POWER INTEGRATIONS INC - FORM 8-K - EX-99.2 - EXHIBIT 99.2

Attached files

file	filename
EX-99.1 - EXHIBIT 99.1 - POWER INTEGRATIONS INC	exhibit991_pressreleasex2x.htm
8-K - 8-K - POWER INTEGRATIONS INC	form8k_2x1x2017.htm

Exhibit 99.2

POWER INTEGRATIONS, INC.

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)



	Year Ended December 31, 2016
	First Quarter						Second Quarter						Third Quarter						Fourth Quarter
(In thousands, except per share amounts)	As Reported			Under New Standards			As Reported			Under New Standards			As Reported			Under New Standards			As Reported			Under New Standards
NET REVENUES	$	85,326		$	88,036		$	97,169		$	97,571		$	103,790		$	101,625		$	101,108		$	102,436
COST OF REVENUES	42,379			43,548			49,532			49,786			52,597			51,783			51,724			52,360
GROSS PROFIT	42,947			44,488			47,637			47,785			51,193			49,842			49,384			50,076

OPERATING EXPENSES:
Research and development	14,779			14,779			15,859			15,859			15,906			15,906			15,766			15,766
Sales and marketing	10,740			10,740			11,407			11,407			11,447			11,447			11,941			11,941
General and administrative	7,850			7,850			8,133			8,133			8,789			8,789			8,257			8,257
Amortization of acquisition-related intangible assets	666			666			611			611			582			582			584			584
Total operating expenses	34,035			34,035			36,010			36,010			36,724			36,724			36,548			36,548
INCOME FROM OPERATIONS	8,912			10,453			11,627			11,775			14,469			13,118			12,836			13,528
OTHER INCOME	261			261			236			236			282			282			299			299
INCOME BEFORE INCOME TAXES	9,173			10,714			11,863			12,011			14,751			13,400			13,135			13,827
PROVISION FOR (BENEFIT FROM) INCOME TAXES	330			335			598			604			586			591			(482		)	(476		)
NET INCOME	$	8,843		$	10,379		$	11,265		$	11,407		$	14,165		$	12,809		$	13,617		$	14,303

EARNINGS PER SHARE:
Basic	$	0.31		$	0.36		$	0.39		$	0.40		$	0.49		$	0.44		$	0.47		$	0.49
Diluted	$	0.30		$	0.35		$	0.38		$	0.39		$	0.48		$	0.43		$	0.46		$	0.48

SHARES USED IN PER SHARE CALCULATION:
Basic	28,679			28,679			28,850			28,850			28,972			28,972			29,196			29,196
Diluted	29,244			29,244			29,422			29,422			29,625			29,625			29,914			29,914

SUPPLEMENTAL INFORMATION:

REVENUE MIX BY END MARKET
Communications	23		%	23		%	27		%	26		%	28		%	28		%	30		%	29		%
Computer	6		%	6		%	6		%	6		%	5		%	5		%	6		%	6		%
Consumer	39		%	38		%	35		%	36		%	37		%	36		%	35		%	37		%
Industrial	32		%	33		%	32		%	32		%	30		%	31		%	29		%	28		%

Stock-based compensation expenses included in:
Cost of revenues	$	90		$	90		$	293		$	293		$	348		$	348		$	417		$	417
Research and development	1,469			1,469			1,940			1,940			1,934			1,934			1,966			1,966
Sales and marketing	1,027			1,027			899			899			1,303			1,303			1,260			1,260
General and administrative	1,830			1,830			1,880			1,880			2,204			2,204			2,025			2,025
Total stock-based compensation expense	$	4,416		$	4,416		$	5,012		$	5,012		$	5,789		$	5,789		$	5,668		$	5,668

Cost of revenues includes:
Amortization of acquisition-related intangible assets	$	961		$	961		$	946		$	946		$	939		$	939		$	939		$	939

Operating expenses includes:
Patent-litigation expenses	$	1,159		$	1,159		$	1,658		$	1,658		$	1,894		$	1,894		$	2,150		$	2,150

Other income includes:
Amortization of in-place lease intangible assets	$	90		$	90		$	90		$	90		$	90		$	90		$	90		$	90

POWER INTEGRATIONS, INC.

