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spk_0: good afternoon and welcome to the transform a second quarter twenty twenty two business of day conference call to these conferences being recorded to ask a question on today's call please press star one on your telephone keypad if you find her at question has been asked you may remove yourself from the queue were pressing star one again at this time like an accomplice over to brett perry of shelton group investor relations with go ahead
spk_1: the afternoon and welcome to transform literally dozens of a conference call joining us today from transform or mario read chief executive officer from it for break cofounder and cheap operating officer and cameron the golly chief financial officer before we begin i'd like to point out that there is a slide presentation associated with today's prepared remarks which management will be referencing during a conference call the slide can be accessed due to live webcast lying to me a better relations section of transforms the website and they will also be posted and available as a linked pdf such pointed at a conference call additionally during the course of this call the company may make forward looking statements regarding the company's financial position strategy and plans future operations specific and markets and 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 it's business or the extent to which any factor or a combination of factors may cause actual results to differ materially from those contained in eighty forward looking statements in light of these risks uncertainties an assumption the forward looking statements discussed during this call may or may not occur and actual results could differ materially adversely from those anticipated one ply any projections of the the company future performance represent management as much as of today november ten twenty twenty one year the company ignore any person since responsibility for the accuracy or completeness of the forward looking statements company also undertakes no other obligation to publicly of date for the looking statements for any reason after the day this call to conform such statements to actual results or to the changes in the company's expectations for more detailed information on risks associated with the company's business we refer you to the risk factors describing transformed as one kincaid he and other subsequent final exit the fcc with that said if know my pleasure from to call over the transform ceo mario readers with go had mario
spk_2: thank you bird will come everybody into their gold and you for joining us
spk_0: sources he's second quarter which ended september thirty years twenty twenty one remember continue growth on regular programming
spk_2: revenue increased sequentially to the seventh consecutive quarter and grew thirty percent year over year to recording record continue momentum an adapter one france charger markets and persons who to report issued smuggling controllers hundred degree diver makers we competed in an agreement with consumption on their recalls are you a a is w wave responsibility nice work i'm a to japan our subject partner years ago on converter between point six million dollars of bed the transfer common stock and five dollars per share in october twenty twenty one we were awarded one point one million gun development controlled by the defense advanced research projects agency or darpa we also are proud that we had seen a motor quantification of super guns in a jan for moved to the what grounds palmer if he to devise we close to five million dollars private placement for strategic investment by sino american silicon products and for years
spk_3: a multibillion dollar coin the company nature
spk_2: and also gross or even three million private placement in november twenty twenty one comprise and following investments multimillion dollars by king jr and ten million dollars bikes i know americans and a comparable as well as participation by it's institutional investors now allow me to transfer the call to bring a break president and ceo it's
spk_4: thank you value and good afternoon everyone we're very excited to report that transform has continued our growth momentum and forward several mikey publish and is announced yet again today leads to more than thirty million dollars of capital to propel other growth even faster first a quick recap of gan overall value proposition antique and transforms leadership position that in gallium nitride again is the future of our conversion because it reduces they enable smaller footprint and lower power system got across a variety of electrical electricity conversion application
spk_5: and there is much better than finnegan or other semiconductors
spk_4: he can even it's rubbish innovator manufacturing supplant and leader in ghana public or vita range of applications johnson is one of the only companies to have and again in broad market segment from lower power adapters in fact chargers to help other data center mining communication infrastructure brought into feel getting a bowl of youth yet and in can be line in for automotive i phenomena again team as any build a cop patent portfolio bit more than one thousand patents fighter ten times more than near it's competitors full gallium nitride manufacturing get of that he has allowed us control and innovation the other acted like what it really depleted model and build a comprehensive product portfolio with more than twenty five billion hours of innovation and deliver ten point seven million revenue in our liturgical year
spk_5: and growing taught unit shipment now i a fast pace
spk_4: the actual to have a like acknowledge the ip and thickness validated by blue chip in better than customer partners the likes of kkr yes color mullally and now at the at and diodes inc to name a few although we're addressing a very exciting like good opportunity for game and pollard conversion a multi billion dollar again came with a further inflection point as we go to the amy poetry segment in couple of years to reach can be been dollars by end of the decade
spk_5: in fact i'm a bit market opportunity maybe leaning more toward that the vivid effect
spk_6: in the near term
spk_4: alexander news or been get out from power adapter than chargers computing data center infrastructure crypto mining power followed by come industrial applications industrial and but energy in the new to make them and without a doubt a large growth area for automotive and it could bake oven charging in the mid to long term all boards have a strong that growing markets for gallium nitride a prostitute gamut of application transform game solutions deliver high efficiency complex systems lightweight the easy to use products and becoming more model back the ease of use that proven performance benefits again silicon senate and carbide on the i have our site and other again solutions
