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]

Financial Performance - Net revenues for the three months ended March 31, 2023, were $106.3 million, a decrease of 41.7% compared to $182.1 million for the same period in 2022[12] - Gross profit for the same period was $54.0 million, down 46.3% from $100.7 million year-over-year[12] - Net income for Q1 2023 was $6.9 million, a decline of 85.1% compared to $46.2 million in Q1 2022[12] - Earnings per share (EPS) for Q1 2023 were $0.12, down from $0.78 in Q1 2022[12] - Total operating expenses decreased to $48.2 million in Q1 2023 from $49.6 million in Q1 2022, mainly due to lower stock-based compensation and patent litigation expenses[105] - Gross margin decreased to 50.8% in Q1 2023 from 55.3% in Q1 2022, primarily due to an unfavorable end-market mix and lower manufacturing volume[104][113] Assets and Liabilities - Total current assets increased to $539.2 million as of March 31, 2023, compared to $525.1 million at the end of 2022[11] - Total liabilities rose to $89.1 million as of March 31, 2023, compared to $84.9 million at the end of 2022[11] - Cash and cash equivalents decreased to $94.2 million from $105.4 million at the end of 2022[20] - Total stockholders' equity increased to $762.3 million as of March 31, 2023, from $755.2 million at the end of 2022[11] - Working capital as of March 31, 2023 was $476.1 million, up approximately $9.4 million from $466.7 million as of December 31, 2022[120] Cash Flow - The company reported a net cash provided by operating activities of $16.6 million for Q1 2023, down from $74.6 million in Q1 2022[20] - Operating activities generated $16.6 million of cash in Q1 2023, with net income of $6.9 million[122] - Investing activities resulted in a cash outflow of $18.3 million in Q1 2023, primarily due to $14.2 million for marketable securities purchases[124] - Financing activities in Q1 2023 resulted in a net cash outflow of $9.5 million, including $10.9 million paid in dividends[126] Market and Sales - The company anticipates continued challenges in demand for its products in major end markets, which may impact future revenues[9] - The Company's top ten customers accounted for approximately 78% of net revenues for the three months ended March 31, 2023, compared to 77% in the same period of 2022[56] - Sales to distributors were $66.8 million for the three months ended March 31, 2023, down from $135.7 million in the same period of 2022[56] - The Company's revenue from Hong Kong/China for the three months ended March 31, 2023, was $59.6 million, a decrease of 43.4% from $105.2 million in the same period of 2022[60] - The Company's revenue from Germany for the three months ended March 31, 2023, was $7.5 million, down from $11.5 million in the same period of 2022[60] Inventory and Receivables - Accounts receivable decreased from $78,914 thousand on December 31, 2022, to $68,860 thousand on March 31, 2023, reflecting a reduction of approximately 12.8%[26] - Total inventories increased from $135,420 thousand on December 31, 2022, to $142,444 thousand on March 31, 2023, representing an increase of approximately 5.5%[29] - The total allowance for credit losses decreased from $1,135 thousand at the beginning of the period to $681 thousand at the end of the period, indicating a reduction of approximately 40%[27] - The allowance for credit losses included recoveries collected of $893 thousand in the three months ended March 31, 2023, compared to $325 thousand in the same period of 2022, reflecting an increase of approximately 174%[27] Dividends and Stock Repurchase - The Company declared dividends of $0.19 per share for the three months ended March 31, 2023, compared to $0.18 per share in the same period of 2022[65] - As of March 31, 2023, the Company had $79.6 million remaining under its authorized stock-repurchase program after purchasing 23,000 shares for $1.7 million[64] - The company declared a dividend of $0.19 per share for 2023, with a payout of $10.9 million on March 31, 2023[128] - As of March 31, 2023, the company had $81.3 million remaining under its stock-repurchase program, having repurchased 23,000 shares for $1.7 million in Q1 2023[131] Research and Development - Research and development expenses increased to $24.0 million in Q1 2023 from $23.7 million in Q1 2022, driven by higher product development costs[114] - The company aims to increase market penetration in AC-DC applications with power outputs up to approximately 500 watts and gate-driver applications ranging from a few kilowatts to gigawatts[94] - The company launched PowerPros℠ in 2022, a live online video support service for power-supply designers, available 24/6 globally[96] - The company expects automotive applications to become a significant portion of its SAM over time, with plans to introduce additional EV-targeted products[97] Legal and Tax Matters - The company believes it has strong claims and defenses in ongoing legal proceedings, but the outcomes remain uncertain[82] - The company maintains a valuation allowance on its California and New Jersey deferred tax assets as of March 31, 2023[73] - Provision for income taxes for Q1 2023 was $0.6 million, down from $5.4 million in Q1 2022, with an effective tax rate of 8.0% compared to 10.4% in the prior year[118] - The effective tax rate for the three months ended March 31, 2023, was 