Power Integrations, Inc. (NASDAQ:POWI) Q3 2022 Earnings Conference Call November 2, 2022 4:30 PM ET
Company Participants
Joe Shiffler – Director-Investor Relations
Balu Balakrishnan – President and Chief Executive Officer
Sandeep Nayyar – Chief Financial Officer
Conference Call Participants
Jeremy Kwan – Stifel
David Williams – The Benchmark Group
Melissa Weathers – Deutsche Bank
Christopher Rolland – Susquehanna
Gus Richard – Northland
Operator
Good afternoon. My name is Dittus, and I will be your conference operator today. At this time, I would like to welcome everyone to the Power Integrations Third Quarter Earnings Call. 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.
Joe Shiffler
Thank you. 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 September 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 Form 10-K filed with the SEC on February 7, 2022.
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. Two quarters ago we called attention to a slowdown in the smartphone market and signs that other markets may begin to fade after the strong demand of the prior two years. Last quarter, we noted that distribution sell-through had in fact slowed across all of our end market categories, likely signaling a broad-based downturn in demand.
We also remind that investors that PI has historically been among the first in our industry to experience cyclical and macro driven slowdowns. The summer slowdown has given way to a more rapid deterioration in the business environment over the past couple of months. End demand appears to have declined significantly, and distribution sell-through has continued to slow, particularly in our consumer category, which is about a third of our business and is dominated by appliances.