Summary
Monolithic Power Systems, Inc. (MPWR) reported its first-quarter 2024 financial results, showing a slight increase in revenue year-over-year to $457.9 million, up 1.5% from $451.1 million in Q1 2023. This growth was primarily driven by higher average selling prices due to product mix, despite lower shipment volumes. The company saw significant growth in the enterprise data market, largely attributed to power management solutions for AI applications, but experienced declines in storage & computing, automotive, communications, consumer, and industrial segments. Net income for the quarter was $92.5 million, a decrease from $109.8 million in the prior year, resulting in diluted earnings per share of $1.89, down from $2.26. The gross margin declined to 55.1% from 57.4%, impacted by higher inventory write-downs and warranty expenses. Operating expenses increased, particularly in R&D and SG&A, partly due to higher stock-based compensation. The company maintained a strong liquidity position with $1.29 billion in cash, cash equivalents, and short-term investments.
Financial Highlights
50 data points| Revenue | $457.88M |
| Cost of Revenue | $205.44M |
| Gross Profit | $252.44M |
| SG&A Expenses | $80.96M |
| Operating Expenses | $156.95M |
| Operating Income | $95.49M |
| Net Income | $92.54M |
| EPS (Basic) | $1.90 |
| EPS (Diluted) | $1.89 |
| Shares Outstanding (Basic) | 48.63M |
| Shares Outstanding (Diluted) | 48.93M |
Key Highlights
- 1Revenue increased by 1.5% year-over-year to $457.9 million, driven by higher average selling prices and a strong performance in the enterprise data market, notably for AI applications.
- 2Net income decreased to $92.5 million from $109.8 million in the prior year's quarter, resulting in diluted EPS of $1.89 compared to $2.26.
- 3Gross margin declined to 55.1% from 57.4% due to increased inventory write-downs and warranty expenses.
- 4Operating expenses rose, with R&D up 20.9% and SG&A up 14.4%, reflecting increased investments and stock-based compensation.
- 5The company completed the acquisition of Axign B.V. for approximately $33.7 million, adding a Dutch company specializing in class-D audio ICs.
- 6MPWR reported a material weakness in its internal control over financial reporting related to demand forecasting for excess and obsolete inventory, though it did not result in a misstatement for the current period.
- 7The company maintained a robust liquidity position with $1.29 billion in cash, cash equivalents, and short-term investments as of March 31, 2024.