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)



	Year Ended December 31, 2015
	First Quarter						Second Quarter						Third Quarter						Fourth Quarter
(In thousands, except per share amounts)	As Reported			Under New Standards			As Reported			Under New Standards			As Reported			Under New Standards			As Reported			Under New Standards
NET REVENUES	$	82,557		$	86,600		$	85,265		$	84,366		$	88,878		$	88,058		$	87,289		$	85,585
COST OF REVENUES	40,265			42,815			41,247			40,582			44,717			44,391			44,373			43,521
GROSS PROFIT	42,292			43,785			44,018			43,784			44,161			43,667			42,916			42,064

OPERATING EXPENSES:
Research and development	14,573			14,573			14,683			14,683			13,888			13,888			13,856			13,856
Sales and marketing	11,307			11,307			11,567			11,567			10,463			10,463			10,449			10,449
General and administrative	7,983			7,983			7,480			7,480			7,361			7,361			6,896			6,896
Amortization of acquisition-related intangible assets	750			750			693			693			666			666			666			666
Other operating expense*	722			722			391			391			—			—			—			—
Total operating expenses	35,335			35,335			34,814			34,814			32,378			32,378			31,867			31,867
INCOME FROM OPERATIONS	6,957			8,450			9,204			8,970			11,783			11,289			11,049			10,197
OTHER INCOME (EXPENSE)	(223		)	(223		)	14			14			428			428			206			206
INCOME BEFORE INCOME TAXES	6,734			8,227			9,218			8,984			12,211			11,717			11,255			10,403
PROVISION FOR (BENEFIT FROM) INCOME TAXES	391			368			628			605			698			675			(1,446		)	(1,469		)
NET INCOME	$	6,343		$	7,859		$	8,590		$	8,379		$	11,513		$	11,042		$	12,701		$	11,872

EARNINGS PER SHARE:
Basic	$	0.22		$	0.27		$	0.29		$	0.29		$	0.40		$	0.38		$	0.45		$	0.42
Diluted	$	0.21		$	0.26		$	0.29		$	0.28		$	0.39		$	0.38		$	0.44		$	0.41

SHARES USED IN PER SHARE CALCULATION:
Basic	29,309			29,309			29,368			29,368			28,855			28,855			28,483			28,483
Diluted	30,058			30,058			30,034			30,034			29,298			29,298			29,126			29,126

SUPPLEMENTAL INFORMATION:

REVENUE MIX BY END MARKET
Communications	21		%	20		%	21		%	20		%	26		%	26		%	26		%	26		%
Computer	8		%	8		%	7		%	6		%	7		%	7		%	7		%	7		%
Consumer	38		%	39		%	36		%	37		%	36		%	35		%	34		%	34		%
Industrial	33		%	33		%	36		%	37		%	31		%	32		%	33		%	33		%

Stock-based compensation expenses included in:
Cost of revenues	$	249		$	249		$	257		$	257		$	219		$	219		$	208		$	208
Research and development	1,391			1,391			1,306			1,306			1,277			1,277			1,281			1,281
Sales and marketing	1,012			1,012			878			878			877			877			877			877
General and administrative	1,739			1,739			1,309			1,309			988			988			899			899
Total stock-based compensation expense	$	4,391		$	4,391		$	3,750		$	3,750		$	3,361		$	3,361		$	3,265		$	3,265

Cost of revenues includes:
Amortization of write-up of acquired inventory	$	309		$	309		$	—		$	—		$	—		$	—		$	—		$	—
Amortization of acquisition-related intangible assets	$	961		$	961		$	961		$	961		$	961		$	961		$	961		$	961

Operating expenses includes:
Patent-litigation expenses	$	1,457		$	1,457		$	1,501		$	1,501		$	1,500		$	1,500		$	1,517		$	1,517

Other income (expense) includes:
Amortization of in-place lease intangible assets	$	—		$	—		$	—		$	—		$	30		$	30		$	90		$	90

* Other operating expense consists of acquisition expenses and related transition costs

POWER INTEGRATIONS, INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP RESULTS

(Unaudited)



	Year Ended December 31, 2016
	First Quarter						Second Quarter						Third Quarter						Fourth Quarter
(In thousands, except per share amounts)	As Reported			Under New Standards			As Reported			Under New Standards			As Reported			Under New Standards			As Reported			Under New Standards
RECONCILIATION OF GROSS PROFIT MARGIN
GAAP gross profit	$	42,947		$	44,488		$	47,637		$	47,785		$	51,193		$	49,842		$	49,384		$	50,076
GAAP gross profit margin	50.3		%	50.5		%	49.0		%	49.0		%	49.3		%	49.0		%	48.8		%	48.9		%

