美國
證券交易委員會
華盛頓特區20549
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表格
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(標記一個)
| | 根據1934年證券交易法第13或15(d)條款的季度報告。 |
截至2024年6月30日季度結束
或
| | 根據1934年證券交易法第13或15(d)條款的過渡報告 |
委員會文件號碼：
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單片式功率系統股份有限公司。 (註冊人的確切名稱 依據其憑證所規定的)
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| (依據所在地或其他管轄區) 的註冊地或組織地點) | (國稅局雇主識別號碼) 識別號碼) |
(主要執行辦公室地址)(郵政編碼)
(
(註冊人電話號碼，包括區號)
根據該法案第12(b)條規定登記的證券：
| 每種類別的名稱
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| 交易符號 |
| 每個交易所的名稱 已註冊 |
| 普通股票，面值為0.001美元 每股盈利 |
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| 輝瑞公司面臨數起分開的訴訟，這些訴訟仍在進行中，需等待第三項索賠條款的裁決。2023年9月，我們與輝瑞公司同意合併2022和2023年的訴訟，並將審判日期從2024年11月推遲至2025年上半年，具體時間將由法院確定。 |
請勾選以下項目，以判定在過去12個月(或更短期間，該註冊人被要求提交報告)內所有根據1934年證券交易法第13條或第15(d)條要求提供報告的報告是否已經提交，並且該註冊人在過去90天中是否受到提交報告的要求。
在前12個月內（或公司需要提交這些文件的較短時間內），公司是否已通過選中標記表明已閱讀並提交了應根據S-t法規第405條規定（本章第232.405條）提交的所有互動式數據文件？
請勾選指示登記者是否為大型快速提交人、快速提交人、非快速提交人、較小的報告公司或新興成長型公司。請參閱交易所法規120億2條，了解「大型快速提交人」、「快速提交人」、「較小的報告公司」和「新興成長型公司」的定義。
| | 加速提交人 ☐ | 非加速申報者 ☐ |
| 較小的報告公司 | 新興成長型公司 |
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如果是新興成長型企業，在符合任何依據證券交易法第13(a)條所提供的任何新的或修改的財務會計準則的遵循的延伸過渡期方面，是否選擇不使用核准記號進行指示。☐
在核准的名冊是否屬於殼公司（如股市法規第1202條所定義之意義）方面，請用勾選符號表示。是
在2023和2024年6月30日結束的三個和六個月中，有資產減損處理記錄。更新計算公司進行中的研究和開發資產（“IPR&D”）公平價值所使用的關鍵假設可能會改變公司未來短期內回收IPR&D資產的帶值估計。
單體電力系統股份有限公司
截至2024年9月30日季度結束
目錄
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頁面 |
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| 項目一。 |
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| 項目二。 |
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| 第三項目。 |
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| 第四項。 |
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| 項目一。 |
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| 項目 1A。 |
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| 項目二。 |
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| 第三項目。 |
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| 第四項。 |
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| 第五項。 |
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| 第六項 |
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MONOLITHIC POWER SYSTEMS，INC。
（以千為單位，除面值外）
(未經查核)
| 九月三十日， | 12月31日， | |||||||
| 2024 | 2023 | |||||||
| 資產 | ||||||||
| 流動資產: | ||||||||
| 現金及現金等價物 | $ | $ | ||||||
| 短期投資 | ||||||||
| 應收帳款淨額 | ||||||||
| 存貨 | ||||||||
| 其他流動資產 | ||||||||
| 全部流動資產 | ||||||||
| 物業及設備，扣除折舊後淨值 | ||||||||
| 併購相關的無形資產，淨值 | ||||||||
| 商譽 | ||||||||
| 递延税款资产，净额 | ||||||||
| 其他長期資產 | ||||||||
| 資產總額 | $ | $ | ||||||
| 負債及股東權益 | ||||||||
| 流動負債： | ||||||||
| 應付賬款 | $ | $ | ||||||
| 應計的薪酬及相關福利 | ||||||||
| 其他應計負債 | ||||||||
| 流動負債合計 | ||||||||
| 所得稅負債 | ||||||||
| 其他長期負債 | ||||||||
| 總負債 | ||||||||
| 合約和可能負債 | ||||||||
| 股東權益： | ||||||||
| 普通股及額外資本公積：$ 票面價值；授權股數： ；已發行並流通股數： 和 ，分別為 | ||||||||
| 保留收益 | ||||||||
| 累積其他全面損失 | ( | ) | ( | ) | ||||
| 股東權益總額 | ||||||||
| 負債和股東權益總額 | $ | $ | ||||||
請參閱未經審計的簡明合併基本報表所附註釋。
MONOLITHIC POWER SYSTEMS，INC。
（以千為單位，除每股金額外）
(未經查核)
| 截至九月三十日止三個月， |
截至九月三十日止九個月 |
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| 2024 |
2023 |
2024 |
2023 |
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| 收入 |
$ | $ | $ | $ | ||||||||||||
| 收入成本 |
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| 毛利 |
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| 營運費用： |
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| 研究與開發 |
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| 銷售、一般及行政 |
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| 營運開支總額 |
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| 營業收入 |
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| 其他收入淨額 |
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| 所得稅前所得 |
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| 所得稅費用 |
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| 淨收入 |
$ | $ | $ | $ | ||||||||||||
| 每股淨利潤： |
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| 基本 |
$ | $ | $ | $ | ||||||||||||
| 稀釋 |
$ | $ | $ | $ | ||||||||||||
| 權重平均未發行股份： |
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| 基本 |
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| 稀釋 |
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請參閱未經審計的簡明合併基本報表所附註釋。
MONOLITHIC POWER SYSTEMS，INC。
(以千為單位)
(未經查核)
| 截至9月30日的三個月 | 截至9月30日的九個月 | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| 凈利潤 | $ | $ | $ | $ | ||||||||||||
| 其他綜合損益（稅後淨額）： | ||||||||||||||||
| 外匯轉換調整 | ( | ) | ( | ) | ||||||||||||
| 可供出售金融资产未实现收益和损失变动，减税净额为$, $, $(和美元，分別剩餘餘額為美元。，分別為 | ||||||||||||||||
| 其他綜合損益（稅後淨額）： | ( | ) | ( | ) | ||||||||||||
| 綜合收益 | $ | $ | $ | $ | ||||||||||||
請參閱未經審計的簡明合併基本報表所附註釋。
MONOLITHIC POWER SYSTEMS，INC。
（以千為單位，除每股金額外）
(未經查核)
| 累積的 | ||||||||||||||||||||
| 普通股份和 | 其他 | 總計 | ||||||||||||||||||
| 股本外溢價 | 留存收益 | 綜合 | 股東的 | |||||||||||||||||
| 2024年9月30日止三個月 | 股份 | 金額 | 收益 | 損失 | 股權 | |||||||||||||||
| 2024年7月1日的餘額 | $ | $ | $ | ( | ) | $ | ||||||||||||||
| 淨利潤 | - | |||||||||||||||||||
| 其他綜合收益 | - | |||||||||||||||||||
| 宣佈的股息及股息等價物（$每股) | - | ( | ) | ( | ) | |||||||||||||||
| 員工權益激勵計劃下發行的普通股 | ||||||||||||||||||||
| 員工股票購買計劃下發行的普通股 | ||||||||||||||||||||
| 購回普通股 | ( | ) | ( | ) | ( | ) | ||||||||||||||
| 股票補償費用 | - | |||||||||||||||||||
| 2024年9月30日餘額 | $ | $ | $ | ( | ) | $ | ||||||||||||||
| 累積的 | ||||||||||||||||||||
| 普通股份和 | 其他 | 總計 | ||||||||||||||||||
| 股本外溢價 | 留存收益 | 綜合 | 股東的 | |||||||||||||||||
| 2023年9月30日止三個月 | 股份 | 金額 | 收益 | 損失 | 股權 | |||||||||||||||
| 截至2023年7月1日的餘額 | $ | $ | $ | ( | ) | $ | ||||||||||||||
| 淨利潤 | - | |||||||||||||||||||
| 其他綜合損失 | - | ( | ) | ( | ) | |||||||||||||||
| 宣佈的股息及股息等價物（$每股) | - | ( | ) | ( | ) | |||||||||||||||
| 員工股權激勵計劃下發行的普通股 | ||||||||||||||||||||
| 員工股票購買計劃下發行的普通股 | ||||||||||||||||||||
| 股票補償費用 | - | |||||||||||||||||||
| 截至2023年9月30日的餘額 | $ | $ | $ | ( | ) | $ | ||||||||||||||
| 累積的 | ||||||||||||||||||||
| 普通股份和 | 其他 | 總計 | ||||||||||||||||||
| 股本外溢價 | 留存收益 | 綜合 | 股東的 | |||||||||||||||||
| 2024年9月30日止九個月 | 股份 | 金額 | 收益 | 損失 | 股權 | |||||||||||||||
| 2024年1月1日的餘額 | $ | $ | $ | ( | ) | $ | ||||||||||||||
| 淨利潤 | - | |||||||||||||||||||
| 其他綜合收益 | - | |||||||||||||||||||
| 宣佈的股息及股息等價物（$每股) | - | ( | ) | ( | ) | |||||||||||||||
| 員工股權激勵計劃下發行的普通股 | ||||||||||||||||||||
| 員工股票購買計劃下發行的普通股 | ||||||||||||||||||||
| 購回普通股 | ( | ) | ( | ) | ( | ) | ||||||||||||||
| 股票補償費用 | - | |||||||||||||||||||
| 2024年9月30日餘額 | $ | $ | $ | ( | ) | $ | ||||||||||||||
| 累積的 | ||||||||||||||||||||
| 普通股份和 | 其他 | 總計 | ||||||||||||||||||
| 股本外溢價 | 留存收益 | 綜合 | 股東的 | |||||||||||||||||
| 2023年9月30日止九個月 | 股份 | 金額 | 收益 | 損失 | 股權 | |||||||||||||||
