Monolithic Power Systems, Inc. stock research
FY2023 Q2
Monolithic Power Systems (MPWR) Gross Margin — Quarter Ended Jun 30, 2023
Revenue and gross profit decreased compared to both the prior quarter and the same quarter last year, while cost of revenue increased relative to the year-ago period. As a result, gross margin weakened.
Gross margin takeaway
Quarter ended Jun 30, 2023 · FY2023 Q2
Revenue and gross profit decreased compared to both the prior quarter and the same quarter last year, while cost of revenue increased relative to the year-ago period. As a result, gross margin weakened.
- The gross margin decline was accompanied by lower revenue and higher cost of revenue compared to the year-ago quarter, with the revenue decrease being the more prominent factor.
- Compared to the prior quarter, revenue and gross profit were lower, cost of revenue was slightly higher, and gross margin weakened. Versus the same quarter a year earlier, all metrics were lower except cost of revenue which was higher, resulting in a weaker gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
56.1%
Gross profit
$247.7M
Revenue
$441.1M
Cost of revenue
$193.5M
Quarter-over-quarter change
-1.2 pts
Year-over-year change
-2.6 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 31, 2023 | $451.1M | $258.8M | $192.3M | 57.4% |
| Jun 30, 2023 | $441.1M | $247.7M | $193.5M | 56.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2023
-1.2 pts
Year-over-year change
Jun 30, 2022
-2.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin decline was accompanied by lower revenue and higher cost of revenue compared to the year-ago quarter, with the revenue decrease being the more prominent factor.
Compared to the prior quarter, revenue and gross profit were lower, cost of revenue was slightly higher, and gross margin weakened. Versus the same quarter a year earlier, all metrics were lower except cost of revenue which was higher, resulting in a weaker gross margin.
Monitor inventory levels, which decreased from the prior year-end, as they can influence future cost of revenue and margin trends.