Power Integrations(POWI) - 2022 Q2 - Quarterly Report

PART I. FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS 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 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] Condensed Consolidated Statements of Income 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] Condensed Consolidated Statements of Comprehensive Income 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] Condensed Consolidated Statements of Stockholders' Equity 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][17][134] Condensed Consolidated Statements of Cash Flows 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][134] Notes to Unaudited Condensed Consolidated Financial Statements [1. BASIS OF PRESENTATION](index=10&type=section&id=1.%20BAS