Q1 2023 Navitas Semiconductor Corporation Earnings Call
[music].
Good afternoon, My name is <unk> and I'll be your conference operator today.
At this time I'd like to welcome everyone to the Navios semiconductor first quarter 2023 earnings conference call.
All lines have been placed on mute to prevent any background noise.
After the Speakers' remarks, there will be a question and answer session.
We would like to ask a question. During this time simply press star followed by the number one on your telephone keypad. She would like to withdraw your question again press the star one.
Stephen Oliver Investor Relations you May begin your conference.
Good afternoon, everyone.
Steven I'll have our vice president of corporate marketing and Investor Relations. Thank you for joining <unk> Semiconductor's first quarter 2023 results conference call.
I'm joined today by Gene Sheridan.
Women, President CEO , and co founder and Ron Shelton, our CFO and treasurer.
A replay of this webcast will be available on our website approximately one hour. Following this conference call.
The recorded webcast will be available for approximately 30 days following the call.
Additional information related to our business is also posted on the Investor Relations section of our website.
Our earnings release includes non-GAAP financial measures reconciliations of these non-GAAP financial measures with the most directly comparable GAAP measures are included in our first quarter earnings release and also posted on our website in the Investor Relations section.
In this conference call, we will make forward looking statements about future events or about the future financial performance and other tests, including acquisitions.
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Or we believe or similar terms.
We wish to caution you that such forward looking statements are subject to risks and uncertainties that could cause actual events or results to differ materially from expectations expressed in our forward looking statements.
Important factors that could affect <unk> business, including factors that could cause actual results to differ from our forward looking statements are described.
The release.
Please also refer to the risk factors section in our most recent 10-K and 10-Qs.
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<unk> assumes no obligation to update forward looking statements to reflect actual results changed assumptions or other events that may occur except as required by law.
No.
Over to <unk>, Chairman and CEO .
Thanks, Steve I'm very pleased with our Q1 results as we exceeded our guidance for all financial metrics and experienced solid growth in key markets, including electric vehicle solar energy storage and appliance industrial with a market recovery started in our mobile business.
In the past 12 months, we completed three strategic transactions all three are progressing and integrating very well with <unk>, we will be sampling our gan on silicon carbide optimized high frequency digital isolator by the end of this year with revenues to ramp late next year, adding up to $4 per system, when combining with Gan on silicon carbide.
Electric vehicles solar energy storage and appliance and industrial applications.
With elevation, we've just launched our next generation platform called gains, hence control and in total we already have over 50 customer projects in development and have shipped a cumulative one main units into mobile and consumer customers.
Again since control family will be expanding to address the appliance and industrial customers as well as data center customers over time.
Jonathan is our largest acquisition to date and positions in Opex cost as the only next generation pure play power semiconductor company.
I'm excited to announce that nearly the entire Genesis team is relocating to our new headquarters in southern California and is integrated very nicely across all key functions in the company, especially taking advantage of an albatross global sales FTE and system design centers driving over 100, new opportunities since the acquisition across all of our target markets.
Let me now update on our product and business development progress in each of our key markets.
An electric vehicle, which includes onboard charging DC to DC converters traction control and Thats roadside Chargers across both Gan on Silicon carbide, we have strong momentum in shipments backlogs in pipeline with over 25 customer projects, either shifting with silicon carbide or in development with Gan on Silicon carbide and the total revenue pipeline of over $300 million.
In particular, our prior announcement for our joint system design Center with Gili.
Largest EDI supplier globally last year has already delivered exciting results with our new silicon carbide onboard charging design that will generate an additional $15 million to $20 million in revenue next year.
We are still on track for Gan based <unk> in production in 2025.
Our EV system design Center now has five system designs and development working closely with our top customers utilizing a combination of Gan on silicon carbide.
Okay.
In solar and energy storage, we have strong momentum in shipments backlog and pipeline with over 35 customers in production or in development and the total revenue pipeline of over $150 million.
We have development projects with the majority of the top 10 solar players globally with many shipping now with silicon carbide and Gan shipments into the Florida market on track to ramp next year.
In home appliance and industrial we have over 45 customers in production or development in our revenue pipeline of over $115 million fueled by strong government funding and regulations in the U S Europe and other regions driving clean energy upgrades to homes and factories.
Last week at <unk>, a major power electronics Tradeshow in Europe , we introduced our first silicon carbide power module called the setback.
