Monolithic Power rises on $640 mln share buyback, in-line results

Monolithic Power Systems

30/10/2023 21:02

Oct 30 (Reuters) - Monolithic Power Systems  MPWR.O 
said it would buy back up to $640 million-worth company shares
and reported largely in-line results on Monday, sending its
stock up 8% in trading after the bell.
    Kirkland, Washington-based Monolithic, which sells power
circuits and other semiconductor products, is seeing demand
scale as enterprises upgrade their cloud and network
infrastructure to support new AI functionality and the growing
Internet user-base.
    The new buyback plan will be valid through October 2026.
Monolithic Power's shares have gained 14.3% compared with the
22.2% rise in technology-heavy Nasdaq Composite  .IXIC  year to
date. The company had $1 billion in cash and equivalents as of
September.
    In the current quarter ending Dec. 31, the company sees
revenue between $442 million and $462 million. The midpoint of
the range came in slightly below the $451.7 million estimate,
according to LSEG data.
    Revenue decreased 4% to $474.9 million in the most-recent
quarter ended Sept. 30, compared with analysts' consensus
estimate of $474.1 million. 
    It earned $3.08 per share, slightly higher than the estimate
of $3.07.
    Sales to storage and computing customers, the largest
end-market for Monolithic Power, grew 15% to $129.5 million. Its
second-largest revenue line, enterprise data, jumped over 30% to
$98.9 million.

 (Reporting by Yuvraj Malik in Bengaluru; Editing by Krishna
Chandra Eluri)
 ((yuvraj.malik@thomsonreuters.com;))