Power Integrations, Inc. (NASDAQ:POWI) Q4 2023 Results Earnings Conference Call February 9, 2024 4:30 PM ET
Company Participants
Joe Shiffler - Director, Investor Relations
Balu Balakrishnan - Chairman & Chief Executive Officer
Sandeep Nayyar - Chief Financial Officer
Conference Call Participants
Christopher Rolland - Susquehanna Financial Group
David Williams - The Benchmark Company
Ross Seymore - Deutsche Bank
Matt Ramsay - TD Cowen
Tore Svanberg - Stifel
Operator
Thank you for standing by. Welcome to the Power Integrations Q4 Earnings Conference Call.
I would now like to welcome Joe Shiffler, Director of Investor Relations, to begin the call.
Joe Shiffler
Thank you. Good afternoon, everyone. Thanks for joining us. With me on the call today are Balu Balakrishnan, Chairman and CEO of Power Integrations, and Sandeep Nayyar, our Chief Financial Officer.
During the call, we will refer to financial measures not calculated according to GAAP. Non-GAAP measures for the fourth quarter exclude stock-based compensation expenses, amortization of acquisition-related intangible assets and the tax effects of these items. The reconciliation of non-GAAP measures to our GAAP results is included in today's 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, vision, view, forecast, anticipate 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 are discussed in today's press release and in our most recent Form 10-K filed with the SEC on February 7, 2023.
Finally, this call is the property of Power Integrations. Any recording or rebroadcast is expressly prohibited without the written consent of Power Integrations.
Now I'll turn it over to Balu.
Balu Balakrishnan
Thanks, Joe. And good afternoon. As expected, fourth quarter revenues were lower as a result of soft demand and elevated supply chain inventories, and we expect first quarter revenues to be about flat sequentially reflecting these continued headwinds.
However, while channel inventory is still above normal, it fell by more than a week during the quarter as sell-through exceeded sell-in by a considerable margin. In dollar terms, we are at our lowest level of channel inventory in two years, and we expect further decline in Q1.
We are especially encouraged by lower inventories related to the appliance market, which accounts for the bulk of the consumer category. Distribution sell-through for consumer was up sequentially in Q4 and far exceeded sell-in, bringing the channel inventory back to normal in terms of weeks and to the lowest level in eight quarters based on dollars.