Monolithic Power Systems, Inc. (MPWR) has reported robust financial results for the fourth quarter of 2023.
GAAP Net Profit Decline
The GAAP net profit decreased to $96.9 million, or $1.98 per share, from $119.1 million, or $2.45 per share, in the previous quarter. This decline was primarily attributed to increased operating expenses.
Adjusted Net Profit
Adjusted net profit stood at $140.9 million, or $2.88 per share, compared to $154 million, or $3.17 per share, in the same quarter of the previous year.
Annual Performance
In 2023, GAAP net profit amounted to $427.4 million, or $8.76 per share, compared to $437.7 million, or $9.05 per share, in 2022.
Quarterly Revenue
MPWR reported quarterly revenue of $454 million, slightly lower than $460 million in the previous year.
Segment Performance
Despite a decrease in revenue from industrial, communication, and consumer markets, MPWR witnessed steady growth trends in automation, corporate data, storage systems, and computing segments.
- Data Storage and Computing Segment: Revenue increased to $491.1 million in 2023 from $452.5 million in 2022, primarily driven by higher sales of corporate laptop products and data storage applications.
- Corporate Data Segment: Revenue surged by 28.5% to $323 million, fueled by increased sales of energy management solutions for AI applications.
- Automation Segment: Revenue grew by 31.5% to $394.7 million in 2023, mainly due to higher sales of integrated applications supporting advanced driver assistance systems, digital cockpits, and lighting applications.
- Communication Segment: Revenue declined by 18.5% to $204.9 million in 2023, attributed to lower sales of 4G and 5G infrastructure.
- Consumer Segment: Revenue dropped by 26.6% to $234.7 million in 2023.
Understanding P/E Ratio in Investing
The Price to Earnings ratio (P/E ratio) is a fundamental financial metric indicating how much investors are willing to pay for each dollar of…Read more
Financial Position
As of December 31, 2023, MPWR had cash and cash equivalents of $527.8 million and long-term obligations of $88.6 million, compared to $288.6 million and $73.4 million, respectively, as of December 31, 2022.
Outlook
MPWR remains cautious about short-term business conditions due to ongoing supply chain competition. For the first quarter of 2024, the company forecasts revenue in the range of $437 million to $457 million, with a gross profit margin estimated between 55.4% and 56.0%.
Unlock Investment Insights with ProfitsForce!
Stay updated on top US stocks like Monolithic Power Systems with ProfitsForce. Our platform offers detailed analysis, portfolio management tools, and invaluable market insights to empower your investment decisions. Explore our subscription plans here and seize your investment opportunities today!
