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spk_0: good afternoon my name for the and i know the or conference operator i would like to welcome everyone is trying to train on the of the conference call allied that think on the it's been any background i and after with a month feel good question and answer question if you like that the question during that time he from star one under telephone keypad if you'd like you're a foreigner question is by far one again they beat i bet you do confront it being recorded during played concentrate on or my arena chief executive officer from it for each cofounder find a president and chief operating officer and kayla with boy chief financial officer before he began i would like to point out what their the fight for location of the theater with they call and with management will be referencing during the comfort come the find funny and and them through the like been complaining about religion passion of transfer bug by and will operate on a phenomenally pdf for the fence into the cockpit calm additionally during the course of the called the company name all orbiting event in going the company financial publisher strategy put out and bit rubbery hey look but the thing and market and other areas of depression and i'm not op won't run a company or me that much for an honor and marginal a company of but the total potential impact of of actors on a business or to be expelled much any factor a combination of factors may come back shoulder been to differ materially from load from pain and in a for because the it am i have all the a drag on for include an assumption of look at the in the during all may or may not occur and the actual are both could differ materially ellen burstyn for low budget repeated or implied in production of through the company teacher performance berkeley that management be as as of today may twenty four times from he killed near america anymore or anything about responsibility for the actor here i'm fearful the for look at the it a company hundred feet no obligation that part it's about where you're a bit and forward looking statements regulate them after the the another cautious informed that enough for actual or both or the changed in the company and like the kitchen for more detailed information on that have been and the complaint that that when you learn it from the red factor of our country and a i've been trying katie and alert but the confines of the as easy but that i went out of however to transfer the email probably that for opening my own three forehead
spk_1: if you wanna will get were rewarded a goal would appreciate you joining true blow me to the new york is go border on losing highlights the achieve a little bit of both i'm gonna stop it or not working with speakers in both you year the little here please don't want to go to new increase cruiser to negotiate new to work with for people or one million dollars you could still go to google grown the fourth quarter of fiscal year two people the revenue increased cordially for the night and simply because work global warming the boat he total and a little the border oh boy ninety million dollars he's a cure looked all largest she began i'd by will gym for failed to lot longer pull the company do very well over half a million in a job pretty the what caused by which oblige the my digital decoder really demonstrates don't have good do a little shoot me by boulder you look you're allowed to build up the wish i were in from a tier one fortune one hundred companies including undernourish butch so there will be people the knew it was super down in for more than forty million glad in the he said the like higher efficiency for sixty by was for judging about their traditions when compared with competing more done that the require a larger number of to of your device for similar applications the result is local she began the a lower gotten have to do more with less gotcha cool as of march thirty first twenty forty two or thirty four million dollars and now part because agreement for a little working with the developers was months grimace
spk_2: thank you my you're in good afternoon everyone transform v and had continued our products revenue ramp delivering other night porter how productivity growth and submitting of a leadership position in high powered yeah we can you five hundred thousand trucks unit honor for killer what dr gallium nitride a stronger those of other targeted deliberate investments for the past several years in high performance can project for the broad minded asia from low power to have about to the best of our knowledge keegan is the only gun compete would be shipping anything he looks you know what range in these i was introduction to it display to innovate shrink listen to address it she begins on a gang can in diversity i like blockchain computing get a servers communications gaining energy renewables and electric vapors while just magically going to shit in the lower powered fast charger a doctor can
spk_3: you're sick
spk_2: first i was shot recap of gallium nitride the overall value proposition our leading position clarifying market to the shooting of idiots types of gang products and interview electronic tradition in a march twenty twenty two have been potter and then our expansion strategy for have by twenty twenty three gallium nitride gang is a bike then get syndicate the primitive for color conversion that reduces electrical energy which and evil compact power conversion footprint and lower power systems got a source of variety of electrical power conversion application chargers can and voters and as the significantly better than traditional said again and much better than other you semiconductors like for the can provide plugin it established innovative design pain your a leading infection or supplier of high voltage can polish semiconductor products or the widest range of applications from twenty watts lower public to order for kilowatts firepower and an application eighty eight ranging from for doctor than five charges for which can have been well accepted the mark get today to higher power data centers mining crypto mining communication infrastructure brought into shield renewable energy and in designing for automotive liquor vocal applications as a result of a targeted investment strategy other color and strong fundamental ip with the one thousand patent that and strong portfolio and villa it high performance high quality products and invalidated by digits blue chip investors customers and partners financial partners design partners manufacturing partners and automotive an industrial market customer but years as well as the us department of the difference a comprehensive and differentiated product offering backed by a high quality manufacturing affection basically essentially own ran the market now with or forty billion hours in our customers product in the field including book high power and low power again and resulted in our dollar twenty four million the revenue in our fiscal twenty twenty two a record for us and a one point nine explode about in spite of a challenging supply chain management our focus is on building a product driven faster and and profitable business and we're already off to the races is doing that while we have multiple revenue segments like started the licensing and now government revenue and products the target or ninety percent of the mix from front of revenue and twenty twenty three represent the a two hundred percent correct from over twenty twenty yeah committed to making the required operating and capital investments for increase kill high performance products and solutions for our customers and fostering get adoption pollard multiple and markets to achieve our to pitch and our kind of model of over fifty percent long term carrier with gross margins or forty percent and hope it