Stock-based compensation expense included in cost of revenues	90			90			293			293			348			348			417			417
Amortization of acquisition-related intangible assets	961			961			946			946			939			939			939			939

Non-GAAP gross profit	$	43,998		$	45,539		$	48,876		$	49,024		$	52,480		$	51,129		$	50,740		$	51,432
Non-GAAP gross profit margin	51.6		%	51.7		%	50.3		%	50.2		%	50.6		%	50.3		%	50.2		%	50.2		%

RECONCILIATION OF INCOME FROM OPERATIONS
GAAP income from operations	$	8,912		$	10,453		$	11,627		$	11,775		$	14,469		$	13,118		$	12,836		$	13,528
GAAP operating margin	10.4		%	11.9		%	12.0		%	12.1		%	13.9		%	12.9		%	12.7		%	13.2		%

Less: Stock-based compensation expenses included in:
Cost of revenues	90			90			293			293			348			348			417			417
Research and development	1,469			1,469			1,940			1,940			1,934			1,934			1,966			1,966
Sales and marketing	1,027			1,027			899			899			1,303			1,303			1,260			1,260
General and administrative	1,830			1,830			1,880			1,880			2,204			2,204			2,025			2,025
Total	4,416			4,416			5,012			5,012			5,789			5,789			5,668			5,668

Amortization of acquisition-related intangible assets	1,627			1,627			1,557			1,557			1,521			1,521			1,523			1,523

Non-GAAP income from operations	$	14,955		$	16,496		$	18,196		$	18,344		$	21,779		$	20,428		$	20,027		$	20,719
Non-GAAP operating margin	17.5		%	18.7		%	18.7		%	18.8		%	21.0		%	20.1		%	19.8		%	20.2		%

RECONCILIATION OF NET INCOME PER SHARE (DILUTED)
GAAP net income	$	8,843		$	10,379		$	11,265		$	11,407		$	14,165		$	12,809		$	13,617		$	14,303

Adjustments to GAAP net income
Total stock-based compensation	4,416			4,416			5,012			5,012			5,789			5,789			5,668			5,668
Amortization of acquisition-related intangible assets	1,627			1,627			1,557			1,557			1,521			1,521			1,523			1,523
Amortization of in-place lease intangible assets	90			90			90			90			90			90			90			90
Tax effect of items excluded from non-GAAP results	(301		)	(301		)	(225		)	(225		)	(328		)	(328		)	(724		)	(724		)

Non-GAAP net income	$	14,675		$	16,211		$	17,699		$	17,841		$	21,237		$	19,881		$	20,174		$	20,860

Average shares outstanding for calculation of non-GAAP income per share (diluted)	29,244			29,244			29,422			29,422			29,625			29,625			29,914			29,914

Non-GAAP income per share (diluted)	$	0.50		$	0.55		$	0.60		$	0.61		$	0.72		$	0.67		$	0.67		$	0.70

POWER INTEGRATIONS, INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP RESULTS

(Unaudited)



	Year Ended December 31, 2015
	First Quarter						Second Quarter						Third Quarter						Fourth Quarter
(In thousands, except per share amounts)	As Reported			Under New Standards			As Reported			Under New Standards			As Reported			Under New Standards			As Reported			Under New Standards
RECONCILIATION OF GROSS PROFIT MARGIN
GAAP gross profit	$	42,292		$	43,785		$	44,018		$	43,784		$	44,161		$	43,667		$	42,916		$	42,064
GAAP gross profit margin	51.2		%	50.6		%	51.6		%	51.9		%	49.7		%	49.6		%	49.2		%	49.1		%

Stock-based compensation expense included in cost of revenues	249			249			257			257			219			219			208			208
Amortization of write-up of acquired inventory	309			309			—			—			—			—			—			—
Amortization of acquisition-related intangible assets	961			961			961			961			961			961			961			961

Non-GAAP gross profit	$	43,811		$	45,304		$	45,236		$	45,002		$	45,341		$	44,847		$	44,085		$	43,233
Non-GAAP gross profit margin	53.1		%	52.3		%	53.1		%	53.3		%	51.0		%	50.9		%	50.5		%	50.5		%

