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MPS(MPWR) - 2024 Q2 - Quarterly Report
2024-08-02 20:01
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]
MPS(MPWR) - 2024 Q2 - Earnings Call Transcript
2024-08-01 23:18
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) Beats Q2 Earnings and Revenue Estimates
ZACKS· 2024-08-01 22:11
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 ...
Monolithic Power Systems to Report Second Quarter Results on August 1, 2024
Newsfilter· 2024-08-01 20:01
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) | --- | --- | --- | --- | --- | --- | --- | |------------------|---------------------|---------------------|-------|---------------------|---------------------|------------ ...
Monolithic Power Systems Announces Results for the Second Quarter Ended June 30, 2024
GlobeNewswire News Room· 2024-08-01 20:01
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 ...
Countdown to Monolithic (MPWR) Q2 Earnings: Wall Street Forecasts for Key Metrics
ZACKS· 2024-07-29 14:21
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 ...
Monolithic Power Systems to Report Second Quarter 2024 Results on August 1, 2024
GlobeNewswire News Room· 2024-07-15 20:01
KIRKLAND, Wash., July 15, 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 plans to report its financial results for the second quarter ended June 30, 2024. A replay of the event will be available for one year under the Investor Relations website at www.monolithicpower.com two hours after the live event has concluded. ### MPS will host a question-and-answer c ...
Monolithic Power Systems: Still In Bed With AI, Still A Buy
Seeking Alpha· 2024-07-12 18:36
Seeking Alpha Does our thesis hold true for next-gen AI data centers? Management got asked pretty directly about just this on their 1Q24 earnings call; the question was about rumors that next-gen AI data centers (that use liquid cooling and other methods for lower power consumption) would have lower power management content and potentially negatively impact MPWR's product use cases in the AI server power management market. To this, the President of MPWR, Michael Hsing, and Tony Balow answered the following: ...
Here's Why Monolithic Power (MPWR) is a Strong Momentum Stock
ZACKS· 2024-06-25 14:50
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both. Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor. Zacks Premium also includes the Zacks Style Scores. What are the Zacks Style Scores? The Zacks Styl ...
Monolithic Power Systems Announces Second Quarter 2024 Dividend
Newsfilter· 2024-06-14 00:14
KIRKLAND, Wash., June 13, 2024 (GLOBE NEWSWIRE) -- Monolithic Power Systems, Inc. (NASDAQ:MPWR), a global company that provides high-performance, semiconductor-based power electronics solutions, announced today its second quarter dividend of $1.25 per common share to all stockholders of record as of the close of business on June 28, 2024. The dividend will be paid on July 15, 2024. Safe Harbor Statement This news release includes "forward-looking statements" intended to qualify for the safe harbor from liab ...