Power Integrations (POWI) 8 Feb 242023 Q4 Earnings call transcript

Thank you for standing by, and welcome to the Power Integrations Q4 Earnings Conference Call.

I would now like to welcome Joe Shiffler, Director of Investor Relations to begin the call.

Joe, over to you.

Thank you. Good afternoon, everyone. us. joining for Thanks the Power are our Integrations; Officer. on and Chief Balakrishnan, CEO of and call me Balu today Chairman Financial With Sandeep Nayyar,

press this and quarter of our exclude measures compensation expenses, A to release. GAAP. During reconciliation acquisition-related non-GAAP measures effects stock-based will GAAP intangible of of included according items. assets Non-GAAP fourth to calculated in tax results to financial the for amortization we call, the measures today's not is refer these

from including expect, today, will expressions forward-looking anticipate, discussion today's or to discussed events XXXX. XX-K session, February uncertainties risks Our are the will, subject release Such press filed those include on projected are future similar risks most cause statements Q&A that with like or words would, and differ and may statements recent in implied. X, in actual performance. that toward and denoted outlook, our results by SEC Form the look materially believe, Such should, forecast, to

this of is the Integrations. Any written the Integrations. property of consent Power is prohibited without rebroadcast expressly or recording Finally, call Power

I'll Now over Balu. it to turn

Joe, Thanks, afternoon. and good

quarter fourth soft and we lower headwinds. supply as revenues a demand about and revenues result expect reflecting chain of inventories, to quarter continued these were elevated first be expected, sequentially, As flat

terms, expect during dollar channel years, and inventory In X as quarter the in sell-through of further week are by fell considerable channel decline QX. exceeded lowest a margin. level while However, by in than is still it at above we more inventory sell-in a our normal, we

consumer the appliance by to bulk encouraged related of especially the are market, which We inventories accounts for category. the lower

the in exceeded back sequentially and quarters far channel normal the level and based last are terms several lowest on and seeing to was the throughout dollars. in consumer in customers largely X we up sell-in, for year. weeks bookings from that sell-through of inventory Distribution the to QX improved inventories quarters, have considerably in customer past dormant End uptick are also over an bringing

hampered in be were below shipping in even could by in are appliance that end is poised While a demand the being below we our consumer recovery revenues for well XXXX, and XXXX. housing, clearly downturn levels suggesting the of pre-COVID demand XXXX

expect we improvement way overall half in sequential to fact, second consumer more year. to In we in a the begin the meaningful the growth as quarter lead revenue with of see June the beginning

than growth several are While growth a more XX%, XXXX of revenue that was year strategy. were areas difficult long-term our to in with pockets down there key

second of annual projected industrial high from XX% had even Our year wins year. year driver down revenue the business outstanding than in wins almost of value the growth up design a consecutive more as of design broader power prior with in We had high-power category terms the was an XX%. a

the Renewable received market. we link an growth the project QX, announced and major order the also as major dollar for wins, connecting multiyear ramp design utility farm North that but to transmission wind mainland. the our we energy initial later an driver for DC of to undersea in scale, Sea In year. solar a with wind up multimillion this award purchase prepares adjacent high-voltage was significant the call, in not July On only markets,

bright of total Another spark was approaching and sales. in increased XX% XXXX are where revenues India, year-over-year

rising production manufacturing rapidly and and expanding in-country moving out not level also design for China, including is infrastructure. This just of a middle modernizing the a domestic market of of class but a result

our are drive DC ways a number in significant BridgeSwitch fixed motors, converting brushless ceiling ICs. with smart motor XG design participating wins appliances, utilizing wireless, of including in are which utility and We meters fans, to

locomotives. We transportation in in to and from everything buses electric also opportunities X-wheelers design of have a strong pipeline

in wins DC-to-DC as XXXX, battery drivetrain business of Speaking and and pipeline high-voltage our applications our micro design expanding which, XX-volt made racking replacement we power, converters. in such in up emergency automotive tremendous EV progress

