MPWR - Earnings call transcript Q4 2017 | Monolithic Power Systems, Inc.

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Operator

Good day, ladies and gentlemen, and welcome to the Monolithic Power Systems Fourth Quarter 2017 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-answer-session and instructions will be provided at that time. [Operator Instructions] And as a reminder, this conference call is being recorded.

Now I would like to turn the conference over to Monolithic's, Vice President and Chief Financial Officer, Bernie Blegen. ahead. go Please

Bernie Blegen

Form call, make Please management's with SEC published in in much. update quarter from contained very including on the today's contained on Harbor identified earnings call. conference and provided other accessible to MPS risks welcome Michael and through Risks, Form the our and March call. release differ Thank filed expectations. involve course Safe actual in XXXX to fiscal Good forward-looking year of today. fourth is the of founder assumes cause and CEO and Systems current QX that MPS projections on results the XXXX the the to today's are Statement materially conference www.monolithicpower.com. Hsing, XXXX filings, X, to In no which of factors you XX-Q both and afternoon filed our obligation me could Monolithic earnings call. uncertainty, statements information our are to X, November which and today's XX-K differ statements that refer release Safe and could Harbor we uncertainties will cause in on results views website, Power and

grew be refer reconciliation be GAAP are financial income, and or considered our have to GAAP for XXXX, like release, measures year, as will on the gross to reconciling tables and through webcast both earnings table website conference the with I'd posted non-GAAP our financial was GAAP both year in releases with replay GAAP. to be is and prior interest also included of XXXX would the remind along today. analog that filed and to Continuing prepared revenue We the up year. we that the with the QX pleased release investors year not SEC revenue. income, being for These performance financial between semiconductor with in financial R&D will XXXX. measures as the one to, we now with accordance for from earlier available today's which with I measures A income nearly that non-GAAP prepared substitute the trend, are operating discussing measures earnings SIA and five million QX SEC. as of that the our Full filed $XXX.X margin, in website. non-GAAP announce on Internet, earnings over outlines accordance over record double for, the are estimates year-over-year and of XX.X% expense, industry, should is pre-tax SG&A expense, operating for superior net other income, well the you XX.X% growth not to The and live a year on with another basis. XXXX of our call was which

flat essentially at XX.X% revenue storage our market years. up revenue growth consumer XXXX, up segments, and revenue XXXX computing XX.X%, industrial XX.X%, between up by automotive up and Looking revenue over XX.X%, communications

and represented to grew power and to MPS's XX.X% new storage plan reflected revenue stages systems. we year MPS's $XXX.X million $XX.X growth revenue This grew revenue to This Industrial safety storage Compute industrial in number Automotive infotainment, batteries of increased of of market. battery EV growth meters. automotive high-value Let to connectivity speak for sales million revenue $XXX.X primarily sales SSD XXXX and home XXXX offer storage will million Industrial growth to appliances and MPS's compared notebooks. and gaming ahead, MPS's with $XX.X full XX.X% high-end $XX.X lighting, for total products. of body represented point year applications reflected in MPS's consumer of full games products infotainment, and and billion, in cloud of me growth a computing, This and Consumer full revenue in we X.X% million market grew XXXX $X.X year application $XX.X in years revenue. represented this represented XXXX. highlights This XXXX. are represented the revenue. In of Ados. application revenue grew sales growth million controls, Consumer revenue the markets, $XX.X at management Full penetrating segment. Automotive XXXX. including to in and of SAM XXXX. year revenue in million million XXXX. by Compute sources, strong and XXXX. revenue XX.X% is sales opportunity system reflected revenue for $X million largest XX.X% early in

a of Turning per higher the basis non-GAAP grew Non-GAAP year resulted X.X% which earnings basis, quarter. back year $XXX.X $X.XX The and gross overall GAAP enactment MPS million full prior with quarter higher charge $XX.X Tax GAAP record basis, XXXX basis expanded tax in in XXXX year. was than revenue had a our per of comparable of financial achieved to $XXX.X GAAP XXXX the expanded higher XXXX. gross On repatriate year foreign XX.X% one-time to million legislation a the full prior of of to MPS higher rate pre-tax GAAP Jobs $XX.X earnings. the of $X.XX fourth basis, income or than QX. performance. slightly net per grew margin This of from On XX.X% quarter and pretax generated increased XX over full XXXX. XX.X%. XX.X% XX.X% $X.XX from record of MPS allows million, share, also prior Switching a were points The share share. than earnings to On points our XXXX Act non-GAAP revenue sourced XX% margin a tax year. Cuts XX tax expense of in one-time the from XXXX. in over to XX.X% XXXX million. XX.X% income new

