Monolithic Power Systems Earnings Commentary for the Quarter Ended March 31, 2025

Core Insights - MPS reported record quarterly revenue of $637.6 million for Q1 2025, reflecting a 39.2% increase year-over-year and a 2.6% increase quarter-over-quarter [4][7][19] - The company continues to focus on innovation and expanding into new markets, aiming to capture future growth opportunities [5][6] Financial Performance - Q1 2025 GAAP net income was $133.8 million, a significant decrease of 90.8% from the previous quarter, while non-GAAP net income was $193.8 million, down 2.3% from Q4 2024 [19][21] - Diluted EPS for Q1 2025 was $2.79 (GAAP) and $4.04 (non-GAAP), with the latter showing a 43.8% increase year-over-year [19][30] Revenue Breakdown by End Market - Storage & Computing revenue reached $188.5 million, up 77.7% year-over-year and 38.1% quarter-over-quarter, representing 29.6% of total revenue [3][8] - Automotive revenue was $144.9 million, reflecting a 66.4% year-over-year increase and a 12.9% increase from Q4 2024 [3][9] - Communications revenue increased to $71.8 million, up 53.7% year-over-year [3][10] - Industrial revenue was $42.6 million, up 41.1% year-over-year [3][11] - Consumer revenue decreased slightly to $56.9 million, but still showed a 49.3% increase year-over-year [3][12] - Enterprise Data revenue fell to $132.9 million, down 11.2% year-over-year [3][13] Operating Metrics - GAAP gross margin for Q1 2025 was 55.4%, unchanged from Q4 2024, while non-GAAP gross margin was 55.7%, down 0.1 percentage points [14][16] - Operating expenses increased to $184.5 million (GAAP) and $133.5 million (non-GAAP), reflecting a 1.9% and 5.9% increase quarter-over-quarter, respectively [17][21] Cash Flow and Balance Sheet - Cash, cash equivalents, and short-term investments totaled $1,026.7 million at the end of Q1 2025, up from $862.9 million at the end of Q4 2024 [21][24] - Operating cash flow for Q1 2025 was $256.4 million, compared to $167.7 million in Q4 2024 [21][24] Q2 2025 Outlook - MPS forecasts revenue in the range of $640 million to $660 million for Q2 2025, with GAAP gross margin expected between 54.9% and 55.5% [26][25]