Q3 2022 Transphorm Technology Inc Earnings Call

Yes.

Speaker 1: Good afternoon. My name is Savannah and I will be your conference operator. I would like to welcome everyone to today's transform business update conference call.

Good afternoon. My name is Savannah, and I will be your conference operator, I would like to welcome everyone to today's transform business update conference call.

Speaker 1: All lines have been placed on mute to prevent any background noise, and after the speaker's prepared remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star 1 on your telephone keypad. If you would like to withdraw your question, please press star 1 again. Please be advised that today's conference is being recorded.

All lines have been placed on mute to prevent any background noise and after the speakers' prepared remarks, there'll be a question and answer question.

If you would like to ask a question during that time simply press star one on your telephone keypad.

If you would like to withdraw your question. Please press star one again.

Be advised that today's conference is being recorded joining.

Speaker 1: Joining today's call from Transform are Mario Rivas, Chief Executive Officer, Kremet Parikh, co-founder and Chief Operating Officer, and Cameron Macaulay, Chief Financial Officer.

Joining todays call from transform our lovely Mario Riva Chief Executive Officer.

Perry co founder and Chief operating Officer, and Cameron Mccauley, Chief Financial Officer.

Speaker 1: Before we begin, I'd like to point out that there is a slide presentation associated with today's call, which management will be referencing during the conference call. These slides can be accessed through the live webcast link in the investor relations section of Transform's website, and they will also be posted on a linked PDF subsequent to today's conference call.

Before we begin I'd like to point out that there is a slide presentation associated with today's call, which management will be referencing during the conference call. These slides can be accessed through the live webcast link in the Investor Relations section of transpires website and they will also be posted on our wage benioff subsequent to today's conference call.

Speaker 1: Additionally, during the course of this call, the company may make forward-looking statements regarding the company's financial position, strategy and plans, future operations, specific end markets and other areas of discussion.

Additionally, during the course of this call the company May make forward looking statements regarding the company's financial position strategy and plans future operations specific end markets in other areas of discussion.

Speaker 1: It's not possible for the company or management to predict all the risks, nor can the company assess the total potential impact of all factors on its business, or the extent to which any factor or combination of factors may cause actual results to differ materially from those contained in any forward-looking statement.

It's not possible for the company and I just want to predict all the risks nor can the company. If that's the total potential impact of all factors on its business or the extent to which any factor or combination of factors may cause actual results to differ materially from those contained in any forward looking statements.

Speaker 1: 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.

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.

Speaker 1: Any projections as to the company's future performance represent management estimates of today, February 9, 2022. Neither the company nor any person has any responsibility for the accuracy or completeness of the forward-looking statement.

Any projections as to the company's future performance represent managements estimates as of today February nine 2022.

Neither the company, nor any person assumes responsibility for the accuracy or completeness of the forward looking statements.

Speaker 1: The company undertakes new obligations to publicly update forward looking statements for any reason after this date of this call to conform such statements to actual results or to change in the company's expectations. For more detailed information on risks associated with the company's business, we refer you to the risk factors described in Transforms S1, 10KT, and other steps to point filings with the SEC. With that, I will now turn the call over to Transforms CEO Mario Reves for opening remarks. Mario, please go ahead.

The company undertakes no obligation to publicly update forward looking statements for any reason after the date of this call to conform such statements to actual results or to change in the company's expectation.

For more detailed information on risks associated with the company's business. We refer you to the risk factors described in transforms S. One 10-K T and other subsequent filings with the SEC.

With that I will now turn the call over to transform CEO Mario leave us for opening remarks Mario. Please go ahead.

Thank you Roberto.

Speaker 2: Thank you, Savannah. And welcome to everyone on today's call. And thank you for joining us.

Good day, everyone on today's call and thank you for joining us.

Speaker 2: Prodo-Greben will increase sequentially for the eighth consecutive quarter and grew 220% near over a year to a quarterly record of $3.6 million.

Google Group annuity grew sequentially for the eighth consecutive quarter.

220% year over year to a quarterly record of $3 six.

Julian Brothers.

We shipped over 1 million Super Good June quarter.

Speaker 2: which shaped over 1 million Super Gan Gen 4 Fets or 45 watt to 300 watt power adapter and fast charger applications in December of 2021.

Good.

444 walked through could be under ward forwarded up for fast charging.

In December of 2021.

Speaker 2: We increase the total designings with power adapters and fast charges to over 50 with over 20 of them in production. And the total designings for higher power is 300 watts and 4 kilowatt.

We increased the total of the soybeans with power inductors in fast Chargers to over 50.

With over 20 of them in production.

Total new signings were hydropower.

<unk> rewards from four kilowatt.

Speaker 2: increased to over 30 with 20 of them in production.

Decrease due over theory.

Tornado damage production.

Speaker 2: We closed the 12.9 million number-occur private placement of common stock at $7.71 cents a share in December , bringing the total amount of equity financing is closed during the quarter to more than $45 million.

We closed the $249 million non brokered private placement of common stock at $7 71.

For sure.

<unk>.

Bringing the total amount of equity financings closed during the quarter to more than $45 million.

Speaker 2: Cash in the Google Ads as of December 31st, 2021, plus $21 million.

Cash and equivalents as of December 31, 21.

Yes.

Golar.

Speaker 2: With that, allow me to pass the call to Primord to work through the developments in more detail over the past few months.

With that allow me to pass the call to <unk> to walk through the developments in more detail over the past few months.

Thank you Mario and good afternoon, everyone. As you just heard transform has continued.

Speaker 3: Thank you Mario and good afternoon everyone. As you just heard, transform has continued our record product revenue traction for yet another quarter, achieving key milestones as we had talked demonstrating capability to deliver over a million adapter parts in a month and send on our balance sheet with strong investor support.

Product revenue traction for yet another quarter.

<unk> key milestones as we had talked demonstrating capability to deliver over $1 billion of Dr box in a month and strengthen our balance sheet with strong investor support.

Speaker 3: Like before, I will start with a quick recap of GAN, overall value proposition, TGAN leadership position, and clarifying our views on market positioning of various type of GAN, including clarifying some misinformation floating out there in the market, and then move to reviewing our team's strong execution on various fronts in December quarter. That sets us up now for an exciting 2022.

Like before I will start with a quick recap of again overall value proposition.

<unk> leadership position and clarifying our views on market positioning of various type of gang, including clarifying some misinformation floating out there in the market and then move to reviewing our team's strong execution on various fronts in December quarter that sets us up now for an exciting 2022.

Yes.

Speaker 3: What is gallium nitride? It is a part of the wide band gap semiconductor material family that is becoming the new present and future of power conversion because it reduces energy.

What is gallium nitride it as a part of the wide band gap semiconductor materials family that is becoming the new present and future of power conversion because it reduces energy.

Speaker 3: eliminates electrical waste, enables compact power conversion and lower power system cost across a variety of electrical energy conversion applications. And does this much better than silicon and also better than other new materials, semiconductors like silicon power bi?

Eliminates electrical waste enables contact power conversion.

And lower power system cost across a variety of electrical energy conversion applications and does this much better than silicon and also better than other new materials semiconductors like silicon carbide.

Speaker 3: Transform TGA and TGAN is an established innovator and leading manufacturer, the plier of GAN power semiconductors over the widest range of applications from lower power to higher power, from adapters and fast chargers to higher power data center, mining, crypto mining, communications, broad industrial renewables, and in design-ins for automotive electric vehicle applications.

<unk> is an established innovator and leading manufacturer and supplier of Gan power semiconductors, or the widest range of applications from lower power to higher power from adapters in fast Chargers to higher power data Center mining crypto mining communications broad industrial renewables.

And in designing for automotive electric vehicle applications.

Speaker 3: our strong technology and world-leading intellectual property, more than 1000 patents, and our products have been validated by our blue chip investors, customers, partners, including financial.

Our strong technology and world, leading intellectual property more than 1000 patents and other products have been validated by our blue chip investors customers partners, including financial.

Speaker 3: I see design solution partners, manufacturing and automotive industry leaders.

IC design solution partners manufacturing and automotive industry leaders.

Speaker 3: Our talented team has relied on our core and complete GAN manufacturing capability, allowing controls and innovation with our asset-like vertically integrated models that has yielded our comprehensive product portfolio with 30 billion, more than 30 billion hours of field operation having delivered 21.5 million revenue in the calendar year 2020.

Our talented team has relied on our core and complete Gan manufacturing capability, allowing controllers and innovation with our asset light vertically integrated models that is Iliad, our comprehensive product portfolio with $30 billion more than 30 billion hours of field operations, having delivered $21 5 million revenue in the <unk>.

<unk> 2021.

Speaker 3: Transform is in a very unique position of strength to have products in the market today that addresses a tremendous Multi-billion market opportunity or Ganttam as we call it for power conversion from lower power to higher power

Transform is in a very unique position of strength to have products in the market today that addresses a tremendous multi billion market opportunity organic Tim as we call it for power conversion.

From lower power to higher power.

Speaker 3: And there are markets that we are already ramping today. For example, the power adapters and chargers, higher power server crypto data comp power. And now ramping in industrial energy and renewable markets.

And there are markets that we are already ramping today for example, the power adapters and charges higher power server crypto data compiler.

And now ramping in industrial energy and <unk> markets, which are also moving for US now from the midterm to the more closer near <unk>.

Speaker 3: which are also moving for us now from the mid-term to the more closer near-term region.

Speaker 3: And mid to long term, the largest growth opportunity remains in our moral electric way.

And mid to long term the largest growth opportunity remains in automotive electric vehicles.

Speaker 3: This Ganttcam, as you can see on the right, is a multi-billion dollar range over the next few years. And a further inflection point through the EV powertrain segment middle of the decade. And we believe reaching $10 billion Ganttcam opportunity by end of the decade.

This gang Tim as you can see on the right in the multibillion dollar range over the next few years and a further inflection point.

The EV powertrain segment.

Middle of the decade, and we believe reaching $10 billion again Tam opportunity by end of the decade.

Speaker 3: Across this gamut of applications, transform GAN solutions deliver higher efficiency, compact systems with easy to use products for the customer with proven performance benefits against silicon carbide, silicon, and other GAN solutions.

Across the gamut of applications transformed <unk> solutions deliver high efficiency compact systems with easy to use products for the customer with proven performance benefits against Silicon carbide Silicon and other again solutions.

What is necessary and we aspire to do every day is deliver a combined spectrum of benefits.

Speaker 3: What is necessary and we aspire to do every day is deliver a combined spectrum of benefits.

Speaker 3: to all power conversion customers. By taking the inherent benefits of gallium nitride over silicon, silicon carbide to the next level.

All power conversion customers by taking the inherent benefits of gallium nitride or silicon and silicon carbide to the next level.

