Transphorm (TGAN) 9 Nov 232024 Q2 Earnings call transcript

Thank you for standing by, and welcome to Transphorm Second Quarter Fiscal 2024 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded.And now I would now like to introduce your host for today's program, Mr. David Hanover of Investor Relations. Please go ahead, sir.

Good afternoon, and welcome to Transphorm Second Quarter Fiscal 2024 Earnings Conference Call.

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

or during the they a remarks, associated Before point impact we call. as or any of conference other statements. company assumptions, results which future and differ of statements. obligation live company these company's update company's during today's and or reason of and performance or of a business in all today's or These predict estimates actual cause presentation company through be the the Investors the changes projections company potential for light section the or operations, webcast out to materially statements Neither posted a could forward-looking can or will course where prepared responsibility financial and with to as call.Additionally, no available the such make may to to the to the the that nor forward-looking to of its results as for there implied.Any slides markets expectations. end areas any In this Transphorm's the anticipated call X, management The referencing company completeness begin, all is will assumes differ the the a management's statements conference statements of to of I'd this for to of the XXXX. as this undertakes date adversely may during regarding be to assess which and nor link plans, forward-looking factor may materially publicly any on PDF management statements extent represent the in like those conform specific link risks, person risks accuracy results may discussion. also call, to call position, It's also contained factors subsequent accessed the the be can November and factors uncertainties slide today, the website to of from the from company's occur, in strategy possible actual forward-looking any actual combination not to forward-looking discussed future those not

more a turn company's factors to with For risk you that Transphorm's we Primit? now described the recent over filings information CEO, SEC.With the on is in annual subsequent most the Transphorm's detailed Form call risks on the associated said, to report and it to Primit pleasure business, Parikh. other with my XX-K refer

Thank you, and good on afternoon the call. to everyone

revenue strong million, We XX% over are expectations. of XX% $X.X XXXX and pleased million, the to to $X exceeding report as fiscal our product year-over-year revenue grew quarter quarter a increased second prior to

our and margin The grown pipeline momentum gross higher over design burn, Call. each delivered further Investor also exceeding strong, having to in continues We expectations. X% our cash our reduced last since be by very

was GaN more to where the in at evidenced reliability, range today the make comprised GaN key larger to like by high-power and to pipeline of #X with be started over TOLT, as IP government negotiations. portion high package, packages of under mount $XXX is product We the end published contract Pin-to-Pin revenue the areas, superior dominated mix advantage government Transphorm segments high-performing million. the sampling of due from unlocking targeted first topside of that reliability company paper every technology.We lower where products timing the also other nitride. Transphorm as product revenue came Overall, performance the continues surface market TOLL high-power and carbide clear XX% GaN silicon superiority with Transphorm's MOSFETs. most has by government address world's the GaN our replacement The recently our and other revenue to products high-powered now another XX% in revenue white than high-power continue of have Our offerings differentiation.QX more include Transphorm cooled quality million product performance outlines $X.X notably and in about a E-mode just gallium was advances, as in competitor, GaN. a drop new A to well capability by strong the that product now of that over

our first the wins.Now corporate in start lower customer system high-level enabling continue have X. update. SiP I to through a We especially with will package in recent power additional multiple wins area, going strategy, Slide

remains Our further million high-power field, demonstrating hours and more reliability. our our than superior surpassed products $XXX we pipeline billion grew as in the our strong GaN in leadership to over XXX

expanding high-power for X leadership micro power vehicles, servomotors; centers, X-wheelers. machines with followed data industrials, and key and AI energy are verticals: We blockchain; inverters, and wheelers electric X and in computing X by including UPS and initially

a physics-based Securities, delivered our revenue penetration as our with previous in our our BofA GaN of from package with quarter, as quarter.Second, over ongoing in strategic to we the delivered our and financial strong in coupled benefit announced review of sequential the to act the side benefits stockholder with previously recently product E-mode adviser growth revenue America, connection that low-power increase third system chargers in as expect growth to Bank we versus value. as growth robust the superior reliability notebook to by continue We enhance continued see in well pipeline, current well engaged product the partnership GaN.Having

