The results for the year ended December 31, 2008 are as follows:

Gross margin of 61.9%, compared to 63.6% for the year ended December 31, 2007

GAAP operating expenses of $76.8 million, including $70.1 million for research and development and selling, general and administrative expenses, which includes $12.8 million for stock-based compensation and $6.7 million for patent litigation expenses.

Non-GAAP operating expenses of $64 million, excluding $12.8 million for stock-based compensation.

GAAP net income of $24.2 million, with GAAP EPS of $0.67 per diluted share.

The results for the quarter ended December 31, 2008 are as follows:

Net revenues of $34.7 million, down 9.8% from $38.5 million in the fourth quarter of 2007 and down 29.0% sequentially from $48.9 million in the third quarter of 2008.

Gross margin of 58.0%, compared to 63.9% in the fourth quarter of 2007 and 62.8% in the third quarter of 2008.

GAAP operating expenses of $17.9 million, including $17.3 million for research and development and selling, general and administrative expenses, which includes $3.6 million for stock-based compensation, and $0.6 million for patent litigation expenses.

Non-GAAP operating expenses of $14.3 million, excluding $3.6 million for stock-based compensation.

GAAP net income of $3.2 million, with GAAP EPS of $0.09 per diluted share.

Non-GAAP net income of $5.5 million, or $0.16 per diluted share, excluding stock-based compensation and related tax effects.

“2008 was another outstanding year for MPS despite the unfavorable operating environment,” said Michael Hsing, chief executive officer and founder of MPS. “Our history has proven that we have the right strategies combined with excellent execution. We will continue to have a lean and adaptive operation, focus on developing superior leading edge products, and expand our regional sales. We believe this recession is a business opportunity for MPS. As long as we continue to execute on our strategies, we will be a much stronger company once the economy recovers,” said Hsing.

Business Outlook

The following are MPS’ financial targets for the first quarter ending March 31, 2009:

Revenues in the range of $24 million to $29 million, reflecting the drop in general worldwide demand and lack of visibility for the first quarter of the year.

Gross margin below the lower end of the company’s target range of 60% to 63%.

Research and development and selling, general and administrative expenses between $16.0 million and $17.3 million. Non-GAAP research and development and selling, general and administrative expenses between $12.5 million and $13.5 million. This excludes an estimate of stock-based compensation expense in the range of $3.5 million to $3.8 million.

Litigation expense in the range of $1.5 million to $2.0 million.