Q4 2024 Alpha and Omega Semiconductor Ltd Earnings Call

August 7, 2024

Tia: Good afternoon, ladies and gentlemen. Thank you for joining today's Alpha and Omega Semiconductor Fiscal Q4 and Fiscal Year 2024 Earnings Call. My name is Tia, and I will be your moderator for today's call.

Unknown Executive: Good afternoon, ladies and gentlemen. Thank you for joining today's Alpha and Omega Semiconductor fiscal Q4 in the fiscal year 2024 earnings call.

Good afternoon, ladies and gentlemen. Thank you for joining today's Alpha and Omega Semiconductor Fiscal Q4 and Fiscal Year 2024 Earnings Call. My name is Tia, and I will be your moderator for today's call.

Operator: Fiscal Q4 and Fiscal Year 2024 Earnings Call. I would now like to pass the call over to your host, Stephen Pelayo, with the Blue Shirt Group. Please proceed.

Unknown Executive: My name is Tia, and I will be your moderator for today's call. All lines will be muted during the presentation portion of the call, with an opportunity for questions and dances at the end. If you would like to ask a question, please press star one on your telephone keypad.

Tia: All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end. If you would like to ask a question, please press star one on your telephone keypad. I would now like to pass the call over to your host, Stephen Pelayo, with the Blue Shirt Group. Please proceed.

All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end. If you would like to ask a question, please press star 1 on your telephone keypad.

Unknown Executive: How and how to pass the call and see how Stephen Pelayo with the blue shirt group, please proceed.

I would now like to pass the call over to your host Stephen Pelayo with the Blue Shirt Group. Please proceed.

Steven Pelayo: Good afternoon, everyone, and welcome to Alpha and Omega Semiconductor's conference call to discuss fiscal 2024, fourth quarter, and annual financial results. I'm Stephen Pelayo, Investor Relations representative for AOS. With me today are Stephen Chang, our CEO, and Yifan Liang, our CFO. This call is being recorded and broadcast live over the web. A replay will be available for seven days following the call via link in the investor relations section of our website.

Stephen Pelayo: Good afternoon, everyone, and welcome to Alpha and Omega Semiconductor's conference call to discuss Fiscal 2024, fourth quarter, and annual financial results. I'm Stephen Pelayo, Investor Relations Representative for AOS. With me today are Stephen Chang, our CEO, and Yifan Liang, our CFO. This call is being recorded and broadcast live over the web.

Stephen Pelayo: Good afternoon everyone and welcome to Alpha and Omega Semiconductor's conference call to discuss Fiscal 2024.

Fourth Quarter and Annual Financial Results. I'm Stephen Pelayo, Investor Relations Representative for AOS.

Speaker Change: With me today are Stephen Chang, our CEO , and Yifan Liang, our CFO . This call is being recorded and broadcast live over the web. A replay will be available for seven days following the call via a link in the Investor Relations section of our website. Our call will proceed as follows today.

Stephen Pelayo: A replay will be available for seven days following the call via a link in the Investor Relations section of our website. Our call today will proceed as follows. Stephen will begin the business update, including strategic highlights and a detailed segment report. After that, Yifan will review financial results and provide guidance for the September quarter. Finally, we will have a Q&A session. The earnings release was distributed over the wire today, August 7th, 2024, after the market closed.

Steven Pelayo: Our call will proceed as follows today. Stephen will begin business update, including strategic highlights and detailed segment report. After that, Yifan will review financial results and provide guidance for the September quarter.

Speaker Change: Stephen will begin business update including strategic highlights and a detailed segment report. After that, Yifan will review financial results and provide guidance for September quarter. Finally, we will have a Q&A session.

Unknown Executive: Finally, we will have a Q&A session.

Steven Pelayo: The earnings release was distributed over the wire today, August 7, 2024, after the market closed. The release is also posted on the company's website. Our earnings release and this presentation include non-GAAP financial measures. We use non-GAAP measures because we believe they provide useful information about our operating performance that should be considered by investors in conjunction with the GAAP measures. A reconciliation of these non-GAAP measures to comparable GAAP measures is included in the earnings release.

Speaker Change: The earnings release was distributed over the wire today, August 7, 2024, after the market closed.

Stephen Pelayo: The release is also posted on the company's website. Our earnings release in this presentation includes non-GAAP financial measures. We use non-GAAP measures because we believe they provide useful information about our operating performance that should be considered by investors in conjunction with GAAP measures.

Speaker Change: The release is also posted on the company's website. Our earnings release and this presentation include non-GAAP financial measures. We use non-GAAP measures because we believe they provide useful information about our operating performance that should be considered by investors in conjunction with the GAAP measures. A reconciliation of these non-GAAP measures to comparable GAAP measures is included in the earnings release. For more information, visit www.yifan.com or www.yifan.com or www.yifan.com.

Steven Pelayo: We remind you that during this conference call, we will make certain forward-looking statements, including discussions of the business outlook and financial projections. These forward-looking statements are based on management's current expectations and involve risks and uncertainties that could cause our actual results to differ materially. For more detailed description of these risks and uncertainties, please refer to our recent subsequent filings with the SEC.

Stephen Pelayo: A reconciliation of these non-GAAP measures to comparable GAAP measures is included in the earnings release. We remind you that during this conference call, we will make certain forward-looking statements, including discussions of the business outlook and financial projections. These forward-looking statements are based on management's current expectations and involve risks and uncertainties that could cause our actual results to differ materially. For a more detailed description of these risks and uncertainties, please refer to our recent and subsequent filings with the SEC. We assume no obligation to update the information provided in today's call. Now, I'll turn the call over to our CEO, Stephen Chang. Stephen?

Speaker Change: We remind you that during this conference call, we will make certain forward-looking statements, including discussions of the business outlook and financial projections.

Speaker Change: These four looking statements are based on management's current expectations and involve risks and uncertainties that could cause our actual results to differ materially. For a more detailed description of these risks and uncertainties, please refer to our recent and subsequent filings with the SEC. We assume no obligation to update the information provided in today's call. Now I'll turn the call over to our CEO , Stephen Chang. Stephen?

Steven Pelayo: We assume no obligation to update the information provided in today's call.

Steven Pelayo: Now, I'll turn the call over to our CEO, Stephen Chang. Stephen?

Stephen Chang: Thank you, Steve.

Stephen Chang: Thank you, Steve. Welcome to Alpha and Omega's fiscal Q4 earnings call. I will begin with a high-level overview of our results and then jump into segment details. We deliver Cisco Q4 results in line with our guidance for revenue and growth. Revenue was $161.3 million. Non-GAAP gross margin was 26.4%. Non-GAAP EPS was $0.09.

Unknown Executive: Good afternoon, ladies and gentlemen. Thank you for joining today's Alpha and Omega Semiconductor Fiscal Q4 in the fiscal year 2024 earnings call.

Stephen Chang: Welcome to Alpha and Omega's fiscal Q4 earnings call. I will begin with a high-level overview of our results and then jump into segment details. We delivered fiscal Q4 results in line with our guidance for revenue and gross margin. Revenue was $161.3 million. Non-gap gross margin was 26.4%, non-gap EPS was $0.9. As we mentioned, last quarter, inventory corrections across the majority of our end markets are now largely behind us, and seasonality is returning to more normalized trends. While visibility on the slope of the recovery is limited, the increasing breadth of demand is encouraging. For the June quarter, we saw sequential growth in each of our major segments, with relative strength coming from tablets, AI, graphics cards in our computing segment, gaming and home appliances within consumer, e-mobility, DC motors, and a regional shift towards a Tier I US smartphone customer within communication.

Stephen Chang: Thank you, Steve. Welcome to Alpha and Omega's fiscal Q4 earnings call. I will begin with a high-level overview of our results and then jump into segment details.

Unknown Executive: My name is Tia and I will be you moderated for today's call. All lines will be muted during the presentation portion of the call, with an opportunity for questions and dances at the end. If you would like to ask a question, please press star one on your telephone keypad.

Speaker Change: We deliver fiscal Q4 results in line with our guidance for revenue and gross margin. Revenue was $161.3 million. non-GAAP gross margin was 26.4%. non-GAAP EPS was 9 cents.

Stephen Chang: As we mentioned last quarter, inventory corrections across the majority of our end markets are now largely behind, and seasonality is returning to more normalized trends. While visibility on the slope of the recovery is limited, the increasing breadth of demand is encouraged. For the June quarter, we saw sequential growth in each of our major segments, with relative strength coming from tablets, AI, and graphics cards in our competing segments, gaming and homophily within consumer, emobility DC motors and quick chargers in the industrial segments, and a regional shift towards a tier one US smartphone customer within communication. Thank you.

Speaker Change: As we mentioned last quarter, inventory corrections across the majority of our end markets are now largely behind us.

Unknown Executive: How and how to pass the call and see how Stephen Pelayo with the blue shirt group, please proceed.

