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spk_0: good afternoon my name is sarah and albert conference operator i would like to welcome everyone to today's transform a this this update conference call alliance had been place and me to prevent any background noise up to speak of prepared remarks that they will be a question and answer session if he would like to ask the question during this time the less star followed by the number one on your telephone keypad if it would like to withdraw your question press the pound key piece be advice of at a conference is being recorded other like to turn to go over to brett perry of shelton group investor relations read this go ahead
spk_1: the afternoon and welcome to transforms quarterly business of day conference call during a flavors from trench their malaria readers chief executive officer printed break cofounder president and chief operating officer and cameron mccauley chief financial officer before we begin i'd like to point out that there is a why presentation associated with today's call which management will be referencing during the conference call he flies can be accessed through the webcast wake and the and us relation section of transforms website and they will also be posts and available at a linked pdf subsequent to the day live conference call additionally during a quarter this call the company may make forward looking statements regarding the company's financial position strategy and plans future operations specific again markets in other areas of discussion it's not possible for the company or management predict all risks nor can the company assess the potential impact of all factors on of business or the extent to which any factor a combination of factors may cause actual results to differ materially from those contained in any forward looking statements in light of these risks uncertainties and assumption of bored looking statements discussed during this call may or may not occur and actual results could differ materially and adversely from those anticipated or implied any projections as to the company's future performance represent management meant as of today august sixteen twenty twenty one neither the company nor any person that sims responsibility for the accuracy or completeness of the forward looking statements the company undertakes no obligation to publicly update this forward looking statements for any reason after the date of this call to conform such statements the actual results or to changes in the company's expectations for more detailed information on risks associated with the companies that as we refer you to the risk factors described and transforms as one ten he and other subsequent filings with the fcc with that said if now my pleasure to turn the crawl over to transform ceo mario reversed for opening remarks mario please go ahead
spk_2: they can work on thank you everybody for joining us today we look forward work record on our continued progress during the first half of the year then look for the first go to a quarter of twenty two to increase thirty three percent sequentially to three point two million leave them by record book sale brilliant expenses will no longer basis in the chris cooper's quarter of call it going to were four point six million and longer betas the net loss for the fiscal quarter of twenty twenty two was five point premium or thirteen cents per share along with the school library performance the company remains committed to his grievously communicate with ambition to of list or not but made on the calendar year
spk_3: the targeting mine
spk_2: in july we were all too excited to strengthen our board with the addition of me skills males have an independent director and he comes to ask with an expensive semiconductor finance bugger with bad for more details by both go to crematory
spk_4: thank you my you and good afternoon everyone
spk_5: transform the game is leading the next and evolution but come my civic ramping disruptive technology the marketplace backed by betting glad gained knowledge he solution and the in feet strongest a deposition addressing large and growing markets like the doctors and chargers for fighting and electric vehicles acknowledge the and solutions validated by strong bluechip partners and customers and all of these made possible by other exceptionally talented and experience team we very rapid trade in the last quarter and the recent months particularly market penetration and ramping up the product revenue after the end of the fiscal first quarter and recently in august the also completed to important milestones first the completion of other if they stare blue me for fad joint venture transaction to move forward strongly with other ethic light vertically integrated model and second also closing of a five million dollar or equity investment from an international public company like we just an into these news for those new to transform i will post reiterate some of the over again value and market and business opportunities in front of us along the transform solid value proposition including phenomenon technology and i be with from infected and given liddy that is the backbone of our growth then we will review our kids month in the quarter an exhibition friday so the reason gang is on it way to become the future of the multi million dollar polish semiconductor industry is because existing silicon average physical limits empowering that so far more slow of power conversion as become it intrinsically gallium nitride performed at high efficiency and lowest losses which the silicon or silicon carbide keegan is leading in delivering on the intrinsic performance potential of get along with other game companies in terms of coffins can bloody get on silicon it's both cost