| 2023年1月1日餘額 | $ | $ | $ | ( | ) | $ | ||||||||||||||
| 淨利潤 | - | |||||||||||||||||||
| 其他綜合損失 | - | ( | ) | ( | ) | |||||||||||||||
| 宣佈的股息及股息等價物（$每股) | - | ( | ) | ( | ) | |||||||||||||||
| 員工股權激勵計劃下發行的普通股 | ||||||||||||||||||||
| 員工股票購買計劃下發行的普通股 | ||||||||||||||||||||
| 股票補償費用 | - | |||||||||||||||||||
| 截至2023年9月30日的餘額 | $ | $ | $ | ( | ) | $ | ||||||||||||||
請參見附註的未經審計的簡明合併財務報表。
單片機電源系統公司。
（以千爲單位）
(未經審計)
| 截至9月30日的九個月 |
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| 2024 |
2023 |
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| 經營活動現金流量： |
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| 淨利潤 |
$ | $ | ||||||
| 調整淨利潤以計入經營活動現金流量: |
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| 折舊和攤銷 |
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| 可供出售證券折價攤銷 |
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| 延期薪酬計劃投資收益 |
( |
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| 遞延所得稅資產/負債，淨額 |
( |
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| 股票補償費用 |
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| 其他 |
( |
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| 經營性資產和負債變動: |
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| 應收賬款 |
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| 存貨 |
( |
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| 其他 |
( |
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| 應付賬款 |
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| 應計的工資和相關福利 |
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| 所得稅負債 |
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| 其他應計負債 |
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| 經營活動產生的現金流量淨額 |
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| 投資活動現金流量： |
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| 購買固定資產 |
( |
) | ( |
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| 支付的現金用於承擔租賃 |
( |
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| 投資購買 |
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| 投資到期和出售收益 |
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| 淨現金支付的收購價，減去現金收購價 |
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| 對延期薪酬計劃的捐贈，淨額 |
( |
) | ( |
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| 投資活動產生的淨現金流出 |
( |
) | ( |
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| 籌集資金的現金流量： |
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| 購買的物業和設備以延長付款期限 |
( |
) | ( |
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| 根據員工股權激勵計劃發行的普通股籌資 |
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| 根據員工股票購買計劃發行的普通股籌資 |
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| 購回普通股 |
( |
) | ||||||
| 分紅派息及股利等效支付 |
( |
) | ( |
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| 籌集資金淨額 |
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| 匯率變動影響 |
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| 現金，現金等價物和受限制現金的淨增加額 |
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| 期初現金、現金等價物及受限制的現金 |
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| 期末現金、現金等價物及受限制的現金 |
$ | $ | ||||||
| 現金流信息的補充披露: |
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| 所支付的所得稅款，淨額 |
$ | $ | ||||||
| 非現金投資和籌資活動: |
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| 爲購買資產和設備計提的負債 |
$ | $ | ||||||
| 爲分紅和股利等計提的負債 |
$ | $ | ||||||
請參見附註的未經審計的簡明合併財務報表。
單片機電源系統公司。
(未經審計)
1. 報告基礎
Monolithic Power Systems, Inc.（以下簡稱"公司"或"MPS"）編制的附表中未經審計的簡要合併基本財務報表遵循證券交易委員會（以下簡稱"SEC"）的規則和法規。根據這些會計準則、規則和法規，根據美國通用會計準則（"GAAP"）編制的財務報表通常包含的某些信息和披露已經被壓縮或省略。本報告中的信息應與公司截至2023年12月31日年度報告的經審計合併財務報表及相關附註一起閱讀，該報告已於2024年2月29日提交給SEC。
在管理層看來，隨附的未經審計的簡明綜合財務報表反映了爲展示公司財務狀況、經營成果和現金流量而進行的所有必要調整（僅包括正常經常性調整）。本季度報告10-Q表格中包含的財務報表並不一定代表截至2024年12月31日的年度或任何其他未來時段預期的結果。
重要會計政策摘要
截至2024年9月30日止三個月和九個月期間，公司重要會計政策未發生變化。除在公司年度報告Form 10-K中包含的經審計合併財務報表中描述的政策外，由於最近的收購，公司還適用以下重要會計政策。
商譽和收購相關的無形資產
商譽代表收購考慮的公允價值超出收購日取得的淨有形及可識別無形資產的公允價值。進行中的研發（「I&D」）資產代表收購日尚未達到技術可行性的不完整研發（「R&D」）項目的公允價值。I&D資產最初以無限期的有形資產的公允價值計入資本化。當I&D項目完成時，它們將重新分類爲可攤銷的無形資產，並按估計的可用年限攤銷。或者，如果I&D項目被放棄，它們將被視爲受損，並作爲R&D成本支出。具有有限使用年限的收購相關無形資產包括開發技術，這些技術按照剩餘可用年限的直線法攤銷。攤銷費用記錄在利潤和損失的營業成本中。
使用估計
按照通用會計準則編制基本報表需要管理層進行涉及資產和負債金額、披露基本報表日期時的待定資產和負債金額、以及揭示報告期間營業收入和費用金額等方面的估計和假設。這些簡明綜合基本報表中使用的重要估計和假設主要包括與營業收入確認、存貨估值、基於股票的獎勵估值、或有事項和所得稅估值準備相關的。實際結果可能與這些估計和假設存在差異，此類差異可能對公司的簡明綜合基本報表具有重大影響。
截至2024年9月30日尚未採納的新會計準則
2023年11月，財務會計準則委員會（「FASB」）發佈了《會計準則更新》（「ASU」） 2023年07月，分部報告（主題280）：改進可報告段披露，旨在通過更全面披露重要段費用來改善關於上市實體可報告段的披露。該標準適用於2024年1月1日開始的年度期間和2025年1月1日開始的中期期間，並應追溯到過往提出的所有期間。公司正在評估更新後標準可能對其財務報表披露產生的潛在影響。
2023年12月，FASB發佈了ASU 2023年09月，所得稅（主題740）：改進所得稅披露旨在改善實體關於有效稅率調解、所得稅支付、所得稅前所得分解和所得稅開支的所得稅披露。該指南將於2025年1月1日開始的年度適用。標準應按前瞻性執行，但允許追溯執行。公司預計採納該標準不會對其合併財務報表產生重大影響。
2. 收入確認。
產品銷售收入。
公司主要通過產品銷售實現營業收入，包括裝配和測試的特斯拉-集成電路（ICs）、 功率模塊以及晶圓形式的芯片。這些產品銷售佔了公司營業收入的百分之
該公司主要通過第三方分銷商、增值經銷商、原始設備製造商（OEM）、原始設計製造商（ODM）和電子製造服務（EMS）提供商銷售其產品。截至2024年9月30日和2023年這三個月，
公司在向客戶交付承諾的貨物或服務並轉讓控制權時，確認相關營業收入金額應反映公司預計能夠交換貨物或服務所獲得的對價。公司將政府機構評定的稅收，例如銷售稅，從營業收入中排除。
產品銷售包括一項單一履約義務，公司在某一時間點履行完畢。 公司確認從分銷商和直接最終客戶處獲得的產品營業收入，條件是發生以下事件：(a) 公司已將產品的實際控制轉移，(b) 公司具有支付的現有權利，(c) 客戶對產品具有合法所有權，以及 (d) 客戶承擔產品所有權的重大風險和回報。 根據合同中規定的運輸條款，通常當產品從公司設施發貨（如「離岸價」運輸條款）或交付至客戶地點（如「交貨付清」 運輸條款）時，這些標準通常得到滿足。
根據一些寄售協議，公司在客戶從寄售庫存地點消費產品時確認營業收入，此時控制權轉移給客戶，公司會開具發票。
可變的考慮因素
公司將價格調整和庫存輪換權視爲變量考慮因素，以減少交易價格，並在關聯營業收入確認的同期內確認該減少。當總部位於美國的分銷商以低於公司開具的分銷價格向最終客戶銷售公司產品時，他們具有價格調整權。當公司收到來自分銷商的索賠，稱產品已以較低價格銷售給最終客戶時，公司爲價格調整發出信貸備忘錄。公司使用預期價值方法估計價格調整，基於歷史索賠的分析，以及在分銷商和產品層面的已知產品銷售組合趨勢評估。其他總部位於美國的分銷商和非總部位於美國的分銷商沒有價格調整權。公司針對預估價格調整在應收賬款方面記入信貸，相應減少營業收入。
某些經銷商擁有有限的庫存輪換權利，根據合同條款，允許退還前九個月購買數量的少量商品。公司使用預期價值法估計庫存輪換退貨，基於歷史退貨分析以及分銷渠道中當前庫存的水平。公司爲庫存輪換準備了一筆負債，同時將營業收入相應減少。此外，公司確認了與庫存輪換相關的客戶退貨資產，代表從客戶回收產品的權利，並相應減少成本收入。
合同餘額
應收款項：
公司在履行完履約義務後有無條件權利收到款項時確認應收款項。公司的應收賬款是短期的，標準付款條件通常爲30至90天。公司不要求其客戶提供擔保來支持應收賬款。公司通過逐客戶評估應收賬款來評估可收回性。爲了管理信用風險，管理層對客戶的財務狀況進行持續信用評估，監控付款表現，並評估當前經濟狀況以及可能影響未收回應收款項的未來經濟狀況的合理且可支持的預測。 對於某些客戶，公司要求在貨物發運之前提供備用信用證或預付款。公司未確認任何應收賬款覈銷或記錄任何透支損失準備金。
合同負債:
對於沒有信用條款的客戶，公司要求現金支付。 在產品計劃發貨給客戶之前的幾周，公司要求客戶提前支付。公司將收到的這些預付款記錄爲當前應計負債中的客戶預付款。截至2024年9月30日和2023年12月31日，客戶預付款分別總計$
實用豁免
公司已選擇以實際簡化方式將銷售佣金作爲發生費用，因爲攤銷期將爲一年或更短。
公司的標準付款條件通常要求客戶在公司滿足履約義務後支付
公司的未履行履約義務主要包括存放在寄售安排中的產品和客戶未付產品的採購訂單。由於公司預計會在一年內履行這些履約義務，因此公司選擇不披露這些剩餘履約義務的金額。
3.基於股票的薪酬
2014年股權激勵計劃
2013年4月，董事會通過了公司的2014年股權激勵計劃（「2014計劃」），該公司股東於2013年6月批准。2014年10月，董事會批准了對2014計劃的某些修訂。修訂後的2014計劃於2014年11月13日生效，規定最多可發行
股票補償費用
公司按以下方式確認股票報酬支出（以千爲單位）：
| 截至9月30日的三個月 |
截至9月30日的九個月 |
|||||||||||||||
| 2024 |
2023 |
2024 |
2023 |
|||||||||||||
| 營業收入成本 |
$ | $ | $ | $ | ||||||||||||
| 研發 |
||||||||||||||||
| 銷售、一般和行政費用（SG&A） |
||||||||||||||||
| 共計股份獎勵支出 |
$ | $ | $ | $ | ||||||||||||
| 與股權激勵相關的稅收優惠 (1) |
$ | $ | $ | $ | ||||||||||||
| (1) |
金額反映了與基於股票補償的稅收優惠相關的稅收，這些稅收預計在未來期間獲得稅收減免時會產生。授予公司高管的股權獎勵受到《內部稅收法典》第162(m)條規定的稅收減免限制的約束。 |
限制性股票單位 (“RSU”)
