DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION - $ / shares | 9 Months Ended | |
Sep. 30, 2023 | Nov. 03, 2023 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 000-23441 | |
Entity Registrant Name | POWER INTEGRATIONS, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 94-3065014 | |
Entity Address, Address Line One | 5245 Hellyer Avenue | |
Entity Address, City or Town | San Jose | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 95138 | |
City Area Code | 408 | |
Local Phone Number | 414-9200 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | POWI | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Listing, Par Value Per Share | $ 0.001 | |
Entity Common Stock, Shares Outstanding | 56,857,583 | |
Entity Central Index Key | 0000833640 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 94,743 | $ 105,372 |
Short-term marketable securities | 261,896 | 248,441 |
Accounts receivable, net | 28,539 | 20,836 |
Inventories | 150,246 | 135,420 |
Prepaid expenses and other current assets | 20,692 | 15,004 |
Total current assets | 556,116 | 525,073 |
PROPERTY AND EQUIPMENT, net | 166,391 | 176,681 |
INTANGIBLE ASSETS, net | 4,967 | 6,597 |
GOODWILL | 91,849 | 91,849 |
DEFERRED TAX ASSETS | 28,943 | 19,034 |
OTHER ASSETS | 17,224 | 20,862 |
Total assets | 865,490 | 840,096 |
CURRENT LIABILITIES: | ||
Accounts payable | 28,553 | 30,088 |
Accrued payroll and related expenses | 13,778 | 14,778 |
Taxes payable | 774 | 938 |
Other accrued liabilities | 10,316 | 12,572 |
Total current liabilities | 53,421 | 58,376 |
LONG-TERM INCOME TAXES PAYABLE | 16,724 | 15,757 |
OTHER LIABILITIES | 10,288 | 10,747 |
Total liabilities | 80,433 | 84,880 |
COMMITMENTS AND CONTINGENCIES (Notes 11, 12 and 13) | ||
STOCKHOLDERS' EQUITY: | ||
Common stock | 23 | 24 |
Additional paid-in capital | 19,429 | 0 |
Accumulated other comprehensive loss | (5,730) | (7,344) |
Retained earnings | 771,335 | 762,536 |
Total stockholders' equity | 785,057 | 755,216 |
Total liabilities and stockholders' equity | $ 865,490 | $ 840,096 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) | ||||
NET REVENUES | $ 125,511 | $ 160,233 | $ 355,031 | $ 526,368 |
COST OF REVENUES | 59,566 | 68,198 | 172,283 | 226,815 |
GROSS PROFIT | 65,945 | 92,035 | 182,748 | 299,553 |
OPERATING EXPENSES: | ||||
Research and development | 24,064 | 23,205 | 72,562 | 70,390 |
Sales and marketing | 16,224 | 14,700 | 49,126 | 47,081 |
General and administrative | 7,945 | 5,759 | 24,950 | 21,432 |
Other operating expenses, net | 0 | 0 | 0 | 1,130 |
Total operating expenses | 48,233 | 43,664 | 146,638 | 140,033 |
INCOME FROM OPERATIONS | 17,712 | 48,371 | 36,110 | 159,520 |
OTHER INCOME | 3,138 | 1,001 | 7,566 | 2,229 |
INCOME BEFORE INCOME TAXES | 20,850 | 49,372 | 43,676 | 161,749 |
PROVISION FOR INCOME TAXES | 1,054 | 3,408 | 2,212 | 13,713 |
NET INCOME | $ 19,796 | $ 45,964 | $ 41,464 | $ 148,036 |
EARNINGS PER SHARE: | ||||
Basic (in dollars per share) | $ 0.34 | $ 0.80 | $ 0.72 | $ 2.55 |
Diluted (in dollars per share) | $ 0.34 | $ 0.80 | $ 0.72 | $ 2.52 |
SHARES USED IN PER SHARE CALCULATION: | ||||
Basic (in shares) | 57,383 | 57,172 | 57,282 | 58,039 |
Diluted (in shares) | 57,741 | 57,603 | 57,711 | 58,635 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) | ||||
Net income | $ 19,796 | $ 45,964 | $ 41,464 | $ 148,036 |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation adjustments, net of $0 tax in each of the three and nine months ended September 30, 2023 and 2022 | (407) | (1,044) | (807) | (2,067) |
Unrealized gain (loss) on marketable securities, net of $0 tax in each of the three and nine months ended September 30, 2023 and 2022 | 455 | (731) | 2,483 | (6,072) |
Amortization of defined benefit pension items, net of tax of ($4) and ($11) in the three and nine months ended September 30, 2023, respectively, and $3 and $6 in the three and nine months ended September 30, 2022, respectively | (21) | 18 | (62) | 59 |
Total other comprehensive income (loss) | 27 | (1,757) | 1,614 | (8,080) |
TOTAL COMPREHENSIVE INCOME | $ 19,823 | $ 44,207 | $ 43,078 | $ 139,956 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) | ||||
Foreign currency translation adjustments, tax | $ 0 | $ 0 | $ 0 | $ 0 |
Unrealized gain (loss) on marketable securities, tax | 0 | 0 | 0 | 0 |
Amortization of defined benefit pension items, tax | $ (4) | $ 3 | $ (11) | $ 6 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Retained Earnings | Total |
Beginning balance at Dec. 31, 2021 | $ 28 | $ 162,301 | $ (3,737) | $ 753,440 | |
Net income | 148,036 | $ 148,036 | |||
Common stock issued under employee stock plans | 6,162 | ||||
Repurchase of common stock | (4) | (178,050) | (114,295) | ||
Stock-based compensation | 15,710 | ||||
Other comprehensive income (loss) | (8,080) | (8,080) | |||
Payment of dividends to stockholders | (31,229) | ||||
Ending balance at Sep. 30, 2022 | 24 | 6,123 | (11,817) | 755,952 | 750,282 |
Beginning balance at Jun. 30, 2022 | 24 | 0 | (10,060) | 720,281 | |
Net income | 45,964 | 45,964 | |||
Common stock issued under employee stock plans | 3,105 | ||||
Repurchase of common stock | 0 | 0 | 0 | ||
Stock-based compensation | 3,018 | ||||
Other comprehensive income (loss) | (1,757) | (1,757) | |||
Payment of dividends to stockholders | (10,293) | ||||
Ending balance at Sep. 30, 2022 | 24 | 6,123 | (11,817) | 755,952 | 750,282 |
Beginning balance at Dec. 31, 2022 | 24 | 0 | (7,344) | 762,536 | 755,216 |
Net income | 41,464 | 41,464 | |||
Common stock issued under employee stock plans | 6,237 | ||||
Repurchase of common stock | (1) | (7,833) | 0 | (7,800) | |
Stock-based compensation | 21,025 | ||||
Other comprehensive income (loss) | 1,614 | 1,614 | |||
Payment of dividends to stockholders | (32,665) | ||||
Ending balance at Sep. 30, 2023 | 23 | 19,429 | (5,730) | 771,335 | 785,057 |
Beginning balance at Jun. 30, 2023 | 23 | 11,220 | (5,757) | 762,443 | |
Net income | 19,796 | 19,796 | |||
Common stock issued under employee stock plans | 3,139 | ||||
Repurchase of common stock | 0 | (1,835) | 0 | (1,800) | |
Stock-based compensation | 6,905 | ||||
Other comprehensive income (loss) | 27 | 27 | |||
Payment of dividends to stockholders | (10,904) | ||||
Ending balance at Sep. 30, 2023 | $ 23 | $ 19,429 | $ (5,730) | $ 771,335 | $ 785,057 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 41,464 | $ 148,036 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 26,316 | 26,055 |
Amortization of intangibles | 1,630 | 1,871 |
Loss on disposal of property and equipment | 86 | 1,162 |
Stock-based compensation expense | 21,025 | 15,710 |
Amortization of premium on marketable securities | 146 | 2,638 |
Deferred income taxes | (9,952) | (7,390) |
Increase (decrease) in accounts receivable allowance for credit losses | (454) | 690 |
Change in operating assets and liabilities: | ||
Accounts receivable | (7,249) | 24,628 |
Inventories | (14,826) | (20,826) |
Prepaid expenses and other assets | (837) | 8,428 |
Accounts payable | (2,882) | (5,874) |
Taxes payable and accrued liabilities | (4,975) | (3,883) |
Net cash provided by operating activities | 49,492 | 191,245 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property and equipment | (14,741) | (33,444) |
Proceeds from sale of property and equipment | 0 | 1,202 |
Purchases of marketable securities | (173,015) | (27,244) |
Proceeds from sales and maturities of marketable securities | 161,897 | 161,014 |
Net cash provided by (used in) investing activities | (25,859) | 101,528 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Issuance of common stock under employee stock plans | 6,237 | 6,162 |
Repurchase of common stock | (7,834) | (292,349) |
Payments of dividends to stockholders | (32,665) | (31,229) |
Net cash used in financing activities | (34,262) | (317,416) |
NET DECREASE IN CASH AND CASH EQUIVALENTS | (10,629) | (24,643) |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 105,372 | 158,117 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 94,743 | 133,474 |
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES: | ||
Unpaid property and equipment | 2,429 | 2,555 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||
Cash paid for income taxes, net | $ 13,683 | $ 17,834 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Sep. 30, 2023 | |
BASIS OF PRESENTATION | |
BASIS OF PRESENTATION | 1. BASIS OF PRESENTATION: The condensed consolidated financial statements include the accounts of Power Integrations, Inc., a Delaware corporation (the “Company”), and its wholly owned subsidiaries. Significant intercompany accounts and transactions have been eliminated in consolidation. While the financial information furnished is unaudited, the condensed consolidated financial statements included in this report reflect all adjustments (consisting only of normal recurring adjustments) that the Company considers necessary for the fair presentation of the results of operations for the interim periods covered and the financial condition of the Company at the date of the interim balance sheet in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The results for interim periods are not necessarily indicative of the results for the entire year. The condensed consolidated financial statements should be read in conjunction with the Company’s consolidated financial statements and the notes thereto for the year ended December 31, 2022, included in its Form 10-K filed on February 7, 2023, with the Securities and Exchange Commission. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES AND RECENT ACCOUNTING PRONOUNCEMENTS | 9 Months Ended |
Sep. 30, 2023 | |
SIGNIFICANT ACCOUNTING POLICIES AND RECENT ACCOUNTING PRONOUNCEMENTS | |
SIGNIFICANT ACCOUNTING POLICIES AND RECENT ACCOUNTING PRONOUNCEMENTS | 2. SIGNIFICANT ACCOUNTING POLICIES AND RECENT ACCOUNTING PRONOUNCEMENTS: Significant Accounting Policies and Estimates No material changes have been made to the Company’s significant accounting policies disclosed in Note 2, Significant Accounting Policies and Recent Accounting Pronouncements Recent Accounting Pronouncements The Company has considered all recent accounting pronouncements issued, but not yet effective, and does not expect any to have a material effect on the Company’s condensed consolidated financial statements. |
