8-K - POWI - Equibles

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

______________

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): February 6, 2025

______________

Power Integrations, Inc.

(Exact name of registrant as specified in its charter)

______________


Delaware	000-23441	94-3065014
(State or other jurisdiction	(Commission	(IRS Employer
of incorporation)	File Number)	Identification No.)

5245 Hellyer Avenue

San Jose , California **** 95138-1002

(Address of principal executive offices, including zip code)

Registrant's telephone number, including area code ( 408 ) 414-9200

______________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:


Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock, $0.001 Par Value		POWI		The Nasdaq Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

<br><br><br><br>
Emerging growth company ****	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.	☐

Item 2.02. Results of Operations and Financial Condition.

On February 6, 2025 the Registrant issued a press release, a copy of which is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

Item 9.01. Financial Statements and Exhibits.


	Exhibit 99.1	Press release dated February 6, 2025
	Exhibit 104	Cover Page Interactive Data File (Formatted as Inline XBRL)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


		Power Integrations, Inc.

Dated:	February 6, 2025	By:	/s/ SANDEEP NAYYAR
			Sandeep Nayyar
			Chief Financial Officer

POWI - Q4'24 - 8-K - EX99.1

Exhibit 99.1 Power Integrations Reports Fourth-Quarter and Full-Year Financial Results

Quarterly revenues increased 18 percent year-over-year to $105.2 million ; GAAP earnings were $0.16 per diluted share; non-GAAP earnings were $0.30 per diluted share

SAN JOSE, CALIF. – February 6, 2025 – Power Integrations (NASDAQ: POWI) today announced financial results for the quarter and year ended December 31, 2024. Net revenues for the fourth quarter were $105.2 million, down nine percent from the prior quarter and up 18 percent from the fourth quarter of 2023. GAAP net income for the fourth quarter was $9.1 million or $0.16 per diluted share compared to $0.25 per diluted share in the prior quarter and $0.25 per diluted share in the fourth quarter of 2023. Cash flow from operations for the fourth quarter was $14.7 million.

In addition to its GAAP results, the company provided non-GAAP measures that exclude stock-based compensation, amortization of acquisition-related intangible assets and the related tax effects. Non-GAAP net income for the fourth quarter of 2024 was $17.2 million or $0.30 per diluted share compared to $0.40 per diluted share in the prior quarter and $0.22 per diluted share in the fourth quarter of 2023. A reconciliation of GAAP to non-GAAP financial results is included with the tables accompanying this press release.

For the full year, net revenues were $419.0 million, compared to $444.5 million in the prior year. Full-year GAAP net income was $32.2 million or $0.56 per diluted share, compared to $0.97 per diluted share in the prior year. Non-GAAP net income was $1.16 per diluted share, compared to $1.29 per diluted share in the prior year. Cash flow from operations for the full year was $81.2 million.

Commented Balu Balakrishnan, chairman and CEO of Power Integrations: “Fourth-quarter revenues were up 18 percent year-over-year, and we expect another double-digit increase in the first quarter. While the demand outlook is cloudy, especially in light of uncertainty around trade policy, we expect growth in a variety of end-markets in 2025, including renewable energy, high-voltage DC transmission, metering, automotive, appliances and more. Products featuring our proprietary PowiGaN™ technology should contribute significant growth this year as adoption accelerates across a broad set of high-voltage power-conversion applications.”

Additional Highlights

●	Power Integrations paid a dividend of $0.21 per share on December 31, 2024. A dividend of $0.21 per share will be paid on March 31, 2025, to stockholders of record as of February 28, 2025.
●	The company utilized $1.9 million for share repurchases during the fourth quarter, leaving $48.1 million remaining on its repurchase authorization as of December 31.
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Financial Outlook

The company issued the following forecast for the first quarter of 2025:

●	Revenues are expected to be flat compared to the fourth quarter of 2024, plus or minus five percent.
●	GAAP gross margin is expected to be between 55 percent and 55.5 percent, and non-GAAP gross margin is expected to be between 55.5 percent and 56 percent. The difference between GAAP and non-GAAP is primarily attributable to stock-based compensation, with a smaller impact from amortization of acquisition-related intangible assets.
---	---
●	GAAP operating expenses are expected to be approximately $54 million; non-GAAP operating expenses are expected to be approximately $45 million. Non-GAAP operating expenses are expected to exclude approximately $9 million of stock-based compensation.
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Conference Call Today at 1:30 p.m. Pacific Time

Power Integrations management will hold a conference call today at 1:30 p.m. Pacific time. A live webcast of the call will be available on the investor section of the company's website, http://investors.power.com. Members of the investment community can register for the conference call by visiting https://emportal.ink/3C0h3y6.

