Monolithic Power Systems Announces Results for the Third Quarter Ended September 30, 2020

Rhea-AI Summary

Monolithic Power Systems, Inc. (MPWR) reported robust financial results for Q3 2020, achieving revenue of $259.4 million, reflecting a 39.3% quarter-over-quarter increase and a 53.7% year-over-year rise. GAAP net income reached $55.6 million, equivalent to $1.18 per diluted share, up from $29.5 million or $0.64 in Q3 2019. Non-GAAP net income was $79.4 million or $1.69 per diluted share. The company anticipates Q4 2020 revenue between $218 million and $230 million with stable gross margins. MPS aims to continue executing despite market uncertainties.

Positive

• Q3 2020 revenue increased by 39.3% from Q2 2020 and 53.7% from Q3 2019.
• GAAP net income rose to $55.6 million, up from $29.5 million in Q3 2019.
• Non-GAAP net income improved to $79.4 million compared to $49.5 million year-over-year.
• Gross margin remained stable at 55.1% for Q3 2020.

Negative

• GAAP operating expenses increased to $83.1 million from $63.1 million in Q3 2019.
• Non-GAAP operating expenses also rose from $42.5 million to $59.1 million year-over-year.

KIRKLAND, Wash., Oct. 29, 2020 (GLOBE NEWSWIRE) -- Monolithic Power Systems, Inc. (MPS) (Nasdaq: MPWR), a leading company in high performance analog solutions, today announced financial results for the quarter ended September 30, 2020. 

• Revenue was $259.4 million for the quarter ended September 30, 2020, a 39.3% increase from $186.2 million for the quarter ended June 30, 2020 and a 53.7% increase from $168.8 million for the quarter ended September 30, 2019.
  
  
• GAAP gross margin was 55.1% for the quarter ended September 30, 2020, compared with 55.2% for the quarter ended September 30, 2019.
  
  
• Non-GAAP (1) gross margin was 55.5% for the quarter ended September 30, 2020, excluding the impact of $0.7 million for stock-based compensation expense and $0.2 million for deferred compensation plan expense, compared with 55.6% for the quarter ended September 30, 2019, excluding the impact of $0.6 million for stock-based compensation expense.
  
  
• GAAP operating expenses were $83.1 million for the quarter ended September 30, 2020, compared with $63.1 million for the quarter ended September 30, 2019.
  
  
• Non-GAAP (1) operating expenses were $59.1 million for the quarter ended September 30, 2020, excluding $22.3 million for stock-based compensation expense and $1.7 million for deferred compensation plan expense, compared with $42.5 million for the quarter ended September 30, 2019, excluding $20.7 million for stock-based compensation expense.
  
  
• GAAP operating income was $60.0 million for the quarter ended September 30, 2020, compared with $30.0 million for the quarter ended September 30, 2019.
  
  
• Non-GAAP (1) operating income was $84.9 million for the quarter ended September 30, 2020, excluding $23.0 million for stock-based compensation expense and $1.9 million for deferred compensation plan expense, compared with $51.4 million for the quarter ended September 30, 2019, excluding $21.3 million for stock-based compensation expense.
  
  
• GAAP other income, net, was $2.5 million for the quarter ended September 30, 2020, compared with $2.3 million for the quarter ended September 30, 2019.
  
  
• Non-GAAP (1) other income, net, was $0.9 million for the quarter ended September 30, 2020, excluding $1.6 million for deferred compensation plan income, compared with $2.2 million for the quarter ended September 30, 2019, excluding $0.1 million for deferred compensation plan income.
  
  
• GAAP income before income taxes was $62.5 million for the quarter ended September 30, 2020, compared with $32.3 million for the quarter ended September 30, 2019.
  
  
• Non-GAAP (1) income before income taxes was $85.8 million for the quarter ended September 30, 2020, excluding $23.0 million for stock-based compensation expense and $0.3 million for deferred compensation plan expense, compared with $53.5 million for the quarter ended September 30, 2019, excluding $21.3 million for stock-based compensation expense, and $0.1 million for deferred compensation plan income.
  
  
• GAAP net income was $55.6 million and $1.18 per diluted share for the quarter ended September 30, 2020. Comparatively, GAAP net income was $29.5 million and $0.64 per diluted share for the quarter ended September 30, 2019.
  
