mpwr20240331

mpwr20240331_10q.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2024

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission file number: 000-51026

Monolithic Power Systems, Inc.

(Exact name of registrant

as specified in its charter)

Delaware

77-0466789

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer

Identification Number)

5808 Lake Washington Blvd. NE, Kirkland, Washington 98033

(Address of principal executive offices)(Zip Code)

(425) 296-9956

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol

Name of each exchange on which

registered

Common Stock, par value $0.001

per share

MPWR

The NASDAQ Global Select Market

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Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☒	Accelerated filer ☐	Non-accelerated filer ☐
Smaller reporting company ☐	Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

There were 48,672,000 shares of the registrant’s common stock issued and outstanding as of April 26, 2024.

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MONOLITHIC POWER SYSTEMS, INC.

Form 10-Q

For the Quarter Ended March 31, 2024

TABLE OF CONTENTS

		PAGE
PART I. FINANCIAL INFORMATION		4
Item 1.	Financial Statements (unaudited)	4
	Condensed Consolidated Balance Sheets	4
	Condensed Consolidated Statements of Operations	5
	Condensed Consolidated Statements of Comprehensive Income	6
	Condensed Consolidated Statements of Stockholders’ Equity	7
	Condensed Consolidated Statements of Cash Flows	8
	Notes to Condensed Consolidated Financial Statements	9
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	28
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	35
Item 4.	Controls and Procedures	35

PART II. OTHER INFORMATION		36
Item 1.	Legal Proceedings	36
Item 1A.	Risk Factors	36
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	37
Item 3.	Defaults Upon Senior Securities	37
Item 4.	Mine Safety Disclosures	37
Item 5.	Other Information	37
Item 6.	Exhibits	38

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PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

MONOLITHIC POWER SYSTEMS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except par value)

(Unaudited)

	*March 31,*			*December 31,*
	*2024*			*2023*
ASSETS
Current assets:
Cash and cash equivalents	$	488,273		$	527,843
Short-term investments		798,116			580,633
Accounts receivable, net		194,428			179,858
Inventories		395,990			383,702
Other current assets		99,685			147,463
Total current assets		1,976,492			1,819,499
Property and equipment, net		375,573			368,952
Acquisition-related intangible assets, net		9,518			-
Goodwill		27,311			6,571
Deferred tax assets, net		32,784			28,054
Other long-term assets		157,023			211,277
Total assets	$	2,578,701		$	2,434,353

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	103,471		$	62,958
Accrued compensation and related benefits		70,541			56,286
Other accrued liabilities		137,868			115,791
Total current liabilities		311,880			235,035
Income tax liabilities		66,337			60,724
Other long-term liabilities		86,927			88,655
Total liabilities		465,144			384,414
Commitments and contingencies
Stockholders’ equity:
Common stock and additional paid-in capital: $0.001 par value; shares authorized: 150,000; shares issued and outstanding: 48,667 and 48,028, respectively		1,176,382			1,129,937
Retained earnings		977,724			947,064
Accumulated other comprehensive loss		(40,549	)		(27,062	)
Total stockholders’ equity		2,113,557			2,049,939
Total liabilities and stockholders’ equity	$	2,578,701		$	2,434,353

See accompanying notes to unaudited condensed consolidated financial statements.

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MONOLITHIC POWER SYSTEMS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per-share amounts)

(Unaudited)

	*Three Months Ended March 31,*
	*2024*		*2023*
Revenue	$	457,885	$	451,065
Cost of revenue		205,444		192,285
Gross profit		252,441		258,780
Operating expenses:
Research and development		75,990		63,709
Selling, general and administrative		80,964		70,795
Total operating expenses		156,954		134,504
Operating income		95,487		124,276
Other income, net		9,540		5,297
Income before income taxes		105,027		129,573
Income tax expense		12,486		19,771
Net income	$	92,541	$	109,802

Net income per share:
Basic	$	1.90	$	2.32
Diluted	$	1.89	$	2.26
Weighted-average shares outstanding:
Basic		48,635		47,234
Diluted		48,928		48,655

See accompanying notes to unaudited condensed consolidated financial statements.

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MONOLITHIC POWER SYSTEMS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In thousands)

(Unaudited)

	*Three Months Ended March 31,*
	*2024*			*2023*
Net income	$	92,541		$	109,802
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments		(13,822	)		2,919
Change in unrealized gains and losses on available-for-sale securities, net of tax of $(248) and $311, respectively		335			2,213
Other comprehensive income (loss), net of tax:		(13,487	)		5,132
Comprehensive income	$	79,054		$	114,934

See accompanying notes to unaudited condensed consolidated financial statements.

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MONOLITHIC POWER SYSTEMS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(In thousands, except per-share amounts)

(Unaudited)

										*Accumulated*
	*Common Stock and*									*Other*			*Total*
	*Additional Paid-in Capital*						*Retained*			*Comprehensive*			*Stockholders’*
Three Months Ended March 31, 2024	*Shares*			*Amount*			*Earnings*			*Loss*			*Equity*
Balance as of January 1, 2024		48,028		$	1,129,937		$	947,064		$	(27,062	)	$	2,049,939
Net income		-			-			92,541			-			92,541
Other comprehensive loss		-			-			-			(13,487	)		(13,487	)
Dividends and dividend equivalents declared ($1.25 per share)		-			-			(61,881	)		-			(61,881	)
Common stock issued under the employee equity incentive plan		634			-			-			-			-
Common stock issued under the employee stock purchase plan		11			4,606			-			-			4,606
Repurchases of common stock		(6	)		(4,076	)		-			-			(4,076	)
Stock-based compensation expense		-			45,915			-			-			45,915
Balance as of March 31, 2024		48,667		$	1,176,382		$	977,724		$	(40,549	)	$	2,113,557

								*Accumulated*
	*Common Stock and*							*Other*			*Total*
	*Additional Paid-in Capital*				*Retained*			*Comprehensive*			*Stockholders’*
Three Months Ended March 31, 2023	*Shares*		*Amount*		*Earnings*			*Loss*			*Equity*
Balance as of January 1, 2023		47,107	$	975,276	$	716,403		$	(23,077	)	$	1,668,602
Net income		-		-		109,802			-			109,802
Other comprehensive income		-		-		-			5,132			5,132
Dividends and dividend equivalents declared ($1.00 per share)		-		-		(49,130	)		-			(49,130	)
Common stock issued under the employee equity incentive plan		295		1,110		-			-			1,110
Common stock issued under the employee stock purchase plan		9		3,737		-			-			3,737
Stock-based compensation expense		-		37,008		-			-			37,008
Balance as of March 31, 2023		47,411	$	1,017,131	$	777,075		$	(17,945	)	$	1,776,261

See accompanying notes to unaudited condensed consolidated financial statements.

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MONOLITHIC POWER SYSTEMS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

	*Three Months Ended March 31,*
	*2024*		*2023*
Cash flows from operating activities:
Net income	$	92,541	$	109,802

SEC Form 10-Q filed by Monolithic Power Systems Inc.