spk_5: understanding this market in a little bit more detail the broad polished them with independent self it's exciting and growing steadily the gang can began in nature portion of that which is reasonably laughable the gang offering that we have in today and the near future is about one point eight billion dollars today out of the power adapter than chargers is one of the biggest segments
spk_4: as the underlying strong power semiconductor market will continue to grow steadily we expect the gang cam kegler to the doubling of that and by all segments in the general markets will grow fast over the next five years or so the largest growth is expected from the electric they got segment going to well over two billion dollars the twenty twenty six
spk_5: for which we have positioning they dealt with automotive qualified packs available today
spk_4: what is necessary and i came aspire to do every day is delivered a broad combined spectrum of benefits to all power conversion customers
spk_5: by kicking the intrinsic benefit that gang has to offer authentic and for silicon carbide to the next alan
spk_4: i'll call call again sick architecture delivers performance with high efficiency over a wide range of power level with leadership in part of qualifications and allegedly our acted like what he believed get a model allows for unparalleled in house again control supply control of other manufacturing innovation and ability to skip while others are talking about getting into high public we have been there for a while and have set a number of bench banks including titanium plus getting naked power supplies that with our customers more than two years ago
spk_5: the in fact is directly compatible with leading silicon controller the drivers no extra shrubbery needed to interface over again with outside world and different reflected in our growing ecosystem of pollution partners and finally i strong i'd be bought for new dollars not only how the dead of night i didn't need but also how it is used in a certain by used power application architectures for example like the totem pole which technology picked topology
spk_4: a key markets and on the last couple of years as many of your other if the shift for conductors than fast chargers to high powered thermal by neglect of such a forty five bought fifty five watts and old hundred watts now with fast charging which gallium nitride did extremely well suited to
spk_5: while other other good companies and other fellow game companies have combined very well for enabling this market some of the keep the friendship benefits that allow customers to do more with again but simple architectures and a simple development he gets bomb or outlined here the silicon all decay have been working great in the past but now fall short in efficiency speed and smaller size on form factor required for new products among the have an idea of gun solution
spk_4: looking at the key attributes what makes chance on gallium nitride attractive for customers was the competing solutions like him game or the for collymore i forget are is the ability to be flexible which means either views compatible with spend a drivers no extra bomb components or shrubbery to interface with the but the ability to go to high power and ability to do so ready to lead the for example based on data verified by customers for electric that allow can fit in a direct them better than to exceeding a to exceed performance with other get a major fact in this kid shown with the comparison with again i feel more efficient trump from gun and those literally easy to use we also strides to not confuse the market and do our best to peter certain misinformation that sometimes prolific in the market around getting making for default no matter what your ball your again it's the older performance account for example normally off gang is what customers and application demands and there are many good made of doing it all other good fellow competitors and gun are also doing it but the semantics about things like emailed or the moto x to achieving normally of our bookkeeping matters
spk_5: it's a superior nominee i thought of that matters
spk_4: performance performances delivered by fundamental superior underlying technology and very importantly coupled with solutions
spk_5: there is no universal one size fits all talking about high speed or mega had switching
spk_0: the fact is the have taken gallium nitride to one my girls and ninety nine percent efficient operation several years ago and that to at a higher power levels which is more challenging
spk_5: many other systems like transformers etc out to be kept in mind as one picks gallium nitride and systems especially at higher frequency but as part of the published which is concerned by switching is not fundamentally you do any particular thing like an icy or controlled apology that is one god and nature gift to mankind is if you make good again it with witchcraft
spk_4: there's been a lot of talk about immigration and drivers and one often ignored fact if many modern day controllers
spk_5: especially put the doctor that fast chargers how drivers integrated for free
spk_4: so into skateboarding alert and phone solution partners or what architecture avoid the need for any extra dry like indicates have adopted in and factors
spk_5: another important reminder it's power conversion application spend low to mid to high and then very high power levels
spk_4: today out of the gang offerings and that is what about what it's are shown here but for knowledge of release products in the market not talk about the future
spk_5: our again spanned from thirty watch to cantina what as we demonstrated recently with challenge and five products on the higher power spectrum
spk_4: many combating offerings will bite for higher power sources in the future like today they are limited to lower power other success at higher power comes from again
spk_7: the inherent robustness instability of plugins that architecture that allowed us to be offered in industry standard so family robots packages like the field which today's other solutions with can sometimes find difficult to do due to that inherent weakness
spk_0: and now what are these attributes enabling us to do
spk_4: they have an able to build a strong ecosystem of solution than packers this is already written progress notably these partners are manufacturers of controllers with integrated drivers recently doubt think a youngster hundred and thirty what solution utilizing transform gun and sixty five what solution and you can i think trump's on gun is already in place and it's previously announced you continue to work work with felony another strong in a waiter in control the architectures
spk_5: with multiple other partners that are not public at this point the ain't could lead in the phoenicians for the adapters and judge or space from forty five watch to to fifty one our strong product that can use coupled with this a doctor solution space and the ecosystem of partners
spk_4: continue to allow our expanding adoption in the fuck gender space
spk_7: we have added some leading brands
