Monolithic Power rises on $640 mln share buyback, in-line results
October 30, 2023 at 05:02 pm EDT
Share
Oct 30 (Reuters) - Monolithic Power Systems
said it would buy back up to $640 million-worth company shares
and reported largely in-line results on Monday, sending its
stock up 8% in trading after the bell.
Kirkland, Washington-based Monolithic, which sells power
circuits and other semiconductor products, is seeing demand
scale as enterprises upgrade their cloud and network
infrastructure to support new AI functionality and the growing
Internet user-base.
The new buyback plan will be valid through October 2026.
Monolithic Power's shares have gained 14.3% compared with the
22.2% rise in technology-heavy Nasdaq Composite year to
date. The company had $1 billion in cash and equivalents as of
September.
In the current quarter ending Dec. 31, the company sees
revenue between $442 million and $462 million. The midpoint of
the range came in slightly below the $451.7 million estimate,
according to LSEG data.
Revenue decreased 4% to $474.9 million in the most-recent
quarter ended Sept. 30, compared with analysts' consensus
estimate of $474.1 million.
It earned $3.08 per share, slightly higher than the estimate
of $3.07.
Sales to storage and computing customers, the largest
end-market for Monolithic Power, grew 15% to $129.5 million. Its
second-largest revenue line, enterprise data, jumped over 30% to
$98.9 million.
(Reporting by Yuvraj Malik in Bengaluru; Editing by Krishna
Chandra Eluri)
Monolithic Power Systems, Inc. specializes in the design, manufacture and marketing of high-performance semiconductor-based power electronics solutions. The group's products include power modules, power management solutions (power converters, regulators, voltage supervisory systems, integrated circuits, Power over Ethernet, gate drivers, controllers, USB power systems, power distribution systems, etc.), AC/DC converters, analog components, sensors, inductors and battery management solutions. Net sales break down by market as follows:
- IT and data storage (30.8%): components and devices used in storage networks, computers, printers, servers and workstations;
- consumer electronics (23.4%): components for set-top boxes, monitors, game consoles, lighting systems, chargers, household appliances, mobile phones, wearables, GPS, TVs, stereos and cameras;
- automotive (16.9%): solutions for infotainment applications and advanced driver assistance and connectivity systems;
- industrial applications (15.3%): solutions for power generators, security systems, point-of-sale systems, smart meters and other industrial equipment;
- telecommunications (13.6%): components and devices used in network and telecommunications infrastructures, routers, modems and wireless applications.
At the end of 2021, the group had three production sites in China.
Net sales are distributed geographically as follows: the United States (3%), China (58%), Taiwan (14%), South Korea (7.7%), Europe (7.1%), Japan (5.7%) and South East Asia (4.5%).
MONOLITHIC POWER SYSTEMS, INC. 
