Power Integrations, Inc. reported a decline in net revenues for the fiscal year ending December 31, 2024, totaling $419.0 million, down from $444.5 million in 2023. The decrease was primarily attributed to reduced sales in the communications sector, which faced increased competition from Chinese-made components in smartphone chargers. Despite this, revenues from consumer, industrial, and computer categories saw growth compared to the previous year. The company's gross profit for 2024 was $224.8 million, representing a gross margin of 54%, an increase from 52% in 2023, driven by favorable exchange rates and improved manufacturing efficiencies.
In terms of operational changes, Power Integrations made a strategic acquisition in July 2024, purchasing the assets of Odyssey Semiconductor for $9.52 million. This acquisition is expected to enhance the company's capabilities in high-power gallium-nitride (GaN) technology. The company also introduced new products, including the BridgeSwitch-2 motor-driver ICs, which extend the power range for motor applications. As of December 31, 2024, Power Integrations employed 865 full-time personnel, with a notable increase in headcount attributed to the acquisition of Odyssey.
The company’s customer base remains concentrated, with its top ten customers accounting for approximately 79% of net revenues in 2024, consistent with the previous year. International sales represented about 98% of total revenues, with significant contributions from the Asia-Pacific region, particularly China and India. The company continues to face challenges related to supply chain dynamics and fluctuating demand, which have been exacerbated by macroeconomic conditions, including inflation and geopolitical tensions.
Looking ahead, Power Integrations anticipates that its growth will depend on its ability to penetrate additional markets and expand its product offerings, particularly in the electric vehicle sector. The company has expressed confidence in its strategic initiatives, including leveraging its proprietary GaN technology to address higher-power applications. However, it remains cautious about potential risks, including competition and market volatility, which could impact future performance.
Overall, Power Integrations is navigating a complex landscape marked by both challenges and opportunities, with a focus on innovation and market expansion to drive future growth.
About POWER INTEGRATIONS INC
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