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Oct 25, 2018

Monolithic Power Systems Announces Results for the Third Quarter Ended September 30, 2018

KIRKLAND, Wash., Oct. 25, 2018 (GLOBE NEWSWIRE) -- Monolithic Power Systems, Inc. (MPS) (Nasdaq: MPWR), a leading company in high performance analog solutions, today announced financial results for the quarter ended September 30, 2018.

The results for the quarter ended September 30, 2018 are as follows:

  • Revenue was $160.0 million for the quarter ended September 30, 2018, a 14.5% increase from $139.8 million for the quarter ended June 30, 2018 and a 24.1% increase from $128.9 million for the quarter ended September 30, 2017.
  • GAAP gross margin was 55.6% for the quarter ended September 30, 2018, compared with 55.0% for the quarter ended September 30, 2017.
  • Non-GAAP (1) gross margin was 56.1% for the quarter ended September 30, 2018, excluding the impact of $0.5 million for stock-based compensation expense and $0.2 million for the amortization of acquisition-related intangible assets, compared with 55.7% for the quarter ended September 30, 2017, excluding the impact of $0.5 million for stock-based compensation expense and $0.5 million for the amortization of acquisition-related intangible assets.
  • GAAP operating expenses were $55.5 million for the quarter ended September 30, 2018, compared with $47.0 million for the quarter ended September 30, 2017.
  • Non-GAAP (1) operating expenses were $40.5 million for the quarter ended September 30, 2018, excluding $14.4 million for stock-based compensation expense and $0.7 million for deferred compensation plan expense, compared with $32.9 million for the quarter ended September 30, 2017, excluding $13.5 million for stock-based compensation expense and $0.6 million for deferred compensation plan expense.
  • GAAP operating income was $33.5 million for the quarter ended September 30, 2018, compared with $23.8 million for the quarter ended September 30, 2017.
  • Non-GAAP (1) operating income was $49.2 million for the quarter ended September 30, 2018, excluding $14.8 million for stock-based compensation expense, $0.2 million for the amortization of acquisition-related intangible assets and $0.7 million for deferred compensation plan expense, compared with $38.9 million for the quarter ended September 30, 2017, excluding $14.0 million for stock-based compensation expense, $0.5 million for the amortization of acquisition-related intangible assets and $0.6 million for deferred compensation plan expense.
  • GAAP interest and other income, net was $2.7 million for the quarter ended September 30, 2018, compared with $1.3 million for the quarter ended September 30, 2017.
  • Non-GAAP (1) interest and other income, net was $2.0 million for the quarter ended September 30, 2018, excluding $0.7 million for deferred compensation plan income, compared with $0.6 million for the quarter ended September 30, 2017, excluding $0.6 million for deferred compensation plan income.

  • GAAP income before income taxes was $36.2 million for the quarter ended September 30, 2018, compared with $25.1 million for the quarter ended September 30, 2017.

  • Non-GAAP (1) income before income taxes was $51.2 million for the quarter ended September 30, 2018, excluding $14.8 million for stock-based compensation expense, $0.2 million for the amortization of acquisition-related intangible assets and $0.1 million for deferred compensation plan income, compared with $39.5 million for the quarter ended September 30, 2017, excluding $14.0 million for stock-based compensation expense, $0.5 million for the amortization of acquisition-related intangible assets, and $0.1 million for deferred compensation plan income.

  • GAAP net income was $31.6 million and GAAP earnings per share were $0.71 per diluted share for the quarter ended September 30, 2018. Comparatively, GAAP net income was $23.6 million and GAAP earnings per share were $0.54 per diluted share for the quarter ended September 30, 2017.
  • Non-GAAP (1) net income was $47.3 million and non-GAAP earnings per share were $1.06 per diluted share for the quarter ended September 30, 2018, excluding stock-based compensation expense, amortization of acquisition-related intangible assets, net deferred compensation plan income and related tax effects, compared with non-GAAP net income of $36.6 million and non-GAAP earnings per share of $0.84 per diluted share for the quarter ended September 30, 2017, excluding stock-based compensation income, amortization of acquisition-related intangible assets, net deferred compensation plan income and related tax effects.