Strategic announcement is the first of many has now entered the high power Silicon carbide module market, which is a significant percentage of the entire silicon carbide market.
The six pack will be a key package technology to expand our silicon carbide business in the industrial markets in the near term.
In data centers, we are well positioned to address the accelerating power requirements being driven by AI Iot and data in general.
We continue sampling our new high power again, Ics, which we launched to the market in Q4 and it increased our customer development projects 15, representing a revenue pipeline of over $60 million.
Our design centers developing six system designs that are supporting and accelerating these customer revenues, which are on track to ramp late this year and next.
Also at PCA and last week, we announced our Gen. Five silicon carbide, NPS diodes, which are a perfect fit for data center power supplies and a great complement to our new Gan ice's, adding appreciably to the total value and dollar content, we expect to deliver to all of our data center customers.
Finally in our mobile business, we see the beginning of a market recovery with 20, New mobile Chargers launched in Q1 and strong bookings going into Q2.
These launches include the latest Xiaomi 13 pro and ultra flagship phone inbox designs and Lenovo sneak book desktop laptop charger, which has an amazing profile of only $12 eight millimeters.
In mobile we have over 150 customer projects in development with our revenue pipeline of over $100 million.
In summary, I'm very pleased with our progress across acquisition product launches customer developments and market expansion.
We now see all target markets and solid growth mode in our strategy to deliver leading edge Gan on silicon carbide with complementary silicon controllers and Isolator.
Translating into significant customer value market adoption and financial results now, let me turn it over to our CFO , Ron Shelton to update on the financial results as well as our guidance.
Thank you James and my comments today I will first take you through our first quarter results then I'll walk you through our outlook for the second quarter and the full year of 2023.
Before I get into the results for the first quarter I first wanted to step back and remind you of some of our commentary last quarter as.
As you might recall, we indicated that we could see revenue doubling in 2023 as compared to 2022 or.
Our first quarter results are a great start to meeting that objective.
Revenue in the first quarter of 2023 grew to $13 4 million, which was higher than our guidance.
This represents 98% growth over the first quarter of 2022.
And an 8% increase on a sequential basis.
The beginning of the year is unfolding as we discussed last quarter, we're seeing growth in silicon carbide products as we add capacity and expand our pipeline of opportunities the mobile market seems to be bottoming and starting to recover in Q2 and in general our overall customer engagement and activity continues to expand.
Before adjusting expenses I'd like to refer you to the GAAP to non-GAAP reconciliations in our press release issued earlier today and.
And the rest of my commentary all costs and operating expense commentary will refer to non-GAAP costs and operating expenses.
non-GAAP gross margin in the first quarter was 41, 1% compared to 44.0% in the first quarter of 2022.
An increase from 46% in the fourth quarter of 2022.
In last quarters call, we discussed some of the drivers behind expanding gross margins for this year among.
Among them transitioning to next generation products and gaining share in new higher margin market segments in the first quarter results represent the beginning of those efforts taking hold in our results.
Total non-GAAP operating expenses were $17 8 million for the first quarter of 2023.
Our non-GAAP SG&A expense was $7 6 million and non-GAAP R&D was $10 2 million slightly better than guidance as we continue to invest for growth in a disciplined manner.
Putting all this together the non-GAAP loss from operations was $12 3 million.
Compared to a loss from operations of $9 $6 million in the first quarter of 2022.
As we continue to invest simultaneously across new markets and focus on growth opportunities.
Our weighted average basic share count for the first quarter was 156 8 million shares.
Turning to the balance sheet. It continues to remain very strong with high levels of liquidity.
We've talked in the past about keeping our focus on working capital and we're making significant improvements in those areas cash.
Cash and cash equivalents at quarter end were $108 million and we carry no debt.
Accounts receivable was $7 4 million compared to $9 1 million in the prior quarter, reflecting improved days sales outstanding.
Inventory declined to $18 9 million compared to $19 1 million in the prior quarter as we continue to drive inventory levels to more closely align with our business going forward.
Over time, we're confident that our inventory levels will trend towards our long term target for inventory turns of better than three times.
Lastly, we continue to work on terms with our suppliers to better align payment terms with standard industry practice.
Moving on to guidance for the second quarter. We currently see revenues in the range of $16 million to $17 million.
At the midpoint this represents substantial year over year growth of approximately 90% over the $8 $6 million, we recorded in the second quarter of 2022.
And at 24% sequential increase over the first quarter of 2023.
