SAN JOSE, Calif., Dec. 15 /PRNewswire-FirstCall/ -- Monolithic Power Systems (MPS) (Nasdaq: MPWR), a leading fabless manufacturer of high-performance analog and mixed-signal semiconductors, today announced that it now expects revenue for the fourth quarter to be in the range of $34 million to $35 million. The company's previous guidance was for fourth quarter revenue in the range of $39 million to $43 million.

'Since the beginning of November, MPS has seen a sharp decline in demand across all segments, reflecting the weak macroeconomic environment worldwide,' said Michael Hsing, chief executive officer and founder of MPS. 'It is very difficult to forecast in the current conditions, but our best estimate for fourth quarter revenue is between 34 and 35 million dollars, assuming there are no cancellations or pull-ins. Despite the current economic environment, MPS is still a very profitable company. I firmly believe the Company can meet the challenges, control spending, and be a much stronger company coming out of the recession.'

Updated Business Outlook

The following are MPS' updated financial targets for the fourth quarter ending December 31, 2008:

    -- Revenues in the range of $34.0 million to $35.0 million.
    -- Gross margin in the lower end of the company's target range of 60% to
       63%.

Safe Harbor Statement

This press release contains forward-looking statements regarding targeted revenues and gross margins for the three months ending December 31, 2008, and MPS' belief that the company can meet the challenges, control spending and be a much stronger company coming out of the recession. These statements are not historical facts or guarantees of future performance or events, are based on current expectations, estimates, beliefs, assumptions, goals, and objectives, and involve known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from the results expressed by these statements. Readers of this press release are cautioned not to place undue reliance on any forward-looking statements. Current uncertainty in global economic conditions poses a risk to the overall economy as consumers and businesses may defer purchases in response to tighter credit and negative financial news, which could adversely affect product demand. Consequently, demand could be different from MPS' expectations due to changes in business and economic conditions, including conditions in the credit markets that could affect consumer confidence; changes in order patterns including order cancellations; and changes in the level of inventory at customers.