Monolithic Power Systems Inc (MPWR)

Business Description

Monolithic Power Systems, Inc. (MPS) is a fabless global company that designs, develops, and markets high-performance, semiconductor-based power electronics solutions. The company focuses on providing innovative power solutions across various markets, including storage and computing, enterprise data, automotive, industrial, communications, and consumer markets . MPS's product offerings are primarily divided into two main families: DC to DC products and Lighting Control products . The company's revenue is predominantly derived from sales to customers outside North America, with a significant portion coming from Asia .

DC to DC Products - Develops integrated circuits used for voltage conversion and control in a wide range of electronic systems, serving as the most significant contributor to the company's revenue.
Lighting Control Products - Provides solutions for backlighting and general illumination, contributing to the company's offerings in lighting applications.

Key Metrics

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Executive Team

Name	Position	Start Date	Short Bio
Michael Hsing	President, Chief Executive Officer, and Director	Aug 1997	Michael Hsing is the President, Chief Executive Officer, and Director of Monolithic Power Systems (MPS). He founded MPS in August 1997 and has served in these roles since the company's inception. Prior to founding MPS, Mr. Hsing was a Senior Silicon Technology Developer at several analog integrated circuit companies, where he developed and patented key technologies that set new standards in the power electronics industry. He holds a B.S.E.E. from the University of Florida .
Bernie Blegen	Executive Vice President and Chief Financial Officer	Jul 2016	Bernie Blegen has served as the Executive Vice President and Chief Financial Officer of Monolithic Power Systems, Inc. since July 2016. He is responsible for finance, accounting, tax, treasury, and investor relations. Prior to this role, from August 2011 to June 2016, Mr. Blegen served as the Corporate Controller at MPS. Before joining MPS, he held several executive finance and accounting positions at other publicly traded technology companies, including Xilinx, Inc. and Credence Systems .
Deming Xiao	Executive Vice President and President of Asia Operations	Jan 2008	Deming Xiao has served as the Executive Vice President and President of Asia Operations at Monolithic Power Systems (MPS) since January 2008. He joined MPS in May 2001 and has held several executive positions, including Foundry Manager and Senior Vice President of Operations. Before joining MPS, he was an Engineering Account Manager at Chartered Semiconductor Manufacturing, Inc. from June 2000 to May 2001, and prior to that, he spent six years as Manager of Process Integration Engineering at Fairchild Imaging Sensors .
Maurice Sciammas	Senior Vice President of Worldwide Sales and Marketing	2007	Maurice Sciammas has served as the Senior Vice President of Worldwide Sales and Marketing at Monolithic Power Systems (MPS) since 2007. He joined MPS in July 1999 and initially served as Vice President of Products and Vice President of Sales (excluding greater China) before being appointed to his current position. Prior to joining MPS, he was the Director of IC Products at Supertex from 1990 to 1999 and has also held positions at Micrel, Inc. Maurice Sciammas holds a B.S.E.E. degree from San Jose State University .
Saria Tseng	Executive Vice President, Strategic Corporate Development, General Counsel, and Corporate Secretary	2004	Saria Tseng has served as the Executive Vice President, Strategic Corporate Development, General Counsel, and Corporate Secretary at Monolithic Power Systems, Inc. (MPS). She joined the company in 2004 as Vice President, General Counsel, and Corporate Secretary and took on the additional role of Vice President, Strategic Corporate Development in 2009. Before joining MPS, Ms. Tseng was Vice President and General Counsel at MaXXan Systems, Inc. from 2001 to 2004. She has also worked as an attorney at Gray Cary Ware & Freidenrich, LLP and Jones, Day, Reavis & Pogue .

Questions to Ask Management

With your recent disclosure of a customer exceeding 10% of revenue, can you clarify whether this customer concentration is expected to continue, and what risks it might pose to your business strategy?
Given that the Street is projecting your Enterprise Data segment to reach nearly $1.1 billion in revenue next year, do you believe this expectation is reasonable amidst the competitive pressures and potential pricing challenges you've mentioned?
Considering that internal inventory days have decreased significantly while channel inventory remains lean, is there a risk that some of your recent growth is driven by inventory fill, and how are you managing inventory levels to prevent future shortages or overages?
With increasing competition in the AI power market, including aggressive pricing strategies from Chinese suppliers, are you experiencing any pricing pressure, and what measures are you taking to sustain your market position and margins?
Although you've invested in expanding your data converters product line, revenue from this segment remains small; what challenges are you facing in gaining market share, and how do you plan to accelerate growth in this area?

Program Details	Program 1
Approval Date	October 2023
End Date/Duration	October 29, 2026
Total additional amount	$640 million
Remaining authorization	$622.1 million as of September 30, 2024
Details	Manage capital structure and return value to shareholders. Funded from working capital and cash repatriation. No obligation to purchase specific shares.

Competitors

Competitors mentioned in the company's latest 10K filing.

Analog Devices
Infineon Technologies
NXP Semiconductors
ON Semiconductor
Power Integrations
Renesas Electronics
ROHM Semiconductor
Semtech
STMicroelectronics
Texas Instruments

These companies are mentioned as primary competitors in the analog and mixed-signal semiconductor industry, which is highly competitive and characterized by decreasing average selling prices over the life of a product .

Auditor

Name	Start Date	End Date	Reason for Change
Ernst & Young LLP	2019	Present	Current auditor.
Deloitte & Touche LLP	N/A	March 20, 2019	The Audit Committee decided to appoint a new independent registered public accounting firm. There were no disagreements or reportable events.

Latest news

Recent developments and announcements about MPWR.

Financial Reporting

Auditor Changes

Mar 22, 2019, 12:00 AM

Monolithic Power Systems, Inc. (MPWR) has changed its auditor. On March 18, 2019, the Audit Committee approved the appointment of Ernst & Young LLP (EY) as the new independent registered public accounting firm for the year ending December 31, 2019. Consequently, Deloitte & Touche LLP (Deloitte) was dismissed from this role. The company notified Deloitte of this change on March 20, 2019. Deloitte's reports on the company's financial statements for the years ended December 31, 2018, and December 31, 2017, were not adverse or qualified .