spk_4: markets including or drink said
spk_2: the in a unique and different cheated division among the games of life to have products in the market today that dread a tremendous multi billion dollar market opportunity of game for power conversion across the really affect again for more power adapter than chargers to high power server crypto data compilers that we're all really rank in our customers are already granting him to industrial energy and renewable know also production with quite a few account and in the mid the long term large growth opportunities with automotive electric vegas for their bolstering alone can picture the on twenty twenty four twenty by oh again solutions deliver high efficiency complex system with easy to use an easy to interface product for the customer with and performance benefits and in silicon that have been carbide and other getting like a traditions like he won't get the cancan is in the multi billion dollar range that of the gang can be sure he here that is reasonably addressable buy products we have today all in the near term pipeline over the next few years and from twenty twenty one to twenty going to fix a very strong five year growth of three fix killed by a robust fox and brought up in gun can watch the all powerful conductor market in each of the segment eight years a shown here and then a further inflection point to elected vital part and segment and make decade yeah i began and transform appendix larger anything and market in twenty credited for six billion dollar get him one of our key attributes from early on this has been our philosophy is doing more with less the want to enable our customers by taking the inherent benefits again or both silicon and for the company to the next level and delivering microphone benefits to power conversion customers our patented normally off can integrate fed architecture delivers high efficiency or a wide range of powerful with leadership in particular for the computer that would it be filled allowed with the rivaling that offended senate them with some zero point three foot which it's called failure in time for billion hours of operation the against epic like vertically integrated by and allow for in how can we put with manufacturing control innovation and ability to kill few other companies are now talking about getting into high powered again we have been setting the benchmarks for over four years now for example taking in class kilowatt kill again power supply with our customers and in profits also bit of any fundamental idea for the thing the other products than from forty by watch to tend to lot also we have that in terms of high voltage offerings expected goals nine hundred was being the only company with the men hundred one product in the market and are now pursuing not be twelve hundred one gallium nitride which real problem is well within the am of get not just that can provide than three and more keegan said it directly compatible with leading silicon controllers and that england drivers bringing either design and drag a movie no extra components or shrubbery of the call it i needed to interpret them again without think was a feature that has gotten a rich ecosystem of solution packers and the appreciative above all our strong ip five of ten times worse at some other again competition underpins all of the strength that called package in lots of gallium like i'm looking at the manufacturing that of was very key but equally important in how the gallon milk and it's use in common power application architecture like for example the totem pole bridge topology that is now widely used and he the core example of transform original gang product design english another one about the attributes from early on his the ownership of our gang the full production sublicense and advantage that is becoming even more important intellectual political climate the statue the design of our faith robust and easy going to face normally off can fit with directly own and control over at the the for manufacturing with multiple and more ctv the actors did have the tools used to making are growing gallium nitride on fee for example silicon wafers that they do into geographical locations on by transform from california and japan our be for factory is a joint venture with other convention strategic butter and to the main it is a high quality manufacturing side with the only form of your board of huge for like a matching though the fella consumers running in the same factory another feature that have contributed to have a high powered game for the field and quality when packaging is done with other people fact partners we bring some for my team that designed for example allowing again to be efficiently used in robust feel packages desired by high powered customers that's what on the list is our application and designer force with customers and solution partners who vote preferentially with our again for their control that or driver products as an adult transform has enabled our customers with products that range from a doctor to automotive no power to high powered as shown in shock from he was adopted and was chargers to more than ten kilowatt and even higher power systems are you realize liberal backpedaling motive all of our control what jen fight solutions for example in multifaith freeze application despite breadth of products is also complemented by the highest water drink the fifty was nine hundred volts qualification give it a few qualification which trump trump has always lead in been the first and then berlin robots on the petition particular product and now in the for innovative solutions like the for hundred would get action we are not a one trick pony refurbish the entire market think are gonna give customers now i will discuss wife again when in vegas where to go from lower power to higher power again get adoption is happening fast which is great many good company that in the market with getting metric notably at know about adaptive and chargers play piano systematically that into the high powered and low power together silicon obviously has been great in the past and still watched it but fall short in efficiency speed and the smaller size the quite for new products
spk_5: gan takes off from here
