Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
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| Statement |
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| And historically, on the high-power side, our conversion rate has been very strong around more than 75% conversion rate |
| Our disruptive, best-in-class technology is addressing a large growing market opportunity |
| We also delivered higher gross margin and reduced cash burn, each exceeding our expectations |
| The design in momentum continues to be very strong, having grown our pipeline further by over 5% since our last Investor Call |
| Our product pipeline today is over $475 million dominated by high-powered products where Transphorm has a clear advantage in quality and reliability, performance and IP differentiation |
| Overall, more than 70% of the product revenue mix came from high-power areas, where Transphorm continues to be the world's number GaN company with superior high performance and reliability over every other GaN competitor, most notably e-mode GaN |
| We definitely strongly believe in that, right |
| We continue to make new advances, unlocking more capability of the GaN to address larger market segments as evidenced by strong product offerings that now include high-power surface mount packages like the TOLL and the TOLT, the topside cooled package, another first by Transphorm in gallium nitride |
| Of course, silicon carbide has done very well on the automotive side, right, with many strong companies in the freight |
| Our leadership in high-power GaN remains strong as we grew our pipeline to over $475 million and our products surpassed more than 200 billion hours in the field, further demonstrating our superior reliability |
| From an operational perspective, we continue to see solid traction in our targeted markets as evidenced by our improvement in both customers and production, and design and activity |
| We continue to increase our penetration in the low-power side as well with a system in package partnership as well as growth in notebook chargers that benefit from the superior reliability delivered by the physics-based benefits of our GaN versus e-mode GaN |
| Having delivered strong product revenue growth over the previous quarter, coupled with our robust pipeline, we expect to see continued sequential product revenue growth in the current third quarter |
| Across the full spectrum, Transphorm's gallium nitride is fundamentally superior to other GaN like e-mode GaN and typical foundry offerings, the impact of high reliability and robustness getting even more evident in the higher public areas |
| That said, we do like the low-power segment, of course, because we offer better performance with reliability and it's a good ramping area for us, especially with the system in package, SiP partnerships that we talked about with multiple very strong IC partners enabled again by the so-called open architecture or easy, easy drivable architecture of Transphorm scan |
| Notable is our multiple wins at two of the top three worldwide lap of OEMs due to the performance and reliability of d-mode normally off that delivers higher efficiency from an effectively smaller die due to its superior dynamic characteristics |
| We are gaining rapid traction with our SiP, our system in package strategy with more and more integrated controller and driver companies and the strong ecosystem partners now who are increasingly preferring to design-in Transphorm's pure-play GaN chips with more than five products now in design-in and two SiP products released |
| Since our last update, we've had a record of 33% sequential increase in design-ins for high-power that stand today at over 100 of which over 35 are in production |
| We will continue to see solid revenue from this program over the year, with flattish revenue anticipated in the coming quarter |
| This year-on year-increase has been driven by the successful award and execution of our new $50 million government program |
| Recent high-temperature full voltage stress testing on the SuperGaN products revealed superior reliability and the dynamic performance over e-mode GaN from the leading foundry that exhibited 400% increase in resistance, i.e., losses for the e-mode GaN case after just 500 hours of reliability testing |
| As noted by Primit, we continue to see positive momentum with our customers and production |
| Overall, as one of the only pure-play GaN power semiconductor companies in the world, with volume production in both the low-power and high-power segments, we are well positioned to progress towards our long-term model in fiscal year 2024 and beyond |
| With automotive qualified products today at 650 volts and then having 1200 volts in the future with the promise of a simpler supply chain and an attractive cost structure with gallium nitride |
| Our efforts to improve operational capacity and costs led to continued higher productivity from our Japan epireactors, while further capacity from qualification at our global wafer reactors is expected by the start of fiscal year 2025 |
| We added high-volume packaging subcontractors for both our high-power and low-power products, a move aimed towards improving margins as well as capacity as we target aggressive growth over the next few quarters |
| It's a very good quarter we had in terms of new design-ins added |
| Third, continue to improve margins through achieving higher volumes, transitioning to lower cost packaging subcontractors, and following our technology road map to improve performance while reducing costs |
| That doesn't mean other 25% it lost is maybe still ongoing, but we have had very good success rate on the high-power |
| We have successful ongoing design-ins at two of the top five India-based OEMs that we expect to ramp next calendar year |
| Statement |
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| The gross margin in the quarter was 23%, down from 35% delivered in the prior quarter |
| Product sales were $3.55 million in the quarter, in excess of our expectations |
| The train driver here from the prior quarter was the reduced overall revenue from our higher margin government business |
| So the one thing I see is we brought our cash burn down significantly from 6.8 to 5.1 in the current quarter, and I think that it will likely hover around that level for the near future |
| It is worth noting that competing e-mode GaN has not realized yet end product customer ramps due to unclear full voltage reliability of e-mode GaN, at least from offerings from the leading e-mode GaN Foundry |
| Operational cash burn excluding capital investment, decreased significantly in the quarter from $6.8 million to $5.1 million |
| The non-GAAP EPS loss in the quarter was 8%, flat when compared to the prior quarter |
| Operating expenses on a non-GAAP basis were $6.4 million in the current quarter, down 6% from the prior quarter |
| Government revenue was $1.45 million in the quarter, a decrease of $1.45 million in the prior quarter and an increase of $1 million from the same quarter of last year |
| This represents a decrease of 15% to the prior quarter and an increase of 36% over the same quarter last year |
| But according to physics, this is just physics that GaN should have 70% lower losses than silicon carbide |
| In light of these risks, uncertainties and assumptions, the forward-looking statements discussed during this call may or may not occur, and actual results could differ materially and adversely from those anticipated or implied |
| The government portion at the lower end of our targeted range due to the timing of our key government contract negotiations |
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