Q3 2021 indie Semiconductor Inc Earnings Call

Speaker 1: to Indy Semekinductor's third quarter, 2021 earnings call. This call is being recorded.

Good afternoon, everyone and welcome to Andy Semiconductor's third quarter, 2021 earnings call.

Speaker 1: At this time, I will turn the call over to Pilar Bariga, head of Global Corporate Communications for Indy. Ms. Bariga, please go ahead.

This call is being recorded.

At this time I will turn the call over to poll Arbor, Regus head of global corporate Communications for Andy Mr. Perez. Please go ahead.

Speaker 2: Thank you, operator. Good afternoon, everyone, and welcome to Indy Semi Conductors Third Quarter 2021 earnings call.

Thank you operator, good afternoon, everyone and welcome to Andy Semiconductor's third quarter, 2021 earnings call.

Speaker 2: Joining me today are Donald McClemmoth, Indies Co-Founder and CEO and Tom Schiller, Indie CFO and EVP of Strategy.

Joining me today are Donald the climb on indeed, co founder and CEO, and Tom Schiller, and CFO and EVP of strategy.

Speaker 2: Donald will provide opening remarks and discuss business highlights from the quarter, followed by Tom's review of Indy's third quarter results and fourth quarter outlook.

Donald will provide opening remarks and discuss business highlights from the quarter, followed by Tom's review of <unk> third quarter results and fourth quarter outlook.

Speaker 2: Please note that we will be making forward-looking statements based on current expectations and assumptions, which are subject to risks and uncertainties. These statements reflect our views as only as of today, and should not be relied upon as representative about views as of any subsequent date.

Please note that we will be making forward looking statements based on current expectations and assumptions, which are subject to risks and uncertainties. These statements reflect our views as only as of today and should not be relied upon as representative about views as of any subsequent date.

Speaker 2: These statements are subject to a variety of risks and uncertainties that could cause actual results to differ materially from expectations. For further discussion of the material risks and other important factors that could affect our financial results, please refer to our risk factors in our Recent Registration Statement on Form S-1 and our other public reports filed with the SEC.

These statements are subject to a variety of risks and uncertainties that could cause actual results to differ materially from expectations for further discussion of the material risks and other important factors that could affect our financial results. Please refer to our risk factors in our recent registration statement on form S. One.

And our other public reports filed with the SEC. Additionally.

Speaker 2: Additionally, the results and guidance discussed today are based on certain non- GAAP financial measures. For a complete reconciliation to Gap, please see our Q3 earnings press release, which was issued in advance of this call and can be found on our website at indicemi.com. With that, I'll turn the call over to Donald.

Additionally, the results and guidance discussed today are based on certain non-GAAP financial measures for a complete reconciliation to GAAP. Please see our Q3 earnings press release, which was issued in advance of this call and can be found on our website at <unk> Dot com.

With that I'll turn the call over to Donald.

Thanks, Peter and welcome everyone.

Speaker 3: I'm pleased to report our strong quarterly results and discuss the strategic initiatives we have completed in the few short months since our debut as a public company in June of this year.

I am pleased to report our strong quarterly results and discuss the strategic initiatives. We have completed in the few short months since our debut as a public company in June of this year.

Speaker 3: For the third quarter of 2021, Indie exceeded both top and bottom line expectations, as well as made significant strides towards realizing our vision of becoming the V, semiconductor, and software solutions provider across AutoTech.

For the third quarter of 2021.

Exceeded both top and bottom line expectations as well as made significant strides towards realizing our vision of becoming the semiconductor and software solutions provider across auto Tech.

Speaker 3: Specifically, during the quarter, we outpaced our addressable markets and grew revenue sequentially and year over year to a record 12 million. We expanded Gross margin in the challenging supply chain environment.

Specifically during the quarter, we outpaced our addressable markets grew revenue sequentially and year over year to a record $12 million.

We expanded gross margins in a challenging supply chain environment.

Double down in key strategic product investment areas.

Speaker 3: Exited the quarter with 324 million in cash and virtually no debt. And updated our strategic backlog to 2.6 billion, up from 2 billion last year.