with may include of in Given we pursuing company. the with the GaN received macro multiple help the merger options Bank interest coupled of are parties, both inbound America, that from systematically have third we continuing of or sale power strong interest

on yet reliability Notable voltage of not ramps exceeded securing vectors an its has end XXXX.Now that wins I debt full previously reported runway taking to XX the is total competing XX discussions possibilities delivers from with well secure dynamic E-mode from at product nondilutive revenue E-mode into in-depth realized to reliability E-mode GaN discussed, fast our watts XXX from majority is well It $X over than as certain million are product to was on higher We in will of work in to superior fiscal quarter. due the our GaN, space, D-mode normally our offerings QX, least the working sales secured we expectations, X in of unclear having we the which the XXX coming chargers due we Foundry.For more is and of to customer smaller production. with we for as worldwide As due more as Slide financing high-power, new die worth design-ins, metrics leading review that execution OEMs GaN the moving us. than licensing noting XX% characteristics. and that multiple at on X for financial next key X. which performance top our to of off the from effectively efficiency lap now low-power from

our are increasingly the We pure-play are across gaining the design-in best a of only now products, and XX in with than over first products for which in for the several Transphorm's mount the the new our are high-power power of over chip. from integrated portfolio, X stand traction is more kilowatt companies TOLL market, XXX with X knowledge, package segments over at broad-based last watts package single preferring had that released.To Adding products today increase and surface customers system SiP, our XXX still Transphorm update, ramped have from production. GaN more now and already GaN Since company GaN. design-ins to with SiP now who topside and X.X of driver XX% a X and controller in packages, rapid the in we in to strong high-power sequential TOLT notably kilowatts high-power diversified our and addressing with our levels we've more record we who cooled are design-in introduced in to chips partners a strategy ecosystem

for high-reliability We high-performance are and with working energy the in customers space this microinverter parts. leading server,

from IC possible with performance a resistance, i.e., product these products and the be growth.Our volts volts supplier.Recent standard for in sampling certainly excels. gallium drivers are qualified simpler the X X-pin a SuperGaN carbide volts of superior contribute case with to progressed With attractive is sheets today future with the XXXX and chain where revealed that X future this on interest from the for replacement the increase TO-XXX reliability carbide industrial weakness models this exhibiting will coupled also ecosystem high-temperature are carbide. in X-pin compatible supply reliability something and not for is top MOSFETs significant TO-XXX GaN GaN voltage nitride. Transphorm adapters, to for of as hours gate after cost promise of XXX cannot some E-mode products our automotive. and pin-to-pin revenue it for with These, has GaN from used GaN especially E-mode latest partnerships data the sequential low-power well GaN the MOSFETs XXX% dynamic silicon full anticipated that GaN and high-power the to over can is high-powered Transphorm -- at with controllers are also XXXX And testing. losses EV lower GaN, the inherent structure stress are drawing GaN kilowatts and who a may testing with even view customers, then an losses do acceptable that automotive We global exhibited starting foundry XX% silicon due and XXX while E-mode at be with having server, companies silicon Where just versus leading

led our over few added operational fiscal a We towards high move expected on start capacity we costs target the as next improve low-power capacity aimed and wafer to epireactors, products, by is margins reactors subcontractors from both capacity for X aggressive well to from slide packaging efforts Our while now. at qualification the continued productivity XXXX. Japan as year and further our growth of improving volume higher global to as quarters.Moving high-power our

initiatives. key me manufacturing turn our partnerships Let to and customer and

AFSW by remain short installed waferfab previous in fiscal million $XX fiscal global can to of revenue, of be at ramp fiscal ownership reduce current and be we annualized microsecond to year production wafer maintaining reactors interests also X XXXX Our continues ownership parties capacity joint roughly consistent for waferfab on MOCVD in X manufacturing while Yaskawa, add a and the to products third only incoming for circuit are of and XXXX sufficient from place 'XX offering expansion technology target updates, package venture, end supported.Our and scale With about ongoing X developed We development, leader AFSW of partner in that levels has and could with control out with wafer both and our fiscal under qualification fab.Ransphorm potentially operate comprising to rating, now in the plans has our effort of running worldwide X in a XXXX. the expected now of robotics. efforts or 'XX. with a product the in have levels year various done IP reactors of funded motion to the half in our and looking third GaN and

