Exhibit 99.1

 

 

 

PRESS RELEASE

 

For Immediate Release

 

 

Monolithic Power Systems Announces

Results for the Fourth Quarter and Year Ended December 31, 2019,

and an Increase in Quarterly Cash Dividend

 

KIRKLAND, WASHINGTON, February 5, 2020-- Monolithic Power Systems, Inc. (MPS) (Nasdaq: MPWR), a leading company in high performance analog solutions, today announced financial results for the quarter and year ended December 31, 2019. The Company also announced that its Board of Directors has approved an increase in the quarterly cash dividend from $0.40 per share to $0.50 per share. The first quarter dividend of $0.50 per share will be paid on April 15, 2020 to all stockholders of record as of the close of business on March 31, 2020. 

 

The financial results for the quarter ended December 31, 2019 are as follows:

 

 

Revenue was $166.7 million for the quarter ended December 31, 2019, a 1.2% decrease from $168.8 million for the quarter ended September 30, 2019 and an 8.6% increase from $153.5 million for the quarter ended December 31, 2018.

 

 

 

 

GAAP gross margin was 55.1% for the quarter ended December 31, 2019, compared with 55.1% for the quarter ended December 31, 2018.

 

 

 

 

Non-GAAP (1) gross margin was 55.5% for the quarter ended December 31, 2019, excluding the impact of $0.6 million for stock-based compensation expense, compared with 55.6% for the quarter ended December 31, 2018, excluding the impact of $0.5 million for stock-based compensation expense and $0.2 million for the amortization of acquisition-related intangible assets.

 

 

 

 

GAAP operating expenses were $61.2 million for the quarter ended December 31, 2019, compared with $51.5 million for the quarter ended December 31, 2018.

 

 

 

 

Non-GAAP (1) operating expenses were $41.8 million for the quarter ended December 31, 2019, excluding $18.1 million for stock-based compensation expense and $1.4 million for deferred compensation plan expense, compared with $38.7 million for the quarter ended December 31, 2018, excluding $14.3 million for stock-based compensation expense and $1.5 million for deferred compensation plan income.

 

 

 

 

GAAP operating income was $30.7 million for the quarter ended December 31, 2019, compared with $33.1 million for the quarter ended December 31, 2018.

 

 

 

 

Non-GAAP (1) operating income was $50.8 million for the quarter ended December 31, 2019, excluding $18.7 million for stock-based compensation expense and $1.4 million for deferred compensation plan expense, compared with $46.6 million for the quarter ended December 31, 2018, excluding $14.8 million for stock-based compensation expense, $0.2 million for the amortization of acquisition-related intangible assets and $1.5 million for deferred compensation plan income.

 

 

 

 

GAAP interest and other income, net, was $2.7 million for the quarter ended December 31, 2019, compared with interest and other expense, net, of $0.4 million for the quarter ended December 31, 2018.

 

 

 

 

 

Non-GAAP (1) interest and other income, net was $1.6 million for the quarter ended December 31, 2019, excluding $1.2 million for deferred compensation plan income, compared with $1.6 million for the quarter ended December 31, 2018, excluding $2.0 million for deferred compensation plan expense.

 

 

 

 

GAAP income before income taxes was $33.4 million for the quarter ended December 31, 2019, compared with $32.7 million for the quarter ended December 31, 2018.

 

 

 

 

Non-GAAP (1) income before income taxes was $52.3 million for the quarter ended December 31, 2019, excluding $18.7 million for stock-based compensation expense and $0.2 million for deferred compensation plan expense, compared with $48.2 million for the quarter ended December 31, 2018, excluding $14.8 million for stock-based compensation expense, $0.2 million for the amortization of acquisition-related intangible assets, and $0.5 million for deferred compensation plan expense.