公司的 RSUs 包括基於時間的 RSUs、帶績效條件的 RSUs（PSUs）、帶市場條件的 RSUs（MSUs），以及同時帶有市場和績效條件的 RSUs（MPSUs）。具有績效條件或市場條件的獎勵需要達到預定的績效或市場目標，並經董事會薪酬委員會（「薪酬委員會」）的批准。所有獎勵都包括要求與公司繼續僱傭或提供服務的服務條件。
以下表格總結了RSU活動（單位爲千，除每股金額外）：
| 阿尼爾·謝蒂 |
PSUs和MPSUs |
MSUs |
總計 |
||||||||||||||||||||||||||||||
| 加權授予日期公允價值的平均數 |
加權授予日期公允價值的平均數 |
加權授予日期公允價值的平均數 |
加權授予日期公允價值的平均數 |
||||||||||||||||||||||||||||||
| 平均數 |
平均數 |
平均數 |
平均數 |
||||||||||||||||||||||||||||||
| 授予日期 |
授予日期 |
授予日期 |
授予日期 |
||||||||||||||||||||||||||||||
| 數量 |
公正價值 |
數量 |
公正價值 |
數量 |
公正價值 |
數量 |
公正價值 |
||||||||||||||||||||||||||
| 股份 |
每股 |
股份 |
每股 |
股份 |
每股 |
股份 |
每股 |
||||||||||||||||||||||||||
| 2024年1月1日未行使的期權 |
$ | $ | $ | $ | |||||||||||||||||||||||||||||
| 已行權 |
$ | (1) |
$ | $ | $ | ||||||||||||||||||||||||||||
| 34,105 |
( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | $ | |||||||||||||||||||||
| 被取消 |
( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | $ | |||||||||||||||||||||
| 截至2024年9月30日應收款項 |
$ | $ | $ | $ | |||||||||||||||||||||||||||||
| (1) |
金額反映了基於管理層對於在每個報告期間實現績效條件可能性評估而最終可以獲得的獎勵數量。 |
已授予的RSUs相關的內在價值爲$
基於時間的限制性股票單位：
截至2024年9月30日止九個月，薪酬委員會授予了
2024年度機構課題：
2024年2月，薪酬委員會授予
2024年2月，薪酬委員會授予
2024年執行PSU和2024年非執行PSU包含購買價格特性，員工需支付每股$
2004年員工股票購買計劃（經修訂和重新制定， “2004 ESPP”)
2023年8月16日，修改和重新制定了2004年ESPP，其中包括提供發行高達
截至2024年9月30日和2023年，根據2004年股票期權計劃，發行了股票。
發行股份的內在價值為$
| 截至九月三十日止三個月， | 截至九月三十日止九個月 | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| 預期期限（以年為單位） | 0.5 | 0.5 | 0.5 | 0.5 | ||||||||||||
| 預期波動 | 47.8 | % | 50.8 | % | 45.1 | % | 53.3 | % | ||||||||
| 無風險利率 | 5.0 | % | 5.5 | % | 5.2 | % | 5.3 | % | ||||||||
| 股息收益率 | 0.6 | % | 0.8 | % | 0.6 | % | 0.8 | % | ||||||||
2004年股票期權計劃發行的股票所得現金為$
4. 併購
2024年1月3日（「收購日」），本公司收購
購買考量
購買代價為$ ______ 百萬，包括前期支付 $ ______ 百萬和具有 $ ______ 百萬公允價值的盈餘支付條款，該條款基於在2026年之前實現一定的營業收入和EBITDA目標，並且根據股票買賣協議中的定義。購買代價中，$ ______ 百萬被分配給商譽，$ ______ 百萬被分配給可識別的無形資產。無形資產、條件性支付負債和開端資產負債表的估值是暫時估計，隨著我們完成程序可能會有變動。所獲商譽和無形資產可以作為稅務扣除。
關於收購，公司遭受了**百萬美元的交易成本，這些支出被列為當期支出，並包括在經營、總務和行政費用中的簡明綜合營業報表中。
收購價分配
Axign的購買價格分配如下（以千為單位）：
| 存貨 |
$ | |||
| 其他有形資產購入後，減去負債 |
||||
| 無形資產： |
||||
| 開發出的科技 |
||||
| 研發與知識產權 |
||||
| 已取得的總識別資產 |
||||
| 商譽 |
||||
| 總淨資產取得 |
$ |
具有有限壽命的無形資產包括具有估計剩餘使用年限八年的核心開發科技。具有無限壽命的無形資產包括在收購日期尚未達到技術可行性的未完成研發項目。採用收益法確定了開發科技和知識產權研發(IPR&D)的公允價值。
併購所產生的商譽主要歸功於整合的勞動力和預期能夠使公司在消費和汽車市場使用Axign的數字反饋科技開發具較低功耗解決方案的協同效應。預計無法在稅務上扣除商譽。
5. 資產負債表元件
存貨
存貨包括以下內容（以千為單位）：
| 九月三十日， |
12月31日， |
|||||||
| 2024 |
2023 |
|||||||
| 原材料 |
$ | $ | ||||||
| 在製品 |
||||||||
| 成品 |
||||||||
| 總計 |
$ | $ | ||||||
其他流動資產
其他流動資產包括以下內容（以千元計算）：
| 九月三十日， |
12月31日， |
|||||||
| 2024 |
2023 |
|||||||
| 預付晶圓購買 (1) |
$ | $ | ||||||
| 預付款項 |
||||||||
| 員工股酬稅收款 |
||||||||
| 其他應收款項 (1) |
||||||||
| 限制性現金 (2) |
- |
|
||||||
| 其他 |
||||||||
| 總計 |
$ | $ | ||||||
| (1) |
該公司持有 $ |
| (2) |
2023年12月31日所包括在其他流動資產中的受限現金與公司收購Axign相關的初步購買考量存放在信託賬戶中，並於2024年1月支付。詳情請參見附註4。 |
其他長期資產
其他長期資產包括以下項目（單位：千元）：
| 九月三十日， |
12月31日， |
|||||||
| 2024 |
2023 |
|||||||
| 延遲薪酬計劃資產 |
$ | $ | ||||||
| 預付晶圓購買 (1) |
||||||||
| 營運租賃使用權（“ROU”）及相關資產 (2) |
||||||||
| 其他 |
||||||||
| 總計 |
$ | $ | ||||||
| (1) |
預付晶圓採購涉及根據長期晶圓供應協議向供應商存入資金。詳情請參見註9有關供應協議。 |
| (2) |
到2024年9月30日止，營運租賃權利義務及相關資產包含一項關於建築物租賃中有利市場條件之公平價值計量。 |
其他應付負債
其他應計負債包括以下項目（以千元計）：
| 九月三十日， |
12月31日， |
|||||||
| 2024 |
2023 |
|||||||
| 分紅派息和股利相當額 |
$ | $ | ||||||
| 股票輪換和銷售退貨 |
||||||||
| 保固 |
||||||||
| 客戶預付款 |
||||||||
| 應付所得稅 |
||||||||
| 其他 |
||||||||
| 總計 |
$ | $ | ||||||
其他長期負債
其他長期負債包括以下項目（以千計）：
| 九月三十日， |
12月31日， |
|||||||
| 2024 |
2023 |
|||||||
| 推遲支付計劃負債 |
$ | $ | ||||||
| 營業租賃負債 |
||||||||
| 股息等值 |
||||||||
| 總計 |
$ | $ | ||||||
6. 租賃
承租人
公司主要有用於行政、銷售和市場辦事處、製造業作業和研發設施、員工住宅單位以及某些設備的營運租賃。這些租賃剩餘租賃期限不超過 年至
下表總結了營運租賃ROU資產和負債的餘額（以千美元計）：
| 九月三十日 | 十二月三十一日 | ||||||||
| 財務報表明細行項目 | 2024 | 2023 | |||||||
| 營運租賃 ROU 資產 |
| $ | $ | ||||||
| 營運租賃負債 |
| $ | $ | ||||||
|
| $ | $ | |||||||
以下表格概述了與租賃相關的某些信息（單位：千元，除百分比和年份外）。
| 截至9月30日的三個月 |
截至9月30日的九個月 |
|||||||||||||||
| 2024 |
2023 |
2024 |
2023 |
|||||||||||||
| 租賃成本: |
||||||||||||||||
| 經營租賃成本 |
$ | $ | $ | $ | ||||||||||||
| 其他 |
||||||||||||||||
| 租賃成本總額 |
$ | $ | $ | $ | ||||||||||||
| 截至9月30日的三個月 |
截至9月30日的九個月 |
|||||||||||||||
| 2024 |
2023 |
2024 |
2023 |
|||||||||||||
| 計入租賃負債衡量的金額所支付的現金： |
||||||||||||||||
| 營運租賃的營運現金流量 |
$ | $ | $ | $ | ||||||||||||
| 以新營業租賃負債換取的租賃資產 |
$ | $ | $ | $ | ||||||||||||
| 九月三十日， |
12月31日， |
|||||||
| 2024 |
2023 |
|||||||
| 加權平均剩餘租約期限（年） |
||||||||
| 加權平均折現利率 |
% | % | ||||||
截至2024年9月30日，租賃負債到期情況如下（以千計）：
| 2024年（剩下三個月） |
$ | |||
| 2025 |
||||
| 2026 |
||||
| 2027 |
||||
| 2028 |
||||
| 此後 |
||||
| 總剩餘租賃付款 |
||||
| 減：隱含利息 |
( |
) | ||
| 租賃負債總額 |
$ |
截至2024年9月30日, 尚未啟動的營運租賃 重要。
出租人
公司擁有某些辦公大樓，並將部分物業租給第三方，在被歸類為營運租賃的安排下。這些租約剩餘租期從少於 年至 年。其中一些租約包括承租戶有權選擇最多續租 年
在2024年和2023年截至9月30日的三個月中，與租金支付相關的收入分別為$
| 2024 年（剩餘三個月） |
$ | |||
| 2025 |
||||
| 2026 |
||||
| 2027 |
||||
| 2028 |
||||
| 之後 |
||||
| 總計 |
$ |
7. 每股凈利潤
基本每股凈利潤是透過將凈利潤除以期間內流通普通股的加權平均數計算得出的。稀釋每股凈利潤反映了如果現有證券或其他發行普通股的合同被行使或轉換為普通股，可能發生的潛在稀釋，並利用庫藏股法計算。待發生條件獲得所有所需條件後，具有可能性發行的股份，包括具有履行條件或市場條件的股權獎勵，在基本每股凈利潤中被視為已發行的普通股份，並包含在當所有必要條件都已滿足的日期的基本每股凈利潤中。在條件期限屆滿之前，包含在稀釋每股凈利潤中的可能發行股份的數量基於報告期結束時根據安排條款可能發行的股份數，如果有的話。
公司的限制性股票單位(RSUs)包含可放棄的權利，以接收現金股息等值金額，當基礎的RSUs生效時，這些金額會累積並支付給員工。如果員工未履行所需的服務要求，相應的股息等值金額將被放棄，結果導致獎勵不會生效。因此，這些獎勵不被視為每股凈利潤計算中的參與證券。
以下表格列出了基本和稀釋每股凈利潤的計算（以千為單位，除每股數額之外）：
| 截至9月30日的三個月 |
截至9月30日的九個月 |
|||||||||||||||
| 2024 |
2023 |
2024 |
2023 |
|||||||||||||
| 分子: |
||||||||||||||||
| 凈利潤 |
$ | $ | $ | $ | ||||||||||||
| 分母: |
||||||||||||||||
| 加權平均已發行股份 — 普通 |
||||||||||||||||
| 稀釋證券的影響 |
||||||||||||||||
| 加權平均已發行股份 — 稀釋 |
||||||||||||||||
| 每股淨利潤： |
||||||||||||||||
| 基礎 |
$ | $ | $ | $ | ||||||||||||
| 稀釋 |
$ | $ | $ | $ | ||||||||||||
在呈現的任何時期，具有反稀釋性的普通股等同物均不具有重大影響。
股票回購計劃
2023年10月，董事會批准了一項授權公司回購最多$百萬普通股的股票回購計劃。
根據該計劃回購的股票可能通過公開市場回購、私下談判交易或其他結構，符合適用州和聯邦證券法，由管理層認為適當的時間和數量進行。公司管理層將根據對市場條件、法律要求、股價和其他因素的評估，決定任何回購的普通股的時機和數量。回購計劃並不義務公司購買任何特定數量的股份，並可在任何時候無需事先通知而暫停、修改或停止。
2022年美國通脹減少法案要求對於2022年12月31日後進行的超過員工補償股份發行的某些股票回購價值徵收1%的消費稅。該條款對截至2024年9月30日的三個月和九個月並沒有對公司的簡明綜合基本報表產生影響。
8. SEGMENT, SIGNIFICANT CUSTOMERS AND GEOGRAPHIC INFORMATION
The Company operates in reportable segment that includes the design, development, marketing and sale of high-performance, semiconductor-based power electronics solutions for the enterprise data, storage and computing, automotive, communications, consumer and industrial markets. The Company’s chief operating decision maker is its Chief Executive Officer, who reviews financial information presented on a consolidated basis for purposes of allocating resources and evaluating financial performance. The Company derives a majority of its revenue from sales to customers located outside North America, with geographic revenue based on the customers’ ship-to locations.