RECONCILIATION OF INCOME FROM OPERATIONS
GAAP income from operations	$	6,957		$	8,450		$	9,204		$	8,970		$	11,783		$	11,289		$	11,049		$	10,197
GAAP operating margin	8.4		%	9.8		%	10.8		%	10.6		%	13.3		%	12.8		%	12.7		%	11.9		%

Less: Stock-based compensation expenses included in:
Cost of revenues	249			249			257			257			219			219			208			208
Research and development	1,391			1,391			1,306			1,306			1,277			1,277			1,281			1,281
Sales and marketing	1,012			1,012			878			878			877			877			877			877
General and administrative	1,739			1,739			1,309			1,309			988			988			899			899
Total	4,391			4,391			3,750			3,750			3,361			3,361			3,265			3,265

Amortization of write-up of acquired inventory	309			309			—			—			—			—			—			—
Amortization of acquisition-related intangible assets	1,711			1,711			1,654			1,654			1,627			1,627			1,627			1,627
Other operating expense*	722			722			391			391			—			—			—			—

Non-GAAP income from operations	$	14,090		$	15,583		$	14,999		$	14,765		$	16,771		$	16,277		$	15,941		$	15,089
Non-GAAP operating margin	17.1		%	18.0		%	17.6		%	17.5		%	18.9		%	18.5		%	18.3		%	17.6		%

RECONCILIATION OF NET INCOME PER SHARE (DILUTED)
GAAP net income	$	6,343		$	7,859		$	8,590		$	8,379		$	11,513		$	11,042		$	12,701		$	11,872

Adjustments to GAAP net income
Total stock-based compensation	4,391			4,391			3,750			3,750			3,361			3,361			3,265			3,265
Amortization of write-up of acquired inventory	309			309			—			—			—			—			—			—
Amortization of acquisition-related intangible assets	1,711			1,711			1,654			1,654			1,627			1,627			1,627			1,627
Amortization of in-place lease intangible assets	—			—			—			—			30			30			90			90
Other operating expense*	722			722			391			391			—			—			—			—
Tax effect of items excluded from non-GAAP results	(521		)	(521		)	(197		)	(197		)	(310		)	(310		)	(796		)	(796		)

Non-GAAP net income	$	12,955		$	14,471		$	14,188		$	13,977		$	16,221		$	15,750		$	16,887		$	16,058

Average shares outstanding for calculation of non-GAAP income per share (diluted)	30,058			30,058			30,034			30,034			29,298			29,298			29,126			29,126

Non-GAAP income per share (diluted)	$	0.43		$	0.48		$	0.47		$	0.47		$	0.55		$	0.54		$	0.58		$	0.55

* Other operating expense consist of acquisition expenses and related transition costs

POWER INTEGRATIONS, INC.

CONSOLIDATED BALANCE SHEETS

(Unaudited)



	March 31, 2016						June 30, 2016						September 30, 2016						December 31, 2016
(In thousands)	As Reported			Under New Standards			As Reported			Under New Standards			As Reported			Under New Standards			As Reported			Under New Standards
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	94,735		$	94,735		$	105,343		$	105,343		$	95,890		$	95,890		$	62,134		$	62,134
Short-term marketable securities	90,419			90,419			96,891			96,891			130,673			130,673			188,323			188,323
Accounts receivable, net	11,294			9,981			14,010			13,544			14,679			12,779			6,961			6,528
Inventories	45,665			45,665			46,749			46,749			49,941			49,941			52,564			52,564
Prepaid expenses and other current assets	7,295			7,987			6,478			6,684			7,372			8,216			8,520			8,715
Total current assets	249,408			248,787			269,471			269,211			298,555			297,499			318,502			318,264

PROPERTY AND EQUIPMENT, net	97,723			97,723			95,746			95,746			94,433			94,433			95,296			95,296
INTANGIBLE ASSETS, net	36,373			36,373			34,726			34,726			33,114			33,114			31,502			31,502
GOODWILL	91,849			91,849			91,849			91,849			91,849			91,849			91,849			91,849
DEFERRED TAX ASSETS	11,779			11,105			11,342			10,663			11,064			10,379			12,032			11,342
OTHER ASSETS	5,664			5,664			6,372			6,372			6,273			6,273			6,157			6,157
Total assets	$	492,796		$	491,501		$	509,506		$	508,567		$	535,288		$	533,547		$	555,338		$	554,410

LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable	$	19,862		$	19,862		$	24,367		$	24,367		$	30,117		$	30,117		$	29,727		$	29,727
Accrued payroll and related expenses	7,986			7,986			10,463			10,463			9,011			9,011			10,756			10,756
Taxes payable	3,326			3,326			247			247			251			251			729			729
Deferred income on sales to distributors	17,102			—			16,888			—			16,334			—			16,207			—
Other accrued liabilities	2,217			2,517			2,548			2,848			3,427			3,727			2,434			2,734
Total current liabilities	50,493			33,691			54,513			37,925			59,140			43,106			59,853			43,946

LONG-TERM LIABILITIES:
Income taxes payable	2,695			2,695			2,666			2,666			2,666			2,666			2,639			2,639
Deferred tax liabilities	1,141			1,141			1,004			1,004			1,002			1,002			820			820
Other liabilities	3,246			3,246			3,315			3,315			3,422			3,422			3,921			3,921
Total long term liabilities	7,082			7,082			6,985			6,985			7,090			7,090			7,380			7,380

STOCKHOLDERS’ EQUITY:
Common stock	28			28			28			28			28			28			28			28
Additional paid-in capital	146,655			146,655			151,806			151,806			162,820			162,820			172,875			172,875
Accumulated other comprehensive loss	(1,652		)	(1,652		)	(1,527		)	(1,527		)	(1,885		)	(1,885		)	(2,710		)	(2,710		)
Retained earnings	290,190			305,697			297,701			313,350			308,095			322,388			317,912			332,891
Total stockholders’ equity	435,221			450,728			448,008			463,657			469,058			483,351			488,105			503,084
Total liabilities and stockholders’ equity	$	492,796		$	491,501		$	509,506		$	508,567		$	535,288		$	533,547		$	555,338		$	554,410

POWER INTEGRATIONS, INC.

CONSOLIDATED BALANCE SHEETS

(Unaudited)



	March 31, 2015						June 30, 2015						September 30, 2015						December 31, 2015
(In thousands)	As Reported			Under New Standards			As Reported			Under New Standards			As Reported			Under New Standards			As Reported			Under New Standards
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	85,637		$	85,637		$	75,941		$	75,941		$	59,735		$	59,735		$	90,092		$	90,092
Short-term marketable securities	87,560			87,560			94,944			94,944			91,222			91,222			83,769			83,769
Accounts receivable, net	12,631			11,394			13,212			12,861			11,061			9,729			7,818			7,485
Inventories	65,009			65,009			64,231			64,231			55,439			55,439			51,934			51,934
Prepaid expenses and other current assets	11,458			11,957			9,444			9,609			5,780			6,439			6,790			6,962
Total current assets	262,295			261,557			257,772			257,586			223,237			222,564			240,403			240,242

PROPERTY AND EQUIPMENT, net	94,179			94,179			92,913			92,913			102,223			102,223			99,381			99,381
INTANGIBLE ASSETS, net	42,758			42,758			41,028			41,028			39,957			39,957			38,165			38,165
GOODWILL	91,849			91,849			91,849			91,849			91,849			91,849			91,849			91,849
DEFERRED TAX ASSETS	11,304			10,566			11,063			10,349			10,722			10,031			11,843			11,174
OTHER ASSETS	4,789			4,789			4,894			4,894			5,502			5,502			5,896			5,896
Total assets	$	507,174		$	505,698		$	499,519		$	498,619		$	473,490		$	472,126		$	487,537		$	486,707

LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable	$	23,907		$	23,907		$	30,792		$	30,792		$	23,370		$	23,370		$	21,660		$	21,660
Accrued payroll and related expenses	8,815			8,815			9,539			9,539			8,203			8,203			9,327			9,327
Taxes payable	2,930			2,930			2,237			2,237			2,022			2,022			3,620			3,620
Deferred income on sales to distributors	17,254			—			16,457			—			16,464			—			15,101			—
Other accrued liabilities	3,834			4,129			3,381			3,667			3,182			3,482			2,285			2,585
Total current liabilities	56,740			39,781			62,406			46,235			53,241			37,077			51,993			37,192