Unknown Executive: While visibility on the slope of the recovery is limited, the increasing breadth of demand is encouraged. For the June quarter, we saw sequential growth in each of our major segments, with relative strength coming from tablets, AI, and graphics cards in our computing segment, gaming and home appliances within consumer, e-mobility, DC motors, and quick chargers in the industrial segment, and a regional shift toward a Tier 1 U.S. smartphone customer within communications. With that, let me now cover our segment results and provide some guidance by segment for the next quarter. Looking to the next cycle, we are poised for growth, bolstered by advanced technology, a diversified product portfolio addressing a broadening array of end markets, and a premier customer base across all product lines.

Speaker Change: and Seasonality is returning to more normalized trends.

Steven Pelayo: Good afternoon everyone and welcome to Alpha and Omega Semiconductor's conference call to discuss fiscal 2024, fourth quarter and annual financial results. I'm Stephen Pelayo, investor relations representative for AOS. With me today, our Stephen Chang, our CEO, and Yifan Liang, our CFO. This call is being recorded and broadcast live over the web. A replay will be available for seven days following the call, via link in the investor relations section of our website.

Speaker Change: While visibility on the slope of the recovery is limited, the increasing breadth of demand is encouraging.

Speaker Change: For the June quarter, we saw sequential growth in each of our major segments, with relative strength coming from tab loops.

Speaker Change: AI, Graphics Cards in our Computing segment, Gaming and Home Appliances within Consumer, E-Mobility, DC Motors and Quick Chargers in the Industrial segment, and a regional shift towards a Tier 1 US Smartphone customer within Communications.

Stephen Chang: The PC segment, however, is taking longer to recover than originally expected. Looking into the September quarter, we expect PCs and service to grow sequentially, while tablets sustain the strong current run rate within computing. The consumers that meant we'll likely see continued strength in gaming and a strong seasonal pickups from wearables offset by slower home appliances. Smart phones will drive sequential growth and communication, while ACDC power supplies and quick chargers are relatively stronger in industrial.

Stephen Chang: The PC segment, however, is taking longer to recover than originally expected. Looking into the September quarter, we expect PCs and servers to grow sequentially, while tablets sustain the strong current run rate within computing. The consumer segment will likely see continued strength in gaming and a strong seasonal pickup from wearables offset by slower home appliances. Smartphones will drive sequential growth in communication, while AC-DC power supplies and quick chargers are relatively stronger in industrial.

Speaker Change: The PC segment, however, is taking longer to recover than originally expected.

Speaker Change: Looking into the September quarter, we expect PCs and servers to grow sequentially while tablets sustain the strong current run rate within computing. The consumer segment will likely see continued strength in gaming and a strong seasonal pickup from wearables, offset by slower home appliances.

Speaker Change: Smartphones will drive sequential growth in communication, while AC-DC power supplies and quick chargers are relatively stronger in industrial.

Stephen Chang: Looking beyond 2024, AOS is transitioning from a component supplier to a total solutions provider in many areas where we can leverage our core strength in high-performance silicon, advanced packaging, and intelligent ICs to penetrate new opportunities and drive higher bomb content. We are building on customer relationships to capture market share with a broadest product portfolio. For example, we are leveraging a strength in graphic cards and introducing new B-core products for opportunities in advanced computing and AI data finish. Within smartphones, we expect a benefit from times towards foldable, flexible, and multiple screens, increasing AI integration, as well as dual cell batteries and higher charging currents for faster charging times.

Stephen Chang: Looking beyond 2024, AOS is transitioning from a component supplier to a total solutions provider in many areas where we can leverage our core strength in high-performance silicon, advanced packaging, and intelligent ICs to penetrate new opportunities and drive higher BOM content. We are building on customer relationships to capture market share with a broad product portfolio. For example, we are leveraging our strength in graphics cards and introducing new vCore products for opportunities in advanced computing and AI data.

Speaker Change: Looking beyond 2024, AOS is transitioning from a component supplier to a total solutions provider in many areas where we can leverage our core strengths in high-performance silicon, advanced packaging, and intelligent ICs to penetrate new opportunities and drive higher BOM content.

Speaker Change: We are building on customer relationships to capture market share with a broader product portfolio. For example, we are leveraging our strength in graphics cards and introducing new vCore products for opportunities in advanced computing and AI data centers.

Unknown Executive: Finally, we will have a Q&A session.

Stephen Chang: Within smartphones, we expect to benefit from trends toward foldable, flexible, and multiple screens, increasing AI integration, as well as dual-cell batteries and higher charging currents for faster charging. Beyond computing and communication segments, we remain optimistic about the underlying power trends in adjacent markets such as solar, motors, and e-mobility. Gaming, Home Appliances, and Power Tools.

Unknown Executive: The earnings release was distributed over the wire today, August 7, 2024, after the market closed. The release is also posted on the company's website. Our earnings release and this presentation include non-gap financial measures. We use non-gap measures because we believe they provide useful information about our operating performance that should be considered by investors in conjunction with the gap measures. A reconciliation of these non-gap measures to comparable gap measures is included in the earnings release.

Speaker Change: Within smartphones, we expect to benefit from trends towards foldable, flexible, and multiple screens, increasing AI integration as well as dual-cell batteries, and higher charging currents for faster charging times.

Unknown Executive: We remind you that during this conference call, we will make certain forward-looking statements, including discussions of the business outlook and financial projections. These forward-looking statements are based on management's current expectations and involve risks and uncertainties that could cause our actual results to differ materially. For more detailed description of these risks and uncertainties, please refer to our recent subsequent filings with the SEC. We assume no obligation to update the information provided in today's call.

Steven Pelayo: Now, I'll turn the call over to our CEO, Stephen Chang. Stephen? Thank you, Steve.

Stephen Chang: Beyond computing and communication segments, we remain optimistic on the underlying power trends in adjacent markets such as solar, motors, and e-mobility, gaming, home appliances, and power tools. These examples all represent continued growth opportunities primarily driven by the global shift towards more efficient and sustainable energy solutions.

Speaker Change: Beyond computing and communication segments, we remain optimistic on the underlying power trends in adjacent markets such as solar, motors, and e-mobility.

Stephen Chang: These examples all represent continued growth opportunities primarily driven by the global shift towards more efficient and sustainable energy solutions. With that, let me now cover our segment results and provide some guidance by segment for the next quarter. Starting with computing, June quarter revenue was up 37.6% year over year and 4.4% sequentially, and represented 44.4% of total revenue. These results were slightly below our original expectation for mid to upper single-digit growth.

Speaker Change: Gaming, Home Appliances, and Power Tools. These examples all represent continued growth opportunities primarily driven by the global shift towards more efficient and sustainable energy solutions.

Stephen Chang: While visibility on the slope of the recovery is limited, the increasing breadth of demand is encouraging. For the June quarter, we saw sequential growth in each of our major segments with relative strength coming from tablets, AI, graphics cards in our computing segment, gaming and home appliances within consumer, e-mobility, DC motors, and a regional shift towards a Tier I US smartphone customer within communication. The PC segment, however, is taking longer to recover than originally expected.

Stephen Chang: With that, let me now cover our segment results and provide some guidance by segments for the next quarter. Starting with computing, June quarter revenue was up 37.6% year over year and 4.4% sequentially and represented 44.4% of total revenue. These results were slightly below our original expectation for mid to upper single-digit growth. As mentioned before, we saw relative strength from tablets, AI, and graphics cards in the quarter, offset by a slower PC market recovery. Notably, tablet revenue was a market high, and the contribution from AI and data center-related applications continued to grow. We are excited about opportunities in AI.

Speaker Change: With that, let me now cover our segment results and provide some guidance by segment for the next quarter.

Speaker Change: Starting with computing, June quarter revenue was up 37.6% year over year and 4.4% sequentially and represented 44.4% of total revenue.

Speaker Change: These results were slightly below our original expectation for mid to upper single-digit growth. As mentioned before, we saw relative strength in tablets, AI, and graphics cards in the quarter, offset by a slower PC market recovery.

Stephen Chang: As mentioned before, we saw relative strength from tablets, AI, and graphics cards in the quarter, offset by a slower PC market recovery. Notably, tablet revenue was a record high, and the contribution from AI and data center-related applications continued to grow. We are excited about opportunities in AI. Demand for accelerator cards remains steady as the industry prepares for a platform transition ramping next year.

Stephen Chang: Looking into the September quarter, we expect PCs and service to grow sequentially while tablets sustain the strong current run rate within computing. The consumers that meant we'll likely see continued strength in gaming and a strong seasonal pickups from wearables offset by slower home appliances. Smart phones will drive sequential growth and communication while ACDC power supplies and quick chargers are relatively stronger in industrial. Looking beyond 2024, AOS is transitioning from a component supplier to a total solutions provider in many areas where we can leverage our core strength in high-performance silicon, advanced packaging and intelligent ICs to penetrate new opportunities and drive higher bomb content.

Speaker Change: Notably, tablet revenue was a record high, and the contribution from AI and data center-related applications continued to grow.

Stephen Chang: The man for a celebrated card remains steady as the industry prepares for a platform transition ramping next year. We are working on multiple opportunities leveraging our existing relationship with a key graphics card maker as well as our product portfolio including new multi-phase, decore controllers and a power station solution for advanced computing. We are also seeing some ramps in September from a leading power supply maker that is a key supplier to the same AI graphics customer. We are selling our high-performance medium voltage MOSFETs that go into intermediate bus converters for DC to DC power conversion. Looking forward into the September quarter, we expect the computing segment to grow mid single digits sequentially as PC sees no pickup, while tablets, AI cell layers, and graphics cards remain strong.