effective and compatible the downstream silicon wafer five min affecting having already achieved lower system for solutions was the silicon power today and a strong road map for gallium nitride approaching for the can like device cost the end result for other power conversion customers it's highly efficient cooler on back and cost effective system at the core of other architecture if the t gang normally afghan fact platform which is addressing applications to get from adopters and charges around forty five to two hundred plus wants to server enterprise industrial an automotive solutions at can kilowatts packing both high performance with hide elaborately with a unique integrated combination of a high voltage gallium nitride device with a lower would silicon delay as a result the again normally off transistor or effect a to the best i wanted switching of gallium nitride delivering efficiency compact size more robust outside world interface with the silicon fed by the way compatible with and a drivers such as those that already come with modern look until there's no need for anything special he demonstrated quality the lead the be in high volume that a vertically integrated production environment some of the matrix we have achieved is installed pollard bait or three hundred and fifty megawatts device dollars in excess of fifteen billion field operating hours like excellent feel ill add to the performance
spk_6: another quick recap
spk_5: keegan has repeatedly the have complete control and innovation across the valley eaten with what we call our at the plate vertically integrated model the own the key portions of the manufacturing the core mpv for technology which is a must in other opinion to own and control the way for fat in which we had a joint venture partner
spk_7: or with a strong new partner now in place
spk_5: package manufacturing to subcontractors but but the control of ip for example how to make high powered gallium nitride work in industry standard time illegal with packages which others cannot do so and a strong emphasis on application driven resources both internally and with quality partners and is so impressively this last week for a qualcomm duty five compatible hundred watt adapter solution overall be advancing a tremendous market opportunity in front of us had gallon metric for power conversion a three billion dollar again camp as you call it in twenty twenty three with the for that inflection point through that any power drain segment to reach ten billion by the end of the decade in the near term other avenues i've been derived from power adapter chargers computing data center infrastructure crypto mining power supplies followed by brought industrial and energy applications in the near to midtown to the growth of the large automotive electric vehicles and charging markets in the mid to long term all of the with strong and growing gang camp a pro the god of this application transformed gallon like a solution deliver high efficiency compact systems and do so reliably with easy to use products by customers with proven performance benefits of in silicon silicon carbide and other again solutions
spk_8: dissecting the market opportunity for the
spk_5: of the total get clean power semiconductor which we looked at in discuss the gang camp with the bush and reasonably addressed the current and future plan game device offerings is one point eight billion dollars today out of which as you can see the biggest segment by far the the or doctor than chargers while all the segments are growing but the gang ten growing at a much faster rate than the general bother market the largest market growth opportunities five years from today is expected from the edith segment going to well over two billion dollars or clinics from what is available today
spk_9: in twenty twenty six
spk_5: for now let's don't know what attention to how we benefiting this market today and how we're driving our growth we're pleased to report a twelve month quarterly kind of unit shipments of one hundred and thirty percent with doubling of power product unit shipments over the last few quarters and meeting our goal of more than triply this quarter completed in you
spk_7: what we're aiming for the second half of the palin data combined with just from july to december of the it is a three x growth in unit shipments or the fourth top of the kennedy you combined
spk_5: we have to do this keeping in mind the blighted challenges facing everyone in the semiconductor industry and be watch other external packaging and associated bomb supplied with that bellyaching closely
spk_7: this rapid growth for transform has been driven by our growth and adopted and charger market as we continue
spk_5: to get to share that with superior technology and sustain shipment also in the higher power segments which has been always have a unique for that for quite awhile we have outlined before that adopted and charger customers organic after the chargers had a pretty shitty began to the lab with the robustness smaller guy size as much as fifty percent smaller in some cases higher for good of married and performance leading to an increased pay
spk_10: eighth of design and since you're fully into the segment last year
spk_5: we attempt to capture sounded attributes here in this graphic first off the not is all gun products in the market today are normally off contrary to any confusion that some companies may be causing how normally of israel and is of course if each company's own solution but completely transparent to the customer in case of transform with our architecture our again fits can be fed with a multitude of controllers and drivers
spk_11: by the bit more controllers at this power level
spk_7: such as required in the doctor than chargers already how driver ice is integrated of for free
