Power Integrations (NASDAQ:POWI) reported first-quarter revenue of $108.3 million, a 3% increase year-over-year and a 5% sequential growth. The revenue surge was driven primarily by a 23% rise in industrial sales compared to the previous year, despite a decline in consumer sales linked to last year’s inventory adjustments.
Looking ahead, CFO Nancy Erba forecasts second-quarter revenue between $115 million and $120 million, an expected sequential increase of 8.5%. The company anticipates a gross margin of 54% to 55%, reflecting improvements from manufacturing efficiencies and higher volume. Power Integrations’ strategic focus includes capturing market opportunities in automotive, data centers, and auxiliary power supply systems, aiming for $100 million in automotive revenue by 2029.
Additionally, the company generated $20 million in operating cash flow and $18 million in free cash flow during the quarter. Inventory levels decreased, with days on hand declining by 21 days to 292, as the company targets reducing this figure below 200 days.
5 Stocks Our Experts Predict Could Double In the Next Year
By submitting your email, you'll also get a free pivot & flow membership. A free daily market overview. You can unsubscribe at any time.