X We XXX gallium over EV achieving XX promises nitride.We charging towards and which closer from XX growth release the EV modes, watt space in EV to also with topology inverters enabling X in more a targeted step paralleling, scale supply a device the single XXX step half X-wheeler X-wheeler parallel with of achieved and and used came important phase, single kilowatt kilowatts charger XX in watts bridge and power designs. inverters X one to when wheeler also without an our any

X India-based ramp, top ongoing next year. successful the X at of to OEMs that have expect We we calendar design-ins

products, that gallium are before, of with XXX NSTXL the U.S. first a our charger carbide. We million million automotive our customers in now, far have FY quarter AEC-QXXX received progressed nitride of fiscal bit under as government As in discussions 'XX technology.Some $X.X silicon more leading awarded qualified with have program engaged little EV develop Automotive a on than customer worldwide Transphorm converter from thus we $X.X to was behind in replacement we QX future the volt applications of regarding early stated this to a and exclusivity epiwafer payments X-wheeler performance OEM, then of XXXX we award. volt and on efforts engagements received including payments potential us for manufacturers, about with and in

least, with Transphorm would we fiscal enhance licensing place Act XG fab Slide whom various also of We the be in not are some manufacturing GaN a for Southern secure in Through the to discussions to semiconductor the led the on production GaN in XG of meaningful Microelectronics are is for of XXXX.Last enhancing but nondelinary some result funding CHIPS Commons University RF significant program to our capital Trust. under U.S. Act. by parties, also in could manufacturing, California that CHIPS planning This where this through participation in of our for for X. and coalition support epitrusts.Now expect part of

space beyond.With performance, enable continue footprint systems roadmap improve IC to fiscal to based our to subcontractors low-power IC in capabilities licensing higher XXX systematically This will to Transphorm's cost positioned core other segments, line switch, robustness fiscal revenue in to and to with our like and other and value, identify with merger meaningfully low-power you. offerings space, SuperGaN watts. the progressing sequential power.Third, larger while and and large our on are companies impact the current high-power offerings, from following or packaging profile, superior through volume GaN GaN lower and company, X-quadrant products notably sale you typical adding getting both of with topologies into enhance improve with volt areas:First, our foundry term to GaN runway well cash revenue fundamentally high our products of with the both In the in power and and it our production strategic now ecosystem application costs.Fourth, following year the margins of XXXX for capable volumes, be XXXX.Second, accessing closing, new options level the progress BofA more Our XXX pure-play only including priorities motor strategic secure high-power are performance like in again extending in firsts, effectiveness of areas. assistance Transphorm like Securities, GaN, potential long as worldwide drive spectrum capital the through product and bi-directional Overall, are growing products pipeline. of into into our E-mode one partners strong power fiscal achieving the and is battery Bank and Wafers the full to we defined financials. system the circuit even XXXX year new to power, enabled transitioning high-power, markets high growing evident this short solution captured to companies Across partnerships conversion as growing towards technology novel world, gallium low-power walk expect best high-power. term.In through nitride pipeline emphasis pipeline as lower on near and in our power will of all growth faster of products of our reducing GaN QX such and reliability our to wins with GaN. package design-ins the by both well well as sales for in other over targeted to the process, higher coupled revenue for model cost applications of and review and in debt growing supporting the and superior are continuing All we production term revenue. our about the semiconductor to of SiPs, higher nondilutive solutions EV as that, XX% well growth shareholder like America, as and as Thank portions reliability long volt product convert over I ecosystem the our hand the Cameron and our

