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 ...

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 September 30, 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) | Dela ...

Power Integrations, Inc. (NASDAQ:POWI) Q2 2023 Earnings Conference Call August 3, 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 Christopher Rolland - Susquehanna Ross Seymore - Deutsche Bank David Williams - The Benchmark Company Tore Svanberg - Stifel Operator Thank you for standing by. My name is Maria and I will be your conference operator today. ...

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements](index=4&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) Presents unaudited condensed consolidated financial statements for Power Integrations, Inc. as of June 30, 2023, including Balance Sheets, Income, Comprehensive Income, Stockholders' Equity, and Cash Flows [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to $859.5 million by June 30, 2023, driven by inventories and receivables, while cash decreased Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $84,096 | $105,372 | | Inventories | $149,741 | $135,420 | | Total current assets | $550,987 | $525,073 | | Total assets | $859,457 | $840,096 | | **Liabilities & Equity** | | | | Total current liabilities | $64,819 | $58,376 | | Total liabilities | $91,528 | $84,880 | | Total stockholders' equity | $767,929 | $755,216 | | Total liabilities and stockholders' equity | $859,457 | $840,096 | [Condensed Consolidated Statements of Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Net revenues, gross profit, and net income significantly declined for Q2 and H1 2023, reflecting challenging market conditions Condensed Consolidated Statements of Income (in thousands, except per share amounts) | Metric | Three Months Ended June 30, 2023 | Three Months Ended June 30, 2022 | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :--- | :--- | :--- | :--- | :--- | | **Net Revenues** | **$123,223** | **$183,986** | **$229,520** | **$366,135** | | Gross Profit | $62,846 | $106,843 | $116,803 | $207,518 | | Income from Operations | $12,641 | $60,102 | $18,398 | $111,149 | | **Net Income** | **$14,793** | **$55,824** | **$21,668** | **$102,072** | | Diluted EPS | $0.26 | $0.96 | $0.38 | $1.72 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow significantly decreased to $22.8 million in H1 2023, driven by lower net income and increased inventories Cash Flow Summary for the Six Months Ended June 30 (in thousands) | Cash Flow Activity | 2023 | 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $22,766 | $141,419 | | Net cash provided by (used in) investing activities | ($19,380) | $78,075 | | Net cash used in financing activities | ($24,662) | ($310,228) | | **Net Decrease in Cash and Cash Equivalents** | **($21,276)** | **($90,734)** | | Cash and cash equivalents at end of period | $84,096 | $67,383 | [Notes to Unaudited Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) Provides detailed explanations of accounting policies, financial statement components, including revenue recognition, inventories, stock-based compensation, customer concentration, and legal contingencies - Inventories increased to **$149.7 million** as of June 30, 2023, from **$135.4 million** at the end of 2022, with notable increases in raw materials and work-in-process[29](index=29&type=chunk) - Total stock-based compensation expense was **$6.8 million** for Q2 2023 and **$14.1 million** for H1 2023, up from **$3.7 million** and **$12.7 million** in the respective prior-year periods[45](index=45&type=chunk) - The company is involved in ongoing patent litigation with CogniPower LLC and Waverly Licensing LLC, but is currently unable to estimate a potential loss or range of loss for these cases[82](index=82&type=chunk)[83](index=83&type=chunk)[87](index=87&type=chunk) Top Customer Revenue Concentration | Customer | Q2 2023 | Q2 2022 | H1 2023 | H1 2022 | | :--- | :--- | :--- | :--- | :--- | | Avnet | 25% | 30% | 25% | 31% | | Honestar Technologies Co., Ltd. | 15% | 11% | 14% | 13% | | Salcomp Group | 14% | * | 13% | * | | Flextronics Group | 12% | * | 11% | * | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=29&type=section&id=ITEM%202.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management discusses financial performance, attributing revenue decline to macroeconomic headwinds and semiconductor downturn, covering revenue mix, gross margin, operating expenses, liquidity, and capital resources [Overview and Strategy](index=29&type=section&id=Overview%20and%20Strategy) Power Integrations designs high-voltage power-conversion ICs, with a growth strategy focused on penetrating existing markets and expanding SAM through new technologies like GaN and electric vehicles - The company's products are used in AC-DC power supplies, high-voltage LED drivers, motor-driver ICs, and high-voltage gate drivers for industrial and automotive applications[93](index=93&type=chunk)[94](index=94&type=chunk) - Growth strategy is twofold: increase penetration in current markets and expand