spk_2: a few factors that outline plugins differentiated benefits or competing again either the excel in ease of use inflexibility with a drivers controllers into with the can fit as a result of the integration choices that you no extra bomb components are struggling is required to the topic again our again make me for solution cost effective especially key in law taller tragedy and adapters for spot for them a like total bum off is key the intrinsic gallon like a performance fully exploited in our products get you the highest efficiency or lot lot is among many other again and then breeding the and robustness across the entire biology this is of evidence that very clearly by alert to one divine the with customers system in production as he get his adopted in many more bucket where to go to the with high range i had allegedly and high performance as you can see applications like thorough power gaming blocked in crypto mining that i grew up industrial and also select highland applications like elspeth some of these are more than ten times the power levels that some of the other gang of nitric offerings and it looked to the them the monolith in the no coverage along with the ease of use benefits reduced bomb and the infants again performance
spk_6: the underlying
spk_2: but results for our high powered dominance and from the fact that typical he gallium nitride competing in like interface to the outside world is inherently legal and harder to operate in many common back instead of fundamental the ventilation and elected controlled manufacturing does enable superior performance so peter dynamic performances and it is called from our gonna make such a loving smaller gained i to be used for the clean power level what his logic or sometimes even two packages for competing again or says one from transfer
spk_7: for the same application
spk_1: we prefer to lay out the facts about game for it's very of and hopefully speak to peer any confusion in understanding my customers or investors into space
spk_8: first off
spk_2: pollack that's too much power application how allergic like normally of products that are you still have been or anything like this is that the basic defeating and gallon bucket facts on the market to the around the your the transformed getting that fact just like silicon moffat his normal of how this is achieved whether he more game or other type of game or not at kind of technicalities of little pond other than what matters is the implementation by each particular company the solutions the performance the other the ease of use and of course the cost of the solutions
spk_9: high performance
spk_2: first come from the underlying again and it was not a function of a particular implementation for example a so called ghana if he just one get you high performance of the underlying again is not high performance the alert event bucket and of the most heavily to get higher efficiency of the big fact with other gallium nitride much as did that a knife in the thing application different lucky say that other gallon that i cannot improve but just pointing out where the fundamental benefits arise from and when it comes to high speed high frequency that is neat as gifted gifted gallon like against rather than getting making operating at much higher speed than silicon anyone silicon carbide finally there are vegas shenanigans out there about integration clearly integration is a design choice
spk_10: of of the offer
spk_2: clearly integration is important but where how i'd ethics of how each product is is a for example we can talk of a driver fec integrated and gun or other levels of indignation but lot of modern day control of have already integrated drivers in both literally feet in other transform can fit you choose to integrate a small noble did silicon fight with our i to get does no need for any external and internal driver in fear factor the phone or laptop education like a controller under the house with a drive the cause we have a traditional silicon like interface which the performance
spk_11: of
spk_2: high voltage kind my think now the higher power states is a very large market forget and wedding bottom they simply put hired the power the have the energy thing and back up again i'd been up on on electricity use it and carbon footprint at the holistic level hired the semiconductor content because the larger the chips and hang for to the higher market here are just gent for engine by offerings i compared to living silicon carbide offerings in the space at other types of gallium nitride like the team or gallon like and or not quite ready to take at least for high powered especially in familiar with packages like the feudal four seven you to that in added like weakness previously we had shown that with our highest power fifteen million product to to best we can tell this is the lowest the distant high school current ice power for six fifty one can qualify and any production in a defeat package that the feudal for some that outperform silicon carbide good for it and got i products like the moffat in the jeep it and realize twenty five to thirty eight percent lower lot in an apples to apples comparison delivering can kill what class power levels from a finger back in the average get getting now that are also independent third party validation confirming the thinking what the he said for example or ethan technical people at the pithy i am europe trade show and conference where superiority of to get or silicon carbide in you know what applications was published
spk_12: but the market elected our high powered gun product across the spectrum and so far have been but all bent on the foundation of efficiency performance ease of use and eleven
spk_2: at our customers as when it thawed buddy bought have also ship recently mythic yoder feel of over five hundred thousand units for high powered and and my new be that seven eight ten times bigger tips then use the lord fowler doctor guy publications validating our leadership in high power again lots in computing is the power hungry application that our again for the enabled of one percent efficiency and to put that in perspective one system can save a few hundred kilowatt hour spurrier and well aware hundred pounds of carbon footprint depending on what your source of energy is but more than fifty thousand metric tons of reduction possible just from our own twenty twenty two outlook in boxing computing and getting along shown on the right here in the settler our segment the with our customers have the nipple taking a making now for more than four years that against the players are trying to follow suit which the all the good for the market and starting to talk about taking them efficiency yet again our existing customers having read that following orders and we anticipate for the that initial initiative and regulations like that equal design from twenty twenty three weeks you will include for the the need for i wish him the high powered again like that from transform we aim to know the hype overstatement continuously and making a leadership position here while is a very significant growth for up in the league segments we outline from low power to high powered that he the applications and lead to present a matter of long term opportunity as the performance of gun enables continued performance of the elected of the drifted addressing and improving on fundamentally shoes of power loss degeneration and range anxiety but high powered into the annabelle fast charging criticise a lot of that ultimately with as in hiring transform is accelerating that an opportunity for electric vehicles for again if elixir it in the next few years back to be found it addressing that he the markets but typically opportunity markets are in that area the one will charge of defeated and voters and awfully easy to repeat voters with the name dragged her driving much opportunity after twenty twenty five twenty six that could triple decks that simple game content from about