Monolithic Power Systems, Inc. (MPS) reported a significant increase in its financial performance for the fiscal year ending December 31, 2024, with total revenue reaching $2.2 billion, a 21.2% increase from $1.8 billion in 2023. The company's net income surged to $1.79 billion, or $36.76 per share, compared to $427.4 million, or $8.98 per share, in the previous year. This remarkable growth was primarily driven by a substantial rise in sales within the enterprise data market, which saw a 121.8% increase, largely attributed to higher demand for power management solutions in AI applications.
In terms of operational metrics, MPS experienced notable changes in its revenue distribution across various end markets. The enterprise data segment accounted for 32.5% of total revenue, up from 17.7% in 2023, while the automotive segment contributed 18.8%, down from 21.7%. The company also reported a 94% reliance on customers in Asia, reflecting a slight increase from 87% in 2023. MPS's employee headcount rose to 4,017, up from 3,564 the previous year, indicating a strategic focus on expanding its workforce to support growth initiatives.
Strategically, MPS completed the acquisition of Axign B.V., a Dutch semiconductor company specializing in audio applications, for $33.4 million in cash. This acquisition is expected to enhance MPS's product offerings and market reach, particularly in consumer audio and automotive sectors. The company also announced a new stock repurchase program in February 2025, authorizing the repurchase of up to $500 million of its common stock through February 2028, following the completion of a previous $640 million program.
Looking ahead, MPS remains optimistic about its growth trajectory, emphasizing plans to diversify revenue streams across regions and introduce new products within existing and new categories. The company acknowledges potential challenges from macroeconomic factors, including global economic uncertainties and geopolitical tensions, which could impact the semiconductor industry. However, MPS believes its targeted product areas will allow it to outperform the broader semiconductor market in the long term.
About MONOLITHIC POWER SYSTEMS INC
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