InnoSwitch inverter levels iDriver stage than benefit products regions space high car of count EV of qualified and with traction all reliability grew are across in also in progress require XXXX automotive design and XX% at are by the which most brands using suited extremely pipeline Our Tier our and component from applications. major savings or various shipping opportunities well scale Xs Meanwhile, not our for low sample these of the vehicles designs. but efficiency, applications, Eight more now OEMs. designs only

production expect this later start year. such We designs several to

only introduction of not was but GaN breakthroughs, GaN, and switches. X,XXX-volt growth, also revenue success key XXXX technology Another XXX-volt in terms of the story including

overlap designed While GaN as advantages time has significant over of technology cost over higher we our capabilities technologies ranges we advance system-level between silicon the carbide support near it increase announce in proprietary and the we the we expect out step foundry-based road And the to other on can expect voltage voltages, that by suppliers GaN map the and our future. bring to are and next X address. products. technology, in more GaN to power GaN limited further

opportunities GaN recent anyone activity, else the automotive, data participants and and technology in appliances markets mobile assets technology and market scarce by are transformational M&A has or Power a Proprietary potential in power market. high-voltage with recognizing in be more electronics to the center, Integrations such know-how in the indicated of As GaN devices. huge as than

showing scheme came power a with or or switch ship introduction XXX versus GaN the product with delivers enabling our up with standard very InnoSwitchX-Pro, capability approach combination with XX-watt choice for InnoSwitchX power with with count, We typical XX% GaN zero component of switching single over of shining USB a watts. week GaN a of demonstrated is that size with efficiency than in to better half which X volume implements adapter more of just density switches ZVS designs. and required less power. last design efficiency high-power The of notebook ZVS of this PD the a novel only of ZVS GaN will GaN than with switch. cubic XX% high-efficiency low a charger exceptional and the voltage chargers example XXX-volt to latest conversion XXX reference Our inches XXX-watt control new marrying system-level X.X technology,

challenging and XXXX conclude, down has the was current To been year, a cycle while severe.

a control, in and We and opportune have includes weathered capacity it energy quarter and while that motor in renewable the slope playbook upturn. has sticking buying growth be continued by building follow. downturns. well true to includes we dedicated back with ready protect includes us debt start stock market. of our inventory half served And QX moments we did along It That better India our to foundry EVs, past it indications expense as in a for is second good in the uncertain, at second with to investment sequential strong recovery the will to that GaN, drives, wafer see

to With review turn it of a I'll that, Sandeep over for the financials.

revenues to middle level $XX our diluted thanks a Thanks, in good benefit. earnings of while guidance, non-GAAP and range, in share, above operating were the just under afternoon. Balu, the guidance and our quarter lower were $X.XX expenses tax implied million Fourth $X.XX per

ago. earnings non-GAAP a year, the million, year revenues down $X.XX while were For to compared were $XXX to XX% $X.XX

held focused in believe from to a as compensation of the X% challenging on reduction always. this long We expenses without managed high was less have non-GAAP term we of financial while a the business than inflation in perspective, While benefits. growth year staying employee spite we prudently

extreme normal despite of gave practice pressures price we the benefits insurance continued of fact, the and above average In year cost raises market. of portion last our paying an in

for investments double products we making XXXX. GaN our Balu automotive SAM will growth, As in our maintained expanding development the and noted, presence by this discipline necessary our continued long-term on our expense efforts, India, that including while technology

under from quickly the Now up quarter all prior $XX questions. outlook, the I and open end recap lower. the categories will then were will we quarter million, down XX% market with sequentially and for results the for X Revenues QX it just

decline communications expected, down the with about As XX%. a of was most

last we serving we quarter's handset on call, previous Chinese distributors restocking the supply had As significant the chain. quarter by noted in

drove related an revenues non-Chinese in customer. the from elevated down driven prior each XX% in steep again the demand. inventory quarter, decline soft at a which Consumer XX% computer saw correction correction were Industrial decrease about by also The QX tablets, about and a category. We handset also and affected supply to inventories a of chain

$XX.X as was the the quarter at sell-through XX.X gross prior as for XX% fourth the communication sell-in continue end operating million. about million, computer. by market below while exceeded driven mainly XX.X%, by lower down expenses spending XX Distribution than our for Industrial, to from $XX the quarter mix XX% volumes, $X.X quarter from carefully for X% margin as and in by were the well the long-term more we ended quarter, XX% sequentially more points a million a week partially manage Non-GAAP Revenue our forecast Non-GAAP mix. favorable was quarter and basis Consumer, weeks, prior down offset prioritizing quarter investments growth. manufacturing inventory down

which had noted in fell million, resulting repurchases. million GAAP the diluted to benefit quarter XX earnings share. $XX.X from GAAP by earnings FIN $X.XX the the tax and fourth non-GAAP average a in negative X.X share on $X.XX quarter about rate by reversal effect recognized of count the a XX tax GAAP $X.XX. Weighted larger per about results, FIN of As we The shares contributed for earlier, a driven by of reversal reserves, to share

