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spk_0: good afternoon my name is the be a man i will be or comfort operator i would like to welcome everyone to it transformed business of the comfortable alliance haven't played funny it to prevent any back noise and after the speakers prepare them are still be a question and answer session if you would like to ask a question during that time simply press star one on your telephone keypad if you would like to withdraw your question is a star one again they'd be advised that late company is being recorded joining for they call home transform or margaret mario rita chief executive officer commit perjury oh founder and chief operating officer and karen calling chief financial officer before we began i'd like to point out that there is a by presentation associated with that eighth college management will be were referencing during the conference call the both in the akbar to the live by path link in the investor relations faction of trans or what they and they will be posted on a leash pdf of the clincher to date conference call additionally during the course of the call the company may make forward looking statements regarding the company's financial position janna plan future your operation with the big and market and other areas of the fashion if not possible for the company or management you berdych all there is more can accompany affected hello potential impact of all actors on a business or the extent to which any factor a combination of factors may cause actual results to differ materially from the contained in any for little statement in light of the thrift some certainty when i'm function the forward looking statements discussed during aunt may or may not have her and and far though it could differ materially and adversely and those anticipated or implied any projection out to the company's future performance represent management efforts of the day february nine twenty twenty two neither the company nor any person of interest possibility for the accuracy or completeness of the forward looking statements the company undertake no obligation to publicly a big forward looking statements for any reason after the theme of the called should conform to punch the in fact horrible already changing the company the execution the more detailed information on risks associated with the company's business where for you to the risk factors described in transform a one hand katie and other subsequent filing with the as if the but without i will now trauma call were to transform the ego mario leave us for opening remarks mario please go ahead
spk_1: forgive of honor the broken to one good a goal or greek you were journals google groban regrew sequentially to record you consider decoder ring two hundred and twenty percent year over year to or quarter era girls three point six million dollars we shipped over one million superdome gym for hurts or forty four war two to the wonder what polar doctor on forced order obligations in december twenty twenty one we grieve for brutal soybeans will power brokers and for surgeries to over fifty with over twenty of them in production and the total designers were higher power grid only watch them for kilowatts he grew schoolers very with for kneel during production we close group twelve point nine million men broke or private placement of common stock of seven dollars seventy one cents a share in december bringing the total amount of equity partners is closed during and a quarter to mordor forty four million dollars close and coolers as of december thirty first or only one north hollywood million dollars without that allow me to protocol to printed to toward to rid of elements in more detail over the past few months
spk_2: thank you my you and good afternoon everyone as you just heard transformers continue dollar record product revenue traction for yet another water achieving key milestones as we had talked demonstrating capability to deliver over a million a doctor bucks a month and friend and our balance it with strong and
spk_3: what's your support
spk_2: black before i will start with a quick recap of again or a value proposition keegan leadership position and clarifying our views on market positioning of this type of game including clarifying from misinformation floating around that the market and then moved to reviewing other team strong execution on video rents in december water that sets us up now for an exciting twenty twenty two what is gallium nitride it is a part of the white men get semiconductor material family that is becoming the new present and future of power conversion because it reduces energy eliminates electrical with enables compact power conversion and lost power system cost growth of variety of electrical energy conversion applications and does this much better than silicon and also better than other new real semiconductor like silicon carbide drunk from the np gang is an established innovator and leading manufacturer the player of can publish them conductors or the widest range of applications from lower power to hire butler from the doctor than fuck chargers to higher power data center mining gift to mining communications brought industrial renewables and in designing for automotive elected legal obligations our strong technology and one leading intellectual property more than one thousand patterns and other products have been validated by of a blue chip investors customers partners including financial i think is a solution partners manufacturing and automotive industry leaders are talented team as relied on our poor and complete gag manufacturing a bloody a loving control and innovation with our acted like vertically integrated models that has a lid on a comprehensive got a portfolio with thirty billion more than thirty billion hours of operation haven't delivered twenty one point five million japanese and the
spk_4: islander twenty twenty one
spk_2: concern isn't a very unique position of strength to how products in the market today that address is a tremendous multi billion market opportunity organic camp and we call it for power conversion from lower power to higher power and that our markets that we're already ramping today for example the power adapter than chargers higher power server crypto did compiler and now ramping in the shit energy and in you bull markets which are also mood for us now from the victim to the more closer knit damaging and with to long term the largest group opportunity remains in automotive electric vehicles this gang cam as you can see on the right in the multi billion dollar range over the next few years and a further inflection point through the email power train segment make make middle of a naked and we be reaching ten billion dollars get an opportunity by end of the decade
spk_5: across the gamut of allegations john fong gun solution deliver high efficiency combat systems with easy to use product for the customer with proven performance benefits again silicon carbide sell it and and other games solution
spk_6: what is necessary and the aspire to do every day is deliver a combined spectrum of benefits
