Power Integrations(POWI) - 2024 Q3 - Quarterly Results

Revenue and Growth - Q3 2024 revenues were $115.8 million, up 9% from the prior quarter but down 8% year-over-year[1] - The company expects Q4 2024 revenues to be $105 million ± $5 million, with double-digit year-over-year growth[3] - Q3 2024 revenue mix by end market: Communications 12%, Computer 14%, Consumer 38%, Industrial 36%[15] Net Income and Earnings Per Share - GAAP net income for Q3 2024 was $14.3 million, or $0.25 per diluted share, compared to $0.34 per diluted share in Q3 2023[1] - Non-GAAP net income for Q3 2024 was $22.6 million, or $0.40 per diluted share, compared to $0.46 per diluted share in Q3 2023[2] - Non-GAAP net income for Q3 2024 was $22,616 thousand, a decrease from $26,603 thousand in Q3 2023[21] - Non-GAAP net income per share (diluted) for Q3 2024 was $0.40, compared to $0.46 in Q3 2023[21] - Net income for the three months ended September 30, 2024 was $14.291 million, compared to $19.796 million for the same period in 2023[23] Gross Margin - GAAP gross margin for Q4 2024 is expected to be between 54% and 54.5%, while non-GAAP gross margin is expected to be between 55% and 55.5%[6] - Q3 2024 GAAP gross margin was 54.5%, while non-GAAP gross margin was 55.1%[16] Operating Expenses and Income - GAAP operating expenses for Q3 2024 were $51,589 thousand, compared to $48,233 thousand in Q3 2023, representing a 7% increase[18] - Non-GAAP income from operations for Q3 2024 was $20,067 thousand, with a non-GAAP operating margin of 17.3%, compared to $25,099 thousand and 20.0% in Q3 2023[19] Cash Flow and Liquidity - Q3 2024 cash flow from operations was $32.9 million[1] - Net cash provided by operating activities for the nine months ended September 30, 2024 was $66.455 million, up from $49.492 million in the same period in 2023[23] - Cash and cash equivalents increased to $58,469 thousand as of September 30, 2024, from $50,493 thousand as of June 30, 2024[22] - Cash and cash equivalents at the end of the period September 30, 2024 were $58.469 million, compared to $94.743 million at the end of the same period in 2023[23] Share Repurchase and Dividends - The board authorized a $50 million share repurchase program and increased the quarterly dividend by 5% to $0.21 per share[5] - Repurchase of common stock for the nine months ended September 30, 2024 was $25.979 million, compared to $7.834 million in the same period in 2023[23] - Payments of dividends to stockholders for the nine months ended September 30, 2024 totaled $34.100 million, up from $32.665 million in the same period in 2023[23] Assets and Liabilities - Total current assets as of September 30, 2024, were $507,886 thousand, slightly higher than $499,836 thousand as of June 30, 2024[22] - Total liabilities as of September 30, 2024, were $75,778 thousand, up from $74,018 thousand as of June 30, 2024[22] - Retained earnings as of September 30, 2024, were $736,836 thousand, compared to $733,909 thousand as of June 30, 2024[22] - Total stockholders' equity increased to $749,213 thousand as of September 30, 2024, from $730,742 thousand as of June 30, 2024[22] Marketable Securities - Purchases of marketable securities for the nine months ended September 30, 2024 totaled $97.581 million, compared to $173.015 million in the same period in 2023[23] - Proceeds from sales and maturities of marketable securities for the nine months ended September 30, 2024 were $103.806 million, down from $161.897 million in the same period in 2023[23] Tax Rate - GAAP effective tax rate for Q3 2024 was 0.3%, significantly lower than the 5.1% in Q3 2023[20] Technology and Innovation - PowiGaN™ technology introduced the world's first 1700-volt gallium-nitride transistors in the InnoMux™-2 product family[4]