Our guidance is based on robust strengthen EV solar appliance and industrial and the beginnings of a recovery in the mobile and consumer market. All further evidenced by a more than 50% increase in backlog during the quarter.
As I mentioned earlier, we believe this translates to a doubling of revenue over 2022 that we discussed in last quarter's call.
Gross margins for the second quarter are expected to move slightly higher in the range of 25 to 50 basis points.
We continue to expect that gross margins will expand over the next few quarters as we transition to next generation products and gained share of new higher margin market segments.
For these reasons as previously discussed in last quarters call. We expect our gross margins will continue to grow through the year and trend to the mid 40 percents as we exit 2023.
In total.
Our non-GAAP operating expenses in the second quarter are expected to be approximately $19 million.
And this excludes stock based compensation.
<unk> expenses and amortization of intangible assets.
We will continue investing in growth, but expenses will decline as a percentage of revenue as we scale throughout the year.
With that in mind, we expect that expenses will increase at a rate of mid to high single digits on a quarterly sequential basis.
For the second quarter of 2023, and we expect our weighted average basic share count to be approximately 162 million shares.
In closing we are extremely pleased with our results for the quarter and we are excited about the significant opportunities in front of us.
Which are starting to show up in our results as noted in our second quarter and full year guide.
As I've said before we are the only pure play next generation power semiconductor in the industry and we intend to invest resources in our targeted end markets.
Alex and technologies with the intent of becoming one of the SaaS This growing semiconductor companies in the world.
We're off to a great start.
Operator, let's begin the Q&A session.
As a reminder, if you would like to ask a question press star followed by the number one on your telephone keypad.
Your first question today comes from the line of Ross Seymore with Deutsche Bank. Your line is open.
Hi, guys. Thanks, certainly ask question congrats on the solid results.
Wanted to dig in a little bit into how the demand is growing you talked about the backlog going up 50% sequentially. So any surprises in the sources of that and I think last quarter, you talked about generally speaking what would rise or fall as a percentage of sales in the doubling for the fiscal year any updates to those numbers. Please.
Sure. Thanks, Ross for your question.
Yes, we see strength in.
Each of the markets as mentioned and they are all contributing to the growth in backlog certainly of note.
The recovery that we commented on.
It's not showing up in Q1 revenue, but actually in that backlog growth setting up good growth into Q2.
But we see that growth also continue in the other sectors in terms of full year outlook again, theyre all growing year on year, which is great of course and thats across five different <unk>.
In particular, I'd highlight EDI and solar and energy storage, probably the strongest growth of the bunch.
But but good growth across our across each of those.
Great and I guess for my follow up one for Ron It seems like Youre on track again, just like on revenues, but on gross margin. This time.
Any updates as to how we're getting to the 45% or mid Forty's exiting is.
Haps changing with the backlog or is it all just pretty much on schedule there too.
Thanks Ross.
All on schedule.
Again, I think we've discussed will increase sequentially each quarter and Thats what were seeing and so there is there's really no changes kind of laying out like we thought it would.
Got it and then last quick one for me any changes on the cost side of the equation and supply in general I know you guys have been somewhat limited on the Silicon carbide side and then some of your foundry partners had been raising prices any surprises or updates on those metrics and then I'll pass it onto the next customer.
No change Rob.
To reiterate we already signed that long term agreement.
Four of 500% increase on the permit slide with both material suppliers. The next pad that's kicking in in Q1 that includes stable predictable cost reduction over time.
And I think of the Gan side, we had mentioned that TSMC price increase of 6% late last year that kicked in in Q1, that's already factored in the guidance that Ron talked about so really no changes and I think the only decrease in costs over time or anticipated at this point.
Perfect. Thank you.
Your next question comes from the line of Kevin Cassidy with Rosenblatt Securities. Your line is open.
Yes, Thanks for taking my question and congratulations great results.
But maybe along those lines can you say, where the upside came from was it that you were able to get more silicon carbide.
Expected why you came in above your guidance.
But the pull in or if it's shipped from inventory at just a little feel of whats happened in the quarter and maybe why maybe we're seeing more momentum going forward.
Yes, great question Kevin.
Yes.
Q1.
Each market feeling some strength as I mentioned, the mobile recovery is mostly in the backlog feeding into Q2, but we are seeing the beginnings of our current supply.
