Power Integrations Announces Third Quarter 2002 Results

October 23, 2002
Now expects to achieve the higher end of its 10 to 15 percent revenue growth guidance for 2002

Q32002 Balance Sheet
Q32002 Income Statement

SAN JOSE, CALIF. – October 23, 2002 -- Power Integrations, Inc. (Nasdaq:POWI) today announced financial results for its third quarter ended September 30, 2002.

Net revenues for the third quarter of 2002 increased 4 percent to $28.2 million from $27.1 million in the second quarter of 2002 and 22 percent from $23.0 million in the third quarter of 2001. Net income for the third quarter increased 8 percent to $2.3 million, or $0.08 per diluted share, from $2.1 million, or $0.07 per diluted share in the second quarter. For the same period last year, the company reported net income of $0.92 million, or $0.03 per diluted share.

“During the third quarter we continued to see the positive impact of our efforts to diversify our end markets and broaden our customer base,” said Balu Balakrishnan, president and chief executive officer of Power Integrations. “This strategy, combined with our success in penetrating existing markets, has allowed us to grow despite the weakness in our end markets. We continue to gain share as markets migrate to our highly integrated solution. We are now confident that we will achieve the higher end of our guidance, provided at the beginning of the year, of 10 to 15 percent revenue growth for 2002.”

“We are also pleased with the significant manufacturing cost reductions we achieved during the quarter. We expect these savings to flow through our inventory, resulting in improved gross margins beginning in the first quarter of 2003.”

Future Outlook

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

Based on currently available information, the company expects revenues in the fourth quarter to range from flat to up 4 percent sequentially. Gross margin is expected to be flat to slightly higher compared to the third quarter. Operating expenses are expected to increase 1 to 3 percent sequentially as the company increases its investment in new product and market development. As a result of the above, earnings per share in the fourth quarter should be in the range of $0.08 to $0.09 per share.

For the full year 2002, the company is on track to achieve the higher end of its projected 10 to 15 percent revenue growth. The company also expects to achieve the higher end of the EPS guidance of $0.25 to $0.30. Based on the results of the first nine months of the year and current indicators, the company has revised its expectations for revenue mix by market for 2002 as follows: Communications - 42 percent, Consumer – 25 percent, Computer - 21 percent, Industrial - 6 percent and All Other - 6 percent.

Conference Call

Power Integrations will broadcast its conference call discussion of its 2002 third quarter results and other developments for the company live over the Internet on Wednesday, October 23, 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”, “should”, “outlook” 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, 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. The company is under no obligation (and expressly disclaims any obligation) to update or alter its forward-looking statements, whether as a result of new information, future events or otherwise.

About Power Integrations

Power Integrations, Inc. is a leading supplier of high-voltage analog integrated circuits for use in AC to DC and DC 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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Power Integrations
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5245 Hellyer Avenue San Jose, CA. 95138

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