the Served Available Market (SAM) from its current **~$4 billion** by targeting higher-power applications, new technologies (like GaN), and emerging markets like electric vehicles[96](index=96&type=chunk)[99](index=99&type=chunk)[100](index=100&type=chunk) [Results of Operations](index=33&type=section&id=Results%20of%20Operations) Q2 2023 net revenues decreased 33% to $123.2 million, with gross margin contracting to 51.0% due to unfavorable product mix and lower volumes Financial Performance Comparison (Q2 2023 vs Q2 2022) | Metric | Q2 2023 | Q2 2022 | | :--- | :--- | :--- | | Net Revenues | $123.2M | $184.0M | | Gross Profit | $62.8M | $106.8M | | Gross Margin | 51.0% | 58.1% | | R&D Expenses | $24.5M | $23.5M | | S&M Expenses | $17.0M | $16.0M | | G&A Expenses | $8.7M | $6.1M | - The revenue decrease was primarily driven by reduced demand and elevated inventories in the consumer and industrial end-markets, attributed to macroeconomic factors like inflation, higher interest rates, and a post-pandemic shift in consumer spending[112](index=112&type=chunk) Revenue Mix by End Market | End Market | Q2 2023 | Q2 2022 | | :--- | :--- | :--- | | Communications | 28% | 18% | | Computer | 14% | 9% | | Consumer | 29% | 38% | | Industrial | 29% | 35% | [Liquidity and Capital Resources](index=40&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2023, the company held **$346.3 million** in cash and equivalents, with working capital at **$486.2 million**, and maintained an undrawn **$75.0 million** revolving credit line - The company has a **$75.0 million** revolving line of credit, amended in June 2023 to include SOFR as a benchmark rate and extending to June 7, 2026, with no advances outstanding as of June 30, 2023[129](index=129&type=chunk) - In H1 2023, the company paid **$21.8 million** in dividends and repurchased approximately **80,000 shares** of common stock for **$6.0 million**[134](index=134&type=chunk)[139](index=139&type=chunk) - The board declared a quarterly dividend of **$0.19 per share** for 2023, an increase from **$0.18 per share** in 2022[137](index=137&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=44&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) No material changes occurred in the company's interest rate or foreign currency exchange risk during the first six months of 2023 - There were no material changes to the company's market risk exposures, including interest rate and foreign currency exchange risk, in the first half of 2023[145](index=145&type=chunk) [Item 4. Controls and Procedures](index=44&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management concluded that disclosure controls and procedures were effective as of June 30, 2023, with no material changes to internal controls over financial reporting - Management concluded that the company's disclosure controls and procedures were effective as of the end of the period covered by the report[147](index=147&type=chunk) - No changes in internal control over financial reporting occurred during the quarter ended June 30, 2023, that would have a material effect[148](index=148&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=44&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) Refers to Note 12 of the financial statements for details on legal proceedings, including patent infringement lawsuits - The company refers to Note 12 of the financial statements for details on its legal proceedings[149](index=149&type=chunk) [Item 1A. Risk Factors](index=44&type=section&id=ITEM%201A.%20RISK%20FACTORS) No substantive changes occurred to the risk factors disclosed in the 2022 Annual Report on Form 10-K - Risk factors have not changed substantively from those disclosed in the 2022 Annual Report on Form 10-K[150](index=150&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=45&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) During Q2 2023, the company repurchased approximately **57,000 shares** for **$4.3 million**, with **$75.3 million** remaining under the repurchase program Issuer Purchases of Equity Securities (Q2 2023) | Period | Total Number of Shares Purchased | Average Price Paid Per Share | Approximate Dollar Value Remaining (in millions) | | :--- | :--- | :--- | :--- | | April 2023 | 32,061 | $75.10 | $77.1 | | May 2023 | 25,153 | $75.71 | $75.3 | | June 2023 | — | — | $75.3 | | **Total** | **57,214** | | **$75.3** | [Item 5. Other Information](index=45&type=section&id=ITEM%205.%20OTHER%20INFORMATION) No directors or officers adopted or terminated Rule 10b5-1 trading plans or other trading arrangements during Q2 2023 - No directors or officers adopted or terminated any Rule 10b5-1 trading plans during the second quarter of 2023[152](index=152&type=chunk) [Item 6. Exhibits](index=46&type=section&id=ITEM%206.%20EXHIBITS) Lists exhibits filed with Form 10-Q, including the Third Amendment to the Credit Agreement and CEO/CFO certifications - Key exhibits filed include the Third Amendment to the Credit Agreement and CEO/CFO certifications under Sarbanes-Oxley Sections 302 and 906[154](index=154&type=chunk)