We ended the quarter with $324 million in cash and virtually no debt.

<unk>, our strategic backlog to $2 6 billion up from $2 billion last year.

Speaker 3: At a higher level, Indy is clearly at the center of several powerful industry megatreets.

At a higher level, India is clearly at the center of several powerful industry Megatrends.

Speaker 3: Automakers are in the early stages of large-scale investments in next-generation vehicles that will usher in increased safety features and enhance the user experience towards widespread electrification and autonomous.

Automakers are in the early stages of large scale investments in next generation vehicles.

Usher and increased safety features and enhance the user experience towards widespread electrification and autonomy.

Speaker 3: As a result, semiconductor content per car is anticipated to reach up to $4,000 per vehicle and 8X increase from the average level today.

As a result semiconductor content per car is anticipated to reach up to $4000 per vehicle and <unk> increase from the average level today.

Speaker 3: According to IHS, the global automotive semiconductor market is on pace to reach 36 billion in 2021 and is expected to exceed 62 billion by 2026, growing at a compound annual growth rate of 12%.

According to IHS, the global automotive semiconductor market is on pace to reach 36 billion in 2021 and is expected to exceed $62 billion by 2026 growing at a compound annual growth rate of 12%.

Speaker 3: Meanwhile, Indy's served addressable market represents 19 billion of this time in 2021 and has expected to grow to 40 billion over the same time frame or about 15% per year.

While in the served addressable market represents $19 billion of this time in 2021 and is expected to grow to $40 billion over the same timeframe or about 15% per year.

Speaker 3: In particular, sales of advanced driver assistance systems are expected to rapidly cascade down from flagship models today to entry-level vehicles as park assist, early warning systems and collision avoidance functions increasingly become standard features as mandated by regulatory agents.

In particular sales of advanced driver assistance systems are expected to rapidly cascading down from flagship models to date to entry level vehicles as park assess early warning systems and collision avoidance functions increasingly become standard features as mandated by regulatory agencies.

Speaker 3: Additionally, wireless charging, ambient lighting, in-cabin connectivity, telematics and data integration products, spaces where Indy is already active, are seeing strengthening demand.

Additionally, wireless charging ambient lighting in cabin connectivity telematics and data integration products spaces, where India is already active are seeing strengthening demand.

Speaker 3: All of these factors will drive dramatic changes to vehicles' electronic architectures going forward.

All of these factors will drive dramatic changes to vehicles electronic architecture going forward.

Speaker 3: The future of electrification and autonomous vehicles are expected to create enormous opportunities for the automotive semiconductor industry and Indian particular. As these applications require the latest in highly integrated mixed signal semiconductors and embedded software.

The future of electrification and autonomous vehicles are expected to create enormous opportunities for the automotive semiconductor industry and India in particular as these applications require the latest and highly integrated mixed signal semiconductors and embedded software.

Speaker 3: Today, in these advanced technologies are directly answering intensifying market needs for a step function increase in electronic performance and integration required by our customers.

Today in these advanced technologies are directly answering intensifying market needs for a step function increase in electronic performance and integration required by our customers.

Speaker 3: Our third quarter out performance demonstrates how we are in the early innings of capitalizing on this opportunity.

Our third quarter outperformance demonstrates how we are in the early innings of capitalizing on this opportunity.

Speaker 3: Further, to that end, during Q3, we ramped production of ultrasound devices for ADAS and paracetosis.

Further to that end during Q3, we ramped production of ultrasound devices for Adas and park assist systems capture.

Speaker 3: Captured next generation sockets with a global automotive connectivity and power delivery leader.

Captured next generation sockets, with a global automotive connectivity and power delivery leader.

Speaker 3: secured advanced lighting designs with a premier provider of electric vehicles and expanded our footprint of the German automotive supplier for user experience applications.

Secured advanced lighting designs with a premier provider of electric vehicles and expanded our footprint in the German automotive supplier for user experience applications.

Speaker 3: At the same time, we are strategically adding innovative design teams and capabilities to augment our technical breadth, accelerate in these product road maps, extend our market reach and substantially bolster our IP portfolio.

At the same time.