Speaker Change: We are excited about opportunities in AI.

Speaker Change: Demand for accelerator cards remains steady as the industry prepares for a platform transition ramping next year.

Stephen Chang: We are working on multiple opportunities, leveraging our existing relationship with a key graphics card maker, as well as our product portfolio, including new multi-phase vCore controllers and a PowerStage solution for advanced computing. We're also seeing some ramp in September from a leading power supply maker that is a key supplier to the same AI graphics cluster. We are selling our high-performance medium voltage MOSFETs that go into intermediate bus converters for DC to DC power conversion.

Speaker Change: We are working on multiple opportunities, leveraging our existing relationship with a key graphics card maker, as well as our product portfolio, including new multi-phase vCore controllers and PowerStage solutions for advanced computing.

Speaker Change: We are also seeing some ramp in September from a leading power supply maker that is a key supplier to the same AI graphics customer.

Speaker Change: We are selling our high-performance, medium-voltage MOSFETs that go into intermediate bus converters for DC-to-DC power conversion.

Stephen Chang: We are building on customer relationships to capture market share with a broadest product portfolio. For example, we are leveraging a strength in graphic cards and introducing new B-core products for opportunities in advanced computing and AI data finish. Within smartphones, we expect a benefit from times towards foldable, flexible and multiple screens, increasing AI integration as well as dual cell batteries and higher charging currents for faster charging times. Beyond computing and communication segments, we remain optimistic on the underlying power trends in adjacent markets such as solar, motors and e-mobility, gaming, home appliances and power tools. These examples all represent continued growth opportunities primarily driven by the global shift towards more efficient and sustainable energy solutions.

Stephen Chang: Looking forward into the September quarter, we expect the computing segment to grow mid-single digits sequentially as PCs see a seasonal pickup, while tablets, AI accelerators, and graphics cards remain strong. Turning to the consumer segment, June quarter revenue was down 35.5% year over year, but up 19.7% sequentially, and represented 17.5% of total revenue. The results were in line with our forecast for double-digit sequential growth and were primarily driven by gaming and home appliances. It is now clear that the inventory correction in gaming is behind us, and a seasonal build is underway. The strength of home appliances was better than expected as government incentives in China drove demand.

Speaker Change: Looking forward into the September quarter, we expect the computing segment to grow mid-single digits sequentially as PCs see a seasonal pickup, while tablets, AI accelerators, and graphics cards remain strong.

Stephen Chang: Turning to the consumer segment, June quarter revenue was down 35.5% year over year but of 19.7% sequentially and represented 17.5% of total revenue. The results were in line with our forecast for double digital sequential growth and were primarily driven by gaining and home appliances. It is now clear that the inventory correction in gaming is behind us, and a seasonal build is underway. The results were wearable and continued strength in gaming, offset by slower home appliances.

Speaker Change: Turning to the consumer segment, June quarter revenue was down 35.5% year over year, but up 19.7% sequentially, and represented 17.5% of total revenue.

Speaker Change: The results were in line with our forecast for double-digit sequential growth and were primarily driven by gaming and home appliances.

Speaker Change: It is now clear that the inventory correction in gaming is behind us and a seasonal build is underway. The strength in home appliances was better than expected as government incentives in China drove demand.

Stephen Chang: For the September quarter, we forecast low double-digit sequential growth in the consumer segment, driven by strong seasonal pickup from wearables and continued strength in gaming, offset by slower home appliances. Next, let's discuss the communications segment. Revenue in the June quarter was up 59% year over year and 2.1% sequentially and represented 17% of total revenue.

Stephen Chang: With that, let me now cover our segment results and provide some guidance by segments for the next quarter. Starting with computing, June quarter revenue was up 37.6% year over year and 4.4% sequentially and represented 44.4% of total revenue. These results were slightly below our original expectation for mid to upper single digit growth. As mentioned before, we saw relative strength from tablets, AI and graphics cards in the quarter offset by a slower PC market recovery.

Speaker Change: For the September quarter, we forecast low double-digit sequential growth in the consumer segment, driven by strong seasonal pickup from wearables and continued strains in gaming, offset by slower home appliances.

Stephen Chang: Next, let's discuss the communication segment. Revenue in the June quarter was up 59% year over year and 2.1% sequentially and represented 17% of total revenue. These results were above our financial expectations as we began to see the seasonal pickup from a Tier 1 US smartphone customer, offset by sequential declines from Korea and China OEMs. Looking ahead, we anticipate double digital sequential growth in the September quarter on seasonal strength ahead of new smartphone launches in the US and increasing demand from China's smartphone OEMs. We are benefiting from a mixed shift to more premium phones, and we anticipate rising growth in bomb content as phone makers increased battery charging current.

Speaker Change: Next, let's discuss the communications segment. Revenue in the June quarter was up 59% year-over-year and 2.1% sequentially and represented 17% of total revenue.

Stephen Chang: These results were above our sequential expectations as we began to see the seasonal pickup from a Tier 1 US smartphone customer, offset by sequential declines from Korea and China. Looking ahead, we anticipate double-digit sequential growth in the September quarter on seasonal strength ahead of new smartphone launches in the US and increasing demand from China's smartphone OEMs. We are benefiting from a mixed shift to more premium phones, and we anticipate rising growth in BOM content as phone makers increase battery charging current.

Speaker Change: these results were above our fllatish sequential expectations as le began to see the seasonal pickup from a share one u s marartphone customer offset by sequential declines from korea and china oems

Stephen Chang: Notably, tablet revenue was a market high and the contribution from AI and data center-related applications continued to grow. We are excited about opportunities in AI. The man for a celebrated card remains steady as the industry prepares for a platform transition ramping next year. We are working on multiple opportunities leveraging our existing relationship with a key graphics card maker as well as our product portfolio including new multi-phase, decore controllers and a power station solution for advanced computing.

Speaker Change: Looking ahead, we anticipate double-digit sequential growth in the September quarter on seasonal strength ahead of new smartphone launches in the U.S. and increasing demand from China's smartphone OEMs.

Speaker Change: we are benefiting from a mix shift to more premium phones and we anticipate rising growth in bomb content as flawmakers increased battery charg insurance

Stephen Chang: Now, let's talk about our last segment, power supply and industrial, which accounted for 17.1% of total revenue and was down 33.7% year over year but of 11.3% sequentially. The results were slightly ahead of our forecast for mid to upper single digital sequential growth driven by strength in the e-mobility segment for e-bikes and e-scooters and DC fans for applications in areas such as data centers. The inventory correction in quick charger appears complete, as we also saw the beginnings of recovery in the June quarter. Lastly, a power tool is continued at a steady pace in June. For the September quarter of the expected segment to grow 15 to 20% sequentially, primarily driven by a solid uptick from quick chargers as well as strength from ACBC power supplies tied to the seasonal build and DCs.

Stephen Chang: Now let's talk about our last segment, power supply and industrial, which accounted for 17.1% of total revenue and was down 33.7% year over year but up 11.3% sequentially. The results were slightly ahead of our forecast for mid to upper single-digit sequential growth driven by strength in the e-mobility segment for e-bikes and e-scooters and DC fans for applications in areas such as data centers. The inventory correction in QuickCharger appears complete, as we also saw the beginnings of recovery in the June quarter. Lastly, power tools continued at a steady pace in June.

Speaker Change: now let's talk about our last segment power supply and industrial which accounted for seventeen point one percent ofoctotal revenue and was down thirty-three point seven percent year-over-year but of a liven point three percent sequentially

Stephen Chang: We are also seeing some ramps in September from a leading power supply maker that is a key supplier to the same AI graphics customer. We are selling our high-performance medium voltage MOSFETs that go into intermediate bus converters for DC to DC power conversion. Looking forward into the September quarter, we expect the computing segment to grow mid single digits sequentially as PC sees no pickup while tablets AI cell layers and graphics cards remain strong.

Speaker Change: The results were slightly ahead of our forecast for mid to upper single-digit sequential growth driven by strength in the e-mobility segment for e-bikes and e-scooters and DC fans for applications in areas such as data centers.

Speaker Change: The inventory correction in Quick Charger appears complete as we also saw the beginnings of recovery in the June quarter.

Stephen Chang: Turning to the consumer segment, June quarter revenue was down 35.5% year over year but of 19.7% sequentially and represented 17.5% of total revenue. The results were in line with our forecast for double digital sequential growth and were primarily driven by gaining and home appliances. It is now clear that the inventory correction in gaming is behind us and a seasonal build is underway. The results were wearable and continued strength in gaming, offset by slower home appliances.

Stephen Chang: For the September quarter, we expect this segment to grow 15 to 20% sequentially, primarily driven by a solid uptick from quick chargers, as well as strength from AC-DC power supplies tied to the seasonal build in PCs. In closing, the June quarter was in line with our expectations and marked a solid conclusion to our fiscal 2024 performance. The rolling inventory corrections we experienced over the past year in nearly every one of our end markets are now largely behind us, and some markets, like smartphones, are starting to return, while new markets, like AI, are emerging.

