Investment Rating - The report does not explicitly mention an investment rating for Monolithic Power Systems (MPWR) [1][2][3] Core Views - Monolithic Power Systems (MPWR) reported strong Q2 2024 results with revenue of $507 million, up 15% YoY and 10.8% QoQ, exceeding guidance and market expectations [1][4] - The growth was driven by increased demand for AI power solutions, improved order trends across multiple end markets, and contributions from design-wins secured in previous years [1][4] - Non-GAAP gross margin was 55.7%, flat QoQ but down 0.8pct YoY, while Non-GAAP net income reached $155 million, up 12.8% YoY and QoQ [1][4] - The company's transformation from a single-chip supplier to a comprehensive solutions provider is showing significant results [1][4] Revenue Breakdown by End Market - **Storage & Computing**: Revenue of $115 million, up 8.3% QoQ but down 7.7% YoY, driven by increased sales of storage solutions [6] - **Enterprise Data**: Revenue of $187 million, up 25.1% QoQ and 290% YoY, driven by AI server solutions [7] - **Automotive**: Revenue of $87 million, flat QoQ but down 16.5% YoY [9] - **Industrial**: Revenue of $32 million, up 7% QoQ but down 35% YoY, driven by security solutions [10] - **Communications**: Revenue of $44 million, down 6.6% QoQ and 11.6% YoY, due to declining network business [11] - **Consumer**: Revenue of $42 million, up 10.8% QoQ but down 35.3% YoY, driven by TV solutions [12] Inventory and Guidance - Inventory turnover days decreased to 171 days in Q2 2024, down 4 days QoQ and 30 days YoY, with inventory value at $427 million, up $31 million QoQ [5] - Q3 2024 revenue guidance is $590-610 million, up 18.3% QoQ and 26.3% YoY, with Non-GAAP gross margin expected to be 55.5%-56.1% [14] - Storage & Computing and Communications markets are expected to be key growth drivers in Q3, while Enterprise Data growth is expected to slow slightly [14] Transformation and Future Growth - The company is transitioning from a chip supplier to a comprehensive solutions provider, with solutions revenue nearing $200 million, accounting for 20-25% of total revenue [20] - The company is focusing on vertical power delivery, with significant growth in this area, now contributing around 20% of total revenue [21][25] - The company is also developing GaN and SiC technologies for data center power solutions, with products in the evaluation phase [26] Market Opportunities - The company sees significant opportunities in AI-related markets, as well as in storage, optics, and networking, driven by AI's broader impact [25] - The automotive market, particularly in ADAS and EVs, presents long-term growth opportunities, despite short-term uncertainties [19][28] - The industrial market, including applications like RVs and mobile robots, is expected to see emerging opportunities in the next four quarters [28][29]