About Power Integrations

Power Integrations, Inc. is a leading innovator in semiconductor technologies for high-voltage power conversion. The company’s products are key building blocks in the clean-power ecosystem, enabling the generation of renewable energy as well as the efficient transmission and consumption of power in applications ranging from milliwatts to megawatts. For more information, please visit www.power.com.

Note Regarding Use of Non-GAAP Financial Measures

In addition to the company's consolidated financial statements, which are presented according to GAAP, the company provides certain non-GAAP financial information that excludes stock-based compensation expenses recorded under ASC 718-10, amortization of acquisition-related intangible assets and the tax effects of these items. The company uses these measures in its financial and operational decision-making and, with respect to one measure, in setting performance targets for compensation purposes. The company believes that these non-GAAP measures offer important analytical tools to help investors understand its operating results, and to facilitate comparability with the results of companies that provide similar measures. Non-GAAP measures have limitations as analytical tools and are not meant to be considered in isolation or as a substitute for GAAP financial information. For example, stock-based compensation is an important component of the company’s compensation mix and will continue to result in significant expenses in the company’s GAAP results for the foreseeable future but is not reflected in the non-GAAP measures. Also, other companies, including companies in Power Integrations’ industry, may calculate non-GAAP measures differently, limiting their usefulness as comparative measures. Reconciliations of non-GAAP measures to GAAP measures are attached to this press release.

Note Regarding Forward-Looking Statements

The above statements regarding the company’s forecast for its first-quarter financial performance and expectation of growth across a wide range of applications in 2025 are forward-looking statements reflecting management's current expectations and beliefs. These statements are based on current information that is, by its nature, subject to rapid and even abrupt change. Due to risks and uncertainties associated with the company's business, actual results could differ materially from those projected or implied by these statements. These risks and uncertainties include, but are not limited to: the company’s ability to supply products and its ability to conduct other aspects of its business such as competing for new design wins; changes in global economic and geopolitical conditions, including such factors as inflation, armed conflicts and trade negotiations, which may impact the level of demand for the company’s products; potential changes and shifts in customer demand away from end products that utilize the company's integrated circuits to end products that do not incorporate the company's products; the effects of competition, which may cause the company’s revenues to decrease or cause the company to decrease its selling prices for its products; unforeseen costs and expenses; and unfavorable fluctuations in component costs or operating expenses resulting from changes in commodity prices and/or exchange rates. In addition, new product introductions and design wins are subject to the risks and uncertainties that typically accompany development and delivery of complex technologies to the marketplace, including product development delays and defects and market acceptance of the new products. These and other risk factors that may cause actual results to differ are more fully explained under the caption “Risk Factors” in the company's most recent Annual Report on Form 10-K, filed with the Securities and Exchange Commission on February 12, 2024. The company is under no obligation (and expressly disclaims any obligation) to update or alter its forward-looking statements, whether because of new information, future events or otherwise, except as otherwise required by law.

Power Integrations, PowiGaN and the Power Integrations logo are trademarks or registered trademarks of Power Integrations, Inc. All other trademarks are property of their respective owners.

POWER INTEGRATIONS, INC.

CONSOLIDATED STATEMENTS OF INCOME

(in thousands, except per-share amounts)


	Three Months Ended								Twelve Months Ended
	December 31, 2024			September 30, 2024			December 31, 2023		December 31, 2024		December 31, 2023
NET REVENUES	$	105,250		$	115,837		$	89,507	$	418,973	$	444,538

COST OF REVENUES		47,983			52,666			43,299		194,222		215,582

GROSS PROFIT		57,267			63,171			46,208		224,751		228,956

OPERATING EXPENSES:
Research and development		25,689			25,829			23,505		100,790		96,067
Sales and marketing		16,931			17,119			15,472		67,825		64,598
General and administrative		10,728			8,641			8,282		38,207		33,232
Total operating expenses		53,348			51,589			47,259		206,822		193,897

INCOME (LOSS) FROM OPERATIONS		3,919			11,582			(1,051)		17,929		35,059

OTHER INCOME		3,384			2,750			3,282		12,825		10,848

INCOME BEFORE INCOME TAXES		7,303			14,332			2,231		30,754		45,907

PROVISION (BENEFIT) FOR INCOME TAXES		(1,837)			41			(12,040)		(1,480)		(9,828)

NET INCOME	$	9,140		$	14,291		$	14,271	$	32,234	$	55,735

EARNINGS PER SHARE:
Basic	$	0.16		$	0.25		$	0.25	$	0.57	$	0.97
Diluted	$	0.16		$	0.25		$	0.25	$	0.56	$	0.97

SHARES USED IN PER-SHARE CALCULATION:
Basic		56,848			56,817			56,937		56,820		57,195
Diluted		57,097			57,004			57,272		57,130		57,622