by was quarter prior-year and quarter at XXXX compute of XX.X%, Fourth Looking up consumer revenue XXXX. growth automotive GAAP quarter X.X%. XX.X%, revenue for XX the gross up the points segment, prior margin period. XX.X%, communication quarter basis higher segment and of up up XX.X% quarter the X.X% fell Fourth fourth our XXXX industrial XXXX over and storage matching market the than from fourth

Our income prior of GAAP pre-tax reported to was in of quarter $XX.X and the compared quarter million fourth $XX.X million $XX.X XXXX. reported million XXXX in the the

the of fourth the prior gross the XX.X%, fourth quarter XX of quarter year For margin points quarter higher ago. XXXX, basis was and XXXX from a matching non-GAAP than

million fourth quarter and in income million the of to compared $XX.X pre-tax reported non-GAAP in million $XX.X was XXXX. the prior reported quarter $XX.X Our the the

expenses. operating our review Let's

unfunded QX basis, between compensation GAAP increase the quarter reported plan. in net diluted of fourth bottom quarter Our quarter or per million current were and GAAP $XX.X share million, Stock fourth million XXXX. line. million the quarter million $XX.X with litigation fully and million with the Switching share compared compensation XXXX per income difference the the an resulting XXXX. expenses the $X.XX of the tax third quarter quarter fully and the was non-GAAP of are was legislation. with discussed $XX.X in the $XX.X quarter stock The expenses the the $X.X third fourth quarter the the previous reflecting, million expense operating $X.XX in expenses in $XX.X the million passed XXXX were per included quarter XXXX. of prior per QX GAAP both results The compared was $XX.X fourth operating were share $XX.X from GAAP million the from XXXX $XX.X From XXXX. Fourth operating quarter expenses XXXX an share of expenses to deferred $X.XX of fourth diluted On from in million operating fully comp $XXX,XXX. income million quarter per operating fourth in or share a in $X.XX $XX.X XXXX for GAAP newly expenses expenses in primarily and previous basis, quarter the XXXX. per were new up the fourth from per non-GAAP here million in share expense and quarter, of or spending. of $X.XX $X.XX $XX.X in and product $X.XX and fourth with diluted compared quarter expense of in in million of $X the up a share net non-GAAP $XX.X expenses R&D, quarter one-time quarter non-GAAP compared XXXX

end of XXXX. let's cash at the of balance sheet. million were less the and Now the of at quarter fourth XXXX, investments than quarter the prior Cash, $XXX,XXX $XXX.X equivalents look

were to receivable of the proceeds This million, MPS $X.X of lower recorded was which XXXX year million compared XXXX. flow days the than was of and of sales were million QX than generated purchases For cash quarter the full sales fourth outstanding the in XXXX Cash and from the quarter $X.X exercises $XX.X year, QX quarter. million capital of $XX,XXX first end million, proportion was the ESPP XX day at we quarter about in stock year. payments XXXX being equipment $XX.X XXXX. of operating and accounts outstanding, of XX days XXXX. two $XXX.X three quarter for $XX.X option quarter full for due prior the days Fourth was prior $XX.X a in were Fourth for XXXX, lower months or the with days million QX were all $XX.X cash million. decrease XX were sales QX the the and Dividend employee's for of and higher flow the quarter reported the for the of operating million.

of to the Our the down quarter. at of to now the the of million, $XX.X from our - of quarter of from end end decreased I end QX inventory end of prior XXXX. days were at outlook. turn the would XXXX million fourth to internal the QX XXX XXX at days Days like at from inventories slightly $XX.X the

a as for announcing and of March $X.XX XX, MPS per increase is dividend shareholders share record per of First $X.XX from to in our XX% share XXXX. foremost, quarterly

return the our for shareholders. During next future MPS look year, opportunities to will value