 

 

 

 

GAAP net income was $32.4 million and GAAP earnings per share were $0.70 per diluted share for the quarter ended December 31, 2019. Comparatively, GAAP net income was $27.6 million and GAAP earnings per share were $0.61 per diluted share for the quarter ended December 31, 2018.

 

 

 

 

Non-GAAP (1) net income was $48.4 million and non-GAAP earnings per share were $1.04 per diluted share for the quarter ended December 31, 2019, excluding stock-based compensation expense, amortization of acquisition-related intangible assets, net deferred compensation plan expense and related tax effects, compared with non-GAAP net income of $44.6 million and non-GAAP earnings per share of $0.99 per diluted share for the quarter ended December 31, 2018, excluding stock-based compensation expense, amortization of acquisition-related intangible assets, net deferred compensation plan expense and related tax effects.

 

The financial results for the year ended December 31, 2019 are as follows:

 

 

Revenue was $627.9 million for the year ended December 31, 2019, a 7.8% increase from $582.4 million for the year ended December 31, 2018.

 

 

 

 

GAAP gross margin was 55.2% for the year ended December 31, 2019, compared with 55.4% for the year ended December 31, 2018.

 

 

 

 

Non-GAAP (1) gross margin was 55.6% for the year ended December 31, 2019, excluding the impact of $2.4 million for stock-based compensation expense, $0.1 million for the amortization of acquisition-related intangible assets and $0.1 million for deferred compensation plan expense, compared with 55.9% for the year ended December 31, 2018, excluding the impact of $1.9 million for stock-based compensation expense and $0.8 million for the amortization of acquisition-related intangible assets.

 

 

 

 

GAAP operating expenses were $243.8 million for the year ended December 31, 2019, compared with $209.2 million for the year ended December 31, 2018.

 

 

 

 

Non-GAAP (1) operating expenses were $163.5 million for the year ended December 31, 2019, excluding $76.3 million for stock-based compensation expense and $3.9 million for deferred compensation plan expense, compared with $151.1 million for the year ended December 31, 2018, excluding $58.7 million for stock-based compensation expense and $0.6 million for deferred compensation plan income.

 

 

 

 

GAAP operating income was $102.6 million for the year ended December 31, 2019, compared with $113.5 million for the year ended December 31, 2018.

 

 

 

 

Non-GAAP (1) operating income was $185.4 million for the year ended December 31, 2019, excluding $78.7 million for stock-based compensation expense, $0.1 million for the amortization of acquisition-related intangible assets and $4.0 million for deferred compensation plan expense, compared with $174.3 million for the year ended December 31, 2018, excluding $60.6 million for stock-based compensation expense, $0.8 million for the amortization of acquisition-related intangible assets, and $0.6 million for deferred compensation plan income.

 

 

 

 

GAAP interest and other income, net was $10.6 million for the year ended December 31, 2019, compared with $5.0 million for the year ended December 31, 2018.

 

 

 

 

 

Non-GAAP (1) interest and other income, net was $6.8 million for the year ended December 31, 2019, excluding $3.8 million for deferred compensation plan income, compared with $6.0 million for the year ended December 31, 2018, excluding $1.0 million for deferred compensation plan expense.

 

 

 

 

GAAP income before income taxes was $113.1 million for the year ended December 31, 2019, compared with $118.5 million for the year ended December 31, 2018.

 

 

 

 

Non-GAAP (1) income before income taxes was $192.1 million for the year ended December 31, 2019, excluding $78.7 million for stock-based compensation expense, $0.1 million for the amortization of acquisition-related intangible assets and $0.2 million for deferred compensation plan expense, compared with $180.4 million for the year ended December 31, 2018, excluding $60.6 million for stock-based compensation expense, $0.8 million for the amortization of acquisition-related intangible assets and $0.4 million for deferred compensation plan expense.

 

 

GAAP net income was $108.8 million and GAAP earnings per share were $2.38 per diluted share for the year ended December 31, 2019. Comparatively, GAAP net income was $105.3 million and GAAP earnings per share were $2.36 per diluted share for the year ended December 31, 2018.