Speaker 3: our core GAN FET architecture, delivers performance with high efficiency over a wide range of power levels with leadership in product qualification and reliability. Field reliability now the rivals that are standard solocates.

Our core organic architecture delivers performance with high efficiency over a wide range of power levels with leadership in product qualification and reliability.

<unk> now that rivals that of standard silicon.

Speaker 3: Our asset light, vertically integrated model, allows for in-house GAN supply with control, innovation and ability to scale.

Our asset light vertically integrated model allows for in house again supply with control innovation and ability to scale.

Speaker 3: While others are now talking, which is a good thing about getting into higher power with GAN, we have been there for a while now and have sent benchmarks for titanium-class GAN power supplies more than three years ago. And in process also built up code into...

While others are now talking which is a good thing about getting into higher power with again, we have been there for a while now and have some benchmarks for titanium plus gain power supplies more than three years ago.

And in process also buildup core intellectual property.

Speaker 3: And we are not stopping at 650 volts or 900 volts where transform has the only GAN product in the market, but are now pursuing advanced R&D with 1200 volts, which we think is well in the realm of GAN, not just Silicon carbide domain.

And we're not stopping at 650 awards are 900 volts, but transform has the only gan product in the market.

Now pursuing advanced R&D, let's try 100 roads, which we think is well in the <unk> again, not just silicon carbide domain anymore.

Speaker 3: The TGAN FET is directly compatible with leading silicon controllers and they're inbuilt integrated drivers, no extra components or shrubbery required to interface our GAN with the outside world. And this is manifested in our growing ecosystem of solution partners as we will review.

The <unk> effect is directly compatible with leading silicon controllers and the in built integrated drivers no extra components or shrubbery required to interface, our again with the outside world.

And this is manifested in our growing ecosystem of solutions partners as we will review.

Speaker 3: And finally, our strong IP portfolio that has alluded to fight to 10 times bigger than some competition in GAN. Covers not only how GAN is made, but also how it is used in many ubiquitous power application architectures. For example, like the bridge topolo.

And finally, our strong IP portfolio that I alluded to five to 10 times bigger than some competition again covers not only how gummies made but also how it is used in many ubiquitous power application architectures for example, like the bridged apology.

Speaker 3: As a result, TGAN has enabled our customers with products that range from adapters to automotive, from lower power to higher power, from 30 watts to 30 kilowatts. For example, realizable by our Gen5 10 kilowatt class solution in a multi-phase application.

As a result <unk>.

<unk> has enabled our customers with products that range from adapters to automotive from lower power two hydropower from 31 to 30 kilowatts. For example, realizable by other Gen 510 kilowatt class solutions in a multi phased application.

Speaker 3: Every major category of power conversion can be targeted now, including automotive converters and chargers, and in the future electric vehicle power train inverters.

Every major category of power conversion can be targeted now, including automotive converters and charges and in the future electric vehicle powertrain and buttressed as well.

Speaker 3: Shifting gears to some of these verticals now from lower power to higher power and then why we went

Shifting gears to some of these verticals now from lower power to higher power and then why we win.

Speaker 3: As the GAN adoption is happening fast now, many good companies are in the market. The market needs multiple companies to grow at a fast rate and to support the curve.

As the Gan adoption is happening fast now many good companies are in the market the market needs multiple companies to grow at a fast rate and to support the customers.

Speaker 3: especially at lower power. This is happening with transform having the distinction of being in market both at lower power and higher power.

Especially at lower power. This is happening, let's transform having the distinction of being in market, both at lower power and higher power.

Speaker 3: allowing the customers to do more with less and a simpler architecture and build up materials with our can solution.

Allowing the customers to do more with less and a simpler architecture and bill of materials with our Gan solutions.

One of the things, we China is not to confuse the market and to do our best as to how again and again can help the customer of it.

Indeed, there is some misinformation or as we call it that sometimes gets spread and confused about gallium nitride.

Speaker 3: So first of all, no matter what you call your GAN, normally of operation is what the customer and the application has always demanded in power. That has been a constant. There are many good ways of doing it, which is up to the individual companies. For example,

So first of all no matter what you call. Your again normally of operation is what the customer and the application has always demanded in power that has been a constant there are many good ways of doing it which is up to the individual companies for example.

Speaker 3: term terminologies like emode approach or demode approach or whatever the mode is. At the end of the day one needs to deliver the best performing and the most reliable normally off-cam. That is what...

Tom terminology is like a more approachable demoed approach or whatever the bodies at the end of debate one needs to deliver the best performing and most reliable normally off Ken that is what matters.

Speaker 3: Performance is delivered by superior underlying gang technology and coupled with solutions working with the customer, there is no universal one size fits all quite yet. For example, here we show on the right a transform gang solution, T-gang, FET of performing a e-mode gang. In this case happens to be an IC variant in the same third party customer testing.

Performance is delivered by superior underlying game technology, and coupled with solutions and working with the customer that has no universal one size fits all quite yet for example here we show in the rate of transform Gan solution Pn set outperforming E Mail again in this case happens to be an IC radiant.

In the same third party customer testing.

As an example.

Speaker 3: Then there are all kinds of claims about megahertz switching and fast frequency, so on, so forth. The fact is that years ago, we have taken our normally off can to one megahertz, thousand kilowatts, 99% efficient operation. And that to a higher power, one kilowatts, which is more challenging.

Then there are all kinds of claims about mega hubs switching and phosphoric brinci. So on so forth. The fact is that years ago, we have taken our normally off gain two one mega hubs <unk>, 99% efficient operation and that to a higher power one kilowatts, which is more challenging.

Speaker 3: This is high frequency operation. It is a system design trade off. Heat locks is transformer losses. Everything has to be keeping in mind. So we work closely with our customers. Of course, as far as the power switch is concerned, the fundamental GAN, that is due to the inherent nature of GAN. It is not due to any particular IC or other topology.

This is high frequency of patient is a system design tradeoffs peak losses transformer losses everything has to be keeping in mind. So we work closely with our customers of course as far as the power switch is concerned the fundamental again.

<unk> is due to the inherent nature of <unk>. It is not due to any particular IC or other topology.

Good <unk> switch fast.

And finally, a lot of talk about the integration and drivers and it is very important.

Speaker 3: And finally, a lot is to talk about the immigration and drivers. And it is very important.

Speaker 3: But one often ignored fact is that modern day controllers, many modern day adopters and charger controllers, especially at lower power have integrated drivers, basically for free. As it turns out in our architecture, we integrate a small silicon fat with our gain. There is no extra driver needed at all in this case is especially at lower power. So integration is about where, what, how you integrate to give the best advantage to your company.

But the one often ignored effect is that modern day controllers, many modern day adapters and charges controllers, especially at lower power and integrated drivers basically for free.

As it turns out in our architecture.

Integrate a small silicon fed with Allergan that has no extra driver needed at all in these cases, especially at lower power. So integration is about where what how you integrate to give the best advantage to your customer.

Speaker 3: In the table below, we list out some of our different sheet benefits that we apply both to adaptive and charges for mobile and laptops 45 watts to 200 watts plus.

In the table below we list out some of our differentiated benefits that we applied both to adaptive and charges for mobile and laptops 45 watts to 200 Watts plus.

Speaker 3: which is a key market trend in the last couple of years. The shift for adapters and charges to GAN. Very exciting for the GAN.

This is a key market trends in the last couple of years, the shift for adapters and charges to again very exciting for the gangway.

Speaker 3: There are multiple good offerings from various companies at the lower power end, which is growing, and Transform is also moving fast in this area as evidence evidenced by the million-unit shift into.

There are multiple good offerings from biggest companies at the lower power and which is growing and transform is also moving fast in this area as evidenced evidenced by the 1 billion units shipped in December .

Speaker 3: As you see here, Silicon obviously has been working great in the past, but now for short, in efficiency speed and small size required for new products. Again, launch it from here.

As you see here Silicon, obviously has been working great in the past, but now fall short and efficiency speed and small size required for new products gain launches from here.

Speaker 3: Transform GAN excels in ease of use and flexibility, compatibility with standard drivers, no extra bomb components or shabby needed to interface our GAN to the external world.

Transform gain access in ease of use and flexibility compatibility with standard drivers not extra bump components or somebody needed to interface our gain to the external world.

Speaker 3: which means cost-effective is easy to use. The intrinsic GAN performance, which is our basic GAN material and device, is fully exploited to achieve highest efficiency or lowest losses among many other GAN adopts.

Which means cost effective easy to use.

Intrinsic game performance, which is our basic Gan material and device is fully exploited exploited to achieve highest efficiency our lowest losses among many other again adapters.

Speaker 3: and the ability to go to higher power levels and reliably so where the PGAN implementation, the so-called PGAN in the EMOD rendition of the normally off presents a weaker input interface and a weaker device.

And the ability to go to higher power levels and reliably so.

The PGN implementation, the so called <unk> in the email tradition after normally off presence a weaker input interface and a weaker device.

Speaker 3: Another important reminder is power conversion application again span from low to mid to high and then also very high power level.

Another important reminder, is power conversion application again spend from low to mid to high and then also very high power levels.

Speaker 3: Today, out of the GAN offerings, and this is what, to our best of the knowledge of released products in the market by customers, our customer systems, not just stock for the future, transforms GAN spans from 30 watts to 10 kilowatts, and in a three-phase, it can be even higher, as we have demonstrated with our Gen 5 product.

Today out of the game offerings and this is what our best of their knowledge of release products in the market by customers our customer systems, not just talk for the future.

<unk> Gan spans from 30.

To 10 kilowatts and in a three phase it can be when even even higher.

As we have demonstrated with our gen five products.

Speaker 3: Many competing offerings may lie for higher power in the future, but today they are limited to lower power. So why?

Competing offerings nearby for higher power in the future, but today they are limited to lower power.

So why does T gambling.

Speaker 3: First of all, our successful higher power comes from the underlying stability of the TGAN-fed architecture that allows it to be offered in industry standards, thermal-erobal packages like the TO, the TO247, which today's e-mode gallium nitrate finds it difficult to do because of inherent devices.

First of all our success at higher power comes from the underlying stability of the <unk> architecture that allows it to be offered in industry standard totally robust packages led the telos 247.

Today's even gallium nitride finds it difficult to do because of inherent device weakness.

Speaker 3: better material's capability for a GAN device that switches better and higher power from a smaller or lower current die versus that of competing and solutions and proven reliability with high yield manufacturing of large area GAN power.

Better materials capability for again device that switches better and higher public from a smaller or lower current date versus that of competing and solutions and proven reliability with high yield manufacturing of large area.

Power chips.

Speaker 3: And now with these attributes, what these attributes have enabled us to do is build up a strong ecosystem of solution partners, notably manufacturers of controllers and integrated drivers.

And now with these attributes what these attributes have enabled us to do is build up a strong ecosystem of solution partners.

