Transphorm (TGAN) 27 Jun 232023 Q4 Earnings call transcript

Thank you for standing by, and welcome to the Transphorm’s Fourth Quarter and Full Year Fiscal 2023 Earnings Call. At this time, all participants are in a listen only mode. After the speaker presentation, there will be a question-and-answer session. [Operator Instructions]

I would now like to hand the call over to David Hanover with Investor Relations. ahead. go Please

welcome fiscal and fourth and quarter Good earnings to conference year XXXX call. full afternoon Transphorm’s

Joining us today and from Transphorm are Primit Cameron Chief Co-Founder; Parikh, McAulay, Financial Officer. and CEO President

that will the I'd accessed live to they associated begin, website, through be today's which the the referencing remarks, Investors webcast and Transphorm available will prepared a where call. slides conference we Before call. with point out These section slide posted there of like also a PDF presentation be during in to link management link subsequent is can be conference today's as a

or management's which after and of Additionally, course factors assess statements results results potential projections in Any It's to contained as obligation its statements not not areas to for forward-looking undertakes or conform uncertainties impact this the may could The as the for of the expectations. all position, may this from to for any from light the the the person discussed company actual or update company's today, anticipated materially forward-looking actual can of actual combination in call during assumptions, future of the company the no of the accuracy company statements possible XXXX. of and or implied. to on financial risks, responsibility publicly to Neither management factors company to or changes represent assumes nor those make markets forward-looking any to date statements. the such business may forward-looking strategy the call occur company's statements. any reason risks and of differ to differ also performance adversely and during operations, complete predict factor estimates may other this June In or regarding nor the company's those materially future company these extent results all XX, and the cause the of discussion. statements plans, forward-looking the any or call, end specific

information on company's you For filings the on and report factors to most annual Form detailed more SEC. associated we with subsequent described XX-K business, in the recent with other refer risks Transphorm's risk the

said, With Parikh. over call pleasure that to now Primit Primit. is to the it go my turn CEO, ahead, Please Transphorm's

afternoon, you, everyone. fiscal Welcome Transphorm's conference quarter David, XXXX fourth year good and and to Thank call. full

We total of in by largely which a award commencement $X.X quarter. delay was current out of contract, $X.X deliverables another and to the design-in on and $XXX of in areas continue high to $X.X XXX% products. the low revenues million power were revenue by momentum, revenue, target. the lower million product growth smaller be on power high estimated million, government impacted million, pipeline almost over increased [indiscernible] with which pushed $XXX now the were into total pipeline QX comprised $XX powered key our products power pleased both and of million than This dominated nearing and was government with both our million, the contract

in We reliability mix healthy notably GaNs. revenue with a player the XXXX overall increase are of is more now is competitor performance GaN that revenue emod every GaN came Furthermore, happy XX% product power, $XX to high than XX% year-over-year. about the the FY over represents million Transphorm fully one place. report program in product high number high million where other $XX from new and of The

now. three Slide Going on to

rights well enhancing our stockholder key value, as operating want Before to alternatives client into offering. regarding announcement recent address our strategic metrics, opportunities and I our a of as going review for

has silicon power acquisition or semiconductor semiconductor in carbide, are recently but as by power as in large a the of capital interest GaN silicon and well generated has GaN space tremendous GaN interest by GaN been strategy. from a sector who top As amount interest announcement aware, of announcements necessarily company, the many not GaN semiconductor power. of the leading This evidenced raises of recent have the you power and companies other

Transphorm power is play the companies GaN pretty outperforming much is leader, of technology one It GaN more TSMC X,XXX in an portfolio at operating of is scale. today. and the by This licensed and GaN established our in and GaN pure reliability Manufacturing patents. few especially best-in-class backed level or than topology power owned strong power Ownership GaN Wafer high emode every GaN with IP or

progress coupled this to value. of undergo with it time the strategic review this we in is objective believe GaN, shareholder enhancing Given with Transphorm activity, an appropriate single

including opportunities, potential debt levels M&A not and have and equity interest from and opportunities. multiple financing but will review to received, inbound traditional financing, or our on we both licensing Based partner various limited be of investor strategic opportunities U.S. Asia in include, the and/or alternatives,

