KIRKLAND, Wash., May 02, 2019 (GLOBE NEWSWIRE) -- Monolithic Power Systems, Inc. (MPS) (Nasdaq: MPWR), a leading company in high performance analog solutions, today announced financial results for the quarter ended March 31, 2019.

• Revenue was $141.4 million for the quarter ended March 31, 2019, a 7.9% decrease from $153.5 million for the quarter ended December 31, 2018 and a 9.5% increase from $129.2 million for the quarter ended March 31, 2018.
   
• GAAP gross margin was 55.2% for the quarter ended March 31, 2019, compared with 55.4% for the quarter ended March 31, 2018.
   
• Non-GAAP (1) gross margin was 55.6% for the quarter ended March 31, 2019, excluding the impact of $0.5 million for stock-based compensation expense and $0.1 million for the amortization of acquisition-related intangible assets, compared with 55.9% for the quarter ended March 31, 2018, excluding the impact of $0.4 million for stock-based compensation expense and $0.3 million for the amortization of acquisition-related intangible assets.
   
• GAAP operating expenses were $56.3 million for the quarter ended March 31, 2019, compared with $49.5 million for the quarter ended March 31, 2018.
   
• Non-GAAP (1) operating expenses were $39.0 million for the quarter ended March 31, 2019, excluding $15.5 million for stock-based compensation expense and $1.8 million for deferred compensation plan expense, compared with $35.0 million for the quarter ended March 31, 2018, excluding $14.6 million for stock-based compensation expense and $0.1 million for deferred compensation plan income.
   
• GAAP operating income was $21.7 million for the quarter ended March 31, 2019, compared with $22.0 million for the quarter ended March 31, 2018.
   
• Non-GAAP (1) operating income was $39.6 million for the quarter ended March 31, 2019, excluding $16.0 million for stock-based compensation expense, $0.1 million for the amortization of acquisition-related intangible assets and $1.8 million for deferred compensation plan expense, compared with $37.2 million for the quarter ended March 31, 2018, excluding $15.0 million for stock-based compensation expense, $0.3 million for the amortization of acquisition-related intangible assets and $0.1 million for deferred compensation plan income.
   
• GAAP interest and other income, net was $3.3 million for the quarter ended March 31, 2019, compared with $0.4 million for the quarter ended March 31, 2018.
   
• Non-GAAP (1) interest and other income, net was $1.4 million for the quarter ended March 31, 2019, excluding $1.9 million for deferred compensation plan income, compared with $0.6 million for the quarter ended March 31, 2018, excluding $0.2 million for deferred compensation plan expense.
   
• GAAP income before income taxes was $25.1 million for the quarter ended March 31, 2019, compared with $22.5 million for the quarter ended March 31, 2018.
   
• Non-GAAP (1) income before income taxes was $41.0 million for the quarter ended March 31, 2019, excluding $16.0 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 income, compared with $37.8 million for the quarter ended March 31, 2018, excluding $15.0 million for stock-based compensation expense and $0.3 million for the amortization of acquisition-related intangible assets.
   
• GAAP net income was $26.2 million and GAAP earnings per share were $0.58 per diluted share for the quarter ended March 31, 2019. Comparatively, GAAP net income was $21.9 million and GAAP earnings per share were $0.49 per diluted share for the quarter ended March 31, 2018.
   
• Non-GAAP (1) net income was $37.9 million and non-GAAP earnings per share were $0.84 per diluted share for the quarter ended March 31, 2019, excluding stock-based compensation expense, amortization of acquisition-related intangible assets, net deferred compensation plan income and related tax effects, compared with non-GAAP net income of $35.0 million and non-GAAP earnings per share of $0.79 per diluted share for the quarter ended March 31, 2018, excluding stock-based compensation income, 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):

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

“For the second half of the year, we still see some uncertainty in our end markets and remain cautious," said Michael Hsing, CEO and founder of MPS. "We will continue to adapt to the changing market conditions and execute as planned,"

Business Outlook

The following are MPS’ financial targets for the second quarter ending June 30, 2019:

• Revenue in the range of $147.5 million to $153.5 million.
   
• GAAP gross margin between 54.9% and 55.5%. Non-GAAP (1) gross margin between 55.3% and 55.9%, which excludes an estimated impact of stock-based compensation expenses of 0.4%.
   
• GAAP research and development (“R&D”) and selling, general and administrative (“SG&A”) expenses between $55.5 million and $59.5 million. Non-GAAP (1) R&D and SG&A expenses between $38.5 million and $40.5 million, which excludes an estimate of stock-based compensation expenses in the range of $17.0 million to $19.0 million.
   
• Total stock-based compensation expense of $17.6 million to $19.6 million.
   
• Litigation expenses ranging between $300,000 and $500,000.
   
• Interest and other income, net, of $1.4 million to $1.6 million before foreign exchange gains or losses.
   
• Fully diluted shares outstanding between 45.1 million and 46.1 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 and amortization of acquisition-related intangible assets. 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.