POWER INTEGRATIONS INC Segments Disclosure
13. SEGMENT REPORTING:
The Company is organized and operates as one and reportable segment; the design, development, manufacture and marketing of integrated circuits and related components for use primarily in high-voltage power conversion. This determination is based on the management approach which designates internal information regularly available to the Chief Operating Decision Maker (“CODM”) for making decisions and assessing performance as the source of determination of the Company’s reportable segments. The Company’s CODM, the Chief Executive Officer, reviews financial information presented on a consolidated basis for the purpose of making operating decisions and assessing financial performance.
The CODM uses net income as the measure of profit or loss to allocate resources and assess performance. The CODM regularly reviews net income as reported on the Company’s consolidated statements of income. Financial forecasts and budget to actual results used by the CODM to assess performance and allocate resources, as well as those used for strategic decisions related to headcount and capital expenditures are also reviewed on a consolidated basis. The CODM considers the impact on net income of the significant segment expenses in the table below when deciding whether to reinvest profits, propose dividends or share repurchase, or pursue strategic mergers and acquisitions.
The measure of segment assets is reported on the balance sheet as total assets. The CODM does not review segment assets at a level other than that presented in the Company’s consolidated balance sheets.
The table below presents the Company’s consolidated operating results including significant segment expenses:
| Year Ended December 31, | ||||||||
(In thousands) | 2025 | | 2024 | | 2023 | ||||
NET REVENUE | $ | 443,504 | $ | 418,973 | $ | 444,538 | |||
Less: | |||||||||
Stock-based compensation (1) | 39,690 | 35,076 | 28,528 | ||||||
Amortization of acquisition-related intangible assets (2) | 587 | 1,034 | 1,928 | ||||||
Cost of revenue (excluding 1 & 2) | 199,270 | 191,098 | 211,962 | ||||||
Research and development (excluding 1) | 90,881 | 88,203 | 85,128 | ||||||
Sales and marketing (excluding 1) | 61,492 | 59,761 | 57,710 | ||||||
General and administrative (excluding 1) | 30,138 | 25,872 | 24,223 | ||||||
Other operating expenses (excluding 1) | 11,252 | — | — | ||||||
INCOME FROM OPERATIONS | 10,194 | 17,929 | 35,059 | ||||||
OTHER INCOME | 10,785 | 12,825 | 10,848 | ||||||
PROVISION (BENEFIT) FOR INCOME TAXES | (1,114) | (1,480) | (9,828) | ||||||
NET INCOME | $ | 22,093 | $ | 32,234 | $ | 55,735 | |||
The table below presents other segment information:
| Year Ended December 31, | ||||||||
(In thousands) | 2025 | | 2024 | | 2023 | ||||
Depreciation | $ | 27,195 | $ | 33,303 | $ | 35,203 | |||
Amortization of intangibles | $ | 831 | $ | 1,279 | $ | 2,173 | |||
Interest income | $ | 11,682 | $ | 13,576 | $ | 11,655 | |||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 6, 2026 | Showing above |
| 2024 | Feb 7, 2025 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.