January X, XXX. the accounting As revenue. a XXXX, role have on adopted our QX modifies new will ASC recognition This minimal standard, of revenue which MPS impact

the to million. $XXX we Looking $XXX in forecasting million of revenue at range are QX,

$XXX,XXX to diluted $XXX,XXX; or shares of compensation Other non-GAAP XX.X% of income million stock-based and before XX.X%; cost to in to million $XXX,XXX expenses. be expect the range This be $XX.X XX.X% range in estimate gross also including R&D will gains the litigation gross $XXX,XXX range expense and Fully charged non-GAAP SG&A to sold; to XX.X of to losses. $XXX,XXX range X%; million GAAP to margin million. the of the in $XX.X XX. compensation approximately XX.X be of of following, of of goods million, total shares. expenses that foreign We $XX.X litigation to the XX.X% expenses to excludes to stock exchange in margin

XX% conclusion, for rate shareholder a is and GAAP a open between basis. for value. to to to continue X% tax microphone we grow XXXX and and on enhance the now expected Our continue I'll non-GAAP both questions. In be

Operator

first Bolton comes Instructions] question from Thank Our [Operator Quinn & Needham you. Company. with

open. is line Your

Quinn Bolton

Hi, questions. and and in to Michael, Congratulations Michael on XX% a hi, record Bernie nice the increase of dividend. another just Bernie. see couple

that business management down like and ramp up you for spending Purley bit compute quarter-on-quarter, CapEx guys? an of fourth Purley. superpower quarter, update sequentially you CapEx give was like looks despite the of detail on it First Bernie, can little could if the in a on? the on on And I you what give was it the us wonder looks then, ramp were significant

Bernie Blegen

Sure.

with first in your far computing question the storage we're what as to observing QX up as start in me QX. Let and

which a both is of good be notebook. and had storage continuation business, that we cloud associated offset server supposed very and computing, growth declines in in interestingly, was with So to by the the our

office business, And the the dollars we the in and of are, So With up XXXX. see space quarter, versus of in to little what and for we purchases the pick picked And which this million. that QSMod regard servers expected $XX our date the internally are is expect or has at a - years side our secure and lower we up are made that bit business will is early that we'll good over what the to dollar to some higher categories, the expectation far offices, think tracking I been the to to telophase in at capacity as in primarily we one $XX come. cap of accretive to two ahead had - spending, the for price fact, to in million we've benefit be. fixed as a way earnings a other some of to believe that for opportunity

Quinn Bolton

what could rank the drivers one you look is this you quarter XXXX, heading Great. size And maybe perhaps then Maybe see as into for question, biggest revenue some us, into or of forward-looking just of incremental sort you year?

Bernie Blegen

address to it percentage basis. going I'm a Sure. on

bit And we between saying a XX% maybe dollars to had expected the I've was is And been in different. so the But as in past grow little in any that XX%. recent to automotive, experience that quarter-over-quarter XXXX. the consistent

and have So the that that wins XXXX we we and design automotive… believe visibility the XXXX XXXX, and the - long-term, that in for

Michael Hsing

The percentage market set. few The years, our plus XXXX in at change. on and that each and percentage forward is market XXXX, see XXXX growth look a or only all our pretty looking as just two minus very segments. segment, [ph] be fewer three And a much K on that's the each percentage we the if you trend you similar. will or last just

Quinn Bolton

you. Great. Understood. Thank

Bernie Blegen

Quinn. Thank you,

Operator

Thank you.

question with Stein SunTrust. comes next from William Our

line Your open. is

Unidentified Analyst

Hey, guys. the taking Will. is had wondering you project. question. for web an masses on Nice I'm John my This for analog just for e-commerce guys Thanks based if update quarter.