support fiscal a has key are recently of pursuing which debt, asset us give XXXX. from we well announced also runway and offering, into We will conventional rights both based shareholders, which

majority Slide GaN chargers coming metrics GaN, segments watts, $XX over a We in while quarter. with nearing our increase power on is revenue, achieved computing fast contribution key and XXX performance in and market. to the our energy, in four XX% presence million growing in back like to high which in about year-over-year flavors multiple demonstrated the from for and Moving than more and FY XXXX key product vectors with

conference the at APAC XX driver three in system and where total or fast production. March Notably, watts space, market into and integrated we with [indiscernible], For we taking we and USB low new controller we player designs the XX entered the package power XXX in now that address to our trade show the watts, chargers with partner new in in the XX announced secured ramped PBICs. wins, the over design SIP leading

XX% Recently XXX watt in style fact GaN We and News cooler physics based GaN. Electronics versus SuperGaN over delivers emod GaN. showing FET as emod the have and loss our repeatedly a Also seen lower that over in typical over Power in benefit performance XX% the charger. of our running well reported validating higher TSMC

design-in momentum this fiscal ramp the see the an in performance, of superior we the beginning increased Given continued year. second of half and

in in knowledge, in is has to now Transphorm high out our products. with had across the area GaN at production. power XXX leadership stand it X with are XX who a of design-ins have only in over customers company market of the We increase kilowatts to XX% which that best XX and in the their end from watts this segments sequential ramped

microinverter several X and we customers believe million $X with progress. company coming GaN customer are to already in design-ins million with sold market in the also parts only months the We several the with our targeting XX other lead have with ramped segment over

can also To versus low packages over of surface but accelerate of power fiscal area second emod the in introduced we XXX to notably year, industry performance half high in the range mount the a GaN power the and across worldwide, the series our increased watts, has revenue SuperGaN pin-to-pin seamlessly compatible FETs standard applicable of which been higher revenue momentum with with controller used our controllers. quantitatively enhancing this to that partner standard strong our validated. IC drivers SKUs application XX% Clearly, with and continuing we sales by and need well be companies with product as GaN as outreach to and increased into take the

FET have EV our carbide also simulation kits, We as X,XXX PCIM, X,XXX X,XXX who volts. GaN customers interest volt to Transphorm XXX look at GaN generating volt at future taking significant volt from in silicon future, begun proof, directly today, released at on

on focused to margin we intensely initiatives well side, On the operations direct as capacity as increase improvement.

production, released we the global into Our now fourth are wafers released fiscal production and in and reactors Japan track Epi and qualification quarter. report on are completing new pleased for to into to well reactors development are as

cost improvements We for powered lower have flagship [TO] which see (ph) the in solid quarters. our expect packaging from put coming high in margin place we to products partners

me the Slide product reactors. reactors and and our to fiscal installed reactors half up around have with in development, production at out have of the five, these eight or levels partnerships, by revenue us with production global track on setting for key for we wafer million four $XX of Let are annualized MOCVD various eight turn of we just second now to of XXXX, initiatives. six Including our running we now partnership

addressing XXXX. fiscal wafer well, running we AFSW is in for and fab add-ons capacity our ready be incremental will Our to be XXXX fiscal

progress sound with automotive our made industrial customer We shareholder partners. and

completed team for development of and servo this funding motor products Our the GaN million next secured round month. $X.X

in customer wheeler April automotive wafers. term streamlined and an space Nexperia of all the hope in in debt for long India supply products China, completed of well power Japan. remaining are have four the segments, America, from. their four initiative In high after these leverage Notably, in EV partnership who worldwide focus for exclusivity and something EU, non-automotive paying areas, we with important also have already off recognized a GaN continuing the North in launched We our our with now remains wheelers to we

to also we commitment XXX to end, design two power We solutions of chargers To are from reiterating three to are two XXXX. volt by and kilowatt for year and levels for sampling and X portable calendar ramp in EV this EV win three our end our onboard that wheeler year wheeler newly chargers. customers

