Item 5. Market for Registrant’s Common Equity
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.
Our common stock trades on the Nasdaq Global Select Market under the symbol “POWI”.
As of February 2, 2021, there were approximately 43 stockholders of record. Because brokers and other institutions hold many of our shares on behalf of stockholders, we are unable to estimate the total number of stockholders represented by these record holders.
Issuer Purchases of Equity Securities
Over the years our board of directors has authorized the use of funds to repurchase shares of our common stock, including $80.0 million in October 2018, with repurchases to be executed according to pre-defined price/volume guidelines. We did not repurchase any shares of our common stock in the fourth quarter of 2020. As of December 31, 2020, we had $41.3 million available for future stock repurchases in our repurchase program, which has no expiration date. Authorization of future stock-repurchase programs is at the discretion of the board of directors and will depend on our financial condition, results of operations, capital requirements and business conditions as well as other factors.
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Performance Graph ( 1 )
The following graph shows the cumulative total return on an investment of $100 in cash on December 31, 2015, through December 31, 2020, in our common stock, the Nasdaq Composite Index and the Nasdaq Electronic Components Index and assuming that all dividends were reinvested. The stockholder return shown on the graph below is not necessarily indicative of future performance, and we do not make or endorse any predictions as to future stockholder returns.
Company/Index
12/31/15
12/31/16
12/31/17
12/31/18
12/31/19
12/31/20
Power Integrations, Inc.
100.00
140.87
153.94
128.81
210.80
351.57
Nasdaq Composite
100.00
108.87
141.13
137.12
187.44
271.64
Nasdaq Electronic Components
100.00
121.48
146.21
119.92
178.71
252.83
(1) This Section is not “soliciting material,” is not deemed “filed” with the SEC and is not to be incorporated by reference in any filing of Power Integrations under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, whether made before or after the date hereof and irrespective of any general incorporation language in any such filing.
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Item 6. Selected Financial Data.
The following selected consolidated financial data should be read in conjunction with “Management’s Discussion and Analysis of Financial Condition and Results of Operations’’ and the consolidated financial statements and the notes thereto included elsewhere in this Annual Report on Form 10-K to fully understand factors that may affect the comparability of the information presented below.
Consolidated Statement of Income Data
Year Ended December 31,
(in thousands, except per share amounts)
2020
2019(2)
2018
2017(3)(4)
2016(3)
Net revenues
$
488,318
$
420,669
$
415,955
$
431,755
$
389,668
Income from operations
70,487
217,022
55,648
57,637
48,874
Provision (benefit) for income taxes
4,075
28,946
(10,220)
32,690
1,054
Net income
$
71,176
$
193,468
$
69,984
$
27,609
$
48,898
Earnings per share: (1)
Basic
$
1.19
$
3.31
$
1.19
$
0.47
$
0.85
Diluted
$
1.17
$
3.25
$
1.16
$
0.45
$
0.83
Shares used in per share calculation: (1)
Basic
59,657
58,534
58,912
59,348
57,850
Diluted
60,845
59,632
60,294
61,090
59,238
Dividends per share (1)
$
0.42
$
0.35
$
0.32
$
0.28
$
0.26
Consolidated Balance Sheet Data
Year Ended December 31,
(in thousands)
2020
2019(2)
2018
2017(3)(4)
2016(3)
Cash and cash equivalents
$
258,874
$
178,690
$
134,137
$
93,655
$
62,134
Short-term marketable securities
190,318
232,398
94,451
189,236
188,323
Cash, cash equivalents and short-term marketable securities
449,192
411,088
228,588
282,891
250,457
Working capital
538,706
490,863
284,066
313,483
274,318
Total assets
903,339
803,896
588,697
621,074
554,410
Long-term liabilities
30,402
28,874
13,259
22,341
7,380
Stockholders’ equity
$
810,411
$
724,546
$
527,072
$
547,682
$
503,084
(1) In July 2020, our board of directors approved a two-for-one stock split in the form of a stock dividend, payable on August 18, 2020, to stockholders of record as of the close of business on August 14, 2020. Our stockholders received one additional share of common stock for each share of common stock held on August 14, 2020. The share and per share information for all periods presented in this Form 10-K have been adjusted for the effect of the stock split ( Refer to Note 10, Earnings Per Share , in this Form 10-K for details ) .
(2) In October 2019, we entered into a favorable litigation settlement with ON Semiconductor Corporation which resulted in a $169.0 million net gain.
(3) In 2017, we adopted Accounting Standards Update 2014-09, Revenue from Contracts with Customers , which amended the accounting standards for revenue recognition. The standards were applied on a retrospective basis to 2016.
(4) In December 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act.
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