We are strategically, adding innovative design teams and capabilities to augment our technical breads accelerated in these product roadmaps extend our market reach and substantially bolster our IP portfolio.

Speaker 3: First, we execute the departure agreement and subsequently closed our acquisition of Teraxion. Adding complimentary LIDAR laser solutions for ADAS, an autonomous vehicle application.

First we executed a purchase agreement and subsequently closed our acquisition of <unk>, adding complementary lidar laser solutions for Adas and autonomous vehicle applications.

Speaker 3: Given the critical role LIDAR plays in achieving maximum levels of safety for assisted and self-driving cars, we are excited to leverage the leadership laser technologies that, when optimized together, with our SOC solutions, will facilitate order of magnitude improvements in both system performance and cost, an in turn position indie to accelerate mass market deployments of LIDAR platform.

Given the critical role Lidar, please and achieving maximum levels of safety for assisted and self driving cars. We are excited to leverage <unk> leadership laser technologies that will optimize together with our Src solutions will facilitate order of magnitude improvements in both system performance on cost and in turn position indeed to accelerate them.

Mass market deployments of Lidar platforms.

Speaker 3: Second, we recently announced our intent to acquire analog devices to Mayo radar division.

Second, we recently announced our intent to acquire analog devices Sameer radar division.

Speaker 3: So Mayo's industry-reading sensor technology underpinned by 120 radar-related global patents and applications.

EMEA was industry, leading sensor technology underpinned by 120 radar related global patents and applications.

Speaker 3: enables real-time position detection and velocity measurement for high precision radar solutions.

<unk> enables real time position detection and velocity measurement for high precision radar solutions.

Speaker 3: upon closing, which we anticipate to be in Q1 2022. This transaction will accelerate our entry into the large and growing automotive radar market, as well as further augment our software and system level expertise in support of ADAS on autonomous vehicle applications.

Upon closing, which we anticipate to be in Q1 2022. This transaction will accelerate our entry into the large and growing automotive radar market as well as further augment our software and system level expertise and support of Adas and autonomous vehicle applications.

Speaker 3: And third, we have AkuiHard, a radar design team of highly skilled engineers in Haifa, Israel, and Phoenix, Arizona, who brings strong domain and millimeter wave technology, along with 65 radar patents and applications.

And third we have actually hired a radar design team of highly skilled engineers in Haifa, Israel, and Phoenix, Arizona, who brings strong domain and millimeter wave technology, along with 65 radar patents and applications.

Speaker 3: Bringing together the latter two teams with incredibly strong and complementary expertise, significantly expands our sensor modality capability and confirms our commitment to this market.

Bringing together the latter two teams with incredibly strong and complementary expertise significantly expands our sensor modality capability and confirms our commitment to this market.

Speaker 3: with the global automotive radar time expected to reach 7.6 billion by 2026, we are thrilled to welcome both design.

With the global automotive radar time expected to reach seven 6 billion by 2026, we are thrilled to welcome both design teams.

Speaker 3: Finally, we announced the formation of the dedicated VisionQ business unit led by proven industry veterans to expand our edge compute and perception enabled vision processing capabilities.

Finally, we announced the formation of the dedicated vision two business unit led by proven industry veterans to expand our edge compute and perception enabled vision processing capabilities.

Speaker 3: This team has already demonstrated extraordinary success in bringing millions of silicon, software and system solutions to the vision processing market over the last two decades.

This team has already demonstrated extraordinary success in bringing millions of silicon software and system solutions to the vision processing market over the last two decades.

Speaker 3: We plan to leverage their experience to create high quality, differentiated devices with the best performance at the lowest cost, power and footprint, redefining perception-based vision process.

We plan to leverage their experience to create high quality differentiated devices with the best performance at the lowest cost power and footprint redefining perception based vision processing.

Speaker 3: As a result, Indy is now even better equipped to capitalize on the Autotech opportunity as we create a one-stop shop for all sensor modalities including LIDAR, radar, ultrasound and vision while continuing to drive advanced roadmaps of our existing product line.

As a result, India is now even better equipped to capitalize on the auto tech opportunity as we create a one stop shop for all sensor modalities, including Lidar radar ultrasound envision while continuing to drive advanced roadmaps over existing product lines and.