COMPONENTS OF THE COMPANY'S CON
COMPONENTS OF THE COMPANY'S CONDENSED CONSOLIDATED BALANCE SHEETS | 9 Months Ended |
Sep. 30, 2023 | |
COMPONENTS OF THE COMPANY'S CONDENSED CONSOLIDATED BALANCE SHEETS | |
COMPONENTS OF THE COMPANY'S CONDENSED CONSOLIDATED BALANCE SHEETS | 3. COMPONENTS OF THE COMPANY’S CONDENSED CONSOLIDATED BALANCE SHEETS: Accounts Receivable September 30, December 31, (In thousands) 2023 2022 Accounts receivable trade $ 76,507 $ 78,914 Allowance for ship and debit (44,089) (53,184) Allowance for stock rotation and rebate (3,198) (3,759) Allowance for credit losses (681) (1,135) Total $ 28,539 $ 20,836 The Company maintains an allowance for estimated credit losses resulting from the inability of customers to make required payments. This allowance is established using estimates formulated by the Company’s management based upon factors such as the composition of the accounts receivable aging, historical losses, changes in payment patterns, customer creditworthiness and current economic trends. Receivables determined to be uncollectible are written off and deducted from the allowance. Allowance for Credit Losses Three Months Ended Nine Months Ended September 30, September 30, (In thousands) 2023 2022 2023 2022 Beginning balance $ (681) $ (704) $ (1,135) $ (445) Provision for credit loss expense (671) (967) (1,498) (1,585) Receivables written off — 49 — 49 Recoveries collected 671 487 1,952 846 Ending balance $ (681) $ (1,135) $ (681) $ (1,135) Inventories September 30, December 31, (In thousands) 2023 2022 Raw materials $ 87,904 $ 75,355 Work-in-process 25,187 15,440 Finished goods 37,155 44,625 Total $ 150,246 $ 135,420 Intangible Assets September 30, 2023 December 31, 2022 Accumulated Accumulated (In thousands) Gross Amortization Net Gross Amortization Net Domain name $ 1,261 $ — $ 1,261 $ 1,261 $ — $ 1,261 Developed technology 37,960 (34,977) 2,983 37,960 (33,531) 4,429 Technology licenses 1,926 (1,203) 723 1,926 (1,019) 907 Total intangible assets $ 41,147 $ (36,180) $ 4,967 $ 41,147 $ (34,550) $ 6,597 The estimated future amortization expense related to finite-lived intangible assets at September 30, 2023, is as follows: Estimated Amortization Fiscal Year (In thousands) 2023 (remaining three months) $ 543 2024 1,279 2025 832 2026 687 2027 365 Total $ 3,706 Accumulated Other Comprehensive Loss Changes in accumulated other comprehensive loss for the three and nine months ended September 30, 2023 and 2022, were as follows: Unrealized Gains and Losses on Defined Benefit Foreign Currency Marketable Securities Pension Items Items Total Three Months Ended Three Months Ended Three Months Ended Three Months Ended September 30, September 30, September 30, September 30, (In thousands) 2023 2022 2023 2022 2023 2022 2023 2022 Beginning balance $ (3,295) $ (6,506) $ 821 $ (633) $ (3,283) $ (2,921) $ (5,757) $ (10,060) Other comprehensive income (loss) before reclassifications 455 (731) — — (407) (1,044) 48 (1,775) Amounts reclassified from accumulated other comprehensive loss — — (21) (1) 18 (1) — — (21) 18 Net-current period other comprehensive income (loss) 455 (731) (21) 18 (407) (1,044) 27 (1,757) Ending balance $ (2,840) $ (7,237) $ 800 $ (615) $ (3,690) $ (3,965) $ (5,730) $ (11,817) (1) This component of accumulated other comprehensive income (loss) is included in the computation of net periodic pension cost for the three months ended September 30, 2023 and 2022. Unrealized Gains and Losses on Defined Benefit Foreign Currency Marketable Securities Pension Items Items Total Nine Months Ended Nine Months Ended Nine Months Ended Nine Months Ended September 30, September 30, September 30, September 30, (In thousands) 2023 2022 2023 2022 2023 2022 2023 2022 Beginning balance $ (5,323) $ (1,165) $ 862 $ (674) $ (2,883) $ (1,898) $ (7,344) $ (3,737) Other comprehensive income (loss) before reclassifications 2,483 (6,072) — — (807) (2,067) 1,676 (8,139) Amounts reclassified from accumulated other comprehensive loss — — (62) (1) 59 (1) — — (62) 59 Net-current period other comprehensive income (loss) 2,483 (6,072) (62) 59 (807) (2,067) 1,614 (8,080) Ending balance $ (2,840) $ (7,237) $ 800 $ (615) $ (3,690) $ (3,965) $ (5,730) $ (11,817) (1) This component of accumulated other comprehensive income (loss) is included in the computation of net periodic pension cost for the nine months ended September 30, 2023 and 2022. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended |
Sep. 30, 2023 | |
FAIR VALUE MEASUREMENTS | |
FAIR VALUE MEASUREMENTS | 4. FAIR VALUE MEASUREMENTS: The FASB established a three-tier value hierarchy, which prioritizes the inputs used in measuring fair value as follows: (Level 1) observable inputs such as quoted prices for identical assets in active markets; (Level 2) inputs other than the quoted prices in active markets that are observable either directly or indirectly; and (Level 3) unobservable inputs in which there is little or no market data, which requires the Company to develop its own assumptions. This hierarchy requires the Company to use observable market data, when available, and to minimize the use of unobservable inputs when determining fair value. The Company’s cash equivalents and short-term marketable securities are classified within Level 1 or Level 2 of the fair-value hierarchy because they are valued using quoted market prices, broker or dealer quotations, or alternative pricing sources with reasonable levels of price transparency. The fair-value hierarchy of the Company’s cash equivalents and marketable securities at September 30, 2023 and December 31, 2022, was as follows: Fair Value Measurement at September 30, 2023 Quoted Prices in Active Markets for Significant Other Identical Assets Observable Inputs (In thousands) Total Fair Value (Level 1) (Level 2) Commercial paper $ 39,539 $ — $ 39,539 Corporate securities 261,896 — 261,896 Money market funds 781 781 — Total $ 302,216 $ 781 $ 301,435 Fair Value Measurement at December 31, 2022 Quoted Prices in Active Markets for Significant Other Identical Assets Observable Inputs (In thousands) Total Fair Value (Level 1) (Level 2) Commercial paper $ 58,683 $ — $ 58,683 Corporate securities 248,441 — 248,441 Money market funds 363 363 — Total $ 307,487 $ 363 $ 307,124 The Company did not transfer any investments between Level 1 and Level 2 of the fair-value hierarchy in the nine months ended September 30, 2023 and the twelve months ended December 31, 2022. |
MARKETABLE SECURITIES
MARKETABLE SECURITIES | 9 Months Ended |
Sep. 30, 2023 | |
MARKETABLE SECURITIES | |
MARKETABLE SECURITIES | 5. MARKETABLE SECURITIES: Amortized cost and estimated fair market value of marketable securities classified as available-for-sale (excluding cash equivalents) at September 30, 2023, were as follows: Amortized Gross Unrealized Estimated Fair (In thousands) Cost Gains Losses Market Value Investments due in 3 months or less: Corporate securities $ 36,088 $ — $ (207) $ 35,881 Total 36,088 — (207) 35,881 Investments due in 4-12 months: Corporate securities 39,377 4 (664) 38,717 Total 39,377 4 (664) 38,717 Investments due in 12 months or greater: Corporate securities 189,271 18 (1,991) 187,298 Total 189,271 18 (1,991) 187,298 Total marketable securities $ 264,736 $ 22 $ (2,862) $ 261,896 Accrued interest receivable was $2.7 million at September 30, 2023 and was recorded within prepaid expenses and other current assets on the condensed consolidated balance sheet. Amortized cost and estimated fair market value of marketable securities classified as available-for-sale (excluding cash equivalents) at December 31, 2022, were as follows: Amortized Gross Unrealized Estimated Fair (In thousands) Cost Gains Losses Market Value Investments due in 3 months or less: Corporate securities $ 21,803 $ — $ (135) $ 21,668 Total 21,803 — (135) 21,668 Investments due in 4-12 months: Corporate securities 173,833 — (4,019) 169,814 Total 173,833 — (4,019) 169,814 Investments due in 12 months or greater: Corporate securities 58,128 71 (1,240) 56,959 Total 58,128 71 (1,240) 56,959 Total marketable securities $ 253,764 $ 71 $ (5,394) $ 248,441 Accrued interest receivable was $1.2 million at December 31, 2022 and was recorded within prepaid expenses and other current assets on the condensed consolidated balance sheet. The following table summarizes marketable securities classified as available-for-sale (excluding cash equivalents) in a continuous unrealized loss position for which an allowance for credit losses was not recorded at September 30, 2023: Less Than 12 Months 12 Months or Longer Total Estimated Gross Estimated Gross Estimated Gross Fair Market Unrealized Fair Market Unrealized Fair Market Unrealized (In thousands) Value Losses Value Losses Value Losses Corporate securities $ 200,713 $ (2,001) $ 55,695 $ (861) $ 256,408 $ (2,862) Total marketable securities $ 200,713 $ (2,001) $ 55,695 $ (861) $ 256,408 $ (2,862) In the three and nine months ended September 30, 2023 and 2022, no unrealized losses on marketable securities were recognized in income. The Company does not intend to sell and it is unlikely that it will be required to sell the securities prior to their anticipated recovery. The issuers are high quality (investment grade) and the decline in fair value is largely due to changes in interest rates. Additionally, the issuers continue to make timely interest payments on the marketable securities with the fair value expected to recover as they reach maturity. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 9 Months Ended |
Sep. 30, 2023 | |
STOCK-BASED COMPENSATION | |
