Monolithic Power Systems Inc (MPWR) Reports Q3 2023 Earnings, Reveals 7.6% QoQ Revenue Increase
Monolithic Power Systems Inc (NASDAQ:MPWR) reported a Q3 2023 revenue of $474.9 million, a 7.6% increase from Q2 2023 but a 4.1% decrease YoY.
GAAP gross margin was 55.5%, down from 58.7% in Q3 2022.
GAAP operating income stood at $135.6 million, compared to $151.9 million in the same period last year.
Revenue for the nine months ended September 30, 2023, was $1,367.1 million, a 2.5% increase YoY.
Monolithic Power Systems Inc (NASDAQ:MPWR), a leading semiconductor-based power electronic solutions provider, released its financial results for the third quarter and nine months ended September 30, 2023, on October 30, 2023. Despite a YoY decrease, the company's Q3 revenue showed a 7.6% increase from the previous quarter.
Financial Performance
For the quarter ended September 30, 2023, MPWR reported a revenue of $474.9 million, a 7.6% increase from $441.1 million in Q2 2023, but a 4.1% decrease from $495.4 million in Q3 2022. The GAAP gross margin was 55.5%, compared to 58.7% for the same period last year. GAAP operating expenses were $128.0 million, compared to $139.0 million in Q3 2022. GAAP operating income was $135.6 million, compared to $151.9 million in Q3 2022.
Nine-Month Financial Results
For the nine months ended September 30, 2023, the company reported a revenue of $1,367.1 million, a 2.5% increase from $1,334.1 million for the same period in 2022. The GAAP gross margin was 56.3%, compared to 58.5% for the same period in 2022. GAAP operating expenses were $397.8 million, compared to $390.9 million in 2022. GAAP operating income was $372.2 million, compared to $389.9 million in 2022.
Revenue by End Market and Product Family
The company also provided a summary of revenue by end market and product family. The Storage and Computing end market generated the highest revenue of $129.4 million in Q3 2023, followed by Enterprise Data with $98.9 million, and Automotive with $95.1 million. In terms of product family, the DC to DC category generated the highest revenue of $447.4 million in Q3 2023.
CEO's Commentary
Michael Hsing, CEO and founder of MPS, commented on the company's performance, stating,
While we expect visibility to remain limited in the short term, which was the same as last quarter, we continue to execute on our long-term strategy."
Looking Ahead
The company also provided its financial targets for the fourth quarter ending December 31, 2023, in the report. However, these forward-looking statements are not guarantees of future performance or events and are based on current expectations, estimates, beliefs, assumptions, goals, and objectives.
About Monolithic Power Systems Inc (NASDAQ:MPWR)
Monolithic Power Systems, Inc. is a fabless company that provides high-performance, semiconductor-based power electronic solutions. Founded in 1997, the company has deep system-level knowledge, strong semiconductor expertise, and innovative proprietary technologies in the areas of semiconductor processes, system integration, and packaging.
Explore the complete 8-K earnings release (here) from Monolithic Power Systems Inc for further details.
This article first appeared on GuruFocus.