spk_5: so the so called i think an approach sometimes can be the than that or even problematic in such cases most gallium nitride operate had higher speed was the silicon and it's achieve smaller sites and good efficiency which is why new adopters and chargers are migrating to get him magic solution from the leading got a mega companies today including platform our super danforth have shown some of the best efficiency and power density i eat compactness combinations in standard up architecture like the qf because it other than fly back or the if you have that to five fly back come back to other gun solutions with a good bond cost as other girl like that does not need any external by thing that works or by filmmaking networks needed for that he get which is also doing well in the market one strong benefit of drawn from can fed is the proven ability of delivering high power and furthermore doing so incredibly robots packages
spk_7: some of the competing in one can devise you to in heaven's gate weakness are frankly difficult to offer in standard lead a package which had demanded especially as we go to high power equally important if a colleague and are lovely be and not suffering from any failures or big the dishes or time such as have been put in literature for some of that the motor calibrated devices
spk_5: simultaneously the how to and we have gone our bit of icy and solutions partners for example companies leading companies offering integrated controller and driver solutions this is allowed us to drive optimal solution what's the silicon and other gallium nitride to increase our bases adoption we announced this i dunno if the affected sixty five or design last quarter and last week we announced our qualcomm qc five compatible hundred watt quick charge of design that salon a rocketed adapter benefactor
spk_7: our been for dug up their charges range from twenty five watch small club to sixty five watt ultra slim highly efficient compact phone and notebook chargers to one fifty blocks and to forty what for higher power doctors
spk_8: one particular bomb bear down with a potent renewed that transform again can do more with less high efficiency with a smaller gun device what as a larger emailed gun device and that is the gonna be fundamentally better divide technology
spk_11: another customer found it easier to pass thermal department the transform solution
spk_12: the aim to continue to grow this pipeline
spk_7: the higher power space is equally important and again here we have higher performance and hide allegedly products
spk_10: in this case we also compete with some of the silicon carbide offerings
spk_7: as other emailed gang is not quite ready for libel a high powered in high volume and affecting that typically in time illegal but packages like that the have to four seven like you to the in hadn't device weakness a mansion
spk_5: and example shown here
spk_7: is our highest public fifteen billion product
spk_5: which is to the best that they can tell the lowest out on for six fifty one qualified got him in of discrete due to four seven package
spk_7: as shown here in an apples to apples comparison it outperforms silicon carbide more facts and if it gets cold but in offended package in offended with ticket realizing that twenty five to twenty percent lower loss and able to deliver can kill a what last power levels from a single but you know elective thing
spk_5: customers have selected our firepower products for example the gin forty five million gentry engine for thirty five million and fifty million bucks or the last several years now for robust one and half kilowatt to for what solutions for diverse applications then you from
spk_13: gaming to mining servers industrial
spk_5: and military applications for the reliably be ease of use and high efficiency power conversion and all of this is always back like began strongest ip be portfolio with patents spending materials devices design fab and packaging equally importantly the use of this devices in applications such as if cf adopters or server crypto power supplies for example
spk_7: or for that matter automotive and what doesn't and orders
spk_5: this patent portfolio is several times stronger both and number and quality of i'd be that many of the stand alone callum major companies as well as some of the large power some of the difficulties of i do it over again in the market shifting gears a quick word on what if if the blue joint venture transaction that be close recently but our previously announced plans this transition was plan for many months now and we completed after finalizing of strong partner last year and completing the regulatory process is tonight with the financial and it partner does he pick up to be formed a new joint venture generation
spk_8: with the goal of accelerating canada option
spk_5: and generation if they interviewed that are quite hundred percent of the of his w
spk_13: it also brings in financial as well as ecosystem resources especially in they have a doctor than chargers into gonna wish him and if it's w
spk_5: trump phone on twenty five percent of a of has doubled down through it's twenty five percent ownership of innovation in a blink of an overdose more efficient piano going forward
spk_7: it should be noted that the clean and the manufacturing operations at a bit of know if victim of the thing and that more is completely trumpeted to our customers and partners with if it's debut the many one of the printer high quality manufacturing fat for gallon magic power next i would talk about some of the specifics of the last quarter and current but
spk_5: the it's you three point two million dollars of revenue they don't record productivity in the to quarter
