Power Integrations Reports Decline in Net Revenues and Profitability in Q3 2024

Power Integrations, Inc. reported its financial results for the three and nine months ended September 30, 2024, revealing a decline in net revenues and profitability compared to the same periods in 2023. For the third quarter of 2024, net revenues were $115.8 million, down from $125.5 million in Q3 2023. For the nine-month period, revenues decreased to $313.7 million from $355.0 million in the prior year. The decrease in revenue was primarily attributed to lower sales in smartphone chargers, although this was partially offset by increased sales in consumer and computer markets.

Gross profit for Q3 2024 was $63.2 million, compared to $65.9 million in Q3 2023, with a gross margin improvement to 54.5% from 52.5%. For the nine months, gross profit fell to $167.5 million from $182.7 million, but the gross margin increased to 53.4% from 51.5%. The increase in gross margin was attributed to a favorable end-market mix and favorable currency impacts on wafer costs.

Operating income for Q3 2024 was $11.6 million, down from $17.7 million in Q3 2023, while for the nine months, it decreased to $14.0 million from $36.1 million. Net income for Q3 2024 was $14.3 million, compared to $19.8 million in the same quarter of 2023, and for the nine months, it fell to $23.1 million from $41.5 million. Basic earnings per share for Q3 2024 were $0.25, down from $0.34 in Q3 2023, and for the nine months, it decreased to $0.41 from $0.72.

The company’s total assets increased slightly to $825.0 million as of September 30, 2024, from $819.9 million at the end of 2023. However, total stockholders’ equity decreased to $749.2 million from $752.2 million. Cash and cash equivalents decreased to $58.5 million from $63.9 million at the end of 2023.

In terms of strategic developments, Power Integrations completed the acquisition of Odyssey Semiconductor Technologies on July 1, 2024, for $9.52 million, aimed at enhancing its high-power gallium-nitride (GaN) switching technology. The acquisition included $3.4 million of goodwill and $4.9 million in in-process research and development.

The company continues to focus on its core business of integrated circuits for high-voltage power conversion, with significant revenue concentration among its top customers, who accounted for 78% of net revenues in both Q3 2024 and Q3 2023. The company also maintained a robust dividend policy, increasing its quarterly dividend to $0.21 per share for the fourth quarter of 2024.