8.0%, lower than the 10.4% effective tax rate in the same period of 2022, primarily due to earnings in lower-tax jurisdictions[72] Market Conditions - Net revenues for the three months ended March 31, 2023, were $106.3 million, a decrease from $182.1 million in the same period of 2022, reflecting a decline in demand due to macroeconomic factors and a cyclical downturn in the semiconductor industry[102][109] - Sales to distributors represented 63% of total sales in Q1 2023, down from 75% in Q1 2022[111] - The addressable market (SAM) has expanded from approximately $1.5 billion in 2010 to about $4 billion, driven by new product introductions and market entries[97] - The introduction of gallium-nitride (GaN) transistors in products began in 2019, enhancing energy efficiency and expanding application ranges[98]

Financial Performance - Net revenues for 2022 were $651,138, a decrease of 7.4% from $703,277 in 2021[240]. - Gross profit increased to $366,907 in 2022, compared to $360,639 in 2021, reflecting a gross margin of approximately 56.3%[240]. - Operating expenses totaled $186,495 in 2022, slightly up from $185,581 in 2021, with R&D expenses increasing to $93,894[240]. - Net income for 2022 was $170,851, representing a 3.4% increase from $164,413 in 2021[242]. - Basic earnings per share rose to $2.96 in 2022, compared to $2.73 in 2021, while diluted earnings per share were $2.93[240]. - Total comprehensive income for 2022 was $167,244, compared to $162,839 in 2021[242]. - Total income before income taxes for 2022 was $183.426 million, compared to $176.135 million in 2021, indicating a 4.0% rise[338]. - The effective tax rate for 2022 was 6.9%, slightly higher than 6.7% in 2021, influenced by the geographic distribution of earnings[338]. Assets and Liabilities - Total current assets decreased from $686,815,000 in 2021 to $525,073,000 in 2022, a decline of approximately 23.5%[237]. - Total liabilities decreased from $102,455,000 in 2021 to $84,880,000 in 2022, a reduction of approximately 17.1%[237]. - Total stockholders' equity decreased from $912,032,000 in 2021 to $755,216,000 in 2022, a decline of about 17.2%[237]. - The total fair value of cash equivalents and marketable securities decreased from $484,570 thousand in 2021 to $307,487 thousand in 2022[289]. - The allowance for credit losses increased from $445 thousand in 2021 to $1,135 thousand in 2022, with a provision for credit loss expense of $1,859 thousand[283]. - Total inventory rose significantly from $99,266 thousand in 2021 to $135,420 thousand in 2022, driven by an increase in raw materials from $24,131 thousand to $75,355 thousand[282]. Cash Flow and Investments - Cash flows from operating activities amounted to $215,343 in 2022, down from $230,868 in 2021[246]. - The company reported a net cash decrease of $52,745 in cash and cash equivalents, ending the year with $105,372[246]. - The company held primarily cash equivalents and short-term investments with fixed interest rates as of December 31, 2022[220]. - The weighted average interest rate of investments increased from 0.45% in 2021 to 2.08% in 2022[293]. - The Company repurchased $311,094 worth of common stock in 2022, significantly higher than $73,938 in 2021[246]. - The Company repurchased approximately 3.8 million shares for approximately $311.1 million in 2022, compared to 0.9 million shares for $73.9 million in 2021[325]. Research and Development - Research and development costs are expensed as incurred, reflecting the company's commitment to innovation[276]. - The company introduced a new family of motor-driver ICs in 2018, targeting brushless DC motors for consumer appliances and light commercial applications[1]. Tax and Legal Matters - The provision for income taxes in 2022 was $12,575, compared to $11,722 in 2021[240]. - Total unrecognized tax benefits rose to $23.386 million in 2022, up from $21.363 million in 2021, marking a 9.5% increase[344]. - The Company entered into a binding settlement agreement with Opticurrent, LLC, agreeing to pay $2.9 million to resolve all outstanding legal disputes[354]. - The Company filed a motion to dismiss a complaint from Waverly Licensing LLC, alleging patent infringement, and expects a resolution in the coming months[358]. Stock and Compensation - Total stock-based compensation expense for the year ended December 31, 2022, was approximately $22.36 million, a decrease from $37.61 million in 2021[303]. - The total unrecognized compensation expense related to unvested awards as of December 31, 2022, was $46.91 million[305]. - The fair value of employees' stock purchase rights under the Purchase Plan was estimated at $21.63 for 2022, down from $23.92 in 2021[308]. - Approximately 104,000 shares subject to PSUs granted in 2021 vested in Q1 2022, with a grant-date fair value of $8.8 million, $6.9 million, and $4.2 million for the years ended December 31, 2022, 2021, and 2020, respectively[312]. Market and Customer Information - The Company's top ten customers accounted for approximately 76%, 78%, and 62% of revenues in 2022, 2021, and 2020, respectively[320]. - Sales to distributors in 2022, 2021, and 2020 were $457.7 million, $525.7 million, and $367.7 million, respectively[320]. - Total net revenues for the Company were $651.1 million in 2022, down from $703.3 million in 2021 and up from $488.3 million in 2020[324].