Speaker Change: Lastly, power tools continued at a steady pace in June .

Speaker Change: For the September quarter, we expect this segment to grow 15-20% sequentially, primarily driven by a solid uptick from quick chargers, as well as strength from AC-DC power supplies tied to the seasonal build in PCs.

Stephen Chang: In closing, the June quarter was in line with our expectations and marked a solid conclusion to our fiscal 2024 performance. The rolling inventory corrections are at least experienced over the past year in nearly every one of our end markets are now largely behind us, and some markets like smartphones are starting to return, while new markets like AI are emerging. We expect seasonal growth in the September quarter, primarily driven by PCs, smartphones, wearables, and gaming. Looking to the next cycle, we have poised for growth bolstered by advanced technology, a diversified product portfolio addressing a broadening array of end markets, and a premier customer base across all product alarms. Power management underpins key trends such as AI, digitalization, connectivity, and electrification, especially as we move towards a sustainable low carbon society.

Speaker Change: In closing, the June quarter was in line with our expectations and marked a solid conclusion to our fiscal 2024 performance.

Speaker Change: The rolling inventory corrections we experienced over the past year in nearly every one of our end markets are now largely behind us, and some markets like smartphones are starting to return, while new markets like AI are emerging.

Stephen Chang: We expect seasonal growth in the September quarter, primarily driven by PCs, smartphones, wearables, and gaming. Looking to the next cycle, we are poised for growth, bolstered by advanced technology, a diversified product portfolio addressing a broadening array of end markets, and a premier customer base across all product lines. Power management underpins key trends such as AI, digitalization, connectivity, and electrification, especially as we move towards a sustainable, low-carbon society.

Speaker Change: We expect seasonal growth in the September quarter primarily driven by PCs, smartphones, wearables, and gaming.

Stephen Chang: Next, let's discuss the communication segment. Revenue in the June quarter was up 59% year over year and 2.1% sequentially and represented 17% of total revenue. These results were above our financial expectations as we began to see the seasonal pickup from a Tier 1 US smartphone customer, offset by sequential declines from Korea and China OEMs. Looking ahead, we anticipate double digital sequential growth in the September quarter on seasonal strength ahead of new smartphone launches in the US and increasing demand from China's smartphone OEMs. We are benefiting from a mixed shift to more premium phones and we anticipate rising growth in bomb content as phone makers increased battery charging current.

Speaker Change: Looking to the next cycle, we are poised for growth, bolstered by advanced technology, a diversified product portfolio addressing a broadening array of end markets, and a premier customer base across all product lines.

Speaker Change: Power management underpins key trends such as AI, digitalization, connectivity, and electrification, especially as we move towards a sustainable, low-carbon society.

Stephen Chang: We are steadfast in executing our technology roadmap. Customers increasingly view us as a total solution provider, allowing us to capture a greater portion of the bill of materials and ultimately supporting growth that outpaces industry over the long term.

Stephen Chang: We're steadfast in executing our technology roadmap. Customers increasingly view us as a total solutions provider, allowing us to capture a greater portion of the bill of materials, and ultimately supporting growth that outpaces the industry over the long term. With that, I will now turn the call over to Yifan for a discussion of our fiscal fourth quarter and fiscal year financial results and our outlook for the next quarter. Thank you, Stephen. Good afternoon, everyone, and thank you for joining us.

Speaker Change: We are steadfast in executing our technology roadmap. Customers increasingly view us as a total solution provider, allowing us to capture a greater portion of the bill of materials, and ultimately supporting growth that outpaces industry over the long term.

Yifan Liang: With that, I will now turn the call over to Yifan for a discussion of our fiscal fourth quarter and fiscal year financial results and our outlook for the next quarter. Thank you, Steven. Good afternoon, everyone, and thank you for joining us.

Speaker Change: With that, I will now turn the call over to Yifan for a discussion of our fiscal fourth quarter and fiscal year financial results and our outlook for the next quarter.

Yifan Liang: Revenue for the quarter was $161.3 million, up 7.5% sequentially and flat year over year. Seasonal demand was relatively broad-based in the June quarter and confirmed that the inventory correction is largely complete. In terms of product mix, DMOS revenue was $102.1 million, up 8.8% sequentially and 6.7% over last year. RIT revenue was $52.7 million, up 5.5% from the quarter and down 10.5% from a year ago. Assembly service and other revenue was $1.4 million, as compared to $1.2 million last quarter and $0.6 million for the same quarter last year.

Yifan Liang: Thank you, Stephen. Good afternoon, everyone, and thank you for joining us.

Yifan Liang: Revenue for the quarter was $161.3 million, up 7.5% sequentially, and flat year-over-year.

Yifan Liang: Based in the room quarter and confirm the inventory correction is largely complete. In terms of product mix, the most revenue was $102.1 million, up 8.8% sequentially and 6.7% over last year. How I see revenue was $32.7 million, up 5.5% from the power quarter and down 10.5% from a year ago. Assembly service and other revenue was $1.4 million as compared to $1.2 million last quarter and $0.6 million for the same quarter last year. Lessons and engineering service revenue was $5.1 million for the quarter versus $5.1 million in the prior quarter and $6.3 million for the same quarter a year ago.

Speaker Change: Seasonal demand was relatively broad-based in the June quarter and confirmed the inventory correction is largely complete.

Yifan Liang: In terms of product mix, DMOS revenue was $102.1 million, up 8.8% sequentially, and 6.7% over last year.

Stephen Chang: Lastly, a power tool is continued at a steady pace in June. For the September quarter of the expected segment to grow 15 to 20% sequentially, primarily driven by a solid uptick from quick chargers as well as strength from ACBC power supplies tied to the seasonal build and DCs.

Yifan Liang: RIT revenue was $52.7 million, up 5.5% from the prior quarter, and down 10.5% from a year ago.

Yifan Liang: Assembly Service and other revenue was $1.4 million as compared to $1.2 million last quarter and $0.6 million for the same quarter last year.

Yifan Liang: License and engineering service revenue was $5.1 million for the quarter versus $5.1 million in the prior quarter and $6.3 million for the same quarter a year ago. Non-gap gross margin was 26.4% compared to 25.2% last quarter and 28.5% a year ago. The quarter of a quarter increase was mainly driven by improved factory utilization. Non-gap operating expenses were $39.3 million compared to $38.9 million for the prior quarter and $39.1 million last year.

Yifan Liang: License and engineering service revenue was $5.1 million for the quarter versus $5.1 million in the prior quarter and $6.3 million for the same quarter a year ago.

Yifan Liang: Non-GAAP gross margin was 26.4% compared to 25.2% last quarter and 28.5% a year ago. The quarter of a quarter increase was mainly driven by the improved factory utilization. Non-GAAP operating expenses were $39.3 million compared to $38.9 million for the power quarter and $39.1 million last year. The slighting quarter of a quarter increase was primarily due to higher professional fees.

Stephen Chang: Looking to the next cycle, we have poised for growth bolstered by advanced technology, a diversified product portfolio addressing a broadening array of end markets, and a premier customer base across all product alarms. Power management underpins key trends such as AI, digitalization, connectivity and electrification, especially as we move towards a sustainable low carbon society. We are steadfast in executing our technology roadmap. Customers increasingly view us as a total solution provider, allowing us to capture a greater portion of the bill of materials and ultimately supporting growth that outpaces industry over the long term.

Yifan Liang: non-GAAP gross margin was 26.4% compared to 25.2% last quarter and 28.5% a year ago.

Yifan Liang: The quarter-over-quarter increase was mainly driven by the improved factory utilization.

Yifan Liang: non-GAAP property expenses were $39.3 million compared to $38.9 million for the prior quarter and $39.1 million last year. The slight quarter-over-quarter increase was primarily due to higher professional fees.

Yifan Liang: Non-GAAP quarterly EPS was $9, compared to a $4.1 loss per share last quarter and 19 cents earnings per share a year ago.

Yifan Liang: non-GAAP quarterly EPS was $0.09 compared to $0.04 loss per share last quarter and $0.19 earnings per share a year ago.

Yifan Liang: Moving on to cash flow. Operating cash flow was $7.1 million, including $4.5 million of repayment of customer deposits. By comparison, operating cash flow was $28.2 million in the power quarter and negative $28.2 million last year. We expect to refund about $8.4 million customer deposits in the September quarter. If that's for the quarter was $16 million compared to $11.6 million last quarter and $17.7 million for the same quarter a year ago.

Yifan Liang: The slight quarter of a quarter increase was primarily due to higher professional fees. Non-GAAP quarterly EPS was $0.09 compared to $0.04 loss per share last quarter and $0.19 earnings per share a year ago. Moving on to cash, operating cash flow was $7.1 million, including $4.5 million of repayment of customer deposits. Looking perché, operating cash flow was $28.2 million in the fourth quarter and negative $28.2 million last year. We expect to refund about $8.4 million in customer deposits in the September quarter. Yibadash for the quarter was $16 million, compared to $11.6 million last quarter and $17.7 million for the same quarter a year ago.

Yifan Liang: Moving on to cash flow.