The results for the nine months ended September 30, 2018 are as follows:

  • Revenue was $428.9 million for the nine months ended September 30, 2018, a 25.6% increase from $341.5 million for the nine months ended September 30, 2017.
  • GAAP gross margin was 55.5% for the nine months ended September 30, 2018, compared with 54.8% for the nine months ended September 30, 2017.
  • Non-GAAP (1) gross margin was 56.0% for the nine months ended September 30, 2018, excluding the impact of $1.4 million for stock-based compensation expense and $0.6 million for the amortization of acquisition-related intangible assets, compared with 55.6% for the nine months ended September 30, 2017, excluding the impact of $1.3 million for stock-based compensation expense and $1.5 million for the amortization of acquisition-related intangible assets.
  • GAAP operating expenses were $157.7 million for the nine months ended September 30, 2018, compared with $134.8 million for the nine months ended September 30, 2017.
  • Non-GAAP (1) operating expenses were $112.4 million for the nine months ended September 30, 2018, excluding $44.4 million for stock-based compensation expense and $0.9 million for deferred compensation plan expense, compared with $93.3 million for the nine months ended September 30, 2017, excluding $39.5 million for stock-based compensation expense and $2.0 million for deferred compensation plan expense.
  • GAAP operating income was $80.4 million for the nine months ended September 30, 2018, compared with $52.4 million for the nine months ended September 30, 2017.
  • Non-GAAP (1) operating income was $127.7 million for the nine months ended September 30, 2018, excluding $45.8 million for stock-based compensation expense, $0.6 million for the amortization of acquisition-related intangible assets and $0.9 million for deferred compensation plan expense, compared with $96.7 million for the nine months ended September 30, 2017, excluding $40.8 million for stock-based compensation expense, $1.5 million for the amortization of acquisition-related intangible assets and $2.0 million for deferred compensation plan expense.
  • GAAP interest and other income, net was $5.4 million for the nine months ended September 30, 2018, compared with $3.9 million for the nine months ended September 30, 2017.
  • Non-GAAP (1) interest and other income, net was $4.4 million for the nine months ended September 30, 2018, excluding $0.9 million for deferred compensation plan income, compared with $2.0 million for the nine months ended September 30, 2017, excluding $1.9 million for deferred compensation plan income.

  • GAAP income before income taxes was $85.8 million for the nine months ended September 30, 2018, compared with $56.2 million for the nine months ended September 30, 2017.

  • Non-GAAP (1) income before income taxes was $132.2 million for the nine months ended September 30, 2018, excluding $45.8 million for stock-based compensation expense and $0.6 million for the amortization of acquisition-related intangible assets, compared with $98.6 million for the nine months ended September 30, 2017, excluding $40.8 million for stock-based compensation expense, $1.5 million for the amortization of acquisition-related intangible assets, and $0.1 million for deferred compensation plan expense.

  • GAAP net income was $77.6 million and GAAP earnings per share were $1.75 per diluted share for the nine months ended September 30, 2018. Comparatively, GAAP net income was $53.1 million and GAAP earnings per share were $1.22 per diluted share for the nine months ended September 30, 2017.
  • Non-GAAP (1) net income was $122.3 million and non-GAAP earnings per share were $2.75 per diluted share for the nine months ended September 30, 2018, excluding stock-based compensation expense, amortization of acquisition-related intangible assets, net deferred compensation plan income and related tax effects, compared with non-GAAP net income of $91.2 million and non-GAAP earnings per share of $2.10 per diluted share for the nine months ended September 30, 2017, excluding stock-based compensation income, amortization of acquisition-related intangible assets, net deferred compensation plan expense and related tax effects.

The following is a summary of revenue by end market for the periods indicated (in thousands):

    Three Months Ended September 30,   Nine Months Ended September 30,
End Market   2018   2017   2018   2017
Computing and storage   $   47,658   $   29,020   $   115,584   $   74,103
Automotive     19,785     12,857     57,857     38,042
Industrial     24,869     16,348     61,544     46,736
Communications     19,158     15,372     50,442     47,748
Consumer     48,505     55,342     143,458     134,870
Total   $   159,975   $   128,939   $   428,885   $   341,499
                 

The following is a summary of revenue by product family for the periods indicated (in thousands):

      Three Months Ended September 30,   Nine Months Ended September 30,
Product Family     2018   2017   2018   2017
DC to DC      $   147,727   $   119,089   $   394,492   $   312,700
Lighting Control        12,248     9,850     34,393     28,799
Total      $   159,975   $   128,939   $   428,885   $   341,499

“As expected, we continued to execute according to our plan of diversification in both products and geographical markets.  We grew in Greenfield segments, while gaining share in high value products in consumer and communications amongst the uncertainty in the market and geopolitical environment," said Michael Hsing, CEO and founder of MPS.