seventy dollars to well over two hundred dollars and they also the the to be announced our preliminary twelve hundred watched gallium nitride attorney results are in fact this week at a plane your i tripoli conference the it's the it's the including eight hundred one of operation from over gallium nitride for me to trial hundred will give a necessitated and with high efficiency old competing one hundred would for them average products that have caught that well established in the market today but it's a clip of to fight the gun is not sitting still we're not that instant we're moving forward the five transform as easy automotive can qualify products today the college and for power solutions that are already wrapped in the market for various commercial and an industrial power sickness now i'm going to turn our attention to other other execution and the last quarter and and up how we expect going forward in the december quarter lead and and several vectors dragging our growth the a relic live in the much water with is the what fiscal quarter of on twenty twenty two to achieve our nine success in quarter or productivity growth the key highlight of fun from dominating in game high power segments a leader to the point of all the leadership is the largest single origin convict or high power again of over half a million units that he recently secure he also continue the game other ship in the low ballot box charger segment and have your multiple only good at mighty got lucky customers that i'll outline of in the next next flight our management focus and it's squarely on product revenue growth of like and manage them and the expansion overall nixing have a strong demand for rest of the and beyond as well as we have didn't shed in every segment including continue leadership in high power we do in the autumn had been due to the wonder like supply chain issues facing the industry today if they learned our fiscal que tu with is a july to september quarter more in line with fiscal que one with able to drink water resulting in approximately a one quarter shift lean dissipate that continued strong growth financial from darryl geiger the a robust fifty percent growth in the second half was this was toppled the you the victim scenario for calendar twenty twenty three the men's very strong as have a capacity initiatives our current the back of the initiatives are expected to be online does supply chain management and village get back the expansion out of a cop for was they get over the next several quarters
spk_1: he expect that because strong balance you then she'd a leadership in high our products and getting shit in lord fowler will allow us to continue this moment important
spk_2: what was shown here now with the key metrics and growth factors that be cute during the john too much quarter and get previously targeted and when of how are shipping other future growth first product seven and a quarter was four billion dollars a night of that you've got quarter in this department and already representing eighty percent of the it's total revenue the haven't played a strong and reckon backlog vidic given by continued and robust demand for our products we continue to live and grow our share in the doctor than five judges yeah good at least five design and in the last quarter the january to much one or the also secured important design been including the laptop adapter been with a kill on fortune one hundred company with the first fifty k unit feel secure and pilot production with additional by find a production with at a leading a chevy smartphone manufacturer for sixty five i what and a pilot order for a while like eating dinner for one hundred and forty one adopters we look a lot especially in the hundred what got segment for example the new us bpd three point one standard that enabling one forty what then we will have could he had solutions like on fong and other when your partners who like that the them solution or competing against he more or other products because of his of interface and north external drive or needed we're pleased to eat and gun for hire pollard broadly speaking plea hundred watt before to the what that is already in production at our customers to the very continued web designing now at thirty five plus that was a few production it is notable that one of fifty percent of our revenues now are already in the higher power segment that includes must be kilowatt game solution the into for the girl and get into a get like energy to power immobility they get opening up new to nineteenth yes seventeen i would it's can qualify did release products in other comprehensive portfolio today again low power to high powered sick fifty was the only nine hundred what part of the market and many of these products are either in effect surface mount packages or time illegal robust your packages our products to not have the limitations of pack instead three of these products are already heath the automotive qualified bucks today including other and for the jan five easy to follow on future as i mentioned a significant emphasis and positive challenge though if on the capacity to affected expansion and managing front of revenue for rapid growth in what is to a very challenging wonder like supply chain and run it for the next couple of quarters like we have achieved sufficient pick you up and package adopt for product codes and capacity as we previously had also mention now we have expansion efforts and under the for high power back as far as and both internal and external the for capacity in the videos of at the live abroad and before production
spk_13: so please take with with alaric up for it
spk_2: for seventy blocks with leadership in high power again getting all round and focus on supplies in execution and multiple that's the initiative on going strategic partners have always been important for our business first and foremost top of the list know that includes manufacturing and capacity increases and partners will we're working with the global they force bunch of an expansion is on track with completion scheduled for mid calendar twenty twenty three the i'm managing on track with our if that blue that joint venture with our financial strategic partner and planning for that includes a than capacity be perfected by to be and second half of the calendar candidates twenty twenty two and and twenty twenty three to keep up with the rising demand that the se in the in the field and automotive segment of packers who also happen to be valued shareholders and began working closely to touch the expect to complete the get covered development program a payment or in the eating and and future and have updated to develop and time with color for cost effective innovative solutions for of what big applications
spk_12: expedia was also an automotive factor and like and see