spk_7: a lot of this growth was fueled by the bigger again products and solution in the the radio fuck charges and adopters
spk_5: where we grew do now that the bluff design him with had on twenty in production the ink new and will you for calendar year twenty twenty two let our customers are targeting one billion units per month ramp in the mid the second half of next year
spk_7: and
spk_5: in one of this program for the already secure the first high volume purchase order from once it's customer the release new a doctor solutions on target including our own device and with partners as exemplified by the fixed it by what q r f victory by what if he if and the recent hundred watt called on qc fight compatible reference to thing the aim to remain focused on our growth trajectory in the second half of the calendar year on course for our target bluetooth like a better be of more than one million units a month in the adapter area and october to december quarter and but previously announced plans of qualifying our second source facility in packaging as well as ramping up our own every day for supply the high powered area is important to us again a unique to against trent what's the other gun providers and this is not just talk for the future as doubled our killed four seven ships again which now and bluff hired power design ends with our customer work production our gang fight is a leader in power level of can products and it was released for commercial application in the calendar que three having finished qualification on target again not you next our goal is to secure design with the despite color what plus plus product at an old or ambition other focus clearly the month on scaling product revenues fast and targeting two hundred percent or three it's good or the next two years
spk_14: from this year to twenty twenty two and twenty twenty three
spk_5: he had earlier continue on the institution focus such good will be enabled by continued high quality met affecting scale up and impactful new technology products and solutions to this end we make our plan for to new jen for products that we did in both surface mount as well if needed packages you have to three more religious coming up in the failure of the for end of the year including board lower power and higher about offerings
spk_7: thanks to the design oblivion driver ability of our to get him that expects and a strong underlying efficiency performance leading controller companies are no partnering with us for solutions and area we will aim to be even more aggressive him and going forward
spk_5: and we remain focused on the automotive qualification of allergy and fight back with the jan for already sampling him in couple of design in activities for the automotive
spk_7: on the partnership and key fifty two goldfish and front with our customer partners mean it very strong or progress
spk_5: alec acknowledge it being made the june quarter milestones on the key as our development program and secure the point seven five million dollars of funding that was deceived in july
spk_7: as announced previously in with me we were very pleased to complete the extension of of a long term culprit of agreements with expedia and we also completed a key technologies said of milestones to achieve the eight million in licensing revenue recognition that will actually be effective in the current to like water
spk_11: he also kicked off target a product development faith in automotive but morelli our customer partner and also a transformation of after
spk_5: hello dolman program revenue and pepita a new and and solidly on track he now have fight me repeat customers for a be safe for deal the application based on unique fundamental he gets transformed gonna be and also the of sample to commercial gonna have customers the goal of a design been by and of the
spk_7: revenue from other navy contract remained stable and on track to exceed three million dollars for gonna do get twenty twenty one
spk_5: additionally the ending process of finalizing on a dapper program that of emphasis on newer types of or if it be and in total can be up to one point four million dollars
spk_7: we value that strong public private partnerships that can had successfully deployed while being very synergistic dollar other business goals
spk_5: to summarize i'm pleased to say the had another they trump water in the stock of all of you physically of achieving that good product avenues a x getting and unit shipment accelerating defendants continued rollout of products and reference design with sonic progress with other partners and in a business and government program all of this in terms of technology innovation products shipped and revenue achieved
spk_4: we also closed the pending gave has double fair complexion bringing a strong new partner and very recently the cure the five million dollars of i could be funding from a large public company
spk_15: i will now and alert to call to cameron our vehicle will take you to old financial magic like you glut on to look to other one joining us today let me start with a brief recap of our most we should look into the corner forum or my remarks i want to sell off to gap a non gaap results which are reconciled to gap in a place from stable don't get results exclude stock based compensation i'm occasion on adjustments to the sheer volume of uncontrollable note going to income que one of the fiscal year twenty twenty two saw continuation of a storm revenue goes to the gop and non gaap revenue uprising called of the government was key point two million dollars and a quarter this is an excess of a target and represents a deputy percent sequential increase from the prior to the months and over two hundred awesome but pennington same quarter last year focusing specifically caught it live in the three