Business Outlook

The following are MPS’ financial targets for the fourth quarter ending December 31, 2018:

  • Revenue in the range of $151 million to $157 million.
  • GAAP gross margin between 55.2% and 56.2%. Non-GAAP (1) gross margin between 55.6% and 56.6%, which excludes an estimated impact of stock-based compensation expenses of 0.3% and amortization of acquisition-related intangible assets of 0.1%.
  • GAAP research and development (“R&D”) and selling, general and administrative (“SG&A”) expenses between $50.6 million and $55.6 million. Non-GAAP (1) R&D and SG&A expenses between $37.6 million and $40.6 million, which excludes an estimate of stock-based compensation expenses in the range of $13 million to $15 million.
  • Total stock-based compensation expense of $13.5 million to $15.5 million.
  • Interest and other income, net, of $1 million to $1.2 million before foreign exchange gains or losses.
  • Fully diluted shares outstanding between 44.6 million and 45.6 million.

(1) Non-GAAP net income, non-GAAP earnings per share, non-GAAP gross margin, non-GAAP R&D and SG&A expenses, non-GAAP operating expenses, non-GAAP interest and other income, net, non-GAAP operating income and non-GAAP income before taxes differ from net income, earnings per share, gross margin, R&D and SG&A expenses, operating expenses, interest and other income, net, operating income and income before taxes determined in accordance with Generally Accepted Accounting Principles in the United States (GAAP). Non-GAAP net income and non-GAAP earnings per share exclude the effect of stock-based compensation expense, amortization of acquisition-related intangible assets, deferred compensation plan income/expense and related tax effects. Non-GAAP gross margin excludes the effect of stock-based compensation expense and amortization of acquisition-related intangible assets. Non-GAAP operating expenses exclude the effect of stock-based compensation expense and deferred compensation plan income/expense. Non-GAAP interest and other income, net excludes the effect of deferred compensation plan income/expense. Non-GAAP operating income excludes the effect of stock-based compensation expense, amortization of acquisition-related intangible assets and deferred compensation plan income/expense. Non-GAAP income before taxes excludes the effect of stock-based compensation expense, amortization of acquisition-related intangible assets and deferred compensation plan income/expense. Projected non-GAAP gross margin excludes the effect of stock-based compensation expense and amortization of acquisition-related intangible assets. Projected non-GAAP R&D and SG&A expenses exclude the effect of stock-based compensation expense. These non-GAAP financial measures are not prepared in accordance with GAAP and should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. A schedule reconciling non-GAAP financial measures is included at the end of this press release. MPS utilizes both GAAP and non-GAAP financial measures to assess what it believes to be its core operating performance and to evaluate and manage its internal business and assist in making financial operating decisions. MPS believes that the inclusion of non-GAAP financial measures, together with GAAP measures, provides investors with an alternative presentation useful to investors' understanding of MPS' core operating results and trends. Additionally, MPS believes that the inclusion of non-GAAP measures, together with GAAP measures, provides investors with an additional dimension of comparability to similar companies. However, investors should be aware that non-GAAP financial measures utilized by other companies are not likely to be comparable in most cases to the non-GAAP financial measures used by MPS.

Conference Call
MPS plans to conduct an investor teleconference covering its financial results at 3:00 p.m. PT / 6:00 p.m. ET, October 25, 2018. To access the conference call and the following replay of the conference call, go to http://ir.monolithicpower.com and click on the webcast link. From this site, you can listen to the teleconference, assuming that your computer system is configured properly. In addition to the webcast replay, which will be archived for all investors for one year on the MPS website, a phone replay will be available for seven days after the live call at (404) 537-3406, code number 1784676. This press release and any other information related to the call will also be posted on the website.