Epi $XX ecosystem have fiscal the wafer for executing to QX million for and in future applicable from are commercial delayed we U.S. new and DOD of XXXX, our to program secured QX fiscal now Although enhancing GaN the XXXX manufacturing on space. government RF also

U.S. significant We us licensing manufacturing revenue could pursuing materialize cash year from and the interest chipset GaN non-dilutive XXXX. companies with for into which in fiscal also have program,

five power, XXX more like no and everything of largest center, is market of vehicles. chargers, low in a now $XXX including about the increase approximately our weighted in from last pipeline our longer where with government all is sales By over our already number power well other since adapters now levels, large and probabilistically our Slide should growing The EV the total data $XXX and are the products rapid a some today to segments. that will from pipelines pipeline. significant we of power, renewables sales than area. stands that again towards pipeline million more which growing in Moving now, wafer of design-ins finish capabilities push and is core is high power are update constraint microinverters increases are emod electric and area, The GaN reflected towards this Nexperia the contracts line. worldwide products, move packaged power to there, that be growth exclusivity key and high of power as weaker, pipeline and million is represents piece our X% noted Also, to device over overall watts, business. power expect about wafer industrial, our it the By XX% portion wafers

to continue to higher continue power power today and all we vehicles, comprising automotive lower market now. in production further followed power datacom we GaN over and both or with either the by already power that TAM computing beyond and in a power including XXXX, position among is platform areas double address billion microinverters, and Products wheelers inverters, mid expected a GaN XXXX to and spanning unique seven spectrum. Slide plus production. In years. to of Transphorm's GaN large towards with are be EV and Moving ramping growth in of differentiated three In opportunity, two three core the summary, opportunities the From TAM energy a wide conversion PV in first the blockchain over next market growth electric suppliers to in year that and $X the our four server, $X AI, long GaN expect industrial wheelers calendar term, billion to to adapters XXXX. chargers for EV range

our now both Our XXX devices. GaN low fit products in customers in over X.X we the very XX for This been and offering with that evidenced rivaling rates is confidence our field traditional are hours exciting products. Transphorm, field in X the systems fact market watt by products us, point along of the what with have energy proof only in today those kilowatt lies having for for GaN end failure customer silicon or and the still to from fast an chargers server billion with ramped ahead

new year runway Our ramped as superior into expanding Two, our value; strong more will process for meaningfully improved significant performance, cost, expansion enhanced on: capacity, new based scaling the identifying options Three, footprint, electric and application battery of well term margins One, as technology to volt ICs. cash reliability with design-in solution the offering, roadmap and headwinds sales best review XXXX like and markets into with in higher completing volt performance FY the be the vehicle design-ins as towards term We GaN. immediate progress undergoing model converting packaging fiscal the systems X,XXX rights shareholder reducing positioned strategic partners production our cost and offerings our products, XXXX XXX in extending accessing SuperGaN ecosystem high volumes, well focus as improving on near remain well tackle and like and beyond. our well while lower long

I over With walk that, financials you and will to details. Cameron hand through to our

Thank you, everyone to and Primit, hello us today. joining

results a start fiscal completed me for Let now brief financial both my our recently with quarter of most remarks year. and recap our

other release and which Non-GAAP to For to results my non-GAAP both table. compensation, in amortization, income have based and remarks, and GAAP I will stock results. expenditure. our refer exclude reconciled press GAAP depreciation,

non-GAAP in $XX.X million the excluding and revenue fiscal quarter transaction the fiscal the product licensing for the licensing million prior year Starting an oneoff and year-on-year, with comprising increase of represents the was total income financial $X.X GAAP and revenue year. This year. and the X% government statement, in in

FY to For and majority close to higher this the being a total our of in current we driven revenue and partially new being a the awarded in the number, QX XXXX. XX% quarter product for The from for the power completed specific from it quarter now strong was in contract. product awarded in forms applications. revenue This XXX% higher delay to both calendar is fiscal revenues QX the the government expect fiscal The majority and just generated see percentage quarter year, by virtually XXXX. of company this revenue,

gaming Product XXXX. XX%. sales power million including across applications, were of $X.X adapters, for chargers This fast $XX.X This has been million centers. in broad the year-on-year quarter data range FY driven and an is revenue conversion a increase and of

and customers by being from this successful activity here the in Primit, and for was of solid lag the reduced a XX million a $XX,XXX the prior a This year. $X.X quarter now the in the from one production, $X.X prior we under prior $XX completion in As Government our noted fiscal quarter the million year. was have quarter. our over of increase revenue of decrease driver prior new award together government with The contract between contract, program. million

