Power Integrations Announces First Quarter 2002 Results

April 25, 2002
Company Exceeds Expectations as Design Wins Accelerate

1Q2002 Balance Sheet
Q12002 Income Statement

SAN JOSE, CALIF. - April 25, 2002 -- Power Integrations, Inc. (Nasdaq:POWI) today announced financial results for its first quarter ended March 31, 2002.

Net revenues for the first quarter of 2002 were $23.7 million compared with net revenues of $23.6 million in the fourth quarter of 2001. Net income for the first quarter was $1.6 million, or $0.05 per diluted share on approximately 29.4 million shares outstanding. This compares with fourth quarter net income of $1.3 million, or $0.04 per diluted share on approximately 29.7 million shares outstanding.

"The positive results we achieved during the first quarter reflect the company's continued penetration into new applications and stabilization in our markets," said Balu Balakrishnan, president and chief executive officer of Power Integrations. "Increased diversification of our revenue stream and further penetration of existing markets, helped mitigate the seasonal decline we normally see in the first quarter."

"Acceptance of our new products, TOPSwitch GX and TinySwitch II continues to strengthen and we are pleased with the accelerated design activity we are seeing, particularly in LCD monitor, PC standby, home appliance and cell phone charger applications. The growth of these products and the positive feedback we are receiving from the products we plan to introduce this year further confirm that markets are moving toward our highly integrated solution. In addition, we continue to protect our market leadership by enhancing our intellectual property. In the first quarter, we added three U.S. and one foreign patents bringing the total to 42 U.S. and 52 foreign patents."

Future Outlook

The following statements are based on current expectations. These statements are forward looking, and actual results may differ materially.

Based upon current backlog information and order rate trends, the company expects revenue in the second quarter to grow 4 to 8 percent sequentially. Gross margin is expected to be similar to the first quarter. Operating expenses are expected to increase 3 to 5 percent sequentially as we increase our spending for new product and market development. As a result of the above, earnings per share in the second quarter should be in the range of $0.05 to $0.06.

Our outlook for all of 2002 remains unchanged. The company anticipates 2002 revenue to grow 10 to 15 percent from 2001. Earnings per share are expected to be in the range of $0.25 to $0.30. The company currently anticipates its revenue mix by market for 2002 to be; Communications - 35 percent, Consumer - 30 percent, Computer - 25 percent, Industrial - 7 percent and All Other - 3 percent.

Conference Call

Power Integrations will broadcast its conference call discussion of its 2002 first quarter results and other developments for the company live over the Internet on Thursday April 25, 2002, 1:30 P.M. PDT (4:30 P.M. EDT). Interested parties may access the conference call over the Internet through the Investor Relations section of the Power Integrations web site at www.powerint.com. To listen to the live call, please go to the web site at least 15 minutes early to download and install any necessary audio software. A replay of the conference call will be indexed and archived on the company's site and will be available two hours following completion of the event.

Safe Harbor Statement

This press release contains forward-looking statements, which reflect management's current forecast of certain aspects of the company's future business. These forward looking statements are based on current information which we have assessed, but which by its nature, is subject to rapid and even abrupt changes. Forward looking statements are denoted by the use of such words and phrases as "will", "expect", "believe", "should", "anticipate", "outlook", "if" and similar words and phrases that look toward future events or performance. The company's actual results could differ materially from those projected or implied by our forward looking statements due to risks and uncertainties associated with the company's business. These risks include, but are not limited to, changes and shifts in customer demand away from products that integrate the company's ICs to products that do not. Other factors include, but are not limited to, our ability to maintain and establish strategic relationships; the effects of competition; the risks inherent in the development and delivery of complex technologies; our ability to attract, retain and motivate qualified personnel; the emergence of new markets for our products and services, and our ability to compete in those markets based on timeliness, cost and market demand; and our limited financial resources. New product introductions are subject to the risks and uncertainties that typically accompany development and delivery of complex technologies to the market place, including product development delays and defects. We more fully discuss these and other risk factors in the company's most recent reports on Form 10-K and Form 10-Q filed with the Securities and Exchange Commission.

About Power Integrations

Power Integrations, Inc. is a leading supplier of high-voltage analog integrated circuits for use in AC to DC power conversion. For more information, visit the company's web site at: www.powerint.com or contact the company at 5245 Hellyer Ave., San Jose, Calif. 95138; (408) 414-9200.

NASDAQ: POWI $119.08 -1.23
-1.02% Volume: 129,556 August 7, 2020

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Joe Shiffler
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(408) 414-8528

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Power Integrations
Attn: Investor Relations
5245 Hellyer Avenue San Jose, CA. 95138

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College Station, TX 77842
Phone: (781) 575-2879

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