Monolithic Power Systems, Inc.

Reporting in progress. And I will be the moderator for this webinar. Joining me today are Michael Singh, CEO and founder of MPS, Bernie Blagan, EVP and CFO, and Tony Ballo, Vice President of Finance. Earlier today, along with our earnings announcement, MPS released a written commentary on the results of our operations. Both documents can be found on our website. Before we begin, I would like to remind everyone that in the course of today's presentation, we may make forward-looking statements and projections within the meaning of the private securities litigation format of 1995. That involves risk and uncertainty, risks, uncertainties, and other factors that could cause actual results to differ from these forward-looking statements, are identified in the safe harbor statements contained in the q4 2024 release and in our sec filings including our form 10k which can be found on our website our statements are made as of today and we assume no obligation to update this information now i'd like to turn the call over to bernie blagin thanks jen good afternoon and welcome to

Our Q4 2024 earnings call. In 2024, NPS posted its 13th consecutive year of growth with full year revenue of $2.2 billion, up 21% from 2023. For Q4 2024, we had record quarterly revenue of $621.7 million above Q3 2021. 2024, and 37% higher than the fourth quarter of 2023. This performance reflected the strength of our diversified market strategy, consistent execution, continued innovation, and strong customer focus. Let me call out a few highlights from 2024. We introduced the silicon carbide inverter for high-powered clean energy applications. Initial revenue is expected to ramp in late 2025. Other silicon carbide-based applications are expected to be introduced in multiple geographies during both 2025 and 2026. We developed a family of high-quality, cost-effective automotive audio products utilizing DST technology from our 2024 Exine acquisition powered by MTS Solutions. For Enterprise Notebooks, we launched a battery management solution and are sampling a new mini-phase power stage. These products enable faster charge time and significantly improve notebook battery life. Building on our first analog-to-digital converter design win in 2024, we are developing new high-accuracy 24-bit converters, which are expected to ramp in the second half of 2025. MPS continues to focus on innovation, solving our customers' most challenging problems, and maintaining the highest level of quality. We continue to invest in new technology, expand into new markets, and to diversify our end market applications and global supply chain. This will allow us to capture future growth opportunities, maintain supply chain stability, and swiftly adapt to market changes as they occur. I'm pleased to announce our quarterly dividend will increase 25% to $1.56 per share. And during Q4 2024, we completed share repurchases under a 2023 $640 million authorization. This week, our board of directors authorized a new $500 million three-year share repurchase program. With the three years ending December 24, MPS has returned 86% of its free cash flow to shareholders whose share were purchases and dividends paid. Our proven long-term growth strategy remains intact as we continue our transformation from being a chip-only semiconductor supplier to a full-service silicon-based solutions provider. I will now open the webinar up for questions.

Thank you, Bernie. Analysts, I would now like to begin our Q&A session. As a reminder, if you would like to ask a question, please click on the Participants icon on the menu bar and then click the Raise Hand button. Our first question is from Tori Spongberg of Stiefel. Tori, your line is now open.