Revenue from the enterprise data market increased $102.6 million, or 217.5%, year-over-year. This increase was primarily due to higher sales of our power management solutions for AI applications.

The Company acquired Axign B.V. on January 3, 2024, for approximately $33.7 million in cash. This acquisition expands MPS's capabilities in class-D audio ICs.

Revenue decreased in the storage and computing, automotive, communications, consumer, and industrial markets. Revenue from the storage and computing market decreased $13.7 million, or 11.4%, from the same period in 2023.

R&D expenses increased by $12.3 million year-over-year. The increase was primarily due to higher compensation expenses and third-party service fees.

SG&A expenses increased by $10.2 million year-over-year. The increase was driven by a $10.5 million increase in stock-based compensation expenses and related employer payroll taxes.

The company is taking steps to remediate the material weakness in internal control over financial reporting related to excess and obsolete inventory. The weakness will not be considered remediated until the applicable controls operate for a sufficient period of time and management has concluded, through testing, that these controls are operating effectively.

The 10-Q states that there have been no material changes to the Company's risk factors since the filing of the Annual Report on Form 10-K for the year ended December 31, 2023.

The company states that the factors that differentiate us from our competitors and our ability to adequately remediate our material weakness are forward looking statements.

Gross margin decreased to 55.1% compared to 57.4% in the prior year. This decrease was mainly driven by an increase in inventory write-downs and warranty expenses as a percentage of revenue.

R&D expenses increased by $12.3 million year-over-year. The increase was primarily due to higher compensation expenses and third-party service fees.

The goodwill arising from the acquisition was primarily attributed to the assembled workforce and synergies that are anticipated to enable the Company to develop solutions with lower power consumption in the consumer and automotive markets using Axign's digital feedback technology.

The Company repurchased 6,100 shares of its common stock for an aggregate purchase price of $4.1 million during the three months ended March 31, 2024. $632.2 million remains available for future repurchases.

The Board of Directors declared cash dividends of $1.25 per share, totaling $60.8 million.

The $278.3 million increase in cash used in investing activities compared to the same period in 2023 was primarily due to an increase of $236.5 million in purchases of investments and $33.3 million paid for the acquisition of Axign.

Executive officers can earn an additional 100% of the target number of the 2024 Executive PSUs if the Company achieves a reduction in 2026 of 25% global combined Scope 1 and Scope 2 greenhouse gas emissions against the 2022 baseline.

The semiconductor industry continues to face a number of macro-economic challenges including reduced consumer spending, fluctuations in demand for semiconductors, rising inflation, increased interest rates, and fluctuations in currency rates.

We closely monitor changes to export control laws, trade regulations and other trade requirements. To date, no restrictions have had a material impact on our revenue and operations.