months to june two thirtieth so a thoughts success of quarter of at least double in shipments stealing continued growth and resulted not highest quarterly production live in the number could eat that is a sect success of quarter photographing include the schools commit mention is being driven primarily by strong traction and the customer a doctor space but we're also seeing construction and high up segments quitting data centers you complaining going to expenses costs of goods or decrease in the quarter driven in large part of the thirty three percent growth and a quarterly revenue number for other all takes gaps banned from the gym quarter was one percent higher than the much gotta all the earliest about takes for substantially slot this despite being the first two quarters with the entries different cause my manufacturing shows applications and ginger together with expenditures tied to a recent change and fiscal year felipe yes i will focus my remarks here on the non gaap results as a reminder non gaap excludes noncash cause items such as don't be calm i'm a position at their value judgments a living for media operational couples the non gaap kissed loss for the quarter was getting sense this is flat the track lot of the represents a to cent improvement in non gotta eat yes relative to the same caught on the twenty twenty when excluding license and reading something out to the balance sheet on the next one net current assets decreased four point five million dollars in the quarter cash bond was high the crack or to do something to to some annual insurance payments continued investment and a tree and cupcakes the support ago
spk_2: stone collections in early june july together with reduced gd expenditure a rebalancing the been written become quantum and positioning it for significant reduction
spk_15: additionally the company completed and a lot opponent of an ongoing development program with a scam students seven hundred and fifty thousand dollars in funding and the concorde on the liability say we extended the maturity of our existing the vulva facility to twenty twenty three but other assets and liabilities the meeting largest you well so happy to report to important developments that have come this quarter both contributing to strengthening of up on the cheap as we move forward
spk_2: from a funding perspective the company release of eight k l if to the a nursing the conclusion of a five million dollar extra investment to fight off the sheer multi billion dollar international public semiconductor company in asia solidifying a midterm cash position
spk_15: on liabilities we are successfully executed on a deliverables with respect to ongoing on the ship experience that execution means them develop more is not considered forget and licensing revenue will be recognized and the concourse the above developments extend a financial one we enabling us to continue to best and the company's go and as mario mention the company continues to target a neutron up less on denies that several steps are taken from both complaints and governance perspective and the company continues to perform due diligence of tamely as we walk towards the school funding them and the next sleep on the current year to a reiteration of a long term business model
spk_2: we are in the courses are building a high growth product driven castillo has to business and the company has three distinct revenue streams licensing government control and the current you we have continued to generate solid revenue for both licensing government contracts that has been supplemented by significant thought and a prodded ready
spk_15: revenue has gone six quarters and succession and will become our and once told about what already the fiscal twenty two let's is be enabled by strong traction and execution cause multiple sediments led by consumer but including a construction the higher per applications the company is targeting on your product revenue to of two hundred percent in this state and into fiscal thompson from fiscal twenty three on much as we continue to ramp up product revenue was a carpet segments product with on ninety percent of already as was a fight twenty two the school come from multiple segments and not simply consumer automotive business started to contribute to this multi segment truth from twenty twenty two that's consistent rapid acceleration and a product revenue alleged can get to target a five you're on your kicker and excess of fifty percent were also confident with as volume and kids money to operational efficiency and strong product portfolio will allow us to achieve a normal gross margin and forty percent which with respect operating margin the company will continue to invest to support all aspects of a cool operations are stable existing structure allowing us to translate gross margins into delivering an operating margin that he believed to be excess of twenty percent to conclude the finals like
spk_2: transformers a pioneer and leading provider again out and doesn't defenses we have disruptive technology provides power conversion solutions because a number of significant go and markets
spk_15: your commercially of up and strong production revenue growth together with a manufactured instruction a place that can support a long business we have a comprehensive product offering to be a customer needs has a wide range of power levels of sickness
spk_2: the underpinned by the embassy strongest ip position on a deep talented team led by renault galaxy
spk_0: that's complete are prepared but he was in a box and we would like note open a call to any questions operator please proceed with managing the qt portion of the go as a reminder to ask the question you need to press taiwan on your town found the we try a watch and press the pound key i can if we would like to ask a question for a star than a number one on your telephone keypad the stand by while we compiled a key in a roster