Speaker 3: and expanding our geographic design and development footprint to uniquely serve our customers' needs.

And expanding our geographic design and development footprint to uniquely serve our customers' needs.

Speaker 3: I'll now turn the call over to Tom for discussion of our Q3 results and Q4 outlook.

Now I'll turn the call over to Tom for a discussion of our Q3 results and Q4 outlook.

Speaker 4: Thanks, Donald. Indy delivered strong top and bottom line performance in the third quarter. Once again, posting results ahead of analyst expectations. Revenue was up 60%, you over year, and 32% sequentially to a record $12.2 million. During my ramps of our innovative AdOS, user experience and connectivity solution.

Thanks, Donald Indeed delivered strong top and bottom line performance in the third quarter. Once again posting results ahead of analysts' expectations revenue was up 60% year over year, and 32% sequentially to a record $12 $2 million driven by ramps of our innovative <unk> user experience and.

Connectivity solutions.

Speaker 4: Gross profit was 5.2 million translating into a 43% gross margin of 90 basis points from the June quarter.

Gross profit was $5 2 million translating into a 43% gross margin up 90 basis points from the June quarter.

Speaker 4: Operating expenses were 16.8 versus 13.4 million in the prior quarter as we increased our R&D investments to 12.3 million to accelerate product development.

Operating expenses were $16 eight versus $13 4 million in the prior quarter as we increased our R&D investments to $12 3 million to accelerate product development.

Speaker 4: Likewise, we increased our S-GNA spending to 4.5 million to expand our marketing capabilities and implement public company infrastructure.

Likewise, we increased our SG&A spending to $4 5 million to expand our marketing capabilities and implement public company infrastructure.

Speaker 4: Operating loss was 11.5 million versus the analyst's consensus estimate for a 14.9 million dollar loss.

Operating loss was $11 5 million versus the analyst consensus estimate for $2014 $9 million loss.

Speaker 4: Interest other expenses in taxes were near zero yielding a net loss of 11.6 million and loss per share of nine

Interest other expenses and taxes were near zero, yielding a net loss of $11 6 million and loss per share of <unk>.

Speaker 4: Turning to the balance sheet, during the quarter we settled our remaining merger related accrued liabilities and exited Q3 with 324 million in cash and virtually no debt. Now to our Q4-

Turning to the balance sheet during the quarter, we settled our remaining merger related accrued liabilities and exited Q3 with $324 million in cash and virtually no debt.

Now to our Q4 2021 outlook.

Speaker 4: Given the dynamics Donald outlined, Indy is capitalizing on strong global demand for our auto tech solutions and set to deliver record fourth quarter revenue.

Given the dynamics Donald outlined Indias capitalizing on strong global demand for our auto Tech solutions and set to deliver record fourth quarter revenue.

Speaker 4: We anticipate sustained top-line outperformance with revenue up 50% sequentially and up more than 170% year-over-year.

We anticipate sustained top line outperformance with revenue up 50% sequentially and up more than 170% year over year.

Speaker 4: With this guidance, which includes a partial quarter of our recently closed taxi in acquisition, India is now approaching a $75 million annualized revenue run rate and is on pace to more than double total revenue in 2021.

With this guidance, which includes a partial quarter of our recently closed <unk> acquisition, India is now approaching a $75 million annualized revenue run rate and is on pace to more than doubled total revenue in 2021.

Speaker 4: We further anticipated 200 basis point gross margin expansion to 45% with approximately 21.5 million in operating expenses for the fourth quarter, comprised of 16 million and R&D and 5.5 million of SGNA. As we increase our product development investment in response to pent up customer demand and extend our sales and marketing.

We further anticipated 200 basis point gross margin expansion to 45% with approximately $21 5 million in operating expenses for the fourth quarter comprised of $16 million in R&D and $5 $5 million of SG&A as we increase our product development investment in response to pent up customer.

<unk> demand and extend our sales and marketing reach.

Speaker 4: Accordingly, assuming no other net expense or taxes below the line, and approximately 147 million shares outstanding, which includes 7.3 million shares from the Traxine acquisition, plus 5 million earnout shares given our stock price performance, we expect a net loss for approximately 9 cents per share.

