SiliconBeat

The same day it released results for its 2008 first quarter, Monolithic Power Systems said that its reports for fiscal years 2006 and 2007 “should no longer be relied upon” after the company determined that its accounting for the tax effect of stock-based compensation related to a “cost-share” agreement it has with a foreign subsidiary was not recorded correctly.

The company says it has discussed these matters with its accounting firm, Deloitte & Touche, and is “assessing the impact of the errors” on its evaluation of its internal controls over its financial reporting.

Monolithic, which chips used in lighting displays for cell phones, digital cameras, other
electronic devices, said its revenue for its first quarter ended March 31 rose 45 percent, to $35.4 million from $24.5 million in the corresponding quarter of 2007. Analysts polled by Thomson Reuters expected $34 million in revenue for the quarter. As a result of the
restatement, Monolithic said it was only able to report operating results for the 2008 first quarter.

Its gross operating margin fell to 63.2 percent, compared with 63.4 percent in the year-before quarter and down from 63.9 percent in the fourth quarter of 2007.