 

 

 

 

Non-GAAP (1) net income was $177.7 million and non-GAAP earnings per share were $3.88 per diluted share for the year ended December 31, 2019, excluding stock-based compensation expense, amortization of acquisition-related intangible assets, net deferred compensation plan expense and related tax effects, compared with non-GAAP net income of $166.8 million and non-GAAP earnings per share of $3.74 per diluted share for the year ended December 31, 2018, excluding stock-based compensation expense, amortization of acquisition-related intangible assets, net deferred compensation plan expense and related tax effects.

 

The following is a summary of revenue by end market for the periods indicated (in thousands):

 

   

Three Months Ended December 31,

   

Year Ended December 31,

 

End Market

 

2019

   

2018

   

2019

   

2018

 

Computing and storage

  $ 55,644     $ 43,537     $ 189,215     $ 159,121  

Automotive

    24,129       22,221       90,303       80,078  

Industrial

    26,741       26,928       99,381       88,472  

Communications

    21,866       20,147       84,794       70,589  

Consumer

    38,358       40,664       164,228       184,122  

Total

  $ 166,738     $ 153,497     $ 627,921     $ 582,382  

 

The following is a summary of revenue by product family for the periods indicated (in thousands):

 

   

Three Months Ended December 31,

   

Year Ended December 31,

 

Product Family

 

2019

   

2018

   

2019

   

2018

 

DC to DC

  $ 157,525     $ 143,021     $ 589,651     $ 537,512  

Lighting Control

    9,213       10,476       38,270       44,870  

Total

  $ 166,738     $ 153,497     $ 627,921     $ 582,382  

 

“We will continue executing on our strategy and winning market share," said Michael Hsing, CEO and founder of MPS.

 

Business Outlook

 

The following are MPS’ financial targets for the first quarter ending March 31, 2020:

 

 

Revenue in the range of $161 million to $167 million.

 

 

GAAP gross margin between 55.1% and 55.7%. Non-GAAP (1) gross margin between 55.4% and 56.0%, which excludes an estimated impact of stock-based compensation expenses of 0.3%.

 

 

GAAP research and development (“R&D”) and selling, general and administrative (“SG&A”) expenses between $58.4 million and $62.4 million. Non-GAAP (1) R&D and SG&A expenses between $41.0 million and $43.0 million, which excludes an estimate of stock-based compensation expenses in the range of $17.4 million to $19.4 million.

 

 

 

 

 

Total stock-based compensation expense of $18.0 million to $20.0 million.

  

 

Litigation expenses ranging between $1.5 million and $2.5 million.

 

 

Interest income of $1.5 million to $1.7 million.

 

 

Fully diluted shares outstanding between 46.2 million and 47.2 million.

 

