SAN JOSE, Calif., July 31 /PRNewswire-FirstCall/ -- Monolithic Power Systems (MPS) (Nasdaq: MPWR), a leading fabless manufacturer of high-performance analog and mixed-signal semiconductors, today announced financial results for the three and six months ended June 30, 2008.
The results for the quarter ended June 30, 2008 are as follows:
The results for the six months ended June 30, 2008 are as follows:
"MPS set an all-time record for revenue in the second quarter," said Michael Hsing, chief executive officer and founder of MPS, "and we are pleased with the continued success of the execution of our strategies."
The following are MPS' financial targets for the third quarter ending September 30, 2008:
(1) Non-GAAP net income, non-GAAP operating expenses and non-GAAP research and development and selling, general and administrative expense differ from net income, operating expenses, and research and development and selling, general and administrative expense determined in accordance with GAAP (Generally Accepted Accounting Principles in the United States). Non-GAAP net income for the quarter and six months ended June 30, 2008 and 2007 excludes the effect of stock-based compensation expense and a patent litigation settlement amount and their related tax effects, and includes a reversal of the lease write-off that was recorded previously. Non- GAAP operating expenses for the quarter and six months ended June 30, 2008 and 2007 exclude the effect of stock-based compensation expense and a patent litigation settlement amount, and include a reversal of the lease write-off that was recorded previously. Projected non-GAAP research and development and selling, general and administrative expenses exclude the effect of stock-based compensation expense and related tax effects. A schedule reconciling these amounts is included in this news release. Non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. 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 financials measures used by MPS.
MPS plans to conduct a management teleconference covering its second quarter and first half 2008 results at 2:00 p.m. PT / 5:00 p.m. ET today, July 31, 2008. To access the conference call and following replay, go to http://ir.monolithicpower.com and click 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 617-801-6888, code number 48865373. 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 forward-looking statements regarding targeted revenues, gross margin, GAAP and non-GAAP research and development and selling, general and administrative expenses, stock-based compensation expense and litigation expense for the three months ending September 30, 2008. These 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 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. Factors that could cause actual results to differ include, but are not limited to, the risks, uncertainties and costs of litigation in which the company is involved; the outcome of any upcoming trials, hearings, motions, and appeals; any market disruptions or interruptions in MPS' schedule of new product release development; adverse changes in production and testing efficiency; adverse changes in government regulations in foreign countries where MPS has offices; acceptance of, or demand for, MPS' products being lower than expected; the adverse impact on MPS' financial performance if its tax and litigation provisions are inadequate; difficulty in predicting or budgeting for future expenses and financial contingencies; and other important risk factors identified in MPS' SEC filings, including, but not limited to, its Form 10-Q filed on May 14, 2008.
The forward-looking statements in this press release represent MPS' targets, 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, Inc.
Monolithic Power Systems, Inc. (MPS) develops and markets proprietary, advanced analog and mixed-signal semiconductors. The company combines advanced process technology with its highly experienced analog designers to produce high-performance power management integrated circuits (ICs) for DC to DC converters, LED drivers, Cold Cathode Fluorescent Lamp (CCFL) backlight controllers, Class D audio amplifiers, and Linear ICs. MPS products are used extensively in computing and network communications products, LCD monitors and TVs, and a wide variety of consumer and portable electronics products. MPS partners with world-class manufacturing organizations to deliver top quality, ultra-compact, high-performance solutions through the most productive, cost- efficient channels. Founded in 1997 and headquartered in San Jose, California, the company has expanded its global presence with sales offices in Taiwan, China, Korea, Japan, and Europe, which operate under MPS International, Ltd.
