indie Semiconductor, Inc.

Good afternoon and welcome to Indy Semiconductor's first quarter 2025 earnings call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. As a reminder, this conference is being recorded. I will now turn the call over to Ashish Gupta, Investor Relations. Mr. Gupta, please go ahead, sir.

Thank you, operator. Good afternoon. Welcome to Indy Semiconductor's first quarter 2025 earnings call. Joining me today are Dalma Climate, Indy's CEO and acting CFO, and Mark Tindall, head of corporate development and investor relations. Dalma will provide opening remarks and discuss business highlights. Mark will then provide a review of Indy's Q1 results and Q2 outlook. Please note, they'll be making forward-looking statements based on current expectations and assumptions, which are subject to risks and uncertainties. These statements reflect our views only as of today and should not be relied upon as representative about views as of any subsequent date. These statements are subject to a variety of risks and uncertainties that could cause actual results to differ materially from expectations. For material risks and other important factors that could affect our financial results, please review our risk factors in our annual report on Form 10-K for the fiscal year ended December 31, 2024, as well as other public reports filed with the SEC. Finally, the results and guidance discussed today are based on consolidated non-GAAP financial measures, such as non-GAAP gross margin, non-GAAP operating loss, non-GAAP net loss and non-GAAP net loss per share. For a complete reconciliation to GAAP and the definition of non-GAAP reconciling items, please see our earnings press release, which was issued in advance of this call and can be found on our website at www.indy.inc. I'll now turn the call over to Donald.

Thanks, Ashish, and welcome, everybody. Let me first review our financial performance within the context of the overall automotive market before focusing on Indy's business achievements. During the first quarter, Indy achieved total revenue of $54.1 million, representing a relatively robust performance given the current automotive market sentiment. During the quarter, we saw weaker than expected demand at certain OEMs, coupled with a slower start to the year in China. Since our previous earnings call back in February, the global macroeconomic environment has changed dramatically. It's important to note upfront that the new US trade policies and resulting tariffs on imported automobiles and vehicle parts, which were announced in early April, have had minimal direct impact on Indy's operations to date. Our Asian manufacturing partners ship very little directly to the US, and we maintain a globally diversified supply chain that provides significant resilience against such policy shifts. The only exception being some photonics components from our Canadian facility, which were marginally affected. While our direct exposure is limited, tariffs are impacting overall market sentiment and creating uncertainty across the automotive industry. Multiple OEMs have recently announced a reduction in vehicle production, temporary layoffs, or paused shipments to the US. We expect other OEMs to follow. Consequently, we anticipate vehicle prices for US consumers may increase by several thousand dollars which could ultimately lead to a drop in end vehicle demand. While we are not fully immune, our diverse product portfolio and new product ramps should mitigate any broader market challenges. Automotive market analysts, including S&P Global Mobility, are now forecasting a reduction in global vehicle sales of 1.3 million in 2025. In the specific case of the US, imports of vehicles, engines, and parts represent $458 billion in global trade, and the planned tariffs will impact over half of the vehicles sold in the U.S., with analysts forecasting that average U.S. vehicle prices will increase by over 9% in 2025. I spoke last quarter about how 2025 will be an important year for India as we introduce new products, and our customers ramp our solutions across our multiple ADAS sensing and user experience applications. Despite the challenging market backdrop, we continue to secure new design wins across a global customer base leveraging our highly differentiated and innovative technologies. Notably, vision and radar design wins are on track to run production in the second half of 2025 and continue through 2026. Now let me turn to our notable business progress and key achievements during the first quarter. ADAS is the major long-term focus for Indy and a core driver of our future growth. Our engineering expertise and innovation across analog and mixed signal design and world leading in-house algorithmic expertise sets us apart from our peer group, enabling an unrivaled product portfolio across all ADAS sensing modalities, including radar and vision. First, our flagship 77 gigahertz radar solution is progressing well with excellent feedback from our lead tier one customer with on-road testing results demonstrating compliance to all key performance specifications. North American, Chinese, and European OEM feedback to our lead customer indicates the product has been extremely well received. Initial production orders and shipments by our customer with these OEMs remains firmly on track for late 2025. Equally important during the first quarter, momentum remains strong for our vision portfolio, featuring our class-leading proprietary image signal processing. Firstly, we secured a new design win for our flagship IND880 processor with Valeo, a leading European Tier 1, for in-cabin monitoring, including thermal sensing capability, for a North American OEM targeting production deployment in 2028. In addition, we were awarded an eMirror design win for IND880 with a Korean OEM targeting trucks and buses, with first on-the-road deployments commencing at the end of this year. Last quarter, I mentioned our growing success in China for vision applications such as e-meter and in-cabin monitoring. I'm pleased to report our traction continues with further wins for our GW5 vision processor, including at Mercedes China with YF-Tech, the largest e-meter supplier in China, and an in-cabin monitoring win for BYD, targeting production starting in the fourth quarter of this year. And finally, our global partnership with Bosch continues, We were recently selected for an additional high volume in-cabin monitoring deployment with Toyota. To emphasize the importance of the product lines, we anticipate that each of the radar and vision portfolios will generate well in excess of $100 million incremental annual revenue. Finally, we highlighted last quarter that we see growing applications for our existing products and automotive adjacent segments, particularly in industrial, that we plan to exploit. I'm pleased to share that our photonics group have already secured notable design wins for existing high performance laser products for industrial and quantum communications applications, which offer tremendous potential for the future. Challenging and dynamic market conditions, which we cannot control, have become part of doing business within the automotive market in recent times. What is key is that Indy has maintained a laser focus on developing market-leading solutions and deep commercial partnerships to address the long-term and substantial automotive semiconductor opportunity. And in this regard, I am pleased to share that Indy has now shipped greater than 500 million chips cumulatively since our inception. This is a fantastic testament to the incredible value our solutions bring to Tier 1s and OEMs alike and to our global operations and customer support expertise. While we expect sentiment to remain volatile, we continue to expect vehicle semiconductor content will grow strongly beyond today's average $1,000 per vehicle, propelled by global safety and emissions regulations and unrelenting consumer demand for the best in-cabin user experiences. Indy's positioning as a supplier of compelling differentiated solutions to address the transformative automotive megatrends remains robust. I will now turn the call over to Mark, for a review of our Q1 results and Q2 outlook.