SUPPLEMENTAL INFORMATION:	Three Months Ended								Twelve Months Ended
	December 31, 2024			September 30, 2024			December 31, 2023		December 31, 2024		December 31, 2023
Stock-based compensation expenses included in:
Cost of revenues	$	541		$	496		$	499	$	2,090	$	1,692
Research and development		3,280			2,997			2,947		12,587		10,939
Sales and marketing		2,074			1,876			1,827		8,064		6,888
General and administrative		3,394			2,969			2,230		12,335		9,009
Total stock-based compensation expense	$	9,289		$	8,338		$	7,503	$	35,076	$	28,528

Cost of revenues includes:
Amortization of acquisition-related intangible assets	$	147		$	147		$	482	$	1,034	$	1,928


	Three Months Ended								Twelve Months Ended
	December 31, 2024		****	September 30, 2024		****	December 31, 2023		December 31, 2024		December 31, 2023
REVENUE MIX BY END MARKET
Communications		13%			12%			27%		12%		29%
Computer		15%			14%			9%		14%		12%
Consumer		37%			38%			29%		39%		27%
Industrial		35%			36%			35%		35%		32%


RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP RESULTS
(in thousands, except per-share amounts)

	Three Months Ended						Twelve Months Ended
	December 31, 2024		September 30, 2024		December 31, 2023		December 31, 2024		December 31, 2023
RECONCILIATION OF GROSS PROFIT
GAAP gross profit	$	57,267	$	63,171	$	46,208	$	224,751	$	228,956
GAAP gross margin		54.4%		54.5%		51.6%		53.6%		51.5%

Stock-based compensation included in cost of revenues		541		496		499		2,090		1,692
Amortization of acquisition-related intangible assets		147		147		482		1,034		1,928

Non-GAAP gross profit	$	57,955	$	63,814	$	47,189	$	227,875	$	232,576
Non-GAAP gross margin		55.1%		55.1%		52.7%		54.4%		52.3%


	Three Months Ended						Twelve Months Ended
	December 31, 2024		September 30, 2024		December 31, 2023		December 31, 2024		December 31, 2023
RECONCILIATION OF OPERATING EXPENSES
GAAP operating expenses	$	53,348	$	51,589	$	47,259	$	206,822	$	193,897

Less: Stock-based compensation expense included in operating expenses
Research and development		3,280		2,997		2,947		12,587		10,939
Sales and marketing		2,074		1,876		1,827		8,064		6,888
General and administrative		3,394		2,969		2,230		12,335		9,009
Total		8,748		7,842		7,004		32,986		26,836

Non-GAAP operating expenses	$	44,600	$	43,747	$	40,255	$	173,836	$	167,061


	Three Months Ended						Twelve Months Ended
	December 31, 2024		September 30, 2024		December 31, 2023		December 31, 2024		December 31, 2023
RECONCILIATION OF INCOME FROM OPERATIONS
GAAP income (loss) from operations	$	3,919	$	11,582	$	(1,051)	$	17,929	$	35,059
GAAP operating margin		3.7%		10.0%		–1.2%		4.3%		7.9%

Add: Total stock-based compensation		9,289		8,338		7,503		35,076		28,528
Amortization of acquisition-related intangible assets		147		147		482		1,034		1,928

Non-GAAP income from operations	$	13,355	$	20,067	$	6,934	$	54,039	$	65,515
Non-GAAP operating margin		12.7%		17.3%		7.7%		12.9%		14.7%


	Three Months Ended						Twelve Months Ended
	December 31, 2024		September 30, 2024		December 31, 2023		December 31, 2024		December 31, 2023
RECONCILIATION OF PROVISION FOR INCOME TAXES
GAAP provision (benefit) for income taxes	$	(1,837)	$	41	$	(12,040)	$	(1,480)	$	(9,828)
GAAP effective tax rate		–25.2%		0.3%		–539.7%		–4.8%		–21.4%

Tax effect of adjustments to GAAP results		(1,366)		(160)		(9,556)		(2,153)		(11,653)

Non-GAAP provision (benefit) for income taxes	$	(471)	$	201	$	(2,484)	$	673	$	1,825
Non-GAAP effective tax rate		–2.8%		0.9%		–24.3%		1.0%		2.4%


	Three Months Ended						Twelve Months Ended
	December 31, 2024		September 30, 2024		December 31, 2023		December 31, 2024		December 31, 2023
RECONCILIATION OF NET INCOME PER SHARE (DILUTED)
GAAP net income	$	9,140	$	14,291	$	14,271	$	32,234	$	55,735

Adjustments to GAAP net income
Stock-based compensation		9,289		8,338		7,503		35,076		28,528
Amortization of acquisition-related intangible assets		147		147		482		1,034		1,928
Tax effect of items excluded from non-GAAP results		(1,366)		(160)		(9,556)		(2,153)		(11,653)