The Company sells its products primarily to third-party distributors and value-added resellers, and directly to OEMs, ODMs and EMS providers. The following table summarizes those customers with sales equal to 10% or more of the Company’s total revenue:
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| Customer | 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Distributor A | % | % | % | % | ||||||||||||
| Distributor B | % | % | % | % | ||||||||||||
| Distributor C | * | 11 | % | * | % | |||||||||||
* Represents less than 10%
The Company’s agreements with these third-party customers were made in the ordinary course of business and may be terminated with or without cause by these customers with advance notice. Although the Company may experience a short-term disruption in the distribution of its products and a short-term decline in revenue if its agreement with any of the distributors were terminated, the Company believes that such termination would not have a material adverse effect on its financial statements because it would be able to engage alternative distributors, resellers and other distribution channels to deliver its products to end customers within a short period following any termination of the agreement with a distributor.
The following table summarizes those customers with accounts receivable equal to 10% or more of the Company’s total accounts receivable:
| September 30, |
December 31, |
|||||||
| Customer |
2024 |
2023 |
||||||
| Distributor A |
% | % | ||||||
| Distributor B |
% | % | ||||||
| Distributor C |
% | % | ||||||
The following is a summary of revenue by geographic region (in thousands):
| Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
| Country or Region |
2024 |
2023 |
2024 |
2023 |
||||||||||||
| China |
$ | $ | $ | $ | ||||||||||||
| Taiwan |
||||||||||||||||
| South Korea |
||||||||||||||||
| Europe |
||||||||||||||||
| United States |
||||||||||||||||
| Southeast Asia |
||||||||||||||||
| Japan |
||||||||||||||||
| Other |
||||||||||||||||
| Total |
$ | $ | $ | $ | ||||||||||||
In the second quarter of 2024, the Company reclassified certain products in its product families. The prior periods in the table below have been updated to conform with the new methodology.
The following is a summary of revenue by product family (in thousands):
| Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
| Product Family |
2024 |
2023 |
2024 |
2023 |
||||||||||||
| Direct Current (“DC”) to DC |
$ | $ | $ | $ | ||||||||||||
| Lighting Control |
||||||||||||||||
| Total |
$ | $ | $ | $ | ||||||||||||
The following is a summary of long-lived assets by geographic region (in thousands):
| September 30, |
December 31, |
|||||||
| Country |
2024 |
2023 |
||||||
| China |
$ | $ | ||||||
| United States |
||||||||
| Taiwan |
||||||||
| Other |
||||||||
| Total |
$ | $ | ||||||
9. COMMITMENTS AND CONTINGENCIES
Product Warranties
The Company generally provides either a - or -year warranty against defects in materials and workmanship and will repair the products, provide replacements at no charge to customers or issue a refund. As they are considered assurance-type warranties, the Company does not account for them as separate performance obligations. Warranty reserve requirements are generally based on a specific assessment of the products sold with warranties when a customer asserts a claim for warranty or for a product defect.
The changes in warranty reserves are as follows (in thousands):
| Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
| 2024 |
2023 |
2024 |
2023 |
|||||||||||||
| Balance at beginning of period |
$ | $ | $ | $ | ||||||||||||
| Warranties issued |
||||||||||||||||
| Repairs, replacement and refund |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
| Changes in liability for pre-existing warranties |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
| Balance at end of period |
$ | $ | $ | $ | ||||||||||||
Changes in liability for pre-existing warranties result from changes in estimates for warranties issued in prior periods.
Purchase Commitments
The Company has outstanding purchase obligations with its suppliers and other parties that require the purchases of goods or services. The purchase obligations primarily consist of wafer and other inventory purchases, assembly and other manufacturing services, construction of manufacturing and R&D facilities, purchases of production and other equipment, and license arrangements.
In May 2022, the Company entered into a long-term supply agreement in order to secure manufacturing production capacity for silicon wafers over a four-year period. As of September 30, 2024, the Company had remaining prepayments under this agreement of $
Total estimated future unconditional purchase commitments to all suppliers and other parties, net of the $120.0 million prepayment, as of September 30, 2024 were as follows (in thousands):
| 2024 (remaining three months) |
$ | |||
| 2025 |
||||
| 2026 |
||||
| 2027 |
||||
| Total |
$ |
Litigation
The Company is a party to actions and proceedings in the ordinary course of business, including challenges to the enforceability or validity of its intellectual property, claims that the Company’s products infringe on the intellectual property rights of others, and employment matters. The Company may also be subject to litigation initiated by its stockholders. These proceedings often involve complex questions of fact and law and may require the expenditure of significant funds and the diversion of other resources to prosecute and defend. The Company defends itself vigorously against any such claims. As of September 30, 2024, there were no material pending legal proceedings to which the Company was a party.
10. CASH, CASH EQUIVALENTS, INVESTMENTS AND RESTRICTED CASH
The following is a summary of the Company’s cash, cash equivalents and debt investments (in thousands):
| September 30, |
December 31, |
|||||||
| 2024 |
2023 |
|||||||
| Cash |
$ | $ | ||||||
| Money market funds |
||||||||
| Certificates of deposit |
||||||||
| Corporate debt securities |
||||||||
| U.S. treasuries and government agency bonds |
||||||||
| Auction-rate securities backed by student-loan notes |
||||||||
| Total |
$ | $ | ||||||
| September 30, |
December 31, |
|||||||
| 2024 |
2023 |
|||||||
| Reported as: |
||||||||
| Cash and cash equivalents |
$ | $ | ||||||
| Short-term investments |
||||||||
| Investment within other long-term assets |
||||||||
| Total |
$ | $ | ||||||
The following table summarizes the contractual maturities of the short-term and long-term available-for-sale investments as of September 30, 2024 (in thousands):
| Amortized Cost |
Fair Value |
|||||||
| Due in less than 1 year |
$ | $ | ||||||
| Due in 1 - 5 years |
||||||||
| Due in greater than 5 years |
||||||||
| Total |
$ | $ | ||||||
Gross realized gains and losses recognized on the sales of available-for-sale investments were not material for the periods presented.
The following tables summarize the unrealized gain and loss positions related to the available-for-sale investments (in thousands):
| September 30, 2024 |
||||||||||||||||
| Amortized Cost |
Unrealized Gains |
Unrealized Losses |
Fair Value |
|||||||||||||
| Money market funds |
$ | $ | $ | $ | ||||||||||||
| Certificates of deposit |
||||||||||||||||
| Corporate debt securities |
( |
) | ||||||||||||||
| U.S. treasuries and government agency bonds |
( |
) | ||||||||||||||
| Auction-rate securities backed by student-loan notes |
( |
) | ||||||||||||||
| Total |
$ | $ | $ | ( |
) | $ | ||||||||||
| December 31, 2023 |
||||||||||||||||
| Amortized Cost |
Unrealized Gains |
Unrealized Losses |
Fair Value |
|||||||||||||
| Money market funds |
$ | $ | $ | $ | ||||||||||||
| Certificates of deposit |
||||||||||||||||
| Corporate debt securities |
( |
) | ||||||||||||||
| U.S. treasuries and government agency bonds |
( |
) | ||||||||||||||
| Auction-rate securities backed by student-loan notes |
( |
) | ||||||||||||||
| Total |
$ | $ | $ | ( |
) | $ | ||||||||||
The following tables present information about the available-for-sale investments that had been in a continuous unrealized loss position for less than 12 months and for greater than 12 months (in thousands):
| September 30, 2024 |
||||||||||||||||||||||||
| Less than 12 Months |
Greater than 12 Months |
Total |
||||||||||||||||||||||
| Fair Value |
Unrealized Losses |
Fair Value |
Unrealized Losses |
Fair Value |
Unrealized Losses |
|||||||||||||||||||
| Corporate debt securities |
$ | $ | $ | $ | ( |
) | $ | $ | ( |
) | ||||||||||||||
| U.S. treasuries and government agency bonds |
( |
) | ( |
) | ( |
) | ||||||||||||||||||
| Auction-rate securities backed by student-loan notes |
( |
) | ( |
) | ||||||||||||||||||||
| Total |
$ | $ | ( |
) | $ | $ | ( |
) | $ | $ | ( |
) | ||||||||||||
| December 31, 2023 |
||||||||||||||||||||||||
| Less than 12 Months |
Greater than 12 Months |
Total |
||||||||||||||||||||||
| Fair Value |
Unrealized Losses |
Fair Value |
Unrealized Losses |
Fair Value |
Unrealized Losses |
|||||||||||||||||||
| Corporate debt securities |
$ | $ | ( |
) | $ | $ | ( |
) | $ | $ | ( |
) | ||||||||||||
| U.S. treasuries and government agency bonds |
( |
) | ( |
) | ||||||||||||||||||||
| Auction-rate securities backed by student-loan notes |
( |
) | ( |
) | ||||||||||||||||||||
| Total |
$ | $ | ( |
) | $ | $ | ( |
) | $ | $ | ( |
) | ||||||||||||
An impairment exists when the fair value of an investment is less than its amortized cost basis. As of September 30, 2024 and December 31, 2023, the Company did not consider the impairment of its investments to be a result of credit losses. The Company typically invests in highly rated securities, with the primary objective of minimizing the potential risk of principal loss. The Company’s investment policy generally requires securities to be investment grade and limits the amount of credit exposure to any one issuer. When evaluating a debt security for impairment, management reviews factors such as the Company’s intent to sell, or whether it will more likely than not be required to sell, the security before recovery of its amortized cost basis, the extent to which the fair value of the security is less than its cost, the financial condition of the issuer and the credit quality of the investment.
