter and year ended December 31, 2016. Net revenues for the fourth quarter were $101.1 million, a decrease of three percent from the prior quarter, and an increase of 16 percent from the fourth quarter of 2015. Net income was $13.6 million or $0.46 per diluted share, compared to $0.48 per diluted share in the prior quarter and $0.44 per diluted share in the fourth quarter of 2015. Cash flow from operations for the quarter was $27.7 million.
In addition to its GAAP results, the company provided certain non-GAAP financial measures that exclude stock-based compensation expenses, amortization of intangible assets, other acquisition-related expenses, and the tax effects of these items. Non-GAAP net income for the fourth quarter was $20.2 million or $0.67 per diluted share, compared with $0.72 per diluted share in the prior quarter and $0.58 per diluted share in the fourth quarter of 2015.
For the full year, net revenues were $387.4 million, an increase of 13 percent compared to the prior year. GAAP net income for the year was $1.62 per diluted share, compared with $1.32 per diluted share in the prior year. Non-GAAP net income was $2.49 per diluted share, compared with $2.03 per diluted share in the prior year. Cash flow from operations totaled $97.9 million for the full year.
Commented Balu Balakrishnan, president and CEO of Power Integrations: “We ended 2016 with another strong quarter, and we’re entering 2017 with momentum fueled by innovative products, an expanding addressable market, and dynamic secular trends such as faster charging for mobile devices, smarter homes and appliances, and the continued global push for greater energy efficiency and cleaner energy.”
Additional Highlights
- The company had $250.5 million in cash and short-term marketable securities at quarter-end, an increase of $23.9 million during the quarter.
- Power Integrations paid a dividend of $0.13 per share on December 30, 2016. A dividend of $0.14 per share is scheduled to be paid on March 31, 2017, to stockholders of record as of February 28, 2017.
- Power Integrations was issued 13 U.S. patents during the fourth quarter.
Adoption of New Accounting Standard for 2017
Effective January 1, 2017, Power Integrations adopted the Financial Accounting Standards Board’s new standard for revenue recognition (ASC 606), under which the company is required to recognize revenues on sales to distributors upon shipment (the “sell-in” method) beginning with the first quarter of 2017. Prior to adopting ASC 606, the company utilized the “sell-through” method for a high percentage of its distribution sales; under this method revenue was deferred until distributors reported that they had sold the company’s products to end customers.
In adopting the new standard, Power Integrations elected to use the full retrospective method; accordingly, the company has recast its results for 2015 and 2016 as if the new standard had been in effect during those years. The table below displays the company’s revenues, cost of revenues and GAAP earnings per share for 2015 and 2016 as originally reported and as recast under the new standard. Full recast income statements, balance sheets and cash-flow statements, including reconciliations of non-GAAP measures, are available on the company’s investor website. (See document entitled “Recast Financials.”)
| FY 2015 | FY 2016 | |||||||||||
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(in millions, except per-share data) |
Originally
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Under New
|
Originally
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Under New
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| Net Revenues | $ | 344.0 | $ | 344.6 | $ | 387.4 | $ | 389.7 | ||||
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Cost of Revenues (GAAP) |
$ | 170.6 | $ | 171.3 | $ | 196.2 | $ | 197.5 | ||||
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Net income/diluted share (GAAP) |
$ | 1.32 | $ | 1.32 | $ | 1.62 | $ | 1.65 | ||||