spk_5: including for example the compact sixty five what power but that phillips to add to the qualcomm qc five hundred what solution we announced laughter the higher power space is very important and he can imagine have the power outage energy cities impact of get and the impact on electricity use it and carbon footprint and the holistic level your our generation for and generation fire openings bullet are leading into space and we compare here to leading silicon carbide offerings into space as other type of gallium nitride is not quite ready for high powered especially in comedy robots packages again due to the inherent a device witnesses in both cases
spk_4: an example shown here on the right is our high fiber of a thing million product by the way that as best as far as we can tell the lowest out on for six fifty one qualified get into discrete you four seven package
spk_5: it outperforms silicon carbide both the most that and the jeff had cats good a very good products my from companies in a standard package in of kind of good circuit realizing twenty five percent to twenty eight percent loss reduction or this good for the can provide products and able to deliver as usual can color what level public from the symbol but in our have pitch black testing customers have elected our higher power products in a variety of application for example twenty finally on and fifty million bucks or the last four years from one color want to forget what solutions are gaining crypto star wars industrial renewable and mother kept the kitchens
spk_7: for the ease of use to be get him and management
spk_5: reliability i'd efficiency out and watching this list will continue to grow the electric vehicle is a very important in your focus for gallium nitride and transform as we know silicon carbide has done very well the segment and gallium nitride with the intrinsic performance as well have the ability to harness that in conflict performance or they just showed is poised to enable long term benefits that get into any marketplace these benefits include keen packages like foster judging by packing more power in a smaller footprint also given more compact and lightweight systems which coupled with height of fish the anglo a lot of inherent to the again translate to include the driving range including badly efficiency we just announced today that allergen for product qualification under the stringent easy q and a one kachadourian was completed it been our third automotive qualified firepower product most of you know well the acceleration of the elected by good opportunity worldwide and get him adoption scenarios that make longer term for that you'll forget hybrid dragon the specific can opportunities in eighty today adding day as of on what charges the cbc converters and of read pc to a thing of literally motors and over the next several years ago king of the dr drinking water opportunity dumping the are working closely with strategic partners
spk_4: bill tripled the accessible game content on an automotive johnson gang is easy kill an old unqualified he added now today shifting gears know i wanted to explain a key partnership that we announce today that's ball we have announced a total of thirty three million dollars of investment this week including the support of kick you are other leaving shareholder us institutional in much ago and then all american philip and products are stuff sauce is a mark marking international dump me a total green energy solutions provider and parent to blow their vapors corporation which is the top three supply of of silicon wafer mikita in the what
spk_5: and a combined market cap of fact and global before it's been sixteen billion dollars with worldwide manufacturing operations
spk_4: south need a new ten million dollar it for the investment in france one adding to the previous five million dollar they did in august and including that the total amount raised from south and well as other investors since august sense now at thirty eight million dollars
spk_5: equally if not more importantly the catch youtube the sheep vw the partnership with head and i can have all again if you need for supply chain in the future while protecting our core intellectual property in the area and augmenting our internal capacity
spk_4: also they will become a distribution butter for electron from products and been tried gold now turning our attention to execution today
spk_8: and how we're driving drunk
spk_4: we are pleased to report a continued growth factor and consistent consistent what we said left and getting a tree a unit ship when growth from the for talk to the second half of this calendar year incomes of our product revenue got this is fifty percent grow targeted again from first after the second half of the calendar you're twenty one this family the game coming from other english penetration into a and chargers and fifteen shipping or gaming shower and crypto fitness clearly managing for blyton external constraints that are facing all of us especially the pentagon or a semiconductor industry today in the near to mit them will continue to be important for us
spk_5: the key business that focus remains on continuing to scale product revenue and targeting again an annual growth of clear in this area we outlined several factors that help us build a foundation for stuff in the a and chargers you steadily increasing when and now all it plinking production with or fucking in designing including the telly what do two hundred and forty what range
spk_4: are fully booked for the quarter and have added strong winds like the philip bothered by that i talked about our trump packer ecosystem is a very key to us for sustained expansion and the of can solutions know ahead of our target including other inflation as relevant partners which are either done or and relieved all are ongoing this is again ahead of our plan and a recent diodes hundred and thirty what announcement is a strong testament to that we had previously also said a metric to achieve alert pick you fn package capacity pick you have any the compact package used in the doctors and judge about products to exceed one billion a month and we are pleased to report that our team now has a second or set out outsourcing partner qualified any place and be have this package capacity exceeding one billion a month in place in queue for now or as he had previously said
spk_5: the have also enabled a new parabolic compact big you have been fired by basic package on time
spk_4: in the higher power segment a leadership area for transform bush's other game we have auto twenty design now having grown that from last time and but the more than ten in production and recently among others we have added a very prominent gaining supplier in production solutions a key here as well and we plan to release a new to an off color what the ball design but other partner to the bull by the way to the bite you use architecture engine and also that transform had a very broad ip college a new high powered products to the of amongst new high powered products today the jen for easy announcement that we did will be important to accelerate automotive design and and also other goal remains to secure even higher power and fibers but the record high public and five brought up that i talked about earlier we have