Michael Hsing

didn't it I again. in January, it - I see Well, happen. it's it's delayed promised

one. I good first. it a mediocre think launch user to have And rather and - we experience rather than very that a

hopefully promised, several see like so decision that. - several it be And I to you will launch not and And in not postponed times, a do have on the and to now postponed a already, and will in it QX. made don't creditability very I I a it. hard it times I probably I it

Unidentified Analyst

Okay. thank for that. And

Bernie Blegen

Just to add to that.

is credibility I has think turned we lot you point of the - and a results XXXX that when look going forward. typically Michael that at in And secondary

Michael Hsing

I it is buck this area Well, up. one

Bernie Blegen

in manage The a generation far as will e-commerce that XXXX. revenue XXXX result transcript. of zero and We in as expectations the set as

time extent and that we to think have platform, able to feedback customer we're well launch that into I successful quick So it's of the making a incorporate adaptations spend.

Unidentified Analyst

helpful. Very

Michael Hsing

other on we're direction emphasize bucket, the do the I going. that's But really

Unidentified Analyst

Yeah.

Michael Hsing

XXX a we And cause all every months it's low as matter even. those can of - last doesn't doing well. really, delay months, increase that the really in doesn't And customers few without doubt. and the the off fact, testings that website, any whenever be we XXX, customers, the And

Michael Hsing

coming marketing trying over just No and some.

Bernie Blegen

That's right. Yeah.

acquired growth. site, our with I So the I other our it from website the will from - and own other from and acquired be imagine train imagine customers marketing own even And can't these will - effort all can't a put distributors sites. and phenomenal our we it in

Unidentified Analyst

It's really Thank helpful detail. you.

could follow-up, as growth? strength sense the if any you any double are for you patterns, given update Just getting revenue order of the a you give on ordering customer

Bernie Blegen

we're to side that don't want norms compared QX a me. the And what high of into that as level concern meeting it's in inventories result, had going - we we've cautious either on historical very we're And into with and what excuse just keep Yes, we because we going that is far backlog in as in double of demands been that had excess conscience participate high channel, demand to as what have need facilities ordering, keep-up we selling been. very to remained or customer very their QX going. they sit also going a to believe of has where

did channel. because that we we very revenue the were a QX, to we generate increase the able the think the in end in and of So I good days job did

Unidentified Analyst

Very guys. helpful. Thanks

Operator

you. Thank

next from Seymore Ross with Our comes Bank. Deutsche question

open. line Your is now

Jeriel Ong

Ross. Jeriel ask Ong me question. behalf This Thanks of for on is letting

tax you, industry tax ongoing forward. tax the So an rate some it increase presently to semi the you that a get so just than pay tax you reported reported and - their wondering in far higher appears so on rate, going clarity

on So with Could guiding it how guys a your you to tax ongoing X.X% me guys rate rate, your appears derived assume that are you I you basis. guidance? flat, walk an with

Michael Hsing

effort, year free. for thanks These outlook you of at our our lot tax a Well, are and bought look last buildings. we

Bernie Blegen

try let and clarify me So that.

to. Michel pay a the rate referring are That's a we've toll is of had two property, had lower we to we to tax, actually QX. invested there the there. recorded we So the what in Because blended tax components lot which transition of tax, in that

Going the a to the rate, is as to guide that far as that. can but X% guilty offset can XX% [ph] forward, have far as we step as we there how up tax, items discrete some

rate year. in And so from what the as a see result, won't for reported our in XXXX, tax current a change we we

Jeriel Ong

Got And to growth it. driving a like various really north the rate helpful. XQ XX% general, in lighting, from infotainment rate, in cetera was next this and guess, And switching really in automotive, I et of strength XXXX? in question strong strong at think That's XXXX it staying perspective? or what's I over

Michael Hsing

rate it's not fair growth much. it will that Yes, changes the

very me applications Which but exactly couple next segments. in more to think the years them rate. Okay, don't the follow we're be year. segments, similar what expand this It going or lot would of I which to

infotainment more lighting, in we an Now the… out. and lot we have the come and have And said safeties, script, Bernie his as products and a ADAS the will safety also

Bernie Blegen

Battery.

Michael Hsing

management, connectivity. as as well Battery the

Jeriel Ong

Yeah.