<unk> manufactures of controllers and integrated drivers.

Speaker 3: This includes multi-compes like diodes, innovative controller companies like Silana, and a few others whoever, who we have not publicly announced yet. In just the last few months, our partners and transform together have rolled out four more charger designs and solutions, three of them at the higher power range, higher power range in the slow power adapter and charger market at the 100 or 22050 watts, and 145 watt implementation.

This includes market companies like diodes innovative.

Controller companies like <unk>, and a few others, who we have not publicly announced yet in.

In just the last few months, our partners and transform together have rolled out for more charger designs and solutions three of them at a higher power range hydropower range in this low power and charter market <unk>.

102 to 50 Watts and 145 what implementation.

Speaker 3: where our solutions now cover this fast charger space from 45 watts to 2.

We had other solutions now cover this fast charger space from 45 to $2 51.

Speaker 3: TGEN architecture that is high performing and very easy to design in with our solution in the ecosystem has allowed us to now increase the design in to more than 50 with over 20 of them in production. We show a sample of this here, including the recent design wins that include and as we highlight here, 100 watts, 150 watts and 250 watts adapters and chargers.

Tegan architecture that has high performing and very easy to design with our solution in the ecosystem has allowed us to now increase the design ins to more than 50 with over 20 of them in production this year.

So a sample of this year, including the recent design wins that include and as we highlight here 100 watts of $1 50 Watts and 250 watt adapters and charges.

Laptops and other applications.

Speaker 3: The higher power space, as I have said, is extremely important. Higher the power, higher the energy saving, higher the impact of GAN. And on a holistic level, the impact of electricity usage and carbon footprint.

The hydropower space as I have said is extremely important hydropower highly energy saving highest impact of yen and on a holistic level the impact of electricity usage and carbon footprint.

Speaker 3: So here some of our Gen 4 and Gen 5 offerings now are compared to leading silicon carbide products in this space because other gallium nitride, the Emo type of gallium nitride is not quite ready today, at least for higher power especially in term of the robust packages like the TU-247.

So here are some of our Gen four and Gen. Five offerings now are compared to leading silicon carbide products in this space because other gallium nitride that E mail type of gallium nitride is not quite ready today at least for higher powered especially intermodal those packages like the tier 247.

Speaker 3: As an example shown here, our highest power 15 million products.

As an example shown here our highest power 15 million home product.

Speaker 3: By the way, to the best we can tell this is the lowest our own for a qualified ramped 650 volts gallium nitride inner discreet, T-247 package. It outperforms silicon carbide, whether it be the MOSFET or the J-FET, both...

By the way to the best we can tell this is the lowest our own for our qualified ramped 650 volt gallium nitride discrete tier 247 package it outperformed silicon carbide, whether it be the MOSFET all the GFS.

Very good products by strong companies.

Speaker 3: by strong companies in a standard package, in a standard bridge circuit, 25 to 38% lower losses, and ability to deliver 10 kilowatt power level from a single part in a half bridge.

Kind of packaged in a standard bridge circuit, 25% to 38% lower losses and ability to deliver 10 kilowatt power level from a single product in a heartbeat configuration.

Again, lightest gallium nitride and transform Vin because number one gallium nitride offers lowest losses and highest performance of leading power semiconductor materials, thus extending the Moore's law as we told me of power conversion, enabling performance output power density in this case to continuously increase by time.

Speaker 3: Again, why does gallium nitride and transform wind? Because number one, gallium nitride offers lowest losses and highest performance of leading power symmetrical materials, thus extending the Moore's law as we term it of power conversion, enabling performance output power density in this case to continuously increase by time. Which.

With time.

Gallium nitride on Silicon, which is a transformed platform in the market.

Speaker 3: gallium nitrate on silicon, which is a transform platform in the market.

Speaker 3: Our products are made on GAN on silicon today. Utilizes lower cost silicon substrates and after the GAN epiway for step that we have full ownership of, we are not limited to just an external...

Our products are made on Gan on silicon today utilizes lower cost silicon substrates and after again MPV for step that we have full ownership of.

We are not limited to just an external foundry for example.

Speaker 3: Our solutions and any get on silicon for that matter will leverage a full silicon wafer Fab helped him out and does your capability, when it comes to real apple welfare.

Our solutions and any Gan on silicon for that matter will leverage a full silicon wafer fab manufacturing.

Speaker 3: Something again, the transform has joined ownership of control of in our Japan, FABJU.

Something again to transform has joined ownership of controllers and our <unk>.

Japan Fab joint venture.

Speaker 3: and then the proven reliability automotive qualifications robustness in the

And then the proven reliability automotive qualifications robustness in the field.

So customers have selected our higher power offerings across the spectrum.

Speaker 3: So customers have selected our higher power offerings across the specs.

Whether it is crypto mining, which is of extreme power hungry applications led our titanium SaaS efficient gallium nitrate solutions have enabled a 1% efficiency increase and by the way one system at that 1% can save a few hundred kilowatt per hour and 200 pumps of carbon footprint equal LLP.

Speaker 3: whether it is crypto mining, which is a extreme power hungry application where our titanium, class, efficient, gallium-metted solutions have enabled a 1% efficiency increase. And by the way, one system at that 1% can save a few hundred kilowatt per hour and 200 pounds of carbon footprint equivalent.

Speaker 3: What we expect is more than 50,000 metric tons of savings can be possible from what we estimate our 2022 outlook just in the crypto and the gaming gaming segment combined together.

What we expect is more than 50000 metric tons of savings can be possible from what we estimate our 2022 outlook just in the crypto and the gaming gaming segments combined together.

Speaker 3: Top right in the server power space, we have, along with our customers, enabled titanium rated power supplies for value over 3 to 4 years now. Other GAN suppliers are now trying to follow suit in this domain, which is great.

Top right into solar power space.

Along with our customers enable titanium related power supplies for well over three years to four years now.

Other gas suppliers are now trying to follow suit in this domain, which is great.

Speaker 3: efficiency, compactness of GAN has enabled leading gaining suppliers to adopt GAN solutions, increasing power by 6 to 7 percent while at the same time decreasing system size by more than 10 percent and being able to do so, pricing the final power supply, the same price as their older generation silicon solution.

Efficiency compactness of Gan has enabled leading gaming suppliers to adopt <unk> solutions, increasing powered by 6% to 7% while at the same time decreasing system size by more than 10% and being able to do so pricing. The final power supply the same price as the older generation Silicon solutions.

Speaker 3: And then there is a variety of industrial energy, military, high-res, and e-mobility solutions from 500 watts to 4 kilowatts.

And then there is a variety of industrial energy military hydro and E mobility solutions from 500 watts to four kilowatts.

Transform is winning.

Speaker 3: We aim to grow this high power segments and maintain our leadership position.

We aim to grow this high power segments and maintain our leadership position here.

Speaker 3: Electric vehicles are a key focus area for GAN and transform. As we know, Silicon Carbide has done a...

Electric vehicles are a key focus area for Gan and transform.

As you know silicon carbide has done very well in this segment.

Speaker 3: And again, with its core capability, the fundamental capability, I just show is poised to enable long-term benefits to the EV market.

And again with its core capability the fundamental capability I just showed is poised to enable long term benefits to the EV marketplace.

Essentially gain helps address the barriers of slower charging and range anxiety that stemmed from power losses, and the heat constraints due to the heavy bulky converter in workers with inefficient silicon based electronics.

Speaker 3: Essentially, GAN helps address the barriers of slower charging and range anxiety that stem from power losses and the heat constraints Due to the heavy bulky converter and inverters with inefficient silicon-based electronics

Speaker 3: Transform has automotive qualified AEC qualified products today the Gen 4 high power already ramped in the market in various commercial applications.

Transform is automotive qualified ADC qualified products to date the Gen. Four high powered already ramped in the market in various commercial applications.

Speaker 3: Not only that, but we are targeting to stay ahead in this game by enabling in future 1200 World Galaam Nitride and taking on Silicon Carbite there.

Not only that but we are targeting to stay ahead in this game by enabling in future to a 100 watt gallium nitride and taking on silicon carbide there.

We will announce RMB.

Speaker 3: people announced R&B results in this area in future.

In this area in future.

Speaker 3: All in all, we look forward to gallium nitride improving the electric bike range.

All in all we look forward to gallium nitride, improving the electric vehicle range.

Speaker 3: I tend to 20% in future or even more depending on the efficiency enabled and with higher power in a small-form factor enabling foster charging.

I tend to 20% in future or even more depending on the efficiency enabled and with higher power in a small form factor, enabling faster charging.

Speaker 3: The acceleration of the EV opportunity and the aggressive adoption scenarios worldwide makes the longer term scenario for GAN hyper-attractive. The specific GAN opportunities in EV today are in the areas of OBCs on both charger, DC-DC converters, off-grid DC to AC auxiliary inverters, and over the next several years.

The acceleration of the <unk> opportunity.

Adoption scenarios worldwide makes the longer term scenario for again hybrid attracted the specific gain opportunities in either today or in the areas of Rbc's onboard charger DC DC converters of rig DC to AC auxiliary in waters and over the next several years.

Speaker 3: We will have unlocking the drive-range and virtual opportunity. Something we are very closely working with our strategy part.

We will have unlocking the drivetrain and what's your opportunity something we are very closely working with our strategic partners.

Speaker 3: that will triple the accessible GAN content for auto mode.

That will triple the accessible game content for automotive.

Speaker 3: We aim to be in the market with the X-Fifty Voltage products today and higher voltage solutions in future for all the key EVs.

We aim to be in the market with 650 voice products today and higher voltage solutions in future for all the key slots.

Speaker 3: Next, we move into our December quarter performance and key vectors driving our roads.

Next we move into our December quarter performance and key vectors driving our growth.

Speaker 3: First and foremost, we are happy to say that we delivered on what we had said. What we had said. Achieving 152% revenue level from the first half of the year to the second half of the calendar year.

First and foremost we are happy to say that we've delivered on what we have said, what we had said achieving the 152% revenue level from the first half of the year to the second half of the calendar year.

Speaker 3: with key highlights of maintaining dominance in the GAN high power segment and gaining footprint in the adapter market, including the important milestone of one million shipments into it.

With key highlights of maintaining dominance in the Gan high power segment, and gaining footprint and the Dr market, including the important milestone of 1 million shipments in December .

Speaker 3: Second, as evident, we have delivered multiple quarters of product revenue growth now launching on top of our licensing, on top of our licensing and government revenue.

Second as evident we have delivered multiple quarters of product revenue growth now launching on top of our licensing on top of our licensing and government revenue business.

Speaker 3: The key business focus now is on expansion and scaling revenue products.

The key business focus now is on expansion and scaling revenue productivity, we outlined here several key metrics that we achieved during the last quarter and put them in perspective as to future growth.

