Monolithic Power Systems Q3 2024 Financial Results

Monolithic Power Systems, Inc. (MPS), a fabless global company specializing in high-performance, semiconductor-based power electronics solutions, has released its financial results for the third quarter ended September 30, 2024. The company reported significant growth in revenue and maintained strong margins, reflecting its robust business strategy and market position.

Financial Highlights

For the third quarter of 2024, MPS reported:

• Revenue: $620.1 million, a 22.2% increase from $507.4 million in Q2 2024 and a 30.6% increase from $474.9 million in Q3 2023.
• GAAP Gross Margin: 55.4%, compared to 55.5% in Q3 2023.
• Non-GAAP Gross Margin: 55.8%, excluding stock-based compensation and related expenses, deferred compensation plan expense, and amortization of acquisition-related intangible assets.
• GAAP Operating Income: $164.0 million, up from $135.6 million in Q3 2023.
• Non-GAAP Operating Income: $220.8 million, excluding stock-based compensation and related expenses, deferred compensation plan expense, and amortization of acquisition-related intangible assets.
• GAAP Net Income: $144.4 million, or $2.95 per diluted share, compared to $121.2 million, or $2.48 per diluted share, in Q3 2023.
• Non-GAAP Net Income: $198.8 million, or $4.06 per diluted share, excluding stock-based compensation and related expenses, amortization of acquisition-related intangible assets, net deferred compensation plan expense, and related tax effects.

Business and Operational Highlights

MPS's revenue growth was driven by strong performance across various end markets:

• Enterprise Data: $184.5 million, up from $98.9 million in Q3 2023.
• Storage and Computing: $144.0 million, compared to $129.5 million in Q3 2023.
• Automotive: $111.3 million, up from $95.2 million in Q3 2023.
• Communications: $71.9 million, compared to $46.8 million in Q3 2023.
• Consumer: $64.4 million, up from $62.4 million in Q3 2023.
• Industrial: $44.0 million, compared to $42.1 million in Q3 2023.

Strategic Initiatives and Corporate Developments

MPS continues to focus on its long-term growth strategy, transforming from a chip supplier to a full solutions provider. The company reorganized its product family in Q2 2024 to better align with its strategic goals.

Management's Perspective

Michael Hsing, CEO and founder of MPS, stated, "Our results continue to demonstrate the success of our proven, long-term growth strategy and our transformation from being only a chip supplier to a full solutions provider."

Future Outlook

For the fourth quarter ending December 31, 2024, MPS has set the following financial targets:

• Revenue: $600.0 million to $620.0 million.
• GAAP Gross Margin: 55.2% to 55.8%.
• Non-GAAP Gross Margin: 55.5% to 56.1%.
• GAAP Operating Expenses: $170.7 million to $174.7 million.
• Non-GAAP Operating Expenses: $122.0 million to $124.0 million.
• Interest and Other Income: $6.2 million to $6.6 million before foreign exchange gains or losses.
• Non-GAAP Tax Rate: 12.5% for 2024.
• Fully Diluted Shares Outstanding: 48.8 million to 49.2 million.

SEC Filing: MONOLITHIC POWER SYSTEMS INC [ MPWR ] - 8-K - Oct. 30, 2024