spk_16: your first question comes from the line of craig alice from be riley security if you're line is open
spk_1: thanks for taking the question guys and congratulations on what seems to be some are growing momentum in the business i'm from it i wonder to start with you just on that topic and and see if you could dig a little little bit deeper into the thirty charger design and sped you know have with twenty and production little bit more color on
spk_17: i'm maybe customer dynamics their regional color and dumb and with respect to those that are in production where are we in terms of scaling and to targeted guy you up for our for the higher volume of wins that you have thank you
spk_5: sure thing to correct
spk_7: and of for our doctor he the are very excited now too
spk_18: having getting the rapidly so a lot of our a customer make it a failure to look at it it's customer and and something that end user of the customer a lot of the direct customers are a chavez the as you can imagine like some ill in the us and europe as well and the end users of this are really worldwide
spk_5: right us the you a europa i'm in japan and out flee in asia israel so that the kind of dynamic some of these attitude directly by transform a lot of these some part of it our partners that be a put in place or onto booting to our growth of avenue and or this is primarily a of a the sort of the high volume have been another sixty five lot are offering like although like i said we're on had had it from thirty five what a wall plug sockets
spk_19: although be up to one sixty watt of adopters and the volumes that increasing now of the i also among the design in had been working on i mentioned which also very pleasing divided the area written on some in both of which into the thrill and out some of these are targeted opportunities have and of shipped already several hundred gate of than from because onto the did too
spk_1: other attributing the unit orleans and lot of that was driven from the last quarter to the squatters
spk_16: with doctor one
spk_5: that's really helpful men are as follow up question and different part of the business for a few financial questions for cameron you mentioned palm he and you're prepared march and it's him the slide deck that there's potential for a commercial when i hear the end of calendar twenty one in the every bit as can you suck about the financial and the strategic implications of that potential were yeah a don't sort of an hour at be business if you know we're doing our that beauty customers so they really transform a bit thick through the of id we have and up for certain flavors of and technology the commercial get out of customer lot of these what we're trying to do is get in as though you know companies that leading companies who are they're getting either as a second source to the internal a the development efforts or
spk_16: the including their sources of supply so we will find out more of the exact volumes of that actual been will manifest more in know twenty twenty two but as you can imagine the rf the market itself is a very strong existing market in about twenty percent or fifteen to twenty percent of the revenue of the out of market can be a true the get to the everywhere are born potion so that the segment that that we are we're going after got it got it and then cameron flipping you great to see the company looking at the potential to increase our second half
spk_15: the unit volumes three yeah cap on how can you talk a little bit about the e s p dynamics help on have because if if if we were looking at similar a piece of with seem that that could mean that product revenue could be in the nine million dollar range which seems high so project provide some color on what's going on underneath that time that very large rights and potential unit summit sure the promptly thank you i think be as we mentioned a lot of the the revenue growth itself as is not consider that the space and and can typically the e s p they are our lord and yes please let me see and in our higher power that opportunities in the data mining space and an industrial space so your the the volume
spk_5: and from a unique perspective is it is definitely hi i was printed mentioned beautifully eggs but that doesn't translate fully into rather you just because of the fact that a lot of the growth as in areas where the his cheese
spk_20: our law and you to that they can a looker applications
spk_21: got it and then ah general down by a young lad of at for head canon and a one one thing to add to that is the like the the a tube record for up revenue a disorder which is excellent and be a deck so amazing growth factor accompanied gone but the total revenue of three point two million also included contribution from the other segments shop
spk_22: that's a your three to nine million
spk_1: completion is is a little bit
spk_23: it could be a little bit of
spk_16: yeah right there it's some nice jen for help and some of the iraq each application in a quarter right i got i can then i'm just moving moving to the last from before it in the queue cabinet look like gross margin was some was more mid twenties vs i think the forty percent target model are there any one time items in the court
spk_15: or is that just ah some of that the transition to a higher volume consumer and and die yet for if it is than what's the implication for gross margin in the back up there