spk_2: customer partner for a tv for in fact for supply has recently demonstrated independently a pretty fake you know again and wonderful ease at the a picture children use the next my throne for us in this area is the easy qualification of knowledge and five products which you had already commission qualified an already them in the market but commercial production i don't eat a b b c b c and will be see opportunities currently japan on best huge with your once and morally for charger and converter i in progress with make concession particular these the government gomez revenue business theme him and steady the targeted zero point nine million in the john too much water gun on track ruined by old navy program of a be the for manufacturing and like the for excellent results on the trial hundred wolfgang with our our party program additional artifact the especially government a be customers are ongoing but the primary focus now he wants satisfying our internal power products for the rapid the band and rapid growth that we're thing all in all we're very excited to be the midst of an organ gun and option brought with the transom an hour good fellow gang companies in the market he can focus remains in freaky a yes it funding a leadership in hype other gun getting shed in the doctor than fast charges and capacity expansion first keeping up again
spk_1: next year staying ahead of the vary from the month that our products such anarchy the that our to come and to present the bigger picture of our financial
spk_14: i can most antelopes everyone joining us today
spk_1: let me start with a brief recap of our unaudited results for a more most countries recently the completely quarter please note that these results are subject to the completion of a lot of procedures we anticipate filing i thank you for our fiscal year ended march that first in mid june former remarks i will to both the gap and non get results which i reconcile to got an oppressor
spk_14: on the table
spk_1: don't get results exclude stock based compensation depreciation and amortization and adjustments to share value of our previously held convertible notes
spk_2: i think that income statement to the gop a non gaap revenue complaining product and government was four point nine million dollars in the quarter this represents a seven percent guacamole growth with compared to four point six million dollars part of and government revenue for the crowd quarter total revenue for a flight twenty two was twenty four point one million dollars an entry east of eighty nine percent in the prior fiscal year it's quarterly you know what you're increase was driven by read a record product sales from romping shipments product raven you know forms the majority of us total revenue numbers over eighty percent in the quarter just completed and over fifty percent for the you
spk_14: continue to focus the product sales a law school of so unlike success got a product revenue growth and record product revenue over four million dollars this represents a ten percent increase new track water for sales for a fight twenty two clue one hundred ninety percent and have like twenty one
spk_1: the schools has been driven across a broad range of power conversion applications including fast chargers and adapters gaining be the center crypto
spk_2: the little blended gross margin for the ups forty percent gross margin and quarter was twenty three percent the company is progressing nicely towards his long ten model of gross margins in excess of forty percent a number of actions including new product introductions street ongoing cost efficiency activities and benefits that we will receive a sticky ten you to grow and skill will contribute to this operating expenses on a non gaap basis or four point seven million dollars in the cotton quarter to get to point five in the prior quarter is modest growth been primarily driven by an expansion and are sealed in applications pin to support an increase revenue together with one of compliance costs tied to uplifting denies that like competing non gap or cakes and the same quarter the prior year we saw sticky percent increase due primarily to personalities across the company ongoing compliance costs and storm on be spent johnny keep yes i will focus my remarks you could non gaap results
spk_14: the revenue growth i like continued or management resulted in a non gaap e d s loss of a change in the quarter a ones and in prison qc or non gaap dps for the fiscal year it was twenty cents to non got dps he lost twenty two cents for begin from an operational prospectus we continue to see strong traction cannot targeted markets she fought so record for the king's contributing to strong backlog position this record is excluding the over five hundred thousand unit production onto the company that for kill a class power supplies which was received and become quarter
spk_1: companies philly the telecom quarter or shot and focus being a product execution and enabling capacity expansion sport medium to long term growth coming out of balance sheet
spk_14: if i twenty two so a great deal of progress
spk_2: the cash position improved by twenty five million dollars judge are strongly the activity in the year we exited the year with thirty four million dollars in cash debating a stable runway for the company to cool
spk_1: we also significantly reduced a liability india firstly in the far south of a for twenty two the execution on the kid million dollar development alone and an october a long term partner your scala converted to fifteen million dollar loan and equity combination of these activities has improved the shareholders' equity position by over fifty five million dollars and the fiscal year
spk_2: he looked at it is probably the company a strong platform to enter this fiscal year looking ahead we will remain open to opportunities to further strengthen our balance sheet to ensure that we are able to continue to invest in a booth we also successfully completed have targeted up listening to nasdaq in a quarter and i've seen a strong and three increase in trading volume and defeated since this was completed transitioning from a financial performance i wanted to touch a position
spk_1: the company's well positioned to go across multiple segments including consumer data centers that the mining industrial and in the longer pm movie
spk_2: we are now at a stage where we have seen and continue to see some adoption and as illustrated a presentation revenue growth
spk_14: revenue trying traction exist today in several segments couldn't customer data centers trip to an industrial applications looking ahead a strong balance sheet will allow us to continue to invest in a group ancient was all aspects of the company both i'm a starting and a capacity perspectives
spk_1: with this confrontation and place a focused on execution a shooting that we can support the growing demand and what we will believe will be a broad market inflection point in the medium town in addition to existing revenue streams we expect to see initial wins in the automotive segment in this country
spk_2: can the other company will drive towards a long term target model evil they continued momentum across multiple signals concluding know with a few key highlights
spk_1: transform publicly listed on the nasdaq exchange it a pioneer and leading provider of gun park and gushing devices we have disruptive technology that provide solutions to the across a number of significant growing markets we have established a strong network blue chip farmers it to the kicky are morelli as yes yes scout and others
spk_0: we are financially ramping with strong production revenue to know doing or nine success of quarters we have a comprehensive product offering today that needs of customers' needs across a wide range upper levels and segments all of which is underpinned by strong balance sheet the industry strongest ip position and a deep and targeting
