Power Integrations (POWI) came out with quarterly earnings of $0.35 per share, beating the Zacks Consensus Estimate of $0.34 per share. This compares to earnings of $0.28 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +2.94%. A quarter ago, it was expected that this maker of integrated circuits used for power conversion would post earnings of $0.28 per share when it actually produced earnings of $0.31, delivering a surprise o ...

Financial Data and Key Metrics Changes - Revenue for Q2 increased by 9% year-over-year to $116 million, with a sequential increase of 10% [23] - Non-GAAP EPS for Q2 was $0.35, with a non-GAAP gross margin of 55.8%, down 10 basis points from the prior quarter [24] - Cash generated from operations was $29 million, with $44 million returned to stockholders through buybacks and dividends [26] Business Line Data and Key Metrics Changes - Industrial segment revenue rose nearly 30% sequentially, driven by strength in metering and high power applications [23] - Consumer revenues decreased mid-single digits sequentially, primarily due to a decline in major appliances [24] - Communication revenues increased more than 20% sequentially, mainly due to seasonal trends in cell phones [23] Market Data and Key Metrics Changes - The company noted a slowdown in bookings in July, with bookings nearly 20% below the normal run rate [33] - The appliance business, which constitutes a significant portion of consumer revenue, is expected to face challenges due to inventory adjustments and tariff impacts [58][62] - The metering business is projected to grow over 20% this year, with new design wins in Japan and Europe [12] Company Strategy and Development Direction - The new CEO, Jennifer Lloyd, aims to invigorate growth and achieve a billion dollars in revenue by focusing on R&D efficiency and product development [9][39] - The company is leveraging its GaN technology to expand into higher power systems essential for EVs, AI data centers, and renewable energy applications [13][15] - The exit of TSMC from the GaN foundry business is seen as a validation of the company's strategy to control both process technology and device design [16][66] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the near-term outlook due to customer hesitance around tariffs, impacting the appliance segment [20][21] - Despite short-term headwinds, management remains optimistic about long-term growth opportunities driven by rising wealth in emerging markets and tighter efficiency standards [13] - The company expects Q3 revenue to be in the range of $118 million, reflecting continued strength in industrial and GaN products, tempered by softness in appliances [27] Other Important Information - The company repurchased over 1% of its outstanding shares during the quarter at an average price of about $46 [23] - The company is contesting a $9 million charge related to an employment litigation case, which may impact future cash flow [25] Q&A Session Summary Question: How does the company view guidance in light of market dynamics? - Management noted a slowdown in bookings in July, leading to cautious guidance for the upcoming quarter [33][34] Question: What are the strategic priorities moving forward? - The new CEO highlighted the need to improve R&D efficiency and align product development with market needs [39] Question: How are different segments performing? - Industrial is expected to remain strong, while consumer, particularly appliances, is facing challenges due to tariffs and inventory adjustments [48][58] Question: What is the outlook for automotive revenue? - The company is tracking towards meaningful revenue in automotive by 2026, with ongoing design wins across various regions [51][52] Question: How does the competitive landscape look post-TSMC's exit from GaN? - The company believes its proprietary technology positions it well against competitors, especially in the high voltage GaN space [66][67]