STOCK-BASED COMPENSATION | 6. STOCK-BASED COMPENSATION: The following table summarizes the stock-based compensation expense recognized in accordance with ASC 718-10 for the three and nine months ended September 30, 2023 and 2022: Three Months Ended Nine Months Ended September 30, September 30, (In thousands) 2023 2022 2023 2022 Cost of revenues $ 446 $ 172 $ 1,193 $ 727 Research and development 2,895 2,334 7,992 7,712 Sales and marketing 1,787 1,267 5,061 4,392 General and administrative 1,777 (755) 6,779 2,879 Total stock-based compensation expense $ 6,905 $ 3,018 $ 21,025 $ 15,710 Stock-based compensation expense in the three months ended September 30, 2023, was approximately $6.9 million, comprising approximately $6.1 million related to restricted stock unit (“RSU”) awards, $0.5 million related to the Company’s employee stock purchase plan and $0.3 million related to performance-based (“PSU”) awards and long-term performance-based (“PRSU”) awards. Stock-based compensation expense in the nine months ended September 30, 2023, was approximately $21.0 million, comprising approximately $17.3 million related to RSUs, $1.4 million related to the Company’s employee stock purchase plan and $2.3 million related to PSUs and PRSUs. Stock-based compensation expense in the three months ended September 30, 2022, was approximately $3.0 million, comprising approximately $6.4 million related to RSUs, $0.5 million related to the Company’s employee stock purchase plan and $3.9 million credit related to PSUs and PRSUs. Stock-based compensation expense in the nine months ended September 30, 2022, was approximately $15.7 million, comprising approximately $17.3 million related to RSUs, $1.3 million related to the Company’s employee stock purchase plan and $2.9 million credit related to PSUs and PRSUs. PSU Awards Under the performance-based awards program, the Company grants awards in the performance year in an amount equal to twice the target number of shares to be issued if the maximum performance metrics are met. The number of shares that are released at the end of the performance year can range from zero to 200% of the target number depending on the Company’s performance. The performance metrics of this program are annual targets consisting of a combination of net revenue, non-GAAP operating income and strategic goals. As the net revenue, non-GAAP operating income and strategic goals are considered performance conditions, expense associated with these awards, net of estimated forfeitures, is recognized over the service period based on an assessment of the expected achievement of the performance targets. The fair value of these PSUs is determined using the fair value of the Company’s common stock on the date of the grant, reduced by the discounted present value of dividends expected to be declared before the awards vest. If the performance conditions are not achieved, no compensation cost is recognized and any previously recognized compensation is reversed. In February 2023, it was determined that approximately 34,000 shares subject to the PSUs granted in 2022 vested in aggregate; the shares were released to the Company’s employees and executives in the first quarter of 2023. A summary of PSUs outstanding as of September 30, 2023 and activity during the nine months ended, is presented below: Weighted-Average Weighted-Average Remaining Aggregate Shares Grant Date Fair Contractual Term Intrinsic Value (In thousands) Value Per Share (In years) (In thousands) Outstanding at January 1, 2023 34 $ 79.94 Granted 130 $ 82.96 Vested (34) $ 79.94 Forfeited — — Outstanding at September 30, 2023 130 $ 82.96 0.25 $ 9,964 Outstanding and expected to vest at September 30, 2023 39 0.25 $ 2,989 PRSU Awards The Company’s PRSU program provides for the issuance of PRSUs which will vest based on the Company’s performance measured against the PRSU program’s established performance targets. PRSUs are granted in an amount equal to twice the target number of shares to be issued if the maximum performance metrics are met. The actual number of shares the recipient receives is determined at the end of a three-year performance period based on results achieved versus the Company’s performance goals, and may range from zero to 200% of the target number. The performance goals for PRSUs granted in fiscal 2021, 2022 and 2023 were based on the Company’s compound annual growth rate (“CAGR”) of revenue as measured against the revenue CAGR of the analog semiconductor industry (“Relative Measure”), in each case over the respective three-year performance period. In addition, the PRSUs granted in 2023 (“2023 PRSUs”) also include a performance goal related to the Company’s revenue growth over the respective three-year performance period as compared to defined targets (“Absolute Measure”) with the actual vesting of the 2023 PRSUs calculated based on higher achievement under the Relative Measure or the Absolute Measure. In February 2023, it was determined that approximately 23,000 shares subject to the PRSUs granted in 2020 vested in aggregate; the shares were released to the Company’s executives in the first quarter of 2023. A summary of PRSUs outstanding as of September 30, 2023 and activity during the nine months ended, is presented below: Weighted-Average Aggregate Weighted-Average Remaining Intrinsic Shares Grant Date Fair Contractual Term Value (In thousands) Value Per Share (In years) (In thousands) Outstanding at January 1, 2023 236 $ 77.82 Granted 145 $ 80.92 Vested (23) $ 49.68 Forfeited — — Outstanding at September 30, 2023 358 $ 80.89 1.37 $ 27,344 Outstanding and expected to vest at September 30, 2023 6 2.25 $ 445 RSU Awards A summary of RSUs outstanding as of September 30, 2023 and activity during the nine months ended, is presented below: Weighted-Average Aggregate Weighted-Average Remaining Intrinsic Shares Grant Date Fair Contractual Term Value (In thousands) Value Per Share (In years) (In thousands) Outstanding at January 1, 2023 1,096 $ 60.52 Granted 333 $ 81.06 Vested (386) $ 51.49 Forfeited (22) $ 71.71 Outstanding at September 30, 2023 1,021 $ 70.39 1.68 $ 77,875 Outstanding and expected to vest at September 30, 2023 946 1.59 $ 72,163 |
SIGNIFICANT CUSTOMERS AND GEOGR
SIGNIFICANT CUSTOMERS AND GEOGRAPHIC NET REVENUES | 9 Months Ended |
Sep. 30, 2023 | |
SIGNIFICANT CUSTOMERS AND GEOGRAPHIC NET REVENUES | |
SIGNIFICANT CUSTOMERS AND GEOGRAPHIC NET REVENUES | 7. SIGNIFICANT CUSTOMERS AND GEOGRAPHIC NET REVENUES: Segment Reporting The Company is organized and operates as one reportable segment, the design, development, manufacture and marketing of integrated circuits and related components for use primarily in the high-voltage power-conversion market. The Company’s chief operating decision maker, the Chief Executive Officer, reviews financial information presented on a consolidated basis for purposes of making operating decisions and assessing financial performance. Customer Concentration The Company’s top ten customers accounted for approximately 83% and 81% of net revenues for the three and nine months ended September 30, 2023, respectively, and 72% and 75%, respectively, in the corresponding periods of 2022. A significant portion of these revenues are attributable to sales of the Company’s products to distributors of electronic components. These distributors sell the Company’s products to a broad, diverse range of end users, including original equipment manufacturers (“OEMs”) and merchant power-supply manufacturers. Similarly, merchant power-supply manufacturers sell power supplies incorporating the Company’s products to a broad range of OEMs. Sales to distributors were $93.2 million and $238.7 million in the three and nine months ended September 30, 2023, respectively, and $103.6 million and $373.3 million, respectively, in the corresponding periods of 2022. Direct sales to OEMs and power-supply manufacturers accounted for the remainder. The following customers represented 10% or more of the Company’s net revenues for the respective periods: Three Months Ended Nine Months Ended September 30, September 30, Customer 2023 2022 2023 2022 Avnet 28 % 28 % 26 % 30 % Honestar Technologies Co., Ltd. 23 % * 17 % 12 % Salcomp Group * 12 % 11 % * * Total customer revenue was less than 10% of net revenues. No other customers accounted for 10% or more of the Company’s net revenues in the periods presented. Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash investments and trade receivables. The Company does not have any off-balance-sheet credit exposure related to its customers. As of September 30, 2023, and December 31, 2022, 89% and 87% of accounts receivable were concentrated with the Company’s top ten customers. The following customers represented 10% or more of accounts receivable at September 30, 2023 and December 31, 2022: September 30, December 31, Customer 2023 2022 Avnet 41 % 42 % Honestar Technologies Co., Ltd. 12 % * Salcomp Group 10 % 13 % Flextronics Group * 11 % * Total customer accounts receivable was less than 10% of accounts receivable. No other customers accounted for 10% or more of the Company’s accounts receivable in the periods presented. Geographic Net Revenues The Company markets its products globally through its sales personnel and a worldwide network of independent sales representatives and distributors. Geographic net revenues, based on “bill to” customer locations, for the three and nine months ended September 30, 2023 and 2022, were as follows: Three Months Ended Nine Months Ended September 30, September 30, (In thousands) 2023 2022 2023 2022 United States of America $ 2,208 $ 8,387 $ 6,903 $ 22,862 Hong Kong/China 79,735 80,508 215,829 282,508 India 9,697 9,660 27,738 22,765 Taiwan 4,949 4,895 11,453 16,000 Korea 4,308 10,071 17,425 47,298 Western Europe (excluding Germany) 8,498 10,790 20,912 27,164 Japan 4,311 9,777 13,390 27,986 Germany 5,741 16,601 19,290 42,545 Other 6,064 9,544 22,091 37,240 Total net revenues $ 125,511 $ 160,233 $ 355,031 $ 526,368 |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 9 Months Ended |
Sep. 30, 2023 | |
STOCKHOLDERS' EQUITY | |