Financial Data and Key Metrics Changes - Fourth quarter revenues were $125 million, down 22% sequentially, reflecting the downturn in the semiconductor industry [18][50] - Non-GAAP gross margin was 54.7%, down about three percentage points from the prior quarter, primarily due to mix and lower production volumes [51] - Non-GAAP operating margin for the quarter was 22.5%, with non-GAAP earnings of $0.48 per diluted share [52] Business Line Data and Key Metrics Changes - Consumer category revenues, dominated by appliances, were down more than 30%, with significant weakness across all appliance subcategories [50] - Industrial category revenues fell more than 25% sequentially, primarily due to elevated channel inventories, although sell-through was only down about 10% [21][50] - Communication revenues increased sequentially by a low-teens percentage from a low prior quarter level, indicating stabilization in sell-through [29] Market Data and Key Metrics Changes - The consumer market, particularly appliances, has weakened considerably due to a softer housing market and inflation, with sell-through down about 40% year-over-year [20] - The industrial market is experiencing broad-based declines, but there is strength in home and building automation and renewable energy applications [21][22] - The company has seen combined revenue growth of more than 30% in markets like Japan and India [22] Company Strategy and Development Direction - The company aims to double its Serviceable Available Market (SAM) over the next several years by expanding its portfolio of GaN products and increasing its presence in brushless DC motors and electric vehicles [7] - The focus remains on long-term growth and profitability, with continued investment in people and products despite short-term macroeconomic challenges [49] - The company is committed to maintaining production capacity to be ready for an upturn in demand [49] Management's Comments on Operating Environment and Future Outlook - Management expects revenues to bottom in the March quarter, followed by sequential growth in the June quarter as channel inventories decline [4] - The company remains optimistic about the long-term potential in appliances and other markets, despite current short-term headwinds [5][22] - Management highlighted the importance of share gains during downturns, indicating a strategy to invest for future growth [89] Other Important Information - The company received Great Place to Work Certification, with 82% of employees stating it is a great place to work, reflecting a strong culture of innovation [11] - The Board has increased the quarterly dividend by 6%, beginning with the March payout [25][31] - The company has a strong balance sheet with $354 million in cash and investments at year-end [53] Q&A Session Summary Question: What caused the weakness in demand for the March quarter? - Management indicated that the demand weakened more than anticipated, particularly in the consumer space, which is mainly appliances [58] Question: What are the expectations for revenue and gross margin dynamics? - Management expects communication and computer segments to remain healthier, while consumer and industrial segments will see more significant declines [60] Question: How is the company managing inventory levels? - The company is maintaining higher inventory levels to prepare for a potential recovery in demand, with expectations for normalization in Q2 [63][93] Question: What areas are showing strength in the current market? - Management noted strong growth in home and building automation, high power products, and electric vehicles, although these will take time to translate into revenue [80] Question: Will automotive become a more significant revenue contributor? - Management expressed optimism about automotive growth, indicating it could become 10% of revenues in the near future [69]

Power Integrations, Inc. (NASDAQ:POWI) Q3 2022 Earnings Conference Call November 2, 2022 4:30 PM ET Company Participants Joe Shiffler – Director-Investor Relations Balu Balakrishnan – President and Chief Executive Officer Sandeep Nayyar – Chief Financial Officer Conference Call Participants Jeremy Kwan – Stifel David Williams – The Benchmark Group Melissa Weathers – Deutsche Bank Christopher Rolland – Susquehanna Gus Richard – Northland Operator Good afternoon. My name is Dittus, and I will be your conferen ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 Table of Contents 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, 2022 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) | Delawa ...