spk_2: to all power conversion customers by kicking the inherent benefits of gallium nitride or silicon silicon carbide to the next level our core again but architecture delivers performance with high efficiency or a wide range of power levels with leadership in part a qualification and reliability field allowed to the now did rivals that offended vulgar at it like logical integrated model allows for in how again supply with control innovation and ability to feel while others are now talking with is a good thing about getting into higher power would get we have been there for a while now and have been benchmark for titanium block and power supplies more than three years ago
spk_5: and in profits also bit of caught intellectual property
spk_2: and we're not stopping at six hundred and fifty board or nine hundred vote for tom tom has the only gun product in the market but are now pursuing and one sided the which twelve hundred woods which we think is well in the rian of can not just silicon carbide domain anymore the keegan foot is directly compatible with leading silicon controllers and an inbuilt integrated drivers no extra components or shrubbery required to interfaith are again without fate would and this is manifested in other growing ecosystem of solutions partners as we will review and finally are strong i'd be portfolio that i needed to find to ten times bigger than some competition and get that was not only how gang is made but also how it is used in many ubiquitous power application architecture for example like the bridge apology as a result plugin has enabled our customers with products that range from adapters to automotive from lower power to higher power from thirty watch to thirty kilowatt for example realize liberal by other jan fight and kill a what like solution in a movie food obligation every major category of power conversion can be targeted now including autumn would have been what are the chargers and in the future elected michael poetry in were just as well shifting gears to some of the the vertical know from lower power to hire public and then why we even
spk_5: as the gang adoption is happening fast know many good companies are in the market the market needs multiple companies to go at a flat rate and to support the customers
spk_2: especially at lower powered is happening with transform having the distinction of being in market board at lower power and higher power the customers could do more with less and a simpler architecture and bill of materials with our again solutions one of the things we china list is not to confuse the market and to do our best as to how again and again can held the customer been indeed there are some with information or myths and we call it that sometimes gets spread on and confused about gallium nitride the foot default no matter what you got your again normally of operation is what the customer and the application has always demanded in power that have been a constant that are many good way of doing it which is up to the individual companies for example dumb terminology like a emailed approach or being would approach or whatever the more live at the end of the big one needs to deliver the best performing and most reliable normally of get that is what matters
spk_7: performance
spk_2: in the delivered but superior underlying game technology and coupled with solutions are working with the customer that is no universal one size fits all quite yet for example here we show the right across from gun solution to get set of performing a emailed game in this case happens to be an ip billion in the same third party got demoted thing
spk_6: only as an example then there are all kinds of things about my god sitting and fox frequency so and so forth the fact is that years ago we have taken other normally of can do one my dogs thousand kid alert ninety nine percent efficient operation and that to a higher power one kilowatts which is more challenging
spk_2: this is high frequency or patient is a system designed trade off he his transform a lot of everything has to be keeping in mind the we work closely with our customers of was as part of the power switch is concerned the fundamental again
spk_6: that is due to the inherent nature of gang it is not due to any particular icy or other topology
spk_8: good gang been for trust
spk_2: and finally a lot of talk about immigration and drivers and it is very important but one often ignored fact is that modern day controllers many modern day doctor the charges controllers especially at low abolish an integrated drivers basically for free
spk_9: as it turns out and our eight architecture the integrate a small silicon fat with other again that is no i said i would need it at all in this gif is especially at lower power so integration is about their walked how you indicate to give the best advantage to your customer
spk_6: in the table below the list out some of our different you'd better benefits that they apply both to adopt doctor than charges for mobile and laptops forty five watched two hundred watts blush
spk_2: which is a key market trends in the last couple of years the shift for a doctor than charges to get very exciting for the gang one that are multiple would in from vegas companies of the lower power in which is growing and transform is also moving fast in the area as evidence evidenced by the million units shipped in december if you see here silicon obviously i've been working late in the past but now for shot in efficiency speed and small size the quite for new products game launches from here
spk_6: transform game excels in ease of use inflexibility compatibility with standard drivers no extra bomb components or somebody needed to interface our again to the external world
spk_2: which means cost effective easy to use the engines again performance with is our basic gun movie villain device
spk_6: is fully exploit exploited to a few highest efficient your louis losses among many other get adopters and the ability to go to higher power levels and reliably thought their the p again implementation the so called began in the emotive rendition of the normally off presents a weaker input and
spk_10: griffith and a or device
spk_6: another important reminder his pelican was an application against men from low to mid to high and then also be a dollar dollars today out of the again offerings and this is what to our bit of the knowledge of release products in the market by customers our customers systems not just stop
spk_11: for the future
spk_2: from again spanned from thirty was to ten kilowatts and in a cliche that can be when even even higher and we have demonstrated with knowledge and buy products
spk_6: many competing offerings nearby for higher powered in the future but to the they are limited to lord power so why does he can win
spk_2: but default our success at higher power comes from the underlying stability of the keegan fact architecture that allows it to be offered an industry standard family robust packages like the feel that the two four seven which today's he won't gallium nitride finds it difficult to do because of in hadn't device weakness better mosquitoes capability for again device that which is better and higher power from a smaller or lower current date what does that of competing and solutions and blue and reliability with high yield manufacturing of large area