at at operations number. flow end, Inventory largely quarter up for from XXX lower quarter, by the the quarter driven days the $XX.X million. days revenue XXX Cash prior was were from

wafers As customers of products a inventory result the in fungibility and held applications reminder, with bulk risk our minimal in which the combined obsolescence. of is of across

as June inventory days to down quarter. We recover trend in to starts the revenue expect

average in X% cash share for XXX,XXX Other million quarter during for during included million $XX.X share our largest $XX. Our well the $X uses just of of of We quarter repurchased per shares million. quarter, the for price dividends. above $XX and use fourth The under cash was shares was CapEx the buybacks. outstanding

was CapEx cash million sales. our stockholders in during returned $XX cash million, form more flow million, buybacks the below X% was of than to $XX flow. our while $XX and of just year, For operations free model the to the X% twice dividends of We year, from

the outlook. to Turning

the or plus for $X be to We $XX quarter million, expect first minus revenues million.

quarter for by the Non-GAAP decrease I to wafers and utilization sequential rate clearing manufacturing June to rebound to the gross in in way convert and sell-through again margin a growth the resulting in in exchange yen be goods. begin should quarter. higher approximately inventory as another we XX.X%. expect for driven expect finished gross the margin favorable exceed QX channel June more in We sell-in,

headcount reflects the million should be The and employee resumption first expenses FICA recover. operating higher a benefits. from industrial better the fourth $XX.X I also quarter consumer quarter. mix around Non-GAAP the for expect increases, as to premiums begin markets in of and taxes increase

For high the I OpEx year, non-GAAP the full single digits. expect in to be growth

Finally, the to I year the expect around and for first the tax non-GAAP effective be quarter X%. rate

the begin let's Q&A. operator, Now

[Operator Instructions] question Our line from first Christopher Rolland with comes Susquehanna. of the

maybe the up or dynamic I see know looking want down would quarter, guess, inventories, be What's great. illuminate per end you I out? guys if of you rank -- if And into versus don't you could those. to playing how what's next force kind market flat,

as channel weeks would down segment the consumer highlight normal what computer inventory to XX.X So had the we but the indicated, I in, overall came and down was levels. call the about that came

this which is a that looks mentioned the about consumer as revenues, current on the are really considering I've further And revenue second levels elevated still going what little in based of level it's quarter well industrial. the and for forward. in segment it like, bodes at normal We

inventories below at expect -- in -- XX the quarter. the channel I of weeks we first the be to down further and So end come

do rank the force was and be Yes. these dynamics actually versus which which March, No, play markets. or Where the I out down March, you how might flat, end in most inventory, up, talking and into about do sorry. have be might then

while was industrial the customers. our the levels channel our is to also low elevated result, that's as above to getting Chris, revenue that the and normal will very what level. level, level and I at computer mention the consumer if and probably and guidance at our what's in such a in it's our in consumer is in means state already level it's become as at considering level increases, a has channel actually even inventory, are things the that What normal, where the down are the impacted consumer the and that's still which tried talking category much and end I a below result. Yes, that that's as is what's become was as channel about, channel, with that

Yes.

remember, are terms, are the -- You you below dollar if are million we a weeks revenue. because normal, on have our $XX well based normal in to by weeks,

really customer for As which buy revenue is it that it to grows, have is the for becomes They problematic us. -- if is low. products, it good

I hear Maybe allocation. Yes, capital Okay. you. something on

Sandeep, for the at this on feeling what or nice quarter, doesn't work would can of How thing are something doing day If more in trader. the I think could you buybacks bottom? like cyclical be this on level? allocation kind you the M&A? front, looked and So for -- if this, that? you Have buybacks a guys are you capital particularly entertain you But you at chip

a Capital X-pronged Chris, approach to as about, we we Cam. have talked have

that you we from next year. single investments more in as will are make first talked belt the about investments. for over capital being well And We've our The see and last see, you can the few expense as we years, working investments. we high to tightened need the digit investing internal as

of add you're in have that motor to XXXX, back a So see in going held see be about, you whether bit to initiatives headcount quite whether investments India, I us whether the be and GaN. it in count though talked to it and see, will automotive, our support control, in Balu, it be even head we

complement and second our will we or looking The that M&A that always us think are is we we've can expand thing for which and talked angle, either help about, technologies SAM. at will look always I as us

and to really I think, is, is we time last did and something the not we buyback of at opportunistic, as back, are that, it's that. that tend that The to do like buy quarter the buybacks the it's I going I comes We you we that I and think story. continuing the do way presume and are price rigid, and change are it. all that look we opportunistic we not stock that. always to So think an And we as

know or one last dividend and you the so a And quarter was again. the dividend, the we upped ago

is than X-pronged the So it. now the something we've with think in things I more think following every don't happen that looked it and others, is anything board, some the but approach been that at will frequently change I of quarter aspect

