Power Integrations, Inc. (NASDAQ:POWI) Q1 2024 Earnings Conference Call May 7, 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 International Group
David Williams - Benchmark Company
Matt Ramsay - TD Cowen
Operator
Thank you for standing by. My name is Meg, and I will be here conference operator today. At this time, I would like to welcome everyone to the Power Integrations Q1 Earnings Call. All lines have been placed on mute to prevent any background noise. After speaker’s remarks there will be a question-and-answer session. [Operator Instructions]
I would now like to turn the call over to Joe Shiffler, Director of Investor Relations. Please go.
Joe Shiffler
Thank you, Meg. Good afternoon. Thanks everyone 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 this call, we will refer to financial measures not calculated according to GAAP. Non-GAAP measures exclude stock-based compensation expenses, amortization of acquisition-related intangible assets and the tax effects of these items. A 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, 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 12, 2024. 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 it over to Balu.
Balu Balakrishnan
Thanks, Joe, and good afternoon. Our first quarter results were on target with revenues of $92 million, non-GAAP gross margin of 53% and non-GAAP earnings of $0.18 per share. Channel inventories fell by more than a week and a half during the quarter and the improvement in bookings that began in December has continued through the first quarter and the month of April.
We expect revenues in the second quarter to be in the range of $105 million plus or minus €5 million. That would be a seasonal increase of 15% at the midpoint. We also expect a further increase in gross margin, driven by the favorable dollar exchange rate and higher back-end manufacturing volumes.