Japan's Panasonic announces a new chief at one of its companies as its profits barely hold up
Kenneth William Sain, a former Boeing executive, will replace Yasuyuki Higuchi as Panasonic Connect's president and chief executive in April 2026, the company said Wednesday. Panasonic Connect offers solutions and products for various supply chains, public services, infrastructure and entertainment sectors.
Sain joined Panasonic in 2019 as CEO of Panasonic Avionics.
'Ken is an exceptional leader with extensive global experience and a deep understanding of business and technology,' Higuchi said in a statement.
Panasonic Holdings Corp.'s April-June profit totaled 71.46 billion yen ($483 million), up from 70.6 billion yen. Its quarterly sales declined 10.6% from last year to 1.9 trillion yen ($12.8 billion).
The Osaka-based maker of home appliances, solar panels and batteries for Tesla vehicles kept its full year profit forecast unchanged at 310 billion yen ($2.1 billion), down 15% from the previous year.
Panasonic said the impact from U.S. President Donald Trump's tariffs was not yet fully factored in. The company said it will try to minimize the effect on its operating profit with cost cuts and other measures.
Consumer electronics sales were strong in Japan, Panasonic said, while they were also healthy in China, supported by subsidies.
On the positive side, it said demand for AI servers and air-conditioners was expected to grow. But concerns remain about slowing demand for electric vehicles because of U.S. tariffs and the ending of tax credits.
Panasonic also said that it's unclear when its new lithium-ion battery factory in Kansas will be fully operational.
Panasonic said in May that it was slashing its global workforce by 10,000 people, half in Japan and half overseas, to become 'lean.' The job cuts amount to about 4% of its workforce.
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However, investors should be aware that non-GAAP financial measures utilized by other companies are not likely to be comparable in most cases to the non-GAAP financial measures used by MPS. See the GAAP to non-GAAP reconciliations in the tables set forth below. Earnings Commentary Earnings commentary on the results of operations for the quarter ended June 30, 2025 is available under the Investor Relations page on the MPS website. Earnings Webinar MPS plans to host a question-and-answer webinar covering its financial results at 2:00 p.m. PT / 5:00 p.m. ET, July 31, 2025. The live event will be held via a Zoom webcast, which can be accessed at: The Zoom webcast can also be accessed live over the phone by dialing (669) 444-9171; the webcast ID is 98147401910. A replay of the event will be archived and available for replay for one year under the Investor Relations page on the MPS website. Safe Harbor Statement This press release contains, and statements that will be made during the accompanying earnings webinar will contain, forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995, including under the 'Business Outlook' section and the quote from our CEO herein, including, among other things, (i) projected revenue, GAAP and non-GAAP gross margin, GAAP and non-GAAP operating expenses, stock-based compensation and related expenses, amortization of acquisition-related intangible assets, other income before foreign exchange gains or losses, and fully diluted shares outstanding, (ii) our outlook for the third quarter of fiscal year 2025 and the near-term, medium-term and long-term prospects of MPS, including our ability to adapt to changing market conditions, performance against our business plan, our ability to grow despite the various challenges facing our business, our industry and the global economic environment, revenue growth in certain of our market segments, potential new business segments, our continued investment in research and development ('R&D'), expected revenue growth, customers' acceptance of our new product offerings, the prospects of our new product development, our expectations regarding market and industry segment trends and prospects, and our projected expansion of capacity and the impact it may have on our business, (iii) our ability to penetrate new markets and expand our market share, (iv) the seasonality of our business, (v) our ability to reduce our expenses, and (vi) statements regarding the assumptions underlying or relating to any statement described in (i), (ii), (iii), (iv), or (v). These forward-looking statements are not historical facts or guarantees of future performance or events, are based on current expectations, estimates, beliefs, assumptions, goals, and objectives, and involve significant known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from the results expressed by these statements. Readers of this press release and listeners to the accompanying earnings webinar are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date hereof. Factors that could cause actual results to differ include, but are not limited to, continued uncertainties in the global economy, including due to the Russia-Ukraine and Middle East conflicts, global tariffs and retaliatory measures and announcements regarding same, inflation, consumer sentiment and other factors; adverse events arising from orders or regulations of governmental entities, including such orders or regulations that impact our customers or suppliers, and adoption of new or amended accounting standards; adverse changes in laws and government regulations such as tariffs on imports of foreign goods, export regulations and export classifications, and tax laws (including the recent H.R.1 Act signed into law on July 4, 2025) or the