Safe Harbor Statement
This press release contains, and statements that will be made during the accompanying teleconference will contain, forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995, including, among other things, (i) projected revenues, GAAP and non-GAAP gross margin, GAAP and non-GAAP R&D and SG&A expenses, stock-based compensation expenses, amortization of acquisition-related intangible assets, interest and other income, and diluted shares outstanding, (ii) our outlook for the long-term prospects of the company, including our performance against our business plan, revenue growth in certain of our market segments, our continued investment into R&D, expected revenue growth, customers' acceptance of our new product offerings, the prospects of our new product development, and our expectations regarding market and industry segment trends and prospects, (iii) our ability to penetrate new markets and expand our market share, (iv) the seasonality of our business, (v) our ability to reduce our expenses, (vi) the impact of the 2017 Tax Act on our tax rate and provision; and (vii) statements of the assumptions underlying or relating to any statement described in (i), (ii), (iii), (iv), (v), or (vi). These forward-looking statements are not historical facts or guarantees of future performance or events, are based on current expectations, estimates, beliefs, assumptions, goals, and objectives, and involve significant known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from the results expressed by these statements. Readers of this press release and listeners to the accompanying conference call are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date hereof. Factors that could cause actual results to differ include, but are not limited to, our ability to attract new customers and retain existing customers; acceptance of, or demand for, MPS' products, in particular the new products launched recently, being different than expected; our ability to efficiently and effectively develop new products and receive a return on our R&D expense investment; competition generally and the increasingly competitive nature of our industry; any market disruptions or interruptions in MPS' schedule of new product development releases; adverse changes in production and testing efficiency of our products; our ability to realize the anticipated benefits of companies and products that we acquire, and our ability to effectively and efficiently integrate these acquired companies and products into our operations; our ability to manage our inventory levels; adverse changes in laws and government regulations, including in foreign countries where MPS has offices or operations; adverse events arising from orders of governmental entities, including such orders that impact our customers, and adopting of new or amended accounting standards; the effects of tariffs or other trade restrictions between the United States and China; the effect of catastrophic events; adequate supply of our products from our third-party manufacturing partners; the risks, uncertainties and costs of litigation in which we are involved; the outcome of any upcoming trials, hearings, motions and appeals; the adverse impact on MPS' financial performance if its tax and litigation provisions are inadequate; adverse changes or developments in the semiconductor industry generally, which is cyclical in nature; difficulty in predicting or budgeting for future customer demand and channel inventories, expenses and financial contingencies; the ongoing consolidation of companies in the semiconductor industry; and other important risk factors identified in MPS' Securities and Exchange Commission (SEC) filings, including, but not limited to, our annual report on Form 10-K filed with the SEC on March 1, 2018 and our quarterly report on Form 10-Q filed with the SEC on August 2, 2018. The forward-looking statements in this press release and statements made during the accompanying teleconference represent MPS' projections and current expectations, as of the date hereof, not predictions of actual performance. MPS assumes no obligation to update the information in this press release or in the accompanying conference call.

About Monolithic Power Systems
Monolithic Power Systems, Inc. (MPS) provides small, highly energy efficient, easy-to-use power solutions for systems found in industrial applications, telecom infrastructures, cloud computing, automotive, and consumer applications. MPS' mission is to reduce total energy consumption in its customers' systems with green, practical, compact solutions. The company was founded by Michael Hsing in 1997 and is based in the United States. MPS can be contacted through its website at www.monolithicpower.com or its support offices around the world.

Monolithic Power Systems, MPS, and the MPS logo are registered trademarks of Monolithic Power Systems, Inc. in the U.S. and trademarked in certain other countries.

Contact:
Bernie Blegen
Chief Financial Officer
Monolithic Power Systems, Inc.
408-826-0777
investors@monolithicpower.com


Monolithic Power Systems, Inc.
Condensed Consolidated Balance Sheets
(Unaudited, in thousands, except par value)

  September 30,   December 31,
  2018   2017
ASSETS      
Current assets:      
Cash and cash equivalents $   131,094   $   82,759
Short-term investments   216,754     216,331
Accounts receivable   59,887     38,037
Inventories   136,790     99,281
Other current assets   12,876     12,762
Total current assets   557,401     449,170
Property and equipment, net   147,497     144,636
Long-term investments   5,257     5,256
Goodwill   6,571     6,571
Acquisition-related intangible assets, net   308     951
Deferred tax assets, net   12,852     15,917
Other long-term assets   33,271     30,068
Total assets $   763,157   $   652,569
       