Speaker 3: We outlined here several key metrics that we achieved during the last quarter and put them in perspective as to future growth.

Speaker 3: First, Product Revenue in the quarter was 3.6 million. Our eight successive record quarter in this department, with $1 million of Government revenue making up the rest.

First product revenue in the quarter was $3 $6 million, our eighth successive record quarter in this department.

<unk> dollars 1 million of government revenue, making up the rest.

Speaker 3: 3GAN continues to grow its share in the adaptor and fast charger areas Now with over 50 design ins out of which over 20 plus are in product

<unk> continues to grow its share in the adapter in fast Chargers areas now with over 50, designing out of which over 20, plus adding production well.

Speaker 3: We look forward to growing, especially in the 100 watt plus segments. You can call it a higher range of the lower power adapter area. And we are really pleased to have new solutions and reference designs, not only by Transform, but also our valued partners.

We look forward to growing especially in the 100 plus segments you can call. It a higher range of the lower power adapters and.

We are really pleased to have new solutions and reference designs not only by transform but also our valued partners.

Speaker 3: who like the vegan solution, or say that e-mode type of solutions because of our ease of interfacing and no external driver needed. The vulnerability and driver.

Who like the <unk> solution or say the type of solutions because of our ease of interfacing and no external drivers needed designing Bolivia and tolerability.

Speaker 3: We are pleased to lead in the GAN for the higher power. Broadly speaking, 300 watt to 4 kilowatt is in production today. And many of these applications in the 1 to 4 kilowatt.

We are pleased to lead in again for the higher power broadly speaking 300, what the Formula is in production today and many of these applications in the 1% to four kilowatt range.

Speaker 3: very increased the design in to now over 30 out of which more than half are in.

Will it increase the design ins to now over 30 out of which more than half predictions.

Speaker 3: We aim to grow and further get into areas like energy, PV power, emobility, where we are opening up new designs, new designs.

We aim to grow and further get into areas like energy PV power E mobility, where we are opening up new design new designs.

Speaker 3: We have 17 products in our white portfolio. Low power to high power, 650 volts and the only 900 volt product in the month.

We have we have 17 products in our <unk> portfolio low power to high power <unk> and the only 900 volt product in the market.

Speaker 3: in surface mount packages and teotab of packages. Three of these are automotive qualified parts already. And we will continue in future to expand this product offering to meet our customer and Matti.

In surface Mount packages and phenotype of packages thrilled this automotive qualified parts already and we will continue in future to expand this product offering to meet our customer and market needs.

Very importantly, now a significant emphasis and positive challenges.

Speaker 3: very importantly, now a significant emphasis and positive challenges will be a shift in 4.

It will be a shift in focus on capacity.

Speaker 3: expansion and managing production growth in what is still a challenging worldwide supply chain environment.

Expansion and managing production growth in what is still a challenging worldwide supply chain environment.

Speaker 3: expected to be there for next couple of quarters. We made a very important proof point in our adapter product capacity with the 1 million parts in December and now have expansion efforts underway for wafer capacity, both internal and external.

To be there for the next couple of quarters, we made a very important proof point in our adapter product capacity with the 1 million Pops in December and now have expansion efforts underway for wafer capacity, both internal and external.

Three key takeaways basically.

Speaker 3: 3K take away specifically You had the record quarter product revenue growth

<unk> had a record quarter product revenue growth.

Speaker 3: with transform in our partner solutions, manipulating the market, focusing on supply-sing execution and planning for capacity initiatives.

The transform and our partner solutions penetrating the market.

Focusing on supply chain execution and planning for capacity initiatives.

Speaker 3: To that end, we have started moving on the previously announced global wafer partnership that we talked about last time.

To that end, we have started moving on the previously announced global wafers partnership that we talked about last time.

Speaker 3: Global VFIRS is also an investor in transform for heavy wave expansion to support significant expected 2020-3 demand. Our VFIRF joint venture with our financial strategic partner remains on track and looking ahead for various initiatives there also to be ready for higher ramps in the

Global <unk> is also an investor and transform.

For ABB for expansion to support significant expected 2023 demand.

Our wafer fab joint venture with our financial strategic partners remains on track and looking ahead for various initiatives that also to be ready for high ramps in the future.

Speaker 3: We are working through our industrial and automotive partnerships that remain solved.

We are working to our industrial and automotive partnerships that remain solid.

Speaker 3: in the area of Servo, Drise and Robotics. Yes, Kava is a key partner for Transform. We had a milestone deliverability that has shifted some of the cash payment receivables by a quarter or so, but overall no major program.

And the <unk> drives and robotics discover is a key partner for transform we had the milestone deliverable delayed that has shifted some of the cash payment receivables by a quarter or so but overall no major program change.

Speaker 3: with an Xperia, who is our licensee and semiconductor partner. And especially, they look to expand again in the automotive and EV area. Our next milestone here is our Gen 5 AEC Automotive Qualification. Our Gen 5 already having achieved commercial qualification and introducing the market, the AEC Automotive Qualification we expect by media. Mid-mid-low.

With an expedia, who is our licensee in silicon metal partner and especially they look to expand again in the automotive and EDI area. Our next milestone here is our gen five.

Automotive qualification of a gen five already having achieved commercial qualification and introducing the market. The AUC automotive qualification, we expect by midyear mid middle of the year.

Speaker 3: Maraile is now moving to targeted product development phase with our Gen 4 and 5 products for onboard chargers and DCDC converter and also the transform product today supports up to 50 kilowatts of prototype inverter, the drivpring inverter that can be achieved by paralleling our higher power gen.

<unk> is now moving to targeted productivity phase with our Gen four and five products for onboard charger and DC DC converter and also the transformed product to date supports up to 50 kilowatts of prototype and what are the drivetrain in water that can be achieved but paralleling our higher power Gen five devices.

Speaker 3: We continue design in with other Japan-based IEB for 2023-2024 DCDC and OBC opportunities.

We continued design wins with other Japan based on <unk> for 2023, 2020 for DC DC in OTC opportunities.

That remains on track.

Speaker 3: The government revenue and the AP business remains steady as well. On the AP side, this is RF AP waivers. We increase our traction with DOD customers. We continue to support them. And we are also engaged with a couple of commercial designs. Still, we are awaiting the progress feedback that with the cycles of learning at our customers, the Navy program is running exactly to plan.

The government revenue in the MP business remained steady as well on the epic side. This is RFP wafers, we increase our traction with the Dod customers. We continue to support them and we are also engaged with a couple of commercial designs are still we are awaiting the progress feedback with the cycles of learning at our customers the mini program.

Is running exactly to plan.

Speaker 3: And like I mentioned, we also have innovative 1200 was R&D, which is in part supported by an R&D grant and contract from Arpa Heetapar.

And like I mentioned, we also have <unk> 12, 100 was RMB, which is in part supported by an R&D.

Grant and contract from ARPA E Department of energy.

Speaker 3: With that, a quick recap of our major announcement in the last quarter and in January , with starting with Yasukawa convertible to equity.

With that a quick recap of our major announcement in the last quarter and in January .

Starting with the <unk> convertible to equity.

Speaker 3: the Gen 4 automotive qualification, continued partnership with Diodzinc, highlighting the superior performance in ease of use of our galling nitride, financial investments, over 45 million that have strengthened our balance sheet, success in the Gain Adapter area, and of course today our product revenue, record product revenue, quarter.

The Gen. Four automotive qualification continued partnership with diodes, Inc. Highlighting the superior performance and ease of use of our gallium nitride.

<unk> investments over $45 million to have strengthened our balance sheet.

Success in the game adapted area and of course today, our product revenue record productivity quarter.

Speaker 3: All in all, we are very excited to be in the midst of an all-round GAN adoption growth phase with transform and our worthy fellow GAN companies in the market. TGAN focus remains in expanding our leadership in the high power GAN, growing our footprints in the adapters and fast chargers and capacity expansion, keeping up first with the demand and then next year staying well ahead of the demand curve. With that, I'd like to turn over to camera.

All in all we are very excited to be in the midst of an all around kind of adoption growth space with transform and our worldly fellow game companies in the market <unk> focus remains in expanding our leadership in the high power again growing our footprint in the adapters in fast Chargers and capacity expansion keeping up.

First with the demand and then next year staying well ahead of the demand curve.

With that I'd like to turn over to Cameron for other financial results.

Speaker 4: Thank you for the time, and hello to everyone joining us today. Let me start with some financial.

Thank you very much and Hello to everyone. Joining us today, let me start with some financial highlights. Following my remarks, I will refer both to GAAP and non-GAAP results, which are reconciled to GAAP in our press release table non-GAAP results exclude stock based compensation depreciation amortization and adjustments to fair value of our convertible note.

Speaker 4: For my remarks, I will refer both to GAP and non-GAP results, which are reconciled to GAP in our press release table. Non-GAP results include stock-based compensation, depreciation, amortization, and adjustments to the fair value of our convertible note.

Speaker 4: Starting with the income statement, QC FY22, saw a continuation of our growth story. Total gap and non-gap revenue, comprising product and government, was $4.6 million in the quarter. Compared to $3.3 million, product and government revenue from the prior quarter and $2 million for the equivalent quarter in 2020.

Starting with the income statement Q3, FY 'twenty two so a continuation of our growth story total GAAP and non-GAAP revenue comprising product and government was $4 $6 million in the quarter compared to $3 3 million Boes product and government revenue from the prior quarter and $2 million for the equivalent quarter in 2020.

Speaker 4: This quarterly year over year increase was driven by record product sales from ramping shimmings, including over 1 million units shipped in the month of December . This growth is supplemented by continued execution on our two year government contracts.

This quarterly year over year increase was driven by record product sales from ramping shipments, including over 1 million units shipped in the month of December . This growth is supplemented by continued execution on our key government contract.

Speaker 4: Focusing more now on product sales, the three months to September are eight successive quarter of product revenue growth and a record product revenue of $3.6 million. But comparing this quarter to the same quarter last year, product revenue grew by over 200%. This growth is being driven across a broad range of per conversion applications, including fast chargers and adapters, gaming, data center, and crypto line.

Focusing more now on product sales the three months to September saw eight successive quarter of product revenue growth and record product revenue of $2 6 million.

But competing this quarter to the same quarter last year product revenue grew by over 200%.

This growth is being driven across a broad range of power conversion applications, including fast Chargers and adapters gaming datacenter tripling.

Sure.

Speaker 4: First, the goods sold were $3.99 million in the quota, an increase of 102% year on year, below the revenue increase of 129% under the same period. If COGS increase is largely driven by strong volume growth across several market segments, we have also increased our manufacturing personnel, and are, as Primate mentioned, investing in incremental capital equipment to support our product growth.

Cost of goods sold for $3 $8 million in the quarter, an increase of 102% year on year below the revenue increase of 129% over the same period.