spk_12: game pouch it
spk_6: and now with these attributes would be the tributes have enabled us to do is but the but strong ecosystem of solution partners notably manufacturers' of controllers and integrated drivers
spk_2: this includes market compete like diodes in a way to the dollar companies like fell under and a few others were be will be of not publicly announced yet in just the last few months our partners and from from together have rolled out for more charger designs and solutions three of them and a higher power reach higher power range in the low power of a doctor in charge of market at the hundred a due to fifty watts and one forty five what implementation where other solutions now color the spot gender space from for the by what to to fifty one
spk_6: he gonna get picture that if high performing and it easy to design designing with other solution in the ecosystem has allowed us to now increase the design in two more than fifty with old plenty of them in production the show a sample of the theater into
spk_2: loading the recent developments that include and as the highlight like your hundred watch that one fifty watts and two hundred and fifty watt adopters and chargers
spk_13: for a lack of and other applications
spk_2: the higher power space as i've said is extremely important had the power high energy thing i have the impact of again and on a holistic level the impact of electricity use it and carbon footprint
spk_6: the here some of our jan four engine by offerings now compared to leading silicon carbide products in the space the got other gallium nitride the more tebow gallon and is not quite ready to the at least for higher pollard especially in come a little with packages like the futile four seven
spk_2: as an example shown here our highest power fifteen million product by the way to to the best we can tell the for the last are on for a qualified ramped that fifty volts gallium nitride in a discrete beautiful seven package it out the from silicon carbide whether it be the moffat or the gf it both very good for next by strong companies in a standard package in it's kind of brits are get twenty five to thirty eight percent lower losses and ability to littler control of poverty level from a single back in up with configuration
spk_6: again light of gallium nitride and transform than the caught number one gallium nitride offers louis losses and high performance of leading power them with the different materials does extending the moore's law as retirement of power conversion enabling performance of the power interview in this case to continue to increase by time
spk_14: with fact
spk_2: gallium nitride on silicon which is a drunk from platform in the market
spk_5: our products are made on going on silicon to that utilizes lower got the the consulted and after again if he for step that we have full ownership of you're not limited to just an external foundry for example
spk_6: our solution
spk_2: and any get on silicon for that matter will leverage a full silicon wafer five minute actually something again the transom as joint ownership of control of in over japan that joint venture and then the pool wondered aloud the the automotive qualification robustness in defeat so customers have selected our higher power offerings across the spectrum whether it is crypto mining which is extinct power hungry application later we're taking a class efficient gallon letter to visions have an able to one percent efficiency english
spk_6: and by the with one system at that one percent can fill a few hundred kilowatts per hour and two hundred pounds of carbon footprint equality
spk_2: what we expect is more than fifty thousand metric tons of things can be possible from what we assume a dollar twenty twenty two outlook just in the crypto and the game getting segment combined together top right in the solar power with the how along with our customers enable titanium rated power supply for well over three to four years now and again suppliers are now trying to follow suit in the domain which is great
spk_5: efficiency compactness of again as an leading getting suppliers to adopt again solutions including pollard by six or seven percent white at the same time because for system face by more than ten percent and being able to do so pricing the final power supply the same price as the older generation for the conclusion
spk_13: and then that is over idea of industrial energy military high though and immobility solutions from five hundred watts to for kilowatts
spk_5: they transform to the winning liang to grow the high power segments and linking of a leadership position here
spk_6: electric vehicles out a keep up with area for game and transform and we know silicon carbide has done very well in the segment
spk_5: and again with it's score bloody the fundamental kinda but the i just showed is poised to enable long term benefits to the any marketplace
spk_2: essentially get help address the barriers the floor charging and range anxiety that stem from pollard losses and the heat them since you to the heavy bulky converter and in waters with inefficient philip and with electronics
spk_9: johnson has automotive qualified easy qualified products to be the jan for high powered already rented the market invaded commercial obligations
spk_6: not only that but we're targeting to stay ahead in this game by enabling in future twelve hundred world gallium nitride and taking on silicon carbide there google announced i don't be that those in that area in future
spk_4: all in all we look forward to gallium nitride improving the elected vocal range
spk_2: i tend to twenty percent in future or even more depending on the efficiency enabled and with higher power in a small form factor in a blink faster charging the acceleration of the a the opportunity and that get through adoption scenarios where like makes the longer term finale of again hybrid tract of the specific get opportunities in eighty two they are in the area of or be seen on what charge of the significant waters with a dc to a think exhilarating what
spk_14: earth and old the next several years the bill how unlocking the driving and what your opportunity something the are very closely working with our to be partners
spk_2: that will triple the accessible gun content for automotive the able to be in the market with that fifty boards products today and high voltage solution in future for all the key in slot next the mall into alert december quarter performance and key factors driving our growth
spk_5: first and foremost we're happy to say that with delivered on what we had said what we had said achieving a hundred and fifty two percent revenue level from the first half of the ear to the second half of the calendar year
spk_2: with key highlights of maintaining dominance in the high power segment and gaining footprint in the a doctor market including the important milestone of one million shipments in december