Financial Data and Key Metrics Changes - Revenue for Q2 2025 increased by 9% year-over-year to $116 million, with a non-GAAP EPS of $0.35 [22][24] - Non-GAAP gross margin for Q2 was 55.8%, down 10 basis points from the prior quarter due to higher input costs [23][24] - Cash flow from operations was $29 million, with $44 million returned to stockholders through buybacks and dividends [26] Business Line Data and Key Metrics Changes - Industrial segment revenue rose nearly 30% sequentially, driven by strength in metering and high power applications [22][24] - Consumer revenues decreased mid-single digits sequentially, primarily due to a decline in major appliances [22][24] - Communication revenues increased over 20% sequentially, mainly due to seasonal trends in cell phones [22][24] Market Data and Key Metrics Changes - The company noted a slowdown in bookings in July, with bookings nearly 20% below the normal run rate [32][34] - The appliance business faced challenges due to tariffs and inventory adjustments, impacting demand in the second half of the year [20][34] - The metering business is expected to grow over 20% this year, with new design wins in Japan and Europe [12][13] Company Strategy and Development Direction - The new CEO emphasized the goal of achieving a billion dollars in revenue by leveraging existing technologies and entering higher power markets [10][14] - The company is focusing on GaN technology to drive growth in data centers, automotive, and renewable energy applications [15][18] - There is a commitment to improving R&D efficiency to support double-digit growth in the long term [38] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the near-term outlook due to customer hesitance around tariffs, impacting the appliance segment [20][21] - Despite short-term headwinds, the company remains optimistic about long-term growth opportunities in emerging markets and efficiency standards [14][20] - The company expects Q3 revenue to be in the range of $118 million, reflecting continued strength in industrial and GaN products [27] Other Important Information - The company repurchased over 700,000 shares during the quarter at an average price of about $46, with $42 million remaining on the repurchase authorization [26] - The transition to a new CEO is expected to be seamless, with the former CEO remaining involved in a consulting role [6][7] Q&A Session Summary Question: How does the company view guidance in light of market dynamics? - Management noted a slowdown in bookings in July, leading to cautious guidance for the upcoming quarter [32][34] Question: What is the strategy moving forward under new leadership? - The new CEO highlighted the need for improved R&D efficiency and aligning product development with market needs [38] Question: How are different segments performing in the current environment? - Industrial segment remains strong, while consumer segment faces challenges due to appliance issues [46][48] Question: What is the impact of TSMC's exit from the GaN foundry business? - Management believes this validates their strategy and positions them well against competitors [62][65] Question: What are the expectations for channel inventory in the second half? - Channel inventory is expected to remain tight, with a cautious approach due to tariff impacts [89][90]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended June 30, 2025 or ☐ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from ______ to ______ Commission File Number 000-23441 POWER INTEGRATIONS, INC. (Exact name of registrant as specified in its charter) | Delaware ...

Exhibit 99.1 Power Integrations CEO Jennifer Lloyd commented: "Revenues increased nine percent year-over-year driven by strong growth in the industrial category. While near- term visibility is low due to macroeconomic uncertainty, our long-term growth drivers are on track. Our automotive business continues to build toward a material revenue contribution in 2026. Revenues from GaN-based products grew more than 50 percent in the first half with adoption broadening into appliance, industrial and EV application ...

Business Overview and Strategy - Power Integrations (PI) is the only high-voltage (HV) pure play semiconductor company[11, 33, 55, 68] - The company focuses on system-level solutions for high-voltage power conversion, leveraging proprietary technologies and extensive IP protection[12, 13] - PI's unique "Fabless IDM" manufacturing model ensures best-in-class supply, quality, and cost[31] Market and Growth Opportunities - PI's addressable market is expanding and diversifying, projected to double from 2022 to 2027, reaching $8 billion[11, 33, 36, 38, 109] - The company's revenue mix is shifting towards industrial, automotive, and appliance sectors, which accounted for over 70% of the mix[108] - GaN (Gallium Nitride) is identified as the future of HV power conversion, and PI is a leader in GaN technology[11, 33, 56, 68] Financial Performance and Sustainability - 52% of 2024 sales came from product families introduced in 2001 and prior, demonstrating annuity revenue streams from long-lived products[29] - The company targets a low-double-digit CAGR (Compound Annual Growth Rate) for revenue growth and aims for a non-GAAP gross margin of 50-55% and a non-GAAP operating margin of 25-30%[109] - In 2024, 95% of Power Integrations' revenues were EU Taxonomy-Eligible[74] - EcoSmart technology saved an estimated 11.5 TWh of standby energy in 2024[77] - Free cash flow was 15% of revenue in 2024, and 185% of free cash flow was returned to stockholders between 2022 and 2024[113]