(1) Non-GAAP net income, non-GAAP earnings per share, non-GAAP gross margin, non-GAAP R&D and SG&A expenses, non-GAAP operating expenses, non-GAAP interest and other income, net, non-GAAP operating income and non-GAAP income before taxes differ from net income, earnings per share, gross margin, R&D and SG&A expenses, operating expenses, interest and other income, net, operating income and income before taxes determined in accordance with Generally Accepted Accounting Principles in the United States (GAAP). Non-GAAP net income and non-GAAP earnings per share exclude the effect of stock-based compensation expense, amortization of acquisition-related intangible assets, deferred compensation plan income/expense and related tax effects. Non-GAAP gross margin excludes the effect of stock-based compensation expense, amortization of acquisition-related intangible assets and deferred compensation plan income/expense. Non-GAAP operating expenses exclude the effect of stock-based compensation expense and deferred compensation plan income/expense. Non-GAAP interest and other income, net excludes the effect of deferred compensation plan income/expense. Non-GAAP operating income excludes the effect of stock-based compensation expense, amortization of acquisition-related intangible assets and deferred compensation plan income/expense. Non-GAAP income before taxes excludes the effect of stock-based compensation expense, amortization of acquisition-related intangible assets and deferred compensation plan income/expense. Projected non-GAAP gross margin excludes the effect of stock-based compensation expense. Projected non-GAAP R&D and SG&A expenses exclude the effect of stock-based compensation expense. These non-GAAP financial measures are not prepared in accordance with GAAP and should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. A schedule reconciling non-GAAP financial measures is included at the end of this press release. MPS utilizes both GAAP and non-GAAP financial measures to assess what it believes to be its core operating performance and to evaluate and manage its internal business and assist in making financial operating decisions. MPS believes that the inclusion of non-GAAP financial measures, together with GAAP measures, provides investors with an alternative presentation useful to investors' understanding of MPS' core operating results and trends. Additionally, MPS believes that the inclusion of non-GAAP measures, together with GAAP measures, provides investors with an additional dimension of comparability to similar companies. However, investors should be aware that non-GAAP financial measures utilized by other companies are not likely to be comparable in most cases to the non-GAAP financial measures used by MPS.  

 

Conference Call

MPS plans to conduct an investor teleconference covering its financial results at 2:00 p.m. PT / 5:00 p.m. ET, February 5, 2020. To access the conference call and the following replay of the conference call, go to http://ir.monolithicpower.com and click on the webcast link. From this site, you can listen to the teleconference, assuming that your computer system is configured properly. In addition to the webcast replay, which will be archived for all investors for one year on the MPS website, a phone replay will be available for seven days after the live call at (404) 537-3406, code number 9587067. This press release and any other information related to the call will also be posted on the website.

 

Safe Harbor Statement

This press release contains, and statements that will be made during the accompanying teleconference will contain, forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995, including, among other things, (i) projected revenues, GAAP and non-GAAP gross margin, GAAP and non-GAAP R&D and SG&A expenses, stock-based compensation expenses, litigation expenses, interest and other income, and diluted shares outstanding, (ii) our outlook for the long-term prospects of the company, including our performance against our business plan, revenue growth in certain of our market segments, our continued investment into R&D, expected revenue growth, customers' acceptance of our new product offerings, the prospects of our new product development, and our expectations regarding market and industry segment trends and prospects, (iii) our ability to penetrate new markets and expand our market share, (iv) the seasonality of our business, (v) our ability to reduce our expenses, and (vi) statements of the assumptions underlying or relating to any statement described in (i), (ii), (iii), (iv), or (v). These forward-looking statements are not historical facts or guarantees of future performance or events, are based on current expectations, estimates, beliefs, assumptions, goals, and objectives, and involve significant known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from the results expressed by these statements. Readers of this press release and listeners to the accompanying conference call are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date hereof. Factors that could cause actual results to differ include, but are not limited to, our ability to attract new customers and retain existing customers; acceptance of, or demand for, MPS' products, in particular the new products launched recently, being different than expected; our ability to efficiently and effectively develop new products and receive a return on our R&D expense investment; our ability to increase market share in our targeted markets; competition generally and the increasingly competitive nature of our industry; any market disruptions or interruptions in MPS' schedule of new product development releases; adverse changes in production and testing efficiency of our products; our ability to realize the anticipated benefits of companies and products that we acquire, and our ability to effectively and efficiently integrate these acquired companies and products into our operations; our ability to manage our inventory levels; the effect of export controls, trade and economic sanctions regulations and other regulatory or contractual limitations on our ability to sell or develop our products in certain foreign markets, particularly in China; our ability to obtain governmental licenses and approvals for international trading activities or technology transfers, including export licenses; adverse changes in laws and government regulations such as tariffs on imports of foreign goods, export regulations and export classifications, including in foreign countries where MPS has offices or operations; adverse events arising from orders of governmental entities, including such orders that impact our customers, and adopting of new or amended accounting standards; the effect of catastrophic events, including epidemics in areas where we or our customers have operations; adequate supply of our products from our third-party manufacturing partners; the risks, uncertainties and costs of litigation in which we are involved; the outcome of any upcoming trials, hearings, motions and appeals; the adverse impact on MPS' financial performance if its tax and litigation provisions are inadequate; adverse changes or developments in the semiconductor industry generally, which is cyclical in nature, and our ability to adjust our operations to address such changes or developments; difficulty in predicting or budgeting for future customer demand and channel inventories, expenses and financial contingencies; the ongoing consolidation of companies in the semiconductor industry; and other important risk factors identified in MPS’s Securities and Exchange Commission (SEC) filings, including, but not limited to, our annual report on Form 10-K filed with the SEC on March 1, 2019, and our quarterly report on Form 10-Q filed with the SEC on November 1, 2019. The forward-looking statements in this press release and statements made during the accompanying teleconference represent MPS’s projections and current expectations, as of the date hereof, not predictions of actual performance. MPS assumes no obligation to update the information in this press release or in the accompanying conference call.