QX As FY XXXX. mentioned earlier, revenues drive this in will

fiscal fiscal margin gross dispositioning prior X%, X% The our for a as inventory. strategic by in year discussed subassembly the gross impacted was was margin earnings quarter call in negative of with the a The year. for the nonrecurring AP wafer

have revenue staffing revenue margins this drive the X% Excluding lower volume, and would stronger year. with in such for positive a the as off, result not onetime margin strategic primarily quarter is larger do gross function for at scale indirect company the of write numbers. a The costs therefore reported gross

As will in trajectory, gross including we margins growth resume expectations margins are reaching XX% our our the the quarter. follow June soon,

of product of receive benefits XX%. gross efficiency cost contribute continue in number grow long including actions progress model new this gross term of Our introductions, we to are in and activities, our ongoing expected margins will A direct continue to that we margins we increased consistent margin. and remain to towards as to scale excess

FY support capacity in costs compared primary to increase our to in company's headcount XXXX, costs, activities. expenses government basis ongoing was million the were operations. reduces increase million as a activity, driven FY bring increased in in key an in our was as costs year. increase our factors, Operating the by and we significant absorption Similarly, non-GAAP on in coming quarter a The of the to and the compliance XXXX, $X.X the reduction fiscal G&A three $XX.X increase reactors quarter which support up R&D to an for to

results. EPS, my year. EPS on to will fiscal here and was focus Turning the QX $X.XX $X.XX in remarks I non-GAAP The the non-GAAP loss for

Excluding OpEx revenue the and reduce EPS for the $X.XX overall a the of quarter increased primary inventory onetime for change. GAAP for was off, The drivers write non the this the quarter. prior were EPS

the between Revenue by $X.XX. a continue production loss between EPS between million, in improvement our the and of as perspective, the to traction evidenced market to and design-in XX% quarter, and $X.XX activity. and customers guides to million June margin both an ahead solid operational see company From and $X.X below. we XX% on Looking $X.X gross targeted

to is enabling product focus expansion medium to term growth. short Our on capacity support and long execution term

continue also We growth engine long the to invest term in the company. of

in government end capital cash now increased of shareholders' the run, by This timing DSO we million to our forward. the together Collections was reduce quarter of moving $XX.X $X.X Turning quarter. to the Operational driven with significantly reduced the at the improved end, weak the awarded, excluding fund increase the at $XX.X balance cash non-linear investment, revenue and cash the in million Cash equivalents million. quarter an was quarter to current contract primarily to attributable in current our sales sheet, quarter. have being expect the equity by were driven collections. in in quarter

CapEx our We stable. enable as liabilities to support largely Other invest remained we look capacity and to in to continue additional assets growth.

strong As company asset with towards rights made the progress announced, backed a issue, nondilutive has together debt. an

proceeds fiscal rates financial in these deep runway the fully expect together conclude the will from to with term. near year backed We into asset subscribed XXXX. company facilities the debt give A issued

opportunities made Looking in that invest possible the continue growth ensure ahead, will continued with to balance we're sheet further our and progress order we continue to strengthen growth. design-ins to to production to remain able to our open in to our customers. A

we trend three look year, of different product XX%. with the is building government, model. you In excess process current product. for a of anticipates perspective, streams GaN the expect in our growth has and the fiscal of revenue a licensing, From business. end of generative know, income, have as rapid our target year Transphorm Turning continue. markets The in now expected a cash top high to we to as and across And we forward, this amounted line growth total company majority multiple adoption revenues. CAGR five operating