STOCKHOLDERS' EQUITY | 8. STOCKHOLDERS’ EQUITY: Common Stock Shares Outstanding Three Months Ended Nine Months Ended September 30, September 30, (In thousands) 2023 2022 2023 2022 Beginning balance 57,351 57,134 56,961 59,913 Common stock issued under employee stock plans 59 61 529 785 Repurchased (24) — (104) (3,503) Ending balance 57,386 57,195 57,386 57,195 Common Stock Repurchases As of December 31, 2022, the Company had $81.3 million remaining under its authorized stock-repurchase program. In Cash Dividends In January 2022, the Company’s board of directors declared dividends of $0.18 per share to be paid to stockholders of record at the end of each quarter in 2022. In February 2023, In October 2023, the Company’s board of directors raised the quarterly cash dividend again with the declaration of five cash dividends of $0.20 per share to be paid to stockholders of record at the end of the fourth quarter in 2023 (in lieu of the $0.19 per share announced in February 2023) and at the end of each quarter in 2024 . For the three and nine months ended September 30, 2023 and 2022, cash dividends declared and paid were as follows: Three Months Ended Nine Months Ended September 30, September 30, (In thousands, except per share amounts) 2023 2022 2023 2022 Dividends declared and paid $ 10,904 $ 10,293 $ 32,665 $ 31,229 Dividends declared per common share $ 0.19 $ 0.18 $ 0.57 $ 0.54 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Sep. 30, 2023 | |
EARNINGS PER SHARE | |
EARNINGS PER SHARE | 9. EARNINGS PER SHARE: Basic earnings per share are calculated by dividing net income by the weighted-average shares of common stock outstanding during the period. Diluted earnings per share are calculated by dividing net income by the weighted-average shares of common stock and dilutive common equivalent shares outstanding during the period. Dilutive common equivalent shares included in this calculation consist of dilutive shares issuable upon the assumed exercise of outstanding common stock options, the assumed vesting of outstanding restricted stock units, the assumed issuance of awards under the stock purchase plan and contingently issuable performance-based awards, as computed using the treasury stock method. A summary of the earnings per share calculation is as follows: Three Months Ended Nine Months Ended September 30, September 30, (In thousands, except per share amounts) 2023 2022 2023 2022 Basic earnings per share: Net income $ 19,796 $ 45,964 $ 41,464 $ 148,036 Weighted-average common shares 57,383 57,172 57,282 58,039 Basic earnings per share $ 0.34 $ 0.80 $ 0.72 $ 2.55 Diluted earnings per share: (1) Net income $ 19,796 $ 45,964 $ 41,464 $ 148,036 Weighted-average common shares 57,383 57,172 57,282 58,039 Effect of dilutive awards: Employee stock plans 358 431 429 596 Diluted weighted-average common shares 57,741 57,603 57,711 58,635 Diluted earnings per share $ 0.34 $ 0.80 $ 0.72 $ 2.52 (1) The Company includes the shares underlying performance-based awards in the calculation of diluted earnings per share if the performance conditions have been satisfied as of the end of the reporting period and excludes such shares when the necessary conditions have not been met. The Company has excluded the shares underlying the outstanding performance-based awards in the 2023 and 2022 calculations as the shares were not contingently issuable as of the end of the reporting periods. In the three and nine months ended September 30, 2023 and 2022, no outstanding stock awards were determined to be anti-dilutive and therefore excluded from the computation of diluted earnings per share. |
PROVISION FOR INCOME TAXES
PROVISION FOR INCOME TAXES | 9 Months Ended |
Sep. 30, 2023 | |
PROVISION FOR INCOME TAXES | |
PROVISION FOR INCOME TAXES | 10. PROVISION FOR INCOME TAXES: Income-tax expense includes a provision for federal, state and foreign taxes based on the annual estimated effective tax rate applicable to the Company and its subsidiaries, adjusted for certain discrete items which are fully recognized in the period they occur. Accordingly, the interim effective tax rate may not be reflective of the annual estimated effective tax rate. The Company’s effective tax rate for both the three and nine months ended September 30, 2023 was 5.1%, as compared to 6.9% and 8.5%, respectively, in the corresponding periods of 2022. The effective tax rate in these periods were lower than the statutory federal income-tax rate of 21% due to the geographic distribution of the Company’s world-wide earnings in lower-tax jurisdictions and federal research tax credits. Additionally, in the three months ended September 30, 2023, our effective tax rate was favorably impacted by the recognition of excess tax benefits related to share-based payments. In the nine months ended September 30, 2023, our effective tax rate was favorably impacted by discrete items associated with the release of unrecognized tax benefits and recognition of excess tax benefits related to share-based payments. These benefits were partially offset by foreign income subject to U.S. tax, known as global intangible low-taxed income. The Company’s primary jurisdiction where foreign earnings are derived is the Cayman Islands, which is a non-taxing jurisdiction. Income earned in other foreign jurisdictions was not material. The Company has not been granted any incentivized tax rates and does not operate under any tax holidays in any jurisdiction. As of September 30, 2023, the Company maintained a valuation allowance on its California deferred tax assets, New Jersey deferred tax assets and a valuation allowance with respect to its deferred tax assets relating to tax credits in Canada. Determining the consolidated provision for income-tax expense, income-tax liabilities and deferred tax assets and liabilities involves judgment. The Company calculates and provides for income taxes in each of the tax jurisdictions in which it operates, which involves estimating current tax exposures as well as making judgments regarding the recoverability of deferred tax assets in each jurisdiction. The estimates used could differ from actual results, which may have a significant impact on operating results in future periods. |
COMMITMENTS
COMMITMENTS | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS | 11. COMMITMENTS: Supplier Agreements Under the terms of the Company’s wafer-supply agreements with Seiko Epson Corporation ("Epson") and ROHM Lapis Semiconductor Co., Ltd. ("Lapis"), the wafers purchased from these suppliers are priced in U.S. dollars, with mutual sharing of the impact of fluctuations in the exchange rate between the Japanese yen and the U.S. dollar on future purchases. Each year, the Company’s management and these two suppliers review and negotiate future pricing; the negotiated pricing is denominated in U.S. dollars but is subject to contractual exchange-rate provisions. The fluctuation in the exchange rate is shared equally between the Company and each of these suppliers on future purchases. |
LEGAL PROCEEDINGS AND CONTINGEN
LEGAL PROCEEDINGS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
LEGAL PROCEEDINGS AND CONTINGENCIES | 12. LEGAL PROCEEDINGS AND CONTINGENCIES: From time to time in the ordinary course of business, the Company becomes involved in lawsuits, or customers and distributors may make claims against the Company. In accordance with ASC 450-10, Contingencies On January 6, 2020, the Company filed a complaint against CogniPower LLC in the United States District Court for the District of Delaware for infringement of two of the Company’s patents and seeking a declaration of non-infringement with respect to patents that CogniPower had charged the Company’s customers with infringing, based on customer use of the Company’s products. In response, CogniPower filed a motion to dismiss the Company’s declaratory judgment claims on the basis that CogniPower had not threatened the Company directly with suit. That motion was granted, so CogniPower’s claims for infringement initially went forward separately in their lawsuit against the Company’s customers in the District of Delaware, but the Company filed a motion to intervene in that lawsuit and received a ruling allowing the Company to intervene in CogniPower’s customer lawsuit on February 1, 2021, and the parties thereafter agreed to dismiss the Company’s separate lawsuit against CogniPower. The remaining case is currently stayed, but the Company recently filed a motion to amend its claims against CogniPower to include three additional patents that are in the same family as the two CogniPower patents that are already in the lawsuit, after CogniPower accused the Company’s customers of infringing those three related patents in a lawsuit in the Eastern District of Texas. A ruling on the Company’s motion is expected in the coming months, and the Company believes it has strong claims and defenses with respect to all of CogniPower’s asserted patents, and intends to vigorously defend itself against CogniPower’s claims against the Company’s technology, with appeals to follow if necessary. On October 31, 2022, Waverly Licensing LLC filed a complaint against the Company in the United States District Court for the Western District of Texas. In its complaint, Waverly alleged that the Company was infringing one patent pertaining to charging a battery-operated device. The Company believes it has strong claims and defenses, and intends to vigorously defend itself against Waverly’s claims, with appeals to follow if necessary. Because the Company believed that Waverly’s Texas complaint was improperly filed in the wrong court, the Company filed a motion to dismiss, and on November 30, 2022, the Company filed a complaint against Waverly Licensing LLC and related entities IP Edge LLC, Mavexar LLC, and Array IP LLC in the United States District Court for the District of Delaware seeking a declaration of non-infringement with respect to a patent that Waverly charged the Company with infringing. The Texas court thereafter dismissed Waverly’s Texas complaint. The Company’s Delaware lawsuit is in its earliest stages, but on April 6, 2023, the Delaware defendants filed a motion to dismiss based on a series of covenants not to sue that the Delaware defendants filed with the Court, with further proceedings on the Delaware defendants’ motion expected in the coming months. The Company is unable to predict the outcome of legal proceedings with certainty, and there can be no assurance that the Company will prevail in the above-mentioned unsettled litigations. These litigations, whether or not determined in the Company’s favor or settled, will be costly and will divert the efforts and attention of the Company’s management and technical personnel from normal business operations, potentially causing a material adverse effect on the business, financial condition and operating results. Currently, the Company is not able to estimate a loss or a range of loss for the ongoing litigations disclosed above, however adverse determinations in litigation could result in monetary losses, the loss of proprietary rights, subject the Company to significant liabilities, require the Company to seek licenses from third parties or prevent the Company from licensing the technology, any of which could have a material adverse effect on the Company’s business, financial condition and operating results. |