Revenue Performance - Revenue for the three months ended June 30, 2024, was $507.4 million, an increase of $66.3 million, or 15.0%, from $441.1 million for the same period in 2023[114] - Revenue for the six months ended June 30, 2024, was $965.3 million, an increase of $73.1 million, or 8.2%, from $892.2 million for the same period in 2023[117] - Revenue from the enterprise data market increased $139.2 million, or 290.2%, primarily due to higher sales of power management solutions for AI applications[116] - Revenue from the enterprise data market increased $241.8 million, or 254.1%, primarily due to higher sales of power management solutions for AI applications[117] - Revenue from the storage and computing market decreased $9.6 million, or 7.7%, primarily due to lower sales of storage and graphic card applications[116] - Automotive revenue decreased $17.2 million, or 16.5%, primarily due to lower sales of applications supporting body electronics, digital cockpits, and infotainment[116] - Revenue from the communications market decreased $5.7 million, or 11.6%, driven by lower demand for infrastructure-related products[116] - Consumer market revenue decreased $23.0 million, or 35.2%, primarily due to lower sales of products for gaming and home appliances[116] - Industrial market revenue decreased $17.5 million, or 35.1%, mainly driven by lower sales of products related to industrial meter, power source, and security applications[116] Profitability Metrics - Gross profit margin for the three months ended June 30, 2024, was 44.7%, compared to 43.9% for the same period in 2023[114] - Operating income for the three months ended June 30, 2024, was $116.5 million, representing 23.0% of revenue, compared to $112.3 million, or 25.5% of revenue, for the same period in 2023[114] - Gross margin for the six months ended June 30, 2024, was 55.2%, down from 56.8% for the same period in 2023, primarily due to increased inventory write-downs and warranty expenses[122] Expenses - R&D expenses for the six months ended June 30, 2024, were $153.9 million, or 15.9% of revenue, compared to $127.4 million, or 14.3% of revenue for the same period in 2023[125] - SG&A expenses for the six months ended June 30, 2024, were $167.1 million, or 17.3% of revenue, compared to $142.5 million, or 16.0% of revenue for the same period in 2023[129] Cash and Assets - Cash and cash equivalents as of June 30, 2024, were $550.5 million, an increase from $527.8 million as of December 31, 2023[134] - Net cash provided by operating activities for the six months ended June 30, 2024, was $389.0 million, an increase of $80.0 million compared to the same period in 2023[135] - Total current assets as of June 30, 2024, were $1,997.4 million, compared to $1,819.5 million as of December 31, 2023[134] Tax and Liabilities - The income tax expense for the six months ended June 30, 2024, was $36.2 million, or 15.8% of pre-tax income, consistent with the effective tax rate from the same period in 2023[131] - The transition tax liability as of June 30, 2024, totaled $6.2 million, all classified as short-term[140] - Operating lease obligations as of June 30, 2024, amounted to $15.5 million, with $2.4 million classified as short-term[141] - Other long-term obligations, including deferred compensation plan liabilities and accrued dividend equivalents, totaled $83.6 million as of June 30, 2024[143] Shareholder Returns - The company plans to continue its stock repurchase program and pay cash dividends, indicating a commitment to returning value to shareholders[105] - The company has a stock repurchase program authorized for up to $640.0 million through October 29, 2026, with $627.6 million remaining available for future repurchases as of June 30, 2024[141] - Accrued dividends as of June 30, 2024, totaled $60.9 million, with future declarations at the discretion of the Board of Directors[142] Market Risk - There were no material changes in market risk assessment during the three and six months ended June 30, 2024, compared to December 31, 2023[144]

Monolithic Power Systems, Inc. (MPWR) reported strong second-quarter 2024 results, wherein the top and bottom lines beat the respective Zacks Consensus Estimate. Despite declining trends in several verticals, the Kirkland, WA-based company witnessed modest revenue growth year over year, backed by solid momentum in the Enterprise Data vertical. Net Income Net income, on a GAAP basis, was $100.4 million or $2.05 per share compared with $99.5 million or $2.04 per share in the prior-year quarter. Non-GAAP net i ...

