SAN JOSE, Calif. - Power Integrations (NASDAQ:POWI), a prominent player in high-voltage integrated circuits for energy-efficient power conversion with a market capitalization of $3.55 billion, announced the appointment of Gregg Lowe to its board of directors effective February 15, 2025. According to InvestingPro data, the company maintains strong financial health with a current ratio of 10.01, indicating robust liquidity. For investors seeking deeper insights, InvestingPro offers comprehensive analysis with over 10 additional key tips about POWI's financial position. Lowe, known for his extensive experience in the semiconductor industry, brings a wealth of knowledge from his previous leadership roles.
Most recently, Lowe served as the CEO of Wolfspeed (NYSE:WOLF), Inc. from 2017 to 2024, where he led the company's transformation into a dedicated silicon-carbide solutions provider for high-power applications. His tenure at Wolfspeed followed a significant stint as CEO of Freescale Semiconductor, which he guided until its merger with NXP Semiconductors (NASDAQ:NXPI) in 2015. Lowe's (NYSE:LOW) career also includes a 27-year tenure at Texas Instruments (NASDAQ:TXN), where he held various leadership positions, culminating as senior vice president and manager of the analog business. During this time, he played a pivotal role in the acquisition of National Semiconductor.
In addition to his new role at Power Integrations, Lowe currently serves on the boards of Silicon Labs and North Carolina A&T University and holds the position of chairman of the board at the Rock and Roll Hall of Fame Museum. His academic credentials include a Bachelor of Science degree in electrical engineering from the Rose-Hulman Institute of Technology and participation in the Stanford Executive Program at Stanford University.
Balu Balakrishnan, chairman and CEO of Power Integrations, expressed enthusiasm about Lowe's appointment, citing his "decades of experience in analog and power semiconductors" and his "expansive knowledge of the sales and distribution landscape." Balakrishnan also highlighted Lowe's "deep customer relationships in key end markets," including automotive and industrial, which are expected to be beneficial for Power Integrations' strategic direction.
Power Integrations is recognized for its innovative semiconductor technologies that play a crucial role in the clean-power ecosystem. Their products facilitate renewable energy generation and efficient power transmission and consumption across a broad range of applications. The company has demonstrated consistent shareholder returns, maintaining dividend payments for 17 consecutive years with a current yield of 1.34%. InvestingPro subscribers can access the detailed Pro Research Report, which provides comprehensive analysis of POWI's market position among 1,400+ top US stocks. This appointment reflects the company's commitment to leadership with a deep understanding of the industry, aiming to strengthen its market position in the evolving high-voltage power conversion sector. With a gross profit margin of 53% and revenue of $403.23 million in the last twelve months, the company maintains a solid market presence. According to InvestingPro analysis, while five analysts have recently revised their earnings expectations downward, the company is expected to remain profitable this year. Discover more detailed insights and valuation metrics by accessing the full InvestingPro Research Report.
In other recent news, Power Integrations reported a 9% sequential revenue increase for the third quarter, reaching $116 million, along with non-GAAP earnings of $0.40 per share. The company's gross margin also saw an improvement, registering at 55.1%. Despite anticipated softness in the appliance market, Power Integrations is projecting a 17% year-over-year revenue growth for the fourth quarter, with revenue forecasts standing at $105 million. The company's focus on Gallium Nitride (GaN) technology and high-power applications is expected to drive growth in the coming years.
Analysts note that the firm's strategic shift towards GaN technology, which is predicted to represent up to 20% of sales within the next two to three years, positions Power Integrations well for future growth. The company has also announced a 5% dividend increase and a $50 million share repurchase program. Despite the soft demand in the appliance market, which accounts for nearly 40% of sales, and potential declines in other segments next quarter, the company remains optimistic about its growth projections for 2025.
Recent developments include significant design wins in high voltage DC projects expected to generate over $5 million annually and achievements in EV applications within the automotive sector. These are anticipated to contribute to the company's growth in 2025. However, the company is also contending with elevated inventory levels in the consumer market and a mismatch between sell-in and sell-through in this segment.
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