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

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

quarter release and will which was income the million and For total exclude in my depreciation, reconciled remarks, other and a Product of GAAP of of year. year, quarter of prior and $X Non-GAAP in are an increase were results, quarter, the in increase with and XX% same XX% the quarter compensation, I last the expenditure.Starting product statement, $X.XX quarter and comprising to refer same to our press quarter amortization sales the government the GAAP both prior XX% decrease over expectations an non-GAAP and from last this results revenue stock our excess to GAAP in based represents XX% the from and non-GAAP income table. million

has applications, product and revenue a been fast of Our data driven gaming range broad across chargers and conversion adapters, centers. power including

momentum continuation we customers sequential to quarter. product was see in revenue the current anticipates Primit, to in company revenue production.Looking with continue positive the our our Government a $X.XX future, growth by immediate million of noted the quarter, of in successful of program. the $X.XX million our last million award quarter, from and the by execution driven new and the year-on-year prior year. This $XX increase quarter an in a been $X same government decrease of increase has the million As

margin in the will higher business remained the from the remain in government margins revenue and Direct when same prior company last was and over to The continue this is delivered quarter. prior margin QX.The particular quarter the solid the will driver businesses. contract for by anticipate revenue increased gross in business. The for We XX%, attributable quarter of coming largely reduced quarter. We reduction from prime the compared see margins at to the done from to revenue largely from quarter in our from here with our anticipated that current XX% the flattish the year. quarter overall the quarter, our the down the government stable to the in revenue year higher program product XX% prior stable was quarter product prework inception gross

will and and gross of product progress A ongoing We XX%. an including the continue anticipated introduction, activities to Coming receive to as to traction customers expenses current we I targeted and on our in X% and see by Spend in million compared -Operating are improvement of quarter was grow current EPS flat the both $X.X number remarks non-GAAP when that non-GAAP in evidenced largely continue down actions, we the perspective, and production to in model basis flat. new my from here in to on remain excess towards The cost prior From X% the a quarter term design to expected scale quarter. EPS, continue we this for is quarter. will efficiency to our contribute markets the to were benefits prior operational the as focus activity. a of non-GAAP margins increase. results. loss long solid quarter,

As mentioned sequential earlier, growth company current anticipates the product in revenue the quarter.

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

March cash We to at growth also now end equity $XX.X as in our from invest engine improved $XX.X at company.Coming and procedures. million. of in from continue million capital from business the the $XX.X June. management quarter, collections, term including ongoing million quarter was burn, in by significantly balance $X.X Operational investment, spend receipts This million driven tight the the decreased shareholders our increase was the primarily XX of million sheet, excluding long to an and $X.X government the to

$X.X million quarter, debt enabled in received rights noted our quarter end, on sheet.Cash prior issue. equivalents cash were the its balance no through the million $X largely the and from As has at company

term. these debt facilities in to continue near and to completion expect the We conclude towards facilities progress on

ensure opportunities we highlights. to that GaN, growth, our Exchange, able systems. robust a production continue Looking the growth to now our wins power remain future global continued on NASDAQ strengthen publicly invest in next-generation a further are made design of to ahead, key continue in the the and progress through to in with Transphorm, is with order to few our we sheet open listed customers.Concluding a possible leader to balance

is a opportunity class in best a disruptive, in addressing strong large market With pipeline are commercially place. we Our growing technology ramping.