spk_6: second as evident you have delivered multiple quarters of product revenue growth now launching on top of over licensing on top of over licensing and government revenue business
spk_2: the keep the focus now is on expansion and scaling that any product when we outlined here several key metrics that me that you during the last quarter and put them in perspective as to future growth first part of revenue in the quarter what's the point six million our eight successive record quarter in the department with dollar one million of government revenue picking up the rest klingon continues to grow it shirt and a doctor in fact checker their yes now with dollar fifty dining out of which over twenty plus or production
spk_6: we look forward to going especially in the hundred what plus segments you can call it the high range of the lord power adapter area and we're really pleased to have new solutions and reference to thanks not only by transformed but also by your partners
spk_2: cool like the began solution or say the emotive type of solutions because of other news of facing and no external drivers needed design a bloody and i'm ability
spk_14: we are pleased to lead in the game or the high powered broadly speaking three hundred what to popular what is it production to the and many of these applications in the wonderful color wateridge
spk_2: lily includes the designing to now or thirty out of it's more than half or in production we aim to go and for their get into it like energy pt power immobility will be opening up new to thank you to thing
spk_6: we how we have seventeen products in our by portfolio low power to high powered said fifty was and the only nine hundred one product in the market in such a small packages and see what type of packages three of this are automotive qualified box already and we will continue in future to expand this part offering to meet our customer and my kidneys very importantly now a significant emphasis and paul positive challenges will be a shift in focus on capacity
spk_2: expansion and managing production growth in what is still a challenging why rights of oblige in an environment expected to be there for next couple of course we might have very important to point you know what adapter product capacity but the one million bucks in december and now have expansion efforts underway for reefer capacity both internal and a treaty they go it's basically you had the next quarter product revenue growth
spk_4: could transform and other partner solutions benefiting the market
spk_5: focusing on thing execution and planning for capacity initiative
spk_15: to that end we have started moving on the previously announced global for spot the ship that we talked about last time
spk_6: nobody the first is also an investor in toronto
spk_14: for ebay for expansion to support significant expected twenty twenty three the month
spk_2: a lovely for five joint venture with our financial strategic partner remains on track and looking ahead for various initiatives that also to be ready for higher ups in the future we're working to our industrial and automotive partnerships that women salt and the a off several drives and robotics discover if a key partner for transform we had a milestone deliverable delayed that has shifted some of the cash payment receivables by water or so but overall no major problem change with and expedia with our latency and some of them that their partner and especially they look like span game in the autumn what do when he the area our next milestone here is our jan five easy automotive qualification of a gin fight already having a tooth commercial qualification and introducing the market the eighth the autumn
spk_6: what a qualification we expect by media with middle of the year lola li is now moving to target is part of development phase with our four and five products for onboard charger and different if he can weather and also the transform thought up to date that was up to fifty kilowatts of prototype in water the driving in what are that can be chewed but peddling other higher poverty and fighting isis
spk_16: we continue to dining with other japan based on eighty four twenty twenty three twenty twenty four pc defeat and or see opportunities
spk_2: that remains on track
spk_5: the government revenue and a business them instead he is well on the herbicide this is or if if he force be increased our traction with the deal the customers we continue to support them and we had also engage with a couple of commercial design of still the everything the progress feedback get with the cycle of learning at our customers the maybe go
spk_16: graham is running exactly to plan and like i mentioned the also have innovative twelve hundred was at indy which is impact supported by an id ugh
spk_5: grant i'm contract from our by a department of energy
spk_2: with that a quick recap of other major announcement in the last quarter and in january with starting with yes cover convertible to exit the the jan for automotive call a petition continued partnership with don't think highlighting the superior performance a ease of use of other gallium nitride financial investments or forty five million that as friend and balance sheet the second again a an area
spk_14: of course today alert the park avenue record for the feminists quarter
spk_2: all in all we're very excited to be in the midst of an all around can adoption growth with the transform an hour world he fell again companies in the market he can focus remains in expanding our leadership in the high power again going would footprints in the a doctor than fast chargers and capacity expansion keeping up first with the demand and then next year saying well ahead of the my car
spk_17: with that i'd like the tunnel or to come on for other financial to them
spk_18: but you from atlanta literally joining us today
spk_17: let me start with some financial wise for my remarks i will defend both to gap on non gaap results which i reconcile to gap and oppression we still don't get results exclude stock based compensation depreciation amortization an adjustment the fair value of a convertible notes starting with income statements can see if y twenty two saw continuation of our growth story little got a non gaap revenue comprising product and government was four point six million dollars in the quarter compared to three point three million dollars product the government revenue from the prior quarter and two million dollars for the equivalent quarter and twenty twenty this quarterly year over year increase we've driven by record productions from bumping shipments including other one million units shipped the month of december that's got the supplemented by continued execution on a for your government contract focusing more know a it was the three months to september a success of for a quarter of product revenue growth and record product revenue of the point six million dollars but competing this quote up to the same quarter last your product revenue grew by over two hundred percent been driven across a broad range of power conversion applications couldn't face charges and adapters gaming data