SAN JOSE, Calif. February 12, 2007--Monolithic Power Systems (MPS) (Nasdaq: MPWR), a leading fabless manufacturer of high-performance analog and mixed-signal semiconductors, today announced financial results for the fiscal year and quarter ended December 31, 2006.
The results for the year ended December 31, 2006 are as follows:
The results for the quarter ended December 31, 2006 are as follows:
"We closed out 2006 with a solid balance sheet and maintained strong gross margins despite a challenging market," said Michael Hsing, chief executive officer of MPS. "Our BCD Plus™ technology is delivering new high performance products and our first production orders for the high-current, high-speed MiniMonsters™ are scheduled for delivery in the first half of 2007. This new product family is positioned to target growing power management demands, and we are working hard to release products with even higher current ratings in the next few quarters."
The following are MPS' financial targets for the first quarter ending March 31, 2007:
(1) Non-GAAP net income and non-GAAP operating expenses differ from net income and operating expenses determined in accordance with GAAP (Generally Accepted Accounting Principles in the United States). For the year ending December 31, 2006, non-GAAP net income excludes the effect of stock-based compensation expense, one-time litigation settlement costs, the cost to write off our lease in Los Gatos, and related tax effects. For the fourth quarter ending December 31, 2006, non-GAAP net income excludes the effect of stock-based compensation expense, the cost to write off our lease in Los Gatos, and related tax effects. For the year ending December 31, 2006, non-GAAP operating expenses exclude the effect of stock-based compensation expense, one-time litigation settlement costs, and the cost to write off our lease in Los Gatos. For the fourth quarter ending December 31, 2006, non-GAAP operating expenses exclude the effect of stock-based compensation expense and the cost to write off our lease in Los Gatos. Projected non-GAAP research and development and selling, general and administrative expense for the first quarter ending March 31, 2007 excludes the effect of stock-based compensation expense. A schedule reconciling these amounts is included in this news release.
MPS plans to conduct a management teleconference covering its results for the fourth fiscal quarter and full year 2006 at 2:00 p.m. PST / 5:00 p.m. EST today, February 12, 2007. The call will be webcast at http://www.monolithicpower.com/cmp_02_inv_rel.htm. 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 98444181. 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 MPS' planned product offerings, delivery of our MiniMonsters™ products in the first half of 2007, and targeted revenues, gross margin, GAAP and non-GAAP research and development and selling, general and administrative expense and litigation expense for the fiscal quarter ending March 31, 2007. 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 interruptions in MPS' schedule of new product release development; adverse change 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 Quarterly Report on Form 10-Q filed on November 6, 2006.
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. Any statements by persons outside of MPS speculating on the progress of the quarter or other aspects of MPS' business are not based on internal MPS information and should be assessed accordingly by investors.
About non-GAAP Financial Measures
To supplement our consolidated financial statements presented in accordance with GAAP, we provide non-GAAP net income, non-GAAP operating expenses and non-GAAP research and development and selling, general and administrative expenses as supplemental measures to GAAP of our operating performance. These non-GAAP financial measures exclude the impact of certain costs described in note (1) above.
We use these non-GAAP financial measures for financial and operational decision making and as a means to evaluate period-to-period comparisons. Our management believes that these non-GAAP financial measures provide meaningful supplemental information regarding our performance by excluding these expenses, which we believe may not be indicative of our “recurring core business operating results,” meaning our operating performance excluding not only non-cash charges, such as stock-based compensation, but also discrete cash charges that are infrequent in nature, such as litigation settlement costs and the related tax effects. We believe that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance, including comparability with our competitor's operating results, and when planning, forecasting and analyzing future periods. These non-GAAP financial measures also facilitate management's internal comparisons to our historical performance as well as comparisons to our competitors' operating results. In addition, we believe these non-GAAP financial measures are useful to investors both because (1) they allow for greater transparency with respect to key metrics used by management in its financial and operational decision making and (2) they are used by our institutional investors and the analyst community to help them analyze the health of our business.
In addition, many financial analysts that follow our Company focus on and publish both historical results and future projections based on these non-GAAP financial measures. We believe that it is in the best interest of our investors to provide this information to analysts so that they accurately report the non-GAAP financial information. Moreover, investors have historically requested, and we have historically reported these non-GAAP financial measures as a means of providing consistent and comparable information with past reports of financial results.
While management believes that these non-GAAP financial measures provide useful supplemental information to investors, there are limitations associated with the use of these non-GAAP financial measures. For example, these non-GAAP financial measures are not prepared in accordance with GAAP, are not reported by all of our competitors and may not be directly comparable to similarly titled measures of our competitors' financial results due to potential differences in the exact method of calculation. We compensate for these limitations by using these non-GAAP financial measures as supplements to GAAP financial measures and by reviewing the reconciliations of the non-GAAP financial measures to their most comparable GAAP financial measures.
About Monolithic Power Systems
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 Los Gatos, 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.