INDEMNIFICATIONS
INDEMNIFICATIONS | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
INDEMNIFICATIONS | 13. INDEMNIFICATIONS: The Company sells products to its distributors under contracts, collectively referred to as Distributor Sales Agreements (“DSA”). Each DSA contains the relevant terms of the contractual arrangement with the distributor, and generally includes certain provisions for indemnifying the distributor against losses, expenses, and liabilities from damages that may be awarded against the distributor in the event the Company’s products are found to infringe upon a patent, copyright, trademark, or other proprietary right of a third party (“Customer Indemnification”). The DSA generally limits the scope of and remedies for the Customer Indemnification obligations in a variety of industry-standard respects, including, but not limited to, limitations based on time and geography, and a right to replace an infringing product. The Company also, from time to time, has granted a specific indemnification right to individual customers. The Company believes its internal development processes and other policies and practices limit its exposure related to such indemnifications. In addition, the Company requires its employees to sign a proprietary information and inventions agreement, which assigns the rights to its employees’ development work to the Company. To date, the Company has not had to reimburse any of its distributors or customers for any losses related to these indemnifications and no material claims were outstanding as of September 30, 2023. For several reasons, including the lack of prior indemnification claims and the lack of a monetary liability limit for certain infringement cases, the Company cannot determine the maximum amount of potential future payments, if any, related to such indemnifications. |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES AND RECENT ACCOUNTING PRONOUNCEMENTS (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
SIGNIFICANT ACCOUNTING POLICIES AND RECENT ACCOUNTING PRONOUNCEMENTS | |
Significant Accounting Policies and Estimates | Significant Accounting Policies and Estimates No material changes have been made to the Company’s significant accounting policies disclosed in Note 2, Significant Accounting Policies and Recent Accounting Pronouncements |
Recent Accounting Pronouncements | Recent Accounting Pronouncements The Company has considered all recent accounting pronouncements issued, but not yet effective, and does not expect any to have a material effect on the Company’s condensed consolidated financial statements. |
COMPONENTS OF THE COMPANY'S C_2
COMPONENTS OF THE COMPANY'S CONDENSED CONSOLIDATED BALANCE SHEETS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
COMPONENTS OF THE COMPANY'S CONDENSED CONSOLIDATED BALANCE SHEETS | |
Schedule of Accounts Receivable | Accounts Receivable September 30, December 31, (In thousands) 2023 2022 Accounts receivable trade $ 76,507 $ 78,914 Allowance for ship and debit (44,089) (53,184) Allowance for stock rotation and rebate (3,198) (3,759) Allowance for credit losses (681) (1,135) Total $ 28,539 $ 20,836 |
Schedule of Allowance for Credit Losses | Allowance for Credit Losses Three Months Ended Nine Months Ended September 30, September 30, (In thousands) 2023 2022 2023 2022 Beginning balance $ (681) $ (704) $ (1,135) $ (445) Provision for credit loss expense (671) (967) (1,498) (1,585) Receivables written off — 49 — 49 Recoveries collected 671 487 1,952 846 Ending balance $ (681) $ (1,135) $ (681) $ (1,135) |
Schedule of Inventories | Inventories September 30, December 31, (In thousands) 2023 2022 Raw materials $ 87,904 $ 75,355 Work-in-process 25,187 15,440 Finished goods 37,155 44,625 Total $ 150,246 $ 135,420 |
Schedule Of Intangible Assets | Intangible Assets September 30, 2023 December 31, 2022 Accumulated Accumulated (In thousands) Gross Amortization Net Gross Amortization Net Domain name $ 1,261 $ — $ 1,261 $ 1,261 $ — $ 1,261 Developed technology 37,960 (34,977) 2,983 37,960 (33,531) 4,429 Technology licenses 1,926 (1,203) 723 1,926 (1,019) 907 Total intangible assets $ 41,147 $ (36,180) $ 4,967 $ 41,147 $ (34,550) $ 6,597 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Estimated Amortization Fiscal Year (In thousands) 2023 (remaining three months) $ 543 2024 1,279 2025 832 2026 687 2027 365 Total $ 3,706 |
Schedule of Accumulated Other Comprehensive Loss | Changes in accumulated other comprehensive loss for the three and nine months ended September 30, 2023 and 2022, were as follows: Unrealized Gains and Losses on Defined Benefit Foreign Currency Marketable Securities Pension Items Items Total Three Months Ended Three Months Ended Three Months Ended Three Months Ended September 30, September 30, September 30, September 30, (In thousands) 2023 2022 2023 2022 2023 2022 2023 2022 Beginning balance $ (3,295) $ (6,506) $ 821 $ (633) $ (3,283) $ (2,921) $ (5,757) $ (10,060) Other comprehensive income (loss) before reclassifications 455 (731) — — (407) (1,044) 48 (1,775) Amounts reclassified from accumulated other comprehensive loss — — (21) (1) 18 (1) — — (21) 18 Net-current period other comprehensive income (loss) 455 (731) (21) 18 (407) (1,044) 27 (1,757) Ending balance $ (2,840) $ (7,237) $ 800 $ (615) $ (3,690) $ (3,965) $ (5,730) $ (11,817) (1) This component of accumulated other comprehensive income (loss) is included in the computation of net periodic pension cost for the three months ended September 30, 2023 and 2022. Unrealized Gains and Losses on Defined Benefit Foreign Currency Marketable Securities Pension Items Items Total Nine Months Ended Nine Months Ended Nine Months Ended Nine Months Ended September 30, September 30, September 30, September 30, (In thousands) 2023 2022 2023 2022 2023 2022 2023 2022 Beginning balance $ (5,323) $ (1,165) $ 862 $ (674) $ (2,883) $ (1,898) $ (7,344) $ (3,737) Other comprehensive income (loss) before reclassifications 2,483 (6,072) — — (807) (2,067) 1,676 (8,139) Amounts reclassified from accumulated other comprehensive loss — — (62) (1) 59 (1) — — (62) 59 Net-current period other comprehensive income (loss) 2,483 (6,072) (62) 59 (807) (2,067) 1,614 (8,080) Ending balance $ (2,840) $ (7,237) $ 800 $ (615) $ (3,690) $ (3,965) $ (5,730) $ (11,817) (1) This component of accumulated other comprehensive income (loss) is included in the computation of net periodic pension cost for the nine months ended September 30, 2023 and 2022. |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
FAIR VALUE MEASUREMENTS | |
Schedule of Fair value of cash equivalents and marketable securities | The fair-value hierarchy of the Company’s cash equivalents and marketable securities at September 30, 2023 and December 31, 2022, was as follows: Fair Value Measurement at September 30, 2023 Quoted Prices in Active Markets for Significant Other Identical Assets Observable Inputs (In thousands) Total Fair Value (Level 1) (Level 2) Commercial paper $ 39,539 $ — $ 39,539 Corporate securities 261,896 — 261,896 Money market funds 781 781 — Total $ 302,216 $ 781 $ 301,435 Fair Value Measurement at December 31, 2022 Quoted Prices in Active Markets for Significant Other Identical Assets Observable Inputs (In thousands) Total Fair Value (Level 1) (Level 2) Commercial paper $ 58,683 $ — $ 58,683 Corporate securities 248,441 — 248,441 Money market funds 363 363 — Total $ 307,487 $ 363 $ 307,124 |
MARKETABLE SECURITIES (Tables)
MARKETABLE SECURITIES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
MARKETABLE SECURITIES | |
Schedule of Available-for-sale Securities | Amortized cost and estimated fair market value of marketable securities classified as available-for-sale (excluding cash equivalents) at September 30, 2023, were as follows: Amortized Gross Unrealized Estimated Fair (In thousands) Cost Gains Losses Market Value Investments due in 3 months or less: Corporate securities $ 36,088 $ — $ (207) $ 35,881 Total 36,088 — (207) 35,881 Investments due in 4-12 months: Corporate securities 39,377 4 (664) 38,717 Total 39,377 4 (664) 38,717 Investments due in 12 months or greater: Corporate securities 189,271 18 (1,991) 187,298 Total 189,271 18 (1,991) 187,298 Total marketable securities $ 264,736 $ 22 $ (2,862) $ 261,896 Amortized cost and estimated fair market value of marketable securities classified as available-for-sale (excluding cash equivalents) at December 31, 2022, were as follows: Amortized Gross Unrealized Estimated Fair (In thousands) Cost Gains Losses Market Value Investments due in 3 months or less: Corporate securities $ 21,803 $ — $ (135) $ 21,668 Total 21,803 — (135) 21,668 Investments due in 4-12 months: Corporate securities 173,833 — (4,019) 169,814 Total 173,833 — (4,019) 169,814 Investments due in 12 months or greater: Corporate securities 58,128 71 (1,240) 56,959 Total 58,128 71 (1,240) 56,959 Total marketable securities $ 253,764 $ 71 $ (5,394) $ 248,441 |