spk_15: that's complete some forget materials and remarks with know like to open a call to any questions operate of please proceed to cuny portion of the call and i know that a star one if you're like that the question or first arsenal come from david blaine that the start pumping on
spk_16: think i had
spk_15: a good afternoon my combat regret them a program very impressive when resulting in order to their
spk_2: and kid it up yeah you know if if we have to back and look at the strength of on when the things like there that could be more opportunities here than than any resources were adamant capacity but against the good kind of look out the next six to twelve months feel that you have enough internal back to fulfill these orders it leads to some degree or an outing about i get that the backlog and filling up and
spk_15: thank you for that so yeah we're seeing a very strong demand and a leg with head and eloquent bachelor in place the oddly fulfill it's tried to fulfill this opportunity across the range but like girls has said we have the have a capacity to fulfill today and her any more capacity and legal and online the next two to three quarters is really aware that supply chain or impact limited by the went away like supply chain and what we need incoming coming to increase capacity
spk_2: will be something will be watching a very closely and out a little the picture doesn't change we have several about it the effort so i was going on the job and come on line all towards the end of this year and and in twenty twenty three like a you to in the call to the next few quarters like i alluded to we how to capitalise that that back if he balancing that
spk_15: the which is looking very strong great for the color of a and then you're making the film in the script at a pack but there with attraction burger design that we saw that that appeared to be again base that traction burger never hurts when we had seen just curious if you to give a color and and i'm not mistaken i think experience
spk_2: had the like as agreement with your products that you might think about that right and and how do you think about that track and earth and like maybe that pulling forward the a little action or with but we we had anticipated then i could lead to improve point in a cave you they can handle your statements and correct inexpedient did it with their products to have a license agreement would transform for again on man and it had fantastic to find for gallon i think that for the demonstration but it's a fantastic book minded a pretty thinking what in water less than a demonstrate
spk_15: did
spk_0: okay and then leave you get the flatly for me it it how you're thinking about the business and got were end up bit of a deep fellow rating macro here but but i think a leak from from your perspective it's it more of a demand is driven by the the transition and technology and live from the man from from and consumption so that have a think about that i get your perform
spk_17: that the cycle or maybe through a downturn house we think about your business
spk_1: most eligible think so our our divine gallium nitride in jungle are transforming i'm gallium nitride a journalist he the technology transition to new products rachel he didn't help the demand has been strong our supply side as the blighting gloat or capacity gloat or either important things have even been focused on but like it's that's another he just recently landed a half a million other in high pollard if we mentioned are not just order to date was a recent down the that secured and on the hope to be a candidate those kind of thing has the as we go forward good thanks again project time and up excellent
spk_2: thank you i question i compare my now another local park at all he go ahead
spk_1: hey i did after you die when and he grasp on the progressives wow i guess you could from i am for and prepare it viable and the pro just here here are you're much of the omega about about macro have had you sound like you got your not yet again we can get the with the for medical impact ah on on from maquiladora years of slowing economic growth that wanna make sure that that is he thought are accurate he doesn't not yet seen that it's bicycle bell he died on food for making me and his comments after that ah yes so we're not to a first order to the we're not seen that yet though sometimes to a second order we feed for example some of our customers are designing complex system read that as many other boxing it and or even though the customer ready to go without or solution they could be short of and i see some other silicon part by few or some other power component in their bomb of their system of each could delay other designing so don't think of thing so you're saying but overrode macro the have not yet athena director for air impact yet of which i get in a good thing and and we are striving to and visa over capacity to keep up the demand
spk_17: at a girl on your own think about it they're going to be having to work that the ban is very strong and new checking out there on the next couple of quarters
spk_2: now we're nearing to make a month or so didn't move move will be slow but we haven't seen any any evidence love the moment the predicts but there's a slowdown meyer that that keep out and and then shoots privilege or like i did you are the clarification question guys it made a remark about two and then please just sort of sort of that
spk_1: a correctness for it made a remark that i heard something on the line love that begin to that supply kinda you're willing really fairly in issue right now but navy cheeky quality got it could be admired jumping into that atlanta where you're saying is well could you clarify that for me as long as you barely stand at it accurately nice to the supply chain he so be in the how to focus are definitely on manage the supply chain and focus on the supply chain don't seem of an only for production and and on feel so they back consumable dictator that we needed for the will be how to manage with obliging our demand is going fast right the or on
spk_17: the ever record back on in place to the for the next couple of quarters of of life in another own capacity is an important out for us to to watch out beyond that other capacity the should do that we have already put in place will bear fruit and to increase our capacity feet at with end of the theater and and going into twenty twenty three so the next a cop
spk_14: look wonders about by the demanded very strong no no changing and including the man
spk_2: our supply chain and capacity something to the watching a very carefully
spk_17: i see thing early should clarify your macbook was not want the dog no birds with the last couple of quarter you be you been working very hard to monitor very tight luxury though that continues school board are truthful directed him here as far as we continue
spk_0: so that's why but when we to recruiting and say we could have had wings because there's like heard good things to be very tight hopefully will be successful
spk_1: that's really helpful clarification allah and lifeless for me right now is i guess i'm on the out on the new when the five hundred thirty thousand new that read how are a pilot for delivery on what are you guys taking a lot at the outlaw
spk_18: the returning is over the next the next few quarters
