Q3 2024 Power Integrations Inc Earnings Call Transcript
Key Points
- Power Integrations Inc (POWI) reported a 9% sequential increase in revenues for the third quarter, reaching $216 million.
- The company achieved a non-GAAP gross margin of 55.1% and non-GAAP earnings of 40 cents per share, slightly above guidance.
- Power Integrations Inc (POWI) expects strong growth in 2025, particularly in the industrial segment, driven by high power and high voltage DC transmission projects.
- The company is making significant advancements in its GaN technology, with recent introductions including the industry's first 1,700-volt GaN switch.
- Power Integrations Inc (POWI) has a healthy balance sheet, allowing for a 5% dividend increase and authorization of $50 million for share repurchases.
- The revenue outlook for the fourth quarter is projected to decrease to $105 million, reflecting a soft demand environment.
- There is a build-up of appliance inventory at Chinese OEMs, impacting the consumer segment, which accounts for nearly 40% of sales.
- Channel inventory increased to 8.6 weeks, up from 7.8 weeks in the prior quarter, driven by higher consumer inventory.
- The company experienced losses in the China cell phone market earlier in the year, affecting overall 2024 revenues.
- The consumer segment is facing challenges due to the delayed and varied impact of China's government stimulus program on appliance demand.
Good day, everyone and welcome to today's Power Integrations, third quarter earnings call at this time. All participants are in a listen-only mode later. You will have an opportunity to ask questions during the question-and-answer session.
You may register to ask a question at any time by pressing the star and one on your telephone keypad. Please note this call is being recorded and I will be standing by. Should you have any, should you need any assistance? It is now my pleasure to turn today's program over to Joe Shiffler, Director of Relations.
Thank you, Brittany. Good afternoon, everyone. Thanks for joining us with me on the call. Today are Balu Balakrishnan, Chairman and CEO of Power Integrations and Sandeep Nayyar, our Chief Financial Officer.
During this call, we will refer to financial measures not calculated according to GAAP, non gaap measures exclude stock based compensation expenses, amortization of acquisition related and tangible
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