Agreement kicking in a little bit in Q1, mostly in Q2 as well and I think we see general strength in each of the each of the markets excellent a lot of it assignments, we talked about last year kicking in and contributing and now we've got our entire sales force.
Carbon across multiple markets all of this adding together to give us the comp.
To reiterate the doubling this year.
Turning to guidance for Q2, and even sharing some of the sector pipeline opportunities that we see by by market by revenue across the coming years for growth.
Okay great.
Maybe just help us out here.
The definition of the pipeline.
Those are all very impressive numbers is that from the life of the product of your customers' product or is this like the.
What you can see.
As far as the forecasts are coming from new customers.
Yes, yes, yes. It is a new important metric, we're certainly very excited about the magnitude and the diversity of that to define it as the revenue potential for qualified new customer opportunities. So it doesn't include ongoing production programs. They may be ramping themselves Thats independent of it those are prequalified programs that were really scrubbing them to make sure the probe.
The program is real the fit is good for our technology to value and value prop anticipated is solid for our customers. So we believe we've taken a pretty conservative view and as you implied it is lifetime revenue that can vary by market, but we've been pretty conservative I think on our calculations are assumptions, there as well and what that program lifetime Dura.
It might be.
Okay, great. Thanks, Congratulations again.
Thanks, Kevin.
Your next question comes from the line of Tristan <unk> with Baird. Your line is open.
Hi, good afternoon.
This photo.
Good day.
Next question what percentage is that what's in your pipeline that you would expect to returning to <unk> card the potential which defines the pipeline to which you think because it's an actual signed design win.
Yeah. Thanks Kristen.
Yes, we haven't.
This is a new metric so that percentage conversion will be determined over time, but as I emphasize we've taken a pretty conservative view scrubbing to make sure. These are really committed production programs that fit to our technology is good the value of an interest in using the technology is good ultimately the percentage that converts into actual revenue will depend of course on multiple factors.
<unk> one is the final decision to use our technology what share if its multi sourced and ultimately of course the customers timing of project ramp in project volume. So it's a little hard to predict that number, but we feel real good about the opportunity to capture.
An appreciable percentage of that $760 million, which is what it is when you total it across all the markets.
Okay and then.
Looking at you.
Backlog, what do you think.
And based on that market share and gallium nitride can be.
In consumer exiting this year and maybe if you could give us some metrics as to.
You view that.
Generate cash.
Given the client base.
Or is it in the smartphone market today.
And also how much of that is actually bundled with OEM versus aftermarket.
Yes first of all good question, while Theres not maybe perfect third party market reports certainly from our view, we have established a clear technology and market leadership position in our target markets.
Today of course is the high voltage Gan market for mobile Chargers and consumer adapters. So I think we're in a strong position there and even probably continue to grow that market position.
That will of course expand and we believe we will establish that technology and market leadership position in the other markets and again as we go into the higher power markets data Center ramping later this year solar Nextera and EV in 2025, So I think all of those will contribute to a pretty strong position back to your other question on the well.
Mobile handset market.
I still think we lost a bit of time in the last year with the slowdown, namely in China, but even more broadly in mobile and we're happy to see the recovery, starting but with that I think we're still kind of in the 1% to 2% adoption. If you look at the real total potential versus what we're shipping and others.
That's still a lot of revenue growth a lot of adoption ahead.
Ahead of us going forward.
Finally, I think you asked about inbox versus out of box, if you will or aftermarket that's still pretty dynamic it used to be that 70, 80% easily of the opportunity was in box $20 to 30 after market I think thats shifting but even when it's not in the box, it's still going to be shipping by the major Oems even if it's in.
Actual purchase so youll continue to see.
We continue to focus big dollar opportunities on the major mobile players whether they offer it hasnt optional accessory or shipping in the box sort of for free to the consumer. So I think that delineation will not matter as much but it is pretty dynamic and shifting and Luckily we are in a strong market position both with the aftermarket guys intended at the top.
Top level players.
Great. Thank you very much.
Thank you Jason.
Your next question comes from the line of Quinn Bolton with Needham <unk> Company. Your line is now open hey.
Guys I'll offer my congratulations as well on the nice results and outlook I guess, maybe gene just starting with the recovery in the mobile backlog it sounds like it didn't really contribute to revenue in Q1, but certainly will contribute in Q2 does that backlog extend out now into the second half do you have.
So a better confidence that this mobile recovery has legs or do you think it was sort of short term replenishment, but the second half outlook is still a little murky.