spk_1: the chaotic in yeah thanks they expanded it yet they get i get back in the gear bag my next question will come from bahamas on federal capital
spk_2: if i hope ah thank you are you my question about mario on on the five hundred thousand you bomb are you the oregon getting we we tell a little bit more about this that what application this is causing lucky if that you can't yeah
spk_1: i'm going to show that of us the older and
spk_2: well i know you're rich people go because the murdered pharmacy a bit moment i work
spk_1: military it's a few one
spk_18: what you put the one hundred was
spk_2: one guy you know i just clarify that it's it's it's a higher power it's a higher power designing from another dublin few to four seven product that councilman at through leader in it fits into like to be said it's in the three kilowatt plus and last segment on so that is not that is what are the need that to kill what flush that the key point that councilman dominating industry leading leadership position in the in the kilowatt last segment where other gun and knife and has not yet when you take to tell a beautiful
spk_1: haven't really looked like generally they applied to vegas segments like own get the mining get a server energy towards those kind of up on got it and walk out the of the the go with the said that to joys of one of the time the this segment
spk_17: generally speaking beloved be if you're not and you can imagine scale with the power level in ireland i'm in a venezuelan the mighty dollar range
spk_2: got it all and then on be out of the supply side are you guys able to get our a few your our technology like of your supplies like accept fog a good show above on on your apply to constraints our i think i'll get or a good on that path obliging yeah we work closely with our partners her like are exon that you mention the there should be collaborated are looking for transform the also have and you can imagine the that many don't female it mentions of like a including from are like larger companies like exxon be smaller companies for spare parts and consumable so all of that and guy valued ecosystem has to be managed so it's not just one are kind of how to ride the key key partner saw liked example you gave he was extended family together
spk_1: okay and i want love was your phobia
spk_0: maybe i misheard you but if if i recall the path you had targeted agree with you the market by eight point one five but i giggled a call for their you he said coin conflict
spk_2: i did i hear that correctly are educating the irish or the by us when the expect the had a vehicle publication that you be a market
spk_1: the in in fact in fact the correct to what in what he said in in kind of that twenty twenty four timeframe are getting down
spk_14: on board charger and beefy be can bugger opportunities that we are in the designing today what i said it's from twenty twenty six it opens up the camp for the inverter that even policy which significantly included the gang or content possible in the in the automotive by three times because you have much higher a power levels
spk_1: the large amounts of total semiconductor yeah and total semiconductor phonics you still have the today designing into the on what charge a decent if he can letter that the earlier about my that much done but to know you timeframe that in water to drive painting what or deciliter tightly got plenty about it much which is what the set of before them
spk_19: gotta take your picture about because
spk_2: not
spk_1: and i'm like as a reminder that a thorough half the question and our next i shall come from let had shania i think how impact on the forehead
spk_18: while i you see the i guess it should kick my question
spk_1: some without get a financial one here and spot on i just want to make sure i'm kind of putting teams together to right so i'm talking about pretty strong demand by perhaps some some supply chain streets year so i guess just thinking about job in a ravenous going forward years questions such as we look at work on the product
spk_14: outside point of view are we looking for flattening as the curve here for a quarter to was a still going to girls at a slower pace or sauna make sure and get if you enjoyed on this of any help us understand it better fits
spk_1: should not as he can i'm young and rich and we would now seen as gonna need to do we are see some some headlines be on dan you are a kidney the that is authentic a quarter lines book deal more the name of the june quarters of those are flaunting their but he was from there we do see a resumption of stronger doors and the you know those at this at fifty for
spk_2: sent target the second half dozen the for saturday of so really just not a one quarter of a shift and as much as anything else is certainly not i'm a demand issue an assembly know i growth as shit
spk_1: okay so just to make him understand this game as you said september kind of thing in line with june but how do we think about you the students villa girl quarter here comes from a product on view your or not so she can get you know the you can expect to see a continuation of of the orphanage in clot or not ugly you know you don't gain specifically that the demanded the air and i will continue to execute want that the nation that we were mostly dogs as well as richardson that are constraints not regard but i think can that the flanagan is more inaccurate june to september quarter on a napkin a resumption of the growth trajectory from there
spk_2: that look at who that is helpful libya camera another one few or no armed gross margins scan the products i'd rather obviously yet i don't enjoy the at specifically but i'm trying to learn me the number sure writer seems like a product gross margin of grown you're a bit quarters course even give us the center of the degree to which that is an exorcist yield and and the highlight ah that's tracking and i think about when i kind of the path getting to that forty percent plus those muslim sure sure if think can be all over the course the year and a product and government as he was twenty three percent and for the quarter twenty two percent for the year and adding as relatively stable over the course and he's got a sh from the hickey gentle black you get which is gonna typically mixture of and i mean for as i mean you know where we're pleased their we are i think what we have to do now over the course of of the next year and beyond his a look at at an opportunities to prove the mounted you know that cost efficiency that you've got an introduction june
spk_1: that's the opportunities you get from doing that as the smell richer than i think that each one of those fighters will will help and the to the margin be think it was a long term and target forty percent
spk_0: for the for that the cameron a permit my last question for you as me as we think about the you can a high power segment of the market here
spk_1: i think you're suggesting reinstating directly that you don't believe any other game companies are are supplying now a kilowatt class opportunities here are some maybe chicken the discuss what you know what are you saying that imminent a flashing by other again guys and then also again on the other side again silicon that thing when the orderly obstacles and accelerators for you getting more share of that market short so to the first find a the add to the best league in and say know know that again completed the keys ran to the extent that we have good may have been an isolated of the uncle and years old but not haven't been a volume sent me an ad in the diversity of customers and products in my market that we have had not not out the company
