Power Integrations Inc (POWI) SEC Filing 10-Q Quarterly report for the period ending Sunday, September 30, 2018

Exhibit 99.1

Power Integrations Reports Third-Quarter Financial Results

GAAP earnings were $0.59 per diluted share; non-GAAP earnings were $0.77 per diluted share; revenues were $110.1 million

Board of directors authorizes use of $80 million for share repurchases

SAN JOSE, Calif.--(BUSINESS WIRE)--October 25, 2018--Power Integrations (Nasdaq: POWI) today announced financial results for the quarter ended September 30, 2018. Net revenues for the third quarter were $110.1 million, an increase of one percent from the prior quarter and a decrease of one percent from the third quarter of 2017. Net income for the quarter was $17.7 million or $0.59 per diluted share, compared to net income of $0.51 per diluted share in the prior quarter and $0.54 per diluted share in the third quarter of 2017. Cash flow from operations was $23.2 million for the quarter.

In addition to its GAAP results, the company provided certain non-GAAP financial measures that exclude stock-based compensation expenses, amortization of acquisition-related intangible assets and the tax effects of these items. Non-GAAP net income for the third quarter of 2018 was $23.2 million or $0.77 per diluted share, compared with $0.74 per diluted share in the prior quarter and $0.78 per diluted share in the third quarter of 2017.

Commented Balu Balakrishnan, president and CEO of Power Integrations: “Although revenues fell short of our expectations, we delivered healthy earnings driven by a slightly better-than-expected gross margin and lower-than-expected operating expenses. We are projecting lower revenues in the fourth quarter reflecting ongoing inventory reductions across the supply chain and softer demand in China, particularly in the appliance market. Nevertheless, we remain optimistic about the growth opportunities ahead of us in 2019 and beyond. As a reflection of our confidence, our board has allocated an additional $80 million for share repurchases – the largest buyback program in our history.”