Let's Cogs increase was largely driven by strong volume growth across several market segments. We have also increased our manufacturing personnel.

As Tim mentioned investing incremental capital equipment to support protocol.

Speaker 4: operating expenses on a non-gap basis were $4.4 million in the compound quarter, compared to $4.5 million in the prior quarter. With comparing non-gap OPEX to the same quarter in the prior year, we saw a 20% increase. This growth being primarily driven by an expansion in our sales and applications team to support our increased revenue together with one-off compliance costs tied to a year and change.

Operating expenses on a non-GAAP basis were $4 4 million comp quarter compared to $4 $5 million in the prior quarter.

When comparing non-GAAP opex to the same quarter in the prior year. We saw 20% increase this growth is primarily driven by an expansion in our sales and applications team to support our increased revenue together with one off compliance costs tied to a year and change.

Speaker 4: Coming to EPS, I will focus by the marks here on non-GAAP results. The revenue growth allied to continued up-ex management resulted in non-GAAP EPS loss of nine cents in the quarter, a four-cent improvement on the equivalent quarter in the??

Turning to EPS.

Focus by remarks, you are non-GAAP results. The revenue growth highlights. The continued Opex management resulted in non-GAAP EPS loss of maintenance in the quarter, a 4% improvement on the equivalent quarter in the class I mentioned here.

Turning now to the balance sheet.

Speaker 4: Founding note of the balance sheet, across all aspects of the balance sheet, the December quarter, so significant improvement.

All aspects of the balance sheet at December quarter saw significant improvement.

Speaker 4: Initially assets. The company had total assets of $55 million as at 31 December , more than three times the equivalent number in the prior quarter. This was driven by strong raise activity, adding in excess of $45 million dollars to a balance sheet and resulting in a cash balance of $41 million dollars at the end of the quarter.

Initially assets the company had total assets of $55 million as at 31 December more than two times the equivalent number in the prior quarter. This was driven by strong raise activity I think in excess of $45 million for fees to our balance sheet, resulting in a cash balance of $41 million at the end of the quarter.

Speaker 4: This raises the strategic partners such as SES, Global Wafers, together with strong institutional investment from MCM and Boardman Bay amongst other.

This release included strategic partners, such as Ses Global wafer together with strong institutional investment from MCM important debate amongst others.

Speaker 4: Operation Upon did increase in the quarter, primarily due to timing of the seats and funding tied to development agreement with your Scala. Funding we anticipate to receive in the near future. Inventory also increased to support our improved traction and will enable continued revenue growth.

Operational bump did increase in the quarter, primarily due to the timing of the seats in funding tied to a development agreement with his skull funding, we anticipate to see in the near future.

Inventory also increased to support an improved traction and will enable continued revenue growth.

Speaker 4: The company also significantly reduced its liabilities to $18.6 million as at December 30th. This is just over 50% of the $34 million liabilities that the company had as at September . The Q-driver here was a successful conversion of the $15.6 million note that the company held with a long-term customer partner and now shareholder, Difffellah.

The company also significantly reduced liabilities to $18 6 million as at December 31st. This is just over 50% of the $54 million liability that the company has is that debt at September .

The key driver here was the successful conversion of $56 million note that the company held with a long term customer partner and those shareholders if Stella.

Speaker 4: This combination of funding activity, loan conversion and our ongoing focus on the cost of working capital management has significantly strengthened their balance sheet and improved our stock order's equity position by over $55 million in the quarter. It is through these developments that we believe the company is very well positioned to meet the qualification requirements for uplifting our common stock to the NASDAQ. This is an ambition that we will continue to pursue and are working internally to realise.

This combination of funding activity loan conversion and our ongoing focus on cost and working capital management, a significantly strengthened our balance sheet and improved our stockholders' equity position by over $55 million in the quarter.

It is through these developments that we believe the company is very well positioned to meet the qualification requirements for up listing our common stock to the NASDAQ. This is an ambition that we will continue to pursue our working internally to realize this.

I'd like to the next slate and transitioning from a financial performance I wanted to touch on positioning the.

Speaker 4: I think the next slide, I'm transitioning from our financial performance. I wanted to touch on position.

Speaker 4: The company is very well positioned to grow across multiple segments, including consumer, data centers, crypto mining, industrial, epi and in the long term, our big EV market. We are right now at a stage where we are seeing strong adoption and as illustrated in our presentation today, strong revenue growth.

The company is very well positioned to grow across multiple segments, including consumer Datacenters crypto mining industrial AP and in the long term.

The EV market.

We are right now at a stage, where we are seeing strong adoption.

As illustrated in our presentation to the strong revenue growth.

Speaker 4: Revenue Traction in just today, several segments, including consumer data centers, crypto and industrial applications.

Revenue traction and just to be several segments, including consumer data centers and industrial applications, a key proof of the strikes in the shipment of over 1 million units in the month of December .

Speaker 4: proof of the extraction being the shipment of over 1 million units in the month of December . Looking ahead, our strong balance will allow us to continue to invest in our growth engine across all aspects of the company.

Looking ahead, our strong balance sheet will allow us to continue to invest in our growth engine across all aspects of the company.

Speaker 4: With this strong foundation in place, our focus comes to execution, ensuring that we can support the growing demand and what we believe will be a broad market flexion point in the medium term. In addition to our existing revenue streams, we do expect to see initial revenue in the automotive segment in this time.

With a strong foundation in place are focused on the execution.

Shooting that we can support the growing demand in what we believe will be a broad market inflection point in the medium term.

In addition to our existing revenue streams, we do expect to see initial revenue and automotive segments in this timeframe.

Speaker 4: From near the company, we drive towards a long-term target model enabled the continued momentum across multiple segments, now including automobiles.

From there the company will drive towards our long term target model enabled by continued momentum across multiple segments, including automotive.

Speaker 4: Turning now to the next slide, where I'd like to reiterate our long-term operating model.

Turning now to the next slide where I would like to reiterate our long term operating model.

Speaker 4: We are in the process of building a high-grow cash-generative business. The company has multiple revenue streams, including government, product, cross-serve requirements and our FIBAT.

We are in the process of building a high growth cash generative business.

<unk> has multiple revenue streams, including government product across several segments and our AC battery.

Speaker 4: In the current year, we've continued to generate solid revenue from both licensing and government contracts. And this is being supplemented by significant growth in product revenue. As mentioned earlier, product revenue has grown 8,000 succession.

In the current year, we've continued to generate solid revenue for both licensing and government contracts and this is being supplemented by significant growth in product revenue as mentioned earlier product revenue has grown eight quarters in succession.

Speaker 4: and has become a much greater proportion of our overall revenue in the year, growing from 17% to around 50%.

And has become a much greater proportion of our overall revenue in the year growing from 17%.

3%.

Speaker 4: This growth has been driven across a broad range of per conversion applications, including fast chargers, adapters, gaming data centers, crypto main. We achieved annual product revenue growth, 200%, no, as fiscal year, and are targeting a continuation of this project to be moving forward.

This growth is being driven across a broad range of power conversion applications, including fast Chargers adapters gaming Datacenters Tryptamine, we achieved annual product revenue grew 200% last fiscal year and are targeting a continuation of this trajectory moving forward.

Speaker 4: From 2020 onwards, as we continue to ramp up with adoption revenue across our target segments, product will form over 90 per cent of the revenue. As of our current year, this growth coming from multiple segments and not simply consumers.

From 2023 onwards, as we continue to ramp up production revenue across our target segments product will form over 90% are already.

As with our current year this growth coming from multiple segments and not simply consumer.

Speaker 4: Also, most of the revenue will fall that contribute to the multi-signal growth in 2022.

Automotive revenue will further contribute to this multi segment goes from 2022.

This consistent rapid acceleration in our product revenue allows <unk> to target a five year annual CAGR in excess of 50%.

Speaker 4: This consistent rapid acceleration in a product revenue allows Kingan to target a five-year annual kegge in excess of 50%.

Speaker 4: From a margin perspective, a strong product portfolio, now including Gen 4 and Gen 5 parts, together with our manufacturing excellence, will translate our sales into a gross margin in the 40% range.

From a margin perspective, our strong product portfolio, including Gen. Four Gen. Five parts together with our manufacturing excellence will translate our sales and so gross margin in the 40% range.

Speaker 4: The company will continue as it is currently doing to invest to support all aspects of our core operations. This stable existing structure are learning us to translate gross margins into developing an operating margin that we believe will be an excess of 20%.

The company will continue as it is currently doing investor support all aspects of our core operations. This stable existing structure, allowing us to translate gross margins and to developing and operating margins that we believe will be in excess of 20%.

Including those with a few key highlights.

Speaker 4: Transform is a pioneer and leading provider of GAN for conversion debate.

Transform is a pioneer and leading provider of Gan power conversion devices.

Speaker 4: We have destructive technology to provide solutions across a number of significant growing markets.

We have disruptive technology to provide solutions across a number of significant drilling markets.

Speaker 4: We have established a strong network of blue chip partners, including KKR, Morelli, SES Global Weaver, Yes, God, I know.

We've established a strong network of Blue Chip partners, including KKR Morelli, Acs Global wafer Scala Nova.

Speaker 4: We are commercially ramping with strong production revenue growth, now growing for eight successive quarters. And I have a comprehensive product offering today that meets our customers' needs across a wide range of power levels and segments, all of which is underpinned by a strong balance sheet, the industry's strong IP portfolio and the very deep talenty team.

We're commercially ramping with strong production revenue growth no growing four eight successive quarters and have a comprehensive product offering that meets our customers needs across a wide range of power levels and segments.

All of which is underpinned by strong balance sheet, the industry's strongest IP portfolio and a very deep talented team.

Speaker 4: If concludes, I've prepared the feelings and remarks. We'd now like to open the call to any questions. Operator, please proceed with managing the Q&A portion of the call.

This concludes our prepared remarks.

<unk> remarks, and we'd now like to open the call to any questions. Operator. Please proceed with managing the Q&A portion of the call.

Thank you and as a reminder, I would like to let you know.

Speaker 1: Thank you. And as a reminder, I would like to let you know that it is far one to ask a question. Then we'll pause for a moment. I want to talk to a compiled accumulator roster.

It is star one to ask a question I'll pause for a moment everyone.

While the Q&A roster.

Speaker 1: And we will take our first question from David William. Please go ahead.

And we will take our first question from David William Please.

Please go ahead.

Speaker 5: Hey, gentlemen, thanks so much for the question. It can grasp on the continued execution here.

Hey, gentlemen, thanks, so much for the question and congrats on the continued execution here.

Speaker 5: Just maybe a little bit of color. So you shift the 1 million in December and if we kind of think about that cadence going forward, is this kind of a level set that we should think about expanding on as we go through maybe from monthly basis to this flow, maybe when we draw a state line, maybe a million this quarter and then continuing, or do you think there'll be some set down or maybe just any color around that project would be helpful.