spk_5: commercially qualified that as we said a lifetime and now it's and are you something stage
spk_4: capital partners and our government and happy business or important parts of on value proposition and goodness and i'm pleased to report strong all rounder execution in this area as well
spk_5: i mean that he needs of design and lucky and drive a bloody have to get fed and performance hanging from the inherent better than technology lends itself well to the success at think one tony what solution with minimised bomb and high performance
spk_4: we continue to button with for lana and other very good controller in a letter and other companies in the failure
spk_1: the our strong customer partners what also their shareholders
spk_4: yes galaxy note and work than was into equity was key along the continued development the gas color and progress towards l a bit as and product much
spk_5: but and expedia the focus now with them continued supply having recently completed the light and technology most of which led to the eight million dollars revenue recognition and did you like water and morality targeted for developing especially now with jen for a fee qualified parts
spk_4: and important recent achievement in other the business was completion of the town for of gan rf it be process
spk_5: for a major beauty customer to our facilities
spk_4: they're still continuing our it could be to target a commercial gain out of of in
spk_5: as well as the i will be able to completing the because of the the a suitably she partnership
spk_7: that the announced and looking to get that point in full steam ahead
spk_4: our navy contract activities will deliver more than three point five billion dollar gemini
spk_5: and calendar twenty twenty one and we have now also supplementary activity on the new a contract a quick recap on the significant very significant weaken my son's before i handle were to come on the public to talk about financial
spk_4: forced expedia the licensing and associated revenue milestone has been completed
spk_5: along with this jan five commercial goal was also tube second yes our not what did let me be adding fifteen million dollars to shed hundred equity and reiteration of the book from one of our strongest partners
spk_3: the doctor contact continues to highlights synergy that transform gardeners from public private partnerships
spk_4: the gin for the qualification he and now today for dragging automotive design adding a new solution partners the top gear compete like dousing backing up what he did seen on the ease of use and performance of our talks and the investment firm kick out our largest shareholder and a fifth of partnership that enable foster scaling in the future as we aim to get ready for the mega growth we expect in gangland with that or to gun
spk_1: i can from and hello everyone jennings to the on our stopped where the bc recap of our emotions and be completed quarter
spk_4: for my remarks i will refer both to ghana non gaap results which are reconcile to gap in our press release peel log got results excludes dog these compensation amortization and adjustments to share value of are compatible note to to a for twenty two so i continue he should have a good story total gop a non gaap revenue comprising product licensing and government was eleven point three million dollars in the quarter of the up to three point two million dollars to the blackwater on one point nine million dollars from the a cold water and twenty twenty
spk_3: the sequential and year over year increase was driven by a combination of licensing revenue leaping just ongoing work with next year continued execution on a t a government contract and record product sales and prompting shifts
spk_1: focusing more on products yields a few months to september so our seventy success a quarter a product revenue to and competing a coauthor to the same quarter last year product revenue grew by over two hundred percent it's global been driven across a broad range of park and doesn't applications getting fast chargers and doctors game
spk_9: in data center i could so many applications
spk_5: operating expenses on a gun basis or five point one million dollars makumbe quarter compared to five point three million dollars in the gym quarter the two percent decrease was achieved despite an increase in the company's it can to support ago
spk_9: it's included head can expand a certain applications kings well as cheating investments not out of the engine and complaints efforts
spk_5: on a non get basis operating expenses in the fiscal quarter twenty two or four point five million dollars compared with non gaap operating expenses or four point six the o'clock quarter costs of goods sold what two point two million dollars in the quarter a decrease of point three from the gym clotted as with all fix the spend a lot was a cheap despite an increase in manufacturing footprint to sport or continue go
spk_1: atheists and net income i'll focus my remarks here on the non gaap results as a reminder on a non gaap excludes noncash items such as stop pump amortization and fair value judgments on a non gaap basis net income for the fiscal second quarter twenty twenty two what's the point six million dollars or nine cents per share a compared to non gaap net loss of five twenty million dollars or fifteen cents per share in the prior quarter on a non gaap net loss of five fifteen million dollars or fifteen cents per share in the fiscal second quarter of twenty twenty one these results to go very favorably to a consensus mps have two cents
spk_9: only later the balance sheet
spk_5: on assets trash remain stable in the quarter or been offset by the initial five million dollars that embarrassment the printer highlighted i live on in the cold operational been was on the five million dollars in the quarter a reduction of twenty nine percent from june driven by increased revenue some hundred and fifty thousand rpm from yes gala and oceans are ongoing development agreement and a continuation of up a couple of times and been to be increased to support on a poor traction and mullen evil continued reading a book
spk_1: on liabilities but fair value of academical dead reduced from seventy point one to fifteen point six million dollars it's it in line with the post bouncy conversion of the state has expanded on as i will expand on in an accident being a liability the eight million dollar development want to tight successful execution of his own w with expedient was also released in the quarter this execution strengthened about sheet an of stockholders' equity position by or eleven million dollars in the quarter
spk_4: but also happy to report several important developments that comes posted sympathetic each one strengthening a balance bouncy and improving our stock was a good position