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. Consolidated Balance Sheet (Unaudited, in thousands, except par value) June 30, December 31, 2008 2007 ASSETS Current assets: Cash and cash equivalents $75,595 $83,114 Short-term investments 4,735 27,765 Accounts receivable, net of allowances of $0 in 2008 and $227 in 2007 13,033 8,239 Inventories 24,120 17,487 Deferred income tax asset-current 76 72 Prepaid expenses and other current assets 4,794 4,733 Restricted cash 7,360 7,350 Total current assets 129,713 148,760 Property and equipment, net 14,606 14,175 Long-term investments 39,140 - Deferred income tax asset-long term 776 776 Other assets 614 539 Restricted assets 8,608 8,340 Total assets $193,457 $172,590 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $12,626 $6,154 Accrued compensation and related benefits 7,488 8,299 Accrued liabilities 17,325 14,959 Total current liabilities 37,439 29,412 Deferred rent 107 237 Non-current income tax liability 5,319 5,318 Other long term liabilities - 86 Total liabilities 42,865 35,053 Stockholders' equity: Common stock, $0.001 par value, $34 and $33 in 2008 and 2007, respectively; shares authorized: 150,000,000; shares issued and outstanding: 33,669,624 and 33,454,595 in 2008 and 2007, respectively 145,896 143,890 Deferred stock compensation - (3) Retained earnings (accumulated deficit) 3,720 (6,815) Accumulated other comprehensive income 976 465 Total stockholders' equity 150,592 137,537 Total liabilities and stockholders' equity $193,457 $172,590 Consolidated Income Statement (Unaudited, in thousands, except per share amounts) Three months ended Six months ended June 30, June 30, June 30, June 30, 2008 2007 2008 2007 (as restated) (as restated) Revenue $41,502 $30,833 $76,911 $55,329 Cost of revenue* 15,375 11,248 28,419 20,211 Gross profit 26,127 19,585 48,492 35,118 Operating expenses: Research and development* 8,602 6,428 16,174 12,360 Selling, general and administrative* 8,912 7,119 17,640 13,316 Lease abandonment - (496) - (496) Patent litigation settlement - 9,800 - 9,800 Provision for litigation expense 4,294 4,028 5,030 6,875 Total operating expenses 21,808 26,879 38,844 41,855 Income (loss) from operations 4,319 (7,294) 9,648 (6,737) Other income (expense): Interest and other income 810 1,169 2,244 2,176 Interest and other expense (112) (22) (118) (29) Total other income, net 698 1,147 2,126 2,147 Income (loss) before income taxes 5,017 (6,147) 11,774 (4,590) Income tax provision 417 219 1,239 2,105 Net income (loss) $4,600 $(6,366) $10,535 $(6,695) Basic net income (loss) per share $0.14 $(0.20) $0.32 $(0.22) Diluted net income (loss) per share $0.13 $(0.20) $0.29 $(0.22) Weighted average common shares outstanding 33,229 31,382 33,287 30,929 Stock options and restricted stock 3,003 - 2,804 - Diluted weighted-average common equivalent shares outstanding 36,232 31,382 36,091 30,929 *Stock-based compensation has been included in the following line items: Cost of revenue $128 $113 $173 $224 Research and development 1,396 952 2,603 2,053 Selling, general and administrative 1,819 1,440 3,354 2,548 Total $3,343 $2,505 $6,130 $4,825 RECONCILIATION OF NET INCOME TO NON-GAAP NET INCOME (in thousands, except per share amounts) Net income (loss) $4,600 $(6,366) $10,535 $(6,695) Adjustments to reconcile net income to non-GAAP net income Stock-based compensation $3,343 $2,505 $6,130 $4,825 Patent litigation settlement - 9,800 - 9,800 Reversal of lease write-off - (540) - (540) Tax effect (837) (1,186) (1,924) (618) Non-GAAP net income $7,106 $4,214 $14,741 $6,773 Non-GAAP earnings per share, excluding stock-based compensation and related tax effects: Basic $0.21 $0.13 $0.44 $0.22 Diluted $0.20 $0.12 $0.41 $0.20 Shares used in the calculation of non-GAAP earnings per share: Basic 33,229 31,382 33,287 30,929 Diluted 36,232 34,656 36,091 34,230 RECONCILIATION OF OPERATING EXPENSES TO NON-GAAP OPERATING EXPENSES (in thousands, except per share amounts) Total operating expenses $21,808 $26,879 $38,844 $41,855 Adjustments to reconcile total operating expenses to non-GAAP total operating expenses Stock-based compensation $(3,215) $(2,392) $(5,957) $(4,601) Patent litigation settlement - (9,800) - (9,800) Reversal of lease write-off - 496 - 496 Non-GAAP total operating expenses $18,593 $15,183 $32,887 $27,950 2008 Third Quarter Outlook RECONCILIATION OF R&D AND SG&A EXPENSES TO NON-GAAP R&D AND SG&A EXPENSES (in thousands) Three months ended September 30, 2008 Low High R&D and SG&A $18,200 $19,600 Adjustments to reconcile R&D and SG&A to non-GAAP R&D and SG&A Stock-based compensation (3,200) (3,600) Non-GAAP R&D and SG&A $15,000 $16,000
SOURCE Monolithic Power Systems, Inc.
CONTACT: Rick Neely, Chief Financial Officer of Monolithic Power Systems, Inc., +1-408-826-0777, email@example.com
Web site: http://www.monolithicpower.com