Just maybe maybe a little sorry, yes, a little bit of color. So you shipped the $1 million in December and as we kind of think about that that cadence going forward is this kind of a level set that we should think about expanding honest go through.

Maybe from a monthly basis does this flow maybe can we draw a straight line, maybe $1 million. This quarter and then continuing or do you think there'll be some step out or maybe just any color around that trajectory would be helpful.

Speaker 3: Yeah, thank you. It's an incentive that, yeah, the 1 million, like we said, was a key benchmark as a reminder of the capacity efforts that we have put in a large, one of the large orders. There is some seasonality definitely in the adapter business. So it's not quite exactly 1 million, 1 million, and we also focus on our mix of higher power to lower power. That's all various segments. So.

Yes, thank you intend to do that.

You had the 1 million like we said it was a key benchmark as a.

Under of the capacity efforts that we have put in a large one of the large orders that has some seasonality definitely in the Dr. Business. So it's not quite exactly 1 million $1 million and we also focus on our mix of higher power to lower power.

All of our various segments so.

Speaker 3: It's not exactly a month to month and usually the December numbers are in this adaptors were good for us.

Yes, it is not exactly a month to month and usually the December .

Numbers in this adapters that are good for us.

Speaker 3: But the core, the fundamental point there is now we have established capacity including multiple sources of packaging that allows us to do more than that when required in future. But it won't be exactly to think like that a million million in that terms. We have various mix of products, package products, type products, higher power products. So it really depends on the customer mix in any given goal.

But the core the fundamental point there is now we have established capacity, including multiple sources of packaging that allows us to do.

More than that weren't required in future, but it won't be exactly to things like that.

<unk> million dollars in that comes via various mix of products packaged produce di products Hyatt power products. So it really depends on the customer mix in any given quarter.

Speaker 5: Okay, very fair. Thank you. And in any way to kind of think about maybe the mix that you did shift this quarter, just kind of thinking about the wide power range, a lot of units. How did that mix shake out? Is there a way maybe to quantify the magnitude of lower, maybe the 45 versus maybe up or into that 300 bought?

Okay very fair. Thank you.

And then any way to kind of think about maybe the mix that you did ship this quarter, just kind of thinking about it as wide power range a lot of units how does that mix shake out is there a way maybe to quantify the magnitude of lower but because of <unk> 45 versus maybe the upper end of that 300 bots.

Speaker 3: In the adapter space itself, it was more focused on 65 watts was the high runner there. And in the adapter space, and as you look at the complete different lower power adapters versus higher power, we had a good, of course, unit size, it is very different because a 4 kilowatt, two to four seven is a different part than a 65 watt adapter, a PQFN. But in that adapter space, it was definitely the 65 watts, which was the...

In India in the adapter space itself. It was more focused on 65 watts water.

What was the Hyatt <unk> and in the Dr space and as you look at the complete differently lower power adapters versus higher power, we had a good.

Those units why that is very different because.

Kilowatt tier 247 is a different partner.

65 watt adaptor of <unk>, but in that adapter space. It was definitely the 65 watts, which wasn't a frontrunner.

Speaker 5: Fantastic. And, Dermott, you before have kind of talked about the differential in your packaging and what it allows you to do in the, in the higher power. Can you maybe step us through that again and maybe just so we all have a better understanding of the importance of the packaging and why that matters?

Okay Fantastic and then you before have kind of talked about the differential in your packaging.

And what it allows you to do in the especially in the higher power can you maybe step us through that again and maybe just so we all have a better understanding of the importance of the packaging.

By that matters.

Speaker 3: Sure. So the key to high power right and this is physics that nobody can change is that heat needs to be taken out right from the die which is gann or whatever semiconductor may be to the package through the heatsink to the outside world that is just basic physics.

Sure. So the key to higher power right and this is physics that nobody can change is that heat needs to be taken out right.

The di which is gan or whatever semiconductor maybe to the package through the heating to the outside world that to just basic physics that cannot be violated so traditionally the hydropower folks have liked totally robust packages, which nicely into phase III heat sink.

Speaker 3: that cannot be violated. So traditionally, the higher power folks have like a thermally robust packages which nicely interface to a HEAT sync or have a good thermal resistance, contribute to good thermal resistance for performance, like the TO packages, TO247, in particular, which has been an industry for owners. Silicon carbide uses it extensively, again uses it.

Good terminal resistance contribute to good thermal resistance performance like the teal packages still to four seven in particular, which has been an industry four <unk> silicon carbide users use it extensively again uses it but what happens in those steel packages is that.

Speaker 3: But what happens in those TO packages is

Speaker 3: And there is the input voltage swings that happen in the application. And it happens in any application, but especially in the TO packages combined with GAN, or the higher power packages, and our transform GAN solution with the integrated approach of the Silicon Fat and the GAN together bringing out the best of both worlds, is really immune to such input voltage fluctuations. Where is the...

David.

As input voltage swings that happen in the application and it happens in any application, but especially in the tier packages combined of it again.

The higher power packages and other transform scan solution with the integrated.

Approach of the Silicon fed and again together, bringing out the best of both worlds is really immune to such input voltage fluctuation sweaters.

Other approach of achieving normally off which is this <unk> approach the input of the device in that is weaker and more susceptible to those signals. So what they have to do is put it in different packages and which means for the same followed you may need to parallel to packages, where we could have done it or we do it with one package for example.

Speaker 3: other approach of achieving normally off, which is this e-mode approach, the input of the device in that is weaker and more susceptible to those signals. So what they have to do is put it in different packages and which means for the same power, you may need to parallel two packages where we could have done it or we do it with one package, for example. So it's the crux of the matter is

It's the crux of the matter is is the fundamental weakness of the.

Speaker 3: is the fundamental weakness of the E-mode beta-egangate that manifests itself in this fashion. And there will be a, in future things will improve, but that is the crux of the matter, which is to which we have exploited.

E Mail <unk> Gan gate.

Manifests itself in this fashion and there'll be a M&A future things will improve but that is the crux of the matter, which is which we have exploited gallium nitride silicon carbide also for that matter is widely offered in tier 247, gallium nitride being our gallium nitride.

Speaker 3: gallium nitride silicon carbide also for that matter is widely offered in a 2 to 4 7 gallium nitride being our gallium

Speaker 5: Okay, fantastic. Certainly appreciate color, they're very helpful. And then maybe one last thing if I can, maybe if I can, if you kind of think about the opportunity that had a view and the limited resources, how do you think about your investment's going forward, maybe over the next six to 12 months, and where do you see the greatest need for investment? And I guess I do get to a point, maybe a tipping point where you begin to maybe need to focus more on the higher quality or the higher value products versus the higher volume, or do you think you have enough capacity and resources to run those kind of thermal painously, just kind of given the strength of the design lens that you've had over the last several quarters.

Okay.

Certainly appreciate the color there very helpful. And then maybe one last one if I can maybe for Cameron if you kind of think about the opportunities ahead of us and the limited resources.

Do you think about your investments going forward, maybe over the next six to 12 months.

Where do you see the greatest need for investment and I guess do you get to a point, maybe a tipping point, where you begin to maybe need to focus more on the higher.

Quality of the higher value products versus the higher volume or do you think you have enough capacity and resources to run those kind of simultaneously just kind of given the strength of the design wins that you've had over the last several quarters.

Speaker 4: We can we certainly have David, you know, a very good solid balance sheet now, and that gives us the opportunity to invest, invest both in in

We can certainly house, David very good solid balance sheet.

Gives us the opportunity to invest the best Boston and Capex, Mr. As I've mentioned to bring up the capacity to enable to enable higher volume, but also investing in personnel.

Speaker 4: As Pimit mentioned, to bring up the capacity, it's enabled, enabled higher volume. And we're also investing in personnel.

Speaker 4: There's across different aspects of the company whether that's sales and applications we have invested in.

Across different aspects of the company for that series and applications, we have invested in and developing our manufacturing team in growing that and we will continue to do that David I think the great thing about the company as the strong base that we've established and the strength that we've got across a number of different parts of the company and its building on it.

Speaker 4: in developing our manufacturing team and growing that. And we'll continue to do that, David. I think the great thing about the company is that the strong base that we've established and the strength that we've got across a number of different parts of the company, and it's building on it.

Speaker 4: rather than really investing in one area more than the other. So a gradual growth.

Rather than than really investing in one area more than the all of it so a gradual growth.

Great. Thanks, so much and best of luck on the quarter, but congrats on the solid quarter.

Speaker 5: Great, thanks a lot and best of luck on the border, but congrats on the solid border.

Thank you.

Speaker 1: Then our next question will come from Ananda Verua with Luke Capital. Please go ahead.

And our next question will come from Ananda Baruah with loop capital.

Please go ahead.

Speaker 6: Yeah, good afternoon guys. Thanks for taking the questions. Then yeah, I think that's on strong revenue performance. Really nice to see a couple for me if I could. On fast charging and the adapter revenue that you guys are driving, could you describe to us the market share gain?

Yes. Good afternoon, guys. Thanks for taking the questions and congrats on the strong revenue performance really nice to see.

A couple for me if I could.

Fast charge on the fast charging.

<unk> revenue that you guys are driving to you describe to us the market share gain.

Speaker 6: Dynamics, you know, the premier, I think you talked in your paper mark.

Dynamics.

I think you thought you would.

My remarks.

Speaker 6: that the ease of interfacing and the need for their external driver, you know, place a role in your design end.

These are interfacing and the need for external driver.

Plays a role in your design in.

Speaker 6: you know, is that one of the main drivers of the share gain? Is it really happening at the design and level? Is there anything addition to that? Just context around the share gain dynamics would be great. And then I have a quick follow up.

Is that what are the main drivers of the share gain is it really happening at the <unk> level.

Is there anything in addition to that just context around the share gain dynamics would be great and then I had a quick follow up.

Yes.

Speaker 3: 8.2 key level one is the one is that right? So our parts we've been saying for a while, our parts are easier to design in because they seem less interface with outside world can use. We don't need external drivers. We are already using integrated drivers that come with the controllers. So what is this like to write? Now this is like to more solutions partners and solutions with transform scan. External solution partner companies like diodes and Salana, as well as our solutions.

Two key level. One is the one is that right. So our partners, we've been saying for a ride our parts side are easier to designing because they seamlessly interface with outside world can use we don't need external drivers to be or already using integrated drivers that come to the controllers.

So what does this lead to right now this has led to more solutions partners and solutions with transform scan <unk>.

Final solution partner companies like diodes in Savannah, as well as our solutions.

Speaker 3: others like that we have not announced. So this ecosystem has so basically helped amplification of our resources, our market footprint to create this penetration.

Others like that we have not announced so this ecosystem has basically helped amplification of.