Restricted Cash
The following table provides a reconciliation of cash, cash equivalents and restricted cash reported on the Condensed Consolidated Balance Sheets to the amounts reported on the Condensed Consolidated Statements of Cash Flows (in thousands):
| September 30, |
December 31, |
|||||||
| 2024 |
2023 |
|||||||
| Cash and cash equivalents |
$ | $ | ||||||
| Restricted cash included in other current assets (1) |
||||||||
| Restricted cash included in other long-term assets (2) |
||||||||
| Total cash, cash equivalents and restricted cash reported on the Condensed Consolidated Statements of Cash Flows |
$ | $ | ||||||
| (1) |
The restricted cash included in other current assets as of December 31, 2023 was related to preliminary purchase consideration held in a trust account in connection with the Company’s acquisition of Axign and was paid in January 2024. |
| (2) |
The restricted cash included in other long-term assets as of September 30, 2024 and December 31, 2023 was related to a security deposit that is set aside in a bank account and cannot be withdrawn by the Company under the terms of a lease agreement. The restriction will end upon the expiration of the lease. |
11. FAIR VALUE MEASUREMENTS
Fair Value Hierarchy
The Company has estimated the fair value of its financial assets by applying the following hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement:
| ● | Level 1 —includes instruments with quoted prices in active markets for identical assets. |
| ● | Level 2 —includes instruments for which the valuations are based upon quoted market prices in active markets involving similar assets or inputs other than quoted prices that are observable for the assets. The market inputs used to value these instruments generally consist of market yields, recently executed transactions, broker/dealer quotes or alternative pricing sources with reasonable levels of price transparency. Pricing sources may include industry standard data providers, security master files from large financial institutions, and other third-party sources used to determine a daily market value. |
| ● | Level 3 —includes instruments for which the valuations are based on inputs that are unobservable and significant to the overall fair value measurement. |
Financial Assets Measured at Fair Value on a Recurring Basis
The following tables summarize the fair value of the Company’s financial assets measured on a recurring basis (in thousands):
| September 30, 2024 |
||||||||||||||||
| Total |
Level 1 |
Level 2 |
Level 3 |
|||||||||||||
| Money market funds |
$ | $ | $ | $ | ||||||||||||
| Certificates of deposit |
||||||||||||||||
| Corporate debt securities |
||||||||||||||||
| U.S. treasuries and government agency bonds |
||||||||||||||||
| Auction-rate securities backed by student-loan notes |
||||||||||||||||
| Mutual funds and money market funds under deferred compensation plan |
||||||||||||||||
| Total |
$ | $ | $ | $ | ||||||||||||
| December 31, 2023 |
||||||||||||||||
| Total |
Level 1 |
Level 2 |
Level 3 |
|||||||||||||
| Money market funds |
$ | $ | $ | $ | ||||||||||||
| Certificates of deposit |
||||||||||||||||
| Corporate debt securities |
||||||||||||||||
| U.S. treasuries and government agency bonds |
||||||||||||||||
| Auction-rate securities backed by student-loan notes |
||||||||||||||||
| Mutual funds and money market funds under deferred compensation plan |
||||||||||||||||
| Total |
$ | $ | $ | $ | ||||||||||||
Redemptions and changes in the fair value of the auction-rate securities classified as Level 3 assets were not material for the periods presented.
12. DEFERRED COMPENSATION PLAN
The following table summarizes the deferred compensation plan balances on the Condensed Consolidated Balance Sheets (in thousands):
| September 30, |
December 31, |
|||||||
| 2024 |
2023 |
|||||||
| Deferred compensation plan asset components: |
||||||||
| Cash surrender value of corporate-owned life insurance policies |
$ | $ | ||||||
| Fair value of mutual funds and money market funds |
||||||||
| Total |
$ | $ | ||||||
| Deferred compensation plan assets reported in: |
||||||||
| Other long-term assets |
$ | $ | ||||||
| Deferred compensation plan liabilities reported in: |
||||||||
| Accrued compensation and related benefits (short-term) |
$ | $ | ||||||
| Other long-term liabilities |
||||||||
| Total |
$ | $ | ||||||
13. OTHER INCOME, NET
The components of other income, net, are as follows (in thousands):
| Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
| 2024 |
2023 |
2024 |
2023 |
|||||||||||||
| Interest income |
$ | $ | $ | $ | ||||||||||||
| Amortization of discount on available-for-sale securities |
||||||||||||||||
| Gain (loss) on deferred compensation plan investments |
( |
) | ||||||||||||||
| Charitable contributions |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
| Other |
( |
) | ( |
) | ||||||||||||
| Total |
$ | $ | $ | $ | ||||||||||||
14. INCOME TAXES
The income tax provision or benefit for interim periods is generally determined using an estimate of the Company’s annual effective tax rate and adjusted for discrete items, if any, in the relevant period. Each quarter the estimate of the annual effective tax rate is updated, and if the Company’s estimated tax rate changes, a cumulative adjustment is made.
The income tax expense for the three months ended September 30, 2024 was $
The income tax expense for the three months ended September 30, 2023 was $
On December 27, 2023, the Bermuda Corporate Income Tax Act of 2023 (the “Bermuda CIT Act”) was enacted and signed into law. It includes a 15% CIT applicable to Bermuda businesses that are multinational enterprises (“MNE”) with annual revenue of €750M or more beginning in 2025. The Bermuda CIT Act also includes an Economic Transition Adjustment (“ETA”) that requires MNEs to revalue their assets and liabilities, excluding goodwill, at their fair value as of September 30, 2023. There is an election to opt out of the ETA. As the Bermuda CIT Act is not effective until January 1, 2025, the Company is evaluating whether or not to adopt this ETA. Based on the information available, the Company has not recorded any changes to income tax expense related to the Bermuda CIT Act as of September 30, 2024.
In September 2024, a subsidiary of the Company was granted a tax credit with a ten-year life by a foreign jurisdiction. The tax credit may be utilized beginning in tax year 2025 to offset income tax liabilities in that jurisdiction, subject to various criteria as outlined by the granting authorities. As of September 30, 2024, the Company has evaluated the sources of income necessary to benefit from the tax credit and has determined that it currently does not meet the more likely than not criteria for realization of this deferred tax asset. As a result, the Company has recorded a full valuation allowance on this deferred tax asset. The Company is evaluating the steps necessary, some of which are not within its immediate control, to generate sufficient future taxable income in the required jurisdiction and will reassess the realizability of this deferred tax asset each reporting period.
15. ACCUMULATED OTHER COMPREHENSIVE LOSS
The following table summarizes the changes in accumulated other comprehensive loss (in thousands):
| Unrealized |
||||||||||||
| Losses on |
Foreign Currency |
|||||||||||
| Available-for-Sale |
Translation |
|||||||||||
| Securities |
Adjustments |
Total |
||||||||||
| Balance as of January 1, 2024 |
$ | ( |
) | $ | ( |
) | $ | ( |
) | |||
| Other comprehensive income (loss) before reclassifications |
( |
) | ( |
) | ||||||||
| Tax effect |
||||||||||||
| Net current period other comprehensive income (loss) |
( |
) | ( |
) | ||||||||
| Balance as of March 31, 2024 |
( |
) | ( |
) | ( |
) | ||||||
| Other comprehensive income (loss) before reclassifications |
( |
) | ( |
) | ||||||||
| Amounts reclassified from accumulated other comprehensive loss |
||||||||||||
| Tax effect |
( |
) | ( |
) | ||||||||
| Net current period other comprehensive income (loss) |
( |
) | ( |
) | ||||||||
| Balance as of June 30, 2024 |
( |
) | ( |
) | ( |
) | ||||||
| Other comprehensive income before reclassifications |
||||||||||||
| Tax effect |
( |
) | ( |
) | ||||||||
| Net current period other comprehensive income |
||||||||||||
| Balance as of September 30, 2024 |
$ | ( |
) | $ | ( |
) | $ | ( |
) | |||
The amount reclassified from accumulated other comprehensive loss for the period presented was recorded in other income, net, on the Condensed Consolidated Statements of Operations.
16. DIVIDENDS AND DIVIDEND EQUIVALENTS
Cash Dividend Program
The Company has a dividend program approved by its Board of Directors, pursuant to which the Company intends to pay quarterly cash dividends on its common stock. Based on the Company’s historical practice, stockholders of record as of the last business day of the quarter are entitled to receive the quarterly cash dividends when and if declared by the Board of Directors, which are payable to the stockholders in the following month. The Board of Directors declared the following cash dividends (in thousands, except per-share amounts):
| Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
| 2024 |
2023 |
2024 |
2023 |
|||||||||||||
| Dividend declared per share |
$ | $ | $ | $ | ||||||||||||
| Total amount |
$ | $ | $ | $ | ||||||||||||
As of September 30, 2024 and December 31, 2023, accrued dividends totaled $
The declaration of any future cash dividends is at the discretion of the Board of Directors and will depend on, among other things, the Company’s financial condition, results of operations, capital requirements, business conditions, and other factors that the Board of Directors may deem relevant, as well as a determination that cash dividends are in the best interests of the Company’s stockholders.
The Company anticipates that cash used for future dividend payments will come from its domestic cash, cash generated from ongoing U.S. operations, and cash repatriated from its Bermuda subsidiary. The Company also anticipates that earnings from other foreign subsidiaries will continue to be indefinitely reinvested.
Cash Dividend Equivalent Rights
The Company’s RSUs contain rights to receive cash dividend equivalents, which entitle employees who hold RSUs to the same dividend value per share as holders of common stock. The dividend equivalents are accumulated and paid to the employees when the underlying RSUs vest. Dividend equivalents accumulated on the underlying RSUs are forfeited if the employees do not fulfill the requisite service requirement and, as a result, the awards do not vest. As of September 30, 2024 and December 31, 2023, accrued dividend equivalents totaled $
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that have been made pursuant to and in reliance on the provisions of the Private Securities Litigation Reform Act of 1995. These statements include, among others, statements concerning:
| • |
the above-average industry growth of product and market areas that we have targeted; |
| • |
our plan to increase our revenue through the introduction of new products within our existing product families as well as in new product categories and families; |
| • |
our mission statement to reduce energy and material consumption to improve all aspects of quality of life and create a sustainable future; |
| • |
the effects of macroeconomic factors, including global economic uncertainties, the Russia-Ukraine conflict and the Middle East conflict on the semiconductor industry and our business; |
| • |
the effect that liquidity of our investments has on our capital resources; |
| • |
the continuing application of our products in the enterprise data, storage and computing, automotive, communications, consumer and industrial markets; |
| • |
estimates of our future liquidity requirements; |
| • |
the cyclical nature of the semiconductor industry; |
| • |
our belief that we may incur significant legal expenses that vary with the level of activity in each of our current or future legal proceedings; |
| • |
expectations regarding protection of our proprietary technology; |
| • |
business outlook for the remainder of 2024 and beyond; |
| • |
the factors that we believe will impact our business, operations and financial condition, as well as our ability to achieve revenue growth; |
| • |
the expected percentage of our total revenue from various end markets; |
| • |
our ability to identify, acquire and integrate companies, businesses and products, and achieve the anticipated benefits from such acquisitions and integrations; |
| • |
the expected impact of various U.S. and international tax laws and regulations on our income tax provision, financial position and cash flows; |
| • |
our plan to repatriate cash from our subsidiary in Bermuda; |
| • |
our intention and ability to continue our stock repurchase program and pay cash dividends and dividend equivalents; |
| • |
the factors that differentiate us from our competitors; and |
| • |
our ability to adequately remediate our material weakness. |
In some cases, words such as “would,” “could,” “may,” “should,” “predict,” “potential,” “targets,” “continue,” “anticipate,” “expect,” “intend,” “plan,” “believe,” “seek,” “estimate,” “project,” “forecast,” “will,” the negative of these terms or other variations of such terms and similar expressions relating to the future identify forward-looking statements. All forward-looking statements are based on our current outlook, expectations, estimates, projections, beliefs and plans or objectives about our business, our industry and the global economy, including our expectations regarding the potential impacts of macroeconomic factors, such as global economic uncertainties, the Russia-Ukraine conflict and the Middle East conflict on the semiconductor industry and our business. These statements are not guarantees of future performance and are subject to significant risks and uncertainties. Actual events or results could differ materially and adversely from those expressed in any such forward-looking statements. Risks and uncertainties that could cause actual results to differ materially include those set forth throughout this Quarterly Report on Form 10-Q and in our Annual Report on Form 10-K including, in particular, in the sections entitled “Risk Factors.” Except as required by law, we disclaim any duty, and undertake no obligation, to update any forward-looking statements, whether as a result of new information relating to existing conditions, future events or otherwise or to release publicly the results of any future revisions we may make to forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. Readers are cautioned not to place undue reliance on such statements, which speak only as of the date of this Quarterly Report on Form 10-Q and entail significant risks. Readers should carefully review future reports and documents that we file from time to time with the SEC, such as our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and any Current Reports on Form 8-K.
