Financial Data and Key Metrics Changes - In Q1 2025, Monolithic Power Systems (MPS) achieved record quarterly revenue of $637.6 million, which is slightly higher than Q4 2024 and 39.2% higher than Q1 2024 [4][5] - The company reported strong cash flows and a diversified market strategy contributing to its performance [8] Business Line Data and Key Metrics Changes - The Storage and Computing segment revenue increased by 38% quarter over quarter due to strong demand for memory and notebook solutions [5] - Automotive revenue increased by 13% from Q4 2024, marking the third consecutive quarter of sequential double-digit growth [5] Market Data and Key Metrics Changes - MPS continues to focus on innovation and expanding into new markets, which is expected to capture future growth opportunities [6] - The company is diversifying its end market applications and global supply chain to maintain supply stability and adapt to market changes [6] Company Strategy and Development Direction - MPS is transforming from a chip-only semiconductor supplier to a full-service silicon-based solutions provider [6] - The company is investing in new technology and expanding into new markets, including robotics, automotive, data centers, building automation, medical, and audio [5] Management's Comments on Operating Environment and Future Outlook - Management expressed increased confidence in enterprise data business for the second half of the year, with expectations for design wins to ramp up [20][25] - The company is not forecasting specific numbers for the second half but is optimistic about overall performance [24][25] Other Important Information - MPS is maintaining a conservative approach to gross margin guidance, anticipating a slight decrease in Q2 due to a mix of factors [27][28] - The company is focused on maintaining its margin model and not competing on price [120] Q&A Session Summary Question: Insights on enterprise data and design wins - Management indicated that while enterprise data came in line with expectations, they expect improvements in the second half due to design wins [20][21] Question: Impact of tariffs on guidance - Management confirmed that there are no direct or indirect impacts from tariffs influencing Q2 guidance [95] Question: Growth opportunities in new products - Management highlighted the potential for significant revenue from new products, particularly in building automation and ultrasound areas [97][100] Question: Margin outlook for new products - Management stated that there is no structural change in margin profiles due to new product ramps, maintaining focus on higher-margin products [119][120] Question: Demand signals in downtrodden markets - Management noted that it is difficult to separate new product revenue ramps from overall market demand but expressed confidence in the second half of the year [122][123]

Revenue Performance - Q1 2025 revenue reached $637.6 million, up 2.6% quarter-over-quarter and 39.2% year-over-year[11] - Automotive revenue increased 12.9% from Q4 2024 to $144.9 million, representing 22.7% of total revenue, and up 66.4% year-over-year[14] - Storage and Computing revenue was $188.5 million, up 38.1% quarter-over-quarter and 77.7% year-over-year, accounting for 29.6% of total revenue[12] - The company forecasts Q2 2025 revenue between $640 million and $660 million, with a GAAP gross margin of 54.9% to 55.5%[28] Income and Profitability - GAAP net income for Q1 2025 was $133.8 million, a significant decrease of 90.8% from Q4 2024, while non-GAAP net income was $193.8 million, down 2.3% from the previous quarter[22] - Net income for Q1 2025 was $133.791 million, up from $92.541 million in Q1 2024, representing a 44.5% increase[33] - Non-GAAP net income for Q1 2025 was $193.813 million, compared to $137.492 million in Q1 2024, reflecting a 40.9% growth[33] - Gross profit for Q1 2025 reached $353.230 million, with a gross margin of 55.4%, slightly up from 55.1% in Q1 2024[35] - Non-GAAP gross profit for Q1 2025 was $355.060 million, maintaining a non-GAAP gross margin of 55.7%[35] - The company reported a total operating income of $168.759 million for Q1 2025, up from $95.487 million in Q1 2024[38] - Non-GAAP operating income for Q1 2025 was $221.534 million, compared to $151.613 million in Q1 2024, marking a 46.1% increase[38] Expenses and Cash Flow - Total operating expenses for Q1 2025 were $184.471 million, an increase from $156.954 million in Q1 2024[36] - Non-GAAP operating expenses for Q1 2025 were $133.526 million, compared to $103.426 million in Q1 2024, indicating a 29.1% rise[36] - Total stock-based compensation and related expenses for Q1 2025 were $53.8 million, down from $56.3 million in Q4 2024[21] - Operating cash flow for Q1 2025 was $256.4 million, an increase from $167.7 million in Q4 2024[24] Margins and Projections - The gross margin for Q1 2025 was 55.4% under GAAP and 55.7% under non-GAAP, with the latter down 0.1 percentage points from Q4 2024[19] - Projected gross margin for Q2 2025 is expected to be between 54.9% and 55.5%[43] - Non-GAAP operating expenses for Q2 2025 are projected to range from $132.600 million to $136.600 million[45] Strategic Initiatives - The company continues to invest in new technology and expand into new markets to capture future growth opportunities[9] - Days of sales outstanding increased to 31 days in Q1 2025, up from 25 days in Q4 2024[25]

