Power Integrations (POWI) Earnings Transcript

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Fri, February 6, 2026 astatine 7:45 AM CST 25 min read

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Wednesday, November 6, 2024 astatine 4:30 p.m. ET

• President and Chief Executive Officer — Balu Balakrishnan

• Chief Financial Officer — Sandeep Nayyar

• Director of Investor Relations — Joe Shiffler

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Balu Balakrishnan: Thank you, Joe, and bully afternoon. Our 3rd 4th results were connected people with revenues up 9% sequentially to $116 million, non-GAAP gross borderline of 55.1% percent and non-GAAP net of $0.40 per share. Our gross outlook for the 4th fourth is $105 cardinal positive oregon minus $5 million. The alteration from Q3 reflects a brushed request situation called retired this 4th by galore of our analog peers and by immoderate of our cardinal customers successful the appliance market. Appliances relationship for the bulk of our user category, which comprises astir 40% of our sales.

Further tempering the outlook successful user is simply a buildup of appliance inventory astatine Chinese OEMs up of the China government's agelong waited user stimulus program, which frankincense acold appears to beryllium having a constricted impact. Overall, portion the betterment is proceeding successful fits and starts, we are pleased to beryllium returning to year-over-year maturation with the midpoint of our Q4 forecast up 17% compared to past year. We besides expect to stay astatine the precocious extremity of our gross borderline exemplary done astatine slightest adjacent year, acknowledgment to the dollar summation speech complaint and a favorable end-market mix.

While each 4 of our end-markets should turn successful 2025, we expect the strongest maturation from Industrial, which has the highest margins of our 4 categories. We expect maturation successful aggregate subsegments of Industrial led by precocious powerfulness with peculiar spot successful precocious voltage DC transmission projects, agelong region DC transmission lines present renewable vigor efficiently to the grid and are besides a cardinal portion of efforts to modernize powerfulness infrastructure to heighten vigor information and conscionable the expanding powerfulness needs of AI information centers. In Q3, we won precocious voltage DC designs with expected yearly gross worth of much than $5 cardinal including our 2nd multimillion dollar plan triumph for TenneT, a large North European grid operator.

We besides expect to statesman transportation of our standard to gross drivers successful aboriginal 2025 for 2 different large projects. Phase 1 of Saudi Arabia's planned 9-gigawatt nexus betwixt Yanbu and NEOM and an undersea nexus connecting Japanese islands of Honshu and Hokkaido. Metering is different maturation operator successful the concern category, astir notably successful India, wherever our metering concern is connected way to treble this twelvemonth arsenic the authorities continues with its planned installation of 250 cardinal astute meters implicit the adjacent fewer years. We person earned a sizable stock of that marketplace and expect dollar contented to summation implicit clip arsenic customers migrate to our 900 volt and 1250 volt GaN products to execute higher ratio and reliability.