Overview
We are a fabless global company that provides high-performance, semiconductor-based power electronics solutions. MPS’s mission is to reduce energy and material consumption to improve all aspects of quality of life and create a sustainable future. Founded in 1997 by our CEO Michael Hsing, MPS has three core strengths: deep system-level knowledge, strong semiconductor design expertise, and innovative proprietary technologies in the areas of semiconductor processes, system integration, and packaging. These combined advantages are designed to enable MPS to deliver reliable, compact, and monolithic solutions that are highly energy-efficient, cost-effective, and environmentally responsible while providing a consistent return on investment to our stockholders.
We operate in the cyclical semiconductor industry. We are subject to industry downturns, but we have targeted product and market areas that we believe have the ability to offer above average industry performance over the long term. Historically, our revenue has generally been higher in the second half of the year than in the first half although various factors, such as market conditions and the timing of key product introductions, could impact this trend.
We work with third parties to manufacture and assemble our ICs. This has enabled us to limit our capital expenditures and fixed costs, while focusing our engineering and design resources on our core strengths.
Following the introduction of a product, our sales cycle generally takes a number of quarters after we receive an initial customer order for a new product to ramp up. Typical supply chain lead times for orders are generally 16 to 26 weeks. These factors, combined with the fact that our customers can cancel or reschedule orders without significant penalty to the customer, make the forecasting of our orders, revenue and expenses difficult.
We derive most of our revenue from sales through distribution arrangements and direct sales to customers in Asia, where our products are incorporated into end-user products. Our revenue from sales to customers in Asia was 94% and 89% of our total revenue for the three months ended September 30, 2024 and 2023, respectively, and 93% and 86% of our total revenue for the nine months ended September 30, 2024 and 2023, respectively. Our revenue from indirect sales to one customer, which primarily comprised power management solutions for artificial intelligence (“AI”) applications, was 15% and 12% of our total revenue for the three months ended September 30, 2024 and 2023, respectively, and 18% and 7% of our total revenue for the nine months ended September 30, 2024 and 2023, respectively.
We derive a majority of our revenue from the sales of our DC to DC converter products which serve the enterprise data, storage and computing, automotive, communications, consumer and industrial markets. We believe our ability to achieve revenue growth will depend, in part, on our ability to develop new products, enter new market segments, gain market share, manage litigation risk, diversify our customer base and continue to secure manufacturing capacity.
Macroeconomic Conditions and Regulations
The semiconductor industry has historically been impacted by various macro-economic challenges including fluctuations in consumer spending, fluctuations in demand for semiconductors, rising inflation, increased interest rates, and fluctuations in currency rates. We remain cautious in light of continued challenging macroeconomic conditions and will continue to monitor the potential impact on our operations. The extent and duration of the direct and indirect impact of macroeconomic events on our business, results of operations and overall financial position remain uncertain and depend on future developments.
We closely monitor changes to export control laws, trade regulations and other trade requirements. To date, no restrictions have had a material impact on our revenue and operations. We will continue to monitor any changes to export control laws, trade regulations and other trade requirements and are committed to complying with all applicable trade laws, regulations and other requirements.
Critical Accounting Policies and Estimates
In preparing our condensed consolidated financial statements in accordance with GAAP, we are required to make estimates, assumptions and judgments that affect the amounts reported in our financial statements and the accompanying disclosures. Estimates and judgments used in the preparation of our condensed consolidated financial statements are, by their nature, uncertain and unpredictable, and depend upon, among other things, many factors outside of our control, including demand for our products, economic conditions and other current and future events, such as macroeconomic factors, including the impact of global economic uncertainties, Russia-Ukraine conflict and the Middle East conflict. Actual results could differ from these estimates and assumptions, and any such differences may be material to our condensed consolidated financial statements.
Results of Operations
The table below sets forth the data on the Condensed Consolidated Statements of Operations as a percentage of revenue:
| Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||||||||||||||||||
| 2024 |
2023 |
2024 |
2023 |
|||||||||||||||||||||||||||||
| (In thousands, except percentages) |
||||||||||||||||||||||||||||||||
| Revenue |
$ | 620,119 | 100.0 | % | $ | 474,867 | 100.0 | % | $ | 1,585,435 | 100.0 | % | $ | 1,367,060 | 100.0 | % | ||||||||||||||||
| Cost of revenue |
276,676 | 44.6 | 211,326 | 44.5 | 708,973 | 44.7 | 597,064 | 43.7 | ||||||||||||||||||||||||
| Gross profit |
343,443 | 55.4 | 263,541 | 55.5 | 876,462 | 55.3 | 769,996 | 56.3 | ||||||||||||||||||||||||
| Operating expenses: |
||||||||||||||||||||||||||||||||
| Research and development |
85,051 | 13.7 | 64,787 | 13.6 | 238,986 | 15.1 | 192,184 | 14.1 | ||||||||||||||||||||||||
| Selling, general and administrative |
94,364 | 15.2 | 63,188 | 13.3 | 261,425 | 16.5 | 205,645 | 15.0 | ||||||||||||||||||||||||
| Total operating expenses |
179,415 | 28.9 | 127,975 | 26.9 | 500,411 | 31.6 | 397,829 | 29.1 | ||||||||||||||||||||||||
| Operating income |
164,028 | 26.5 | 135,566 | 28.6 | 376,051 | 23.7 | 372,167 | 27.2 | ||||||||||||||||||||||||
| Other income, net |
10,278 | 1.6 | 2,289 | 0.5 | 27,330 | 1.7 | 14,129 | 1.1 | ||||||||||||||||||||||||
| Income before income taxes |
174,306 | 28.1 | 137,855 | 29.1 | 403,381 | 25.4 | 386,296 | 28.3 | ||||||||||||||||||||||||
| Income tax expense |
29,876 | 4.8 | 16,692 | 3.6 | 66,044 | 4.1 | 55,827 | 4.1 | ||||||||||||||||||||||||
| Net income |
$ | 144,430 | 23.3 | % | $ | 121,163 | 25.5 | % | $ | 337,337 | 21.3 | % | $ | 330,469 | 24.2 | % | ||||||||||||||||
Revenue
The following table summarizes our revenue by end market:
| Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||||||||||||||||||
| End Market |
2024 |
% of Revenue |
2023 |
% of Revenue |
2024 |
% of Revenue |
2023 |
% of Revenue |
||||||||||||||||||||||||
| (In thousands, except percentages) |
||||||||||||||||||||||||||||||||
| Enterprise Data |
$ | 184,459 | 29.7 | % | $ | 98,938 | 20.8 | % | $ | 521,397 | 32.9 | % | $ | 194,083 | 14.2 | % | ||||||||||||||||
| Storage and Computing |
143,993 | 23.2 | 129,462 | 27.3 | 365,069 | 23.0 | 373,827 | 27.3 | ||||||||||||||||||||||||
| Automotive |
111,344 | 18.0 | 95,171 | 20.0 | 285,629 | 18.0 | 304,907 | 22.3 | ||||||||||||||||||||||||
| Communications |
71,884 | 11.6 | 46,786 | 9.9 | 162,095 | 10.2 | 163,985 | 12.0 | ||||||||||||||||||||||||
| Consumer |
64,401 | 10.4 | 62,369 | 13.1 | 144,704 | 9.1 | 190,919 | 14.0 | ||||||||||||||||||||||||
| Industrial |
44,038 | 7.1 | 42,141 | 8.9 | 106,541 | 6.8 | 139,339 | 10.2 | ||||||||||||||||||||||||
| Total |
$ | 620,119 | 100.0 | % | $ | 474,867 | 100.0 | % | $ | 1,585,435 | 100.0 | % | $ | 1,367,060 | 100.0 | % | ||||||||||||||||
Revenue for the three months ended September 30, 2024 was $620.1 million, an increase of $145.2 million, or 30.6%, from $474.9 million for the three months ended September 30, 2023. The increase in revenue was primarily due to higher shipment volume.
For the three months ended September 30, 2024, revenue from the enterprise data market increased $85.5 million, or 86.4%, from the same period in 2023. This increase was primarily due to higher sales of our power management solutions for AI applications. Revenue from the storage and computing market for the three months ended September 30, 2024 increased $14.5 million, or 11.2%, from the same period in 2023. This increase was primarily due to higher sales of commercial notebook and storage applications. Third quarter 2024 automotive revenue increased $16.2 million, or 17.0%, from the same period in 2023. This increase was primarily due to higher sales of applications supporting advanced driver assistance systems and lighting, partially offset by lower sales of applications supporting infotainment. Revenue from the communications market increased $25.1 million, or 53.6%, from the same period in 2023. This increase was primarily driven by higher demand for infrastructure related products and wireless applications. Third quarter 2024 revenue from the consumer market increased $2.0 million, or 3.3%, from the same period in 2023. Revenue from the industrial market increased $1.9 million, or 4.5%, from the same period in 2023.
Revenue for the nine months ended September 30, 2024 was $1,585.4 million, an increase of $218.3 million, or 16.0%, from $1,367.1 million for the nine months ended September 30, 2023. The increase in revenue was primarily due to higher average selling prices resulting primarily from product mix.
For the nine months ended September 30, 2024, revenue from the enterprise data market increased $327.3 million, or 168.6%, from the same period in 2023. This increase was primarily due to higher sales of our power management solutions for AI applications. Revenue from the storage and computing market for the first nine months of 2024 decreased $8.8 million, or 2.3%, from the same period in 2023. This decrease was primarily due to lower sales of storage, graphic card and other applications, partially offset by higher sales of commercial notebooks. Revenue from the automotive market for the first nine months of 2024 decreased $19.3 million, or 6.3%, from the same period in 2023. This decrease was primarily due to lower sales of applications supporting infotainment, body electronics and USB connectors, partially offset by higher sales of applications supporting advanced driver assistance systems. Revenue from the communications market decreased $1.9 million, or 1.2%, from the same period in 2023. For the nine months ended September 30, 2024, consumer revenue decreased $46.2 million, or 24.2%, from the same period in 2023. This decrease was broad-based and primarily driven by lower sales of products for gaming, home appliances and mobile devices. Revenue from the industrial market decreased $32.8 million, or 23.5%, from the same period in 2023. This decrease was mainly driven by lower sales of products related to industrial meter, security and instrumentation applications.