spk_2: don't a customer system in the market that is what of the have achieved in high bolo a second actually good to have more gang compete in the i bother segment right multiple companies with this is mike and is tremendous they're looking at a very strong a year over year growth come a multiyear got here in all obama high followed a high powered in specific and down multiple can compete and by of what that and that is what it takes to make a strong like it that because that each to the second part of your question is clearly days in efficiency and i'm and north advantage over silicon are picking at high speed high frequency smaller systems and as you go to high powered that
spk_20: impact of energy savings is also very important right a hundred what a doctor with that one percent improvement
spk_2: is one what if you're looking at fighting or sector fifty watts and that much amount of electricity so
spk_17: the shift from silicon out at two gallon like i did a high powered he believed would be a strong one or the next few years
spk_1: that's awful place from at that allotment
spk_2: and you
spk_21: our next question will conquer like on the any would be rainy for charity if i had
spk_0: it often and guys out there so i'm not a couple questions is michael on for a crack alice arm and congratulations on the o'clock us while on lady to start with thought the passion about in adopters i believe and i recall correctly on the last on our quarters passing
spk_22: asian arm fell in low point that are you expected to get to apply to ten million monthly units maybe i've of the twenty twenty two and or next year and twenty twenty three as wonder if that our target still held without having both on and on how you but were talking about and then if you could just walk us through the
spk_14: mouse don't forget fair in terms of investments quarter over quarter and getting the equipment just how do we get knuckle thank you
spk_23: yet still over a little it and didn't mention the total total revert to the and that obviously the mix of a high power low power and now the desert will never to thing that so that depends on alert mix of the product how much gets out and look at it were for that after specifically what the had shown
spk_1: and we reported we had that of a pecking at or said capacity the wanted to demonstrate well over one million a month with the to to or that as of contractors partners in place for packaging and that that he had achieved we showed up to funded with was shipped over one million a month and including the of no to qualified up with that
spk_14: a players
spk_2: the expansion that second part of your questions expansion that have enough a two and a night of the glee the call today i i for at continued expansion into higher power of back again as well as expansion old father own of the full capacity expansion both on the have been if our side and end of the perfect think got it thank you and then maybe just a couple of on the on our on the holocaust when i was just wondering if you could talk about the potential for further orders from the same customer or whether you're backlog or engaging the other customers on are you from like you can for you're summer design when that other customers are published and five and i are parts of them yet and the believe so bought the unthinkable both questions as yet the same customers or and the same type of customer in the in the application in yet at and similar bothering me expect that will continue to be a good segment of for us
spk_14: great thank you
spk_2: on our final question will come out or and first like like large most hi and thank you good sticking in the question que
spk_22: and congratulations on the progress of to follow up on the last question could he do for the for the exact same application for another customer he knew that if he if it a standard type of application where for a treatise the poor and other customers well for the same exact thing
spk_2: yeah that is that yeah rick hey could you just go through again quickly some of the higher power
spk_22: them design in vertical meeting be and products right now now we've gotta your shipping today that we're actually have designed and you know besides besides the emergence of a crypto but the me to forget into have get a rattled them off again
spk_2: yet so it is your fight and but not what some people have are dead been like that again but a that again
spk_22: i'm i'm here for make only right i gotta give a that not
spk_2: it is it's a blockade good not can completely gaming gain an internal doesn't hurt or worse
spk_22: u p s and annual energy
spk_1: but they lead hold true that you could be in a the graphics card or something that nature
spk_2: yeah it is possible but i believe other words i also having i do with servers will have a multi colored glasses the not so much you know graphics chip card or in but at for example of graphics chip cards that necessitates said you to the high performance graphic fear a tricolor watch seller for them
spk_14: tubular watch watch where i don't want a matter of and an outlook same of those types of i the have not talked with fifty about that but both type of applications were very high followed in a compact footprint isn't visited there again and transformed can definitely should have a value play all existing silicon products
spk_22: do you have any design and that very high performance type of product for the data center
spk_2: given the data centers me how are we have is in the data centers and but we'll talk about publicly about some customers that have done a public announcement with us for example bell power as a whole slew of fire power supplies from starting from to kill kilowatts to keep on six gonna watch certain number of power supply designs with other again targeted to the do to get third one
spk_24: and the high performance card
spk_22: like a lego describing
spk_17: the high performance guy you're not have publicly talked about that yet
spk_2: okay to think it's something you could address the more are addressing the haven't announced an infinitive with
spk_25: potentially that level of lot when he can have the gang to kill a what they gonna walk level of follow the and end of the day to be get sober right or that enemy addressed
spk_22: of on a laugh cause and with clarification on the auto opportunity
spk_2: the for back home funny for with actually for revenue from the missile auto product and if it with that correct that little nicer i caught that yeah that is what we're targeting that is great a booth of the announcement from for lying when
spk_26: leo cullen lights are funny and path thing that you had indicated that help there are some early car design when they want like so i got that right
spk_0: no not design thing that is designed in which the as you can appreciate the auto designing is a long process with the to a two tier ones and then ultimately game design and with the oh yeah and carbon fetch or so
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