Financial Data and Key Metrics - Q2 revenues were $106 million, up 16% sequentially, slightly above the midpoint of guidance [8] - Non-GAAP earnings were $0.28 per diluted share, above guidance due to better gross margin and operating expenses [8] - Non-GAAP gross margin was 54.1%, up more than 1 percentage point sequentially, driven by favorable yen exchange rates and higher manufacturing volumes [9] - Inventory days decreased to 312, down 37 days from the prior quarter [9] - Q3 revenue guidance is $115 million, plus or minus $5 million, representing an 8% sequential increase at the midpoint [10] - Non-GAAP gross margin for Q3 is expected to be between 54.5% and 55% [10] Business Line Performance - Consumer category, the largest segment, saw high-teens sequential growth, driven by strength in major and small appliances, as well as air conditioning [8] - Industrial category revenues grew mid-single digits sequentially, supported by improved inventories and design wins in metering applications [8] - Computer category revenues increased more than 40% sequentially, driven by tablets, aftermarket notebook chargers, and monitors [8] - Communication category revenues grew 10% sequentially, due to inventory clearance at a key handset customer [8] Market Performance - In China, appliance demand remains soft, with no significant pickup in demand despite inventory normalization [12] - The cell phone market in China has shifted towards low-end phones, with Huawei gaining share in the high-end segment, negatively impacting the company's performance [12][13] - Outside of China, the company is performing well, with overall growth (excluding cell phones) projected to exceed 15% for the year [13] - India's metering market shows strong interest in higher voltage GaN products, with plans to deploy 250 million new meters in the coming years [6] Strategic Direction and Industry Competition - The company expects 2025 to be an inflection point for GaN adoption, driven by product portfolio migration from silicon to GaN and broader customer awareness [6] - GaN revenue is projected to grow by 50% in 2025, with potential to reach $100 million by 2028 [18] - The acquisition of Odyssey Semiconductor adds expertise in vertical GaN technology, aiming to address high-power applications like EV drivetrain inverters [7] - The company continues to win market share in appliances, leveraging its leadership in energy-efficient power supplies and new product innovations like BridgeSwitch 2 and InnoMux-2 [4][5] Management Commentary on Operating Environment and Future Outlook - Near-term visibility remains limited, with customers ordering products only when needed due to cautious behavior and short lead times [3] - The recovery is being led by the consumer category, which has seen a 70% revenue increase over the past two quarters [3] - The company expects seasonally lower air conditioning sales in Q3 but remains optimistic about the fundamental strength of its consumer business [4] - Automotive is seen as a significant growth opportunity, with the company expected to be in production with 20 EV OEMs by year-end and 10 more in 2025 [7] Other Important Information - Distribution inventory ended the quarter at 7.8 weeks, down from 8.8 weeks in the prior quarter and well below the peak of 13.6 weeks in Q3 2022 [3][9] - The company repurchased 164,000 shares for $11 million during the quarter and paid $11 million in dividends [9] - Non-GAAP operating expenses for Q3 are expected to be between $44.5 million and $45 million, driven by the Odyssey acquisition [10] Q&A Session Question: Geographic performance, particularly in China - In China, appliance demand remains weak, with no significant pickup expected due to challenges in the real estate market [12] - The cell phone market in China has shifted towards low-end phones, with Huawei gaining share in the high-end segment, negatively impacting the company's performance [12][13] - Outside of China, the company is performing well, with overall growth (excluding cell phones) projected to exceed 15% for the year [13] Question: Second-half outlook and factors influencing growth - The inventory situation has normalized, but demand visibility remains poor, with customers ordering at the last minute [16] - Growth in the second half is expected to be slower than anticipated, with limited visibility into Q4 [16] Question: GaN adoption and future revenue potential - GaN adoption is expected to accelerate in 2025, driven by new product introductions and broader market awareness [18] - GaN revenue could grow by 50% in 2025, with potential to reach $100 million by 2028 [18] Question: Impact of yen fluctuations on financials - A 10% change in the yen typically affects gross margin by 120 basis points, with the impact flowing into the P&L over three to four quarters due to higher inventory levels [20] - Recent yen fluctuations are expected to impact the P&L in Q4 2025 or Q1 2026 [20]

