POWER INTEGRATIONS INC [POWI] Filings

10-Q 1 powi-20240630x10q.htm 10-Q POWI - Q2'24 Form 10-Q

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended June 30, 2024

☐Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from ______ to ______

Commission File Number 000-23441

POWER INTEGRATIONS, INC.

(Exact name of registrant as specified in its charter)


Delaware		94-3065014
(State or Other Jurisdiction of Incorporation or Organization)		(I.R.S. Employer Identification No.)


5245 Hellyer Avenue
San Jose,	California	95138
(Address of Principal Executive Offices)		(Zip Code)

(408) 414-9200

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock	POWI	The Nasdaq Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer	☒	Accelerated Filer	☐
Non-accelerated Filer	☐	Smaller Reporting Company	☐
		Emerging Growth Company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.


Class	Shares Outstanding at August 2, 2024
Common Stock, $0.001 par value	56,829,496

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POWER INTEGRATIONS, INC.

TABLE OF CONTENTS

		Page

PART I. FINANCIAL INFORMATION

Item 1.	Financial Statements

	Condensed Consolidated Balance Sheets as of June 30, 2024 and December 31, 2023 (Unaudited)	4

	Condensed Consolidated Statements of Income for the three and six months ended June 30, 2024 and 2023 (Unaudited)	5

	Condensed Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2024 and 2023 (Unaudited)	6

	Condensed Consolidated Statements of Stockholders’ Equity for the three and six months ended June 30, 2024 and 2023 (Unaudited)	7

	Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2024 and 2023 (Unaudited)	8

	Notes to Unaudited Condensed Consolidated Financial Statements	9

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	22

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	30

Item 4.	Controls and Procedures	30

PART II. OTHER INFORMATION		31

Item 1.	Legal Proceedings	31

Item 1A.	Risk Factors	31

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	32

Item 5.	Other Information	32

Item 6.	Exhibits	33

SIGNATURES		35

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Cautionary Note Regarding Forward-Looking Statements

This Quarterly Report on Form 10-Q includes a number of forward-looking statements that involve many risks and uncertainties. Forward-looking statements are identified by the use of the words “would,” “could,” “will,” “may,” “expect,” “believe,” “should,” “anticipate,” “if,” “future,” “intend,” “plan,” “estimate,” “potential,” “target,” “seek,” or “continue” and similar words and phrases, including the negatives of these terms, or other variations of these terms, that denote future events. These statements reflect our current views with respect to future events and our potential financial performance and are subject to risks and uncertainties that could cause our actual results and financial position to differ materially and/or adversely from what is projected or implied in any forward-looking statements included in this Quarterly Report on Form 10-Q. These factors include, but are not limited to: if demand for our products continues to decline in our major end markets, our net revenues will decline further; we do not have long-term contracts with any of our customers and if they fail to place, or if they cancel or reschedule orders for our products, our operating results and our business may suffer; our products are sold through distributors, which limits our direct interaction with our end customers, therefore reducing our ability to forecast sales and increasing the complexity of our business; if our products do not penetrate additional markets, our business will not grow as we expect; intense competition in the high-voltage power supply industry may lead to a decrease in our average selling price and reduced sales volume of our products; we depend on third-party suppliers to provide us with wafers for our products, and if they fail to provide us sufficient quantities of wafers, our business may suffer; if we are unable to adequately protect or enforce our intellectual property rights, we could lose market share, incur costly litigation expenses, suffer incremental price erosion or lose valuable assets, any of which could harm our operations and negatively impact our profitability; and the other risk factors described under the caption “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2023, and in Part I, Item 2 - “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and elsewhere in this Quarterly Report on Form 10-Q. We make these forward-looking statements based upon information available on the date of this Quarterly Report on Form 10-Q, and we expressly disclaim any obligation to update or alter any forward-looking statements, whether as a result of new information or otherwise, except as required by laws.

In addition, statements that “we believe” and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based upon information available to us as of the date of this Quarterly Report on Form 10-Q, and while we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain and investors are cautioned not to unduly rely upon these statements.