Cost of Revenue and Gross Margin
Cost of revenue primarily consists of costs incurred to manufacture, assemble and test our products, as well as warranty costs, inventory-related and other overhead costs, and stock-based compensation expenses.
| Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
| 2024 |
2023 |
2024 |
2023 |
|||||||||||||
| (In thousands, except percentages) |
||||||||||||||||
| Cost of revenue |
$ | 276,676 | $ | 211,326 | $ | 708,973 | $ | 597,064 | ||||||||
| As a percentage of revenue |
44.6 | % | 44.5 | % | 44.7 | % | 43.7 | % | ||||||||
| Gross profit |
$ | 343,443 | $ | 263,541 | $ | 876,462 | $ | 769,996 | ||||||||
| Gross margin |
55.4 | % | 55.5 | % | 55.3 | % | 56.3 | % | ||||||||
Cost of revenue was $276.7 million, or 44.6% of revenue, for the three months ended September 30, 2024, and $211.3 million, or 44.5% of revenue, for the three months ended September 30, 2023. The $65.4 million increase in cost of revenue was primarily driven by higher shipment volume, particularly of power management solutions for AI applications.
Gross margin was 55.4% for the three months ended September 30, 2024, compared with 55.5% for the three months ended September 30, 2023. The decrease in gross margin was mainly driven by an increase in inventory write-downs as a percentage of revenue, partially offset by lower warranty expenses as a percentage of revenue and product mix.
Cost of revenue was $709.0 million, or 44.7% of revenue, for the nine months ended September 30, 2024, and $597.1 million, or 43.7% of revenue, for the nine months ended September 30, 2023. The $111.9 million increase in cost of revenue was primarily driven by higher average costs due to product mix.
Gross margin was 55.3% for the nine months ended September 30, 2024, compared with 56.3% for the nine months ended September 30, 2023. The decrease in gross margin was mainly driven by an increase in inventory write-downs and warranty expenses as a percentage of revenue, partially offset by lower manufacturing overhead costs.
Research and Development
R&D expenses primarily consist of cash compensation and benefits, stock-based compensation and deferred compensation for design and product engineers, expenses related to new product development and supplies, and facility costs.
| Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
| 2024 |
2023 |
2024 |
2023 |
|||||||||||||
| (In thousands, except percentages) |
||||||||||||||||
| R&D expenses |
$ | 85,051 | $ | 64,787 | $ | 238,986 | $ | 192,184 | ||||||||
| As a percentage of revenue |
13.7 | % | 13.6 | % | 15.1 | % | 14.1 | % | ||||||||
R&D expenses were $85.1 million, or 13.7% of revenue, for the three months ended September 30, 2024, and $64.8 million, or 13.6% of revenue, for the three months ended September 30, 2023. The $20.3 million increase in R&D expenses was primarily due to a $6.9 million increase in cash compensation and benefits, a $3.5 million increase in new product development expenses, a $3.0 million increase in stock-based compensation expenses and related payroll taxes, a $1.9 million increase in expense related to changes in the value of deferred compensation plan liabilities, and a $0.9 million increase in laboratory supplies.
R&D expenses were $239.0 million, or 15.1% of revenue, for the nine months ended September 30, 2024, and $192.2 million, or 14.1% of revenue, for the nine months ended September 30, 2023. The $46.8 million increase in R&D expenses was primarily due to a $22.2 million increase in cash compensation and benefits, a $9.0 million increase in stock-based compensation expenses and related payroll taxes, a $3.2 million increase in new product development expenses, a $1.9 million increase in expense related to changes in the value of deferred compensation plan liabilities, and $1.9 million increase in laboratory supplies.
Selling, General and Administrative
SG&A expenses primarily include cash compensation and benefits, stock-based compensation and deferred compensation for sales, marketing and administrative personnel, sales commissions, travel expenses, facilities costs, third party service fees and legal expenses.
| Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
| 2024 |
2023 |
2024 |
2023 |
|||||||||||||
| (In thousands, except percentages) |
||||||||||||||||
| SG&A expenses |
$ | 94,364 | $ | 63,188 | $ | 261,425 | $ | 205,645 | ||||||||
| As a percentage of revenue |
15.2 | % | 13.3 | % | 16.5 | % | 15.0 | % | ||||||||
SG&A expenses were $94.4 million, or 15.2% of revenue, for the three months ended September 30, 2024, and $63.2 million, or 13.3% of revenue, for the three months ended September 30, 2023. The $31.2 million increase in SG&A expenses was primarily driven by a $14.4 million increase in stock-based compensation expenses, a $5.5 million increase in cash compensation and benefits, a $2.8 million increase in expense related to changes in the value of deferred compensation plan liabilities, a $2.6 million increase in sales commissions, and a $2.2 million increase in legal expenses.
SG&A expenses were $261.4 million, or 16.5% of revenue, for the nine months ended September 30, 2024, and $205.6 million, or 15.0% of revenue, for the nine months ended September 30, 2023. The $55.8 million increase in SG&A expenses was primarily driven by a $32.7 million increase in stock-based compensation expenses, a $6.9 million increase in cash compensation and benefits, a $3.9 million increase in professional services, and a $2.7 million increase in expense related to changes in the value of deferred compensation plan liabilities.
Other Income, Net
Other income, net, was $10.3 million for the three months ended September 30, 2024, compared with $2.3 million for the three months ended September 30, 2023. The increase in other income was primarily due to an increase in amortization of discount on available-for-sale securities, and an increase in income related to changes in the value of deferred compensation plan investments.
Other income, net, was $27.3 million for the nine months ended September 30, 2024, compared with $14.1 million for the nine months ended September 30, 2023. The increase in other income was primarily due to an increase in amortization of discount on available-for-sale securities, and an increase in income related to changes in the value of deferred compensation plan investments, partially offset by an increase in charitable contributions.
Income Tax Expense
The income tax provision for interim periods is generally determined using an estimate of our annual effective tax rate and adjusted for discrete items, if any, in the relevant period. Each quarter the estimate of the annual effective tax rate is updated, and if our estimated tax rate changes, a cumulative adjustment is made.
The income tax expense for the three months ended September 30, 2024 was $29.9 million, or 17.1% of pre-tax income. The income tax expense for the nine months ended September 30, 2024 was $66.0 million, or 16.4% of pre-tax income. The effective tax rates were lower than the federal statutory rate of 21% primarily due to foreign income from our subsidiaries in Bermuda and China being taxed at lower statutory tax rates, and excess tax benefits from stock-based compensation. The decrease in the effective tax rates relative to the federal statutory rate was partially offset by the inclusion of the GILTI tax.
The income tax expense for the three months ended September 30, 2023 was $16.7 million, or 12.1% of pre-tax income. The income tax expense for the nine months ended September 30, 2023 was $55.8 million, or 14.5% of pre-tax income. The effective tax rates were lower than the federal statutory rate of 21% primarily due to foreign income from our subsidiaries in Bermuda and China being taxed at lower statutory tax rates, and excess tax benefits from stock-based compensation. The decrease in the effective tax rates relative to the federal statutory rate was partially offset by the inclusion of the GILTI tax.
The Organization for Economic Co-operation and Development enacted model rules for a new global minimum tax framework, also known as Pillar Two, and certain governments globally have enacted, or are in the process of enacting, legislation considering these model rules. These rules did not have a material impact on our taxes for the three and nine months ended September 30, 2024.
In December 2023, the Bermuda CIT Act was enacted and signed into law. See Note 14 for further details.
In September 2024, one of our subsidiaries was granted a tax credit with a ten-year life by a foreign jurisdiction. The tax credit may be utilized beginning in tax year 2025 to offset income tax liabilities in that jurisdiction, subject to various criteria as outlined by the granting authorities. As of September 30, 2024, we have evaluated the sources of income necessary to benefit from the tax credit and have determined that we currently do not meet the more likely than not criteria for realization of this deferred tax asset. As a result, we have recorded a full valuation allowance on this deferred tax asset. We are evaluating the steps necessary, some of which are not within our immediate control, to generate sufficient future taxable income in the required jurisdiction and will reassess the realizability of this deferred tax asset each reporting period. A release of the valuation allowance could result in a significant one-time noncash tax benefit.
Liquidity and Capital Resources
| September 30, |
December 31, |
|||||||
| 2024 |
2023 |
|||||||
| (In thousands, except percentages) |
||||||||
| Cash and cash equivalents |
$ | 700,347 | $ | 527,843 | ||||
| Short-term investments |
762,003 | 580,633 | ||||||
| Total cash, cash equivalents and short-term investments |
$ | 1,462,350 | $ | 1,108,476 | ||||
| Percentage of total assets |
51.2 | % | 45.5 | % | ||||
| Total current assets |
$ | 2,160,450 | $ | 1,819,499 | ||||
| Total current liabilities |
(336,588 | ) | (235,035 | ) | ||||
| Working capital |
$ | 1,823,862 | $ | 1,584,464 | ||||
As of September 30, 2024, we had cash and cash equivalents of $700.3 million and short-term investments of $762.0 million, compared with cash and cash equivalents of $527.8 million and short-term investments of $580.6 million as of December 31, 2023. As of September 30, 2024, $506.5 million of cash and cash equivalents and $725.5 million of short-term investments were held by our international subsidiaries. We have repatriated and will likely repatriate cash from our Bermuda subsidiary to fund our expenditures. We anticipate that earnings from other foreign subsidiaries will continue to be indefinitely reinvested.
Summary of Cash Flows
The following table summarizes our cash flow activities:
| Nine Months Ended September 30, |
||||||||
| 2024 |
2023 |
|||||||
| (In thousands) |
||||||||
| Net cash provided by operating activities |
$ | 620,729 | $ | 484,900 | ||||
| Net cash used in investing activities |
(296,128 | ) | (212,695 | ) | ||||
| Net cash used in financing activities |
(186,853 | ) | (129,311 | ) | ||||
| Effect of change in exchange rates |
1,552 | (10,323 | ) | |||||
| Net increase in cash, cash equivalents and restricted cash |
$ | 139,300 | $ | 132,571 | ||||
For the nine months ended September 30, 2024, the $135.8 million increase in cash provided by operating activities compared to the same period in 2023 was primarily due to increased accounts receivable collections and the collection of $50.0 million of other receivables related to a long-term wafer supply agreement, partially offset by increased inventory purchases. This increase was also affected by changes in other working capital.
For the nine months ended September 30, 2024, the $83.4 million increase in cash used in investing activities compared to the same period in 2023 was primarily due to an increase of $37.2 million in purchases of property and equipment and the $33.3 million acquisition in the nine months ended September 30, 2024.
For the nine months ended September 30, 2024, the $57.5 million increase in cash used in financing activities compared to the same period in 2023 was primarily due to an increase of $43.5 million in dividend and dividend equivalent payments.
Cash Requirements
Although consequences of economic uncertainties and macroeconomic conditions and other factors could adversely affect our liquidity and capital resources in the future, and our cash requirements may fluctuate based on the timing and extent of many factors such as those discussed above, we believe that our balances of cash, cash equivalents and short-term investments of $1,462.4 million as of September 30, 2024, along with cash generated by ongoing operations, will be sufficient to satisfy our liquidity requirements for the next 12 months and beyond.