center the couple nine costs a good sold what's three point nine million dollars in the quarter an increase of one hundred and two percent year on year below the revenue increase of one hundred and twenty nine percent over the same period as cogs increases largely driven by strong volume go for several moccasins we have also increased are manufactured gus now on hour as termination and investing in incremental capital equipment to support tata group operating expenses on a non gaap basis or four point four million dollars the come quarter to get the four point five million dollars in the blackwater but competing non gaap opec's to the same quarter in the prior yeah we saw twenty percent increase the school been primarily driven by an expansion and our sales and applications team to support our increase revenue together with one of compliance costs tied to a year and change trying to eat yes i will focus by the marks you a non gaap results the revenue growth i to continued or takes management resulted in non gaap eat loss of made sense of the quota for said improvement on nicola quarter the plan until you coming into the balance sheet across all aspects of the bouncy the same a quarter so significant team initially assets company had total assets of fifty five million dollars as a dirty cost the december more than three times the equivalent number and the plaque water this was driven by strong raise activity either in excess of forty five million dollars before fees to balance sheet resulting in the cash balance of forty one million dollars of and of the cotton this raise acquitted strategic partners such as as global weaver together with strong institutional investors from nc an important be most of us are up upon think least a quarter primarily due to timing of the seats and funding tighter development agreement that your skull funding we anticipate to the see in the near future and then she also increased to support unimproved traction among the needle continued revenue growth
spk_18: the company also significantly the just a liability taking point six million dollars as of december thirty first this is just over fifty percent of the get four million dollar liability to that the company had and that getting september the key driver here was a successful conversion fifteen point six million dollar note with the company held with a long
spk_17: damn cost my partner and know shareholder of style this combination of funding activity loan conduction and are ongoing focus on cost of lucky capital management of significantly strengthen the balance sheet and it proved ah stockholders' equity position by over fifty five million dollars in the quarter it is true these developments and we believe the company is very well positioned to meet the qualification requirements for applause the are common stock to nice that this is an ambition them will continue to pursue now walking in can lead to realize this i the next late and transitioning from a financial performance i wanted to touch opposition companies very well positioned to go across multiple segments including consumer data centers crypto mining industrial epee and in the long at the the market you're right now at a stage will be a c strong adoption and as illustrated in a presentation to the strong rather neutral revenue trashing and just today several segments couldn't consumer data centers capital and industrial applications picky key proof illustration in the shipment of our one million units in the month of december looking ahead of strong balance sheet blow us to continue ten best and uncle danger because all aspects of the company with a strong foundation and place are focused on the execution and shooting that we can support the growing demand and what we believe we are broad market flexion point in the medium term in addition to an existing revenue streams me to expect to see initial revenue and automotive statement in a statement from there the company will drive toward a long term target model enabled by continued momentum cause multiple segments no including automotive tony out the next flight what i'd like to reiterate our long term operating model we're on the process of building a high gloss cash generated business the company has multiple revenue streams including government product for several segments and eighty gotta go and the current yeah we've continued to generate solid revenue from with licensing and government contracts and this has been supplemented by significant coat and front of it as mentioned earlier product revenue has grown eat quarters in succession and has become a much greater proportion of a overall rating in the year going to seventeen percent turned fifty percent the school to be driven across a broad range of power conversion applications could the fast chargers adapters gaming data centers ketamine we a cheat on your product revenue growth two hundred percent last fiscal year and are targeting a continuation of this trajectory moving forward to twenty twenty three onwards as we continue to ramp up production revenue across a target segments product will form one ninety percent of already as with our current year this growth coming from multiple segments and not simply consumer automotive revenue will fall that contribute to this multi sig goats between country that's consistent rapid acceleration and a product reading alleged can get to talk a five year on uk get in excess of fifty percent from a larger perspective a strong for portfolio now including each and sort and jan five parts together with of manufacturing excellence or translate of sales into gross margin and forty percent beach the company will continue as it is commonly doing investors support all aspects of a cool operations the stable existing structure allowing us to translate gross margins into developing an operating margin that we believe will be in excess of twenty percent concluding know what a few key highlights transform a pioneer and leading provider of gant are conditioned to basis yeah disruptive technology to provide solutions across a number of significant growing markets we have established a strong network of blue chip palmerston couldn't kick yeah morelli easiest way for your scallop most but commercially ramping with strong production revenue growth know going for each successive quarters and of a comprehensive product offering to do the it's customers' needs across a wide range of power levels of segments all of which is underpinned by strong balance sheet the industry strong the ip put portfolio and a very deep county
spk_0: this concludes appropriate but he was and remarks on with know like to open a call to any questions operator please proceed with managing the cuny portion of the cops thank you as a reminder i left by to let you know that it is far one to ask a question all parts from on hundred let a toilet at compile that you're in a roster
spk_19: and we'll take our first question from david what i am
spk_20: please go ahead i don't think that to my for the question congrats on the the continued execution here
