LOS GATOS, Calif., March 10 /PRNewswire-FirstCall/ -- Monolithic Power Systems, Inc. (MPS) , a leading fabless manufacturer of high-performance analog and mixed-signal semiconductors, announced that it intends to file today its quarterly report on Form 10-Q for the third fiscal quarter of 2005, and that it has revised its previously announced financial results for that quarter. The revisions arose primarily from a reduction of the previously recorded provision for litigation due to reversal of a $12-million jury verdict, as well as errors in stock-compensation expense and tax provision computation that gave rise to the Company's restatements for fiscal 2003, 2004 and the first two quarters of fiscal 2005. The revisions affected operating expenses and net income, but revenues, gross profit percentage, and cash are unchanged from the financial results announced on October 26, 2005. By making this filing, the Company believes it will be compliant with the requirements for continued listing on the Nasdaq National Market.
The revised results are as follows:
-- Net revenues of $29.7 million, up 102% from $14.7 million for the same
quarter of 2004
-- Gross profit of 64.3%, compared with 60.2% for the same quarter of 2004
-- GAAP operating expenses of $4.4 million, with $8.9 million for research
and development, selling, general and administrative expense, including
$1.0 million for stock-based compensation and $4.3 million for patent
litigation. This also includes a one-time credit of $8.8 million to
the provision for litigation for reversal of the $12 million jury
verdict
-- Non-GAAP(1) operating expenses of $3.4 million, excluding $1.0 million
for stock-based compensation
-- GAAP net income to common stockholders of $9.4 million, or $0.31 per
diluted share, compared with a GAAP net loss to common stockholders of
$1.4 million, or ($0.21) per diluted share, for the same quarter of
2004
-- Non-GAAP(1) net income to common stockholders of $10.5 million, or
$0.34 per diluted share, compared with non-GAAP net income to common
stockholders of $1.4 million, or $0.06 per diluted share, for the same
quarter of 2004
-- Cash, cash equivalents and investments of $60.3 million, compared with
$51.8 million at June 30, 2005.
The following table summarizes the revisions to the previously announced results:
For the Three For the Nine
Months Ended Months Ended
September 30, 2005 September 30, 2005
All numbers are in thousands As Initially Revised As Initially Revised
Reported Reported
Stock-based compensation COGS 133 130 369 390
Total cost of revenues 10,596 10,593 24,286 24,307
Gross profit 19,110 19,113 42,314 42,293
Gross profit % 64.30% 64.34% 63.50% 63.50%
Research and development 4,150 4,045 11,357 10,980
Selling, general and
administrative 4,913 4,880 13,198 12,963
Patent litigation 3,475 4,312 13,345 14,182
Provision for litigation -- (8,800) 12,000 3,200
Total operating expenses 12,538 4,437 49,900 41,325
Income (loss) from operations 6,572 14,676 (7,586) 968
Income (loss) before income taxes 6,899 15,003 (6,652) 1,902
Income tax expense (benefit) 2,914 5,641 (2,502) 628
Net Income (Loss) 3,985 9,362 (4,150) 1,274
Basic net income (loss)
per common share $0.14 $0.33 $(0.15) $0.05
Diluted net income (loss)
per common share $0.13 $0.31 $(0.15) $0.04
Shares used in basic net income
(loss) per common share 28,093 28,093 27,794 27,794
Shares used in diluted net
income (loss) per common share 31,495 30,642 27,794 30,363
(1) Non-GAAP net income or net loss differs from net income or net loss
determined according to GAAP (Generally Accepted Accounting Principles
in the United States). A schedule reconciling these amounts is
included in this news release. MPS' non-GAAP net income or net loss
differs from GAAP net income or net loss in that the non-GAAP figure
excludes stock-based compensation expense. Non-GAAP financial
measures should not be considered as a substitute for, or superior to,
measures of financial performance prepared in accordance with GAAP.
MPS utilizes both GAAP and non-GAAP financial measures in assessing
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 supplemental information and 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 the investor with an additional
dimension of comparability to similar companies. However, investors
should be aware that non-GAAP measures utilized by other companies are
not likely to be comparable in most cases to the non-GAAP measures
utilized by MPS.
About Monolithic Power Systems, Inc.
Monolithic Power Systems, Inc. (MPS) develops and markets proprietary, advanced analog and mixed-signal semiconductors. The company combines advanced process technology with its highly experienced analog designers to produce high-performance power management integrated circuits (ICs) for Cold Cathode Fluorescent Lamp (CCFL) backlight controllers, LED drivers, DC to DC converters, Class D audio amplifiers, and Linear ICs. MPS products are used extensively in computing and network communications products, LCD monitors and TVs, and a wide variety of consumer and portable electronics products. MPS partners with world-class manufacturing organizations to deliver top quality, ultra-compact, high-performance solutions through the most productive, cost- efficient channels. Founded in 1997 and headquartered in Los Gatos, California, the company has expanded its global presence with offices in Taiwan, China, Korea, Japan, and Europe, which operate under MPS International, Ltd.
Safe Harbor Statement
This press release contains forward-looking statements, including statements regarding the Company's intention concerning the timing of the filing of its quarterly report on Form 10-Q for the quarter ended September 30, 2005, and its beliefs concerning its compliance with the requirements for continued listing on the Nasdaq National Market. These statements are not historical facts or guarantees of future performance or events, and are based on current expectations, estimates, beliefs, assumptions, goals, and objectives, and involve known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from the results expressed or implied by these statements. Readers of this press release and listeners to any related conference call are cautioned not to place undue reliance on any forward-looking statements. Readers of this press release and listeners to any conference call are directed to the important risk factors identified in our SEC filings, including, but not limited to, our Annual Report on Form 10-K/A filed on March 9, 2006 and our most recent Quarterly Reports on Form 10-Q/A filed on March 10, 2006, as well as the Form 10-Q for the third quarter of 2005 expected to be filed on March 10, 2006.