Earnings Performance - Power Integrations reported quarterly earnings of $0 28 per share, beating the Zacks Consensus Estimate of $0 26 per share [1] - This represents a 7 69% earnings surprise compared to the consensus estimate [2] - The company has surpassed consensus EPS estimates three times over the last four quarters [2] Revenue Performance - Power Integrations posted revenues of $106 2 million for the quarter ended June 2024, surpassing the Zacks Consensus Estimate by 1 14% [3] - This compares to year-ago revenues of $123 22 million [3] - The company has topped consensus revenue estimates two times over the last four quarters [3] Stock Performance - Power Integrations shares have lost about 21 2% since the beginning of the year, compared to the S&P 500's gain of 8 7% [4] - The stock is currently rated Zacks Rank 4 (Sell), indicating expected underperformance in the near future [7] Earnings Outlook - The current consensus EPS estimate is $0 40 on $123 12 million in revenues for the coming quarter [8] - For the current fiscal year, the consensus EPS estimate is $1 33 on $452 92 million in revenues [8] Industry Context - Power Integrations belongs to the Zacks Semiconductors - Power industry, which is currently in the bottom 4% of the 250 plus Zacks industries [9] - The top 50% of Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1 [9] Peer Comparison - Analog Devices (ADI), another company in the Zacks Computer and Technology sector, is expected to report quarterly earnings of $1 50 per share, representing a year-over-year change of -39 8% [10] - Analog Devices' revenues are expected to be $2 27 billion, down 26 1% from the year-ago quarter [11]