Yifan Liang: Operating cash flow was $7.1 million including $4.5 million of repayment of customer deposits.

Speaker Change: the second person.

Yifan Liang: Operating cash flow was $28.2 million in the fourth quarter and negative $28.2 million last year.

Yifan Liang: We expect to refund about $8.4 million customer deposits in the September quarter.

Yifan Liang: Based in the room quarter and confirm the inventory correction is largely complete. In terms of product mix, the most revenue was $102.1 million up 8.8% sequentially and 6.7% over last year. How I see revenue was $32.7 million up 5.5% from the power quarter and down 10.5% from a year ago. Assembly service and other revenue was $1.4 million as compared to $1.2 million last quarter and $0.6 million for the same quarter last year.

Speaker Change: ebitda for the quarter was sixteen million dollars compared to the eleven point six million dollars in last quarter and seventeen point seven million dollars for the same quarter a year ago

Yifan Liang: Now let me turn to our balance sheet. We completed the June quarter with a cash balance of $175.1 million compared to $174.4 million at the end of the last quarter. Nitrate receivables decreased by $0.7 million sequentially. These sales outstanding were 12 days for the quarter compared to 15 days for the part. Now the inventory decreased by $2.3 million quarter of a quarter; average days in the inventory were 148 days compared to 153 days in the last quarter. Capac for the quarter was $7.2 million, compared to $7.4 million for the part quarter. We expect Capac for the September quarter to range from $6 million to $8 million.

Yifan Liang: Now let me turn to our balance. We completed the June quarter with a cash balance of $175.1 million compared to $174.4 million at the end of last quarter. Nitrate receivables decreased by $0.7 million sequentially. They sell outstanding work. 12 days for the quarter compared to 15 days for the part, not inventory decreased by $2.3 million quarter over quarter. I wish days in inventory were 148 days compared to 153 days in the last quarter. CapEx for the quarter was $7.2 million compared to $7.4 million for the previous quarter.

Unknown Executive: Now let me turn to our balance. We completed the June quarter with a cash balance of $175.1 million compared to $174.4 million at the end of the previous quarter. Average days in inventory were 148 days compared to 153 days in the last quarter. We expect capex for the September quarter to range from $6 million to $8 million. Interest expressed to be approximately equal to interest income. Operator, please start the Q&A session.

Speaker Change: Now let me turn to our balance sheet.

Speaker Change: we completed the drroom quarter with a cash balllance of one hundred and seventy five point one million dollars compared to one hundred and sevenventy four point four million dollars dn over the last quarter

Speaker Change: nitrate receivables decreased by 0.7 million dollars sequentially.

Speaker Change: These sales outstanding were 12 days for the quarter compared to 15 days for the prior quarter.

Yifan Liang: Lessons and engineering service revenue was $5.1 million for the quarter versus $5.1 million in the power quarter and $6.3 million for the same quarter a year ago. Non-gap gross margin was 26.4% compared to 25.2% last quarter and 28.5% a year ago. The quarter of a quarter increase was mainly driven by the improved factory utilization. Non-gap operating expenses were $39.3 million compared to $38.9 million for the power quarter and $39.1 million last year. The slighting quarter of a quarter increase was primarily due to higher professional fees. Non-gap quarterly EPS was $9, compared to $4.1 loss per share last quarter and 19 cents earnings per share a year ago.

Speaker Change: Net inventory decreased by $2.3 million quarter over quarter. Average days in inventory were 148 days compared to 153 days in the last quarter.

Speaker Change: CapEx for the quarter was $7.2 million compared to $7.4 million for the prior quarter.

Yifan Liang: We expect Capac for the September quarter to range from $6 million to $8 million. Now, I would like to discuss September quarter guidance. We expect revenue to be approximately $180 million plus or minus $10 million, and that gross margin to be 25% plus or minus 1%. We anticipate the non-gap growth margin to be 26.4% plus or minus 1%, cap operating expenses to be in the range of $47 million plus or minus $1 million, and non-GAP operating expenses are expected to be in the range of $40 million plus or minus $1 million. Interest expressed to be approximately equal to interest income, and income tax expense to be in the range of $0.9 million to $1.1 million.

Speaker Change: we expect capeacts for the september quarter to range from six million dollars to eight million dollars

Yifan Liang: Now I would like to discuss the September quarter guidance. We expect revenue to be approximately $180 million plus or minus $10 million. Capac gross margin to be 25% plus or minus 1%. We anticipate the non-capac gross margin to be 26.4% plus or minus 1%. Cap operating expenses to be in the range of $47 million plus or minus $1 million. Interest to be approximately equal to interest income. An income tax expense to be in the range of $0.9 million to $1.1 million.

Speaker Change: now i would like to discuss september quarter guidance

Speaker Change: We expect revenue to be approximately 180 million dollars plus or minus 10 million dollars.

Speaker Change: that growth margin to be 25% plus or minus 1%.

Speaker Change: we antipate the non-gaap g margin to be twenty-six twenty-four percent plus minus one percent

Speaker Change: capap operating expenses to be in the range of forty-seven million dollars plus minus one million dollars

Yifan Liang: Moving on to cash flow. Operating cash flow was $7.1 million including $4.5 million of repayment of customer deposits. By comparison, operating cash flow was $28.2 million in the power quarter and negative $28.2 million last year. We expect to refund about $8.4 million customer deposits in the September quarter. If that's for the quarter was $16 million compared to $11.6 million last quarter and $17.7 million for the same quarter a year ago.

Yifan Liang: Non-GAP operating expenses are expected to be in the range of $40 million plus or minus $1 million.

Yifan Liang: Interest expressed to be approximately equal to interest income.

Yifan Liang: and income tax expense to be in the range of $0.9 million to $1.1 million.

Unknown Executive: With that, we will open a call for questions.

Operator: With that, we will open the call for questions. Operator, please start the Q&A session. We will now begin the QA session. If you would like to ask a question, please press star followed by one on your touchtone keypad. If, for any reason, you would like to remove a question, please press star followed by 2.

Unknown Executive: Operator, please start the Q&A session. We will now begin the Q&A session. If you would like to ask a question, please press star followed by one of your questions. If, for any reason, you would like to remove that question, please press star followed by two. Again, to ask a question, press star one. As a reminder, if you are using a speaker phone, please remember to pick up your handset before asking your question. We will policy a briefly to allow questions to generate in queue.

Yifan Liang: With that, we will open the call for questions.

Speaker Change: Operator, please start the Q&A session.

Operator: We will now begin the QA session. If for any reason you would like to remove a question, please press star followed by 2. Again, to ask a question, press star 1. As a reminder, if you are using a speakerphone, please remember to pick up your handset before asking your question. We will pause here briefly to allow questions to arise in the Q&A.

Speaker Change: We will now begin the Q&A session.

Speaker Change: If you would like to ask a question, please press star followed by 1 on your touchtone keypad.

Operator: Again, to ask a question, press star 1. As a reminder, if you are using a speakerphone, please remember to pick up your handset before asking your question. We will pause here briefly to allow questions to generate and... The first question comes from the line of David Williams with Benchmark.

Yifan Liang: Now let me turn to our balance sheet. We completed the June quarter with a cash balance of $175.1 million compared to $174.4 million at the end of the last quarter. Nitrate receivables decreased by $0.7 million sequentially. These sales outstanding were 12 days for the quarter compared to 15 days for the part. Now the inventory decreased by $2.3 million quarter of a quarter, average days in the inventory were 148 days compared to 153 days in the last quarter. Capac for the quarter was $7.2 million, compared to $7.4 million for the part quarter. We expect Capac for the September quarter to range from $6 million to $8 million.

Yifan Liang: If for any reason you would like to remove that question, please press star followed by 2. Again, to ask a question, press star 1.

Speaker Change: as a reminder if you are hereusing going a speaker phone please remember to pick up your hands set before ask your question

Yifan Liang: We will pause here briefly to allow questions to generate in queue.

David Williams: The first question comes from the line of David Williams with Benchmark. Please proceed.

Yifan Liang: The first question comes from the line of David Williams with Benchmark. Please proceed.

David Williams: Good afternoon, and congrats on the assessment of navigating this volatile macro environment here. Certainly, you are doing a much better job, and I think some of your peers have. I guess, Stephen, I wanted to ask a little bit just on the graphics card and some of the data center accelerator and DPUs. We talked about this before, starting to see those revenues. I am trying to understand what is the magnitude of maybe that could be over time and maybe it is a way to size. The understanding there are different flavors of varieties of those products. But is there a good way to think about what your content can be and maybe where you are at within that qualification process?

David Williams: Hey, good afternoon, and congrats on successfully navigating this volatile macro environment here. Certainly, you're doing a much better job than I think some of your peers have. With that, I guess, Stephen, I wanted to ask, yeah, I wanted to ask a little bit about the graphics card and some of the data center accelerators and DPUs. You know, we've talked about this before and are starting to see those revenues, but I'm trying to understand, what do you think the magnitude of maybe that could be over time, and maybe there is a way to size, understanding there are different flavors or varieties of those products Any color around that would be, I think, incredibly helpful.

David Williams: Hey, good afternoon and congrats on the, uh, successfully navigating this volatile macro environment here. Certainly, uh, you're doing a much better job than I think some of your peers have.