spk_1: i'm just that maybe it maybe a little sorry yell alumina colors are you use you shift the one million in in december and it we kind of think about that that cadence going forward is this kind of our a level said that we should think about expanding honest go through many for a monthly basis say that the flow with maybe
spk_21: to draw a line million million this quarter and then continuing or what do you think they'll be sunset bad or or maybe just a color around that that project be helpful
spk_6: yeah i think a tentative that hum
spk_2: yeah dylan million leg with it was a key benchmark is is it either reminder of the capacity effort that we had put and a large are one of the large orders that is something nullity definitely in the doctor business so it's not quite exactly one million one million and the also focus on our mix of firepower to lower powered that all of a segment so
spk_4: yeah it it's not exactly a month to month and usually the december a numbers that are in in the doctors went good for us but the clerk the fundamental point there is now we have established the back the into the multiple sources of packaging that allows us to do on one indictment acquired or in future but it won't be
spk_21: exactly two things like that
spk_20: a million million impact on the of a mix of products package voters die products the i it bothered products so it really depends on the customer mix and in any given blur okay very fair thank you
spk_2: and and that anyway because i think about maybe that that makes that you get ship this quarter just kind of thing about the it's why power range lot of unit how did that make shake out there is a way maybe path that bonafide that magnitude of of lower but the the forty five vs middle upper end of act three hundred bytes
spk_22: the in in the in the adapter space itself it was more focused on on sixty five watts was the was the hide on day and in the doctor space and have you look at that complete different lie lower power adapters was it's high fallen behind had a good death of with unix why that is very different because the i forget what you to force
spk_2: avenue the different partner
spk_20: sixty five what adapter be griffin but in that adapter space it was definitely that sixty five watch which was different on
spk_2: and affleck and i'm at uber you before have kind of talked about that the differential in your your packaging and what it allows you to run in the there to become a higher power community step steps do that again it may be just that the had to be on a better understanding of the importance of the packaging it and bought by that matters
spk_14: short so at the t to hi paula right and and desist physics that nobody can change is that he'd need to be taken out right off from the day which is gang or whatever semiconductor maybe to the package to the it seem to the outside what that it just basic physics or that cannot be violated hill traditionally the higher powerful
spk_23: like a coma robust packages which nightly interface to eat think our i have a good but under the fence onto the to good terminated since we're foreman flight the teal packages is to force i went in particular with have been an industry foreigners silicon carbide you the use of that extensively again you of it but what hap
spk_14: and indulged to your packages is that
spk_2: and then that is though that of the input voltage things that happened in the application and it happened in any obligation but it's specially in that your packages combine of again
spk_6: or the higher power packages and alert transformed can solution would the integrated the approach of the silicon fat and again a together bringing out the best of both worlds is really immune to such or input voltage fluctuation threat as the other approach of achieving normally off with is this would approach the input of the device in that is weaker and more susceptible to those the the what they have to do is put it in a different packages and which means for the thing followed you many to battle of two packages where we could have done it or we do it with one package for example so if the the crux of the matter is if the fundamental weakness of the
spk_20: or a more detailed can get that manifests itself in the fashion and and they'll be a yemeni future things will improve but that that is the crux of the matter which is which we have exploited or gallium nitride silicon carbide also for that matter is widely offered in audio to four seven gallon might have been allocated him okay
spk_17: certainly reset color they're very helpful and then a while after like and i'm in for game and if you are you gotta think about that opportunity that out of us and that the limited resources that do you think about your embed much going forward maybe over the next six to twelve mods and in where for the great athlete for and best and i guess i do get to a point maybe a tipping point where you big enter to maybe need to focus more on that the higher quality or the higher value products parts of the higher volume or do you think you have enough capacity or resources the run those kind of simultaneously just kind of given that that strength of the job that you paddle the last several quarters but we sell my house david a like the very good solid balance you know and i guess is the opportunity to invest in baseball thin and callbacks as going to mention to to bring up the the class the that it's an able to nibble higher volume and also investing and personal others do with across different aspects of the company what about six
spk_20: nop locations we have invested in and developing our manufacturing team and going not and will continue and to do that david adding that the great thing about the company is that the strong a base that we've established than and the strength it was gone across a number different parts of the company and it's building on it
spk_0: rather than than really investing in one area more than the other it said a gradual growth
spk_19: great thanks so much and of atlanta for but that can get on that the salad or
spk_24: i do and our next question will come from any and every while at the capitol please go ahead yeah good after you guys thanks for taking the question that get to grapple with strong advocate it was really nice the say i'm at a couple for me if i could on our best start on the fast charging it ll an adapter revenue at that you gotta be driving the you describe to us the market share day that yet the pregnant i think he thought in are you prepared remarks
spk_25: that i believe that interface day and and the need for no external driver
spk_14: you know that plays a role in your design in you know is is them is is that what are the major i read them to share gain the really happening it's a died the level
spk_10: is your a the addition to that is contact around the here again dynamic would be great at eleven o'clock hour
spk_25: yeah a good to he never been is the one is that right so other parts of living thing for a wide our parts are easier to in the go to seamlessly interface with outside world can use we don't need external drivers to be an oddity you need to get a driver's that come with the controllers to whatever this like to right now doesn't like to more solutions partners