  
• Non-GAAP (1) net income was $79.4 million and $1.69 per diluted share for the quarter ended September 30, 2020, excluding stock-based compensation expense, net deferred compensation plan expense and related tax effects, compared with non-GAAP net income of $49.5 million and $1.08 per diluted share for the quarter ended September 30, 2019, excluding stock-based compensation expense, amortization of acquisition-related intangible assets, net deferred compensation plan income and related tax effects.

The financial results for the nine months ended September 30, 2020 are as follows:

• Revenue was $611.4 million for the nine months ended September 30, 2020, a 32.6% increase from $461.2 million for the nine months ended September 30, 2019.
  
  
• GAAP gross margin was 55.1% for the nine months ended September 30, 2020, compared with 55.2% for the nine months ended September 30, 2019.
  
  
• Non-GAAP (1) gross margin was 55.5% for the nine months ended September 30, 2020, excluding the impact of $1.9 million for stock-based compensation expense and $0.7 million for deferred compensation plan expense, compared with 55.6% for the nine months ended September 30, 2019, excluding the impact of $1.8 million for stock-based compensation expense and $0.1 million for the amortization of acquisition-related intangible assets.
  
  
• GAAP operating expenses were $218.2 million for the nine months ended September 30, 2020, compared with $182.5 million for the nine months ended September 30, 2019.
  
  
• Non-GAAP (1) operating expenses were $155.8 million for the nine months ended September 30, 2020, excluding $60.7 million for stock-based compensation expense and $1.7 million for deferred compensation plan expense, compared with $121.8 million for the nine months ended September 30, 2019, excluding $58.2 million for stock-based compensation expense and $2.6 million for deferred compensation plan expense.
  
  
• GAAP operating income was $118.9 million for the nine months ended September 30, 2020, compared with $71.9 million for the nine months ended September 30, 2019.
  
  
• Non-GAAP (1) operating income was $183.8 million for the nine months ended September 30, 2020, excluding $62.6 million for stock-based compensation expense and $2.3 million for deferred compensation plan expense, compared with $134.6 million for the nine months ended September 30, 2019, excluding $60.0 million for stock-based compensation expense, $0.1 million for the amortization of acquisition-related intangible assets and $2.6 million for deferred compensation plan expense.
  
  
• GAAP other income, net, was $6.0 million for the nine months ended September 30, 2020, compared with $7.8 million for the nine months ended September 30, 2019.
  
  
• Non-GAAP (1) other income, net, was $4.6 million for the nine months ended September 30, 2020, excluding $1.4 million for deferred compensation plan income, compared with $5.2 million for the nine months ended September 30, 2019, excluding $2.6 million for deferred compensation plan income.
  
  
• GAAP income before income taxes was $124.9 million for the nine months ended September 30, 2020, compared with $79.7 million for the nine months ended September 30, 2019.
  
  
• Non-GAAP (1) income before income taxes was $188.4 million for the nine months ended September 30, 2020, excluding $62.6 million for stock-based compensation expense and $0.9 million for deferred compensation plan expense, compared with $139.8 million for the nine months ended September 30, 2019, excluding $60.0 million for stock-based compensation expense, and $0.1 million for the amortization of acquisition-related intangible assets.
  
  
• GAAP net income was $121.5 million and $2.59 per diluted share for the nine months ended September 30, 2020. Comparatively, GAAP net income was $76.4 million and $1.68 per diluted share for the nine months ended September 30, 2019.
  
  
• Non-GAAP (1) net income was $174.3 million and $3.72 per diluted share for the nine months ended September 30, 2020, excluding stock-based compensation expense, net deferred compensation plan expense and related tax effects, compared with non-GAAP net income of $129.3 million and $2.84 per diluted share for the nine months ended September 30, 2019, excluding stock-based compensation expense, amortization of acquisition-related intangible assets, net deferred compensation plan income and related tax effects.
  

The following is a summary of revenue by end market for the periods indicated (in thousands):

		Three Months Ended September 30,								Nine Months Ended September 30,
End Market		2020				2019				2020				2019
Computing and storage		$	75,301			$	52,793			$	191,345			$	133,571
Automotive			28,512				24,432				69,603				66,174
Industrial			30,658				28,862				82,487				72,640
Communications			54,705				18,778				112,670				62,928
Consumer			70,246				43,948				155,304				125,870
Total		$	259,422			$	168,813			$	611,409			$	461,183

The following is a summary of revenue by product family for the periods indicated (in thousands):

		Three Months Ended September 30,								Nine Months Ended September 30,
Product Family		2020				2019				2020				2019
DC to DC		$	247,561			$	159,723			$	580,549			$	432,125
Lighting Control			11,861				9,090				30,860				29,058
Total		$	259,422			$	168,813			$	611,409			$	461,183

“We will monitor market conditions closely and continue to execute,” said Michael Hsing, CEO and founder of MPS.

