SAN JOSE, Calif., April 28 /PRNewswire-FirstCall/ -- Monolithic Power Systems (MPS) (Nasdaq: MPWR), a leading fabless manufacturer of high-performance analog and mixed-signal semiconductors, today announced financial results for the quarter ended March 31, 2009.

The results for the quarter ended March 31, 2009 are as follows:

• Net revenues of $29.3 million, down 17.2% from $35.4 million in the first quarter of 2008 and down 15.5% sequentially from $34.7 million in the fourth quarter of 2008
• Gross margin of 57.6%, compared to 63.2% in the first quarter of 2008 and 58.0% in the fourth quarter of 2008
• GAAP operating expenses of $18.0 million, including $15.9 million for research and development and selling, general and administrative expenses, which includes $3.3 million for stock-based compensation, and $2.0 million for patent litigation expenses
• Non-GAAP(1) operating expenses of $14.6 million, excluding $3.3 million for stock-based compensation
• GAAP net loss of $0.7 million, with GAAP loss per share of $0.02 per diluted share
• Non-GAAP(1) net income of $2.3 million, or $0.06 per diluted share, excluding stock-based compensation and related tax effects

'In the second half of the quarter, we saw increased turns activities. As a result, our Q1 revenue was better than we expected,' said Michael Hsing, chief executive officer and founder of MPS. 'We are still cautiously optimistic about the next quarter. However, MPS is always ready for fast changing environments either in up or down markets. The last two quarters proved that. Despite a significant reduction in product demand, MPS will continue to focus on generating cash and delivering profits.'

Business Outlook

The following are MPS' financial targets for the second quarter ending June 30, 2009:

• Revenues in the range of $36.0 million to $40.0 million
• Gross margin slightly below the lower end of the company's target range of 60% to 63%
• Research and development and selling, general and administrative expenses between $17.5 million and $19.8 million. Non-GAAP(1) research and development and selling, general and administrative expenses between $14 million and $16 million. This excludes an estimate of stock-based compensation expense in the range of $3.5 million to $3.8 million
• Litigation expense in the range of $2.3 million to $2.7 million

(1) Non-GAAP net income, non-GAAP operating expenses and non-GAAP research and development and selling, general and administrative expense differ from net income, operating expenses, and research and development and selling, general and administrative expense determined in accordance with GAAP (Generally Accepted Accounting Principles in the United States). Non-GAAP net income for the quarter ended March 31, 2009 and 2008 excludes the effect of stock-based compensation expense and their related tax effects. Non-GAAP operating expenses for the quarter ended March 31, 2009 and 2008 exclude the effect of stock-based compensation expense. Projected non-GAAP research and development and selling, general and administrative expenses exclude the effect of stock-based compensation expense. A schedule reconciling these amounts is included in this news release. Non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. MPS utilizes both GAAP and non-GAAP financial measures to assess what it believes to be its core operating performance and to evaluate and manage its internal business and assist in making financial operating decisions. MPS believes that the inclusion of non-GAAP financial measures, together with GAAP measures, provides investors with an alternative presentation useful to investors' understanding of MPS' core operating results and trends. Additionally, MPS believes that the inclusion of non-GAAP measures, together with GAAP measures, provides investors with an additional dimension of comparability to similar companies. However, investors should be aware that non-GAAP financial measures utilized by other companies are not likely to be comparable in most cases to the non-GAAP financials measures used by MPS.

Conference Call

MPS plans to conduct a management teleconference covering its quarter ended March 31, 2009 results at 2:00 p.m. PT / 5:00 p.m. ET today, April 28, 2009. To access the conference call and following replay, go to http://ir.monolithicpower.com and click the webcast link. From this site, you can listen to the teleconference, assuming that your computer system is configured properly. In addition to the webcast replay, which will be archived for all investors for one year on the MPS website, a phone replay will be available for seven days after the live call at 617-801-6888, code number 30727222. This press release and any other information related to the call will also be posted on the website.