spk_16: sure no thank you know how can get you know that they're one of two small adjustments in the quarter taking what this and that level like this can about one or two readjustments in preclinical government business but i think cam you know this at this volume is hard to read too much into the the percentages i think that you know was we look at them are just going forward you'll you'll see a mix change the next quarter with that with licensing as well so you all are all at the margins mean solid over the course of the comic workers and you can we we continue to walk at think with the data volume and an ugly their manufacturing efficiency and to hire a long time mounted in the forties
spk_0: great of hop back into the que
spk_15: thanks yes your next question comes from the line up some peter meant bank craig how them capitol hill line is open
spk_5: i go they've taken my question i your first one is not a private placement the you announce
spk_18: no getting it said it's a law a public company in asia did he talk lot of the to a ya strategic partner than a center or and a car what their relationship was like like
spk_24: sure know yet as yeah you get very excited to have in place then up with be looking to drive strategic relationship with the such partners in the future
spk_25: okay
spk_15: like on for me on on some your jan or products and our our stop the days are you said
spk_24: your sentence because there
spk_26: this quarter as well i think last forty said he had i keep customers and production there was ah
spk_5: was growth are driven by those customers he already had her for the new customers get you can't qualify
spk_24: i'll bet and i broke down
spk_26: yet know that set the greg it would actually both have some of the existing customer proliferated into more are designed to the tree of always like to see and then he added a into converted from designing process to production of several new customers also thought it was a mix of both some of that with existing customer increasing and
spk_5: and some a condition of couple of the new customers that when from designing to perfection
spk_27: got it and then were going to customers primarily in our dataset i rarely then kept reminding are you seeing am i to go out and
spk_24: nothing crazy that base or gone up again actually across the creates a non gaming or in data center end up in clip the
spk_25: out okay thanks
spk_26: i want to clarify on your
spk_28: comment on wanting to convert one of your commercial are that the
spk_2: engagement senator cause my by your and i passed or you said there were two those engagements and you're hoping to convert want
spk_26: thank you for the for word as far as much because ball for a few as
spk_29: getting engaged with
spk_5: one of those two at this point is that right characterized
spk_9: now what you're engaged with there are you guys with
spk_25: get a lead them to new to sample to more an endo the couple couple the the the one i mentioned that a game that to be he look to feet if the game ticket
spk_24: commercial production high volume production right now it's sell a lower volume sampling or initial got a transition type of think so
spk_27: that that the one that rican have you believe it as you can imagine that codification cycle the more minute so that the when we target to hear others would be a for next year
spk_24: dodger okay an hour or more in the attack and cue to come on automotive you talk about
spk_30: a lot and or workouts and about and split your job for alex and target jump out follow five i'm curious where you characterize where you're saying you're the most of them a vehicle and others
spk_24: and open spot
spk_5: the pilots and be a things be what about bob on targeted dc yeah murder nor you say more traction in any area than another to do this gives a foreigner
spk_31: he had forced a qb i've seen right now in the on board charges and be cbc than ordered that's where the design in in in the first and then in in going as guilty it is he can waters the next one
spk_0: don't watch chargers and for in voters we're working with partner so we're looking into longterm converter architecture said could be in a boat
spk_32: by again both standard as good as new architecture that cancun meaningful impact
spk_33: got your that it for me those go
spk_32: your next question comes from dying of david walliams of from benchmark your is open a good afternoon not by a my question and congrats on the yeah the followed progress
spk_15: thank you the keep up
spk_34: it can when i came with egypt out about the benefits associate with a jv now you've got about half and cut your been about half in terms of your fix popularity can talk maybe through with that mean for the piano and how you think about that
spk_10: a bat and maybe that desecrated constraints for you in terms of just a your ongoing operation with map hillary
spk_35: sure on a loot can address that the constraints of an operational costs make them having financially you know that the percentage ownership when from from need to twenty five an hour before he has a in a short term cash benefits from as a david will see the been reduced by the pretty much on that percentage from the august cambridge so
spk_0: and p you know you'll see in the in the oil you lane and in the piano at that number reducing from a and a corresponding manner so from ah from a cash for sake of most i'm a female perspective that it's a positive and development and adding operationally very positive as well but electronic provide a little bit more color on that
spk_16: no personally it actually be set ourselves up for more growth in fact it will help as we need to the already have reasonable skill in place in the of for five facility at the of dog before but as we need to have bringing more skill than expand