The from comes Benchmark of line Williams the Our David next Company. with question

to what's confidence? a that And but the you could like I June it sounds across could better, others. the if those velocity end you what thus that kind what's giving speak talk about far expecting these bit maybe maybe and you heard First, guess the you're trending seen be to and and given from on booking we've you've you markets into year? are maybe -- side, how maybe if of inventory

we feel there being Well, that reasons quarter. several good are growth QX about a

inventory the of First one is will be headwind. a less

a QX, stronger talked air of normal especially in even And of that normal. inventory about. have we'll consumer because would getting the than year -- the that up conditioning closer levels -- seasonality of could to because result, consumer it's a be channel this normal Now we be expect low as we from

where see a levels us exposure some We higher We that and but air to are at in And inventory growth market. good peaks in QX very a terms level number. as they conditioning the of weeks back think to QX. you we on customer Also, on remember, QX. know, we revenue based based who normal but in phone a And will did if you to really completed QX, in we in correction And uptick air low in of in cell conditioning the have -- recovery QX. expect -- that orders also come a in starting some canceled be QX. helps slight have in I --

has which time, long sometime QX. been we'll industrial to for market, soft begin recover we a The in very think

good important probably February trends booking is So which month and we was last the best off start. that is of is spring, order are also most improving. a our since to believe. contribute, will Probably the one, very last January that our also

next of soft support will of the the up being QX will see weeks the holidays. New back come after things we'll QX. trends Of from course, the how all Year, so Lunar be X because But

Certainly secondly, Very great there. And wins. wanted there's Great. I a if to that. maybe color way about appreciate to Okay. your design then see think

You've had XX the to the next a downturn. very of way is that maybe that you've contribution from think months to period. wins design healthy And more pipeline through about in there the recent in a this XX won kind

And wins to different designs sizes. but the have You are you end in and be design production, can't them going because directly that remember, of come also, replacing life. in correlate shapes many some will of

directionally, directly are about very that. can't you But we and trend, it. it's excited So correlate really a good

you which If a know, except growth you maybe phones, literally at market. markets, almost look all cell is, as is not

will We increases are win for well seeing future. the significant design bode that

So the the convert years, next X market. into revenue wins depending the on X to in design will

So that the well for bodes market.

by is Of of course, all tempered this macro situation. the

So to it bright this middle big is happens. normal will the as which that our the by demand we start means seeing come should macro are back the year, all inventories that in turn we for But of markets around. waiting star to

question line Deutsche from Ross of with Seymore the Our comes next Bank.

you company, And quarterly whether a I talk to easiest of shot the ask answer, think to for be there's would ton a you the basis? but want high-level not that underneath a is appreciated. Just know first. of it's or assumptions on that, to one want demand normalized any basis do What level annual and the

Okay.

last on have think we I answered question this the call.

if running $XXX everything growth trend million and gains that our market so -- back share came should be a quarter. on. based show and on at market We would really trend Our normal long-term analysis to

believe, but I I half speculation being getting it And will know second coming depends of think the of that the unlikely, normalcy. that It a the half and the what on in 'XX will earliest probably the sometime demand this I can back in be my again, happen It there situation XXXX. demand of be, inventory that's just all to given is to it very don't be still year. second we're levels going really upon However, part. weak, will is

Sandeep, I trends little term. up. Got guess, then slightly you quarter job nearer And said know then of kind about a good and gross talking the it. going question, I be longer do through the year. margin to of is bit a a term second you

So I question guess odd utilization in look up the the if you a at. seems part the is second just A of little June going quarter,

You misleading on do internally. bottom of but at think somewhat the a the have through you increasing on your the of your days improve? do basically books? I you channel think how what's it, back are given much trend we the that know on utilization? books cycle, about going you're is year gross if year inventory in margin indeed so And to the And have revenue the inventory Why half

Yes.

