MPS(MPWR) - 2024 Q4 - Annual Report

Financial Performance - Revenue for the year ended December 31, 2024, was $2.2 billion, an increase of$ 386.0 million, or 21.2%, from $1.8 billion in 2023[226]. - Gross profit for 2024 was$ 1.2 billion, representing a gross margin of 55.3%, compared to $1.0 billion and 56.1% in 2023[225]. - Operating income for 2024 was$ 539.4 million, or 24.4% of revenue, down from $481.7 million, or 26.5% in 2023[225]. - Net income for 2024 was$ 1.8 billion, or 81.0% of revenue, significantly up from $427.4 million, or 23.5% in 2023[225]. - Revenue for the year ended December 31, 2024, reached$ 2,207.1 million, a 21.2% increase from $1,821.1 million in 2023[298]. - Gross profit for 2024 was$ 1,220.9 million, up from $1,021.1 million in 2023, reflecting a gross margin improvement[298]. - Operating income increased to$ 539.4 million in 2024, compared to $481.7 million in 2023, representing an increase of 11.9%[298]. - Net income surged to$ 1,786.7 million in 2024, a significant increase from $427.4 million in 2023, marking a growth of 318.5%[301]. - Basic net income per share for 2024 was$ 36.76, compared to $8.98 in 2023, indicating a substantial increase of 309.5%[298]. - The company reported a comprehensive income of$ 1,765.3 million for 2024, up from $423.4 million in 2023, an increase of 317.5%[301]. Revenue Breakdown - Revenue from the enterprise data market increased by$ 393.3 million, or 121.8%, primarily due to higher sales of power management solutions for AI applications[228]. - Revenue from the automotive market increased by $19.3 million, or 4.9%, driven by increased sales of applications supporting advanced driver assistance systems[228]. - Revenue from the consumer market decreased by$ 32.6 million, or 13.9%, due to broad market weakness[228]. Expenses - Cost of revenue for 2024 was $986.2 million, or 44.7% of revenue, compared to$ 800.0 million, or 43.9% in 2023[230]. - Research and development expenses for 2024 were $324.7 million, or 14.7% of revenue, up from$ 263.6 million, or 14.5% in 2023[225]. - Selling, general and administrative expenses for 2024 were $356.8 million, or 16.2% of revenue, compared to$ 275.7 million, or 15.1% in 2023[225]. - Total operating expenses for 2024 were $681.5 million, up from$ 539.4 million in 2023, representing a 26.3% increase[298]. Cash Flow and Liquidity - Cash and cash equivalents totaled $691.8 million as of December 31, 2024, compared to$ 527.8 million in 2023, with total cash, cash equivalents, and short-term investments at $862.9 million[244]. - Net cash provided by operating activities was$ 788.4 million for the year ended December 31, 2024, an increase of $150.2 million compared to the prior period, attributed to improved accounts receivable collections[246]. - The company repatriated$ 642 million of cash from a foreign subsidiary to the U.S. in 2024, compared to $140 million in 2023, with proceeds primarily used for stock repurchase and dividend programs[244]. - Cash flows from operating activities amounted to$ 788.4 million in 2024, compared to $638.2 million in 2023, reflecting a growth of 23.5%[306]. Assets and Liabilities - Total assets grew to$ 3.62 billion in 2024, up from $2.43 billion in 2023[295]. - The company reported total current liabilities of$ 294.6 million in 2024, an increase from $235.0 million in 2023[295]. - Total stockholders' equity increased to$ 3.15 billion in 2024 from $2.05 billion in 2023[295]. - The company's inventories totaled$ 419.6 million as of December 31, 2024, representing 11.6% of total assets[274]. Tax and Incentives - The net income tax benefit for the year ended December 31, 2024, was $1.2 billion, or 211.9% of pre-tax income, significantly influenced by a ten-year tax incentive granted to a foreign subsidiary[238]. - A foreign tax incentive of$ 1.4 billion was granted, resulting in a net deferred tax asset of $1.3 billion[279]. Stock and Dividends - A new stock repurchase program was approved in February 2025, authorizing the repurchase of up to$ 500.0 million of common stock through February 2028[256]. - The quarterly cash dividend was increased from $1.25 per share to$ 1.56 per share, payable on April 15, 2025, to stockholders of record as of March 31, 2025[258]. - The company declared dividends of $5.00 per share in 2024, compared to$ 4.00 per share in 2023, reflecting a commitment to returning value to shareholders[304]. Acquisitions - The Company acquired 100% of Axign for $33.4 million in cash on January 3, 2024, with transaction costs of$ 0.4 million[359][360]. - Total identifiable net assets acquired from Axign amounted to $13.7 million, with goodwill of$ 19.7 million attributed to workforce and anticipated synergies[361][362]. Stock-Based Compensation - The company recognized total stock-based compensation expense of $205,640,000 for the year ended December 31, 2024, an increase of 37.4% from$ 149,711,000 in 2023[383]. - The intrinsic value of vested RSUs was $513.0 million,$ 461.3 million, and $336.8 million for the years ended December 31, 2024, 2023, and 2022, respectively[389]. - The total intrinsic value of all outstanding RSUs as of December 31, 2024, was$ 990.0 million, based on a closing stock price of $591.70[389]. - The company granted 50,000 PSUs to executive officers in February 2024, with a total stock-based compensation cost of$ 154.3 million assuming the highest level of performance goals is achieved[392]. Environmental Goals - The company expects to achieve a reduction of 25% in global combined Scope 1 and Scope 2 greenhouse gas emissions by 2026 against a 2022 baseline as part of its performance goals for PSUs[392].