Power Integrations Beats Earnings Estimates (POWI)

Power Integrations, Inc.

reports Q2 earnings of $0.60 versus estimates of $0.52. Power Integrations, Inc. reports Q2 revenues of $79.9 million versus estimates of $76.22 million. Revenues increased 62.1% year over year. "Our second-quarter results were strong across the board, with record revenues, significant margin expansion and strong cash flow. Our quarterly revenues have nearly doubled over the past five quarters, and we are almost 50 percent above our pre-recession peak in the third quarter of 2008." Regarding the company's third-quarter outlook, Mr. Balakrishnan noted: "We saw exceptionally strong sales in Europe during the second quarter due to distributor transitions that resulted in some end-customer purchases being pulled into the second quarter. Although this will have the effect of reducing our sequential growth rate in the third quarter, this is simply a matter of timing." "Also, our third-quarter sales are likely to be constrained by shortages of our LinkSwitch-II products, which continue to be in high demand. Nevertheless, we expect third-quarter revenues to be in the range of $78 million to $82 million, which would be an increase of 30 percent or more from last year's strong third quarter." The company added that it expects its third-quarter gross margin to be between 51 percent and 52 percent, with operating expenses between $23.5 million and $24.5 million including approximately $2.7 million of stock-based compensation expenses.