Accordingly, assuming no other net expense or taxes below the line and approximately 147 million shares outstanding which includes $7 3 million shares from the track seen acquisition plus $5 million earn out shares given our stock price performance, we expect a net loss.

Approximately <unk> <unk> per share.

Speaker 4: Finally, and perhaps most importantly, based on our business momentum and strategic backlog, India is well positioned to maintain this steep growth trajectory over the coming years.

Finally, and perhaps most importantly, based on our business momentum and strategic backlog, India is well positioned to maintain this steep growth trajectory over the coming years expand gross margin to our 60% target model demonstrate operating leverage and in turn create long term shareholder value.

Speaker 4: To ban gross margin to our 60% target model, demonstrate operating leverage, and in turn create long-term shareholder value.

Speaker 4: On that note, I'll turn it back to Donald first, closing comments.

On that note I'll turn it back to Donald for his closing comments.

Speaker 3: Thanks Tom, to summarize, India is at the forefront of disruptive changes taking place across the auto-tax tech.

Thanks, Tom to summarize India is at the forefront of disruptive changes taking place across the auto tech sector.

Speaker 3: We are taking major steps to our realising our vision of becoming the leading semiconductor and software-level solutions provider for multiple sensor modalities and will continue to make the necessary investments required to best capitalise on the enormous opportunities ahead of us.

We are taking major steps towards realizing our vision of becoming the leading semiconductor and software level solutions provider for multiple sensor modalities and we will continue to make the necessary investments required to best capitalize on the enormous opportunities ahead of us.

Speaker 3: We're laser focused on addressing our customers needs and creating differentiated platforms, enabling solutions that will help unleash next-generation driver assistance systems, and ultimately enable true autonomous driving while simultaneously advancing user interfaces to enhance the end-carbon experience.

We're laser focused on addressing our customers' needs and creating differentiated platforms, enabling solutions that will help unleash next generation driver assistance systems, and ultimately enable to autonomous driving.

Simultaneously advancing user interfaces to enhance the in cabin experience.

Speaker 3: In short, our comprehensive, highly integrated and cost effective architectures are enabling our customers to fulfill the promise of tomorrow's vehicles today.

In short our comprehensive highly integrated and cost effective architectures are enabling our customers to fulfill the promise of tomorrow's vehicles today.

Speaker 3: That concludes our prepared remarks. Operator, let's open the call for tuning.

That concludes our prepared remarks, operator, let's open the call for Q&A.

Speaker 1: Thank you. To ask a question, please press star one on your telephone keypad. A confirmation tunnel indicate your line is in the question queue. You may press star two if you'd like to remove your question from the queue.

Thank you to ask a question. Please press star one on your telephone keypad.

For making tall indicate your line is in the question queue.

Press Star two if you'd like to remove your question is on the Q4.

Speaker 1: For participants using speaker equipment, it may be necessary to pick up your hands up before pressing the star keys. We ask that you limit yourself to one question and one follow-up.

For participants using speaker equipment and may be necessary to pick up your handset before pressing the star keys.

We ask that you limit yourself to one question and one follow up.

Speaker 1: And your first question comes from Craig Ellis with B. Riley. Your line is open. Please go ahead.

And your first question comes from Craig Ellis with B Riley. Your line is open. Please go ahead.

Speaker 5: Yeah, thanks for taking the question and congratulations on the strong performance and I'll, guys, Donald, I wanted to direct the first question to you and it's really a higher level question regarding the interaction that you're having with customers after announcing the two acquisitions to your axion and Simio.

Yes, thanks for taking the question and congratulations on the strong performance guys.

Donald I wanted to direct the first question to you.

And it's really a higher level question.

Regarding the interaction that you're having with customers after announcing.

The two acquisitions tear axiom and <unk> and <unk>.

Speaker 5: How is that impacting one, the opportunity they see with you and really the breadth of opportunities that you see across your customer base for things in the ADAS realm?

How is that.

Impacting one the opportunity they see with you and and really the breadth of opportunities that you see across your customer base for things in the eight escrow.

