Power Integrations, Inc. (NASDAQ:POWI) Q4 2022 Earnings Conference Call February 6, 2023 4:30 PM ET
Company Participants
Joe Shiffler - Director, Investor Relations & Corporate Communications
Balu Balakrishnan - President and Chief Executive Officer
Sandeep Nayyar - Vice President of Finance and Chief Financial Officer
Conference Call Participants
Ross Seymore - Deutsche Bank
Tore Svanberg - Stifel
David Williams - The Benchmark Company
Christopher Rolland - Susquehanna
Ethan Potasnick - Cowen and Company
Gus Richard - Northland
Operator
Good day, everyone, and welcome to the Power Integrations Fourth Quarter Earnings Call. Today's call is being recorded. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. [Operator Instructions]
I would now like to turn the conference over to Joe Shiffler, Director of Investor Relations. Please go ahead, sir.
Joe Shiffler
Thank you, Lisa. Good afternoon, everyone. Thanks for joining us. With me on the call today are Balu Balakrishnan, President and CEO of Power Integrations; and Sandeep Nayyar, our Chief Financial Officer.
During this call, we will refer to financial measures not calculated according to GAAP. Non-GAAP measures for the December quarter exclude stock-based compensation expenses, amortization of acquisition related and tangible assets, and the tax effects of these items. The reconciliation of non-GAAP measures to our GAAP results is included in our press release.
Our discussion today, including the Q&A session, will include forward-looking statements denoted by words like will, would, believe, should, expect, outlook, plan, forecast, anticipate, prospects and similar expressions that look toward future events or performance. Such statements are subject to risks and uncertainties that may cause actual results to differ materially from those projected or implied. Such risks and uncertainties are discussed in today’s press release and in our most recent Form 10-K filed with the SEC on February 7 of last year.
Finally, this call is the property of Power Integrations, and any recording or rebroadcast is expressly prohibited without the written consent of Power Integrations.
Now I’ll turn the call over to Balu.
Balu Balakrishnan
Thanks Joe, and good afternoon. Fourth quarter revenues were $125 million, in line with our guidance and down 22% sequentially, reflecting the downturn in the semiconductor industry. We expect a further sequential decline in the March quarter as end demand continues to be soft and distribution inventories remain elevated.
For those less familiar with our history, we are typically among the first semiconductor companies to see a downturn because our products are used in power supplies, which are often built in advance of end products. This dynamic can also result in large cyclical fluctuations than our peers because many of our customers are suppliers to OEMs, creating an additional layer of inventory between us and the end market. Of course, these dynamics apply to both ends of the cycle. And while we tend to underperform our peers at the front end of a down cycle, we tend to outperform on the other side.