Power Integrations(POWI) - 2024 Q4 - Annual Results

Financial Performance - Fourth-quarter revenues increased 18% year-over-year to $105.2 million, but decreased 9% from the prior quarter[1] - GAAP net income for the fourth quarter was $9.1 million, or $0.16 per diluted share, down from $0.25 per diluted share in the prior quarter[1][2] - Non-GAAP net income for the fourth quarter was $17.2 million, or $0.30 per diluted share, compared to $0.40 per diluted share in the prior quarter[2] - Full-year net revenues were $419.0 million, down from $444.5 million in the prior year[3] - Full-year GAAP net income was $32.2 million, or $0.56 per diluted share, compared to $0.97 per diluted share in the prior year[3] Future Outlook - The company expects another double-digit revenue increase in the first quarter of 2025 despite a cloudy demand outlook[4] - Revenues for the first quarter of 2025 are expected to be flat compared to the fourth quarter of 2024, plus or minus 5%[9] - GAAP gross margin for the first quarter of 2025 is expected to be between 55% and 55.5%[9] Cash Flow and Dividends - Cash flow from operations for the fourth quarter was $14.7 million, and for the full year was $81.2 million[1][3] - The company plans to maintain a dividend of $0.21 per share, with the next payment scheduled for March 31, 2025[5] Gross Profit and Margins - GAAP gross profit for Q4 2024 was $57,267,000, up from $46,208,000 in Q4 2023, representing a 23.5% increase[14] - Non-GAAP gross profit for Q4 2024 was $57,955,000, compared to $47,189,000 in Q4 2023, reflecting a 22.7% growth[14] - Non-GAAP operating margin for Q4 2024 was 12.7%, down from 17.3% in Q3 2024[14] Year-End Financial Position - Total current assets as of December 31, 2024, were $514,039,000, slightly up from $511,600,000 a year earlier[18] - Cash and cash equivalents decreased to $50,972,000 from $63,929,000 year-over-year, a decline of 20.3%[18] - Total liabilities increased to $79,054,000 as of December 31, 2024, compared to $67,627,000 in the previous year, marking a 16.9% rise[18] Comparative Performance - GAAP net income for Q4 2024 was $9,140,000, a decrease from $14,271,000 in Q4 2023, indicating a 35.5% decline[16] - Non-GAAP net income for Q4 2024 was $17,210,000, up from $12,700,000 in Q4 2023, showing a 35.5% increase[16] - The company reported a net cash provided by operating activities of $14,726,000 for Q4 2024, compared to $16,267,000 in Q4 2023[20] - The average shares outstanding for diluted non-GAAP net income per share was 57,097,000 for Q4 2024, compared to 57,272,000 in Q4 2023[16]