Schedule of Available-for-sale Securities in an Unrealized Loss Position | The following table summarizes marketable securities classified as available-for-sale (excluding cash equivalents) in a continuous unrealized loss position for which an allowance for credit losses was not recorded at September 30, 2023: Less Than 12 Months 12 Months or Longer Total Estimated Gross Estimated Gross Estimated Gross Fair Market Unrealized Fair Market Unrealized Fair Market Unrealized (In thousands) Value Losses Value Losses Value Losses Corporate securities $ 200,713 $ (2,001) $ 55,695 $ (861) $ 256,408 $ (2,862) Total marketable securities $ 200,713 $ (2,001) $ 55,695 $ (861) $ 256,408 $ (2,862) |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Stock-based Compensation Expense | The following table summarizes the stock-based compensation expense recognized in accordance with ASC 718-10 for the three and nine months ended September 30, 2023 and 2022: Three Months Ended Nine Months Ended September 30, September 30, (In thousands) 2023 2022 2023 2022 Cost of revenues $ 446 $ 172 $ 1,193 $ 727 Research and development 2,895 2,334 7,992 7,712 Sales and marketing 1,787 1,267 5,061 4,392 General and administrative 1,777 (755) 6,779 2,879 Total stock-based compensation expense $ 6,905 $ 3,018 $ 21,025 $ 15,710 |
Performance Based Awards (PSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Share-based Compensation, Restricted Stock Units Award Activity | A summary of PSUs outstanding as of September 30, 2023 and activity during the nine months ended, is presented below: Weighted-Average Weighted-Average Remaining Aggregate Shares Grant Date Fair Contractual Term Intrinsic Value (In thousands) Value Per Share (In years) (In thousands) Outstanding at January 1, 2023 34 $ 79.94 Granted 130 $ 82.96 Vested (34) $ 79.94 Forfeited — — Outstanding at September 30, 2023 130 $ 82.96 0.25 $ 9,964 Outstanding and expected to vest at September 30, 2023 39 0.25 $ 2,989 |
Long-Term Performance-Based Awards (PRSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Share-based Compensation, Restricted Stock Units Award Activity | A summary of PRSUs outstanding as of September 30, 2023 and activity during the nine months ended, is presented below: Weighted-Average Aggregate Weighted-Average Remaining Intrinsic Shares Grant Date Fair Contractual Term Value (In thousands) Value Per Share (In years) (In thousands) Outstanding at January 1, 2023 236 $ 77.82 Granted 145 $ 80.92 Vested (23) $ 49.68 Forfeited — — Outstanding at September 30, 2023 358 $ 80.89 1.37 $ 27,344 Outstanding and expected to vest at September 30, 2023 6 2.25 $ 445 |
Restricted Stock Units (RSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Share-based Compensation, Restricted Stock Units Award Activity | A summary of RSUs outstanding as of September 30, 2023 and activity during the nine months ended, is presented below: Weighted-Average Aggregate Weighted-Average Remaining Intrinsic Shares Grant Date Fair Contractual Term Value (In thousands) Value Per Share (In years) (In thousands) Outstanding at January 1, 2023 1,096 $ 60.52 Granted 333 $ 81.06 Vested (386) $ 51.49 Forfeited (22) $ 71.71 Outstanding at September 30, 2023 1,021 $ 70.39 1.68 $ 77,875 Outstanding and expected to vest at September 30, 2023 946 1.59 $ 72,163 |
SIGNIFICANT CUSTOMERS AND GEO_2
SIGNIFICANT CUSTOMERS AND GEOGRAPHIC NET REVENUES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Concentration Risk [Line Items] | |
Schedules of Geographic Net Revenues | The Company markets its products globally through its sales personnel and a worldwide network of independent sales representatives and distributors. Geographic net revenues, based on “bill to” customer locations, for the three and nine months ended September 30, 2023 and 2022, were as follows: Three Months Ended Nine Months Ended September 30, September 30, (In thousands) 2023 2022 2023 2022 United States of America $ 2,208 $ 8,387 $ 6,903 $ 22,862 Hong Kong/China 79,735 80,508 215,829 282,508 India 9,697 9,660 27,738 22,765 Taiwan 4,949 4,895 11,453 16,000 Korea 4,308 10,071 17,425 47,298 Western Europe (excluding Germany) 8,498 10,790 20,912 27,164 Japan 4,311 9,777 13,390 27,986 Germany 5,741 16,601 19,290 42,545 Other 6,064 9,544 22,091 37,240 Total net revenues $ 125,511 $ 160,233 $ 355,031 $ 526,368 |
Net revenue | |
Concentration Risk [Line Items] | |
Schedules of Concentration of Risk, by Risk Factor | The following customers represented 10% or more of the Company’s net revenues for the respective periods: Three Months Ended Nine Months Ended September 30, September 30, Customer 2023 2022 2023 2022 Avnet 28 % 28 % 26 % 30 % Honestar Technologies Co., Ltd. 23 % * 17 % 12 % Salcomp Group * 12 % 11 % * * Total customer revenue was less than 10% of net revenues. |
Accounts receivable | |
Concentration Risk [Line Items] | |
Schedules of Concentration of Risk, by Risk Factor | The following customers represented 10% or more of accounts receivable at September 30, 2023 and December 31, 2022: September 30, December 31, Customer 2023 2022 Avnet 41 % 42 % Honestar Technologies Co., Ltd. 12 % * Salcomp Group 10 % 13 % Flextronics Group * 11 % * Total customer accounts receivable was less than 10% of accounts receivable. |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
STOCKHOLDERS' EQUITY | |
Schedule of Common Stock Shares Outstanding | Three Months Ended Nine Months Ended September 30, September 30, (In thousands) 2023 2022 2023 2022 Beginning balance 57,351 57,134 56,961 59,913 Common stock issued under employee stock plans 59 61 529 785 Repurchased (24) — (104) (3,503) Ending balance 57,386 57,195 57,386 57,195 |
Schedule of Dividends Declared and Paid | For the three and nine months ended September 30, 2023 and 2022, cash dividends declared and paid were as follows: Three Months Ended Nine Months Ended September 30, September 30, (In thousands, except per share amounts) 2023 2022 2023 2022 Dividends declared and paid $ 10,904 $ 10,293 $ 32,665 $ 31,229 Dividends declared per common share $ 0.19 $ 0.18 $ 0.57 $ 0.54 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
EARNINGS PER SHARE | |
Schedule of Earnings per share calculation | A summary of the earnings per share calculation is as follows: Three Months Ended Nine Months Ended September 30, September 30, (In thousands, except per share amounts) 2023 2022 2023 2022 Basic earnings per share: Net income $ 19,796 $ 45,964 $ 41,464 $ 148,036 Weighted-average common shares 57,383 57,172 57,282 58,039 Basic earnings per share $ 0.34 $ 0.80 $ 0.72 $ 2.55 Diluted earnings per share: (1) Net income $ 19,796 $ 45,964 $ 41,464 $ 148,036 Weighted-average common shares 57,383 57,172 57,282 58,039 Effect of dilutive awards: Employee stock plans 358 431 429 596 Diluted weighted-average common shares 57,741 57,603 57,711 58,635 Diluted earnings per share $ 0.34 $ 0.80 $ 0.72 $ 2.52 (1) The Company includes the shares underlying performance-based awards in the calculation of diluted earnings per share if the performance conditions have been satisfied as of the end of the reporting period and excludes such shares when the necessary conditions have not been met. The Company has excluded the shares underlying the outstanding performance-based awards in the 2023 and 2022 calculations as the shares were not contingently issuable as of the end of the reporting periods. |
COMPONENTS OF THE COMPANY'S C_3
COMPONENTS OF THE COMPANY'S CONDENSED CONSOLIDATED BALANCE SHEETS - Accounts Receivable (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
COMPONENTS OF THE COMPANY'S CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||
Accounts receivable trade | $ 76,507 | $ 78,914 | ||||
Allowance for ship and debit | (44,089) | (53,184) | ||||
Allowance for stock rotation and rebate | (3,198) | (3,759) | ||||
Allowance for credit losses | (681) | $ (681) | (1,135) | $ (1,135) | $ (704) | $ (445) |
Total | $ 28,539 | $ 20,836 |
COMPONENTS OF THE COMPANY'S C_4
COMPONENTS OF THE COMPANY'S CONDENSED CONSOLIDATED BALANCE SHEETS - Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
COMPONENTS OF THE COMPANY'S CONDENSED CONSOLIDATED BALANCE SHEETS | ||||
Beginning Balance | $ (681) | $ (704) | $ (1,135) | $ (445) |
Provision for credit loss expense | (671) | (967) | (1,498) | (1,585) |
Receivables written off | 0 | 49 | 0 | 49 |
Recoveries collected | 671 | 487 | 1,952 | 846 |
Ending Balance | $ (681) | $ (1,135) | $ (681) | $ (1,135) |
COMPONENTS OF THE COMPANY'S C_5
COMPONENTS OF THE COMPANY'S CONDENSED CONSOLIDATED BALANCE SHEETS - Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
COMPONENTS OF THE COMPANY'S CONDENSED CONSOLIDATED BALANCE SHEETS | ||
Raw materials | $ 87,904 | $ 75,355 |
Work-in-process | 25,187 | 15,440 |
Finished goods | 37,155 | 44,625 |
Total | $ 150,246 | $ 135,420 |
COMPONENTS OF THE COMPANY'S C_6
COMPONENTS OF THE COMPANY'S CONDENSED CONSOLIDATED BALANCE SHEETS - Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Schedule of Intangible Assets Table [Line Items] | ||
Intangible Assets, Gross | $ 41,147 | $ 41,147 |
Accumulated Amortization | (36,180) | (34,550) |
Total | 3,706 | |
Total Intangible Assets, Net | 4,967 | 6,597 |
Developed technology | ||
Schedule of Intangible Assets Table [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 37,960 | 37,960 |
Accumulated Amortization | (34,977) | (33,531) |
Total | 2,983 | 4,429 |
Technology licenses | ||
Schedule of Intangible Assets Table [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 1,926 | 1,926 |
Accumulated Amortization | (1,203) | (1,019) |
Total | 723 | 907 |
Domain name | ||
Schedule of Intangible Assets Table [Line Items] | ||
Indefinite-Lived Intangible Assets | 1,261 | 1,261 |
Accumulated Amortization | $ 0 | $ 0 |
COMPONENTS OF THE COMPANY'S C_7
COMPONENTS OF THE COMPANY'S CONDENSED CONSOLIDATED BALANCE SHEETS - Future Amortization Expense (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
2023 (remaining three months) | $ 543 |
2024 | 1,279 |
2025 | 832 |
2026 | 687 |
2027 | 365 |
Total | $ 3,706 |
COMPONENTS OF THE COMPANY'S C_8
COMPONENTS OF THE COMPANY'S CONDENSED CONSOLIDATED BALANCE SHEETS - Changes in Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | $ (5,757) | $ (10,060) | $ (7,344) | $ (3,737) |
Other comprehensive income (loss) before reclassifications | 48 | (1,775) | 1,676 | (8,139) |
Amounts reclassified from accumulated other comprehensive loss | (21) | 18 | (62) | 59 |
Net-current period other comprehensive income (loss) | 27 | (1,757) | 1,614 | (8,080) |
