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© grzegorz kula dreamstime.com Components | October 24, 2012

Power Integrations affected by SouthSemi closure

Power Integrations said it will incurr a 3Q charge due to the expected closure of SemiSouth Laboratories. However, 3Q revenue is still expected to be within the previously projected range.
Power Integrations's financial results for the quarter ended September 30, 2012 will include a pre-tax charge of approximately USD 60 million, resulting in a net loss on a GAAP basis. The charge stems from the expected closure of SemiSouth Laboratories, a Mississippi-based developer of silicon-carbide power devices. Power Integrations had announced a strategic partnership with SemiSouth in 2010.

Commented Balu Balakrishnan, president and CEO of Power Integrations: “The expected closure of SemiSouth is disappointing, but reflects the challenges and risks inherent in the quest for disruptive technologies. Our strategic direction remains unchanged, and we continue to invest in promising technologies to expand our market opportunity within the realm of high-voltage power conversion.”

Power Integrations further noted that it expects its third-quarter revenues to be between USD 77 - 79 million, compared with its previous forecast of USD 76 - 82 million. Non-GAAP gross margin for the quarter is expected to be between 52 - 53%, compared with the prior forecast of 51 - 52%.

Operating expenses excluding the above-mentioned charge are expected to be consistent with the company’s prior forecast.

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