Monolithic Power Systems (MPWR) will restate its financial statements for fiscal year 2024 and all 2025 quarterly periods. The company identified a non-cash accounting error involving deferred income taxes from a foreign tax incentive. Third-party tax service providers reportedly caused the unintentional error.
The adjustment reduces 2024 net income by approximately $195 million. It will increase 2025 net income by $5.5 million. The restatement does not affect revenue or non-GAAP operating results.
Multiple law firms launched investigations into potential breaches of fiduciary duties by company officers and directors following the disclosure.