Our material cash requirements include the following contractual and other obligations:
Purchase Obligations
Purchase obligations represent commitments to our suppliers and other parties requiring the purchases of goods or services. Our purchase obligations primarily consist of wafer and other inventory purchases, assembly and other manufacturing services, construction of manufacturing and R&D facilities, purchases of production and other equipment, and license arrangements.
In May 2022, we entered into a long-term supply agreement in order to secure manufacturing production capacity for silicon wafers over a four-year period. As of September 30, 2024, we had remaining prepayments under this agreement of $120.0 million, of which $60.0 million was classified as short-term.
As of September 30, 2024, total estimated future unconditional purchase commitments to all suppliers and other parties, net of the $120.0 million prepayment, were $586.9 million, of which $470.9 million was classified as short-term.
Transition Tax Liability
The transition tax liability represents the one-time, mandatory deemed repatriation tax imposed on previously deferred foreign earnings under the U.S. Tax Cuts and Jobs Act enacted in December 2017 (the “2017 Tax Act”). As permitted by the 2017 Tax Act, we have elected to pay the tax liability in installments on an interest-free basis through 2025. As of September 30, 2024, the remaining liability totaled $6.2 million, all of which was classified as short-term.
Operating Leases
Operating lease obligations represent the undiscounted remaining lease payments primarily for our leased facilities and equipment. As of September 30, 2024, these obligations totaled $16.3 million, of which $2.8 million was classified as short-term.
Capital Return to Stockholders
In October 2023, our Board of Directors approved a stock repurchase program authorizing us to repurchase up to $640.0 million in the aggregate of our common stock through October 29, 2026. Shares are retired upon repurchase. We repurchased 6,000 and 19,000 shares of our common stock for an aggregate purchase price of $5.5 million and $14.2 million during the three and nine months ended September 30, 2024, respectively. As of September 30, 2024, $622.1 million remained available for future repurchases under the program.
We currently have a dividend program approved by our Board of Directors, pursuant to which we intend to pay quarterly cash dividends on our common stock. Based on our historical practice, stockholders of record as of the last business day of the quarter are entitled to receive the quarterly cash dividends when and if declared by the Board of Directors, which are payable to the stockholders in the following month. As of September 30, 2024, accrued dividends totaled $61.0 million. The declaration of any future cash dividends is at the discretion of our Board of Directors and will depend on, among other things, our financial condition, results of operations, capital requirements, business conditions and other factors that our Board of Directors may deem relevant, as well as a determination that cash dividends are in the best interests of our stockholders.
Other Long-Term Obligations
Other long-term obligations primarily include payments for deferred compensation plan liabilities and accrued dividend equivalents. As of September 30, 2024, these obligations totaled $88.3 million.
Item 3. Quantitative and Qualitative Disclosures About Market Risk
For a discussion of market risks, refer to Item 7A, “Quantitative and Qualitative Disclosures about Market Risk” in our Annual Report on Form 10-K for the year ended December 31, 2023. During the three and nine months ended September 30, 2024, there were no material changes or developments that would have materially altered, or were reasonably likely to materially alter, the market risk assessment performed as of December 31, 2023.
Item 4. Controls and Procedures
Evaluation of Disclosure Controls and Procedures
Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of our disclosure controls and procedures pursuant to Rule 13a-15(e) and Rule 15d-15(e) under the Securities Exchange Act of 1934 as of the end of the period covered by this Quarterly Report on Form 10-Q.
Based on this evaluation, and due to the finding of the material weakness described below, our Chief Executive Officer and Chief Financial Officer concluded that, as of September 30, 2024, our disclosure controls and procedures were not effective to provide reasonable assurance that information we are required to disclose in reports that we file or submit under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms.
As previously reported in our Annual Report on Form 10-K for the year ended December 31, 2023, during the year-end financial reporting process of fiscal year 2023, a material weakness was identified in internal control over financial reporting within the Company’s demand forecast process regarding excess and obsolete inventory. The material weakness resulted from ineffective design of the controls related to management’s review and documentation of the Company’s inventory demand information and other assumptions used to determine the inventory carrying value adjustments necessary to record such quantities at the lower of their cost or net realizable value.
A material weakness is a deficiency, or a combination of deficiencies in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the Company’s annual or interim consolidated financial statements will not be prevented or detected on a timely basis. This material weakness did not result in a misstatement to the audited consolidated financial statements for the year ended December 31, 2023.
Notwithstanding the material weakness in internal control over financial reporting described above, management believes and has concluded that the condensed consolidated financial statements included in this Quarterly Report on Form 10-Q fairly present, in all material respects, our financial position, results of operations and cash flows for the periods presented in conformity with GAAP.
Ongoing Remediation of Previously Identified Material Weakness
With respect to the material weakness described above, management, under the oversight of the Audit Committee, has implemented measures designed to ensure that control deficiencies contributing to the material weakness are remediated, such that these controls are designed, implemented, and operating effectively. However, the weakness will not be considered remediated until the applicable controls operate for a sufficient period of time and management has concluded, through testing, that these controls are operating effectively. The Company will monitor the effectiveness of its remediation plan and refine its remediation plan as appropriate.
Changes in Internal Control over Financial Reporting
As described above, we are taking steps to remediate the material weakness in our internal control over financial reporting. Other than in connection with the remediation process described above, no change in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) occurred during the quarter ended September 30, 2024 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.
Limitations on Effectiveness of Controls and Procedures
In designing and evaluating the disclosure controls and procedures, management recognizes that any set of controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. In addition, the design of disclosure controls and procedures must reflect the fact that there are resource constraints, and that management is required to apply its judgment in evaluating the benefits of possible controls and procedures relative to their costs.
We are a party to actions and proceedings in the ordinary course of business, including challenges to the enforceability or validity of our intellectual property, claims that our products infringe on the intellectual property rights of others, and employment matters. We may also be subject to litigation initiated by our stockholders. These proceedings often involve complex questions of fact and law and may require the expenditure of significant funds and the diversion of other resources to prosecute and defend. We defend ourselves vigorously against any such claims. As of September 30, 2024, there were no material pending legal proceedings to which we were a party.
The Company’s business, reputation, results of operations, financial condition and stock price can be affected by a number of factors, whether currently known or unknown, including those described in Part I, Item 1A of the Annual Report on Form 10-K for the year ended December 31, 2023 under the heading “Risk Factors.” When any one or more of these risks materialize from time to time, the Company’s business, reputation, results of operations, financial condition and stock price can be materially and adversely affected. There have been no material changes to the Company’s risk factors since the filing of the Annual Report on Form 10-K for the year ended December 31, 2023.
發行人購置股權證券
2023年10月，我們的董事會批准了一項股票回購計畫，授權我們在2026年10月29日前回購最多64000萬美元我們普通股的股份總額。股份在回購時被注銷。在截至2024年9月30日的三個月和九個月內，我們分別回購了6,000和19,000股我們的普通股，總購買價為550萬和1420萬美元。
根據適用的州和聯邦證券法，我們可以通過公開市場回購、私下協商交易或其他結構來進行股票回購計劃，至管理層認為適當的時候和金額。我們的管理層將根據對市場條件、法律要求、股價和其他因素的評估來決定回購的普通股的時間和股數。回購計劃不會迫使我們購買任何特定數量的股份，並且可以在任何時候暫停、修改或終止而無需事先通知。
以下表格顯示了我們在2024年9月30日結束的三個月內的股票回購交易細節：
| 期間 |
購買股份總數 |
每股平均支付價 |
作為公開公佈計劃一部分購買的股份總數 |
可能根據本計劃購買的股份的估計美元價值 |
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| （以千計，每股金額除外） |
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| 二零二四年七月一日至二零二四年七月三十一日 |
2 | $ | 837.82 | 2 | $ | 625,790 | ||||||||||
| 二零二四年八月一日至二零二四年八月三十一日 |
2 | $ | 872.16 | 2 | $ | 623,871 | ||||||||||
| 二零二四年九月一日至二零二四年九月三十日 |
2 | $ | 885.99 | 2 | $ | 622,100 | ||||||||||
| 總計 |
6 | $ | 864.68 | 6 | ||||||||||||
無。
暫不適用。
我們的某些高管根據1934年修訂後的《證券交易法》第10b5-1(c)條款訂定了交易計劃。交易計劃是一份書面文件，預先確定了未來購買或出售我們普通股的數量、價格和日期（或確定數量、價格和日期的公式），包括根據2004年員工持股計劃獲得的股份的行使和出售，及RSUs解禁時。
以下表格彙總了在2024年9月30日結束的三個月內採用旨在滿足第10b5-1(c)條款肯定防御條件的交易計劃情況：
| 姓名和头衔 | 採納日期 | 計劃期限 | 預期出售金額（以股份計） | |||
| , |
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| 天從發票日期計算，被視為商業合理。 | |||
| , * |
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| 天從發票日期計算，被視為商業合理。 | |||
| , |
|
| 天從發票日期計算，被視為商業合理。 | |||
| , |
|
| 天從發票日期計算，被視為商業合理。 |
*代表Sciammas家族2020 Irrevocable Trust。
在2024年9月30日結束的三個月內， 交易計劃旨在滿足10b5-1(c)條規的肯定防守條件被修改或終止，並 其他不打算符合第10b5-1(c)規則積極自我防衛的書面交易安排已被採納、修改或終止。
| 展覽 的修改主要是針對匯率調整和所得稅已付信息改進所得稅披露，以回應投資者對所得稅信息更多的透明度要求。 |
描述 |
| 31.1 |
根據《證券交易法》第13a-14(a)條及第15d-14(a)條，簽署執行長的認證書，該法案乃根據2002年《薩班斯-豪利法案》第302條獲得通過。 |
| 31.2 |
根據《證券交易法》第13a-14(a)條及第15d-14(a)條，簽署財務長的認證書，該法案乃根據2002年《薩班斯-豪利法案》第302條獲得通過。 |
| 32.1* |
根據《刑法》第1350條及根據2002年《薩班斯-豪利法案》第906條獲得通過，簽署執行長和致富金融(臨時代碼)的認證書。 |
| 101.INS |
Inline XBRL 實例文件 - 實例文件在交互式數據文件中未出現，因為其XBRL標籤嵌入在Inline XBRL文件中。 |
| 101.SCH |
Inline XBRL分類擴充模式文件 |
| 101.CAL |
Inline XBRL分類擴充計算鏈接庫文件 |
| 101.DEF |
Inline XBRL分類擴充定義鏈接庫文件 |
| 101.LAB |
Inline XBRL分類擴充標記鏈接庫文件 |
| 101.PRE |
Inline XBRL分類擴充演示鏈接庫文件 |
| 104 |
封面互動數據檔（格式為內嵌XBRL，包含於展覽101中） |
| * |
本展品不應被視為《證券交易法》第18條的文件，也不應被視為在《證券法》或《證券交易法》的任何提交中，不論是在本日期前還是後製成的，也不論該提交中是否有一般性的納入語言。 |
單片電源系統股份有限公司
簽名
根據1934年證券交易所法案的要求，本公司已經授權下述人員代表本公司簽署此報告。
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MONOLITHIC POWER SYSTEMS，INC。 |
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| Dated: November 6, 2024 |
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作者： |
/s/ t. Bernie Blegen |
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t. Bernie Blegen |
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執行副總裁兼財務長 |
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(經過授權的主管及財務長 |
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財務及會計主管) |
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