LIABILITIES AND STOCKHOLDERS’ EQUITY      
Current liabilities:      
Accounts payable $   27,603   $   22,813
Accrued compensation and related benefits   22,996     15,597
Accrued liabilities   34,908     27,507
Total current liabilities   85,507     65,917
Income tax liabilities   31,173     31,621
Other long-term liabilities   36,313     33,024
  Total liabilities   152,993     130,562
Commitments and contingencies       
Stockholders' equity:      
Common stock and additional paid-in capital, $0.001 par value; shares authorized:       
150,000; shares issued and outstanding: 42,408 and 41,614, respectively   435,085     376,586
Retained earnings    180,819     143,608
Accumulated other comprehensive income (loss)   (5,740)     1,813
Total stockholders’ equity   610,164     522,007
Total liabilities and stockholders’ equity $   763,157   $   652,569


Monolithic Power Systems, Inc.
Condensed Consolidated Statements of Operations
(Unaudited, in thousands, except per share amounts) 

               
  Three Months Ended September 30,   Nine Months Ended September 30,
  2018   2017   2018   2017
Revenue  $   159,975   $   128,939   $   428,885   $   341,499
Cost of revenue    70,957     58,083     190,810     154,377
Gross profit    89,018     70,856     238,075     187,122
Operating expenses:              
Research and development    25,630     21,442     70,720     60,629
Selling, general and administrative    29,552     25,255     85,431     73,219
Litigation expense    343     327     1,513     903
Total operating expenses    55,525     47,024     157,664     134,751
Income from operations    33,493     23,832     80,411     52,371
Interest and other income, net   2,714     1,255     5,387     3,873
Income before income taxes    36,207     25,087     85,798     56,244
Income tax provision    4,639     1,445     8,168     3,112
Net income  $   31,568   $   23,642   $   77,630   $   53,132
               
Net income per share:              
Basic $   0.75   $   0.57   $   1.84   $   1.29
Diluted $   0.71   $   0.54   $   1.75   $   1.22
Weighted-average shares outstanding:              
Basic   42,362     41,458     42,173     41,276
Diluted   44,669     43,486     44,450     43,384
               
Cash dividends declared per common share $   0.30   $   0.20   $   0.90   $   0.60
               
               
SUPPLEMENTAL FINANCIAL INFORMATION 
STOCK-BASED COMPENSATION EXPENSE
(Unaudited, in thousands)
  Three Months Ended September 30,   Nine Months Ended September 30,
  2018   2017   2018   2017
Cost of revenue $   471   $   453   $   1,384   $   1,264
Research and development   3,979     3,838     12,168     11,297
Selling, general and administrative   10,393     9,678     32,213     28,198
Total stock-based compensation expense $   14,843   $   13,969   $   45,765   $   40,759
               
               
RECONCILIATION OF NET INCOME TO NON-GAAP NET INCOME
(Unaudited, in thousands, except per share amounts)
  Three Months Ended September 30,   Nine Months Ended September 30,
  2018   2017   2018   2017
Net income $   31,568   $   23,642   $   77,630   $   53,132
Net income as a percentage of revenue 19.7%   18.3%   18.1%   15.6%
               
Adjustments to reconcile net income to non-GAAP net income:                
Stock-based compensation expense   14,843     13,969     45,765     40,759
Amortization of acquisition-related intangible assets   197     513     644     1,538
Deferred compensation plan (income) expense   (66)     (50)     (26)     90
Tax effect   800     (1,519)     (1,746)     (4,285)
Non-GAAP net income $   47,342   $   36,555   $   122,267   $   91,234
Non-GAAP net income as a percentage of revenue 29.6%   28.4%   28.5%   26.7%
               
Non-GAAP net income per share:              
Basic $   1.12   $   0.88   $   2.90   $   2.21
Diluted $   1.06   $   0.84   $   2.75   $   2.10
               
Shares used in the calculation of non-GAAP net income per share:                
Basic   42,362     41,458     42,173     41,276
Diluted   44,669     43,486     44,450     43,384
               
               
RECONCILIATION OF GROSS MARGIN TO NON-GAAP GROSS MARGIN
(Unaudited, in thousands)
  Three Months Ended September 30,   Nine Months Ended September 30,
  2018   2017   2018   2017
Gross profit $   89,018   $   70,856   $   238,075   $   187,122
Gross margin 55.6%   55.0%   55.5%   54.8%
               