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PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

POWER INTEGRATIONS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)



(In thousands)	June 30, 2024		December 31, 2023
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	50,493	$	63,929
Short-term marketable securities		239,985		247,640
Accounts receivable, net		16,372		14,674
Inventories		169,884		163,164
Prepaid expenses and other current assets		23,102		22,193
Total current assets		499,836		511,600
PROPERTY AND EQUIPMENT, net		153,785		164,213
INTANGIBLE ASSETS, net		3,561		4,424
GOODWILL		91,849		91,849
DEFERRED TAX ASSETS		31,640		28,325
OTHER ASSETS		24,089		19,457
Total assets	$	804,760	$	819,868
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable	$	24,831	$	26,390
Accrued payroll and related expenses		13,596		13,551
Taxes payable		827		1,016
Other accrued liabilities		10,970		7,910
Total current liabilities		50,224		48,867
LONG-TERM INCOME TAXES PAYABLE		6,237		6,244
OTHER LIABILITIES		17,557		12,516
Total liabilities		74,018		67,627
COMMITMENTS AND CONTINGENCIES (Notes 11, 12 and 13)
STOCKHOLDERS’ EQUITY:
Common stock		22		23
Additional paid-in capital		—		—
Accumulated other comprehensive loss		(3,189)		(1,462)
Retained earnings		733,909		753,680
Total stockholders’ equity		730,742		752,241
Total liabilities and stockholders’ equity	$	804,760	$	819,868

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

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POWER INTEGRATIONS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)


	Three Months Ended				Six Months Ended
	June 30,				June 30,
(In thousands, except per share amounts)	2024		2023		2024		2023
NET REVENUES	$	106,198	$	123,223	$	197,886	$	229,520
COST OF REVENUES		49,665		60,377		93,573		112,717
GROSS PROFIT		56,533		62,846		104,313		116,803

OPERATING EXPENSES:
Research and development		26,047		24,517		49,272		48,498
Sales and marketing		18,053		17,017		33,775		32,902
General and administrative		10,475		8,671		18,838		17,005
Total operating expenses		54,575		50,205		101,885		98,405
INCOME FROM OPERATIONS		1,958		12,641		2,428		18,398
OTHER INCOME		3,189		2,714		6,691		4,428
INCOME BEFORE INCOME TAXES		5,147		15,355		9,119		22,826
PROVISION FOR INCOME TAXES		298		562		316		1,158
NET INCOME	$	4,849	$	14,793	$	8,803	$	21,668

EARNINGS PER SHARE:
Basic	$	0.09	$	0.26	$	0.15	$	0.38
Diluted	$	0.09	$	0.26	$	0.15	$	0.38

SHARES USED IN PER SHARE CALCULATION:
Basic		56,780		57,355		56,807		57,231
Diluted		56,984		57,669		57,104		57,654

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

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POWER INTEGRATIONS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)


	Three Months Ended				Six Months Ended
	June 30,				June 30,
(In thousands)	2024		2023		2024		2023
Net income	$	4,849	$	14,793	$	8,803	$	21,668
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments, net of $0 tax in each of the three and six months ended June 30, 2024 and 2023		(271)		(548)		(637)		(400)
Unrealized gain (loss) on marketable securities, net of $0 tax in each of the three and six months ended June 30, 2024 and 2023		(317)		(144)		(1,005)		2,028
Amortization of defined benefit pension items, net of tax of ($7) and ($15) in the three and six months ended June 30, 2024, respectively, and ($4) and ($7) in the three and six months ended June 30, 2023, respectively		(42)		(21)		(85)		(41)
Total other comprehensive income (loss)		(630)		(713)		(1,727)		1,587
TOTAL COMPREHENSIVE INCOME	$	4,219	$	14,080	$	7,076	$	23,255

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

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POWER INTEGRATIONS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(Unaudited)


	Three Months Ended				Six Months Ended
	June 30,				June 30,
(In thousands)	2024		2023		2024		2023
Common stock
Beginning balance	$	22	$	23	$	23	$	24
Repurchase of common stock		—		—		(1)		(1)
Ending balance		22		23		22		23

Additional paid-in capital
Beginning balance		—		8,780		—		—
Common stock issued under employee stock plans		—		—		2,691		3,098
Repurchase of common stock		(11,035)		(4,312)		(20,140)		(5,998)
Stock-based compensation		11,035		6,752		17,449		14,120
Ending balance		—		11,220		—		11,220