XX%. of confident our improved structure achieve We company the overall margin that be to over All products. can [indiscernible] able cost the gross in from are now will an benefit segments

new number cost scaling ongoing product In to increase. and actions including help of discreet a also efficiency will addition, introductions, our gross margins activities,

core operating to respect to continue support of company With our aspects will margin, invest the to operations. all

additional and OpEx CapEx an to in medium We have in increased But XX%. will be excess From cash model over structure bottom term. cash allow scale a place, stable margins able line. will our in be margin to long a that deployed already operating that deliver for to us gross a we to into ultimately translate strong environment expect free manufacturing will to generate perspective, XX% with of flow footprint the

Concluding GaN, generation with Exchange publicly key listed a is future now a systems. in global the few the highlights, on of leader NASDAQ Transphorm next power

Our growing disruptive addressing large market technology a is best-in-class opportunity.

are in commercially with ramping We a place. pipeline strong

have and and levels our a wide We strong range have a partners a that power offering product chip meets comprehensive segments. network of needs across customers' blue today established of

of industry's and All IT talented and a this is chain, underpinned vertically by deep a the supply position, strongest team. integrated

we call prepared like completes please materials, and remarks Q&A questions. to the Operator, portion That open with call. of to would proceed the our any the now and

[Operator David Our Williams from question first the Company. line comes of Instructions] Benchmark the of

David. please, question, Your

a me afternoon, and Hey, allow questions. the for few to time good Thanks ask gentlemen.

It's your know leading in we've the First, congratulations can talked more bit a role. You first great to inbounds. And is you seen review that I color script. got the in you've see. maybe around what talked a CEO anything on my strategic and progress. transition to little -- and of guess about having specific congratulations technology on the little question seen? give a the And But the some We happened ecosystem. what's you've Primit, you us

So think. any around that clarification would I helpful, very, be very

Sure. No, thank you for that.

significantly the we design-in The having like we then, is has ourselves. with the first increased. of -- momentum, are with customer it also momentum said, So activities and all,

raises, We are both, M&A by announcement in GaN of is interest very and/or about with excited the transactions, excitement that. capital itself There companies. multiple field

Right? is taking with seeing to where So accelerate are the stock of stockholder that's this help we situation, is of opportunities. the do do and strategic one review. what what include we best will GaN It accelerate the this of we may that from options alternatives, value. licensing more the traditional can will -- our kind Right? growth also what board's So financing strategic It's financing enhance the of simultaneously initiative, we growth business see look is And we partners or would to revenue. things. include at

We an the that of had in example past. have

transactions. licensing would said look accelerate or Asia portions So our of M&A U.S. to in both at helps we that like potential of also we their in and portfolio us

single So of those open again, to wouldn't are the stockholder value. to kind of want goal things we enhancing be the with,

the want guess, And Okay. implications clarification you you lower guys moving was is any, least that I we silicon. given I X,XXX at forward competitors about Is that fairly IP your a released large kind segment. standpoint, that And transition just And is GaN of of historically about of Thanks your kind noticed GaN-on-Sapphire volt one competitors, think in your in power I an there from should where that simulation. with? then ask there. on or you to for been the and GaN-on-Sapphire that

that. Sure. No, David for thanks

the no change. XXX So and there on volt we is platforms, voltage

X, to platform. we'll march X, our with on work enhancements and baseline. Gen GaN-on-Silicon continue our Gen That's ahead future other further to We our

this before and because also, the X,XXX was best As that in we determined growth. get GaN-on-Sapphire, to we we've IP look at and expertise about talked way volts, to X,XXX we volts have

we whether it As as GaN-on-Sapphire for second right, -- second strongest on our you're power our you battery is GaN Or Transphorm of for you the or AP] vertical at team, at XXX mainstream being second GaN-on-Silicon exciting volts we volts. vertical, our one and do business, primary [RF Epi call GaN-on-Silicon look materials Carbide power. suite the in is it X,XXX there flagship the growth at for actually of and of the IP know, which segment and our (ph), core high the -- voltage seeing segment right, technology EV is if MOCVD vertical now government

been So substances on an all of always all expertise growth has Transphorm. of GaN

So we doing to look forward that.