Business Outlook

The following are MPS’ financial targets for the fourth quarter ending December 31, 2020:

• Revenue in the range of $218 million to $230 million.
  
  
• GAAP gross margin between 55.1% and 55.7%. Non-GAAP (1) gross margin between 55.4% and 56.0%, which excludes an estimated impact of stock-based compensation expenses of 0.3%.
  
  
• GAAP research and development (“R&D”) and selling, general and administrative (“SG&A”) expenses between $81.3 million and $85.3 million. Non-GAAP (1) R&D and SG&A expenses between $60.2 million and $62.2 million, which excludes estimated stock-based compensation expenses in the range of $21.1 million to $23.1 million.
  
  
• Total stock-based compensation expense of $21.8 million to $23.8 million.
  
  
• Litigation expenses ranging between $1.8 million and $2.2 million.
  
  
• Interest income of $1.0 million to $1.4 million.
  
  
• Fully diluted shares outstanding between 47.1 million and 48.1 million.
  

(1) Non-GAAP net income, non-GAAP earnings per share, non-GAAP gross margin, non-GAAP R&D and SG&A expenses, non-GAAP operating expenses, non-GAAP other income (expense), net, non-GAAP operating income and non-GAAP income before taxes differ from net income, earnings per share, gross margin, R&D and SG&A expenses, operating expenses, other income (expense), net, operating income and income before taxes determined in accordance with Generally Accepted Accounting Principles in the United States (GAAP). Non-GAAP net income and non-GAAP earnings per share exclude the effect of stock-based compensation expense, amortization of acquisition-related intangible assets, deferred compensation plan income/expense and related tax effects. Non-GAAP gross margin excludes the effect of stock-based compensation expense, amortization of acquisition-related intangible assets and deferred compensation plan income/expense. Non-GAAP operating expenses exclude the effect of stock-based compensation expense and deferred compensation plan income/expense. Non-GAAP other income (expense), net excludes the effect of deferred compensation plan income/expense. Non-GAAP operating income excludes the effect of stock-based compensation expense, amortization of acquisition-related intangible assets and deferred compensation plan income/expense. Non-GAAP income before taxes excludes the effect of stock-based compensation expense, amortization of acquisition-related intangible assets and deferred compensation plan income/expense. Projected non-GAAP gross margin excludes the effect of stock-based compensation expense. Projected non-GAAP R&D and SG&A expenses exclude the effect of stock-based compensation expense. These non-GAAP financial measures are not prepared in accordance with GAAP and should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. A schedule reconciling non-GAAP financial measures is included at the end of this press release. MPS utilizes both GAAP and non-GAAP financial measures to assess what it believes to be its core operating performance and to evaluate and manage its internal business and assist in making financial operating decisions. MPS believes that the inclusion of non-GAAP financial measures, together with GAAP measures, provides investors with an alternative presentation useful to investors' understanding of MPS' core operating results and trends. Additionally, MPS believes that the inclusion of non-GAAP measures, together with GAAP measures, provides investors with an additional dimension of comparability to similar companies. However, investors should be aware that non-GAAP financial measures utilized by other companies are not likely to be comparable in most cases to the non-GAAP financial measures used by MPS.  

Earnings Webinar
MPS plans to host a Zoom webinar covering its financial results at 2:00 p.m. PT / 5:00 p.m. ET, October 29, 2020. You can access the webinar, free of charge, at: https://mpsic.zoom.us/j/95299537308. The webinar will be archived and available for replay for one year under the Investor Relations page on the MPS website.