  

 

 

 

About Monolithic Power Systems

Monolithic Power Systems, Inc. (MPS) provides small, highly energy efficient, easy-to-use power solutions for systems found in industrial applications, telecom infrastructures, cloud computing, automotive, and consumer applications. MPS' mission is to reduce total energy consumption in its customers' systems with green, practical, compact solutions. The company was founded by Michael Hsing in 1997 and is based in the United States. MPS can be contacted through its website at www.monolithicpower.com or its support offices around the world.

 

Monolithic Power Systems, MPS, and the MPS logo are registered trademarks of Monolithic Power Systems, Inc. in the U.S. and trademarked in certain other countries.

 

Contact:

Bernie Blegen

Chief Financial Officer

Monolithic Power Systems, Inc.

408-826-0777

investors@monolithicpower.com

 

 

 

 

Monolithic Power Systems, Inc.

Condensed Consolidated Balance Sheets

(Unaudited, in thousands, except par value) 

 

   

December 31,

 
   

2019

   

2018

 

ASSETS

               

Current assets:

               

Cash and cash equivalents

  $ 172,960     $ 172,704  

Short-term investments

    282,437       204,577  

Accounts receivable, net

    52,704       55,214  

Inventories

    127,500       136,384  

Other current assets

    19,605       11,931  

Total current assets

    655,206       580,810  

Property and equipment, net

    228,315       150,001  

Long-term investments

    3,138       3,241  

Goodwill

    6,571       6,571  

Deferred tax assets, net

    17,193       16,830  

Other long-term assets

    45,952       35,979  

Total assets

  $ 956,375     $ 793,432  
                 

LIABILITIES AND STOCKHOLDERS’ EQUITY

               

Current liabilities:

               

Accounts payable

  $ 27,271     $ 22,678  

Accrued compensation and related benefits

    26,164       18,799  

Other accrued liabilities

    44,790       38,962  

Total current liabilities

    98,225       80,439  

Income tax liabilities

    37,596       34,375  

Other long-term liabilities

    47,063       38,525  

Total liabilities

    182,884       153,339  

Commitments and contingencies

               

Stockholders’ equity:

               

Common stock and additional paid-in capital: $0.001 par value; shares authorized: 150,000; shares issued and outstanding: 43,616 and 42,505, respectively

    549,517       450,908  

Retained earnings

    229,450       194,728  

Accumulated other comprehensive loss

    (5,476 )     (5,543 )

Total stockholders’ equity

    773,491       640,093  

Total liabilities and stockholders’ equity

  $ 956,375     $ 793,432  

 

 

 

 

Monolithic Power Systems, Inc.