Power Integrations (POWI) FY 2025 Annual General Meeting May 15, 2025 11:00 AM ET Speaker0 Alright. Good morning. Good morning, everyone. I'm I'm Joe Shiflow, director of investor relations at Power Integrations. Before I turn it over to Balu, I'd like to cover a couple of housekeeping matters relating to today's virtual meeting. Hopefully, everyone is voted by one of the methods outlined in the proxy materials. If you're a stockholder of record or if you have a legal proxy and would like to vote during the ...

Core Viewpoint - Power Integrations (POWI) reported quarterly earnings of $0.31 per share, exceeding the Zacks Consensus Estimate of $0.28 per share, and showing an increase from $0.18 per share a year ago [1][2] Financial Performance - The earnings surprise for the quarter was 10.71%, with the company previously expected to post earnings of $0.27 per share but actually reporting $0.30, resulting in an 11.11% surprise [2] - The company posted revenues of $105.53 million for the quarter ended March 2025, slightly missing the Zacks Consensus Estimate by 0.04%, compared to $91.69 million in the same quarter last year [3] - Over the last four quarters, Power Integrations has surpassed consensus EPS estimates four times and topped consensus revenue estimates three times [2][3] Stock Performance and Outlook - Power Integrations shares have declined approximately 12.3% since the beginning of the year, while the S&P 500 has decreased by 3.8% [4] - The company's future stock performance will largely depend on management's commentary during the earnings call and the sustainability of the recent earnings numbers [4] Earnings Estimates and Industry Outlook - The current consensus EPS estimate for the upcoming quarter is $0.36 on revenues of $114.55 million, and for the current fiscal year, it is $1.56 on revenues of $471.25 million [8] - The Zacks Industry Rank indicates that the Semiconductors - Power sector is in the top 40% of over 250 Zacks industries, suggesting that companies in the top 50% outperform those in the bottom 50% by more than 2 to 1 [9]

Financial Data and Key Metrics Changes - Revenues for Q1 were $106 million, up 15% year over year and flat sequentially [16] - Non-GAAP EPS for Q1 was $0.31, with a non-GAAP gross margin of 55.9%, up 80 basis points from the prior quarter [16][18] - Cash flow from operations was $26 million, with CapEx at $6 million [19] Business Line Data and Key Metrics Changes - Consumer revenues increased about 20% sequentially, driven by appliances and air conditioning [17] - Industrial revenues decreased 3% sequentially, below expectations due to seasonality [17] - Computer and Communication categories saw mid-teens and mid-20s percentage declines respectively, largely driven by seasonality [17] Market Data and Key Metrics Changes - All four end markets were up year over year, with consumer and computer categories leading with over 20% growth [7] - Industrial is expected to be the fastest-growing market this year, driven by high power design wins [10] - The communications category grew slightly year over year, now dominated by non-Chinese OEM branded accessory chargers [9] Company Strategy and Development Direction - The company is focusing on high voltage semiconductors to meet demand driven by energy efficiency, artificial intelligence, and electrification [14] - The outlook for the second half of the year is highly dependent on trade policy, with expectations for mid-teens growth if tariffs do not impact demand [55] - The company is actively buying back shares, utilizing its strong balance sheet during market volatility [6][19] Management's Comments on Operating Environment and Future Outlook - Management noted stable bookings and healthy distribution inventory, with no significant changes in business trends since the tariff announcement [6] - The company anticipates a seasonally higher second quarter, with revenues expected to be $115 million plus or minus $5 million [12] - Management expressed confidence in the industrial segment's growth, particularly in high voltage DC transmission and renewables [10][36] Other Important Information - The company has authorized an additional $50 million for share repurchases, following $23 million in buybacks during the quarter [19] - Channel inventory is at 7.9 weeks, considered normal, with consumer inventory below normal levels [20][56] Q&A Session Summary Question: Changes in ramp timing or volume for design wins - Management indicated that the delay in high power ramp is unrelated to tariffs and is specific to a particular program, expected to ramp in Q2 [24] Question: Trends for margins for the rest of the year - Management expects non-GAAP gross margin to remain steady around 55.5% for the year, with operating margins benefiting from revenue increases in Q3 and Q4 [26] Question: Strength in automotive design wins - Management reported better than anticipated performance in automotive design wins, with expectations of reaching around $100 million in revenue by 2029 [32] Question: Impact of tariffs on the second half - Management noted that while it is hard to predict the impact of tariffs, they have not seen unusual trends so far and expect mid-teens growth if tariffs do not affect demand [55] Question: Geographic demand and shifts in manufacturing - Management observed that OEMs in China are pragmatic and continue to use their products, with some manufacturing shifting to India and Vietnam [63] Question: Impact of currency fluctuations on gross margins - A 10% change in the yen impacts gross margins by about 100 to 120 basis points, with current conditions providing a benefit of around 200 basis points [66]