to again, GaN-on-Silicon, XXXX. and XXX baseline thrive our clear, volt But be to accelerate continues on

looking GaN-on-Sapphire. are at We

excellent the we also to do now We which also part, especially for some models. have government results, RF demonstrated do GaN-on-Silicon release we those us led then simulation on our contract. And carbide,

Okay…

our strong segments, these is -- strong. IP And is our across quite IP

in Fantastic. in supply strong Thanks. wanted more. If kind could to relatively in I power your position one squeeze about of just just ask I and the data the center market.

kind kind if that in from terms center seeing power of anything Just the and Are immense specifically AI just of increased you trend the requires. the for workloads? curious you're of for amount based AI data of seeing that interest

Yes.

generally which power, segment, of AI. -- server So under computing includes all we that put our we

We performance recently. as as are to computing also for in server we that inquiries seeing power. design-in hope computing. translates segment momentum increased our some along well blockchain that specifically high more We gaming put then And the with

the segment, our as a So high this reliability is -- having one part players, in the power of and site four you we all market. of demonstrated the performance GaN been are computing lead have which good on original with said rightly

Thank you.

question [Operator Riley Securities. Instructions] Ellis Craig the B. of from you. comes next Thank of Our line

Your question, please, Craig.

I to the make fiscal taking the understood Yes. just I Cameron. Thanks sure wanted for revenue the the to guide Cameron, for XQ. elements question Primit

$X million. to So a I of revenues million think you $X.X said in range

then and million that in increase at sequential government in in for get revenue product about A federal the having the look if the product as gain didn't we of it balances. that so, a the component prior revenue are in that's sequential nice what drivers we the revenue? should quarter So $X.X and

Good Craig. Thanks, question. Sure.

think you're I right.

concluded will in we revenue through that With quarter. in government see quarter, contract the coming being the the

the I product think will revenue line overall that flattish. be

Primit grow we're starting quarter. to the September to looking from As mentioned, products see

this normalizing we higher So to see we as revenue government that and of QX proportion beyond. quarter, will into head a with and I think particular

Yes.

of normal get what kind up regresses Is then quarters catch from a the first that. we're on and win into to And get of the linearity Primit's the And so over like? level And next we've view through ramp helpful the as revenue one convert really ramp design activity reactor quarter, to the you revenue. product the we three more got the one ability was boost it revenue that look in about seeing? and XXXX. years. How to normal Cameron, it feeling What growing then are is product company two the beyond you go has back the fiscal

yeah, right. got that you So, part

well work in reactor, are We off. the is poised quarters the actually put team now several last has paying hard our on

very reactors And are stays development us which already Japan Taiwan, wafer production. Our ramped into then in exciting for exactly track. partnerships the is global the of on

reactors two have we So there.

of released Now now. in development already for development process

exciting. will very And So that's to XXXX. we first -- those expect be in production calendar quarter of

production. triggers are of that And use out eight of more, we triggering then appropriate by ramp. six at we the two have time would reactors in So that the

per MOCVD of or all even reactors are into of slightly So ahead we going plan our in plan would getting say I production.

utilization think test or be up full issue comes you get those much new you utilization How fine-tuned issues you think wafers as yields as initial up? you'll Yep. And Primit, issues running do that as would equipment? up and and you as lower utilization should ramp we ramp through about be at yield

Yes.

answer that in me let two parts. So

in different type been bringing production. reactors of having through First,

team, confident remain to of we ability now. quite that Our do our

sometimes three operation We or reactor always turn in So quickly. go now of assume various coming over always XXX% new reactor, type bring demonstrated to even we we to our to platforms, never reactors in right? XXX% a to have feel that different our to four six confident three we new we gradual plan. it zero any in to bake have, even the into our given the assume on plants. if on Secondly, is months But up brand we that reactor turn plants production on we months of

That sounds attractive and market. just very auto always significant which lastly, a on constructive. been opportunity, end then has And the

time look that at to applicable Nexperia, the as period start with that what where to Thanks, and of there auto year? over something Given because is many happens technology sockets the which there specific what's yet? generate you're your revenues, guys. Primit, is Or are we customers way there the that with best and the through are for of evolution company the would engaged back half relationship which the go

Sure.