Condensed Consolidated Statements of Operations

(Unaudited, in thousands, except per share amounts)

 

   

Three Months Ended December 31,

   

Year Ended December 31,

 
   

2019

   

2018

   

2019

   

2018

 

Revenue

  $ 166,738     $ 153,497     $ 627,921     $ 582,382  

Cost of revenue

    74,802       68,904       281,596       259,714  

Gross profit

    91,936       84,593       346,325       322,668  

Operating expenses:

                               

Research and development

    27,011       22,735       107,757       93,455  

Selling, general and administrative

    33,240       28,372       133,542       113,803  

Litigation expense

    991       409       2,464       1,922  

Total operating expenses

    61,242       51,516       243,763       209,180  

Income from operations

    30,694       33,077       102,562       113,488  

Interest and other income (expense), net

    2,731       (393 )     10,558       4,994  

Income before income taxes

    33,425       32,684       113,120       118,482  

Income tax expense

    989       5,046       4,281       13,214  

Net income

  $ 32,436     $ 27,638     $ 108,839     $ 105,268  
                                 

Net income per share:

                               

Basic

  $ 0.75     $ 0.65     $ 2.52     $ 2.49  

Diluted

  $ 0.70     $ 0.61     $ 2.38     $ 2.36  

Weighted-average shares outstanding:

                               

Basic

    43,496       42,467       43,165       42,247  

Diluted

    46,503       45,058       45,763       44,602  

 

 

 

 

SUPPLEMENTAL FINANCIAL INFORMATION

STOCK-BASED COMPENSATION EXPENSE

(Unaudited, in thousands)

 

   

Three Months Ended December 31,

   

Year Ended December 31,

 
   

2019

   

2018

   

2019

   

2018

 

Cost of revenue

  $ 574     $ 504     $ 2,409     $ 1,888  

Research and development

    4,784       3,822       19,584       15,990  

Selling, general and administrative

    13,322       10,516       56,706       42,729  

Total stock-based compensation expense

  $ 18,680     $ 14,842     $ 78,699     $ 60,607  

 

 

 

 

RECONCILIATION OF NET INCOME TO NON-GAAP NET INCOME

(Unaudited, in thousands, except per share amounts)

 

   

Three Months Ended December 31,

   

Year Ended December 31,

 
   

2019

   

2018

   

2019

   

2018

 

Net income

  $ 32,436     $ 27,638     $ 108,839     $ 105,268  

Net income as a percentage of revenue

    19.5 %     18.0 %     17.3 %     18.1 %
                                 

Adjustments to reconcile net income to non-GAAP net income:

                               

Stock-based compensation expense

    18,680       14,842       78,699       60,607  

Amortization of acquisition-related intangible assets

    -       197       110       841  

Deferred compensation plan expense

    235       458       189       431  

Tax effect

    (2,937 )     1,432       (10,128 )     (313 )

Non-GAAP net income

  $ 48,414     $ 44,567     $ 177,709     $ 166,834  

Non-GAAP net income as a percentage of revenue

    29.0 %     29.0 %     28.3 %     28.6 %
                                 

Non-GAAP net income per share:

                               

Basic

  $ 1.11     $ 1.05     $ 4.12     $ 3.95  

Diluted

  $ 1.04     $ 0.99     $ 3.88     $ 3.74  
                                 

Shares used in the calculation of non-GAAP net income per share:

                               

Basic

    43,496       42,467       43,165       42,247  

Diluted

    46,503       45,058       45,763       44,602  

 

 

 

 

RECONCILIATION OF GROSS MARGIN TO NON-GAAP GROSS MARGIN

(Unaudited, in thousands)

 

   

Three Months Ended December 31,

   

Year Ended December 31,

 
   

2019

   

2018

   

2019

   

2018

 

Gross profit

  $ 91,936     $ 84,593     $ 346,325     $ 322,668  

Gross margin

    55.1 %     55.1 %     55.2 %     55.4 %
                                 

Adjustments to reconcile gross profit to non-GAAP gross profit:

                               