Financial Data and Key Metrics - Q1 revenues were $106 million, in line with guidance and down 15% from the prior quarter [24] - Sell-through exceeded sell-in by $18 million, driving a significant reduction in channel inventories [19] - Bookings were the strongest since Q1 of last year, with March being particularly strong due to post-holiday activity and China's reopening [19] - Gross margin for Q1 was 51.5% on a non-GAAP basis, impacted by unfavorable revenue mix and lower production volumes [39] - Non-GAAP operating expenses were $41.1 million, slightly up from the prior quarter [40] - Non-GAAP earnings were $0.25 per diluted share, and cash flow from operations was $16.6 million [40] - Share repurchases totaled $1.7 million, with $80 million remaining on the authorization at quarter-end [25] Business Line Data and Key Metrics - Industrial and consumer markets declined by 25% and 20%, respectively, in Q1 [24] - High-Power business within the industrial category saw double-digit YoY growth in Q1, following 20% growth last year [9] - Communication category (primarily smartphone chargers) saw slight sequential growth, with channel inventories now slightly below normal levels [10] - Computer category was flat sequentially [10] - Design wins in motor drive, automotive, and GaN technologies are progressing well, with significant opportunities in the EV market [8][35] Market Data and Key Metrics - Smartphone market is leading the recovery, with inventories normalizing faster than other segments [14][20] - Automotive market is expected to be a $1 billion SAM by 2027, with design activity accelerating [35] - Renewable energy continues to drive growth in the High-Power business, with a major design win for utility-scale inverters in Europe [9] - China's reopening contributed to a surge in March bookings, but demand sustainability remains uncertain [72] Company Strategy and Industry Competition - The company is focused on long-term growth, particularly in GaN technology, which is a cornerstone of its strategy [33] - GaN products are differentiated by their integration and cost-performance advantages, with a roadmap to achieve cost parity with silicon within a couple of years [34] - The company is gaining market share during the downturn and expects to emerge stronger [52] - Automotive opportunities are growing rapidly, with a high conversion rate of opportunities into design wins [68] Management Commentary on Operating Environment and Future Outlook - Q1 was the bottom of the cycle, with recovery beginning in Q2, led by the smartphone market [14] - The company expects Q2 revenues of $122 million, plus or minus $5 million, with further reductions in channel inventory [15][41] - Gross margin is expected to improve in Q2 and more significantly in the second half, driven by favorable yen impact, higher production volumes, and improved revenue mix [39][41] - The second half of 2023 is expected to be significantly stronger than the first half, with revenue and margin improvements [23][44] Other Important Information - The company announced the launch of 900-volt GaN products, expanding its offerings for industrial, appliance, and EV markets [8] - Two board members will step down, and Ravi Vig, former CEO of Allegro Micro-Systems, will join the board [37] - Inventory levels are expected to decline steadily over the next several quarters, with a target range of $150-$170 million by year-end [58] Q&A Session Summary Question: Channel inventory burn and normalized revenue levels [27] - Answer: Sell-through exceeded sell-in by $18 million in Q1, and a similar trend is expected in Q2, bringing channel inventories close to normal levels [28] Question: True end demand and market recovery [51] - Answer: The company expects demand to improve, particularly in appliances, but the exact slope of recovery is uncertain [52] Question: Consumer and industrial segment recovery [55] - Answer: Consumer is expected to recover by Q3, while industrial will follow, with high-power business continuing to grow [85] Question: Gross margin improvement drivers [63] - Answer: Weaker yen, higher production volumes, and favorable revenue mix are expected to drive gross margin improvement in the second half [57] Question: Automotive market progress [74] - Answer: Design activity in automotive is accelerating, with a high conversion rate of opportunities into design wins, though significant revenue growth is expected in 2025-2026 [68][69] Question: Geographic trends, particularly in China [72] - Answer: March saw a surge in bookings due to China's reopening, but demand sustainability remains uncertain [72] Question: Normalized revenue range [78] - Answer: The company expects the second half of 2023 to be significantly stronger than the first half, but exact normalized revenue levels are unclear [79][83]

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, 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 ...