Monolithic Power Systems Announces Results for the Fourth

Monolithic Power Systems Announces Results for the Fourth Quarter and Year Ended December 31, 2017, and an Increase in Quarterly Cash Dividend

| More IC News

Monolithic Power Systems, Inc.
Condensed Consolidated Statements of Operations
(Unaudited, in thousands, except per share amounts)


	Three Months Ended December 31,						Year Ended December 31,
		2017			2016			2017			2016
Revenue	$	129,430		$	103,618		$	470,929		$	388,665
Cost of revenue		58,269			47,107			212,646			177,792
Gross profit		71,161			56,511			258,283			210,873
Operating expenses:
Research and development		21,730			17,974			82,359			73,643
Selling, general and administrative		24,038			21,316			97,257			83,012
Litigation expense (benefit), net		340			(321	)		1,243			(229	)
Total operating expenses		46,108			38,969			180,859			156,426
Income from operations		25,053			17,542			77,424			54,447
Interest and other income, net		1,647			897			5,520			2,817
Income before income taxes		26,700			18,439			82,944			57,264
Income tax provision		14,629			1,866			17,741			4,544
Net income	$	12,071		$	16,573		$	65,203		$	52,720

Net income per share:
Basic	$	0.29		$	0.41		$	1.58		$	1.30
Diluted	$	0.27		$	0.39		$	1.50		$	1.26
Weighted-average shares outstanding:
Basic		41,574			40,739			41,350			40,436
Diluted		44,160			42,404			43,578			41,915

Cash dividends declared per common share	$	0.20		$	0.20		$	0.80		$	0.80



SUPPLEMENTAL FINANCIAL INFORMATION
STOCK-BASED COMPENSATION EXPENSE
(Unaudited, in thousands)
	Three Months Ended December 31,						Year Ended December 31,
		2017			2016			2017			2016
Cost of revenue	$	391		$	358		$	1,654		$	1,575
Research and development		3,519			3,039			14,816			14,041
Selling, general and administrative		7,948			7,350			36,147			29,373
Total stock-based compensation expense	$	11,858		$	10,747		$	52,617		$	44,989



RECONCILIATION OF NET INCOME TO NON-GAAP NET INCOME
(Unaudited, in thousands, except per share amounts)
	Three Months Ended December 31,						Year Ended December 31,
		2017			2016			2017			2016
Net income	$	12,071		$	16,573		$	65,203		$	52,720
Net income as a percentage of revenue		9.3	%		16.0	%		13.8	%		13.6	%

Adjustments to reconcile net income to non-GAAP net income:
Stock-based compensation expense		11,858			10,747			52,617			44,989
Amortization of acquisition-related intangible assets		513			512			2,051			2,051
Deferred compensation plan expense (income)		148			29			238			(188	)
Tax effect ⁽¹⁾		11,688			(364	)		7,402			(3,265	)
Non-GAAP net income	$	36,278		$	27,497		$	127,511		$	96,307
Non-GAAP net income as a percentage of revenue		28.0	%		26.5	%		27.1	%		24.8	%

Non-GAAP net income per share:
Basic	$	0.87		$	0.67		$	3.08		$	2.38
Diluted	$	0.82		$	0.65		$	2.93		$	2.30

Shares used in the calculation of non-GAAP net income per share:
Basic		41,574			40,739			41,350			40,436
Diluted		44,160			42,404			43,578			41,915

(1) Tax effect for the quarter and year ended December 31, 2017 includes a one-time charge of $13.5 million associated with the enactment of the 2017 Tax Act due to its unique non-recurring nature.

RECONCILIATION OF GROSS MARGIN TO NON-GAAP GROSS MARGIN
(Unaudited, in thousands)
	Three Months Ended December 31,						Year Ended December 31,
		2017			2016			2017			2016
Gross profit	$	71,161		$	56,511		$	258,283		$	210,873
Gross margin		55.0	%		54.5	%		54.8	%		54.3	%

Adjustments to reconcile gross profit to non-GAAP gross profit:
Stock-based compensation expense		391			358			1,654			1,575
Amortization of acquisition-related intangible assets		513			512			2,051			2,051
Non-GAAP gross profit	$	72,065		$	57,381		$	261,988		$	214,499
Non-GAAP gross margin		55.7	%		55.4	%		55.6	%		55.2	%



RECONCILIATION OF OPERATING EXPENSES TO NON-GAAP OPERATING EXPENSES
(Unaudited, in thousands)
	Three Months Ended December 31,						Year Ended December 31,
		2017			2016			2017			2016
Total operating expenses	$	46,108		$	38,969		$	180,859		$	156,426

Adjustments to reconcile total operating expenses to non-GAAP total operating expenses:
Stock-based compensation expense		(11,467	)		(10,389	)		(50,963	)		(43,414	)
Deferred compensation plan expense		(776	)		(189	)		(2,769	)		(1,069	)
Non-GAAP operating expenses	$	33,865		$	28,391		$	127,127		$	111,943



RECONCILIATION OF OPERATING INCOME TO NON-GAAP OPERATING INCOME
(Unaudited, in thousands)
	Three Months Ended December 31,						Year Ended December 31,
		2017			2016			2017			2016
Total operating income	$	25,053		$	17,542		$	77,424		$	54,447
Operating income as a percentage of revenue		19.4	%		16.9	%		16.4	%		14.0	%

Adjustments to reconcile total operating income to non-GAAP total operating income:
Stock-based compensation expense		11,858			10,747			52,617			44,989
Amortization of acquisition-related intangible assets		513			512			2,051			2,051
Deferred compensation plan expense		776			189			2,769			1,069
Non-GAAP operating income	$	38,200		$	28,990		$	134,861		$	102,556
Non-GAAP operating income as a percentage of revenue		29.5	%		28.0	%		28.6	%		26.4	%



RECONCILIATION OF INTEREST AND OTHER INCOME, NET, TO NON-GAAP INTEREST AND OTHER INCOME, NET
(Unaudited, in thousands)
	Three Months Ended December 31,						Year Ended December 31,
		2017			2016			2017			2016
Total interest and other income, net	$	1,647		$	897		$	5,520		$	2,817

Adjustments to reconcile interest and other income to non-GAAP interest and other income:
Deferred compensation plan income		(628	)		(160	)		(2,531	)		(1,257	)
Non-GAAP interest and other income, net	$	1,019		$	737		$	2,989		$	1,560



RECONCILIATION OF INCOME BEFORE INCOME TAXES TO NON-GAAP INCOME BEFORE INCOME TAXES
(Unaudited, in thousands)
	Three Months Ended December 31,						Year Ended December 31,
		2017			2016			2017			2016
Total income before income taxes	$	26,700		$	18,439		$	82,944		$	57,264

Adjustments to reconcile income before income taxes to non-GAAP income before income taxes:
Stock-based compensation expense		11,858			10,747			52,617			44,989
Amortization of acquisition-related intangible assets		513			512			2,051			2,051
Deferred compensation plan expense (income)		148			29			238			(188	)
Non-GAAP income before income taxes	$	39,219		$	29,727		$	137,850		$	104,116

« Previous Page 1 | 2 | 3 | 4 | 5 Next Page »