Financial Data and Key Metrics Changes - Revenues for Q1 were $106 million, up 15% year over year and flat sequentially [15] - Non-GAAP EPS for Q1 was $0.31, with a non-GAAP gross margin of 55.9%, up 80 basis points from the prior quarter [15][17] - Cash flow from operations was $26 million, with CapEx at $6 million [18] Business Line Data and Key Metrics Changes - Consumer revenues increased about 20% sequentially, driven by appliances and air conditioning [16] - Industrial revenues decreased 3% sequentially, below expectations due to seasonality [16] - Computer and Communication categories saw declines in mid-teens and mid-20s respectively, largely driven by seasonality [16] Market Data and Key Metrics Changes - All four end markets were up year over year, with consumer and computer categories leading with over 20% growth [6] - Industrial is expected to be the fastest-growing market this year, driven by high power design wins [10] Company Strategy and Development Direction - The company is focusing on high voltage semiconductors to meet demand trends in energy efficiency, artificial intelligence, and electrification [14] - The outlook for the second half of the year is highly dependent on trade policy, but the company expects to benefit from low channel inventories [13][50] Management's Comments on Operating Environment and Future Outlook - Management noted stable bookings and healthy distribution inventory, with no significant changes in business trends since the tariff announcement [5][6] - The company anticipates a seasonally higher second quarter, with revenues expected to be $115 million plus or minus $5 million [12][19] Other Important Information - The company has authorized an additional $50 million for share repurchases, following $23 million spent in Q1 [18][19] - Channel inventory is at 7.9 weeks, considered normal, with consumer inventory below normal levels [51][63] Q&A Session Summary Question: Changes in ramp timing or volume for design wins - Management indicated that the high power delay is unrelated to tariffs and is specific to a particular program, expected to ramp in Q2 [22][24] Question: Trends for margins for the rest of the year - Management expects non-GAAP gross margin to remain steady around 55.5% for the year, with operating margins benefiting from revenue increases in Q3 and Q4 [25] Question: Strength in automotive design wins - Management reported better than anticipated performance in automotive, with expectations of reaching around $100 million in revenue by 2029 [30][31] Question: Consumer segment and tariff-related demand - Management noted that demand in the consumer segment was better than anticipated, with a few million dollars in additional revenue attributed to tariff-related pull-ins [39][41] Question: Impact of tariffs on the second half outlook - Management stated that so far, there have been no unusual impacts from tariffs, and they expect mid-teens growth if tariffs do not affect demand [50] Question: Geographic demand and shifts in manufacturing - Management observed that OEMs in China are pragmatic and continue to use their products, with some manufacturing shifting to India and Vietnam [55][57] Question: Impact of currency fluctuations on gross margins - A 10% change in the yen impacts gross margins by about 100 to 120 basis points, with current benefits from a weaker yen [58][59]