interpretation of same, including in foreign countries where MPS has offices or operations; the effect of export controls, trade and economic sanctions regulations and other regulatory or contractual limitations on our ability to sell or develop our products in certain foreign markets, particularly in China; our ability to obtain governmental licenses and approvals for international trading activities or technology transfers, including export licenses; acceptance of, or demand for, our products, in particular the new products launched recently, being different than expected; our ability to increase market share in our targeted markets; difficulty in predicting or budgeting for future customer demand and channel inventories, expenses and financial contingencies (including as a result of any continuing impact from the Russia-Ukraine and Middle East conflicts); our ability to efficiently and effectively develop new products and receive a return on our R&D expense investment; our ability to attract new customers and retain existing customers; our ability to meet customer demand for our products due to constraints on our third-party suppliers' ability to manufacture sufficient quantities of our products or otherwise; our ability to expand manufacturing capacity to support future growth; adverse changes in production and testing efficiency of our products; any political, cultural, military, regulatory, economic, foreign exchange and operational changes in China, where a significant portion of our manufacturing capacity comes from; any market disruptions or interruptions in our schedule of new product development releases; our ability to manage our inventory levels; adequate supply of our products from our third-party manufacturing partners; adverse changes or developments in the semiconductor industry generally, which is cyclical in nature, and our ability to adjust our operations to address such changes or developments; the ongoing consolidation of companies in the semiconductor industry; competition generally and the increasingly competitive nature of our industry; our ability to realize the anticipated benefits of companies and products that MPS acquires, and our ability to effectively and efficiently integrate these acquired companies and products into our operations; the risks, uncertainties and costs of litigation in which MPS is involved; the outcome of any upcoming trials, hearings, motions and appeals; the adverse impact on our financial performance if our tax and litigation provisions are inadequate; our ability to effectively manage our growth and attract and retain qualified personnel; the effect of epidemics and pandemics on the global economy and on our business; the risks associated with the financial market, economy, global tariffs and retaliatory measures and announcements regarding same, and geopolitical uncertainties, including the Russia-Ukraine and Middle East conflicts; and other important risk factors identified under the caption 'Risk Factors' and elsewhere in our Securities and Exchange Commission ('SEC') filings, including, but not limited to, our Annual Report on Form 10-K filed with the SEC on March 3, 2025. MPS assumes no obligation to update the information in this press release or in the accompanying earnings webinar. About Monolithic Power Systems Monolithic Power Systems, Inc. ('MPS') is a fabless global company that provides high-performance, semiconductor-based power electronics solutions. MPS's mission is to reduce energy and material consumption to improve all aspects of quality of life. Founded in 1997 by our CEO Michael Hsing, MPS has three core strengths: deep system-level knowledge, strong semiconductor expertise, and innovative proprietary technologies in the areas of semiconductor processes, system integration, and packaging. These combined advantages enable MPS to deliver reliable, compact, and monolithic solutions that are highly energy-efficient, cost-effective, and environmentally responsible while providing a consistent return on investment to our stockholders. MPS can be contacted through its website at or its support offices around the world. Monolithic Power Systems, MPS, and the MPS logo are registered trademarks of Monolithic Power Systems, Inc. in the U.S. and trademarked in certain other countries. June 30, December 31, 2025 2024 ASSETS Current assets: Cash and cash equivalents $ 787,382 $ 691,816 Short-term investments 358,695 171,130 Accounts receivable, net 194,821 172,518 Inventories 490,642 419,611 Other current assets 87,217 109,978 Total current assets 1,918,757 1,565,053 Property and equipment, net 563,885 494,945 Acquisition-related intangible assets, net 9,364 9,938 Goodwill 25,944 25,944 Deferred tax assets, net 1,309,981 1,326,840 Other long-term assets 144,279 194,377 Total assets $ 3,972,210 $ 3,617,097 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 129,919 $ 102,526 Accrued compensation and related benefits 81,296 63,918 Other accrued liabilities 172,293 128,123 Total current liabilities 383,508 294,567 Income tax liabilities 73,185 65,193 Other long-term liabilities 113,449 111,570 Total liabilities 570,142 471,330 Commitments and contingencies Stockholders' equity: Common stock and additional paid-in capital: $0.001 par value; shares authorized: 150,000; shares issued and outstanding: 47,892 and 47,823, respectively 822,582 706,817 Retained earnings 2,603,177 2,487,461 Accumulated other comprehensive loss (23,691) (48,511) Total stockholders' equity 3,402,068 3,145,767 Total liabilities and stockholders' equity $ 3,972,210 $ 3,617,097 Monolithic Power Systems, Inc. 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