David Williams: With that, I guess, Stephen, I wanted to ask, yeah, I wanted to ask a little bit just on the graphics card and some of the data center accelerator DPUs.

Speaker Change: You know, we've talked about this before, starting to see those revenues, but I'm trying to understand, what is it the magnitude of maybe that could be over time, and maybe is there a way to size, understanding there's different flavors or varieties of those products, but is there a good way to think about what your content

Speaker Change: can be and maybe where you're where you're at within that maybe qualification process today just any color around that would be I think incredibly helpful. Thank you.

Unknown Executive: Is there any color around that? I think it credibly helps.

Unknown Executive: Thank you.

Stephen Chang: Sure. Yes.

Unknown Executive: Sure, yes. So our entry into artificial intelligence programs is actually built upon where we've already been with our graphics cards. And a celebrity card actually isn't that different from a graphics card in the sense that you're basically powering a high-performance GPU in both cases. But with data centers, those performance requirements are being driven even higher. So when we look at the content, actually, the power solution isn't that different in that, you know, you have multiple power stages, usually driver Mosses that surround that GPU. The same thing happens with celebrity cards, but on a bigger scale.

Stephen Chang: Thank you. Sure, yes. So our entry into artificial intelligence programs is actually built upon where we've already been with our graphics cards. And accelerated cards actually aren't that different from a graphics card in the sense that you're basically powering a high-performance GPU in both cases.

Stephen Chang: So are an entry into artificial intelligence programs. A lot of it actually is built upon where we have already been with our graphics cards. And a celebrate card actually aren't that different from a graphics card in the sense that you are basically powering a high performance GPU in both cases. But with the data center and that performance requirements are being driven even higher. So when we look at the content, actually the power solution isn't that different in that you have multiple power stages, usually driver MOSFETs that surround that GPU. The same thing happens with a celebrated card in a bigger scale.

Speaker Change: Sure, yes, so our entry into artificial intelligence programs, a lot of it actually is built upon where we've already been with our graphics cards.

Speaker Change: and accelerate cs actually aren't that different from a graph card in the sense that now you're basedically powering high performance gpuu in both cases and but with thedat center and that performance is requirements are being driven even higher

Stephen Chang: But with data centers, those performance requirements are being driven even higher. So when we look at the content, actually, the power solution isn't that different in that, you know, you have multiple power stages, usually driver masses that surround that GPU. The same thing happens with accelerated cards, but on a bigger scale. So to quantify some of that, so for example, in a graphics card, you can have anywhere from, you know, nine to 16, something in that range of driver masses per GPU.

Speaker Change: So when we look at the content, actually the power solution isn't that different in that, you know, you have multiple power stages, usually driver MOS's.

Unknown Executive: With that, we will open a call for questions. Operator, please start the Q&A session. We will now begin the Q&A session. If you would like to ask a question, please press star followed by one of your questions. If for any reason you would like to remove that question, please press star followed by two. Again, to ask a question, press star one. As a reminder, if you are using a speaker phone, please remember to pick up your handset before asking your question. We will policy a briefly to allow questions to generate in queue.

Unknown Executive: So to quantify some of that, so for example, in a graphics card, you can have anywhere from, you know, nine to 16, something in that range of the number of driver Mosses per GPU. But when you move to an AI-powered card, that number actually jumps up to even up to 50 power stages to power that GPU. And those are the solutions that we are shipping today to our, you know, our graphics card slash AI customer on their existing platforms.

Speaker Change: that surround that GPU, the same thing happens with accelerator cards, but in a bigger scale.

Stephen Chang: So to quantify some of that, so for example, in a graphics card, you can have anywhere from 9 to 16 something in that range of number of driver mosses per GPU. But when you move to an AI celebrated card, that number actually jumps up to even up to 50 power stages to power that GPU. And those are the solutions that we are shipping today in our graphics card slash AI customer in their losing platforms. And we are working with them on transitioning over to the new platform that they will be launching soon.

Speaker Change: soto quantify some so for example grap card you can have anywhere you to sixteen something in that range number drug losses per you butwhen you move to ai that number actually jumps up to even up to fifty power stages to power that being you and those are those are the solutions that we are shipping today in in our grap ice card i customer in their ing platforms and you know we are working with them being transitioning over to the new platform they will be launching soon

Stephen Chang: But when you move to an AI-accelerated card, that number actually jumps up to even up to 50 power stages to power that GPU. And those are the solutions that we are shipping today to our, you know, our graphics card slash AI customer on their existing platforms. And, you know, we are working with them on transitioning over to the new platform that they will be launching soon. So, you know, we believe that, for us, the AI accelerated card will be the portion that will grow earlier than other areas, mainly because of our presence already in both graphics cards, as well as the accelerated card business that we enjoy today. Perfect. There is good color there.

Unknown Executive: And you know, we are working with them on transitioning over to the new platform that they will be launching soon. So, you know, we believe that, for us, the AI celebrated card will be the portion that will grow earlier than other areas, mainly because of our presence already in both graphics cards, as well as the AI celebrated card business that we enjoy today.

David Williams: The first question comes from the line of David Williams with benchmark. Please proceed. Good afternoon and congrats on the assessment of navigating this volatile macro environment here. Certainly you are doing a much better job and I think some of your peers have. I guess Stephen, I wanted to ask a little bit just on the graphics card and some of the data center accelerator and DPUs. We talked about this before, starting to see those revenues.

Stephen Chang: So we will leave that for us at the AI celebrated card will be the portion that will grow earlier than other areas, mainly because of our presence already in both in graphics cards as well as the AI celebrated card business that we enjoyed today.

Speaker Change: So, you know, we believe that, you know, for us, you know, the AIS Accelerator card will be the portion that will grow earlier than other areas, mainly because of our presence already in both in graphics cards as well as the AIS Accelerator card business that we enjoy today.

David Williams: Thank you. And then maybe just can you talk a little bit about the multiphase controller? I know you mentioned this last quarter, but it sounds like you're getting some nice adoption there, some good traction. Just how is that helping you, I guess, across the breadth of your markets? What is the dollar opportunity there?

Unknown Executive: Perfect, good color. Thank you.

David Williams: I am trying to understand what is the magnitude of maybe that could be over time and maybe it is a way to size. The understanding there are different flavors of varieties of those products. But is there a good way to think about what your content can be and maybe where you are at within that qualification process? Is there any color around that? I think it credibly helps. Thank you.

Stephen Chang: Then maybe just can you talk a little bit about the multi-phase controller. I know you've mentioned this last quarter, but it sounds like you're getting some nice adoption there, as in contraction. Just how is that helping you out? I guess across the breadth of your markets. What is the dollar opportunity there? And then maybe what are the benefits longer term as you introduce that multi-phase controller?

Speaker Change: Perfect, good color there, thank you. And then maybe just can you talk a little bit about the multiphase controller? I know you've mentioned this last quarter, but it sounds like you're getting some nice adoption there, some good traction. Just how is that helping you, I guess, across the breadth of your markets? What is the dollar opportunity there? And then maybe, what are the benefits longer term as you introduce that multiphase controller?

Unknown Executive: Sure. So our multi-phase controller we first released and deployed that for our client PC business. And you remember that we've been talking about with Intel's latest platforms that BOM content is increasing because of what they're doing with bringing back more power rails. And our solution is actually a total solution. We offer both the multi-phase controller, which is new for us, in addition to the power stage. And that has helped us to expand the BOM content that we can address within a PC application. This is in a notebook or in a desktop type of application.

Stephen Chang: Sure, so our multi-phase controller, we first released and deployed that for our client PC business. And you remember that we've been talking about what Intel's latest platforms that block content is increasing because of what they're doing with and bringing back more power rails.

Unknown Executive: Sure. So our multi-phase controller

Stephen Chang: And then maybe, what are the benefits in the longer term as you introduce that multiphase controller? Sure. So our multiphase controller, we first released and deployed that for our client PC business. And you remember that now we've been talking about with Intel's latest platforms that their bomb content is increasing because of what they're doing with bringing back more power rails. And our solution is actually a total solution; we can offer both the multiphase controller, which is new for us, in addition to the power stage. And that's helped us to expand the bomb content that we can address within a PC application. This is like a notebook or desktop type of application.

Stephen Chang: Sure. Yes. So are an entry into artificial intelligence programs. A lot of it actually is built upon where we have already been with our graphics cards. And a celebrate card actually aren't that different from a graphics card in the sense that you are basically powering a high performance GPU in both cases. But with the data center and that performance requirements are being driven even higher. So when we look at the content, actually the power solution isn't that different in that you have multiple power stages, usually driver mosses that surround that GPU.

Speaker Change: Sure, so our multi-phase controller, we first released and deployed that for our client PC business.

Speaker Change: And you remember that now we've been talking about with Intel's latest platforms that BOM content is increasing because of what they're doing with bringing back more power rails.

Stephen Chang: And our solution is actually a total solution. We offer both the multi-phase controller, which is new for us, in addition to the power stage. And that has helped us to expand the bomb content that we can address within a PC application, like a notebook or a desktop type of application. And because we have that foundation, we are working on and transitioning that over to the next generation of graphics as well as AI accelerator cards. So the business I talked about before, in the past, we were only shipping driver mosses, and in the future, we're expecting to ship and build a ship both at the total solution.