wheelers Nexperia near the we an for partner important of of very slots customer supply like for ramping win yes, automotive with and us. and term our added exciting some customers, We've three wafers. the by XXXX have year direct actually to EV that calendar two this Transphorm’s A design that a of remains We us So numbers. then automotive year market said end there. of calendar then first also customers and getting lot for the remains in end by in targeted is significant stand shipment goal

So we are looking chargers. at EV

to at now -- are both those So solutions watt that as actively right from we are these as to well X in segments chargers onboard in are kilowatts. Asia watts from kilowatt. And customers X actually portable XXX XXX with looking chargers we sampling

two. side, and number again, DCDC wheeler first in remain number then our X opportunities converter one, the On charger the onboard

while jump done start, completed, America already China, that continuing have exclusivity, in still different Europe efforts. the of geographies, Nexperia with can with on continuing North the and actually Now and we we automotive still India, Japan

from long of our volts. term is see we increases the initiative and helped So they because new the now GaN interest customer's new by to model is GaN sampling X,XXX X,XXX and also released Transphorm -- that's Transphorm player also simulation the which and term helped have initiative GaN with volt XXX player a done, long sampling a volts is a that

you, you, Got it. Cameron. Primit. Thank Thank

you. Thank

you. Thank

the of line Group. question Richard next Capital Shannon comes Craig-Hallum from of Our

please, question Richard. Your

guys. you Hi, me? Can hear

can. We

Okay. Excellent.

is spotty The Sorry. little here. a line

me. on see first what want I from Let's and questions topic rest the year quarter may here. few the a of for of follow-up to revenues the imply it

I a I government the in you about $X.X correctly. contribute think caught said that So if prior million should

base. Is years. heard I over we recognition it to and side, product you about a could September. quarter? got of a think then expecting $XX And started a want kind June milestone kind as How make I in every You contract ongoing? then Cameron, revenues million we just three to flattish think It's the product steady It grow lumpy? quarter sure be the of in about the

product the The of Yes. through contract forth. so and solid certain flattish That's largely pretty the based It's on quarter will I then think, the Richard. be and for year. in Certainly, our right, linear. growth and course revenue, [indiscernible] government June team working the deliverables

XXXX, is see from I anticipate So standpoint, I more rest of being as go bit as the it the we through a revenue quarter lumpiness. we'll of that a relatively kind June work don't quarter. only linearity think But contract. we FY flat any through the significant the little anticipate

Okay. modeling. That helpful from forward is

potential and being Let's sense you is how three win especially year of calendar by wheelers your but jump certainly the EV of portion automotive next Will big this space, the have speaking, first wheelers year. on two much of that maybe a now? right how you the pipeline end are end and/or these mobility of win lien a three I two track and broadly about a ramping Do two wins, talked the and into or guess [indiscernible] the by on part for year. question. of

Yes.

opportunity, at to So we win. if least say look want you the That's win. one target we it, why overall, at

we looking vehicle. we onboard chargers per case I are as at have $X on the portable past calendar And XX by We of to be in talked have -- engagements right about think, in several of kind to The course, -- had end That's, year. customer win now. well. right, ramp, content $XX area charger, that we depending can going we that least of one XX on number of than plus, at wins, look of more more the to in the XX

two set wheeler, charging So we're kind calendar year is wheeler low looking mobility EV mobility indeed to a million part of something around I three million the a that. kind XXXX. contribution of that And a around believe pipeline. $X and from good our and is EV of pipeline. $XX into going The We million in that of chunk segment digit -- charging single X

in significantly more wheeler as this will four We opportunities look completed. well. pipeline segment the to exclusivity in is now add and forward adding more the wheelers four that quickly We

sounds That Okay. good.

questions me. more from couple a hear Let's

I you some seems So States, splits you're multiple your U.S. of I have full here. presume. manufacturing I talking like would automotive, Chips United you missed early, another partner it's think there, money I for here guess manufacturing Primit. would about here. the targeting be great But for it statements And you're Act the looking made to in Since geographical always

of with I'm road you would you reading and you're Act just awarded, waiting exploring do this opportunity? is how have help plans far till if kind think about or viewing kind things Chips right. So of the down fairly I'm what us or money And that wondering

we parts. got at Yes. right, the It's two manufacturing, Richard. it No, you is way are the that looking in

of funding in but pursuing also like where program activity. Transphorm. are work These First more of That are are for of commence is, sort we kind contracts. it's part microelectronics Chips more through -- of direct it's this Act, there excellence centers -- a DOD this a like

of part So couple we are of centers.

those it remains seen if to be get Now course, centers of themselves funded.