spk_7: on debt on october the fourth we completed a successful conversion of a fifteen point six million dollar compatible note that the company hell with a long can't customer partner and know shit hold your scalp
spk_4: from a funny perspective the company really finicky as the be announcing the completion of a twenty three million dollar equity round including our lead shareholder good yard kicking a total investment in the company to keeping on dollars the twenty three million dollar run also good saddle us into institutional investors in addition to this earlier today the company also announced an additional ten million dollars from a strategic bomber sense bringing the total investment in the company to fifty million dollars
spk_7: these developments significant the strength in a about she can leading long term financial stability to the injection of to million dollars cash reducing our debt will fall into they are stockholders' equity position by course the fifty million dollars in addition to the eleven million dollars that was we live in the court
spk_1: it is judy developments the he believe the company is position to meet the qualification requirements uplifting are common stock to the not back just and and but this is an ambition that we will continue to pursue and were walking cannily to realize this
spk_5: connection the current year to reiterate a long term business model we're in the process of building a hydro cash generated peasants the company has three distinct revenue streams licensing government control up
spk_1: and current you you are continuing to generate solid revenue for both licensing and government contracts this is be supplemented by significant two and a product that idiot
spk_4: revenues go and seven caught up in succession and will become a significant proportion of a overall revenue in the current yeah
spk_5: that's close to being driven across a broad range of party doesn't applications think that charges in the adapters dealing data center to cut to mine
spk_3: we to cheat on your product revenue goes of two hundred percent last fiscal year and we cat targeting a continuation of that product that flows into twenty twenty two two twenty three onwards as we continue to ramp up production revenue across a fungus segments product reform over ninety percent of total revenue and schools as before coming from multiple saying it's not simply consumer automotive reading it was father contribute to this multi segment go from that from twenty twenty three
spk_7: as consistent rapid acceleration from a product revenue close keegan to target a five year annual qaeda in excess of fifty percent from a margin perspective of strong probable full you know including a gym for the gents i thought together with our manufacturing excellence of trying to lead our sales into gross margin in excess of forty person
spk_1: the sake of operating margin as we have shown the shia the company will continue to desk the support all aspects of cooperations stable existing structure allowing us to translate gross margins into the living an operating much and the mean believe will be in excess of twenty percent
spk_9: you can pollute
spk_3: keegan is a pioneer and leading provider of gamco condition that i should we have to shop this technology that provides coke power condition solutions because a number of significant growing markets are commercially ramping a strong production that and you know joy for seven six a quarters together with a manufacturing structure in place
spk_9: i can support a long term ago
spk_3: we have a comprehensive thought of opening to the a customer needs across a wide range of power levels insects all of which is underpinned by strong balance sheet industry strongest ip position and a deep county team led by renamed gannets but
spk_2: this could please up together cheetos and remarks on we know like to open the call to any questions operator that please proceed with managing the cuny portion of the come
spk_0: thank you know and as a reminder for his pressure wanna you talk on keep had to ask ashton although first line and that are our capital
spk_10: hey thanks guys that yet to grapple with out the is often a freaky taken the question i'm glad you get like i guess a couple of guy
spk_9: what what do you guys looking for sally looks and sounds like you came on that in a good got a to stay there were good had laid out worth what are you looking for l a t signposts you know over the next one to two quarters
spk_10: that that can continue to drive the go out and yeah out and you're cicada and you got integrate yeah what your presentation go get anything from idol and our that will guide that the may not be laid that would be great at the diana a followup thanks
spk_4: and thank senator for that
spk_5: yeah like like the have laid out know and quarter over quarter of and he like to on on the metric driving that foundation indigo vectors these are physically other a designing and production vincent and both doctor this at higher power solutions and reference design that the key area we need out some i alluded to that we are working on on mortgages not public at this time as you will human be talk about the ease of use out of our part site and what is that get getting a the inherent performance with respect to other again what is that getting it's getting multiple of this solution and happened to nine partner self as they expanded ecosystem it will drive other growth or even faster
spk_9: and then can enroll my stones on on new products side of the have continued of have a new product introduction
spk_5: and a dream that our especially so to david done check for automotive over the next few quarters so i didn't say explicitly but dutch and five automotive qualification will also be an important victory now going into about see the second quarter of next year sometime around that time frame and then security more of into a did into the other out and fight
spk_10: trailer that people helpful and and to for follow up on oddly when than the this is really not follow a lot that the he v and on an alias when when hey guys i get from our perspective when she will begin that really beginning to make a contribution key guys like what year would that be doing this
spk_5: hello is isn't that easy living in it is really you how to the in the tv segment with qualified products aren't to to have an impact in the next several years so it something in the twenty twenty three timeframe as the have seen i said before is very that he the a good the only good things will again the be under cars in the designing that we have today but what we have also done well into establish a strong partnership sideshow or example early and for example expedia to the have a
spk_10: of for example didn't expedia at the the for sales are they for sale which are all targeted towards and a he the applications in this is one of our be of expanding our ecosystem that partners out to dry grow up faster than began on our own and that it's wanted it into revenue actually today as he speak