wer ations™ Power Integrations, Inc. Nasdaq: POWI Qj April 2022 ac-dc converters led drivers gate driver: Forward-Looking Statements/Non-GAAP Metrics These slides accompany an oral presentation by Power Integrations, Inc., which contains forward-looking statements. Each statement relating to events that will or may occur in the future is a forward-looking statement. The Company's actual results may differ materially from those suggested in the presentation. Information concerning factors that could cause su ...

Power Integrations, Inc. (NASDAQ:POWI) Q2 2022 Earnings Conference Call August 4, 2022 4:30 PM ET Company Participants Joe Shiffler - Director, Investor Relations & Corporate Communications Balu Balakrishnan - President and Chief Executive Officer Sandeep Nayyar - Vice President of Finance and Chief Financial Officer Conference Call Participants Christopher Rolland - Susquehanna Tore Svanberg - Stifel Ross Seymore - Deutsche Bank Matthew Ramsay - Cowen and Company David Williams - The Benchmark Company Augu ...

[PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [ITEM 1. FINANCIAL STATEMENTS](index=4&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) Presents unaudited condensed consolidated financial statements, including balance sheets, income, comprehensive income, equity, and cash flow statements, with notes on accounting policies and financial components [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Condensed Consolidated Balance Sheets (In thousands) | (In thousands) | June 30, 2022 | December 31, 2021 | | :--- | :--- | :--- | | **ASSETS** | | | | Cash and cash equivalents | $67,383 | $158,117 | | Short-term marketable securities | 260,209 | 372,235 | | Accounts receivable, net | 27,980 | 41,393 | | Inventories | 111,258 | 99,266 | | Total current assets | 481,049 | 686,815 | | Total assets | $809,004 | $1,014,487 | | **LIABILITIES AND STOCKHOLDERS' EQUITY** | | | | Total current liabilities | 70,129 | 72,321 | | Total liabilities | 98,759 | 102,455 | | Total stockholders' equity | 710,245 | 912,032 | | Total liabilities and stockholders' equity | $809,004 | $1,014,487 | - Total assets decreased from **$1,014,487 thousand** at December 31, 2021, to **$809,004 thousand** at June 30, 2022, primarily due to a significant reduction in cash and cash equivalents and short-term marketable securities[10](index=10&type=chunk) [Condensed Consolidated Statements of Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Condensed Consolidated Statements of Income (In thousands, except per share amounts) | (In thousands, except per share amounts) | Three Months Ended June 30, 2022 | Three Months Ended June 30, 2021 | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | | :--- | :--- | :--- | :--- | :--- | | NET REVENUES | $183,986 | $180,110 | $366,135 | $353,847 | | GROSS PROFIT | 106,843 | 91,313 | 207,518 | 175,724 | | INCOME FROM OPERATIONS | 60,102 | 44,976 | 111,149 | 85,162 | | NET INCOME | $55,824 | $41,881 | $102,072 | $81,679 | | EARNINGS PER SHARE: Basic | $0.97 | $0.69 | $1.75 | $1.35 | | EARNINGS PER SHARE: Diluted | $0.96 | $0.68 | $1.72 | $1.33 | - Net revenues increased by **2.15%** for the three months and **3.47%** for the six months ended June 30, 2022, year-over-year, with net income rising **33.3%** and **25.0%** respectively[11](index=11&type=chunk) [Condensed Consolidated Statements of Comprehensive Income](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) Condensed Consolidated Statements of Comprehensive Income (In thousands) | (In thousands) | Three Months Ended June 30, 2022 | Three Months Ended June 30, 2021 | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | | :--- | :--- | :--- | :--- | :--- | | Net income | $55,824 | $41,881 | $102,072 | $81,679 | | Other comprehensive income (loss), net of tax: | | | | | | Foreign currency translation adjustments | (754) | (40) | (1,023) | (58) | | Unrealized loss on marketable securities | (1,160) | (331) | (5,341) | (911) | | Amortization of defined benefit pension items | 23 | 52 | 41 | (23) | | Total other comprehensive loss | (1,891) | (319) | (6,323) | (992) | | TOTAL COMPREHENSIVE INCOME | $53,933 | $41,562 | $95,749 | $80,687 | - Total comprehensive income increased by **29.8%** for the three months and **18.7%** for the six months ended June 30, 2022, despite