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

like IP remarks to industry's proceed of team.That we strongest chain a supply our portion open concludes any by please the and questions. deep prepared on talented Operator, the to call. this All materials, a underpinned with call and Q&A and is position, now the would of vertically-integrated the

first from Williams question. Instructions] [Operator moment our the The first One comes for our line from Company. Benchmark And question of David Certainly.

you about progress continued I with congrats speak the ask through process to little on just the again, strategic Primit. good that bit guess certainly you're side. here. It's to wanted and a on the going I first,

maybe talked anything, there having to provide ongoing that You of that's there. of can interest leaning optimistic? there shown understand us a things gets I types terms interests how in anyone interest further about lot today? color and are some about Is help where you thinking just really strategic guess, any the Is of review? this you more Or there you're

David. you, Thank

opportunities. we can channel we continue to talked for a most there, what important Bank in and these soon all can [ due process do Securities, publicly. so think We help for to so will become message, onboard, hired this a that channel way. that interest, in-bound can we are systematically all the the definitely, talked, as updates the we through on BofA we due. as update that key of Securities reason, systematically us interest can that as America that's about, I the of But thing -- BofA we this these getting did opportunities That is we we ] share

terms week quite And this terms probably review the thought publicly in Yes. a just glowing of your GaN one to just opportunity.Can you your that think talk and being how you about heard that talked about us GaN earlier peers about before was about we've of I've it in silicon in bit that there, most also we this carbide commentary, it But the I just interesting, or But we competitor was it past. kind a least there And standpoint carbide, feel and you opportunity, cost color that it perspective, that that where in how there especially as of feels de kind from facto at standard. that volts are displacing silicon XXXX really the any an of be GaN just maybe helpful. like the feel? large could become range, be and a would Is and and would efficiency matures a today? of heard

We believe David. right. in No, definitely thanks, that, strongly

So carbide. today, is there if the the intermediate and look side kind not and much too space, you high-power low-power at of power, silicon

and the volt interest the the for even believe announced right, silicon many freight.But in course, lower coming GaN-on-Sapphire.So, that other but of no than all to for for has But carbide publicly application. XXXX been before carbide areas. was our of areas for node micro done just for on And both think volts results companies -- Of other with UPS, now for silicon there XXX structure don't volt inquiry GaN, strong well battery we XX% volts very GaN we platform, with exciting about, are XXX cost the the this according GaN side, that I for that's Transphorm has XX% automotive, side, GaN, have of carbide. automotive XXX this us, physics, inbound very Transphorm know and XXXX silicon those losses reason GaN-on-Sapphire now node shown for have the to with interest battery into is that on is losses example, has half than harnessed in the I physics about for XXX question automotive lower GaN-on-Silicon volt for affordable we then XX% the should our server, inverters, volts and

definitely. exciting, So

the out adoption. the year congrats GaN turns hearing the looking of Well, certainly further and rest forward and great. again to on progress That's how

And Ellis our from next from line Craig B. Riley. comes question the of

seeing calling and value? low-power, sounds activity is I level This Widell for activity, like some especially in to in demand? Ethan you Craig high [ high-power. where and start, guess Ellis. nice ability you confidence what And your between it To ] engagement design and have are is more fulfill and your

Yes.

especially we Transphorm about package, as we that, area segment, the low-power And to offer the about come high-power said in we very high-power. that we continue so-called SiP us, with in leadership And easy partnerships architecture said architecture strong our with undisputed a have in like for high-power talked That to our our by system want GaN, again is scan. of better partners on have good ramping where do the before, it's revenues drivable establish because of right, open leaders and is. from that extend of and XX% leadership is IC performance of the reliability high-power. one said, course, multiple or it, enabled we easy, So Transphorm with we

clearly So is in terms is segment, good leadership our to focus the there. market.In share revenue want high-power, we of fair demand. that XX% our fulfilling a win in Low-power

there. for We capacity is has there. fulfill in heard call with [ in part sales support been ] important One focus up plans demand increases customers. you continue an and as fab wafer epiwafer worldwide. second, capacity, place our things X And application on the do our capacity coming and and is our stable footprint to nicely, and to to on That's FAE sales that sales, field continue

near reasonably for areas well X key with So are to I the and those set talked midterm, fulfilling the we demand about.