Revenue and Profit Performance - Net revenues for Q2 2024 were $106.2 million, a decrease from $123.2 million in Q2 2023[6] - Gross profit for Q2 2024 was $56.5 million, down from $62.8 million in Q2 2023[6] - Net income for Q2 2024 was $4.8 million, compared to $14.8 million in Q2 2023[6] - Net income for the six months ended June 30, 2024, was $8.8 million, compared to $21.7 million in the same period in 2023[11] - Total comprehensive income for Q2 2024 was $4.2 million, down from $14.1 million in Q2 2023[7] - Net revenues for the three and six months ended June 30, 2024 were $106.2 million and $197.9 million, respectively, compared to $123.2 million and $229.5 million in the corresponding periods of 2023[69] - Gross margin increased to 53% and 52.7% for the three and six months ended June 30, 2024, respectively, up from 51% and 50.9% in the corresponding periods of 2023[69][75] Expenses and Operating Costs - Research and development expenses increased to $26.0 million in Q2 2024 from $24.5 million in Q2 2023[6] - Total operating expenses for Q2 2024 were $54.6 million, up from $50.2 million in Q2 2023[6] - Total operating expenses increased to $54.6 million and $101.9 million for the three and six months ended June 30, 2024, respectively, compared to $50.2 million and $98.4 million in the corresponding periods of 2023[69] - R&D expenses increased to $26.0 million and $49.3 million for the three and six months ended June 30, 2024, respectively, compared to $24.5 million and $48.5 million in the corresponding periods of 2023[77] - Sales and marketing expenses increased to $18.1 million and $33.8 million for the three and six months ended June 30, 2024, respectively, compared to $17.0 million and $32.9 million in the corresponding periods of 2023[78] - G&A expenses increased to $10.5 million and $18.8 million for the three and six months ended June 30, 2024, respectively, compared to $8.7 million and $17.0 million in the corresponding periods of 2023[79] Cash Flow and Liquidity - Cash and cash equivalents decreased to $50.5 million as of June 30, 2024, from $63.9 million as of December 31, 2023[5] - Net cash provided by operating activities for the six months ended June 30, 2024, was $33.5 million, compared to $22.8 million in 2023[11] - Net cash used in investing activities for the six months ended June 30, 2024, was $948 thousand, compared to $19.3 million in 2023[11] - Cash, cash equivalents, and short-term marketable securities decreased by $21.1 million to $290.5 million as of June 30, 2024, from $311.6 million as of December 31, 2023[82] - Operating activities generated $33.5 million of cash in the six months ended June 30, 2024, compared to $22.8 million in the same period of 2023[83][84] - Investing activities resulted in a $0.9 million net use of cash in the six months ended June 30, 2024, primarily due to $8.5 million used for purchases of property and equipment[85] - Financing activities resulted in a $46.0 million net use of cash in the six months ended June 30, 2024, including $26.0 million for stock repurchases and $22.7 million for dividend payments[86] - The company's working capital decreased by $13.1 million to $449.6 million as of June 30, 2024, from $462.7 million as of December 31, 2023[82] - The company believes existing liquidity and cash generated from operations will satisfy working capital and other cash requirements for at least the next 12 months[89] Stock Repurchases and Dividends - Repurchase of common stock for the six months ended June 30, 2024, was $25.9 million, significantly higher than $5.9 million in 2023[11] - Payments of dividends to stockholders for the six months ended June 30, 2024, were $22.7 million, slightly higher than $21.7 million in 2023[11] - The company repurchased 164,000 shares for $11.3 million in Q2 2024 and 371,000 shares for $26.0 million in the first half of 2024, exhausting its authorized stock repurchase program[49] - Cash dividends declared and paid in Q2 2024 were $11.4 million, or $0.20 per share, compared to $10.9 million, or $0.19 per share, in Q2 2023[50] - Dividend payouts of $11.4 million occurred on March 28, 2024, and June 28, 2024, with quarterly dividends raised to $0.20 per share in October 2023[86] Assets and Liabilities - Total current assets were $499.8 million as of June 30, 2024, down from $511.6 million as of December 31, 2023[5] - Total liabilities increased to $74.0 million as of June 30, 2024, from $67.6 million as of December 31, 2023[5] - Accounts receivable trade as of June 30, 2024, was $46.8 million, down from $53.1 million as of December 31, 2023[17] - Allowance for credit losses as of June 30, 2024, was $1.0 million, up from $681 thousand as of December 31, 2023[17] - Total inventories increased to $169,884 thousand as of June 30, 2024, compared to $163,164 thousand as of December 31, 2023[20] - Intangible assets decreased to $3,561 thousand as of June 30, 2024, from $4,424 thousand as of December 31, 2023[21] - Accumulated other comprehensive loss increased to $3,189 thousand as of June 30, 2024, compared to $5,757 thousand as of June 30, 2023[24] - Total fair value of marketable securities was $267,688 thousand as of June 30, 2024, with $267,197 thousand classified under Level 2 of the fair-value hierarchy[28] - Investments due in 3 months or less had an estimated fair market value of $3,975 thousand as of June 30, 2024[30] - Total marketable securities as of December 31, 2023, were valued at $247,640 thousand, with $247,384 thousand in amortized cost[31] - Total marketable securities as of June 30, 2024, had a fair market value of $190.3 million with gross unrealized losses of $869,000[32] Stock-Based Compensation - Stock-based compensation expense for the six months ended June 30, 2024, was $17.4 million, up from $14.1 million in 2023[11] - Stock-based compensation expense for the three months ended June 30, 2024, was $11.0 million, with $6.3 million related to RSU awards and $4.3 million related to PSU and PRSU awards[35] - Stock-based compensation expense for the six months ended June 30, 2024, was $17.4 million, with $12.4 million related to RSUs and $4.3 million related to PSUs and PRSUs[35] - Approximately 38,000 shares subject to PSUs granted in 2023 vested and were released to employees and executives in Q1 2024[37] - PRSUs outstanding as of June 30, 2024, had an aggregate intrinsic value of $30.7 million with a weighted-average remaining contractual term of 1.67 years[39] - RSUs outstanding as of June 30, 2024, had an aggregate intrinsic value of $72.1 million with a weighted-average remaining contractual term of 1.84 years[40] Sales and Customer Concentration - The top ten customers accounted for approximately 80% and 78% of net revenues for the three and six months ended June 30, 2024, respectively[42] - Sales to distributors were $73.5 million and $139.9 million for the three and six months ended June 30, 2024, respectively[42] - Avnet represented 28% and 29% of net revenues for the three and six months ended June 30, 2024, respectively[43] - Avnet accounted for 27% of accounts receivable as of June 30, 2024[46] - International sales accounted for $104.6 million and $194.6 million in the three and six months ended June 30, 2024, respectively, representing 85% and 83% of net revenues[72] - Sales to distributors accounted for 69% and 71% of net revenues in the three and six months ended June 30, 2024, respectively, up from 64% and 63% in the corresponding periods of 2023[72] Geographic Revenue - Geographic net revenues for the three months ended June 30, 2024, were $106.2 million, a decrease from $123.2 million in the same period in 2023[47] - Hong Kong/China contributed $63.1 million to net revenues in Q2 2024, down from $76.5 million in Q2 2023[47] - Total net revenues for the six months ended June 30, 2024, were $197.9 million, compared to $229.5 million in the same period in 2023[47] Earnings Per Share and Tax Rates - Earnings per share (diluted) for Q2 2024 were $0.09, compared to $0.26 in Q2 2023[6] - Basic earnings per share for Q2 2024 were $0.09, down from $0.26 in Q2 2023[52] - The company's effective tax rate for Q2 2024 was 5.8%, compared to 3.7% in Q2 2023[53] - The effective tax rate was 5.8% and 3.5% for the three and six months ended June 30, 2024, respectively, compared to 3.7% and 5.1% in the corresponding periods of 2023[80] - Effective tax rates for the three and six months ended June 30, 2024 were 5.8% and 3.5%, respectively, compared to 3.7% and 5.1% in the corresponding periods of 2023[81] - The company's effective tax rate was favorably impacted by excess tax benefits related to share-based payments in both Q2 2024 and Q2 2023[53] - The company maintains a valuation allowance on its California and New Jersey deferred tax assets, as well as deferred tax assets related to tax credits in Canada[53] Legal and Regulatory Matters - The company is involved in ongoing legal proceedings, including a patent infringement case with CogniPower LLC, with a trial scheduled for August 2025[55] - The company has not incurred any material indemnification claims or reimbursements to distributors or customers as of June 30, 2024[58] Market and Product Strategy - The company's addressable market (SAM) has expanded from $1.5 billion pre-2010 to approximately $4 billion through product introductions and market expansions[65] - The company introduced BridgeSwitch-2 motor-driver ICs in 2024, expanding its addressable power range for motor-drive applications[65] - The company's products contribute to energy efficiency and renewable energy adoption, aligning with global carbon emission reduction goals[64] - The company's system-level power-conversion products offer benefits such as reduced design complexity, smaller size, and higher reliability compared to discrete designs[63] - The company expects automotive applications, particularly in the EV market, to become a significant portion of its SAM over time[65] Other Financial Metrics - Provision for credit loss expense for the six months ended June 30, 2024, was $847 thousand, compared to $827 thousand in 2023[18] - Purchases of marketable securities for the six months ended June 30, 2024, were $77.8 million, down from $110.8 million in 2023[11] - Estimated amortization for intangible assets is projected to be $2,300 thousand over the next four years[23] - Other income increased to $3.2 million and $6.7 million for the three and six months ended June 30, 2024, respectively, compared to $2.7 million and $4.4 million in the corresponding periods of 2023[79] - Unrecognized tax benefits and associated interest totaled approximately $16.4 million and $0.3 million, respectively, as of June 30, 2024[88] Acquisitions and Investments - The company acquired Odyssey Semiconductor Technologies for $9.52 million in cash consideration, expanding its vertical gallium-nitride (GaN) transistor technology capabilities[59]