of bulk back So bulk inventory is our keep that's I handlers are the the which when wafer talk power, more end, we some we of of do first fab the equipment And the testers, form. equipment But our is -- on we have machines. in limited. the of all, but yes, utilization, about

that's in us outs. margin. into finished converting higher So And test leads utilization, wafer what the into the of the helps goods the

into XXX you part the it go going help with But dollar gone XXXs, I moved the funny in that to then a be bit yen. The dropped the if a the in is But then the year was up has high the is us that strengthening. and really had piece favor going yen to XXXs. think our back is it to quite down back, the bigger

So impacted a starting you yen but turn and quite the it the and in in contribute inventory, QX, back QX by getting will QX, starts it's bit when coming as down, went there. favorability the

mix a benefit. getting also are we Now

goes are more see have by to talked less year industrial and before, about we going as we the consumer As communication. and

XX.X%, For XX%. somewhere about be think I in the can I That's I've we the modeling do. the talked year, before, should

coming the modeling, is costs. even I The from still in volume costs. said, and though the is are the doing wafer minus from always I'm going this mix With input But the high-level input yen as the wildcard. mix pluses other coming and is costs up

Our next Tore of the with question line comes Svanberg from Stifel.

ahead. Svanberg. is Mr. line Tore Your go open, please

next Cowen. with from line Ramsay comes Our Matt of question the TD

the you it, -- we're wanted this and our model a a down, kind you obviously, working than company that markets ago, correction through others. no inventory number did walk of like. plan of way X to through the we across different your the lot had getting on the months model of look guys and And through I we through and to inventory might what how a going reset is call progress

working back question play but I than as that gone but down, and big any changed not guess XX it's the the to progressed to coming is, through it the it's my as what's inventory expect to what days, last you've in biggest really you other of the tangible started mean at picture closer fun, progress. XX we've last, out and I differences it, out? end days say, we're

if last So anything think just trying I'm or surprised XX days you in to the so?

be up. possible. the is But expected. we as inventory QX very really It much slightly We much flat will we had said as potentially down not. to to get Actually what want

a coming that which our going our place cleared in are placed coming positive that who and shipments, ordering, in up will would coming by completely than So we inventory only is the market they of consumer. They the out us back. We now a really end are not are tells thing now. QX puts come being well. on little for inventory for down year in which that inventory, good really more are orders almost channel based I really stopped year, also still market forward as And back. a the consumer people, QX us is ordering is consumers the from back our just say happy again can The a onwards. demand, they see It's the inventory really below stopped is other

in close The second of is in down normal Computer in shape. to seeing that in And we inventory. is industrial quarter. the sometime terms industrial second to good consumer very that bookings it's should from inventory, quarter. market exactly the normal has start extra And sometime we don't is believe also I when. very the come should know

it's quarter strong from So we we still in in last think whole terms And year, the could and growth. of that exit growth for with year. half to expect And QX different anticipated a to QX. second QX not of think what we I the the year be year-over-year even better the in comparison growth because we

changed other is point has people earlier out year. wanted, as the we is what if if playing The a part to you about terms to being Matt, see supplies made little see better half we power were second other the that for Whirlpool see of the nothing plus it's earlier. what half, like add thinking in good of said should we they're of because second XXXX. Obviously, going

it's to the how validation been we've out what it an outside even and playing saying, see is of So good party. from

specific. thank which this as there. as auto well, not read bit second That a is much was for in Got of but the environment. it. detail the have more And in No, good really my both initial changed, little my market. a all guess steady very I kind things of progress, ton it's you question

opportunities in the about there or EV design market think being of maybe XX% script in considerably was like the pipeline commentary something I the that. up some

the like? win expand If the the time maybe you nature and guys that could a could them, what little to of if revenue bit, opportunities on you look both also

somewhat So interest think I of ago. to are we have positively products. couple a years mean, honest, the I this are be would of getting our by don't level on surprised we it expected

us, If expected activity. design much we asked would you slower ramp of have a had

It we a the So with million And Usually, be term. And cycles X well are cars the has say. products. X we getting the how as customers, that this comfortable surprising $XXX I'm -- X design our next different business long within more they the quickly it design should for production in already today years. I cycle. a more models mentioned, quite long and really bodes could in that's long. different at very are adopted market But

customers the size historically we the bring whether example, are OEMs, market. customers Chinese benefit, so design with value of short me address, on. who use And component other is open customers. much cycle benefits count surprising even benefit, Many and bring, benefit, the the are to the liability our component product their cutting thing we really benefit simply the to because also to of it's but with and that's only course, more have OEMs European because been like, the the And this Japanese for the hardest true not of Japanese, the that's to

we area good at probably most growth now. are looking the really that's right exciting looks everything and for So automotive,