is to equipment still speak over considering? And an you're the that financing And then cash you your could next based whether few option quarters? burn expected

you, Cameron Thank here. yes. Sure,

is and our So to near significantly X.X down X.X the I brought from level see I one the we that for thing it burn current future. in hover cash will think around likely quarter, the that

mentioned comfortably XXXX, debt our and the facilities, at we're The of stability fiscal I into actively opportunities. bring would his thing us, remarks, near sorry. hoping licensing combination think, pursuing also conclude looking for is in that Primit that financial that primarily in but to prepared as the -- key we're term

appreciated. Understood. Much

here. to and with to, we're our an on we funding. is That thought was other continuing of open potential I leasing avenue equipment avenues that Just, the finishing remain along that pursue

Instructions] One moment Ananda Baruah line our Loop question comes the next of from next for from Our question. Capital. [Operator

could, If is review, to any be for there signpost just of? I us sort at back, that any frame? time I be going a guys would strategic Or are the to aware useful Yes. time-related few. guess, you Primit, looking of that

Securities BofA we on, We'll thing I be are I'll process. public when due, is are due, drive them systematically in updating are as think, with to the we hand progressing are updates and definitely reiterate to here. now this hand BofA working key key with but Ananda systematically with very the updates there, very

sequentially you've seeing What's the And the to ramps product think really roadmap. lots us in like think you a see low-power wins. manifesting to what's portfolio next And product be about super seen useful XX high-power guys product context way way momentum for going underpins, seem of us The the Okay. that months? given amplified high-powered the the for of over last any days. design that good dynamics product and useful impact useful are activity, sort too. into revenue XX calling they like the in about, activity, revenue, to then just given design of growth, to in the both and wins would to a across The what's you're continue XX to

we Great those and we think just question. today about and our with are way on customer. where The based historical experience

heads just especially, the were higher. is It are our the cycles again, we months. we And in be a think the reputation the last performance just XX said, side, the much.And could this sales to was -- XX it, few the we way high-power field from quarter, long and from and in low-power design-ins result in quarter. XX% which the helped of us so on a we the growth adding XX-plus slightly all, to of by conversion and grew pleased about the one XXX-plus versus in products' design months First with XX% term, expand like very Asia, high-power,

scratch, XX from XX design be it new even brand to months. a For could

XX good months we but rate. been derivative If product they months. historically, And could as XX% XX% other X as it's fast a tend but faster lost strong the have a very X conversion high-power. a our it ongoing, plus.And high-power brand months, from than rate rate OEM large on still side, the ODM, the very be usually product, That maybe mean even months. X be large success On say be is low-power, to around more with doesn't new conversion on has could had

bit fragmented. a why more But be On we the adding. that's low-power it are tends to

step, actually magnifies on XXX-plus, partners we We channels ongoing. channels have start now it X more chip own than partners SiP that because next these XXX-plus SiP, we quarters nicely taken our with that something system sales to side the with X, in adding have And XXX and our revenue application expect wins we is have. of --

amount And the to right high-power follow-up how could in in what is -- the there the just of to that of the have guess to of of I sort just in you guess you is, time, are in XX actually today, have say XX that Primit, but spoke that? both in the just you a the the over because you're the in say, given me I'm impact. double XXX Of in production of wondering on, I any last field now, in products And did XX timeline bigger which gave, now well, time the you is just it sort you have, is Is say, that those the XX months, production the usefulness XX that's frame months? to production? to, that the next you products interesting, that given products -- right layer let high-power, the useful is

can were sorry, ins I couple question. I couple in correctly, think have. believe XX, next back ago. were of where Again of we we the remember in of about, and if a XXX-plus No. of terms I -- expect out I the a months Good XX-plus, would design where I we look quarters mean, we ago, say the we

So production. are in XX-plus

XX, say right? would our good, of -- can next around say, you estimates if are XX ins, around to XX% XX months, So I design XX the that. still So are over XX

out say XX%. the can you about So of XX XX, to

So there'll be like more XX, production. of would them get XX into

than today. it. yes, So should where to are look from a way double good That's at we we more

designs-in Cool. was you sequential by driven the force the the mentioned XX% new primarily sales to And the incremental messaging force? high end sort of just increase sales be was in that

have, in why helps. coverage it That's benefits silicon and products The the the No, alluded billion XXX GaN but reliability benefits to coverage, and -- the versus it's E-mode the coverage performance hours But it. the driven I field. actually helps we definitely by versus proven primarily carbide.