Non-GAAP net income	$	17,210	$	22,616	$	12,700	$	66,191	$	74,538


Average shares outstanding for calculation of non-GAAP net income per share (diluted)		57,097		57,004		57,272		57,130		57,622

Non-GAAP net income per share (diluted)	$	0.30	$	0.40	$	0.22	$	1.16	$	1.29

GAAP net income per share (diluted)	$	0.16	$	0.25	$	0.25	$	0.56	$	0.97


CONSOLIDATED BALANCE SHEETS
(in thousands)

	December 31, 2024		September 30, 2024		December 31, 2023
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	50,972	$	58,469	$	63,929
Short-term marketable securities		249,023		245,282		247,640
Accounts receivable, net		27,172		16,634		14,674
Inventories		165,612		167,680		163,164
Prepaid expenses and other current assets		21,260		19,821		22,193
Total current assets		514,039		507,886		511,600

PROPERTY AND EQUIPMENT, net		149,562		153,313		164,213
INTANGIBLE ASSETS, net		8,075		8,283		4,424
GOODWILL		95,271		95,271		91,849
DEFERRED TAX ASSETS		36,485		36,393		28,325
OTHER ASSETS		25,394		23,845		19,457
Total assets	$	828,826	$	824,991	$	819,868

LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable	$	29,789	$	27,091	$	26,390
Accrued payroll and related expenses		13,987		13,337		13,551
Taxes payable		961		1,063		1,016
Other accrued liabilities		10,580		9,267		7,910
Total current liabilities		55,317		50,758		48,867

LONG-TERM LIABILITIES:
Income taxes payable		3,871		6,351		6,244
Other liabilities		19,866		18,669		12,516
Total liabilities		79,054		75,778		67,627

STOCKHOLDERS' EQUITY:
Common stock		22		22		23
Additional paid-in capital		18,734		11,347		—
Accumulated other comprehensive income (loss)		(3,023)		1,008		(1,462)
Retained earnings		734,039		736,836		753,680
Total stockholders' equity		749,772		749,213		752,241
Total liabilities and stockholders' equity	$	828,826	$	824,991	$	819,868

POWER INTEGRATIONS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)

	Three Months Ended						Twelve Months Ended
	December 31, 2024		September 30, 2024		December 31, 2023		December 31, 2024		December 31, 2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	9,140	$	14,291	$	14,271	$	32,234	$	55,735
Adjustments to reconcile net income to cash provided by operating activities
Depreciation		7,743		8,454		8,887		33,303		35,203
Amortization of intangible assets		208		208		543		1,279		2,173
Loss on disposal of property and equipment		24		208		14		240		100
Stock-based compensation expense		9,289		8,338		7,503		35,076		28,528
Accretion of discount on marketable securities		(385)		(343)		(497)		(1,637)		(351)
Deferred income taxes		336		(5,206)		705		(8,352)		(9,247)
Increase (decrease) in accounts receivable allowance for credit losses		214		(785)		—		(245)		(454)
Change in operating assets and liabilities:
Accounts receivable		(10,752)		523		13,865		(12,253)		6,616
Inventories		2,068		2,204		(12,918)		(2,448)		(27,744)
Prepaid expenses and other assets		(1,613)		3,542		(346)		4,001		(1,183)
Accounts payable		1,540		2,031		(2,553)		3,454		(5,435)
Taxes payable and other accrued liabilities		(3,086)		(546)		(13,207)		(3,471)		(18,182)
Net cash provided by operating activities		14,726		32,919		16,267		81,181		65,759

CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment		(3,045)		(5,731)		(6,143)		(17,286)		(20,884)
Purchases of marketable securities		(8,135)		(19,751)		(18,196)		(105,716)		(191,211)
Proceeds from sales and maturities of marketable securities		2,796		18,414		36,045		106,602		197,942
Acquisition		—		(9,520)		—		(9,520)		—
Net cash provided by (used) in investing activities		(8,384)		(16,588)		11,706		(25,920)		(14,153)

CASH FLOWS FROM FINANCING ACTIVITIES:
Net proceeds from issuance of common stock		—		3,009		—		5,700		6,237
Repurchase of common stock		(1,902)		—		(47,444)		(27,881)		(55,278)
Payments of dividends to stockholders		(11,937)		(11,364)		(11,343)		(46,037)		(44,008)
Net cash used in financing activities		(13,839)		(8,355)		(58,787)		(68,218)		(93,049)

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		(7,497)		7,976		(30,814)		(12,957)		(41,443)

CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD		58,469		50,493		94,743		63,929		105,372

CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	50,972	$	58,469	$	63,929	$	50,972	$	63,929

Contacts

Joe Shiffler Power Integrations, Inc. (408) 414-8528 joe@power.com