Yes. Good question Quinn certainly it contributed to the run up in backlog in Q1 gives us really strong visibility in Q2 and even into Q3. So I would not say we have backlog visibility for the entire year, but that's typical we typically only have three to six months visibility in terms of backlog for mobile.
We got good forecast coming in from the customers on top of that backlog, which gives us good confidence, but I would say to summarize by saying we are cautiously optimistic that that recovery continues in the second half of the year and what kind of update you each quarter of course.
Great and then on the Geely onboard charger that you talked about being $15 million to $20 million opportunity. In 2024 can you discuss is that sort of one model of geely car or is it across multiple models.
And does that does that business would you expect it to grow to a higher number in 2025, I mean are we still in ramp or does that $15 million to $20 million sort of contemplate more of a steady state for that onboard charger and the model hitting steady state next year.
Yes, yes those are.
One model, we're certainly working on more but this is a great start and a great win.
The 15% to 20 is considered to be the run rate kind of average starting next year. It actually ramps. This year. So the 15% to 20 is considered steady state next year and for outer years as well.
And then we are working on many more as I said, which would likely add to that.
Great and then just lastly for me on the you talked about that.
The industrial and appliance market the outlook being pretty strong there I'm wondering is that more of an AC to DC application or is that starting to to ramp some of the motor control applications as well.
Yes, good good insightful question and it's both certainly I mentioned over 45 customer projects in production or development. Most of those are in development. Most of those are starting ramps next year. The high percentage of our motor control that takes advantage of our latest generation Gan <unk>, our most advanced the highest performance most <unk>.
Integrated Gan IC, we offer and that's a great fit.
Our new family of Gan control, where we integrate our low voltage controller with the Gan chip not only sets for mobile Chargers and consumer adaptors is a perfect fit for the power supply applications, namely jewelry.
<unk> power supplies that power the LCD display that's increasingly common in all of these home appliances. So it's a nice combination of both but the biggest majority is the motor control with Afghan since average.
Perfect. Thank you.
As a reminder, if you would like to ask a question press star followed by the number one on your telephone keypad.
Your next question comes from the line of John Ken <unk> from CJS Securities. Your line is open.
Hi, This is Ross in for John a quick question do you have any changes to when you expect to achieve positive cash flow.
No we haven't we haven't.
Updated any of that so so typically what we've talked about in terms of operating breakeven.
On slide 24, early 'twenty, five and around $50 million a quarter in revenue.
Roughly the timeframe.
We've talked about now having.
Having said that I'll add as you've seen we've got $100 million of cash on the balance sheet no debt. So the balance sheet is very strong and we feel really good about the cash position in terms of being able to fund the organic business to breakeven.
Got it and then my quick follow up are any competitors closer to you know in discrete Tan again, where silicon products have you observed any stronger competition.
Yeah, we really haven't seen a change in the competitive landscape. So we feel good about where we're at both in leading and Gan integrated circuit, but also leading in the silicon carbide MOSFET.
MOSFET with the best in Circuit high temperature performance, we've ever tested we are extending looking to extend that lead we just launched.
Generation for Silicon carbide, NPS diodes with set some new performance benchmarks there.
And were fast ramping generation four and working on generation five in the gallium nitride space. So no change the landscape and feel pretty good about the technology position, we have and look to grow it quite soon.
Thanks for the additional color.
You bet.
Your next question comes from the line of Natalia Winkler with Jefferies. Your line is open.
Hi, Thanks for taking my questions and congrats on the results I.
I wanted to follow up on the data center market Jean would you mind.
Maybe spending a little bit more.
On the ramp that you guys are expecting at the end of this year and also how should we think about that market from the standpoint of pipeline.
And really kind of the number of years I guess that that pipeline would typically include.
Yes, definitely and Italia, so but that was unique in that we're not already shipping silicon carbide into that one nor are we shipping and again. So it is the smallest in part just because we're only in sampling mode. We will release to production organic IC for high power applications. Later this year at that point, we'll sort of step on the gas and open this up to even a <unk>.
<unk> set of customers with all that said that sampling has already led to 15 more than 15 customers and development of the pipeline over $60 million pipeline. I also think that pipeline is not really reflecting what's going on in the market today around generative.
I think we're just scratching the surface on the potential applications and market implications.
That technology and the massive data consumption, that's going to go with it which leaves some asset power consumption, which we're going to see in coming quarters. I believe certainly coming years try to bake power problem, which is a big power opportunity for <unk>. So that's a bit on the medium to long term, but coming back to your question then.
