Monolithic Power Systems (MPWR) Tops Q1 EPS by 1c, Revenues Beat; Offers 2Q Revenue Guidance Above Consensus

Monolithic Power Systems (NASDAQ: MPWR) reported Q1 EPS of $0.95, $0.01 better than the analyst estimate of $0.94. Revenue for the quarter came in at $165.8 million versus the consensus estimate of $161.15 million.

• Revenue was $165.8 million for the quarter ended March 31, 2020, a 0.6% decrease from $166.7 million for the quarter ended December 31, 2019 and a 17.3% increase from $141.4 million for the quarter ended March 31, 2019.
• GAAP gross margin was 55.2% for the quarter ended March 31, 2020, compared with 55.2% for the quarter ended March 31, 2019.
• Non-GAAP (1) gross margin was 55.5% for the quarter ended March 31, 2020, excluding the impact of $0.6 million for stock-based compensation expense and $0.1 million for deferred compensation plan income, compared with 55.6% for the quarter ended March 31, 2019, excluding the impact of $0.5 million for stock-based compensation expense and $0.1 million for the amortization of acquisition-related intangible assets.
• GAAP operating expenses were $60.5 million for the quarter ended March 31, 2020, compared with $56.3 million for the quarter ended March 31, 2019.
• Non-GAAP (1) operating expenses were $46.1 million for the quarter ended March 31, 2020, excluding $18.0 million for stock-based compensation expense and $3.6 million for deferred compensation plan income, compared with $39.0 million for the quarter ended March 31, 2019, excluding $15.5 million for stock-based compensation expense and $1.8 million for deferred compensation plan expense.
• GAAP operating income was $31.0 million for the quarter ended March 31, 2020, compared with $21.7 million for the quarter ended March 31, 2019.
• Non-GAAP (1) operating income was $45.9 million for the quarter ended March 31, 2020, excluding $18.6 million for stock-based compensation expense and $3.7 million for deferred compensation plan income, compared with $39.6 million for the quarter ended March 31, 2019, excluding $16.0 million for stock-based compensation expense, $0.1 million for the amortization of acquisition-related intangible assets and $1.8 million for deferred compensation plan expense.
• GAAP other expense, net, was $1.7 million for the quarter ended March 31, 2020, compared with other income, net, of $3.3 million for the quarter ended March 31, 2019.
• Non-GAAP (1) other income, net was $2.0 million for the quarter ended March 31, 2020, excluding $3.8 million for deferred compensation plan expense, compared with $1.4 million for the quarter ended March 31, 2019, excluding $1.9 million for deferred compensation plan income.
• GAAP income before income taxes was $29.3 million for the quarter ended March 31, 2020, compared with $25.1 million for the quarter ended March 31, 2019.
• Non-GAAP (1) income before income taxes was $47.9 million for the quarter ended March 31, 2020, excluding $18.6 million for stock-based compensation expense and $0.1 million for deferred compensation plan expense, compared with $41.0 million for the quarter ended March 31, 2019, excluding $16.0 million for stock-based compensation expense, $0.1 million for the amortization of acquisition-related intangible assets, and $0.1 million for deferred compensation plan income.
• GAAP net income was $35.8 million and GAAP earnings per share were $0.77 per diluted share for the quarter ended March 31, 2020. Comparatively, GAAP net income was $26.2 million and GAAP earnings per share were $0.58 per diluted share for the quarter ended March 31, 2019.
• Non-GAAP (1) net income was $44.3 million and non-GAAP earnings per share were $0.95 per diluted share for the quarter ended March 31, 2020, excluding stock-based compensation expense, amortization of acquisition-related intangible assets, net deferred compensation plan expense and related tax effects, compared with non-GAAP net income of $37.9 million and non-GAAP earnings per share of $0.84 per diluted share for the quarter ended March 31, 2019, excluding stock-based compensation expense, amortization of acquisition-related intangible assets, net deferred compensation plan income and related tax effects.

GUIDANCE:

Monolithic Power Systems sees Q2 2020 revenue of $167-173 million, versus the consensus of $163.99 million.

The following are MPS’ financial targets for the second quarter ending June 30, 2020:

Revenue in the range of $167 million to $173 million.

• GAAP gross margin between 55.0% and 55.6%. Non-GAAP (1) gross margin between 55.3% and 55.9%, which excludes an estimated impact of stock-based compensation expenses of 0.3%.
• GAAP research and development (“R&D”) and selling, general and administrative (“SG&A”) expenses between $60.9 million and $64.9 million. Non-GAAP (1) R&D and SG&A expenses between $43.4 million and $45.4 million, which excludes an estimate of stock-based compensation expenses in the range of $17.5 million to $19.5 million.
• Total stock-based compensation expense of $18.1 million to $20.1 million.
• Litigation expenses ranging between $1.7 million and $2.1 million.
• Interest income of $1.7 million to $1.9 million.
• Fully diluted shares outstanding between 45.8 million and 47.8 million.

For earnings history and earnings-related data on Monolithic Power Systems (MPWR) click here.

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