Stock-based compensation expense

    574       504       2,409       1,888  

Deferred compensation plan expense

    29       -       54       -  

Amortization of acquisition-related intangible assets

    -       197       110       841  

Non-GAAP gross profit

  $ 92,539     $ 85,294     $ 348,898     $ 325,397  

Non-GAAP gross margin

    55.5 %     55.6 %     55.6 %     55.9 %

 

RECONCILIATION OF OPERATING EXPENSES TO NON-GAAP OPERATING EXPENSES

(Unaudited, in thousands)

 

   

Three Months Ended December 31,

   

Year Ended December 31,

 
   

2019

   

2018

   

2019

   

2018

 

Total operating expenses

  $ 61,242     $ 51,516     $ 243,763     $ 209,180  
                                 

Adjustments to reconcile total operating expenses to non-GAAP total operating expenses:

                               

Stock-based compensation expense

    (18,106 )     (14,338 )     (76,290 )     (58,719 )

Deferred compensation plan (expense) income

    (1,383 )     1,513       (3,941 )     591  

Non-GAAP operating expenses

  $ 41,753     $ 38,691     $ 163,532     $ 151,052  

 

RECONCILIATION OF OPERATING INCOME TO NON-GAAP OPERATING INCOME

(Unaudited, in thousands)

 

   

Three Months Ended December 31,

   

Year Ended December 31,

 
   

2019

   

2018

   

2019

   

2018

 

Total operating income

  $ 30,694     $ 33,077     $ 102,562     $ 113,488  
                                 

Adjustments to reconcile total operating income to non-GAAP total operating income:

                               

Stock-based compensation expense

    18,680       14,842       78,699       60,607  

Amortization of acquisition-related intangible assets

    -       197       110       841  

Deferred compensation plan expense (income)

    1,412       (1,513 )     3,995       (591 )

Non-GAAP operating income

  $ 50,786     $ 46,603     $ 185,366     $ 174,345  

 

RECONCILIATION OF INTEREST AND OTHER INCOME (EXPENSE), NET, TO NON-GAAP INTEREST AND OTHER INCOME, NET

(Unaudited, in thousands)

 

   

Three Months Ended December 31,

   

Year Ended December 31,

 
   

2019

   

2018

   

2019

   

2018

 

Total interest and other income (expense), net

  $ 2,731     $ (393 )   $ 10,558     $ 4,994  
                                 

Adjustments to reconcile interest and other income (expense) to non-GAAP interest and other income:

                               

Deferred compensation plan (income) expense

    (1,176 )     1,971       (3,806 )     1,022  

Non-GAAP interest and other income, net

  $ 1,555     $ 1,578     $ 6,752     $ 6,016  

 

RECONCILIATION OF INCOME BEFORE INCOME TAXES TO NON-GAAP INCOME BEFORE INCOME TAXES

(Unaudited, in thousands)

 

   

Three Months Ended December 31,

   

Year Ended December 31,

 
   

2019

   

2018

   

2019

   

2018

 

Total income before income taxes

  $ 33,425     $ 32,684     $ 113,120     $ 118,482  
                                 

Adjustments to reconcile income before income taxes to non-GAAP income before income taxes:

                               

Stock-based compensation expense

    18,680       14,842       78,699       60,607  

Amortization of acquisition-related intangible assets

    -       197       110       841  

Deferred compensation plan expense

    235       458       189       431  

Non-GAAP income before income taxes

  $ 52,340     $ 48,181     $ 192,118     $ 180,361  

 

 

 

 

2020 FIRST QUARTER OUTLOOK

RECONCILIATION OF GROSS MARGIN TO NON-GAAP GROSS MARGIN

(Unaudited)

 

   

Three Months Ending

 
   

March 31, 2020

 
   

Low

   

High

 

Gross margin

    55.1 %     55.7 %

Adjustments to reconcile gross margin to non-GAAP gross margin:

               

Stock-based compensation expense

    0.3 %     0.3 %

Non-GAAP gross margin

    55.4 %     56.0 %

 

RECONCILIATION OF R&D AND SG&A EXPENSES TO NON-GAAP R&D AND SG&A EXPENSES

(Unaudited, in thousands)

 

   

Three Months Ending

 
   

March 31, 2020

 
   

Low

   

High

 

R&D and SG&A expense

  $ 58,400     $ 62,400  

Adjustments to reconcile R&D and SG&A expense to non-GAAP R&D and SG&A expense:

               

Stock-based compensation expense

    (17,400 )     (19,400 )

Non-GAAP R&D and SG&A expense

  $ 41,000     $ 43,000  

 

View differences made from one to another to evaluate Monolithic Power Systems Inc's financial trajectory

Compare SEC Filings Year-over-Year (YoY) and Quarter-over-Quarter (QoQ)
Sample 10-K Year-over-Year (YoY) Comparison

Compare this 8-K Corporate News to its predecessor by reading our highlights to see what text and tables were  removed  ,   added    and   changed   by Monolithic Power Systems Inc.

Continue

Never Miss A New SEC Filing Again


Real-Time SEC Filing Notifications
Screenshot taken from Gmail for a new 10-K Annual Report
Last10K.com Member Feature

Receive an e-mail as soon as a company files an Annual Report, Quarterly Report or has new 8-K corporate news.

Continue

We Highlighted This SEC Filing For You


SEC Filing Sentiment Analysis - Bullish, Bearish, Neutral
Screenshot taken from Wynn's 2018 10-K Annual Report
Last10K.com Member Feature

Read positive and negative remarks made by management in their entirety without having to find them in a 10-K/Q.

Continue

Widen Your SEC Filing Reading Experience


Increased Reading Area for SEC Filings
Screenshot taken from Adobe Inc.'s 10-Q Quarterly Report
Last10K.com Member Feature

Remove data columns and navigations in order to see much more filing content and tables in one view

Continue

Uncover Actionable Information Inside SEC Filings


SEC Filing Disclosures
Screenshot taken from Lumber Liquidators 10-K Annual Report
Last10K.com Member Feature

Read both hidden opportunities and early signs of potential problems without having to find them in a 10-K/Q

Continue

Adobe PDF, Microsoft Word and Excel Downloads


Download Annual and Quarterly Reports as PDF, Word and Excel Documents
Screenshots of actual 10-K and 10-Q SEC Filings in PDF, Word and Excel formats
Last10K.com Member Feature

Export Annual and Quarterly Reports to Adobe PDF, Microsoft Word and Excel for offline viewing, annotations and analysis

Continue

FREE Financial Statements


Download Annual and Quarterly Reports as PDF, Word and Excel Documents
Screenshot of actual balance sheet from company 10-K Annual Report
Last10K.com Member Feature

Get one-click access to balance sheets, income, operations and cash flow statements without having to find them in Annual and Quarterly Reports

Continue for FREE

Intrinsic Value Calculator


Intrinsic Value Calculator
Screenshot of intrinsic value for AT&T (2019)
Last10K.com Member Feature

Our Intrinsic Value calculator estimates what an entire company is worth using up to 10 years of financial ratios to determine if a stock is overvalued or not

Continue

Financial Stability Report


Financial Stability Report
Screenshot of financial stability report for Coco-Cola (2019)
Last10K.com Member Feature

Our Financial Stability reports uses up to 10 years of financial ratios to determine the health of a company's EPS, Dividends, Book Value, Return on Equity, Current Ratio and Debt-to-Equity

Continue

Get a Better Picture of a Company's Performance


Financial Ratios
Available Financial Ratios
Last10K.com Member Feature

See how over 70 Growth, Profitability and Financial Ratios perform over 10 Years

Continue

Log in with your credentials

or    

Forgot your details?

Create Account