Financial Data and Key Metrics Changes - Monolithic Power Systems reported a record revenue of $507.4 million for Q2 2024, exceeding the high end of guidance, driven by increased demand for AI power solutions and improving order trends across several end markets [3][4][5] Business Line Data and Key Metrics Changes - The enterprise data segment continues to be a significant growth driver, with expectations for continued growth in communications, storage, and computing [5][21] - The company is transitioning from being solely a chip supplier to a full solutions provider, with 20% to 25% of total revenue now coming from solution sales, which are growing faster than the overall company growth rate [13][14][15] Market Data and Key Metrics Changes - The automotive market outlook remains uncertain, with expectations for flat growth in the near term, but long-term positioning is improving due to additional design wins [10][21] - The company is seeing opportunities in the communications sector, particularly with 5G, and anticipates growth in industrial markets as well [36][37] Company Strategy and Development Direction - The company is focused on expanding and diversifying its global supply chain to ensure supply stability and capture future growth [3] - There is a strong emphasis on solution selling, with a significant portion of revenue now derived from integrated solutions rather than just semiconductor sales [12][13][14] Management's Comments on Operating Environment and Future Outlook - Management noted that while the enterprise data segment has shown significant growth, the rate of growth is expected to slow down in the upcoming quarters [21] - The company is optimistic about future opportunities in AI and other segments, indicating a broad market potential beyond just AI solutions [32] Other Important Information - The company has no licensing or contractual arrangements with Huawei, and any business conducted with them is on a purchase order basis [39][40] Q&A Session Summary Question: Guidance for September by end market - Management indicated improved bookings trends across various end markets, with continued growth expected in enterprise data, communications, storage, and computing [5] Question: Recovery in non-enterprise data segments - Management acknowledged design wins in non-enterprise segments and noted that new designs are emerging, particularly in communications [6] Question: Competitive landscape in auto and data center markets - Management confirmed that they are beginning to ship products for higher power applications in both auto and data center markets, with expectations for significant growth in these areas [8][9] Question: Solution selling and growth opportunities - Management elaborated on the transition to solution selling, which now constitutes a significant portion of revenue, and highlighted the growth potential in various markets [12][13] Question: Vertical power delivery efforts - Management discussed their leading position in vertical power delivery and the ongoing development of silicon carbide solutions for data centers [34][35] Question: Impact of Huawei licensing - Management clarified that they do not have any licensing arrangements with Huawei, and thus there is no exposure to licensing issues [39][40]

Monolithic Power (MPWR) reported $507.43 million in revenue for the quarter ended June 2024, representing a year-over-year increase of 15%. EPS of $3.17 for the same period compares to $2.82 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $489.91 million, representing a surprise of +3.58%. The company delivered an EPS surprise of +3.26%, with the consensus EPS estimate being $3.07. While investors scrutinize revenue and earnings changes year-over-year and how they compare with W ...

Monolithic Power (MPWR) came out with quarterly earnings of $3.17 per share, beating the Zacks Consensus Estimate of $3.07 per share. This compares to earnings of $2.82 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 3.26%. A quarter ago, it was expected that this chipmaker would post earnings of $2.66 per share when it actually produced earnings of $2.81, delivering a surprise of 5.64%. Over the last four quarters, the compa ...

KIRKLAND, Wash., Aug. 01, 2024 (GLOBE NEWSWIRE) -- MPS will report its results after the market closes on August 1, 2024 and host a question-and-answer webinar at 2:00 p.m. PT / 5:00 p.m. ET. The live event will be held via a Zoom webcast, which can be accessed at https://mpsic.zoom.us/j/97644523160. Q2 2024 Financial Summary (Unaudited) | --- | --- | --- | --- | --- | --- | --- | |------------------|---------------------|---------------------|-------|---------------------|---------------------|------------ ...

Exhibit 99.1 PRESS RELEASE For Immediate Release Monolithic Power Systems Announces Results for the Second Quarter Ended June 30, 2024 KIRKLAND, WASHINGTON, August 1, 2024-- Monolithic Power Systems, Inc. ("MPS") (Nasdaq: MPWR), a fabless global company that provides high-performance, semiconductor-based power electronics solutions, today announced financial results for the quarter ended June 30, 2024. The financial results for the quarter ended June 30, 2024 were as follows: ● Revenue was $507.4 million fo ...

KIRKLAND, Wash., Aug. 01, 2024 (GLOBE NEWSWIRE) -- Monolithic Power Systems, Inc. ("MPS") (Nasdaq: MPWR), a fabless global company that provides high-performance, semiconductor-based power electronics solutions, today announced financial results for the quarter ended June 30, 2024. The financial results for the quarter ended June 30, 2024 were as follows: Revenue was $507.4 million for the quarter ended June 30, 2024, a 10.8% increase from $457.9 million for the quarter ended March 31, 2024 and a 15.0% incr ...

Wall Street analysts expect Monolithic Power (MPWR) to post quarterly earnings of $3.07 per share in its upcoming report, which indicates a year-over-year increase of 8.9%. Revenues are expected to be $489.91 million, up 11.1% from the year-ago quarter. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe. Before a company announces its earnings, it is esse ...