spk_0: that's great i got it thanks i'll i'll i'll i'll get back in get a lot and
spk_1: on the next to david williams at benchmark a good really basically my quickly that a contract on that without a quarter i'm just asking i kind of laden high level of that began in york get done a good job by down the path for disparate the philippine record i could tell him there's any them and the adversely your damn products have you
spk_5: seeing that you've been able to display for any arif certain carbide for date or the is are still a possibility of the yeah getting people to be yeah that moto million birth action and okay thanks for that are that silicon an a t v have lab the been winning because her father efficiency in our application that we're designing an introduction to the like for example a good thing to florida crypto mining are gaining dollars a day or efficiency gains we have which
spk_4: like the us a chance on had made the in hadn't job performance of canyon and potential began practical the a theme that that today died in the area automotive like us and that and longer divining process for the can provide has been doing that for like two a decade or so and i guess doing very well in a market today but that is well again with our inherent of on of like this twenty five percent of thirty five percent that he had percent of production that we showed the inherent a fundamental performance of can upload with our partner ecosystem and a quality to lead the deep a for easy announced today and the effect of the an impact on that and anything by twenty twenty three as me and we
spk_3: lots of said it before what we expected the older technology don't go the senate in one go to silicon carbide one goalie but neither did i miss a newer designs that customers start the expect that to be a started with allergies
spk_4: okay and graphic break from i feel that are and alarming effectively getting the update on the away crack a eight moving forward it that that i literally have expected anything any hurdled orchestrates bear on advantage because like work
spk_5: no that is actually going the going very well on plan and of that so one of the strong own home and back with the farm infatuating also showed that transition has gone belt have any synergy and like we had said the opening pain and the management team at the if it's a blue factory that's basically unchanged so when working out in close partnership with our
spk_1: new partners and up yet so far as of everything good and now we are expected to be like that in the future
spk_0: gotta take a much agree show them the best law a quarter
spk_1: thank you
spk_11: the
spk_1: next august he here craig alice would be riley securities
spk_5: yeah thanks for taking the question and my shop on the quarter guys and congratulations on the things you're going to ram strengthen the balance sheet or just as like a clarification kept her tongue tied clarification question their a camera in there was that the press release on the twenty three million raised parrots announcer but sounds
spk_1: are are the south investments in the twenty three million rates are those separate items so it is is the balance sheet benefiting from fifteen billion from south plus the twenty three million rates are was part of the sas raise included in the twenty three nine h h to set and and regular the timing of it was the first five million from sauce and was in august
spk_9: and what happened in the last week was we had to the twenty three million dollars the keenan and then you have that can million dollars which is the second component of the sas investment at l e want to be so that he was kind of five plus plenty keep was ten at his dick is that little scamp the email
spk_1: the and i think that press release indicated that there is potential the upsides the twenty three million dollar raise any color and out when ah that would need to happen you are or how the company thinking about the potential for that to be realized i think it has been trading elite we do a would lately with the a betting that we got that that as an option there are obviously with with the the cash influx that we've gone in we got a a good start stable platform to go the business and and long term financial stability saw potential omelet follow on are comfortable a new the cash position and that we'll see that things transpired in the coming months
spk_5: got it a private i'll put it over to use a one of the things that we're hearing from a lot of companies that are supplying to and markets that have lots and similarity to transform to others chargers or data center communication infrastructure etc is that the man visibility his really extended pretty many players the last couple quarters and so but that is a backdrop as as you look at your engagement with your customers and partners can you characterize the the visibility that you have beyond the calendar fourth quarter in to
spk_1: ah either the first quarter at twenty two or to the extent that you've got visibility on projects are designed grandson can design end i can beyond that dad just give us a sense of what you're saying and in your corner book if no said earlier definitely thing that is a true statement they definitely seen victory him visit with you did when a novelist to continue to gloat plan i glued it means to increase product revenue a quarter over quarter so we do he demanded that the adopted and charges is that is the higher power segments of a
spk_5: some of them are more longer than couple of quarters in the as you can appreciate that coupled with that is the as of like invisibly the also that we track closely end up need to expect that to you can mean a dynamic i'm putting next two to three quarters can can pick and then just looking at can add pure abby hails bed that occur under your agreement with that with the navy has to be think about the potential for those sales to persist or as we bookend a calendar twenty two are are you expecting that to be steady and and i think there was some potential percent custom expansion their what's happening with that with catch my kipling in that part of business yeah so that's been going or steady credit so the navy again in a two things that the did contract contracted one the direct maybe contract itself which have a job i said at the and out million dollars which addicted it's like he had the target for calendar year twenty twenty one ah that the navy contracts avenue of it helps us index function of other abbey and activities and then that is a separate at the feels a budget catalyzed by the any contract and that i get a good and i gleaned and have to do me a dual a key or initiatives there are a long but other other son and a similar ah i imagine customers also that way
spk_12: one major us beauty customers said that an outside of the need on track
spk_4: as completed the transfer of their rf at the the for profit to transform and then as second please still for i touch being foolish and then