Speaker Change: and our solution is actually a total solution, you know, we can, we offer both.

Speaker Change: The multi-phase controller, which is new for us, in addition to the power stage. And that has helped us to expand the BOM content that we can address within a PC application. This is in a notebook or in a desktop type of application.

Stephen Chang: And because we have that foundation, we've been, and we are working on transitioning that over to the next generation of graphics as well as AI accelerator cards. So the business I talked about before, in the past, we were only shipping driver masses. And in the future, we're expecting to ship and be able to ship both as a total solution. So it's important for us not only to expand the bomb content within our current PC application, but it's also allowing us to step into the more advanced advanced computing high performance, you know, GPU area as well. And then maybe one last one for me, for Yifan.

Unknown Executive: And because we have that foundation, we are working on transitioning that over to the next generation of graphics, as well as AI accelerator cards. So in the past, we were only shipping driver monsters. And in the future, we're expecting to ship and be able to ship both as a total solution. So it's important for us not only to expand the BOM content within our current PC applications, but it's also allowing us to step into the more advanced computing, high-performance GPU area as well.

Stephen Chang: The same thing happens with a celebrated card in a bigger scale. So to quantify some of that, so for example, in a graphics card, you can have anywhere from 9 to 16 something in that range of number of driver mosses per GPU. But when you move to an AI celebrated card, that number actually jumps up to even up to 50 power stages to power that GPU. And those are the solutions that we are shipping today in our graphics card slash AI customer in their losing platforms.

Speaker Change: And because we have that foundation, we are working on transitioning that over to the next generation of graphics as well as AI accelerator cards. So the business I talked about before, in the past we were only shipping driver MOSes, and in the future we're expecting to ship and be able to ship both as a total solution.

Stephen Chang: So it's important for us not only to expand the bomb content within our current PC application, but it's also allowing us to step into the more advanced computing high performance GPU area as well.

Stephen Chang: And we are working with them on transitioning over to the new platform that they will be launching soon. So we will leave that for us at the AI celebrated card will be the portion that will grow earlier than other areas, mainly because of our presence already in both in graphics cards as well as the AI celebrated card business that we enjoyed today. Perfect, good color, thank you.

Speaker Change: So it's important for us not only to expand the BOM content within our current PC application, but it's also allowing us to step into the more advanced, you can say advanced computing, high performance, you know, GPU area as well.

Yifan Liang: And then maybe one last one for me for Ethan. And you kind of think about the gross margin; you're seeing a bit of an uplift here as we kind of move through the year, which is positive. But how do you think about the margin profile? And I'm sure I've asked you this almost every quarter. But just it seems like it's that mixed is better utilization comes back. And it expects you to become a larger player in some of these the GPU marketer, the accelerator market. It seems like there's some nice room for margin appreciation. Is that fair to say?

Yifan Liang: And then maybe one last one for me, for Yifan. As you kind of think about gross margin, you're seeing a bit of an uplift here as we kind of move through the year, which is positive. But how do you think about the margin profile? And I'm sure I've asked you this almost every quarter. But it seems like as that mix gets better, utilization comes back, and then especially as you become a larger player in some of these, the GPU market, or the accelerator market, it seems like there's some nice room for margin appreciation. Is that fair to say? And maybe, how do you think about the margin trending through your FY25? Thank you, for sure.

David Williams: As you kind of think about gross margin, you're seeing a bit of an uplift here as we kind of move through the year, which is positive. But how do you think about the margin profile? And I'm sure I've asked you this almost every quarter.

Speaker Change: And then maybe one one last one for me for Yifan, as you kind of think about the gross margin you're seeing a bit of an uplift here as we as we kind of move through the year which is positive but how do you think about the margin profile and I'm sure I've asked you this almost every quarter but just it seems like as that mix gets better utilization comes back.

Yifan Liang: But just it seems like as that mix gets better, utilization comes back. And then, especially as you become a larger player in some of these, the GPU market or the accelerator market, it seems like there's some nice room for margin appreciation. Is that fair to say?

Speaker Change: and then especially as you become a larger player in some of these, the GPU market or the accelerator market, it seems like there's some nice room for margin appreciation. Is that fair to say? And maybe how do you think about the margin trending through your FY25? Thank you.

Stephen Chang: Then maybe just can you talk a little bit about the multi-phase controller. I know you've mentioned this last quarter, but it sounds like you're getting some nice adoption there as in contraction. Just how is that helping you out? I guess across the breadth of your markets. What is the dollar opportunity there? And then maybe what are the benefits longer term as you introduce that multi-phase controller? Sure, so our multi-phase controller, we first released and deployed that for our client PC business.

Yifan Liang: And maybe how do you think about the margin trending through your FY25?

Yifan Liang: Thank you. I'm sure you know, as you know, our September quarters and margin guidance, and we guided a flatish and you know quarter quarter. This is many because of we expected similar quarter quarter factory nation. And you know, we plan to consume some inventories and reduce the inventory balance in the September quarter. So other factors impacting the margin like the product mix and the ASP region that we we expect similar to the June quarter. So overall, we expect a flatish margin quarter-over-quarter for the September quarter. So the going forward, and yes, I would expect, and as we grow our revenue and then our product mix will continue to improve, and then factory utilization will be will be higher.

Yifan Liang: Sure. As you know, our September quarter's margin guidance, we guided it flattish, quarter per quarter. This is mainly because We expected a similar quarter-to-quarter factory detonation and, you know, we plan to consume some inventories and reduce the inventory balance in the September quarter. So other factors impacting the margin, like product mix and ASP resolution, we expect to be similar to the June quarter. So overall, we expect a flattish margin quarter over quarter for the September quarter.

David Williams: And maybe how do you think about the margin trending through FY25? Thank you. Sure. You know, as you know, our September quarter's margin guidance was flattish than, quarter per quarter. This is mainly because we expected a similar quarter-by-quarter factory installation and, you know, we plan to consume some inventories and reduce the inventory balance in the September quarter.

Speaker Change: Sure, you know, as you know, our September quarter's margin guidance, we guided flattish, then, you know, quarter per quarter. This is mainly because of

Stephen Chang: And you remember that we've been talking about what Intel's latest platforms that block content is increasing because of what they're doing with and bringing back more power rails. And our solution is actually a total solution. We offer both the multi-phase controller, which is new for us, in addition to the power stage. And that has helped us to expand the bomb content that we can address within a PC application, like a notebook or a desktop type of application.

Speaker Change: We expect a similar quarter-to-quarter factory unitization, and we plan to consume some inventories and reduce the inventory balance in the September quarter.

Yifan Liang: So other factors impacting the margin, like the product mix and the ASP resolution that we expect are similar to the June quarter. So overall, we expect a flattish margin quarter over quarter for the September quarter. So going forward, yes, I mean, I would expect, and as we grow our revenue, and then our product mix will continue to pool, and then factory utilization will be higher. So those factors will be contributing to our margin improvement. Thank you. I'll do my best.

Speaker Change: LATHER

Speaker Change: factors impacting the margin like the product mix and the ASP resolution that we

Speaker Change: We expect they are similar to the drone quarter, so overall...

Stephen Chang: And because we have that foundation, we are working on and transitioning that over to the next generation of graphics as well as AI accelerator cards. So the business I talked about before, in the past, we were only shipping driver mosses and in the future, we're expecting to ship and build a ship both at the total solution. So it's important for us not only to expand the bomb content within our current PC application, but it's also allowing us to step into the more advanced computing high performance GPU area as well.

Speaker Change: We expect a flattish margin of a quarter over a quarter for the September quarter.

Yifan Liang: So going forward, yes, I would expect as we grow our revenue, then our product mix will continue to improve, and then factory utilization will be higher. So those factors will be contributing to our margin improvement.

Speaker Change: for the, um, going forward. Yes, I mean, I would expect and as we grow our revenue and then our product mix, uh, well.

Speaker Change: continue to improve and then factory utilization will be higher, so those factors will be contributing to our margin improvement.

Yifan Liang: So I would expect factors will be contributing to our margin improve. Thank you, all the mechanisms you have appreciated.

Speaker Change: Thank you. I'll get back to you. Appreciate it.

David Williams: I appreciate it. Thank you. The next question comes from the line of Mayor Papoor with B Riley. Please proceed. Hi. Yeah, I'm actually calling in for Craig Ellis.

Unknown Executive: The next question comes from Delaud of Mayor Pappor with B. Riley, please proceed.

Yifan Liang: And then maybe one last one for me for Ethan. And you kind of think about the gross margin, you're seeing a bit of an uplift here as we kind of move through the year, which is positive, but how do you think about the margin profile? And I'm sure I've asked you this almost every quarter. But just it seems like it's that mixed is better utilization comes back. And it expects you become a larger player in some of these the GPU marketer, the accelerator market. It seems like there's some nice room for margin appreciation. Is that fair to say?

Speaker Change: Thank you. The next question comes from Dilaudid, Mayor of Papua, with B. Reilly. Please proceed.