of get Just Right. can coverage like a or suddenly X, XX you headcount accounts. more

helps. definitely that So

Got it.

out these I'm spot a XX% of And so, something sequential it, it sustainable? is, bit these guess there I a it's trying of tease these XX sequentially? ones something hit is you stride, not now? is sweet What hit but so sustainable like Or maybe maybe more structurally is you wins, are kinds that's know if to a I of new -- to speak, And such increases, to kinds -- sort really? that I guess this that's of Have don't design-ins? Q-over-Q, Do

were were we I think quarter, right. with where very this pleased we

good design-ins past, X right. more. on believe we've terms we This and It's So to went a so if ago were side, XX, very added. we added quarters then the quarter we healthily I in look we had been we XX time added I think we adding of at high-power new XX.

I will But XX% -- I to think look is mean, are is performance capacity promotions But the be whether products look what say we there, we we the healthy the each every forward increases, now, we and quarter should there. a to quarter-over-quarter. should increase. manufacturing I we yes, increase, there, So, should gaining right? worldwide a cannot increases. cannot And get are footprint Because XX% these with

headcount. single months marketing think can I we've I sales the sorry, coming from has that -- what application increase significantly Ananda, been invested XX is operating look and and today, Certainly, additional you spend, and momentum in to back biggest marketing in see sales and start the if to our

from line And next AIGH Martin comes next for question moment Investment One of from our the our Partners. question. Aaron

first the the it's talk should year How obviously the of in you those win size We're EV expectations perspective little design-ins design-ins. on your about had X-wheeler of we kind XXXX. think kind EV the Congratulations ramp to a How I you and relative more X X- X-wheeler of end currently -- Can of designs the sizing other and the a of about compare market? think, terms have? said do multiple for you and I and looking you're designs bit X-wheeler the in that you by with some design from a much think a the, than there? talking ramp. And further along

for Thank you that.

exciting. definitely is it yes, So,

we customers, get compare a at if are but much in are size design-ins or say, towards or XXXX. calendar a opportunities be customers can And The won, design-ins X, million onboard more versus, size, around still to we year in in be Asia said charger say, bit and behind are charger X-wheeler the to as segment ultimately we the win such -- first of in reputable X production of XX-plus these million-dollar year and growing or -- right those in But UPS where believe we charger X- little and the time. stands now, the or out to, X-wheeler next as onboard on X-wheeler X-wheeler X this if larger the we the server it by or year the design-ins we a even space $X that, initial will look XXXX XXXX. it from much design-ins coming inverter, of out portable on as EV. in a we we with We the the or you blockchain we inverter, orders on before, $X in end targeting, EV XXXX. charger and it opportunity and other space.So India then level, of very Not and expect engaged question hit the power speak. -- our ramp poll have top Like X be have. the in level the engaged expect level we calendar but this actually beyond are at X And with each design actually these X-wheeler million-plus charger

then -- Okay. you really X that? design wins in enough for ramp more these than are for these the that's designs-ins XXXX, or expecting X And design-ins are

No, working on. to which also design-ins get we XXXX, hope for do more are we

on Congratulations the Okay. progress.

back Thank the session for today's you. further remarks. Primit I'd like This to hand program program. answer the and Parikh conclude of question to does any

next stay products this our momentum time. product expect our margin growth, then No, thank for design-ins by backed down the runway on and and continuing keep we executing and well along new have very revenue moving and strategic much, to priorities and you review cost of competition.Thank till you continue executing improvements. on to ahead And the product our growing fiscal XXXX, the you. and extending on secured that we attention cash into with Thank today, with

conclude ladies today's you, for Thank gentlemen, participation does your program. conference. This and in the

Good may now disconnect. You day.