Safe Harbor Statement
This press release contains, and statements that will be made during the accompanying teleconference will contain, forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995, including, among other things, (i) projected revenues, GAAP and non-GAAP gross margin, GAAP and non-GAAP R&D and SG&A expenses, stock-based compensation expenses, litigation expenses, interest income, and diluted shares outstanding, (ii) our outlook for the long-term prospects of the company, including our performance against our business plan, revenue growth in certain of our market segments, our continued investment into R&D, expected revenue growth, customers' acceptance of our new product offerings, the prospects of our new product development, and our expectations regarding market and industry segment trends and prospects, (iii) our ability to penetrate new markets and expand our market share, (iv) the seasonality of our business, (v) our ability to reduce our expenses, and (vi) statements of the assumptions underlying or relating to any statement described in (i), (ii), (iii), (iv), or (v). These forward-looking statements are not historical facts or guarantees of future performance or events, are based on current expectations, estimates, beliefs, assumptions, goals, and objectives, and involve significant known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from the results expressed by these statements. Readers of this press release and listeners to the accompanying conference call are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date hereof. Factors that could cause actual results to differ include, but are not limited to, our ability to attract new customers and retain existing customers; acceptance of, or demand for, MPS’s products, in particular the new products launched recently, being different than expected; our ability to efficiently and effectively develop new products and receive a return on our R&D expense investment; our ability to increase market share in our targeted markets; our ability to meet customer demand for our products due to constraints on our third-party suppliers’ ability to manufacture sufficient quantities of our products or otherwise; competition generally and the increasingly competitive nature of our industry; any market disruptions or interruptions in MPS’s schedule of new product development releases; adverse changes in production and testing efficiency of our products; our ability to manage our inventory levels; the effect of export controls, trade and economic sanctions regulations and other regulatory or contractual limitations on our ability to sell or develop our products in certain foreign markets, particularly in China; our ability to obtain governmental licenses and approvals for international trading activities or technology transfers, including export licenses; adverse changes in laws and government regulations such as tariffs on imports of foreign goods, export regulations and export classifications, including in foreign countries where MPS has offices or operations; adverse events arising from orders of governmental entities, including such orders that impact our customers, and adoption of new or amended accounting standards; the effect of epidemics and pandemics, such as the COVID-19 outbreak first identified in December 2019, on the global economy and on our business; adequate supply of our products from our third-party manufacturing partners; the risks, uncertainties and costs of litigation in which we are involved; the outcome of any upcoming trials, hearings, motions and appeals; the adverse impact on MPS’s financial performance if its tax and litigation provisions are inadequate; adverse changes or developments in the semiconductor industry generally, which is cyclical in nature, and our ability to adjust our operations to address such changes or developments; difficulty in predicting or budgeting for future customer demand and channel inventories, expenses and financial contingencies (including as a result of the COVID-19 pandemic); our ability to realize the anticipated benefits of companies and products that we acquire, and our ability to effectively and efficiently integrate these acquired companies and products into our operations; the ongoing consolidation of companies in the semiconductor industry; and other important risk factors identified in MPS’s Securities and Exchange Commission (SEC) filings, including, but not limited to, our annual report on Form 10-K filed with the SEC on February 28, 2020 and our quarterly report on Form 10-Q filed with the SEC on August 3, 2020. The forward-looking statements in this press release and statements made during the accompanying teleconference represent MPS’s projections and current expectations, as of the date hereof, not predictions of actual performance. MPS assumes no obligation to update the information in this press release or in the accompanying conference call. 

About Monolithic Power Systems
Monolithic Power Systems, Inc. (MPS) provides small, highly energy efficient, easy-to-use power solutions for systems found in industrial applications, telecom infrastructures, cloud computing, automotive, and consumer applications. MPS' mission is to reduce total energy consumption in its customers' systems with green, practical, compact solutions. The company was founded by Michael Hsing in 1997 and is based in the United States. MPS can be contacted through its website at www.monolithicpower.com or its support offices around the world.

Monolithic Power Systems, MPS, and the MPS logo are registered trademarks of Monolithic Power Systems, Inc. in the U.S. and trademarked in certain other countries.

Contact:
Bernie Blegen
Chief Financial Officer
Monolithic Power Systems, Inc.
408-826-0777
investors@monolithicpower.com

Monolithic Power Systems, Inc.
Condensed Consolidated Balance Sheets
(Unaudited, in thousands, except par value) 

		September 30,				December 31,
		2020				2019
ASSETS
Current assets:
Cash and cash equivalents		$	179,466			$	172,960
Short-term investments			372,076				282,437
Accounts receivable, net			93,535				52,704
Inventories			148,096				127,500
Other current assets			25,970				19,605
Total current assets			819,143				655,206
Property and equipment, net			270,310				228,315
Long-term investments			2,916				3,138
Goodwill			6,571				6,571
Deferred tax assets, net			13,486				17,193
Other long-term assets			48,868				45,952
Total assets		$	1,161,294			$	956,375
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable		$	48,142			$	27,271
Accrued compensation and related benefits			48,362				26,164
Other accrued liabilities			61,774				44,790
Total current liabilities			158,278				98,225
Income tax liabilities			35,624				37,596
Other long-term liabilities			52,823				47,063
Total liabilities			246,725				182,884
Commitments and contingencies
Stockholders’ equity:
Common stock and additional paid-in capital: $0.001 par value; shares authorized: 150,000; shares issued and outstanding: 45,096 and 43,616, respectively			632,432				549,517
Retained earnings			279,653				229,450
Accumulated other comprehensive income (loss)			2,484				(5,476	)
Total stockholders’ equity			914,569				773,491
Total liabilities and stockholders’ equity		$	1,161,294			$	956,375

Monolithic Power Systems, Inc.