spk_1: from the commercial i have game and if can transistor manufacture
spk_5: data and then for you mentioning he got the diodes announcement
spk_4: what what the implications for revenues either near term or intermediate to long term from that agreement and should we be expecting other such ha ha relationship ten and an announcement from the future
spk_5: it's the first of forced to pollinate it helps support a the adopted enchanter good said in this market a one needs to be have solution so on the market and the two things that it gives forces or it gives a strong confident the what living thing that i know why did the choose our part right because it's easy to of it's with tended to the been a dragon electronics that without a from or what we got shrubbery external interfaith thing that amount of the bodies may require
spk_1: and second the performance of i can make sure as they're what we expect the growth of from that is not only we have the solution in place but stop these like dialed they have their control their vision integrates trailer on that also actual day independently a devolution state the do customers with the expect to be up
spk_9: last checked by that because independent of transom it's there are am
spk_0: filled in marketing channels also are promoting that to it does i of that can't and can't inside
spk_9: gotta be a cameo hot legalistic i do have we do expect to have more announcements like that of really fodder
spk_13: that
spk_10: back in the kick out the expand and canon and you pick
spk_9: and next on sir richard shannon had a gallon
spk_1: with a classic for for taking my question here me the last very simple question which care about air to barks at it's highest but yeah ah december korea here are ah
spk_2: quantitatively i know you can have a big got licensed dealer not like i'm a big like djokovic september but how do we think about the ad revenues you're excluding that you i compared to like guy june example ah a way which pick that growth
spk_1: angus margins just as a starting point the big races she will have plenty of when to get a quick get a good revenue for richard i think is he knows we look at look at the december quota the we feel pretty comfortable with that you know the consensus number the so there for percent quota just over four million dollars and panda in our think that logic as a the for ability for up say there as well dependent on on the supply stream as flighty districts and to additional revenue per state is that's where we are as amount of perspective
spk_7: know obviously you were looking to to continue to come through the mountains he saw a good a good quarterly rectangular the back more and aligned with the with the quarter simply because of the next projects like a little that more a product and government as opposed to licensing that's how potential a starting point there
spk_9: many questions on with fast charging market a permit you give us some some numbers here about number designs and the production and and in also about can kinda capability care if you want to compare and contrast what she dropped the market or or or any kind of big issue where ah
spk_5: it transform is finding succession the charger marquis the by you know what age or to don't touch your customers or other at your your your third mark to talk actors
spk_14: yes the to think that of he the are going penetration fast and in this market again that look at large market a number of other go into allegations that they've done very well and help nip to defeat them of it
spk_1: and it's it's going fast enough good opportunity for have wouldn't put in a flask with opportunity for the holy fuck me in the market we are seeing an hour for a insertion of the a concert sixty five watch the a the clinton didn't work out onto the high quality yeah ditto hundred and thirty one the week after the dark ages of energy expected more more transient
spk_15: and dealt a clear a clear for dinner been and of which is an indicator maybe perhaps a leading leading to communicate or so to speak he the fact that our again you can children that delusions like the get go to the jeff them into the fact that are general detected easy to use interferes with external electronic
spk_1: i don't condone the of joke great that's helpful perspective for it i a follow up on the topic in automotive hear that someone else started earlier here
spk_4: on it if the context of them than thinking about and legit of the her your your such was permitted to reject you companies who have exposure to select car by you're talking about a huge opportunity to be massive pipelines you're measured the way into the billion dollars and talking about the opportunities and onboard chargers and did you did he could burst and probably or
spk_5: our tree and burgers
spk_4: damn how you know it just looks like silicon carbide is dominating that market get we hear you talk about and certainly seems probable again can add a real place here can kind of give a certain some help here in kind offsetting war for body perspective against all those other extremely positive comments and silicon carbide as to how gan and how transform will have a real chrysler
spk_5: if it is no doubt silicon carbide i ended up multiple good comfy like much as to or that senator can't lift important for the market multiple companies with the good qualified of out there which is why you know the of with to get an apartment fledged of any and next year
spk_4: i love life instead of other butterfly like acknowledges that so that that so for the first thing as we have disprove points like automotive qualified been a sweet continue to get momentum there can it can provide has been around much longer right and that's what of is of getting today
spk_1: even again completely really had to have invested in transform and of the media is because of the fundamental to the edge of get it won't and on a change but the good channels count on it we're growing fast enough after the chargers game
spk_5: one to fight in the what segment the data center the gaming which is our streets point for us which point where we been there for couple of years now and really know that that eighty of it of it i went back and an industrial and then he ab executor of in the order and that really don't like the have no doubt that gang with it's true and performance
spk_9: over the next few years he he does the time in automotive but use you can see what happened to silicon carbide right of suddenly will it end of each other began to market share first in obesity defeat into eternity identical
spk_5: and then what are just i dream of that dr drinking water that the opportunity look for the to after twenty twenty five
spk_1: great day for that for mental ask a question for me on your digital now like up close to hear what what kind of from high frame should we expect and what have been a obstacles are out of your control and getting a gun