Exhibit 99.1 Power Integrations Reports Second-Quarter Financial Results Quarterly revenues were $106.2 million; GAAP earnings were $0.09 per diluted share; non-GAAP earnings were $0.28 per diluted share SAN JOSE, CALIF. – August 6, 2024 – Power Integrations (NASDAQ: POWI) today announced financial results for the quarter ended June 30, 2024. Net revenues for the second quarter were $106.2 million, up 16 percent from the prior quarter and down 14 percent from the second quarter of 2023. GAAP net income for ...

Power Integrations, Inc. (NASDAQ:POWI) Q1 2024 Earnings Conference Call May 7, 2024 4:30 PM ET Company Participants Joe Shiffler - Director, Investor Relations Balu Balakrishnan - Chairman & Chief Executive Officer Sandeep Nayyar - Chief Financial Officer Conference Call Participants Christopher Rolland - Susquehanna International Group David Williams - Benchmark Company Matt Ramsay - TD Cowen Operator Thank you for standing by. My name is Meg, and I will be here conference operator today. At this time, I w ...

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 March 31, 2024 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 Reports First-Quarter Financial Results Quarterly revenues were $91.7 million; GAAP earnings were $0.07 per diluted share; non-GAAP earnings were $0.18 per diluted share SAN JOSE, CALIF. – May 7, 2024 – Power Integrations (NASDAQ: POWI) today announced financial results for the quarter ended March 31, 2024. Net revenues for the first quarter were $91.7 million, up two percent from the prior quarter and down 14 percent from the first quarter of 2023. GAAP net income for the fi ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 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 94-3065014 (State or ...

Power Integrations, Inc. (NASDAQ:POWI) Q4 2023 Results Earnings Conference Call February 9, 2024 4:30 PM ET Company Participants Joe Shiffler - Director, Investor Relations Balu Balakrishnan - Chairman & Chief Executive Officer Sandeep Nayyar - Chief Financial Officer Conference Call Participants Christopher Rolland - Susquehanna Financial Group David Williams - The Benchmark Company Ross Seymore - Deutsche Bank Matt Ramsay - TD Cowen Tore Svanberg - Stifel Operator Thank you for standing by. Welcome to the ...

Power Integrations, Inc. (NASDAQ:POWI) Q3 2023 Results Conference Call November 7, 2023 4:30 PM ET Company Participants Joe Shiffler - Director, Investor Relations Balu Balakrishnan - Chairman & Chief Executive Officer Sandeep Nayyar - Chief Financial Officer Conference Call Participants Tore Svanberg - Stifel David Williams - the Benchmark Company Christopher Rolland - Susquehanna Matt Ramsey - TD Cohen Ross Seymore - Deutsche Bank Operator Thank you for standing by. We do apologize for the delay in starti ...