Ending balance | (5,730) | (11,817) | (5,730) | (11,817) |
Unrealized Gains and Losses on Marketable Securities | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | (3,295) | (6,506) | (5,323) | (1,165) |
Other comprehensive income (loss) before reclassifications | 455 | (731) | 2,483 | (6,072) |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | 0 | 0 |
Net-current period other comprehensive income (loss) | 455 | (731) | 2,483 | (6,072) |
Ending balance | (2,840) | (7,237) | (2,840) | (7,237) |
Defined Benefit Pension Items | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | 821 | (633) | 862 | (674) |
Other comprehensive income (loss) before reclassifications | 0 | 0 | 0 | 0 |
Amounts reclassified from accumulated other comprehensive loss | (21) | 18 | (62) | 59 |
Net-current period other comprehensive income (loss) | (21) | 18 | (62) | 59 |
Ending balance | 800 | (615) | 800 | (615) |
Foreign Currency Items | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | (3,283) | (2,921) | (2,883) | (1,898) |
Other comprehensive income (loss) before reclassifications | (407) | (1,044) | (807) | (2,067) |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | 0 | 0 |
Net-current period other comprehensive income (loss) | (407) | (1,044) | (807) | (2,067) |
Ending balance | $ (3,690) | $ (3,965) | $ (3,690) | $ (3,965) |
FAIR VALUE MEASUREMENTS - Fair
FAIR VALUE MEASUREMENTS - Fair Value Measurement (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Investments at Fair Value | $ 302,216 | $ 307,487 |
Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments at Fair Value | 39,539 | 58,683 |
Corporate securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments at Fair Value | 261,896 | 248,441 |
Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments at Fair Value | 781 | 363 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Investments at Fair Value | 781 | 363 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments at Fair Value | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments at Fair Value | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments at Fair Value | 781 | 363 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Investments at Fair Value | 301,435 | 307,124 |
Significant Other Observable Inputs (Level 2) | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments at Fair Value | 39,539 | 58,683 |
Significant Other Observable Inputs (Level 2) | Corporate securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments at Fair Value | 261,896 | 248,441 |
Significant Other Observable Inputs (Level 2) | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments at Fair Value | $ 0 | $ 0 |
MARKETABLE SECURITIES - Marketa
MARKETABLE SECURITIES - Marketable Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Interest receivable | $ 2,700 | $ 1,200 |
Amortized Cost | 264,736 | 253,764 |
Gross Unrealized Gains | 22 | 71 |
Gross Unrealized Losses | (2,862) | (5,394) |
Estimated Fair Market Value | 261,896 | 248,441 |
Investments due in 3 months or less: | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 36,088 | 21,803 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (207) | (135) |
Estimated Fair Market Value | 35,881 | 21,668 |
Investments due in 4-12 months: | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 39,377 | 173,833 |
Gross Unrealized Gains | 4 | 0 |
Gross Unrealized Losses | (664) | (4,019) |
Estimated Fair Market Value | 38,717 | 169,814 |
Investments due in 12 months or greater: | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 189,271 | 58,128 |
Gross Unrealized Gains | 18 | 71 |
Gross Unrealized Losses | (1,991) | (1,240) |
Estimated Fair Market Value | 187,298 | 56,959 |
Corporate securities | Investments due in 3 months or less: | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 36,088 | 21,803 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (207) | (135) |
Estimated Fair Market Value | 35,881 | 21,668 |
Corporate securities | Investments due in 4-12 months: | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 39,377 | 173,833 |
Gross Unrealized Gains | 4 | 0 |
Gross Unrealized Losses | (664) | (4,019) |
Estimated Fair Market Value | 38,717 | 169,814 |
Corporate securities | Investments due in 12 months or greater: | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 189,271 | 58,128 |
Gross Unrealized Gains | 18 | 71 |
Gross Unrealized Losses | (1,991) | (1,240) |
Estimated Fair Market Value | $ 187,298 | $ 56,959 |
MARKETABLE SECURITIES - Continu
MARKETABLE SECURITIES - Continuous Unrealized Loss Position (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Debt Securities, Available-for-sale [Line Items] | |
Less Than 12 Months Estimated Fair Market Value, Total marketable securities | $ 200,713 |
Less Than 12 Months Gross Unrealized Losses, Total marketable securities | (2,001) |
12 Months or Longer Estimated Fair Market Value, Total marketable securities | 55,695 |
12 Months or Longer Gross Unrealized Losses, Total marketable securities | (861) |
Total Estimated Fair Market Value, Total marketable securities | 256,408 |
Total Gross Unrealized Losses, Total marketable securities | (2,862) |
Corporate securities | |
Debt Securities, Available-for-sale [Line Items] | |
Less Than 12 Months Estimated Fair Market Value, Total marketable securities | 200,713 |
Less Than 12 Months Gross Unrealized Losses, Total marketable securities | (2,001) |
12 Months or Longer Estimated Fair Market Value, Total marketable securities | 55,695 |
12 Months or Longer Gross Unrealized Losses, Total marketable securities | (861) |
Total Estimated Fair Market Value, Total marketable securities | 256,408 |
Total Gross Unrealized Losses, Total marketable securities | $ (2,862) |
MARKETABLE SECURITIES - Unreali
MARKETABLE SECURITIES - Unrealized Losses (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
MARKETABLE SECURITIES | ||||
Unrealized losses on marketable securities | $ 0 | $ 0 | $ 0 | $ 0 |
STOCK-BASED COMPENSATION - Stoc
STOCK-BASED COMPENSATION - Stock-Based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Stock-based compensation expense for stock options, stock awards and employee stock purchases included in operations: | ||||
Stock-based compensation expense | $ 6,905 | $ 3,018 | $ 21,025 | $ 15,710 |
Restricted Stock Units (RSUs) | ||||
Stock-based compensation expense for stock options, stock awards and employee stock purchases included in operations: | ||||
Stock-based compensation expense | 6,100 | 6,400 | 17,300 | 17,300 |
Performance Based Awards and Long Term Performance based Units | ||||
Stock-based compensation expense for stock options, stock awards and employee stock purchases included in operations: | ||||
Stock-based compensation expense | 300 | (3,900) | 2,300 | (2,900) |
Employee Stock Purchase Plan | ||||
Stock-based compensation expense for stock options, stock awards and employee stock purchases included in operations: | ||||
Stock-based compensation expense | 500 | 500 | 1,400 | 1,300 |
Cost of revenues | ||||
Stock-based compensation expense for stock options, stock awards and employee stock purchases included in operations: | ||||
Stock-based compensation expense | 446 | 172 | 1,193 | 727 |
Research and development | ||||
Stock-based compensation expense for stock options, stock awards and employee stock purchases included in operations: | ||||
Stock-based compensation expense | 2,895 | 2,334 | 7,992 | 7,712 |
Sales and marketing | ||||
Stock-based compensation expense for stock options, stock awards and employee stock purchases included in operations: | ||||
Stock-based compensation expense | 1,787 | 1,267 | 5,061 | 4,392 |
General and administrative | ||||
Stock-based compensation expense for stock options, stock awards and employee stock purchases included in operations: | ||||
Stock-based compensation expense | $ 1,777 | $ (755) | $ 6,779 | $ 2,879 |
STOCK-BASED COMPENSATION - Perf
STOCK-BASED COMPENSATION - Performance-based Awards and Restricted Stock Units (Details) $ / shares in Units, $ in Thousands | 9 Months Ended |
Sep. 30, 2023 USD ($) $ / shares shares | |
Restricted Stock Units (RSUs) | |
Shares | |
Outstanding, shares at beginning of the period | 1,096,000 |
Granted, shares | 333,000 |
Vested, shares | (386,000) |
Forfeited, shares | (22,000) |
Outstanding, shares at ending of the period | 1,021,000 |
Outstanding and expected to vest at ending of the period | 946,000 |
Weighted- Average Grant Date Fair Value Per Share (in dollars per share) | |
Outstanding, weighted-average grant date fair value per share, beginning of period | $ / shares | $ 60.52 |
Granted | $ / shares | 81.06 |
Vested | $ / shares | 51.49 |
Forfeited | $ / shares | 71.71 |
Outstanding, weighted-average grant date fair value per share, end of period | $ / shares | $ 70.39 |
Weighted-Average Remaining Contractual Term (In years) | |
Outstanding, weighted-average remaining contractual term (in years) | 1 year 8 months 4 days |
Outstanding and expected to vest, weighted-average remaining contractual term (in years) | 1 year 7 months 2 days |
Aggregate Intrinsic Value (In thousands) | |
Outstanding, Aggregate Intrinsic Value | $ | $ 77,875 |
Outstanding and expected to vest, aggregate intrinsic value | $ | $ 72,163 |
Long-Term Performance-Based Awards (PRSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Performance period | 3 years |
Shares | |
Outstanding, shares at beginning of the period | 236,000 |
Granted, shares | 145,000 |
Vested, shares | (23,000) |
Forfeited, shares | 0 |
Outstanding, shares at ending of the period | 358,000 |
Outstanding and expected to vest at ending of the period | 6,000 |
Weighted- Average Grant Date Fair Value Per Share (in dollars per share) | |
Outstanding, weighted-average grant date fair value per share, beginning of period | $ / shares | $ 77.82 |
Granted | $ / shares | 80.92 |
Vested | $ / shares | 49.68 |
Forfeited | $ / shares | 0 |
Outstanding, weighted-average grant date fair value per share, end of period | $ / shares | $ 80.89 |
Weighted-Average Remaining Contractual Term (In years) | |
Outstanding, weighted-average remaining contractual term (in years) | 1 year 4 months 13 days |