LONG-TERM LIABILITIES:
Income taxes payable	746			746			746			746			746			746			2,511			2,511
Deferred tax liabilities	6,246			6,246			6,013			6,013			5,737			5,737			1,291			1,291
Other liabilities	2,960			2,960			2,673			2,673			2,569			2,569			3,123			3,123
Total long term liabilities	9,952			9,952			9,432			9,432			9,052			9,052			6,925			6,925

STOCKHOLDERS’ EQUITY:
Common stock	29			29			29			29			28			28			28			28
Additional paid-in capital	178,816			178,816			161,089			161,089			136,422			136,422			145,366			145,366
Accumulated other comprehensive loss	(1,031		)	(1,031		)	(1,167		)	(1,167		)	(1,043		)	(1,043		)	(1,851		)	(1,851		)
Retained earnings	262,668			278,151			267,730			283,001			275,790			290,590			285,076			299,047
Total stockholders’ equity	440,482			455,965			427,681			442,952			411,197			425,997			428,619			442,590
Total liabilities and stockholders’ equity	$	507,174		$	505,698		$	499,519		$	498,619		$	473,490		$	472,126		$	487,537		$	486,707

POWER INTEGRATIONS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)



	Year Ended December 31, 2016
	First Quarter						Second Quarter						Third Quarter						Fourth Quarter
(In thousands)	As Reported			Under New Standards			As Reported			Under New Standards			As Reported			Under New Standards			As Reported			Under New Standards
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	8,843		$	10,379		$	11,265		$	11,407		$	14,165		$	12,809		$	13,617		$	14,303
Adjustments to reconcile net income to cash provided by operating activities
Depreciation	4,315			4,315			4,206			4,206			4,149			4,149			4,142			4,142
Amortization of intangible assets	1,792			1,792			1,647			1,647			1,612			1,612			1,612			1,612
Loss on disposal of property and equipment	78			78			70			70			68			68			116			116
Stock-based compensation expense	4,416			4,416			5,012			5,012			5,789			5,789			5,668			5,668
Amortization of premium on marketable securities	260			260			169			169			55			55			71			71
Deferred income taxes	(86		)	(81		)	300			306			276			281			(1,150		)	(1,144		)
Increase in accounts receivable allowances	89			89			104			104			110			110			(96		)	(96		)
Change in operating assets and liabilities:
Accounts receivable	(3,565		)	(2,585		)	(2,820		)	(3,667		)	(779		)	656			7,814			6,347
Inventories	6,269			6,269			(1,084		)	(1,084		)	(3,192		)	(3,192		)	(2,623		)	(2,623		)
Prepaid expenses and other assets	(868		)	(1,388		)	229			714			(764		)	(1,402		)	(1,096		)	(448		)
Accounts payable	(1,840		)	(1,840		)	4,879			4,879			5,998			5,998			(1,323		)	(1,323		)
Taxes payable and other accrued liabilities	(1,413		)	(1,413		)	(153		)	(153		)	(675		)	(675		)	1,117			1,117
Deferred income on sales to distributors	2,001			—			(214		)	—			(554		)	—			(127		)	—
Net cash provided by operating activities	20,291			20,291			23,610			23,610			26,258			26,258			27,742			27,742

CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment	(2,095		)	(2,095		)	(2,795		)	(2,795		)	(3,184		)	(3,184		)	(4,124		)	(4,124		)
Purchases of marketable securities	(45,227		)	(45,227		)	(20,984		)	(20,984		)	(56,187		)	(56,187		)	(66,256		)	(66,256		)
Proceeds from sales and maturities of marketable securities	38,531			38,531			14,390			14,390			22,207			22,207			8,295			8,295
Net cash used in investing activities	(8,791		)	(8,791		)	(9,389		)	(9,389		)	(37,164		)	(37,164		)	(62,085		)	(62,085		)

CASH FLOWS FROM FINANCING ACTIVITIES:
Net proceeds from issuance of common stock	2,957			2,957			491			491			5,224			5,224			4,387			4,387
Repurchase of common stock	(6,085		)	(6,085		)	(350		)	(350		)	—			—			—			—
Payments of dividends to stockholders	(3,729		)	(3,729		)	(3,754		)	(3,754		)	(3,771		)	(3,771		)	(3,800		)	(3,800		)
Net cash provided by (used in) financing activities	(6,857		)	(6,857		)	(3,613		)	(3,613		)	1,453			1,453			587			587