Accumulated other comprehensive loss
Beginning balance		(2,559)		(5,044)		(1,462)		(7,344)
Other comprehensive income (loss)		(630)		(713)		(1,727)		1,587
Ending balance		(3,189)		(5,757)		(3,189)		(5,757)

Retained earnings
Beginning balance		740,715		758,543		753,680		762,536
Net income		4,849		14,793		8,803		21,668
Repurchase of common stock		(303)		—		(5,838)		—
Payment of dividends to stockholders		(11,352)		(10,893)		(22,736)		(21,761)
Ending balance		733,909		762,443		733,909		762,443

Total stockholders’ equity	$	730,742	$	767,929	$	730,742	$	767,929

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

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POWER INTEGRATIONS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)


	Six Months Ended
	June 30,
(In thousands)	2024		2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	8,803	$	21,668
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		17,106		17,653
Amortization of intangibles		863		1,086
Loss on disposal of property and equipment		8		22
Stock-based compensation expense		17,449		14,120
Amortization of premium (accretion of discount) on marketable securities		(909)		419
Deferred income taxes		(3,482)		(2,782)
Increase (decrease) in accounts receivable allowance for credit losses		326		(454)
Change in operating assets and liabilities:
Accounts receivable		(2,024)		(10,787)
Inventories		(6,720)		(14,321)
Prepaid expenses and other assets		2,072		(7,241)
Accounts payable		(117)		8,813
Taxes payable and accrued liabilities		161		(5,430)
Net cash provided by operating activities		33,536		22,766

CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment		(8,510)		(7,211)
Purchases of marketable securities		(77,830)		(110,810)
Proceeds from sales and maturities of marketable securities		85,392		98,641
Net cash used in investing activities		(948)		(19,380)

CASH FLOWS FROM FINANCING ACTIVITIES:
Issuance of common stock under employee stock plans		2,691		3,098
Repurchase of common stock		(25,979)		(5,999)
Payments of dividends to stockholders		(22,736)		(21,761)
Net cash used in financing activities		(46,024)		(24,662)

NET DECREASE IN CASH AND CASH EQUIVALENTS		(13,436)		(21,276)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD		63,929		105,372
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	50,493	$	84,096

SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
Unpaid property and equipment	$	1,306	$	2,713

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid for income taxes, net	$	4,498	$	11,653

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

POWER INTEGRATIONS, INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1. BASIS OF PRESENTATION:

The condensed consolidated financial statements include the accounts of Power Integrations, Inc., a Delaware corporation (the “Company”), and its wholly owned subsidiaries. Significant intercompany accounts and transactions have been eliminated in consolidation.

While the financial information furnished is unaudited, the condensed consolidated financial statements included in this report reflect all adjustments (consisting only of normal recurring adjustments) that the Company considers necessary for the fair presentation of the results of operations for the interim periods covered and the financial condition of the Company at the date of the interim balance sheet in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The results for interim periods are not necessarily indicative of the results for the entire year. The condensed consolidated financial statements should be read in conjunction with the Company’s consolidated financial statements and the notes thereto for the year ended December 31, 2023, included in its Form 10-K filed on February 12, 2024, with the Securities and Exchange Commission.

2. SIGNIFICANT ACCOUNTING POLICIES AND RECENT ACCOUNTING PRONOUNCEMENTS:

Significant Accounting Policies and Estimates

No material changes have been made to the Company’s significant accounting policies disclosed in Note 2, Significant Accounting Policies and Recent Accounting Pronouncements, of the Company’s financial statements set forth in Item 8 of the Company’s Annual Report on Form 10-K, filed on February 12, 2024, for the year ended December 31, 2023.