Financial Performance - Monolithic Power Systems, Inc. (MPS) reported revenue of $637.6 million for Q1 2025, a 2.6% increase from $621.7 million in Q4 2024 and a 39.2% increase from $457.9 million in Q1 2024 [1][2] - GAAP gross margin was 55.4% for Q1 2025, compared to 55.1% for Q1 2024 [1] - Non-GAAP gross margin was 55.7% for Q1 2025, unchanged from Q1 2024 [1] - GAAP operating income was $168.8 million for Q1 2025, up from $95.5 million in Q1 2024 [1] - Non-GAAP operating income was $221.5 million for Q1 2025, compared to $151.6 million in Q1 2024 [1] - GAAP net income was $133.8 million, or $2.79 per diluted share, for Q1 2025, compared to $92.5 million, or $1.89 per diluted share, for Q1 2024 [1] Revenue by End Market - Revenue from Storage and Computing was $188.5 million in Q1 2025, up from $106.1 million in Q1 2024 [2] - Automotive revenue increased to $144.9 million in Q1 2025 from $87.1 million in Q1 2024 [2] - Enterprise Data revenue decreased to $132.9 million in Q1 2025 from $149.7 million in Q1 2024 [2] - Communications revenue rose to $71.7 million in Q1 2025 from $46.6 million in Q1 2024 [2] - Consumer revenue increased to $56.9 million in Q1 2025 from $38.1 million in Q1 2024 [2] - Industrial revenue grew to $42.6 million in Q1 2025 from $30.2 million in Q1 2024 [2] Business Outlook - MPS projects revenue for Q2 2025 to be in the range of $640.0 million to $660.0 million [4] - GAAP gross margin is expected to be between 54.9% and 55.5% for Q2 2025 [4] - Non-GAAP gross margin is projected to be between 55.2% and 55.8% for Q2 2025 [4] - GAAP operating expenses are anticipated to be between $189.0 million and $195.0 million for Q2 2025 [4] - Non-GAAP operating expenses are expected to be between $132.6 million and $136.6 million for Q2 2025 [4]

Core Insights - MPS reported record quarterly revenue of $637.6 million for Q1 2025, reflecting a 39.2% increase year-over-year and a 2.6% increase quarter-over-quarter [4][7][19] - The company continues to focus on innovation and expanding into new markets, aiming to capture future growth opportunities [5][6] Financial Performance - Q1 2025 GAAP net income was $133.8 million, a significant decrease of 90.8% from the previous quarter, while non-GAAP net income was $193.8 million, down 2.3% from Q4 2024 [19][21] - Diluted EPS for Q1 2025 was $2.79 (GAAP) and $4.04 (non-GAAP), with the latter showing a 43.8% increase year-over-year [19][30] Revenue Breakdown by End Market - Storage & Computing revenue reached $188.5 million, up 77.7% year-over-year and 38.1% quarter-over-quarter, representing 29.6% of total revenue [3][8] - Automotive revenue was $144.9 million, reflecting a 66.4% year-over-year increase and a 12.9% increase from Q4 2024 [3][9] - Communications revenue increased to $71.8 million, up 53.7% year-over-year [3][10] - Industrial revenue was $42.6 million, up 41.1% year-over-year [3][11] - Consumer revenue decreased slightly to $56.9 million, but still showed a 49.3% increase year-over-year [3][12] - Enterprise Data revenue fell to $132.9 million, down 11.2% year-over-year [3][13] Operating Metrics - GAAP gross margin for Q1 2025 was 55.4%, unchanged from Q4 2024, while non-GAAP gross margin was 55.7%, down 0.1 percentage points [14][16] - Operating expenses increased to $184.5 million (GAAP) and $133.5 million (non-GAAP), reflecting a 1.9% and 5.9% increase quarter-over-quarter, respectively [17][21] Cash Flow and Balance Sheet - Cash, cash equivalents, and short-term investments totaled $1,026.7 million at the end of Q1 2025, up from $862.9 million at the end of Q4 2024 [21][24] - Operating cash flow for Q1 2025 was $256.4 million, compared to $167.7 million in Q4 2024 [21][24] Q2 2025 Outlook - MPS forecasts revenue in the range of $640 million to $660 million for Q2 2025, with GAAP gross margin expected between 54.9% and 55.5% [26][25]

Core Insights - The article emphasizes the importance of investing at the intersection of value and growth, particularly focusing on small-cap companies that can serve as long-term compounders or present special situations [1]. Group 1 - The investment strategy is characterized by a qualitative approach, seeking to identify companies with strong growth potential while also being undervalued [1]. - The analyst expresses a personal interest in both long-term investments and special situations, indicating a diverse investment philosophy [1].