Michael Hsing

and have those sampling that some have a amount item percentage or very the little high only very growth cut. expect have And growth dollar no in 'XX. to revenue, a areas in revenue of XXXX, we 'XX And

Bernie Blegen

And point automotive. major the penetration for we've one known more that, getting is geographies all good in

Jeriel Ong

spend. All squeeze clarity last I right. one could just one, the CapEx If on

capacity manufacture for trying You … this space, was or to I'm goods is so it to this space office is workers. more mentioned office some

Bernie Blegen

Everything and facility, for quality everything. for automotive, factories engineering everything. for systems it's [ph] think I and the Well, control so

Michael Hsing

well. as software road down And the

design. Software

Bernie Blegen

Yeah.

Jeriel Ong

you. right. Thank All

Bernie Blegen

Thank you.

Michael Hsing

you. Thank

Operator

from with Thank question you. Svanberg Tore Stifel, comes Nicolaus. [Operator Instructions] Our next

now open. is line Your

Unidentified Analyst

for calling in Hi. This Tore. Jerome is actually

again add to Let my quarter. great me you, congratulations another

automotive the on briefly follow-up to segment. want Just

bit a Can on is, is [ph] what detail connectivity. serial give little more tech is us tech mentioned you stuff or it USB stuff? this piece it You

Bernie Blegen

Michael, Connectivity?

Michael Hsing

the On automotive?

Bernie Blegen

Yes.

Michael Hsing

looking Could you I repeat people. was the question. at

Unidentified Analyst

little Just bit this to? the more of connectivity what incentive portion wanted a related was business

Michael Hsing

sorry, safety I've the these and in And those we [indiscernible] car lot really been those a things safety okay, requirements. to areas and the and such lot of the customers' I the be connected it. are will of And [ph] The the paying attention. for Yes, the cameras, LIDARs cameras as our on connectivity wasn't focused ADAS and are cloud.

Unidentified Analyst

- infrastructure card car it's you more to in versus So of cloud connectivity connectivity a system?

Michael Hsing

both. control control units to - up all cloud joint between that's automotive add development the are the these to In these this the it companies. units, the the all huge and connectivity these we requirements and for capability. receive that's where area focused on and to with Actually sensors And the and all we self-learning larger really

Unidentified Analyst

very That's helpful. Great.

terms of us in question, E and Motion give that you you market, and penetrating how update Second with an can doing medical? terms is also in your how are industrial

Michael Hsing

Motion E people $XX - somewhere we emotion of really do not And product well. to it's integrated… million develop This will the well the fully product business. and $X the actually line me, between year, asked in we and doing other - it's emotion, - Yes, generate million lot okay, a the didn't newer past product integrated at

Bernie Blegen

Modules.

Michael Hsing

XXXX we those in and actually. it's beyond modules The the particularly. many will do receive my belief XXXX well request, and how And

Unidentified Analyst

can ride five-plus you to adjacent do still years, as - on on your be invest the to multi And three may something and there is And the applications. or be Great. DC/DC using expanding process, question markets could new? one you still you to look leveraging intend done in there outlook, you've can you processes just very obviously well longer-term out something - more -

Michael Hsing

good question. Well, that's a

in we call, As - fab. XX-inch move two conference will started the the we said, last we wafer

each lot from XX-inch. we the migrate a the new now X-inch, add we upgrade, a more on And X-inch, So features.

okay, put think even you about microcontrollers not system it. we and a inconceivable, is Wi-Fi so can on now can And integrate it, we

Unidentified Analyst

Very good. Thank you insight. very much this for

Operator

follow-up with a have William Stein do We you. Thank SunTrust. from question

open. line Your now is

William Stein

Thanks ask guys. for letting me follow-up

that have low you guiding in that QX, grow XX% for are we notebooks, multiple and given think given can Purley reason coming growth is XXXX, there XX% shouldn't 'XX you range gaming, growth calendar drivers on like Just year-over-year? the any in on the

Bernie Blegen

offer I the now business guidance it one specific - model We for for But last to a about quarter. four promoting don't been our years. beyond can strategic respond we've is way that

expenses gross XXXX, XX% which with And and full at better than XX We for look margin between you consistent think with came year, growth which revenue what our points XX% is was. we the at little I And XX%, increased map our revenue basis our model model. is The of of introducing are was our XX% line. margin had growth is achieved in what If operating which to - expect concern and model. offer had customers far more associated is what continue outlook some longer-term thing we've as the of done a particularly, we've in along products becoming going do. one as there factors to with to that is, that the risk will a what that sort just clouded new and economy new our

tend are capable year cautionary that to looking there in cushion believe of that when little bit might model, note we're we've at of and build say you be. full So add but factors outlook I our risk might achieving just