Recent Accounting Pronouncements

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”), which is intended to improve reportable segment disclosure requirements and expand public entities’ segment disclosures in the annual and interim financial statements. The amendment will require disclosure of significant segment expenses that are regularly provided to the chief operating decision maker and within each reported measure of segment profit or loss, an amount and description of its composition for other segment items and interim disclosures of a reportable segment’s profit or loss and assets. All disclosure requirements of ASU 2023-07 are required for entities with a single reportable segment. The Company is required to adopt the amendments in fiscal year 2024 for annual and retrospective reporting periods and in the first quarter of fiscal year 2025 for all interim and retrospective reporting periods; with early adoption permitted. The Company does not expect the amendment to have a material impact on its consolidated financial statements upon adoption.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”), which modifies the rules on income tax disclosures to require entities to disclose (1) specific categories in the rate reconciliation, (2) the income or loss from continuing operations before income tax expense or benefit (separated between domestic and foreign) and (3) income tax expense or benefit from continuing operations (separated by federal, state and foreign). ASU 2023-09 also requires entities to disclose their income tax payments to international, federal, state and local jurisdictions, among other changes. The guidance is effective for annual periods beginning after December 15, 2024. Early adoption is permitted for annual financial statements that have not yet been issued or made available for issuance. ASU 2023-09 should be applied on a prospective basis, but retrospective application is permitted. The Company does not expect the amendment to have a material impact on its consolidated financial statements upon adoption.

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POWER INTEGRATIONS, INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

3. COMPONENTS OF THE COMPANY’S CONDENSED CONSOLIDATED BALANCE SHEETS:

Accounts Receivable


	June 30,		December 31,
(In thousands)	2024		2023
Accounts receivable trade	$	46,796	$	53,147
Allowance for ship and debit		(27,139)		(36,017)
Allowance for stock rotation and rebate		(2,278)		(1,775)
Allowance for credit losses		(1,007)		(681)
Total	$	16,372	$	14,674

The Company maintains an allowance for estimated credit losses resulting from the inability of customers to make required payments. This allowance is established using estimates formulated by the Company’s management based upon factors such as the composition of the accounts receivable aging, historical losses, changes in payment patterns, customer creditworthiness and current economic trends. Receivables determined to be uncollectible are written off and deducted from the allowance.


	Allowance for Credit Losses
	Three Months Ended				Six Months Ended
	June 30,				June 30,
(In thousands)	2024		2023		2024		2023
Beginning balance	$	(844)	$	(681)	$	(681)	$	(1,135)
Provision for credit loss expense		(163)		(388)		(847)		(827)
Receivables written off		—		—		—		—
Recoveries collected		—		388		521		1,281
Ending balance	$	(1,007)	$	(681)	$	(1,007)	$	(681)

Inventories


	June 30,		December 31,
(In thousands)	2024		2023
Raw materials	$	99,216	$	96,467
Work-in-process		33,416		24,727
Finished goods		37,252		41,970
Total	$	169,884	$	163,164

Intangible Assets


	June 30, 2024						December 31, 2023
			Accumulated						Accumulated
(In thousands)	Gross		Amortization		Net		Gross		Amortization		Net
Domain name	$	1,261	$	—	$	1,261	$	1,261	$	—	$	1,261
Developed technology		37,960		(36,199)		1,761		37,960		(35,459)		2,501
Technology licenses		1,926		(1,387)		539		1,926		(1,264)		662
Total intangible assets	$	41,147	$	(37,586)	$	3,561	$	41,147	$	(36,723)	$	4,424

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POWER INTEGRATIONS, INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

The estimated future amortization expense related to finite-lived intangible assets at June 30, 2024, is as follows:


	Estimated
	Amortization
Fiscal Year	(In thousands)
2024 (remaining six months)	$	416
2025		832
2026		687
2027		365
Total	$	2,300

Accumulated Other Comprehensive Loss

Changes in accumulated other comprehensive loss for the three and six months ended June 30, 2024 and 2023, were as follows:


	Unrealized Gains
	and Losses on				Defined Benefit						Foreign Currency
	Marketable Securities				Pension Items						Items				Total
	Three Months Ended				Three Months Ended						Three Months Ended				Three Months Ended
	June 30,				June 30,						June 30,				June 30,
(In thousands)	2024		2023		2024			2023			2024		2023		2024		2023
Beginning balance	$	(432)	$	(3,151)	$	1,542		$	842		$	(3,669)	$	(2,735)	$	(2,559)	$	(5,044)
Other comprehensive income (loss) before reclassifications		(317)		(144)		—			—			(271)		(548)		(588)		(692)
Amounts reclassified from accumulated other comprehensive loss		—		—		(42)	⁽¹⁾		(21)	⁽¹⁾		—		—		(42)		(21)
Net-current period other comprehensive income (loss)		(317)		(144)		(42)			(21)			(271)		(548)		(630)		(713)
Ending balance	$	(749)	$	(3,295)	$	1,500		$	821		$	(3,940)	$	(3,283)	$	(3,189)	$	(5,757)

(1)	This component of accumulated other comprehensive income (loss) is included in the computation of net periodic pension cost for the three months ended June 30, 2024 and 2023.