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	4,643			4,643			10,608			10,608			(9,453		)	(9,453		)	(33,756		)	(33,756		)

CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	90,092			90,092			94,735			94,735			105,343			105,343			95,890			95,890

CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	94,735		$	94,735		$	105,343		$	105,343		$	95,890		$	95,890		$	62,134		$	62,134

POWER INTEGRATIONS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)



	Year Ended December 31, 2015
	First Quarter						Second Quarter						Third Quarter						Fourth Quarter
(In thousands)	As Reported			Under New Standards			As Reported			Under New Standards			As Reported			Under New Standards			As Reported			Under New Standards
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	6,343		$	7,859		$	8,590		$	8,379		$	11,513		$	11,042		$	12,701		$	11,872
Adjustments to reconcile net income to cash provided by operating activities
Depreciation	4,032			4,032			4,035			4,035			4,168			4,168			4,229			4,229
Amortization of intangible assets	1,786			1,786			1,729			1,729			1,732			1,732			1,792			1,792
Loss on disposal of property and equipment	—			—			—			—			270			270			91			91
Stock-based compensation expense	4,391			4,391			3,750			3,750			3,361			3,361			3,265			3,265
Amortization of premium on marketable securities	286			286			265			265			258			258			254			254
Deferred income taxes	77			54			9			(14		)	66			43			(5,568		)	(5,591		)
Increase (decrease) in accounts receivable allowances	(5		)	(5		)	(80		)	(80		)	213			213			(1		)	(1		)
Tax shortfall associated with employee stock plans	(189		)	(189		)	—			—			—			—			—			—
Change in operating assets and liabilities:
Accounts receivable	(550		)	367			(500		)	(1,387		)	1,938			2,919			3,243			2,245
Inventories	424			424			779			779			8,792			8,792			3,505			3,505
Prepaid expenses and other assets	(227		)	(602		)	2,077			2,411			2,428			1,933			(887		)	(400		)
Accounts payable	349			349			5,954			5,954			(8,338		)	(8,338		)	35			35
Taxes payable and other accrued liabilities	(1,076		)	(1,080		)	(751		)	(760		)	(1,752		)	(1,738		)	3,503			3,503
Deferred income on sales to distributors	2,031			—			(796		)	—			6			—			(1,363		)	—
Net cash provided by operating activities	17,672			17,672			25,061			25,061			24,655			24,655			24,799			24,799

CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment	(3,322		)	(3,322		)	(1,822		)	(1,822		)	(2,475		)	(2,475		)	(3,740		)	(3,740		)
Payment for purchase of building	—			—			—			—			(10,389		)	(10,389		)	—			—
Payment for acquisition, net of cash acquired	(15,365		)	(15,365		)	(184		)	(184		)	—			—			—			—
Purchases of marketable securities	—			—			(9,993		)	(9,993		)	(4,940		)	(4,940		)	(14,815		)	(14,815		)
Proceeds from sales and maturities of marketable securities	26,785			26,785			2,250			2,250			8,424			8,424			21,850			21,850
Net cash provided by (used in) investing activities	8,098			8,098			(9,749		)	(9,749		)	(9,380		)	(9,380		)	3,295			3,295

CASH FLOWS FROM FINANCING ACTIVITIES:
Net proceeds from issuance of common stock	3,519			3,519			856			856			2,527			2,527			5,678			5,678
Repurchase of common stock	(841		)	(841		)	(22,335		)	(22,335		)	(30,555		)	(30,555		)	—			—
Payments of dividends to stockholders	(3,519		)	(3,519		)	(3,529		)	(3,529		)	(3,453		)	(3,453		)	(3,415		)	(3,415		)
Net cash provided by (used in) financing activities	(841		)	(841		)	(25,008		)	(25,008		)	(31,481		)	(31,481		)	2,263			2,263

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	24,929			24,929			(9,696		)	(9,696		)	(16,206		)	(16,206		)	30,357			30,357

CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	60,708			60,708			85,637			85,637			75,941			75,941			59,735			59,735

CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	85,637		$	85,637		$	75,941		$	75,941		$	59,735		$	59,735		$	90,092		$	90,092

Attached files

Stock widget

Investing forum

POWER INTEGRATIONS INC Reports