Speaker 3: Yeah, thanks, Greg. The feedback's been overwhelmingly positive. In the case of Teraxion, the combination of their laser technologies and our mixed finial SLC technologies is something that's...

Yeah. Thanks, Craig the feedback has been overwhelmingly positive.

In the case of <unk> the combination of their laser technologies in our mixed signal <unk> technologies is something thats.

Speaker 3: Opened the eyes and excited customers who were already excited with what we had beforehand But now the fact that we're able to offer more of the of the bill materials to them in more of a sort of one-stop shop type environment

Open the eyes and excited customers, who are already excited with what we had beforehand, but now the fact that we're able to offer more of the of the bill of materials to them in more of a sort of one stop shop type <unk>.

Speaker 3: I mean the velocity of the engagements has simply increased.

Environment.

I mean, the velocity of the engagements has simply increased.

Speaker 3: With Sumeo and the addition of the additional RF microwave designers, certainly that opens a kind of greenfield market for us where, as we mentioned in the remarks, it's an extremely large market. It's extremely hungry for new technologies and new entrants at this point. So yeah, we're really excited and I believe our customers are very excited too.

With <unk> and the addition of the additional RF microwave designers.

Certainly that opens.

Greenfield market for us.

As we mentioned in the remarks, it's an extremely large market, it's extremely hungry for new technologies and new entrants at this point so.

Yes, we're really excited I believe our customers are very excited too.

Speaker 5: And the press release, I believe, spoke to an expansion in the long-term backlog. Can you talk more about that? Were you seeing that expansion and what specifically drove that in the quarter?

And the press release I believe spoke to an expansion in the long term backlog can you talk more about that where are you seeing that expansion, then and what specifically drove that in the quarter.

Speaker 3: Well, actually, I mean, the backlog is a culmination of almost the years worth of time passing since we last gave an update, which was around the time of our announcement of this pack company.

Well actually I mean, the backlog is a culmination of almost a year's worth of time passing since we last gave an update which was around the time of our announcement of the <unk> combination.

Speaker 3: So really it's a combination of a large amount of work across many design winds, which are fairly evenly spread across our three areas of focus and the ADAS sensing to enable autonomous driving, user experience and indeed an electrification. If I could call out three things which are clear, the lighting wind that we talked about in the prepared remarks here is one of the key drivers.

So really it's a combination of.

A large amount of work across many design wins, which are fairly evenly spread across our three areas of focus in the Adas sensing to enable autonomous driving user experience in deed in electrification.

If I could call out three things which are clear.

Lighting win that we talked about in the prepared remarks here is one of the key drivers.

Speaker 3: the EVE vehicle platform design win, which we talked about in last quarter's earnings, and of course, the addition of the Teraxi on revenue, which speaks to the LIDER on the future.

The vehicle platform design win which we talked about in last quarter's earnings and of course. The addition of the taxi on revenue, which speaks to the lidar in the future.

Speaker 1: Thank you. Our next question comes from the line of Ross Seymour with Deutsche Bank. Your line is open. Please go ahead.

Thank you. Our next question comes from the line of Ross Seymore with Deutsche Bank. Your line is open. Please go ahead.

Speaker 6: Guys, I wanted to echo the congratulations. Donald, you guys are doing a great job.

Hey, guys I wanted to echo the congratulations.

Donald Thanks, Rob you guys are doing a great job.

Speaker 6: You guys are doing a great job, not only in executing in your business, but also in the M&A front with the deals that you announce, the long list of them. You just wondered from a high level, do you think you have the pieces of the puzzle necessary to really address the vast majority of the time you really want to go after, or do you think Indy's going to remain pretty equisitive for the foreseeable future?

You guys are doing a great job.

Not only in executing on your business, but also on the M&A front with the deals that you announced the long list of them, but just wondering from a high level do you think you have the pieces of the puzzle necessary to really address the vast majority of the Tam you really want to go after or do you think India is going to remain pretty acquisitive.

For the foreseeable future.

Speaker 3: Well, I mean, we're very happy with the constellation that we have in place right now, and that's more than adequate to execute our plans and then some.

