MPS(MPWR) - 2024 Q2 - Quarterly Report

Revenue Performance - Revenue for the three months ended June 30, 2024, was $507.4 million, an increase of$ 66.3 million, or 15.0%, from $441.1 million for the same period in 2023[114] - Revenue for the six months ended June 30, 2024, was$ 965.3 million, an increase of $73.1 million, or 8.2%, from$ 892.2 million for the same period in 2023[117] - Revenue from the enterprise data market increased $139.2 million, or 290.2%, primarily due to higher sales of power management solutions for AI applications[116] - Revenue from the enterprise data market increased$ 241.8 million, or 254.1%, primarily due to higher sales of power management solutions for AI applications[117] - Revenue from the storage and computing market decreased $9.6 million, or 7.7%, primarily due to lower sales of storage and graphic card applications[116] - Automotive revenue decreased$ 17.2 million, or 16.5%, primarily due to lower sales of applications supporting body electronics, digital cockpits, and infotainment[116] - Revenue from the communications market decreased $5.7 million, or 11.6%, driven by lower demand for infrastructure-related products[116] - Consumer market revenue decreased$ 23.0 million, or 35.2%, primarily due to lower sales of products for gaming and home appliances[116] - Industrial market revenue decreased $17.5 million, or 35.1%, mainly driven by lower sales of products related to industrial meter, power source, and security applications[116] Profitability Metrics - Gross profit margin for the three months ended June 30, 2024, was 44.7%, compared to 43.9% for the same period in 2023[114] - Operating income for the three months ended June 30, 2024, was$ 116.5 million, representing 23.0% of revenue, compared to $112.3 million, or 25.5% of revenue, for the same period in 2023[114] - Gross margin for the six months ended June 30, 2024, was 55.2%, down from 56.8% for the same period in 2023, primarily due to increased inventory write-downs and warranty expenses[122] Expenses - R&D expenses for the six months ended June 30, 2024, were$ 153.9 million, or 15.9% of revenue, compared to $127.4 million, or 14.3% of revenue for the same period in 2023[125] - SG&A expenses for the six months ended June 30, 2024, were$ 167.1 million, or 17.3% of revenue, compared to $142.5 million, or 16.0% of revenue for the same period in 2023[129] Cash and Assets - Cash and cash equivalents as of June 30, 2024, were$ 550.5 million, an increase from $527.8 million as of December 31, 2023[134] - Net cash provided by operating activities for the six months ended June 30, 2024, was$ 389.0 million, an increase of $80.0 million compared to the same period in 2023[135] - Total current assets as of June 30, 2024, were$ 1,997.4 million, compared to $1,819.5 million as of December 31, 2023[134] Tax and Liabilities - The income tax expense for the six months ended June 30, 2024, was$ 36.2 million, or 15.8% of pre-tax income, consistent with the effective tax rate from the same period in 2023[131] - The transition tax liability as of June 30, 2024, totaled $6.2 million, all classified as short-term[140] - Operating lease obligations as of June 30, 2024, amounted to$ 15.5 million, with $2.4 million classified as short-term[141] - Other long-term obligations, including deferred compensation plan liabilities and accrued dividend equivalents, totaled$ 83.6 million as of June 30, 2024[143] Shareholder Returns - The company plans to continue its stock repurchase program and pay cash dividends, indicating a commitment to returning value to shareholders[105] - The company has a stock repurchase program authorized for up to $640.0 million through October 29, 2026, with$ 627.6 million remaining available for future repurchases as of June 30, 2024[141] - Accrued dividends as of June 30, 2024, totaled $60.9 million, with future declarations at the discretion of the Board of Directors[142] Market Risk - There were no material changes in market risk assessment during the three and six months ended June 30, 2024, compared to December 31, 2023[144]