William Stein

it. Understood. Got

Michael Hsing

on Let me your comment question.

again XX% - XX%, a to money criticized XX% We not shareholders, XX%. of we Okay. achieved and to that. enough. and some close spend we was I in that the and early XXXX, very In too to had between never by And much got XX% a achieved and model XXXX, like I XX%, grow

XXXX - in an the XXXX figure out some I In said it quarter, me, Okay. the we're not that will it or to XX%. models. achieve asked okay, XX% going first people I be I okay. and made or if did we XXXX, can't announcement,

three from think than X%, can't XX% If the as percentage growth. range. we'll But industrial couple in we will a XX% somewhere of - difference. I industrial predict double triple we be grow Now negative grow growth year well, since a for ask this you to again, okay, the I - times or okay,

Bernie Blegen

will grow XX% that if the that's Yeah. to industry we grows X%, XX%. And

Michael Hsing

Yeah.

William Stein

it. Thank got you. I Yeah.

Michael Hsing

Yeah.

William Stein

are an Analyst just guys year? this housekeeping a Day having question, And you

Bernie Blegen

announced We yet. a haven't But on we it. are date planning

Michael Hsing

We we will delayed our to and plan so, it up, it. in stuck okay, because website -

William Stein

very Thanks Okay. much guys.

Operator

Thank you.

Capital. question Vinh We have KeyBanc from with another John

now - now is line You're open.

John Vinh

Hi. sales taking OpEx of question. growth. year high came in Hey, of Bernie, as for percentage the a kind Thanks end you my last at of

your think in should how You've I as to thinking What's of this of XX% could - and range. XX% about or be terms the we be be OpEx we bit a sense at the how little high-end thinking get the to more sales? about the at range got of XX% growth model, leverage year we a percentage lower that? end of should

Bernie Blegen

I really range, on a include little When to say and manage. XX% can hard R&D XX% does be the that's to focused and which SG&A, litigation, not

in this out. full big going that as look we make launch the for So as really - to show quarters launch in of beginning to think marketing our the investment a XX% with growth And I revenue we're at finally, to to going and top then in for - to ahead platform, fabs, about earnest in Michael sales are XXXX, On a the beginning as you able Automotive in five got through invest continuing to specific here, particular, word be website and that XX-inch also we've in. we e-commerce my calculations R&D successfully rate. of in the. QA and When some as investment get the to you, drivers our to want mentioned fuel some to six marketing to of year in also that, three revenue that's being the continue well growth be it for QX going QX. far that

want investments and strike at but a these that high and yet, that a will number that us, So have don't I think range. in that make at to end be I to minimum, able firm we and - put of the

Michael Hsing

Yeah. of is about investment. talking Bernie lot But

history, you had never look a spending… wide Okay. in if But our we

Bernie Blegen

Yeah.

Michael Hsing

bracket, a don't never pocket we'll we of XX%, open will And history. more we will so if that. be - it. wide a XX% will XX% - that happen we - And - we don't to MPS see in couple spend beyond that's the I - - probably percent. That's there's so spending have XX%, spend, entire And go

John Vinh

is QSMod again, my just are - the and full about the guys in you've specific you then computing then follow-up you if benefit guiding of avoid a but to kind growth year's And Great. trying specific get uplift, on segment, then your number of Yeah. higher I you've growth ramp. XXXX two to obviously question. there to got the I full think ASPs of versus slightly positively of benefit or gaming consoles higher consumer shares. any on in increased And of the the Purley that XXXX? reason could got think XXXX year's full kind of ramp Is a market a worth you've these segments rates be bias, know

Bernie Blegen

points plus off good much as 'XX for we're a enjoyed well. there, Michael we what that, did percentage responding a if think of the I what job that to that's of expecting couple and of XXXX or at pretty minus saying you look growth profile