Our resources, our market footprint to create create this penetration and second actually other performance of the Gannett Seth our fundamental game device to the best of our knowledge in head and Gan devices still higher performance because of superior switching characteristics that our basic device design our materials capability.

Speaker 3: And second, actually our performance of the GAN itself, our fundamental GAN device to the best of our knowledge, in hidden GAN devices still higher performance because of superior switching characteristics that our basic device design, our materials capability, a few materials capability and device design enables. So both those reason ease of use and

As you can see those capability and device design enables so both those reasons ease of use and.

Higher performance.

Speaker 6: performance makes a lot of sense too. Yeah, that's helpful thanks. And another one to that end, are you guys are these SoulSource agreements that when you win a design in, is it entirely SoulSource on Transform GAN?

The performance makes a lot of sense to yeah. That's helpful. Thanks Ed.

Another one to that and are you guys.

Sole source agreement, but when you win a design and is it entirely sole source on transform Gan.

Speaker 3: They come in various mixes and flavors. Typically, what we find is the larger companies may require multiple sources, at least on paper.

They come in various mixes in flavors typically what we find is the larger companies may require multiple sources.

At least on paper.

Speaker 3: Some do use in this area multiple sources some basically effectively may end up becoming source source Whether with somebody else's can frankly or our can but yeah, that it is important to have at least on paper Multiple sources agreement that said some of the

Some do use in this area multiple sources, some basically effectively ended up becoming sole source, whether it's somebody else's Gan frankly, or allergan, but yes. It is important to have at least on paper of multiple sources agreements that said some of the.

Speaker 3: Folks who go especially when we go with a strong partner solution, right? Complete solution. We have got some some bins that are so source while others especially the larger players will always want

Folks who go, especially when we Goldman with a strong partner solution right complete solution. We have got some some bids that are sole sourced.

Others, especially the larger players will always want multiple sources.

Speaker 6: I guess, and this makes sense. And then, and I guess once you get in, even through a multi-sourced situation, if you're again, half-strong of a performance, it's easier to use, et cetera, et cetera, you can gain share once you're inside as well. That makes a lot of sense, also.

I guess and this makes sense and then.

Yes, like you get and even to a multi sort of situations.

Here again had stronger performance, it's easier to use.

Sacha et cetera, you can gain share once you're inside as well that makes a lot of sense also curt.

Speaker 3: Correcting this before. Like I said before, this is a very large market. I liken it many times to the GAN LED market that was booming in the late 90s and the 2000s, where multiple good companies and solutions were required to sustain a very large market worldwide.

On this call like I've said before this is a very large market I liken. It many times to the Gannett markets that was blooming in the late nineties into two thousands where multiple good companies and solutions, we're required to sustain a very large.

Market worldwide.

Speaker 6: that's super helpful. And it was either you or Mario who also said,

That's super helpful.

It was either you or Mario who also setup.

Speaker 6: That's the main contribution I think the term broadly was used and talked about cross crypto mining gaming.

The demand contribution I think I think the term broadly with you talked about cross crypto mining gaming.

Speaker 6: I think it was across crypto mining game. I don't know if Data Center was mentioned, but I guess the question was, are you seeing momentum in crypto mining? I think last quarter, you had mentioned the gaming.

I think it was across Cook Dominy gained analog data center was mentioned, but I guess the question was.

Are you seeing momentum.

And in Crypto mining I think I think last quarter, you had mentioned the gaming.

Speaker 6: had been strong and strong as my term, you may not have said exactly like that, but was robust and nicely contributed.

Had been strong and strong as Mike you May have said it exactly like that.

Robust device you can share with you.

Speaker 6: I got the sense that the crypto was a little stable and data center was a little on the calm. But I just wanted to ask about that because the counter was made that the demand, the strength is quarter, you know, which kind of was more broad. And I think crypto was also mentioned. But I guess any context around what you saw the last time the days in crypto gaming and the data center. And I guess to that end, any context about, you know, what you're expecting there is you're going to do the year. Thanks a lot.

I got the sense that the crypto was a little stable data center was a little on the call.

So I just wanted to ask about that because the comment was made that the demand the strength this quarter.

And it was more broad and I think crypto crypto as also mentioned, but I guess any context around what you saw in the last 90 days and crypto gaming and data center and I guess I'd add any context about what youre expecting there as we go through the year. Thanks a lot.

Speaker 3: Yeah, in the work we can see in the recently completed quarter of the higher power products, the crypto was the leading share of our higher power products in the in the last corner data center.

What we can see in the recently completed quarter off the higher power products. The critical was the.

The leading share of our higher powered products in the in the last quarter data Center.

Speaker 3: key is steady and we expect especially like we have said in past I didn't explicitly say this time but the new regulations coming out in the European regulations especially in the data center requiring titanium class power supplies. By January 2023 we expect to see an uptick in the data center of this higher power apps by second half of this year or later looking for a

T is steady and we expect especially like we have said in phosphate explicitly say December the new regulations coming out.

European regulations, especially in the data center, requiring titanium plasma power supplies by January 2023, we expect to see an uptick in the data center.

Our higher power apps.

Second half of this year or later Q4 of this year.

Okay.

Speaker 6: Got it. Got it. And gave me I just kind of remained. You made his robust right way to say it sounds like things are going well there. All right. I was steady. That's the most odd.

Got it got it and gave me I guess kind of remains as robust the right way to say it sounds like things are going well there correct our steady customers.

Remaining robust.

Very helpful. And then just one quick clarification from me at the very end.

Speaker 6: very helpful. And then just one quick clarification for me. At the very end, when you were going through the long-term model, was it, did you say initial auto revs in 2023?

When you were going through.

The long term model was it.

Did you say initial auto revs in 2023.

Speaker 4: Yes, that's right, and I know we're looking at late 22 for initial automotive

Yes, that's right and I know, we're looking at late 'twenty two for initial automotive bedding.

Speaker 6: Awesome. Thanks, Ken, for the clarification. Great. Thank you guys.

Yes.

Awesome. Thanks for the clarification, great. Thank you guys.

Speaker 1: And our next question will come from Richard Chanin. Please go ahead.

And our next question will come from Richard Shannon.

Please go ahead.

Speaker 5: Well, thanks, guys, for taking my question. You know, I'll follow up on the topic of applications for your product revenues here. Maybe ask another way here. How much of your product drivers or maybe your adapter revenues are coming from a clothing coat, a pile of power stuff, and then they're watching above. You know, where your characterizer is or client file that one.

Well, thanks, guys for taking my question.

Maybe I'll follow up on the topic of kind of applications for your product revenues here, maybe asked another way here.

How much of how much of your product revenues or maybe adapter revenue are coming from quote unquote.

High power power stuff into watts, and above what you characterize or quantify that for us.

In the in the adapter portion.

Speaker 3: In the adapter portion, which is the like in the last quarter majority of the revenue in the adapter portion was centered around 65 watts. That said, the

Richard.

In the last quarter, a majority of the revenue in the productive portion was centered around a 65 watts.

That said the trend is to now.

Speaker 3: get to 100 watts, 140 watts is another important slot where our partners, the diodes and us have solution together and then also moving into 200 to 250 watts.

Get to 100 blocks 140 versus another.

Horton slot.

Our partners to diodes, and us have solution together and then also moving into 200 to 250 watts.

Speaker 3: But last quarter shipments, the dominant application was 65 volts.

But last quarter shipments.

Dominant application was $65.

Okay.

Speaker 5: Okay, that is helpful. Quick question on some numbers here. Gross margins in the December quarter, if I calculate right around 16% or so, it's a little bit lower than the last quarter without a big licensing chunk in there, two quarters, about 21. I think I heard you say some increased cost investments of capacity. I don't know if there's any mix or yield dynamics in there, but you can help us understand by that what downwards and kind of what you expect going forward this year.

Okay that is helpful. A quick question on some numbers here gross margins in the December quarter.

If I calculate right around 16% or so with a little bit lower than the last quarter without a big licensing chunk in there two quarters about 'twenty one.

Think I heard you say some increased cost investments in capacity I don't know, if theres any mix or yield dynamics in there, but if you could help us understand why that went downwards and kind of what you expect going forward this year.

Speaker 4: Sure, sure. I think suddenly, you know, life thing is one of the key things that retro does you highlight. I mean, it's essentially 100% margin and we did.

Sure sure.

Licensing is one of the key things that Richard as you highlight minister essentially 100% margin and we did invest.

Speaker 4: invest in the team. We added several headcounts to support the growth, not just in Galita, but also in Reyes' cellataean. I think near-term, we all see our margins steadily increase, a combination of volume continued focus and improvement in the session season and obviously increased fixed cost component as well. And the long-term model remains the same as we target up 40% and it grows margin in the longer term.

Invest in the team we added several headcount to support the growth not just in <unk>, but also <unk> facility I think Nick.

Near term I think that we will see.

<unk> kind of steadily increase a combination of volume continued focus on improvement in efficiencies and obviously increased fixed cost component as well.

On the long term model remains the same as we as we talked about 40% gross gross margin in the longer term.

Speaker 7: Right, right. Okay. Perfect. Last question. I'll jump out of the line here on the automotive space here. You've talked about In the kind of initial revenues in automotive in 2023

Alright, great. Okay. Perfect last question I'll jump out of line here on the automotive space here, you've talked about and kind.

Initial revenues in automotive in 2023.

Speaker 7: I didn't hear you say anything about having any design wins with an automotive OEM. I know you've got relationships with two ones like Morelli as an example, but I'm assuming you don't have any wins with OEMs yet. In order to hit the time frame of auto revenues in 23, one of you has to have a design win in place. We've able to announce that right away. And then how many of these wins do you expect to maybe have this year?

I didn't hear you say anything about having have any design wins with an automotive OEM I know you've got relationships with tier ones like really is an example of that.

I'm, assuming you don't have any wins with Oems yet to in order to hit the time frame of auto revenues in 2003. When do you have to have a design win in place we've been able to announce that right away and then how many of these do you expect to maybe have this year.

Speaker 3: It's this kind of end of the year, early 2023 because when we say, towards the end of 2023 or to Modi revenue, we mean production revenue, so that would be for...

It kind of.

End of the year early 2023, because when you say towards the end of 2023 automotive revenue.

And our predictions revenue so that would be for.

Speaker 3: you know this automotive it's a it's a way the cycles water Chris also our revenue will be one or two quarters ahead of our customers revenue and that may be going to an OEM so that it will proceed a car model by as much as six months right when we have to ship our product that's how the automotive supply chain is typically structured.

This automotive itself.

<unk> cycled Swarup. It's also our revenue will be one or two quarters ahead of our customers' revenue and that may be going to an OEM.

We'll proceed.

Our car model by as much.

At six months cycling vehicles ship, our product Thats, how the automotive supply chain.

Ah is typically structured so.