spk_1: that actually this relationship because our goals or synergistic to grow the gang ecosystem it will actually help us operationally to have a renewed focus on delivering grandfather products from that fat huh they have a follow up question comes from the line of crank alice from the riley securities your line a cell phone yeah thanks for taking the follow up question of what i wanted to pod begun to a little bit guys was some of the high volume wins that you have
spk_5: can the harper for next year so
spk_36: so i think it you mention that their return em a you poor a one million union a month ramp and the and the question is do you have any operating requirements either qualifying additional packaging capability or other operating requirements that you need to check off those milestones for you
spk_5: can start moving ahead with that type of ramp and then because i'm often asked if there's anything that shipping and box
spk_7: would that be or something that would be potentially a charger that would be on off the shelf or could that be an inbox related items
spk_19: so it's it's with apart bartender deemed to do book those kind of thing and again this is an animal you are and like i said it because the first order of in in hand pertaining to that a more you so the start of the sort of the pilot start of that which is also own a for says large opportunity the pilots are also
spk_1: reasonably beaten point of view in terms of the requirements from our side we want to make sure and like we have also announced before his via with or two sources of packaging and not not so much of a new package of an hour package in part of is a solid in that area
spk_5: but having a to sources of packaging is important
spk_9: for us to poor diversification
spk_10: and then the follow up question promote it seems like there was a real strong inflection and design guns from a quarter of what change with market engagement or are in terms of how you're engaging with partners that developed
spk_5: such a strong increase quarter on quarter and hush we think about those dynamics as they can play out not just the the back half of the sure but continued to and ah define when your pipeline this we go through twenty twenty two and so on the on the doctors and charges one thing we have done and definitively is the work with solutions are provider like i said alert again fed architecture is unique in defense it is it's completely of flexible to use controllers from a multitude of complete right it's not limited if you and put everything in one box than it's limited to one particular controller it's not like that or if third and he more solutions that get it has to work with specific drivers it's not like that so actually as we have includes is outreach
spk_16: in a way to an and and well established well reputed of companies and and you'll see some of these announcements in in future as and when they have been have also come to us and bartering with us with our gallium nitride with get a controller and indicated driver ip said that been one important point and we hope or and we target family too
spk_0: have that drive a lot of doctor are designing on the on the on the higher power side it's been done
spk_1: because a steady steady growth than the up in the data center applications and then
spk_32: the crypto my need something to be honest with not been able to predict very well in in pasta and any strong know when we're seeing more demand because our patchwork quilt and now it's blue and with more than a handful of for i'll give too many customers that we have so that of know that continues to look of very promising
spk_29: that's very helpful thanks permit good luck
spk_5: and cute the have a file a question from david walliams from benchmark gear line is open
spk_37: big an hour i dropped off there but god for that media in terms of the that the demand shop it's quarter what there anything unusual that maybe would pull the head of the got strong demand that your forecast of the next quarters is leaving unusual era that if we'd just that inflection point out your your hours
spk_32: the manchester same
spk_5: the i would say i would not for that if anything unusual legacy the continued or is so so father will establish for of the in it's ruined performance with our increasingly providing solutions in the a doctor space wedding to the with our customers and partners in a higher power space and then on on the you know the continue to watch very carefully also on on the supply side of
spk_32: or constraint certain concerned especially packaging that of the are not immune to so we continue to work very closely with our partners if to do that kind of the mix that may be juggle the had one solutions winning more design and with with more products and solid performance our products and then are making sure the match our sub like a better
spk_0: if he could have a dead
spk_2: and the majors one lack of i can have on the exterior gave me that they are have been a change very thing i get it right there have you seen but back or just kind of thing and about from the trade restrictions on the ongoing issues there is or anything
spk_38: too
spk_2: no no particular restrictions that with hundred and dollar a long term cooperation agreements independently from the and knowledge gb have and i'm expedia built on that to do their own per gallon naked offering so in the market which you can see which were buried so very pleased to see especially the amplified our our men sit in all their other round of architecture of gallium nitride in automotive with a larger reach up so that that's very exciting and be able to see more of that are no particular are restrictions are efforts to that i'm aware of macbeth like on the quarter thank you
spk_39: fair enough for the question at this time of the like to turn a conference back to the management for any closing remarks
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