Stifel. from comes the question line Svanberg Tore next Our of with

you Yes. Can me? hear

hear Yes, you, Tore. can we

don't Great. know hear what hear Okay. I me. you I earlier. couldn't could happened guys, but you there

question Balu. first So you, for my

clear. all start customers are same, But So most ramp downturns the upturns to that always meaning are quickly. pretty remind pretty us that's almost the different, people

be mean you're given your seeing that this I inventory comment, that I of comes. anything So that assume would different? it stronger year ready -- and you I ramp when for as sort a

be don't just have feeling going really Yes, good, ramp recover. don't answer. but We good we I wish second half to a really for I answer. give much. by know how will it's wish the recovery. It's I a know of that's I I good could I think -- knew question. that the the you

where renewables But feeling at are more longer high good. that's We areas already are the me well. we term. about really doing automotive, talk extremely talked you Now but let some look about if power,

this expect high well expect, we market, year. meters well which metros, strong back we year are extremely to very another guess, this last year. The again, Electric so doing HBA doing growth extremely was year, that And electronic power. weak are on come -- I

back. are to industrial going that's in several there So come pockets

still they come some that even So when significant have I'm a there. talked see But we will industrial already we good about. growth they feeling back, back Consumer come really though this year will inventory.

is measure I still clean, the we inventory think there can extent is demand start to demand. the weak. seeing to the we're going But

So the up growth in see We yet. that demand not come increasing. consumer don't going of term because inventory, in clearing the is near to from the necessarily is

doesn't don't alone, grow that about won't clearing the that just in market. come the strong. half just second help up back Now inventory But will in it We us that. nicely mean know

about cell grow course, don't -- that phones over few years. that to market. Of We talked we the the before expect declining next a is

of growth the from is industrial. the other consumer the All X markets, come to going the and computer,

good. And applications. one highlighted enough getting you that on GaN, from far several well as GaN as haven't there. segment you're and data is but do traction heard could the we POWI mentioned The center, Very segments, in, you quite several

data you Do market? are on have traction on So being you be penetrate that conservative there? when would for center already Any GaN you update great.

question. Good

in all, of billion if presented we presentation, it in double our go XXXX. Roughly First back SAM $X if you $X SAM we billion at you of to in SAM would Analyst year. that will that the began Day look XXXX, our to about

half And billion, $X SAM of continue already products course, Of of out GaN for. we increase. the to have it will that

to We address have of it. already the market in billion products $X.X

centers, chargers, telecom The supplies so data and other infrastructure on. automotive, onboard station, power and converters like $X.X base billion from comes DC-to-DC

and that working engage are until ready, it's we are not we ready, that, For with yet on don't customers. products

those have to products out. get We

the model you some takes be in longer is of problem a the Now the want. broadly any how if it have you can to get discrete than with But us to it becomes a you come Well, you discrete that guys. discrete then wondering commodity. market may transistor go market

especially that I You are discrete. be anybody, by have going be to the the aggressive can device compatible PIN a replaced incredibly pricing guys, Chinese think, of in

We just in not model It's just right discrete us. don't see business us market. the the for

market. compared by margins We over that make we discrete. And in to advantages have discrete solution never the the brings way make been we having significant a is -- the guys, discrete system-level

schemes. control the do There's takes means that we innovation when longer a lot with to products. system-level cover innovation things to of packaging, of product. come a So that have it of we the us It's for up

very with discrete. good longer. takes compelling that which margins, make very we out, to bad make hard come news. is we when it a That's So is The the can really product news good have

that So why takes expect not that it take longer. some SAM That's to It's that's changed. did XXXX. time. add anything until We it has don't billion of why $X.X we

helpful. that's No, Yes.

one, line? in Just like be or could on But so of on the and talked and 'XX forth. a last revenue that more sort perspective, wins a design Balu, and so of of 'XX, this millions about the is still automotive you tens timing time from X

exactly -- I it should know don't think me we That's -- more years, let be, cross I'm would X million. yes, by say, will lot -- I could I million. easily be within you see, $XX would would will be a it how -- it much comfortable more XXXX, let's than saying, be. $XXX

for remarks. call closing I would to now over to turn Joe Shiffler like the

afternoon. call There available and investors.power.com. this our joining this Thanks, again, on everyone, will Thanks good for afternoon. of be website, a Okay. replay

call. This concludes today's

You may now disconnect.