Well I mean, we're very happy with the constellation that we have in place right now and thats more than adequate to execute our plans and then some.

Speaker 3: I mean, there are many opportunities out there for groups that are interesting. We like to add areas of new technology, which you can add new strings to our bowl and indeed to.

I mean, there are many opportunities out there for groups that are interesting, we like to add areas of new technology, which can add new strength to our board and indeed two.

Speaker 3: to augment our ability to address the markets that we're already in. So yeah, I think the answer fundamentally, the answer to your question is both.

To augment our ability to address the markets that we're already in so yes, I think the answer fundamentally the answer to your question is both.

Speaker 6: Got it. Well, my follow up will be another high level question for Donald, I would guess. Supply shortages are a big question mark in the auto industry as you guys will know. You guys have been navigating them very successfully by hitting your numbers and guiding strongly, etc.

Got it and my follow up will be another high level question for Donald I would guess.

Apply shortages are a big question Mark in the auto industry. As you guys. Well know you guys have been navigating them very successfully by hitting your numbers and guiding strongly et cetera.

Speaker 6: But when you look at the supply situation, is it in any way either directly or indirectly impacting your revenue growth, or are you able to actually navigate it well and in case some share where other people are running into bigger problems than you? So generally, how are you seeing that environment? Is it hurting you and do you think it loosens up going forward?

But when you look at the supply situation is it in any way either directly or indirectly impacting your revenue growth or are you able to actually navigate it well and take some share or where other people are running into bigger problems. So generally how are you seeing that environment.

Is it hurting you and do you think it loosens up going forward.

Speaker 3: Well, first and foremost, as we've shown so far, we've been able to navigate it pretty well. We've met our numbers on a pretty steep growth trajectory in spite of everything. I mean, fundamentally, of course, it'd be charlotte to say that it hadn't limited us because the number of cars sold this year was without on that respect.

Well first and foremost as we've shown so far we've been able to navigate it pretty well we've met our numbers on a pretty steep growth trajectory in spite of everything.

I mean fundamentally of course, it would be <unk> to say that.

Hadn't limited is because the number of cars sold this year was that in that respect.

Speaker 3: On the other hand, that means that there's a huge amount of pent up demand which should basically release once the allocation situation wears off through the course of 2022. So I mean, people still want to buy cars. I mean, if you go trying to buy a car off a lot today, you can't find one.

On the other hand that means there's a huge amount of pent up demand, which should basically release once the allocation situation wears off through the course of 2022. So I mean people still want to buy cars I mean, if you could try and buy a car off a lot today you can't find one.

Speaker 3: And that will fundamentally change once the allocation situation changes.

And that will fundamentally change once the allocation situation changes.

Speaker 3: How we see that going forward? I mean, it's going to be extremely tight and we're going to need to continue the good management process that we've had recently, at least through the next two quarters, maybe into the middle of 2022.

How we see that going forward I mean, it's going to be extremely tight and we're going to continue.

Good management process that we've had recently at least through the next two quarters, maybe into the middle of 2022.

Speaker 3: I would say the demand for automotive semiconductors won't relaint. If anything will shoot sea strength in that, if anything relieves the pressure valve at least, I would imagine it would be in other areas such as consumer, which would in turn then allow a little more space and fabs to be made available for automotive guys like us.

I would say the demand for automotive semiconductors Wonderland, if anything we'll should see strength in that if anything relieves the pressure valve at least I would imagine it would be in other areas such as consumer which would in turn then allow a little more space in fabs to be made available for automotive guys like us.

Speaker 1: Thank you. Back concludes the Q&A session. I will now turn the call over to Donald McClemmon.

Thank you.

That concludes the Q&A session I will now turn the call over to Tom climate.

Speaker 3: Well, thanks everybody. Look forward to seeing you at our upcoming Investor meetings. And see you next quarter.

Well thanks, everybody.

Forward to seeing you at our upcoming Investor meetings.

And see you next quarter.

Speaker 1: This concludes today's conference and you may disconnect your lines at this time. Thank you for your participation and have a wonderful day.

This concludes today's conference and you may disconnect. Your lines at this time. Thank you for your participation and have a wonderful day.