The upcoming report from Monolithic Power (MPWR) is expected to reveal quarterly earnings of $4 per share, indicating an increase of 42.4% compared to the year-ago period. Analysts forecast revenues of $632.18 million, representing an increase of 38.1% year over year.Over the last 30 days, there has been no revision in the consensus EPS estimate for the quarter. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.Before a company reve ...

Core Viewpoint - Monolithic Power Systems, Inc. (MPWR) is expected to report higher revenues for the first quarter of 2025, driven by strong performance across various verticals and management's efforts to diversify its product portfolio [1][3]. Factors at Play - The company is focusing on e-commerce as a growth driver, developing a platform that utilizes AI to enhance customer experience and predict product performance [2]. - Monolithic Power is well-positioned for expansion, particularly in automotive applications, due to rising demand for analog integrated circuits and sensors [3]. - The company is capturing a growing share of the automotive market, supported by strong partnerships with leading auto suppliers [4]. - Product innovation and operational efficiency are contributing to design wins across multiple verticals, positively impacting revenue [5]. Overall Expectations - The Zacks Consensus Estimate for total revenues in the upcoming quarter is $632.18 million, reflecting an increase from $457.89 million in the same quarter last year [9]. - Revenue estimates for specific verticals include: - Enterprise Data: $131.33 million, down from $194.87 million year-over-year [6]. - Communication: $73.27 million, up from $63.81 million year-over-year [6]. - Consumer: $58.92 million, up from $57.31 million year-over-year [7]. - Industrial: $42.16 million, up from $40.83 million year-over-year [7]. - Storage and Computing: $177.57 million, up from $136.51 million year-over-year [8]. - Automotive: $148.34 million, up from $128.34 million year-over-year [8]. - The consensus estimate for adjusted earnings per share is $4.00, an increase from $2.81 in the prior-year quarter [9].

Wall Street expects a year-over-year increase in earnings on higher revenues when Monolithic Power (MPWR) reports results for the quarter ended March 2025. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on May 1, 2025, might help the stock move higher if these key numbers are better than exp ...

Core Viewpoint - Monolithic Power Systems, Inc. (MPS) is set to report its financial results for the first quarter ended March 31, 2025, on May 1, 2025, after market close [1][2]. Financial Reporting - MPS will provide written commentary on its operational results alongside the earnings announcement [2]. - A question-and-answer conference call will be hosted by MPS at 2:00 p.m. PT / 5:00 p.m. ET, accessible via a Zoom webcast [3]. Company Overview - MPS is a fabless global company specializing in high-performance, semiconductor-based power electronics solutions, founded in 1997 by CEO Michael Hsing [4]. - The company's mission focuses on reducing energy and material consumption to enhance quality of life and promote sustainability [4]. - MPS possesses strengths in system-level knowledge, semiconductor design expertise, and proprietary technologies, enabling the delivery of reliable and energy-efficient solutions [4].

Core Viewpoint - Bragar Eagel & Squire, P.C. is investigating potential claims against Monolithic Power Systems, Inc. due to a class action lawsuit alleging breaches of fiduciary duties by the board of directors [1] Company Overview - Monolithic Power Systems is a provider of power management components used in electronic systems, with Nvidia Corporation as its largest customer [2] Class Action Lawsuit Details - The class action lawsuit claims that Monolithic Power Systems made false or misleading statements regarding the performance and quality control of its voltage regulator modules and power management integrated circuits [3] - Allegations include that these issues negatively impacted Nvidia's products, that Monolithic Power Systems failed to address known performance issues, and that its relationship with Nvidia was irreparably damaged [3] - The lawsuit asserts that Monolithic Power Systems was exposed to significant undisclosed risks affecting its business, financial standing, and reputation [3] Financial Performance - On October 30, 2024, Monolithic Power Systems reported a decline in quarterly revenue for its Enterprise Data segment, falling to $184 million from $187 million, missing estimates by nearly 13% [4] - Following this announcement, the stock price dropped over 17% [4] Customer Relationship Issues - A report from Edgewater Research on November 11, 2024, indicated that Nvidia canceled half of its orders with Monolithic Power Systems due to performance issues, leading Nvidia to seek alternative suppliers [5] - This news resulted in a nearly 15% decline in Monolithic Power Systems' stock price [5]