spk_24: of inclusions with transform scan or external solution partner company like diode than that i know as well it's our solutions and of others like that we not announced that this ecosystem have thought basically else amplification of far in a holler are other resources or market footprint to a creator to the a display integration and second actually other performance of the gathered fifth other fundamental game device or to the vet the for knowledge in heaven can divide the still higher performance because of a superior switching characteristics that are will be the device designer material skip of the ah as he would be those get oblivion device design enable so both
spk_6: audrey than either of you and of are high performance
spk_5: the performer thanks a lot of sense to yeah that's helpful thanks said
spk_2: another what your that and are you guys are the sole source granted it when you when a design in is it is entirely short sword on transform get
spk_24: they come in vegas mixes and flavor said typically what we find it the larger companies may require multiple sources so at least on paper
spk_25: at some do use in this area multiple sources some basically effectively me end up and becoming so so for the with somebody as his gang frankly or our again but ah yeah the it is important to have a include some people are multiple sources agreement that said some of the folks who go especially when we go him with a strong part
spk_26: no solution right a complete solution we have got some of them been that are so source while others especially the larger players will always one down multiple sources
spk_24: i guess and if they said the then and i guess like you get an even do a monkeys was situation you know you're good at strong performance it easier to use you know saturates that you are you can gain here once your insides wow that rachel outset daughter current on this because like i said before this is a very large market i like the need many thanks to the gun and the market that was booming in the late nineties into two thousands were multiple good companies and solutions were required to sustain a very large market like worldwide at super helpful as a was either you or mario also said up that for the mayor koch abuse epic at think the term broadly with you and thought about the across crypto mind a gaming adding with across cook them i gave at a load data center with imagine legend but i guess the question was are you seeing them as dumb in in crypto my name i think i think last quarter you you imagine the gaming
spk_27: it had been strong and and strong as my can be made as that exactly like apple was the a robot can likely conservative
spk_16: i got the sense that the crypto was a little stable and data center with a little on the come on guys like asked about that because the the color with me that the man does the strike quarter used it was more broad and i think crypto crypto result imagine but i guess you any any context or our you saw the last ninety days
spk_13: in crypto gaming and a data center and and i get the data and he got that about their what you're expecting there you go to the year lot
spk_18: in the what to contain the recently completed quarter of the higher power of products so crypto was the the leading share of our higher power products in the in the last in a data center
spk_24: the study and big think especially like with that in i didn't explicitly say defend with the new regulations coming out in the european regulations especially the data center required and begging him flat out of life by january twenty twenty three the expect to see an uptick in the data center a booster a higher power
spk_28: apps by a second half of this year or liter up and for of this year
spk_24: got it got it again the i guess color remains you made is robust the right way to say it they are like a cigarette while there are eight hour steady customers are on the list very helpful and then just one quick clarification for me or at the very end
spk_17: where you're going through
spk_24: the launch our model was it
spk_0: in the uk initial auto read and twenty twenty three
spk_29: yes that does ray another what we're looking at least twenty two or at initial an automotive them of
spk_20: off the base game for the clarification or leahy guys and our next question will come from richard channel
spk_2: they go ahead i will because for taken my question bomb rico follow up on the topic goalkeeper come applications for your product revenues here
spk_13: well maybe ask another way here i'm i'm how much of how much of your eardrums your product bro your maybe read the oh you're coming from politico hype our published author in watson above the were you characterize required by law course
spk_1: in the end of doctor portion of richard the dollar late in the last quarter majority of that evident in the doctor portion was the centered around as if i watch
spk_20: directed that trend is to now
spk_18: get two hundred blocks hundred and forty watched as another are important slot they are other partners the diodes and us have provisions together and then also moving into a two hundred to two fifty watts but last quarter shipment that the dominant application was active i would
spk_17: okay
spk_24: that it's helpful quick question on some numbers sheer i gross margin them is some quarter
spk_20: if i calculate right around sixteen percent or sell his old at lower than the last quarter than a big license or children are two quarters got twenty one i think i heard you say some increased costs investment to capacity and others any mixer yield the dynamics in there really get help us understand by that when downwards and gonna what you expect fall in the sir jeff jeff exactly you're likely thing is is one of the keeping the retinas as you highlight minutes essentially under percent margin than and we did invested in the t we've got a simple head characters to support the gulf and not just and and deleted also denies if scylla to him and income in or near pam i think that you won't we
spk_25: oh see or or mountains can have steadily increasing on a combination of all that volume continued focus mentor them inefficiencies in an august increased as a fixture coast component as well i think the and alone can muddle remains the same as weak as we talk about forty percent gross that gross margin in the longer term for and cook at perfect like course i'll jump at a line here on the autumn lot of space your you talked about the and initial run is not a modern and twenty twenty three
spk_14: i didn't hear you say anything about heavy ever any design ones with an automotive only am i got relationships to ones like really as an example that
spk_13: i'm assuming you don't have any wins with oh young she had that in order to get that time frame of of our revenues and twenty three one here at the have a design when in place we they will announce that right away and in then how many these we expected to to me have this year
