Power Integrations(US:POWI)2023-02-07 21:37Financial 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].