MPS Delivers Record-Breaking Quarter with $621.7 Million in Revenue, Outlining a Bright Future for the Company
Genevieve Cunningham welcomed everyone to MPS's Fourth Quarter 2024 Earnings webinar, marking a momentous occasion in the company's history.
The quarter proved to be an exceptional one, with record-breaking revenue of $621.7 million, representing a 37% increase from the same period in 2023 and a significant boost over Q3 2024. This achievement is a testament to the company's diversified market strategy, consistent execution, continued innovation, and strong customer focus.
In 2024, MPS posted its 13th consecutive year of growth, with full-year revenue reaching $2.2 billion, up 21% from the previous year. The company's success is attributed to several key highlights, including the introduction of a silicon carbide inverter for high-powered clean energy applications. Additional revenue from this product is expected to ramp up in late 2025.
Other notable achievements include the development of high-quality, cost-effective automotive audio products utilizing DSP technology from the 2024 Axign acquisition powered by MPS Solutions. The company also launched a battery management solution and sampled a new mini phase power stage for enterprise notebooks, enabling faster charge times and significantly improved notebook battery life.
Building on its first analog to digital converter design win in 2024, MPS is developing new high-accuracy 24-bit converters, which are expected to ramp up in the second half of 2025. These innovative products demonstrate the company's commitment to solving customers' most challenging problems and maintaining the highest level of quality.
MPS continues to focus on innovation, investing in new technology, expanding into new markets, and diversifying its end-market applications and global supply chain. This strategy will enable the company to capture future growth opportunities, maintain supply chain stability, and adapt swiftly to market changes as they occur.
Moreover, the company announced a quarterly dividend increase of 25% to $1.56 per share and completed share repurchases under a 2023 $640 million authorization. This week, the Board of Directors authorized a new $500 million 3-year share repurchase program. For the three years ending December '24, MPS returned 86% of its free cash flow to shareholders through share repurchases and dividends paid.
MPS's proven long-term growth strategy remains intact as the company continues its transformation from being a chip-only semiconductor supplier to a full-service silicon-based solutions provider. The future looks bright for MPS, with its commitment to innovation, customer satisfaction, and strategic growth initiatives poised to drive continued success in the years to come.
