On August 1, 2024, Monolithic Power Systems Inc (MPWR, Financial) released its 8-K filing for the second quarter ended June 30, 2024. Monolithic Power Systems is an analog and mixed-signal chipmaker, specializing in power management solutions. The firm's mission is to reduce total energy consumption in end systems, and it serves the computing, automotive, industrial, communications, and consumer end markets. MPS uses a fabless manufacturing model, partnering with third-party chip foundries to host its proprietary BCD process technology.
Quarterly Financial Performance
Monolithic Power Systems Inc (MPWR, Financial) reported revenue of $507.4 million for Q2 2024, a 10.8% increase from $457.9 million in Q1 2024 and a 15.0% increase from $441.1 million in Q2 2023. This performance surpassed the analyst estimate of $490.65 million. The company also reported GAAP net income of $100.4 million, or $2.05 per diluted share, compared to $99.5 million, or $2.04 per diluted share, in the same quarter last year. Non-GAAP net income was $155.1 million, or $3.17 per diluted share, exceeding the analyst estimate of $2.98 per share.
Key Financial Metrics
GAAP gross margin for Q2 2024 was 55.3%, slightly down from 56.1% in Q2 2023. Non-GAAP gross margin was 55.7%, compared to 56.5% in the same period last year. GAAP operating expenses increased to $164.0 million from $135.4 million in Q2 2023, while non-GAAP operating expenses were $111.7 million, up from $96.0 million in the previous year.
GAAP operating income was $116.5 million, compared to $112.3 million in Q2 2023. Non-GAAP operating income was $171.0 million, up from $153.1 million in the same quarter last year. GAAP income before income taxes was $124.0 million, compared to $118.9 million in Q2 2023, while non-GAAP income before income taxes was $177.2 million, up from $157.2 million in the previous year.
Revenue Breakdown by End Market
| End Market | Q2 2024 | Q2 2023 | H1 2024 | H1 2023 |
|---|---|---|---|---|
| Enterprise Data | $187,211 | $47,982 | $336,938 | $95,145 |
| Storage and Computing | $114,955 | $124,543 | $221,076 | $244,365 |
| Automotive | $87,193 | $104,394 | $174,285 | $209,736 |
| Communications | $43,566 | $49,293 | $90,211 | $117,199 |
| Consumer | $42,229 | $65,187 | $80,303 | $128,550 |
| Industrial | $32,277 | $49,729 | $62,503 | $97,198 |
| Total | $507,431 | $441,128 | $965,316 | $892,193 |
CEO Commentary
“As we have emphasized for many years, our results reflect the continued success of our proven, long-term growth strategy and our transformation from being only a chip supplier to a full solutions provider,” said Michael Hsing, CEO and founder of MPS.
Analysis and Outlook
Monolithic Power Systems Inc (MPWR, Financial) has demonstrated robust growth in Q2 2024, significantly surpassing analyst estimates for both revenue and earnings per share. The company's strategic focus on diversifying its end markets and transitioning to a full solutions provider has paid off, as evidenced by the substantial revenue increases in the Enterprise Data segment.
However, the company faces challenges with rising operating expenses and slightly declining gross margins. These factors could impact profitability if not managed effectively. Nevertheless, the strong performance in key segments and the positive outlook for the third quarter suggest that Monolithic Power Systems Inc (MPWR, Financial) is well-positioned to continue its growth trajectory.
For more detailed insights and analysis, visit the full earnings report on GuruFocus.com.
Explore the complete 8-K earnings release (here) from Monolithic Power Systems Inc for further details.
