Power Integrations' Q4 2024: Contradictions in Segment Growth, GaN Potential, and Currency Impact

These are the key contradictions discussed in Power Integrations' latest 2024 Q4 earnings call, specifically including: Industrial and Consumer Segment Performance, High-Power GaN Market Positioning, GaN Revenue Growth Expectations, and the Impact of the Yen on Margins:



Leadership Transition and Board Appointment:
- Balu Balakrishnan announced his intention to retire as CEO, with a search for a successor underway.
- Gregg Lowe joined the board on February 15, bringing extensive industry experience in analog and power semiconductors.

Revenue Trends and Growth Expectations:
- Revenues were $105 million in Q4, up 18% year-over-year, with full-year revenues at $419 million, down 6% from the prior year.
- Growth in consumer, computer, and industrial categories offset a significant decline in the communications category due to the exit of the China OEM cell phone business.

Segment Performance and Future Growth:
- Consumer category grew over 35%, computer more than 10%, and industrial about 3%, while communications fell over 60%.
- Expects growth in communications driven by 5G rollouts and remaining cell phone business, and increased growth in industrial and consumer categories.

Indian Market Expansion and Infrastructure Investment:
- Success in India, prioritized by the government for domestic product sourcing, and modernization initiatives like electric transportation and broadband.
- Expects growth from initiatives like high-voltage DC transmission, renewables, and traction in the power business.