Condensed Consolidated Statements of Operations
(Unaudited, in thousands, except per share amounts)

		Three Months Ended September 30,								Nine Months Ended September 30,
		2020				2019				2020				2019
Revenue		$	259,422			$	168,813			$	611,409			$	461,183
Cost of revenue			116,382				75,655				274,329				206,794
Gross profit			143,040				93,158				337,080				254,389
Operating expenses:
Research and development			37,717				27,742				95,346				80,746
Selling, general and administrative			43,503				34,692				116,550				100,302
Litigation expense			1,841				692				6,264				1,473
Total operating expenses			83,061				63,126				218,160				182,521
Income from operations			59,979				30,032				118,920				71,868
Other income, net			2,494				2,257				5,980				7,827
Income before income taxes			62,473				32,289				124,900				79,695
Income tax expense			6,907				2,761				3,412				3,293
Net income		$	55,566			$	29,528			$	121,488			$	76,402
Net income per share:
Basic		$	1.24			$	0.68			$	2.72			$	1.77
Diluted		$	1.18			$	0.64			$	2.59			$	1.68
Weighted-average shares outstanding:
Basic			44,970				43,308				44,737				43,055
Diluted			46,955				45,833				46,819				45,516

SUPPLEMENTAL FINANCIAL INFORMATION
STOCK-BASED COMPENSATION EXPENSE
(Unaudited, in thousands)
		Three Months Ended September 30,								Nine Months Ended September 30,
		2020				2019				2020				2019
Cost of revenue		$	707			$	641			$	1,906			$	1,834
Research and development			5,334				4,960				14,666				14,801
Selling, general and administrative			16,934				15,699				46,009				43,384
Total stock-based compensation expense		$	22,975			$	21,300			$	62,581			$	60,019

RECONCILIATION OF NET INCOME TO NON-GAAP NET INCOME
(Unaudited, in thousands, except per share amounts)
		Three Months Ended September 30,								Nine Months Ended September 30,
		2020				2019				2020				2019
Net income		$	55,566			$	29,528			$	121,488			$	76,402
Net income as a percentage of revenue			21.4	%			17.5	%			19.9	%			16.6	%
Adjustments to reconcile net income to non-GAAP net income:
Stock-based compensation expense			22,975				21,300				62,581				60,019
Amortization of acquisition-related intangible assets			-				8				-				110
Deferred compensation plan expense (income)			347				(61	)			901				(46	)
Tax effect			472				(1,254	)			(10,717	)			(7,190	)
Non-GAAP net income		$	79,360			$	49,521			$	174,253			$	129,295
Non-GAAP net income as a percentage of revenue			30.6	%			29.3	%			28.5	%			28.0	%
Non-GAAP net income per share:
Basic		$	1.76			$	1.14			$	3.90			$	3.00
Diluted		$	1.69			$	1.08			$	3.72			$	2.84
Shares used in the calculation of non-GAAP net income per share:
Basic			44,970				43,308				44,737				43,055
Diluted			46,955				45,833				46,819				45,516

RECONCILIATION OF GROSS MARGIN TO NON-GAAP GROSS MARGIN
(Unaudited, in thousands)
		Three Months Ended September 30,								Nine Months Ended September 30,
		2020				2019				2020				2019
Gross profit		$	143,040			$	93,158			$	337,080			$	254,389
Gross margin			55.1	%			55.2	%			55.1	%			55.2	%
Adjustments to reconcile gross profit to non-GAAP gross profit:
Stock-based compensation expense			707				641				1,906				1,834
Deferred compensation plan expense			244				25				650				25
Amortization of acquisition-related intangible assets			-				8				-				110
Non-GAAP gross profit		$	143,991			$	93,832			$	339,636			$	256,358
Non-GAAP gross margin			55.5	%			55.6	%			55.5	%			55.6	%