NOTE: MPS, Monolithic Power Systems, and the MPS logo are among the trademarks of Monolithic Power Systems, Inc. in the U.S. and certain other countries.
Monolithic Power Systems, INC.
CONDENSED CONSOLIDATED BALANCE SHEET
(in thousands, except per share amounts)
(unaudited)
Balance at Period Ended
Sept. 30, 2005 Dec. 31, 2004
As restated
ASSETS
Current assets:
Cash and cash equivalents $44,818 $ 32,019
Investments 15,475 17,000
Accounts receivable, net 9,761 3,996
Inventories 5,716 5,398
Deferred income taxes 2,516 1,393
Prepaid expenses and other current assets 608 1,116
Total current assets 78,894 60,922
Property and equipment, net 4,595 4,180
Deferred income taxes - non-current 673 508
Other assets 109 134
Restricted assets 6,408 6,641
TOTAL ASSETS $90,679 $72,385
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $5,995 $3,396
Accrued compensation and related benefits 3,960 1,518
Accrued income tax 1,524 374
Accrued liabilities 8,199 2,996
Total current liabilities 19,678 8,284
Deferred rent 218 161
Stockholders' equity:
Common stock 95,595 93,236
Deferred stock compensation (5,420) (8,941)
Notes receivable from stockholders (398) (398)
Accumulated other comprehensive
income (loss) (67) 243
Accumulated deficit (18,927) (20,200)
Total stockholders' equity 70,783 63,940
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $90,679 $72,385
Monolithic Power Systems, INC.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(in thousands, except per share data)
(unaudited)
Three Months Ended Nine Months Ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
2005 2004 2005 2004
As restated As restated
Net Revenues $29,706 $14,737 $66,600 $32,796
Cost of revenues 10,593 5,861 24,307 13,926
Gross profit 19,113 8,876 42,293 18,870
Gross profit % 64.3% 60.2% 63.5% 57.5%
Operating expenses:
Research and development 4,045 3,388 10,980 9,401
Selling, general and
administrative 4,880 3,183 12,963 9,212
Patent litigation 4,312 3,370 14,182 4,845
Provision for litigation (8,800) -- 3,200 --
Total operating expenses 4,437 9,941 41,325 23,458
Income (loss) from operations 14,676 (1,065) 968 (4,588)
Other income (expense):
Interest income 401 40 1,094 109
Other expense (74) (82) (160) (93)
Total other income (expense) 327 (42) 934 16
Income (loss) before income
taxes 15,003 (1,107) 1,902 (4,572)
Income tax provision 5,641 -- 628 --
Net Income (Loss) 9,362 (1,107) 1,274 (4,572)
Accretion of redeemable
convertible preferred stock -- 335 -- 1,005
Net income (loss) attributable
to common stockholders $9,362 $(1,442) $1,274 $(5,577)
Basic net income (loss)
per common share $0.33 $(0.21) $0.05 $(0.83)
Diluted net income (loss)
per common share $0.31 $(0.21) $0.04 $(0.83)
Shares used in basic net income
(loss) per common share 28,093 6,818 27,794 6,690
Shares used in diluted net
income (loss) per common share 30,642 6,818 30,363 6,690
Monolithic Power Systems, INC.
NON-GAAP CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(in thousands, except per share data)
(unaudited)
Three Months Ended Nine Months Ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
2005 2004 2005 2004
Net Revenues $29,694 $14,737 $66,576 $32,962
Cost of revenues 10,463 5,626 23,917 13,200
Gross profit 19,231 9,111 42,659 19,762
Gross profit % 64.8% 61.8% 64.1% 60.0%
Operating expenses:
Research and development 3,476 2,093 8,935 5,421
Selling, general and
administrative 4,430 1,863 11,230 5,048
Patent litigation 4,312 3,370 14,182 4,844
Provision for litigation (8,800) -- 3,200 --
Total operating expenses 3,418 7,326 37,547 15,313
Income (loss) from operations 15,813 1,785 5,112 4,449
Other income (expense):
Interest income 401 40 1,094 109
Other expense (74) (82) (160) (95)
Total other income (expense),
net 327 (42) 934 14
Income (loss) before income
taxes 16,140 1,743 6,046 4,463
Income tax provision 5,641 -- 628 --
Net Income 10,499 1,743 5,418 4,463
Accretion of convertible
preferred stock -- 335 -- 670
Net income to common
stockholders $10,499 $1,408 $5,418 $3,793
Basic net income per
common share $0.37 $0.21 $0.19 $0.57
Diluted net income per
common share $0.34 $0.06 $0.18 $0.17
Shares - basic net income
per common share 28,093 6,818 27,794 6,690
Shares - diluted net income
per common share 30,642 22,566 30,363 22,411
GAAP TO NON-GAAP RECONCILIATION
Three Months Ended Nine Months Ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
2005 2004 2005 2004
Net Income (Loss) - GAAP
Basis $9,362 $(1,107) $1,274 $(4,572)
Non-GAAP adjustments for
stock-based compensation
Contra revenues (12) -- (24) 165
Cost of revenues 130 235 390 726
SG&A 450 1,320 1,733 4,164
R&D 569 1,295 2,045 3,980
Net Income $10,499 $1,743 $5,418 $4,463