Outstanding and expected to vest, weighted-average remaining contractual term (in years) | 2 years 3 months |
Aggregate Intrinsic Value (In thousands) | |
Outstanding, Aggregate Intrinsic Value | $ | $ 27,344 |
Outstanding and expected to vest, aggregate intrinsic value | $ | $ 445 |
Performance Based Awards (PSUs) | |
Shares | |
Outstanding, shares at beginning of the period | 34,000 |
Granted, shares | 130,000 |
Vested, shares | (34,000) |
Forfeited, shares | 0 |
Outstanding, shares at ending of the period | 130,000 |
Outstanding and expected to vest at ending of the period | 39,000 |
Weighted- Average Grant Date Fair Value Per Share (in dollars per share) | |
Outstanding, weighted-average grant date fair value per share, beginning of period | $ / shares | $ 79.94 |
Granted | $ / shares | 82.96 |
Vested | $ / shares | 79.94 |
Forfeited | $ / shares | 0 |
Outstanding, weighted-average grant date fair value per share, end of period | $ / shares | $ 82.96 |
Weighted-Average Remaining Contractual Term (In years) | |
Outstanding, weighted-average remaining contractual term (in years) | 3 months |
Outstanding and expected to vest, weighted-average remaining contractual term (in years) | 3 months |
Aggregate Intrinsic Value (In thousands) | |
Outstanding, Aggregate Intrinsic Value | $ | $ 9,964 |
Outstanding and expected to vest, aggregate intrinsic value | $ | $ 2,989 |
Minimum | Long-Term Performance-Based Awards (PRSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Performance-based award shares released as a percentage of target number | 0% |
Minimum | Performance Based Awards (PSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Performance-based award shares released as a percentage of target number | 0% |
Maximum | Long-Term Performance-Based Awards (PRSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Performance-based award shares released as a percentage of target number | 200% |
Maximum | Performance Based Awards (PSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Performance-based award shares released as a percentage of target number | 200% |
SIGNIFICANT CUSTOMERS AND GEO_3
SIGNIFICANT CUSTOMERS AND GEOGRAPHIC NET REVENUES - Customer and Credit Risk Concentration (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 USD ($) customer | Sep. 30, 2022 USD ($) customer | Sep. 30, 2023 USD ($) customer segment | Sep. 30, 2022 USD ($) customer | Dec. 31, 2022 customer | |
Concentration Risk [Line Items] | |||||
Number of reportable segments | segment | 1 | ||||
NET REVENUES | $ | $ 125,511 | $ 160,233 | $ 355,031 | $ 526,368 | |
Distributors | |||||
Concentration Risk [Line Items] | |||||
NET REVENUES | $ | $ 93,200 | $ 103,600 | $ 238,700 | $ 373,300 | |
Net revenue | Customer concentration risk | |||||
Concentration Risk [Line Items] | |||||
Number of major customers | customer | 10 | 10 | 10 | 10 | |
Net revenue | Customer concentration risk | Avnet | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage of total net revenues | 28% | 28% | 26% | 30% | |
Net revenue | Customer concentration risk | Honestar Technologies Co., Ltd. | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage of total net revenues | 23% | 17% | 12% | ||
Net revenue | Customer concentration risk | Salcomp Group | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage of total net revenues | 12% | 11% | |||
Net revenue | Customer concentration risk | Ten Customers | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage of total net revenues | 83% | 72% | 81% | 75% | |
Accounts receivable | Credit concentration risk | |||||
Concentration Risk [Line Items] | |||||
Number of major customers | customer | 10 | 10 | |||
Accounts receivable | Credit concentration risk | Avnet | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 41% | 42% | |||
Accounts receivable | Credit concentration risk | Honestar Technologies Co., Ltd. | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 12% | ||||
Accounts receivable | Credit concentration risk | Salcomp Group | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 10% | 13% | |||
Accounts receivable | Credit concentration risk | Flextronics Group | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 11% | ||||
Accounts receivable | Credit concentration risk | Ten Customers | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 89% | 87% |
SIGNIFICANT CUSTOMERS AND GEO_4
SIGNIFICANT CUSTOMERS AND GEOGRAPHIC NET REVENUES - Geographic Net Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Revenue by Geography | ||||
Total net revenues | $ 125,511 | $ 160,233 | $ 355,031 | $ 526,368 |
United States of America | ||||
Revenue by Geography | ||||
Total net revenues | 2,208 | 8,387 | 6,903 | 22,862 |
Hong Kong/China | ||||
Revenue by Geography | ||||
Total net revenues | 79,735 | 80,508 | 215,829 | 282,508 |
India | ||||
Revenue by Geography | ||||
Total net revenues | 9,697 | 9,660 | 27,738 | 22,765 |
Taiwan | ||||
Revenue by Geography | ||||
Total net revenues | 4,949 | 4,895 | 11,453 | 16,000 |
Korea | ||||
Revenue by Geography | ||||
Total net revenues | 4,308 | 10,071 | 17,425 | 47,298 |
Western Europe (excluding Germany) | ||||
Revenue by Geography | ||||
Total net revenues | 8,498 | 10,790 | 20,912 | 27,164 |
Japan | ||||
Revenue by Geography | ||||
Total net revenues | 4,311 | 9,777 | 13,390 | 27,986 |
Germany | ||||
Revenue by Geography | ||||
Total net revenues | 5,741 | 16,601 | 19,290 | 42,545 |
Other | ||||
Revenue by Geography | ||||
Total net revenues | $ 6,064 | $ 9,544 | $ 22,091 | $ 37,240 |
STOCKHOLDERS' EQUITY - Common S
STOCKHOLDERS' EQUITY - Common Stock Shares Outstanding (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Common Stock Shares Outstanding [Abstract] | ||||
Beginning balance | 57,351,000 | 57,134,000 | 56,961,000 | 59,913,000 |
Common stock issued under employee stock plans | 59,000 | 61,000 | 529,000 | 785,000 |
Repurchased | (24,000) | 0 | (104,000) | (3,503,000) |
Ending balance | 57,386,000 | 57,195,000 | 57,386,000 | 57,195,000 |
STOCKHOLDERS' EQUITY - Common_2
STOCKHOLDERS' EQUITY - Common Stock Repurchases (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Stockholders' Equity Attributable to Parent [Abstract] | |||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 73.4 | $ 73.4 | $ 81.3 | ||
Repurchase of common stock (shares) | 24,000 | 0 | 104,000 | 3,503,000 | |
Repurchase of common stock | $ 1.8 | $ 7.8 |
STOCKHOLDERS' EQUITY - Dividend
STOCKHOLDERS' EQUITY - Dividends (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Oct. 31, 2023 dividend $ / shares | Feb. 28, 2023 $ / shares | Jan. 31, 2022 $ / shares | Sep. 30, 2023 USD ($) $ / shares | Sep. 30, 2022 USD ($) $ / shares | Sep. 30, 2023 USD ($) $ / shares | Sep. 30, 2022 USD ($) $ / shares | |
Class of Stock [Line Items] | |||||||
Dividends declared and paid | $ | $ 10,904 | $ 10,293 | $ 32,665 | $ 31,229 | |||
Dividends declared per common share | $ 0.19 | $ 0.18 | $ 0.57 | $ 0.54 | |||
Common Stock, Dividends, Per Share, Declared, Prior Fiscal Year, Each Quarter | $ 0.18 | ||||||
Common Stock, Dividends, Per Share, Declared, Current Fiscal Year, Each Quarter | $ 0.19 | ||||||
Subsequent Event | |||||||
Class of Stock [Line Items] | |||||||
Common Stock, Dividends, Number of Quarterly Distributions Declared | dividend | 5 | ||||||
Common Stock, Dividends Per Share Declared, Current Fiscal Year, Fourth Quarter | $ 0.20 | ||||||
Common Stock, Dividends, Per Share, Declared, Next Fiscal Year, Each Quarter | $ 0.20 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Basic earnings per share: | ||||
Net income | $ 19,796 | $ 45,964 | $ 41,464 | $ 148,036 |
Weighted-average common shares | 57,383,000 | 57,172,000 | 57,282,000 | 58,039,000 |
Basic earnings per share | $ 0.34 | $ 0.80 | $ 0.72 | $ 2.55 |
Diluted earnings per share: | ||||
Net income | $ 19,796 | $ 45,964 | $ 41,464 | $ 148,036 |
Weighted-average common shares | 57,383,000 | 57,172,000 | 57,282,000 | 58,039,000 |
Effect of dilutive awards: | ||||
Employee stock plans | 358,000 | 431,000 | 429,000 | 596,000 |
Diluted weighted-average common shares | 57,741,000 | 57,603,000 | 57,711,000 | 58,635,000 |
Diluted earnings per share | $ 0.34 | $ 0.80 | $ 0.72 | $ 2.52 |
Stock awards excluded in the computation of diluted earnings per share | 0 | 0 | 0 | 0 |
PROVISION FOR INCOME TAXES (Det
PROVISION FOR INCOME TAXES (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
PROVISION FOR INCOME TAXES | ||||
Effective income tax rate | 5.10% | 6.90% | 5.10% | 8.50% |
Federal statutory tax rate | 21% | 21% | 21% | 21% |
LEGAL PROCEEDINGS AND CONTING_2
LEGAL PROCEEDINGS AND CONTINGENCIES (Details) - Pending Litigation - patent | 9 Months Ended | ||
Oct. 31, 2022 | Jan. 06, 2020 | Sep. 30, 2023 | |
Patent Infringement Claim One | |||
Gain and Loss Contingencies [Line Items] | |||
Gain Contingency, Patents Allegedly Infringed upon, Number | 2 | 3 | |
Patent Infringement Claim Two | |||
Gain and Loss Contingencies [Line Items] | |||
Loss Contingency, Patents Allegedly Infringed, Number | 1 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Pay vs Performance Disclosure | ||||
Net Income (Loss) | $ 19,796 | $ 45,964 | $ 41,464 | $ 148,036 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Sep. 30, 2023 shares | |
Trading Arrangements, by Individual | |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Doug Bailey [Member] | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | On August 30, 2023, Doug Bailey, our Vice President of Marketing, adopted a Rule 10b5-1 trading plan. Mr. Bailey’s Rule 10b5-1 trading plan provides for the potential sale of up to 12,000 shares of our common stock until November 30, 2024. This trading plan was entered into during an open window pursuant to the terms of our Insider Trading Policy. Such Rule 10b5-1 trading plan is intended to satisfy the affirmative defense of Rule 10b5-1(c) under the Exchange Act and our policies regarding transactions in our securities. |
Name | Doug Bailey |
Title | Vice President of Marketing |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | August 30, 2023 |
Aggregate Available | 12,000 |