spk_0: drug addict yeah i'm actually had something in a we did i mention in africa to march in ambition it's it's an active ongoing me it's on target
spk_16: final day he believed done our a deep dive into and will physicians and i had think that one the key developments or the court on on the obviously in is strong race and of physicians and very well we we believe our purposes douglas
spk_3: it's hard to get a specific timeline but we certainly want to get it doesn't about the need
spk_16: look at that is all for me congratulations isolated also the and also recover
spk_1: and
spk_5: on live next to aren't hersman at a i g h investment partners
spk_9: hi how are you can read those moves on the palmer
spk_16: in terms of i get into it and of product revenue gonna love you traditionally regular don't remember if you break it if you excel the the life of the to give a combined product and and government
spk_13: any metric you can give with their the we haven't we haven't traditionally as butt ugly teacher as you see our that a good bit the licensing is is very discreet and gems one off individual and and and that that the squats or for example of the million dollars and you can see that the differences or product and government nick up about a lot
spk_16: and what you but we typically see is that govern and i'm gonna mention the throne three point five million dollars in the year and it is it is relatively as stable that level so from there you can see me at the go up and brought up that we've experienced over the last seven quarters and and because me or two
spk_5: achieving this lot of the picked the very helpful income flu the charging market you know they were there are come early player that a lot i would play out that leap in my opinion leave had a be overview of the do the fast charger the lower wattage of our it will him can you reader a reiterate again if you think fucker their found like as you go up on the waters that where you could you really signed through because of your parents that the did it what what power level too that really become evident and where the power level going right now
spk_7: and then at one of the follow
spk_5: shut shut wonder when he talked about the power level that are you should we talked about the the lower and lower power that is that guy again
spk_7: eat and a higher power that is alert the defenders gaining enthusiasm and evils that trump from has cleared leadership now coming to the adopted it has figured i'd be acted enter the market first at a higher power into because our products could do i bother
spk_12: then be the second we entered in order to the doctors and be a beloved ecosystem of partners we're accelerating death till the didn't adopters
spk_9: the feed sixty five what is a good of fixed point think my for us and then are going forward the hundred and thirty hundred and forty and fifty bought a segment are also very excited about that but our solution been adapted actually i from like we got a new design minutes or if i watch show as funding from tell if i was to the rules and the reason
spk_13: of yard of winning and us companies are also doing very well some of them have been in the market candidly and important that he and we are winning is out that ease of use our part of the digital interpreted it as the performance of again but the look and feel of finnegan that fell apart like architecture and then the
spk_5: efficiency the fundamental efficiency performance advantage which is also due to keep an amicable again
spk_4: the builder the two reasons that the eye out the attraction and the game as exemplified by more and more solution partners
spk_5: what can be tough in detail great i and the standard of living for european fender going to go next year forget the name of that then containing cold that something like that for the data center you know would have ended and a more that are qualified that helping you design when the lines and with anybody else i get on the game pad
spk_7: yeah so that titanium itself it's actually appear to me power supply been fighting for shooting a standard of certain of elevated followed efficiencies across the range so it started with similar first and gold and platinum and now now taking him the european standards that just coming into play for of from jenny
spk_16: what he a twenty twenty three out of line to a certain class of a the and give power supplies which will require a kenyan toby expect that from the second half of twenty two and do we do expect to see a strong impact of that as the about the notes obliging get ready for that couple of quarters before
spk_0: for that are jan twenty twenty three for a new and installations and then titanium what gallium nitride in general does he is taking it makes a titanium a tv i do with a simple architecture of the by the is a tricky to achieve that highest level of performance the got like you said before so the gun is has reached
spk_1: richard for the the limit show on get makes it easier to reached i didn't even the forced to show dragging him others will follow for i'm sure if the get could get them other companies like are talking about are getting to baggy union or level of efficiency but we've been there for now up
spk_17: seven years and one of the evenings enabling that for is this that of is unique again with this totem pole so called to temple architecture which is which is a covenant architecture using and in both plotted of power supplies and ransom also have very strong intellectual property pollution in that area no matter how the get him that anything
spk_1: nate the to use the getting like the application so that can also become an interesting place at the market expansion one thing right and us
spk_17: and you
spk_5: and while guy next to night in a hurry up and equity yeah
spk_12: protecting the question and and congratulations on the corner right
spk_18: i guess my question to me look at it from a macro standpoint and also better
spk_19: transform strategy or outlook going forward
spk_0: i haven't worked optional recognition for can
spk_2: just more and logic chips and processors are or current still primarily in power
spk_3: the game that a is focused on with the power conversion devices that that is in impaler power of switching back to empowered as power management would broadly speaking at the controller their drivers the digital and analog control and power management which is the power switch with the part of obama conversion fifth
spk_2: thanks are we are index power switch up a dummy with other of again that about what we call our second vertical which is again a period for says be a talked about both are addressed towards or of getting metroid which is more in the infrastructure of let's be efficient communication a different or fewer
spk_3: the application
spk_2: got it thank you for that and that doesn't include the question and answer session i will turn the conference that over to management for closing remarks
spk_0: and you a brutal
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