So GaN will like that. things voltage, the volt funding from will Epi. RF what this nice for Those some GaN on X,XXX be and get we higher are development

geographical funding, The U.S. a are potentially a at -- partner as correctly U.S. manufacturing expansion impact, said. for yes, you looking we

of are We initial companies. couple discussion in with a

So about just the an as phase. now next exploration just just our week announcement beyond so recently there was earlier this stage,

a will manufacturing partner, that our but the So the own. is comments we microelectronics that portion on directly that and look be with that that, forward up will scale to transformed

it. Got

talk and That makes last rights Okay. Cameron the to debt One runway. providing a quick about offering for facility you sense. related question

you for XXXX. of know said quantify looking I in of fiscal funding through or you're think the here way that most Any if don't all way between way what levels I the two? you'd help -- kind those through aggregate

certainly, debt single in $XX a million And looking multimillion what digit kind high Sure. asset in mean, of issue. dollars. terms non-dilutive I we're of rights issue something is the the backed at rates our is

on component hinge appraisal us XXXX. forth, second combination that's And those hoping will deep of the The target. so get Richard, giving values that's and into fiscal we're the runway so both but and to of on

enough. Fair Okay.

that out Thank me. you. for of think guys. jump I'll is I all line,

you. Thank

have And Williams Thank we the a the from Benchmark follow-up question line David Company. Instructions] of you. [Operator of

Your question please, David.

want just revenue. thanks. Hey, to I on the ask Yes, product

or about complete, in you're to stance Thanks. China, And that's flat that from that around just cautious if anything sequentially. if just terms kind guided seeing of then be customers. if in And wondering that's mostly inventory seeing seeing You've help digestion, you're you're anything just would helpful. maybe of your if flat, improving just the more be

Sure.

with the our So be the think, kind we in I of customers, partner the adjustment our China. the investor what are -- seeing, of of one some to we believe of inventory tail customers including end

we are customer, is other the which mix On very of an hand, of increase seeing also positive.

So in China diversification especially customer, in -- design-ins power we large Taiwan. of are healthy products seeing Greater China a with and then that customer

are we a and or shift towards mix of inventory So seeing our a diverse more working customer. of one especially two are the then we adjustments through of

one last one just real quick. And Thanks. Okay.

you carbide we'll automotive silicon a would there's moving GaN there would where that kind up. that is that we [automotive] do towards where these (ph) -- work -- the is that look your physical or of a alternative volt well. end device platforms beyond think think we'll you we're XXX see X,XXX would platform move could be Do see XXX volts chance very threshold that only volt that across system that where where you If XXX where

move increase at shift, you're a of volts. still future. Right? what it's right per That's that the So in is, GaN to X,XXX beauty now today, XXX about beyond new from GaN design not from platform to of the it's voltage, XXX the talks a of of design-ins what lot to the now se the how we are XXX volts the happening sum platform would is physical say that limited our if limit focused a Sapphire that flagship XXX volts. with you first XXX now seeing of But at no to extend as kind volts majority moving on systems cannot kind are seeing platform. volt look at on first, there volts But the X,XXX of on XXX The -- next, are potentially all, are only device volts. are are that about Right right? a we SuperGaN is XXX Also it, that again Sapphire volts. it to right could is

Thanks again guys.

you. Thank

I would the for back remarks. like turn to Sir? Primit time, closing Thank now you. conference to Parikh At this

on and and everyone forward for on exciting call, all. to momentum the day capitalize design-in we you. the Q&A listening this business. the Thank the you and you the to discussed side thank customer session. executing We to So in that, With plans have on aggressively ramp interactive GaN look good we our on

for This participating. concludes you today's conference call. Thank

You may now disconnect.