	Unrealized Gains
	and Losses on				Defined Benefit						Foreign Currency
	Marketable Securities				Pension Items						Items				Total
	Six Months Ended				Six Months Ended						Six Months Ended				Six Months Ended
	June 30,				June 30,						June 30,				June 30,
(In thousands)	2024		2023		2024			2023			2024		2023		2024		2023
Beginning balance	$	256	$	(5,323)	$	1,585		$	862		$	(3,303)	$	(2,883)	$	(1,462)	$	(7,344)
Other comprehensive income (loss) before reclassifications		(1,005)		2,028		—			—			(637)		(400)		(1,642)		1,628
Amounts reclassified from accumulated other comprehensive loss		—		—		(85)	⁽¹⁾		(41)	⁽¹⁾		—		—		(85)		(41)
Net-current period other comprehensive income (loss)		(1,005)		2,028		(85)			(41)			(637)		(400)		(1,727)		1,587
Ending balance	$	(749)	$	(3,295)	$	1,500		$	821		$	(3,940)	$	(3,283)	$	(3,189)	$	(5,757)

(1)	This component of accumulated other comprehensive income (loss) is included in the computation of net periodic pension cost for the six months ended June 30, 2024 and 2023.

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POWER INTEGRATIONS, INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

4. FAIR VALUE MEASUREMENTS:

The FASB established a three-tier value hierarchy, which prioritizes the inputs used in measuring fair value as follows: (Level 1) observable inputs such as quoted prices for identical assets in active markets; (Level 2) inputs other than the quoted prices in active markets that are observable either directly or indirectly; and (Level 3) unobservable inputs in which there is little or no market data, which requires the Company to develop its own assumptions. This hierarchy requires the Company to use observable market data, when available, and to minimize the use of unobservable inputs when determining fair value.

The Company’s cash equivalents and short-term marketable securities are classified within Level 1 or Level 2 of the fair-value hierarchy because they are valued using quoted market prices, broker or dealer quotations, or alternative pricing sources with reasonable levels of price transparency.

The fair-value hierarchy of the Company’s cash equivalents and marketable securities at June 30, 2024 and December 31, 2023, was as follows:


	Fair Value Measurement at
	June 30, 2024
			Quoted Prices in
			Active Markets for		Significant Other
			Identical Assets		Observable Inputs
(In thousands)	Total Fair Value		(Level 1)		(Level 2)
Commercial paper	$	2,656	$	—	$	2,656
Corporate securities		239,247		—		239,247
Money market funds		347		347		—
Total	$	242,250	$	347	$	241,903


	Fair Value Measurement at
	December 31, 2023
			Quoted Prices in
			Active Markets for		Significant Other
			Identical Assets		Observable Inputs
(In thousands)	Total Fair Value		(Level 1)		(Level 2)
Commercial paper	$	20,275	$	—	$	20,275
Corporate securities		246,922		—		246,922
Money market funds		491		491		—
Total	$	267,688	$	491	$	267,197

The Company did not transfer any investments between Level 1 and Level 2 of the fair-value hierarchy in the six months ended June 30, 2024 and the twelve months ended December 31, 2023.

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POWER INTEGRATIONS, INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

5. MARKETABLE SECURITIES:

Amortized cost and estimated fair market value of marketable securities classified as available-for-sale (excluding cash equivalents) at June 30, 2024, were as follows:


	Amortized		Gross Unrealized				Estimated Fair
(In thousands)	Cost		Gains		Losses		Market Value
Investments due in 3 months or less:
Corporate securities	$	3,998	$	—	$	(23)	$	3,975
Total		3,998		—		(23)		3,975
Investments due in 4-12 months:
Commercial paper		738		—		—		738
Corporate securities		90,074		8		(343)		89,739
Total		90,812		8		(343)		90,477
Investments due in 12 months or greater:
Corporate securities		145,924