spk_25: if they kind of a in an end of the year early twenty twenty three because it when you say you know toward the end of twenty twenty automotive revenue the in in a production revenue so that would be for in a this automotive it's it's her it of with the cycles one of it's also of our revenue will be one or two
spk_13: quarters head of our out the summers and avenue and that may be going to and liam thought that it will be seen a car model by as much as six months i'd when we have to shovel or product that how automotive of lighting a huge typically structured so
spk_30: this would be basically for twenty twenty four models or so to speak and we would expect and in in this case it end of the year or early twenty twenty three to confirm will to the design in process is moving along at it anymore
spk_31: but that's what we would expect in in that timeframe now independent of from form the chance on license that technology or other good partner and expedia they are independently i'm moving the automotive he the daily dining in which the will supply of a force and
spk_0: bobby for the hippie the for so that would be another source of
spk_18: revenue automotive revenue up for that me been ahead of that anything
spk_20: a perfectly for like be tell us open be printed thanks
spk_25: by them
spk_6: or next question will come from michael national let's go ahead hi this is michael on for craig thanks for letting me ask couple of questions and congrats on the other momentum is in i first question or zombie renewables an alternate alternative energy markets i believe you mentioned that somebody is optimism pulled into more of the intermediate the near term could you talk about what changed our for to
spk_32: wow that to happen if anything and would these the material contributors and twenty twenty two or more about twenty twenty three mb on driver
spk_20: yes so thank you have thought possible other traction in the high power the wonderful kilowatt segment want to bike and watch the to crypto data centres game mean this is allowed the market dotted recognize the potential of comes on gang know hundreds of thousands of unit seven vamped v performance
spk_33: have been established to impart that and other continued designing effort so
spk_25: or has allowed us to do that in eating some for example some in water opportunities or energy storage u p s those kind of application so yeah we do see in twenty twenty two and it was it was going to be were expecting that was in our planning and ah the good thing is it's getting realize now so be to see see that happen
spk_2: new in in a twenty twenty two great thank you are my next question on his on your visibility so you don't start to see the growing number of design wins and while acknowledging it's early or could you characterize the level of visibility you have into the second half of the calendar year with either you're high volume chartered operands i think you mention
spk_34: with you some attack a on your are are often like data center and and you talked about global energy to but ah in general what else or casual every on the rest of your visibility and or would allow to what extent code some these new design when the argument is cure for convert into production
spk_0: yeah no the do expected the were designed with both a lower polished as a lot about a year and higher quality the urge to start not necessarily every single one of them but does a lot of them be expected and and what would that i mean than our goal they need to keep going product revenue a quarter over quarter act of that that's the key
spk_35: anger the dimon remains that it's wrong for we're very excited by that it will also be managing to together others supply chain so worldwide and he breathing overcapacity that will a complete the pitcher but yeah we're very excited the demand month
spk_36: seamless strong and we do expect a lot of those did answer to convert and we do expect our product revenue the to keep going quarter over quarter
spk_37: i give her much and here
spk_2: i like i said will come from or hershman when a i g ancient that one than a good faith i had hi how are you could readily of regret
spk_8: thank you
spk_37: so it is in terms of your a an anathema away but make it for quite a different way of acted as well in terms of at the time with it because the chargers as we go up the power stale the are higher with great but that would have a higher with great as a higher power
spk_2: that charge
spk_17: don't let look at does not like a sixty five watch which is the highest volume in the market today that was on our by extension that was also our highest when we saw new or have been of the newer orleans result be did see adoption in the higher powers of those are the tree be highlighted
spk_20: it doesn't mean we didn't get to sixty five but yeah you're if you're like the are thing in the hundred and forty and to fifty what we have seen some night so nice when as the market debates lot of the market either sixty five what but slowly it me a move or to higher power levels and ninety hundred one forty and he was even higher than two hundred
spk_37: okay at it through both realizing the good parts and goal the at to what happened how a court and how important for that it's it absorbs aspect of it that the nothing but failed tears and with that with bet drive a good piece of the about for ten days to get read your target
spk_2: and yet the absorption of our fix cause and the in it and by capacity six hundred pm already put in that that is a one of the key gross margin and i liked gammon flubber it on that yeah yeah i think i've had a cousin one of the saddle i or and i think care volume will help obviously jumps out of place competitiveness in terms of a yields and you can you to focus on it efficiencies in a in our product offering side i don't think there's any one factor i think it's a a few but that certainly there the more revenue we have that the less impactful as six costs absorption is that that's certainly true as we as we continue to grow
spk_37: added that a life let her lack of both or me with a to terms of
spk_0: piping belka progress i has failed of the hint that ordering off of hire them in a base level court the higher
spk_1: the tower what what that delta like ended up in for bilbo were hired the high wondered what it that the irony of the they appear to be there as well that it's the that to the range and and sided said kind of under under the under a dollar for sixty five lot so no kind of the seventy eighty center nineties and redeem the forty five what would be bit lower than that on the higher power side on the on the crypto mining the data center gaining the have you take a lot but you're looking at kind of up in a have now for four five dollars those kind of view the right and had you go to our highest auerbach up
spk_0: for energy that the in the fight to tend to the what but you're looking at the not of seven eight dollars to and of it's be so it's it's that connects the on other parts of our capability or that current getting to publicly of the part is a leader next so different for that's reflected in in the beef
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