a significant rise in other comprehensive loss due to higher unrealized losses on marketable securities and foreign currency adjustments[14](index=14&type=chunk) [Condensed Consolidated Statements of Stockholders' Equity](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) Condensed Consolidated Statements of Stockholders' Equity (In thousands) | (In thousands) | Three Months Ended June 30, 2022 | Three Months Ended June 30, 2021 | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | | :--- | :--- | :--- | :--- | :--- | | **Common stock** | | | | | | Beginning balance | $26 | $29 | $28 | $28 | | Repurchase of common stock | (2) | (1) | (4) | (1) | | Ending balance | 24 | 28 | 24 | 28 | | **Additional paid-in capital** | | | | | | Beginning balance | 39,684 | 203,051 | 162,301 | 190,920 | | Repurchase of common stock | (43,363) | (26,373) | (178,050) | (26,373) | | Stock-based compensation | 3,679 | 9,200 | 12,692 | 17,680 | | Ending balance | — | 185,878 | — | 185,878 | | **Retained earnings** | | | | | | Beginning balance | 789,032 | 653,579 | 753,440 | 621,626 | | Net income | 55,824 | 41,881 | 102,072 | 81,679 | | Repurchase of common stock | (114,295) | — | (114,295) | — | | Payment of dividends to stockholders | (10,280) | (7,867) | (20,936) | (15,712) | | Ending balance | 720,281 | 687,593 | 720,281 | 687,593 | | **Total stockholders' equity** | $710,245 | $870,344 | $710,245 | $870,344 | - Total stockholders' equity decreased significantly from **$912,032 thousand** at December 31, 2021, to **$710,245 thousand** at June 30, 2022, primarily due to **$292.3 million** in common stock repurchases and increased accumulated other comprehensive loss[10](index=10&type=chunk)[17](index=17&type=chunk)[134](index=134&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Condensed Consolidated Statements of Cash Flows (In thousands) | (In thousands) | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | | :--- | :--- | :--- | | Net cash provided by operating activities | $141,419 | $124,970 | | Net cash provided by (used in) investing activities | 78,075 | (47,929) | | Net cash used in financing activities | (310,228) | (38,434) | | NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (90,734) | 38,607 | | CASH AND CASH EQUIVALENTS AT END OF PERIOD | $67,383 | $297,481 | - Cash and cash equivalents decreased by **$90.7 million** in the six months ended June 30, 2022, primarily due to **$310.2 million** cash usage in financing activities, largely for common stock repurchases, despite strong operating cash flow of **$141.4 million** and positive investing cash flow of **$78.1 million**[19](index=19&type=chunk)[134](index=134&type=chunk) [Notes to Unaudited Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) [1. BASIS OF PRESENTATION](index=10&type=section&id=1.%20BAS

Company Overview and Technology - Power Integrations is a technology leader in ICs for energy-efficient AC-DC power supplies, LED lighting, renewable energy, and motor drivers[6] - The company's technology focuses on integrating systems and semiconductor know-how to create ultra-simple, highly energy-efficient power converters with fewer components and shorter design cycles[9] - Gallium-nitride (GaN) technology expands dollar content and increases efficiency[10] - InnoSwitch™ technology integrates primary and secondary sides of power supply across safety barrier, reducing component count and complexity[17] Market and Growth Drivers - The company addresses a total addressable market (SAM) of over $4 billion[25] - Long-term secular growth drivers include the transition to integrated power supplies, reduced carbon emissions, GaN technology, and expanding high-voltage market opportunities[10] - EcoSmart™ technology saves the equivalent of about 1.9 million homes' electricity usage each year by reducing standby consumption in electronics and appliances[10] - The company's products have saved over 6.5 million tons of CO2 emissions[73] Financial Performance - The company targets low-double-digit revenue growth and grew 44% in 2021[51] - The company achieved a non-GAAP gross margin of 52% and a non-GAAP operating margin of 31% in 2021[51] - The company has a strong balance sheet with $444 million in cash and investments as of March 31, 2022[63] - The dividend increased 20% to $0.18 in Q1 2022[63]