Speaker 3: this would be basically for 2024 models.

This would be basically for 2024 models so to speak.

Speaker 3: and we would expect in this case, say end of the year or early 2023 to confirm, obviously the design in process is moving along at every node, but that's what we would expect in that time.

We would expect in this case the end of the year or early 2023 to confirm obviously the design in process is moving along at every node.

But that's what we would expect in that timeframe now independent of transform transform licensed technology.

Speaker 3: Now, independent of transform, which transforms licensed technology, our good partner in Expedia, they are independently moving the automotive EV their design in, in which we will supply the vapors and power vapors and AP vapors. So that could be another source of revenue, automotive revenue for us. That may happen ahead of that timeframe.

Our good partner in Expedia they are independently.

Moving automotive EV day, designing in which there was a supply of wafers.

Fab four has an NPV for so that would be another source of.

Revenue automotive revenue for us that may happen ahead of that timeframe.

Okay perfect.

Perfect. Thanks for the detailed answer can be permanent.

Speaker 1: Our next question will come from Michael Manny. Please go ahead.

Our next question will come from Michael Nano.

Please go ahead.

Speaker 5: Hi, this is Michael on For Craig. Thanks for letting me ask a couple of questions and congrats on the positive momentum you're seeing. My first question is on the urnubles and alternative energy markets. I believe you mentioned that some of these opportunities have pulled in to more of the intermediate and near term. Could you talk about what changed there for to allow that to happen if anything? And would these be material contributors in 2022 or is this more of a 2023 and beyond driver?

Hi, This is Michael on for Craig. Thanks for letting me ask a couple of questions and congrats on the positive momentum you're seeing.

My first question is on the renewables and alternate alternative energy markets. I believe you mentioned that some of these opportunities and pulled into more of the intermediate and near term could you talk about what changed or for to allow that to happen if anything and would these be material contributors in 2022 or is this more of a 2023 and beyond driver.

Speaker 3: Yes, so thank you. So, first of all, our traction in the high power, the 1 to 4 kilowatt segment, 1 to 5 kilowatt.

Yes. So thank you so first of all our traction in the high powered the one to four kilowatt segment one to five kilowatts.

Speaker 3: with crypto, data centers, gaming. This has allowed the market also to recognize the potential of transform again. Now hundreds of thousands of units have been ramped. Three performance has been established.

<unk> data centers gaming. This has allowed the market also to recognize the potential of transform again hundreds of thousands of units of <unk> performance has been established so impact that and our continued designing efforts.

Speaker 3: So, impart that and our continued designing efforts.

Speaker 3: has allowed us to do that in some, for example, some inverter opportunities or energy storage, UPS, those kind of applications. So, yeah, we do see in 2022 and it was, it was going to be very expecting that was in our planning and the good thing is it's getting realized now. So, we do see that happening in 2021.

Has allowed us to do that in some for example, some inventory opportunities or energy storage UBS those kind of application. So yeah. We do see in 2022 and it was it was going to be were expecting that was in our planning and the good thing is it's getting realized now so b to C C.

See that happening.

In 2022.

Speaker 5: Great, thank you. My next question is on your visibility. So it's nice to see the growing number of design wins. And while acknowledging it's early, could you characterize the level of visibility you have into the second half of this calendar year with either your high volume charger adapter ramps? I think you mentioned we'd see some upticks.

Great. Thank you. My next question is on your visibility. So it's nice to see the growing number of design wins and while acknowledging it's early could you characterize the level of visibility you have into the second half of this calendar year with either your high volume charge, our Doctor ramps I think you mentioned.

You'd see some uptick.

Speaker 5: in your higher power offerings like Data Center and you talked about renewable energies too, but in general, what else could you elaborate on the rest of your visibility? And to what extent could some of these new design winds that have you managed to secure start to convert into production?

In your higher power offerings like data center.

Talked about renewable energies to butt in.

In general what else.

Could you elaborate on the rest of our visibility.

Sure.

To what extent could some of these new design wins.

Let's just start to convert into production.

Speaker 3: Yeah, no, we do expect new design, we both lower power, stay lower power area and higher power area to start, not necessarily every single one of them, but a lot of them we expect to convert to design ends. And our goal will be to keep growing product revenue quarter over quarter, right? That's the key. And the demand remains very strong. So we are very excited by that. It will also be managing together our supply chains.

Yes, we do expect as newer design wins, both of lower power stay lower power and higher power at Adi to start not necessarily every single one of them but.

A lot of them do you expect to.

Convert to design ins and our goal will be to keep growing product revenue.

After over quarter rate that's.

Thats the key and the demand remains very strong. So we are very excited by that it will also be managing together other supply chains.

Speaker 3: worldwide and increasing our capacity. That will complete the picture, but yeah, we are very excited. The demand remains extremely strong, and we do expect a lot of those designs to convert, and we do expect our product revenues to keep growing quarter over quarter.

Worldwide and increasing overcapacity that will complete the picture, but we are very excited the demand remains extremely strong and we do expect a lot of those designs to convert and we do expect our product revenue to keep growing quarter over quarter.

Thank you very much.

Thank you.

Speaker 1: Our next question will come from Orrin Hirschman with AIG Agents. For one minute guys. Please go ahead. Please. Hi, how are you, congratulations.

Our next question will come from Orin Hirschman with AIG and some preliminary.

Please go ahead.

Hi, how are you congratulations on the progress.

Speaker 8: In terms of your, again, the spin-as in different ways, but maybe this is a slightly different way of asking as well. In terms of the design within the spin-as,

Thank you.

Okay.

Yes.

In terms of your again in a.

Different ways, but maybe at a slightly different way of asking it as well in terms of the design wins.

Speaker 8: Of course, the chargers, as we go up the power scale, are you seeing a higher wind rate, but the way higher wind rate, as we go to higher power on the chargers.

Of course, the Chargers as we go up the power scale.

A higher win rate.

A higher win rate as we go to higher power.

That charges.

Okay.

Speaker 3: Like I said, the 65 watts which is the highest volume in the market today, that was our extension, that was also our highest when we saw newer wins of the newer wins we saw.

Like I said.

65 watts, which is the highest volume in the market today that was powered by.

By extension that was also our highest when we saw newer wins of the newer vintages. So.

Speaker 3: We did see adoption in the higher power. So those are the three we highlighted. It doesn't mean we didn't get the 65, but yeah, you're you're you're right. We are seeing in the 142 50 watts. We are seeing some nice nice wins as a market. The base lot of the market is at 65 watts, but slowly it may move to higher power levels, right? In 1941 40 and even higher than.

Deep sea adoption in the hydropower. So those are the three we highlighted it doesn't mean, we didn't get to 65, but yes.

You are right we are seeing in the $101 40, and $2 50 watts, we have seen some nice.

Nice swings as the market the base a lot of the market is at 65 watts, but slowly it may move to higher power levels say 90 to $101 40.

Even higher than 200.

Speaker 8: Okay, and in terms of realizing this growth margin goal, it's just a little bit as to what needs to happen. How important is that it's just the absorption aspect of it, in terms of if nothing else changed. You know, with that, we transcribe a good piece of the growth margin and gains to get the risk of target.

Okay.

Realizing gross margin goal.

Okay.

At.

What needs to happen, how important and how important that is.

Aspect of it.

Nothing nothing else changed.

With that we drive a good piece of.

Gross margin gains to get price with target.

Speaker 3: The absorption of our fixed costs and the capacities, etc., has already been put in. That is one of the key drivers of the cross-mashing. And I let Cameron elaborate on that. I think that's one of the several. Or I think...

Indeed, the absorption of our fixed costs in the Quebec capacities et cetera, we have already put in that that is one of the key drivers for gross margin and then I'll, let Kevin elaborate on that yes, yes, I think.

One of the central Oregon.

<unk>.

Speaker 4: volume will help obviously in terms of price competitiveness in terms of yield and Can you to focus on efficiencies in our product offerings? So I don't think there's any one factor. I think it's uh

Volume will help obviously in terms of price competitiveness in terms of yield.

Continuing to focus on efficiencies in our product offerings. So I don't think there's any one factor I think.

Speaker 4: a few, but certainly the more revenue we have, the less impactful fixed cost absorption is that that's certainly true as we continue to grow.

A few but certainly.

The more revenue we have the less impactful and fixed cost absorption is certainly true as we as we continue to grow.

Speaker 8: And last question for me would be just in terms of the pricing delta on the handset offering from higher base level towards the higher power. What's that delta like? It's been a meaningful delta where the highest one is 20%, 30% higher in terms of the AFP. That should be knew that as well.

And that is that at all.

Quick last question for me just in terms of the.

Pricing Delta progress on there.

On the handset offering some higher.

The base level of course the Hyatt.

Power.

That delta like is it a meaningful delta of weird.

Hyatt the highest one through 2030% higher in terms of the AFP that should we view that as well.

Speaker 3: The ASP is actually arranged on the doctor side. It's a kind of under under under $1 for 65 watts, you know, kind of the 70, 80 cent, 90 cent regimes. 45 watts would be bit lower than that. On the higher power side, on the crypto mining, the data center, gaming, the, you three kilowatt part, you're looking at kind of a, you know, how, now, $4, $4, $5, those kind of ASPs, right? And as you go to our highest power part, did you see that ...

The ASP is actually the range on the doctor side to kind of under $1 465 lakhs kind of.

70 80.

19th century, deems fortify what would be a bit lower than that on the higher power side on the crypto mining the data center gaming.

The three kilowatt back Youre looking at kind of a.

Now for four or $5 dose kind of asps.

And as you go to our highest power part.

Speaker 3: for energy that the 5 to 10 kilowatt part you are looking at.

For energy.

The five to 10 kilowatt product Youre looking at.

Speaker 3: $78 dollars those kind of ASPs. So it's a 10x because our parts of power capability or the current carrying capability of the parts is indeed 10x different so that's reflected in the ASPs.

Seven $8 dose kind of ASP. So, it's our clinics because our parts of power capability or the current gaining capability of the parts is indeed.

That makes a difference so thats reflected in the Asps.

Okay, great. Thank you very much.

Speaker 1: And with you all for their questions, I would like to turn the call back to Mario read those for closing remarks.

And with no further questions I would like to turn the call back to <unk> for closing remarks.

Speaker 2: Thank you, Savannah. I want to thank everybody again for joining us on today's call. I'm looking forward to reporting on our continued progress and developments over the coming year. Operator, you may not.

Thank you for I want to thank everybody again for joining us on todays call.

When we look forward to reporting on our continued progress on developments over the coming year.

Operator, you may now disconnect the call.

Speaker 9: In this concludes today's conference, thank you for your participation and you may now disconnect. Have a nice day.

And this concludes today's conference. Thank you for your participation and you may now disconnect.

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Yes.

Yes.

Okay.

Okay.

Okay.

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