RECONCILIATION OF OPERATING EXPENSES TO NON-GAAP OPERATING EXPENSES
(Unaudited, in thousands)
		Three Months Ended September 30,								Nine Months Ended September 30,
		2020				2019				2020				2019
Total operating expenses		$	83,061			$	63,126			$	218,160			$	182,521
Adjustments to reconcile total operating expenses to non-GAAP total operating expenses:
Stock-based compensation expense			(22,268	)			(20,659	)			(60,675	)			(58,185	)
Deferred compensation plan (expense) income			(1,701	)			13				(1,672	)			(2,558	)
Non-GAAP operating expenses		$	59,092			$	42,480			$	155,813			$	121,778

RECONCILIATION OF OPERATING INCOME TO NON-GAAP OPERATING INCOME
(Unaudited, in thousands)
		Three Months Ended September 30,								Nine Months Ended September 30,
		2020				2019				2020				2019
Total operating income		$	59,979			$	30,032			$	118,920			$	71,868
Adjustments to reconcile total operating income to non-GAAP total operating income:
Stock-based compensation expense			22,975				21,300				62,581				60,019
Amortization of acquisition-related intangible assets			-				8				-				110
Deferred compensation plan expense			1,946				12				2,322				2,584
Non-GAAP operating income		$	84,900			$	51,352			$	183,823			$	134,581

RECONCILIATION OF OTHER INCOME, NET, TO NON-GAAP OTHER INCOME, NET
(Unaudited, in thousands)
		Three Months Ended September 30,								Nine Months Ended September 30,
		2020				2019				2020				2019
Total other income, net		$	2,494			$	2,257			$	5,980			$	7,827
Adjustments to reconcile other income, net to non-GAAP other income, net:
Deferred compensation plan income			(1,598	)			(74	)			(1,421	)			(2,630	)
Non-GAAP other income, net		$	896			$	2,183			$	4,559			$	5,197

RECONCILIATION OF INCOME BEFORE INCOME TAXES TO NON-GAAP INCOME BEFORE INCOME TAXES
(Unaudited, in thousands)
		Three Months Ended September 30,								Nine Months Ended September 30,
		2020				2019				2020				2019
Total income before income taxes		$	62,473			$	32,289			$	124,900			$	79,695
Adjustments to reconcile income before income taxes to non-GAAP income before income taxes:
Stock-based compensation expense			22,975				21,300				62,581				60,019
Amortization of acquisition-related intangible assets			-				8				-				110
Deferred compensation plan expense (income)			347				(61	)			901				(46	)
Non-GAAP income before income taxes		$	85,795			$	53,536			$	188,382			$	139,778

2020 FOURTH QUARTER OUTLOOK
RECONCILIATION OF GROSS MARGIN TO NON-GAAP GROSS MARGIN
(Unaudited)
		Three Months Ending
		December 31, 2020
		Low				High
Gross margin			55.1	%			55.7	%
Adjustments to reconcile gross margin to non-GAAP gross margin:
Stock-based compensation expense			0.3	%			0.3	%
Non-GAAP gross margin			55.4	%			56.0	%

RECONCILIATION OF R&D AND SG&A EXPENSES TO NON-GAAP R&D AND SG&A EXPENSES
(Unaudited, in thousands)
		Three Months Ending
		December 31, 2020
		Low				High
R&D and SG&A expense		$	81,300			$	85,300
Adjustments to reconcile R&D and SG&A expense to non-GAAP R&D and SG&A expense:
Stock-based compensation expense			(21,100	)			(23,100	)
Non-GAAP R&D and SG&A expense		$	60,200			$	62,200

FAQ

What were Monolithic Power Systems' financial results for Q3 2020?

Monolithic Power Systems reported Q3 2020 revenue of $259.4 million, a 53.7% year-over-year increase, along with a GAAP net income of $55.6 million.

What is the stock symbol for Monolithic Power Systems?

The stock symbol for Monolithic Power Systems is MPWR.

What is Monolithic Power Systems' outlook for Q4 2020?

MPS anticipates Q4 2020 revenue to be in the range of $218 million to $230 million.

How did Monolithic Power Systems' GAAP net income change from Q3 2019 to Q3 2020?

GAAP net income increased from $29.5 million in Q3 2019 to $55.6 million in Q3 2020.

What were the operating expenses reported by MPS for Q3 2020?

GAAP operating expenses were reported at $83.1 million for Q3 2020, an increase from $63.1 million in Q3 2019.