Early days, because we are in the sampling method as I said, we feel good about the number of customers that we kind of careful carefully selected and cultivated.
And that $60 million pipeline.
Again, we try to be always conservative on these program lifetime. So there, we're assuming something like two or three years type of.
Duration customer project duration.
Understood. Thank you that's very helpful.
And then the second question I wanted to follow up on that did Julia announcement.
Just trying to figure out how it usually works for these types of automotive socket is that.
Is that type of a primary secondary source arrangement and then I guess.
Would there be some exclusivity related to their arrangement in and just broadly not necessarily even for Julie <unk> for any other potential sockets, you guys will see like that going forward.
What's the best way for us to think about the penetration level within the OEM.
Yes definitely in the Silicon carbide space of course, there are many discrete players. So often times you could look at a multi source situation. In this case that project happened very quickly in the last six or nine months in part it's happening quickly because they are working directly with our design center in late last year, We announced a joint design center with Geely.
So we're super excited that this is a great example of how that system design center, when focused and partner with key players can really accelerate their adoption and their engineering work to go faster even in a generally longer development cycle market like <unk>.
Not only that they have started working with another supplier when they fully tested our parts in.
In collaboration with our joint design center that really demonstrated that better in circuit high temperature performance that we are often alluded to.
That validation and competitive even premium pricing it put us in a 100% market share position. So this is a really nice case study. If you will about how fast we can accelerate things with our system design center, but also how that technology performance and advantage can lead to a strong market share in this case, 100% I don't know if that will all go that well.
But this is certainly a good example, we look to repeat it many times over.
Thank you.
Thanks.
Your next question comes from the line of Richard Shannon with Craig Hallum. Your line is open.
Hi, guys. Thanks for taking my question as well I'm going to ask you first question on gross margins not only second quarter, but kind of the rest of the year here gross margin progression here in the second quarter is going up a little bit and it seems like it would be implicitly being accelerating a little bit in the back half of the year. It seems like with if I caught it and understand your comments correctly.
Mobile is maybe growing a little bit less here in the second quarter. It seems like gross margins would do better in that environment, but maybe it's taking on some more costs from from TSMC and others. So maybe help me understand kind of the mix and cost structure flow throughs that lead to the gross margin dynamics you are talking about both in the second quarter in the second half.
Hey, Richard it's Ron So the way to think about margins again as we've reiterated exiting the year in the mid 40, so so that hasnt changed.
There are a couple of drivers this year.
The drive margins to that 0.1 is just getting into kind of more diversification into other markets that are generally higher margin right. So could.
Could be EV could be industrial and so on but.
That's one path. The second is transitioning to next generation products and so in the very near term.
That would have a bigger effect and we're seeing that happening now and that's what you've seen in Q2, and then that'll be that transition will have fully occurred as we exit Q2, and so youll see a little bit of a step up in Q3.
And Rhonda thanks.
Especially your first again products right.
The latter yeah, yeah, yeah, okay.
Okay that is helpful. Maybe a follow on question for for gene in the mobile space here, maybe you could talk about the sweet spot that you're seeing.
And that market from a power perspective, where it's been where it's going.
And then also maybe you can talk about.
The cost just from a cost side again versus silicon and when we might see that crossover point.
Yes, definitely Richard So we continue to see the same dynamics, we've talked about before in general the market wants faster charging to do that you are pushing those power levels up and up and up more into the sweet spot again in general and certainly not Pitofsky Nics in particular, we're also seeing the trend that multi output Chargers gone are the days when you had one charger for your fee.
One one charge or for your tablet wind charger for your laptop that not only meets more outputs. It means more power and again feeding right that kind of sweet spot again with again value is relatively modest at 20 watts or maybe 30 watts. It grows significantly as you push up to 50 60 Watson even more so into this category a category we call Ultra fast Chargers at 100 watts.
And higher and a high percentage of those 20 that were launched in Q1 and are driving a lot of the short term backlog and growth and recovery are in that 65 watt and up more than 100 watt and up space.
I hope that gives you a little bit more color about the trends no changes there, but certainly we see that trend continuing and now accelerating as the market recovers.
Okay perfect. Thanks for the detail that's all for me and congrats on the nice start to you guys.
Thanks, a lot Richard.
There are no further questions at this time and this concludes today's conference call. Thank you for attending you may now disconnect.
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