Adjustments to reconcile gross profit to non-GAAP gross profit:            
Stock-based compensation expense   471     453     1,384     1,264
Amortization of acquisition-related intangible assets   197     513     644     1,538
Non-GAAP gross profit $   89,686   $   71,822   $   240,103   $   189,924
Non-GAAP gross margin 56.1%   55.7%   56.0%   55.6%
               
               
RECONCILIATION OF OPERATING EXPENSES TO NON-GAAP OPERATING EXPENSES
(Unaudited, in thousands)
  Three Months Ended September 30,   Nine Months Ended September 30,
  2018   2017   2018   2017
Total operating expenses $   55,525   $   47,024   $   157,664   $   134,751
               
Adjustments to reconcile total operating expenses to non-GAAP total operating expenses:        
Stock-based compensation expense   (14,372)     (13,516)     (44,381)     (39,495)
Deferred compensation plan expense   (650)     (585)     (923)     (1,992)
Non-GAAP operating expenses $   40,503   $   32,923   $   112,360   $   93,264
               
               
RECONCILIATION OF OPERATING INCOME TO NON-GAAP OPERATING INCOME
(Unaudited, in thousands)
  Three Months Ended September 30,   Nine Months Ended September 30,
  2018   2017   2018   2017
Total operating income $   33,493   $   23,832   $   80,411   $   52,371
Operating income as a percentage of revenue 20.9%   18.5%   18.7%   15.3%
               
Adjustments to reconcile total operating income to non-GAAP total operating income:        
Stock-based compensation expense   14,843     13,969     45,765     40,759
Amortization of acquisition-related intangible assets   197     513     644     1,538
Deferred compensation plan expense    650     585     923     1,992
Non-GAAP operating income $   49,183   $   38,899   $   127,743   $   96,660
Non-GAAP operating income as a percentage of revenue 30.7%   30.2%   29.8%   28.3%
               
               
RECONCILIATION OF INTEREST AND OTHER INCOME, NET, TO NON-GAAP INTEREST AND OTHER INCOME, NET
(Unaudited, in thousands)
  Three Months Ended September 30,   Nine Months Ended September 30,
  2018   2017   2018   2017
Total interest and other income, net $   2,714   $   1,255   $   5,387   $   3,873
               
Adjustments to reconcile interest and other income to non-GAAP interest and other income:        
Deferred compensation plan income   (716)     (635)     (949)     (1,902)
Non-GAAP interest and other income, net $   1,998   $   620   $   4,438   $   1,971
               
               
RECONCILIATION OF INCOME BEFORE INCOME TAXES TO NON-GAAP INCOME BEFORE INCOME TAXES
(Unaudited, in thousands)
  Three Months Ended September 30,   Nine Months Ended September 30,
  2018   2017   2018   2017
Total income before income taxes $   36,207   $   25,087   $   85,798   $   56,244
               
Adjustments to reconcile income before income taxes to non-GAAP income before income taxes:        
Stock-based compensation expense   14,843     13,969     45,765     40,759
Amortization of acquisition-related intangible assets   197     513     644     1,538
Deferred compensation plan (income) expense    (66)     (50)     (26)     90
Non-GAAP income before income taxes $   51,181   $   39,519   $   132,181   $   98,631


 
2018 FOURTH QUARTER OUTLOOK
RECONCILIATION OF GROSS MARGIN TO NON-GAAP GROSS MARGIN
(Unaudited)
  Three Months Ending 
  December 31, 2018
  Low   High
Gross margin 55.2%   56.2%
Adjustments to reconcile gross margin to non-GAAP gross margin:      
Stock-based compensation expense  0.3%   0.3%
Amortization of acquisition-related intangible assets 0.1%   0.1%
Non-GAAP gross margin 55.6%   56.6%
       
       
RECONCILIATION OF R&D AND SG&A EXPENSES TO NON-GAAP R&D AND SG&A EXPENSES
(Unaudited, in thousands)
  Three Months Ending 
  December 31, 2018
  Low   High
R&D and SG&A expense $   50,600   $   55,600
Adjustments to reconcile R&D and SG&A expense to non-GAAP R&D and SG&A expense:      
Stock-based compensation expense   (13,000)     (15,000)
Non-GAAP R&D and SG&A expense $   37,600   $   40,600

 

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Source: Monolithic Power Systems, Inc.