Michael Hsing

I and I it down can Well, lot, goes very and it. And growth. very, to up openly by manage it favorite it's and a a gaming, can't topic. want quarters that growth smooth And a couple again. It's then fit next of not comes sustainable and quarter my - a

And there since opportunistic. you for very so lot of is gaming, dollars And mention are made. course, these of a to of be

So few a percentage variations. that's why have we

Bernie Blegen

important we're and limited growth. platforms, it's to very and opportunities offer the gaming are there fully that for to But think but on I the committed gaming,

help positioned we wins long the that and the to so accelerate growth. enjoy to understands there, able sure be have that to term make be are to future that And market able the for design to we benefits of

John Vinh

you. Thank Great.

Operator

you. Thank

Our next Wells comes David question from Wong Fargo. with

open. now is line Your

Amit Chandra

we brought dialing reform? the me are uses question. be Bernie, could in to back Chandra of offshore flows And of U.S. offshore? And for the for majority This share December are in to post should us tax Hi. you Amit cash cash XXXX? onshore expect cash is your versus letting percentage of what your priorities Yes. David. a me for with ask the for what quarter, Thanks

Bernie Blegen

about XX% had was of onshore, So year, at is we the our end of XX% the offshore. cash

us. consider increasing use evaluate tax We for now, specific going quarter, we But we're reform where even the buyback. to of increase a impact even are by other or year this or means took step to continuing and acquisitions up remainder plans around that. we the firmed this opportunities any an perhaps the through new of We shareholder right dividend initial value what the stock to haven't dividends

Amit Chandra

as drive you can Okay. the then a business that about in notebook higher? that expect business high talk maybe Great. end cycles And follow-up, XXXX better product to in your you upcoming

Bernie Blegen

say that has far lot good prospects with. at of of And to do looking a be. the the the adoption. as very designed been I'd notebook customer and unit various And Yeah, we've volumes what scenarios that a could we're we have as timing couple that with business,

One cancelled which be a was that new you in is be, of supposed the I aware that XXXX. of Cannon believe is the and may it's Lake, design next for called be will things Lake Whiskey opportunity mid to

very, positioned So we I think well there. very feel

are by very the but Intel from good year. a got occurring out We right that adoptions cycle now, have new product that moved

Michael Hsing

are those the favorite way you are are $XXXX of since mentioned, Well, but or price either. generally these value sales Bernie retailing above. notebook low-margin like emphasize high is their $XXXX notebook. and my And And not kind

pay they models the of some And it.

that And appreciate technology, are as our product so they those deliver… we

Bernie Blegen

That we to after. go want

Michael Hsing

Yes.

Amit Chandra

you E-Fuse then opportunities, And in that for talk XXXX? can final one me, for one about Okay. your

Bernie Blegen

but haven't they lower door helpful the we that what else us been able had. to very to is tends open Sure. content, for opportunities E-Fuse for dollar being be wise

Michael Hsing

or area about server about the talking area? talking you all Are

Bernie Blegen

Broadly.

Amit Chandra

Yes, broadly speaking.

Michael Hsing

by margin small all. to adoption customers. lower the that's the in an The just And to the are excited high - all trend very MPS makers. is large about MPS is single the use lies. large product so realize our is the source not more opportunity start tier realized dollar, what and where first we replace fuse, fuse in a are server area And and And become now and very - electronic those blowup some

Bernie Blegen

the an network And at end also here out start opportunity roll well. the There should is that XXXX. communications of to in as

Amit Chandra

Okay, great. gentlemen. Thank very it. you much, Appreciate

Operator

questions queue. further no show I you. in Thank

to Blegen over remarks. Mr. turn for to like would closing I back conference So the

Bernie Blegen

very Thank you much.

again forward for I at thank conference So and to the call. on April. is you first have call, nice conference Thank And quarter likely talking end day. which to you of our look be joining the during you, to us

Operator

conference. your that today's you for Thank very participation. much and gentlemen, conclude you. Ladies does Thank

all may Have a wonderful You day. disconnect.

Monolithic Power Systems (MPWR) 8 Feb 182017 Q4 Earnings call transcript