Unknown Executive: Hi, yeah, I'm actually calling in for Craig Ellis. And I was really just wanting to think about this AI data center ramp that's coming up in the second half. So you guys obviously have a lot of work in some very similar environments and can really pursue this, I think, with a really great angle.

Maja Paper: And I just really wanted to think about this AI data center ramp that's coming up in the second half. So, you guys obviously have a lot of work in some very similar environments and can really pursue this, I think, with a really great angle. So, with all the different configurations and approaches to building these AI data centers, are you guys seeing different design wins across the spectrum here with all the different ways that someone can approach these systems?

Speaker Change: Hi, yeah, I'm actually calling in for Craig Ellis.

Speaker Change: And I just really wanted you to think about this AI data center ramp that's coming up in the second half.

Speaker Change: So you guys obviously have

Speaker Change: A lot of work in some very similar environments and can really pursue this, I think, with a really great angle.

Stephen Chang: So, with all the different configurations and approaches to building these AI data centers, are you guys seeing different vine lanes across the structure in here with all the different ways that someone can approach these things? Yes, and our customer, our big customer, has a lot of different end products, and they're catering it to folks building systems, they're catering to folks that want the total solution, or they just want to celebrate a card that they're by itself. So for us, we actually have quite a bit of a number of opportunities at play, but we believe that the updated accelerated card will come first for us.

Speaker Change: So with all the different configurations and approaches to building these AI data centers, are you guys seeing different design wins across the spectrum here with all the different ways that someone can approach these systems?

Yifan Liang: And maybe how do you think about the margin trending through your FY25? Thank you. I'm sure you know, as you know, our September quarters and margin guidance and we guided a flatish and you know quarter quarter. This is many because of we expected similar quarter quarter factory nation. And you know, we plan to consume some inventories and reduce the inventory balance in September quarter. So other factors impacting the margin like the product mix and the ASP region that we we expect similar to the June quarter.

Stephen Chang: Yes, and our customer, our big customer, has, you know, a lot of different end products, and they're catering to folks building systems, they're catering to folks that want the total solution, or they just want the accelerator card by itself. So for us, you know, we actually have quite a number of opportunities at play, but we believe that the updated accelerator card will come first for us because that's again, we already have a track record there, we're already shipping on their older platforms, and, you know, going forward, I mean, both the graphics and the accelerator card are expected to share the same type of architecture.

Speaker Change: Yes, and our customer, our big customer has, you know, a lot of different end products.

Speaker Change: and they're catering to folks building systems, they're catering to folks that want the total solution or they just want to celebrate a car by itself.

Speaker Change: So for us, you know, we actually have quite a bit of number of opportunities at play, but we believe that the updated accelerated card will come first.

Stephen Chang: Because that's what we have, we already have a track record there. We're already shipping in their older platforms, and going forward, I think both the graphics and the accelerated card is expected to share the same type of architecture. And, you know, we believe that for us, you know, in terms of a design win turning to revenue, now that portion we will see first ahead of the other business. And at the same time, you know, we are working on the other other pockets that we're developing products for; we're, you know, we're being working on design wins for at the same time in parallel.

Speaker Change: us because that's we have you know have a track cord there were shipping in their older platforms and you know going board i mean both the graphics and and they sol the card is expected the shareof the same type of architecture and you know we believe that for us in terms of design and winin turning to revenue now that portion we where we will see first ahead the other business and at the same time know we are working on other other other sockets that development products for you know we're being working on design wins for at the same in parallel

Yifan Liang: So overall, we expect a flatish margin quarter quarter for the September quarter. So the going forward and yes, I mean, I would expect and as we grow our revenue and then our product mix will continue to improve and then factory utilization will be will be higher. So I would expect factors will be contributing to our margin improve. Thank you, all the mechanisms you have appreciated.

Stephen Chang: And you know, we believe that for us, you know, in terms of design, when turning to revenue, now that portion we will see first ahead of the other business. And at the same time, you know, we are working on, you know, the other sockets that we're developing products for, we're, you know, we're working on design wins for at the same time in parallel. Okay, yeah, that's great.

Unknown Executive: Thank you.

Unknown Executive: Okay, yeah, that's great.

Maja Paper: Um, just to kind of follow up on that, do you guys have any kind of quantification as far as kind of how many design wins you're on or how many sockets you've kind of tried to pursue design wins upon? We don't really quantify it that way, but in general, we are seeing design wins and progress on the accelerator card. This is why we're talking about that more now because that, we believe, is much more tangible and near-term for us and lines up best for us with our end customer.

Unknown Executive: Just to kind of follow up on that, do you guys have any quantification, as far as kind of how many design wins you're on or how many pockets you've kind of tried to pursue design wins on? We don't really quantify that that way, but in general, you know, we are seeing design wins and progress on the celebrated cards.

Speaker Change: right

Speaker Change: Okay, yeah, that's great. Just to kind of follow up on that, do you guys have any like quantification as far as kind of how many design wins you're on or how many sockets you've kind of tried to pursue design wins upon?

Speaker Change: we're not we don't really quantify that way and but in generally know we are seeing design wins in progress on the on celeated ardsthis is why we're talking about that more now because that's that's we believe itis a much more tangible in near term for us

Unknown Executive: The next question comes from Delaud of Mayor Pappor with B. Riley, please proceed. Hi, yeah, I'm actually calling in for Craig Ellis. And I was really just wanting to think about this AI data center ramp that's coming up in the second half. So you guys obviously have a lot of work in some very similar environments and can really pursue this, I think, with a really great angle. So with all the different configurations and approaches to building these AI data centers, are you guys seeing different vine lanes across the structure in here with all the different ways that someone can approach these things?

Stephen Chang: This is why we're talking about that more now because that's, you know, that's, we believe, is much more tangible in your term for us. And it and lines up the best for us with our end customer. I do also want to mention that, you know, and in addition to this business that we're, that our business with this, with this customer, we're also working with one that their, their suppliers that's producing and helping to supply into, I think we mentioned on the call, their intermediate bus converters. And we also have, you know, revenue even shipping today with our medium voltage and loss sets.

Speaker Change: and lines up the best for us with our end customer.

Maja Paper: I do also want to mention that, you know, and in addition to this business that we're, our business with this customer, we're also working with one of their suppliers that's producing and helping to supply their intermediate bus converters, as I think we mentioned on the call. And we also have, you know, revenue even shipping today with our medium voltage MOSFETs. So powering, you know, this is like the power stage before it gets to the point of load.

Speaker Change: I do also want to mention that, you know, and in addition to this business that we're, our business with this

Speaker Change: this customer. We're also working with one of their suppliers that's producing and helping to supply into, I think we mentioned on the call, their intermediate bus converters. And we also have, you know, revenue even shipping today with our medium voltage MOSFETs, so powering, you know, this is the power stage before it gets to the point of load. And our customer is a big supplier to the AI accelerated card, the AI slash graphics card maker.

Unknown Executive: Yes, and our customer, our big customer has a lot of different end products and they're catering it to folks building systems, they're catering to folks that want the total solution, or they just want to celebrate a card that they're by itself. So for us, we actually have quite a bit of a number of opportunities at play, but we believe that the updated accelerated card will come first for us. Because that's what we have, we already have a track record there, we're already shipping in their older platforms and going forward, I think both the graphics and the accelerated card is expected to share the same type of architecture.

Stephen Chang: So powering, you know, this is like the power stage before, before I get to the point of load. And our customer is a big supplier to the AIS, all the way to card, the AI slash graphics card maker.

Stephen Chang: And our customer is a big supplier to the AI accelerator card, the AI slash graphics card maker. So, you know, we also expect to see that business continue to grow beyond this year into next year as, you know, as the AI customer moves into their new platform. Okay, yeah, that's really great color.

Stephen Chang: So, you know, we also expect to see that business continue to grow beyond this year into next year, as, you know, as the AI customer moves into their new platform.

Speaker Change: So, you know, we also expect to see that business continue to grow beyond this year into next year as, you know, as the AI customer moves into their new platform.

Unknown Executive: Okay, yeah, that's really great color.

Maja Paper: If I could just ask one last thing, kind of thinking about how margins are going to change as your business kind of picks up in this new realm. Are we going to see normalization back to kind of like historic peaks around 30 ish? Or is this sort of a new normal now with, you know, 25 to 28, kind of extending forward?

Yifan Liang: If I get to ask one last thing, kind of thinking about how margins are going to change as your business kind of picks up into this new realm. Are we going to see normalization back to kind of like historic peaks around 30-ish, or is this sort of the new normal now with, you know, 25-28 kind of extending forward? Yeah, I mean, our overall midterm target model is still about 30% longer growth margin with target revenue goal of $1 billion. So that model still stay. So we believe in, you know, when we continue to grow and incremental business, we exactly can bring in better product mix.

Speaker Change: and

Speaker Change: Okay, yeah, that's really great, Culler. If I could just ask one last thing, kind of just thinking about how margins are going to change as you business...

Unknown Executive: And, you know, we believe that for us, you know, in terms of a design win turning to revenue, now that portion, we will see first ahead of the other business. And at the same time, you know, we are working on the other other pockets that we're developing products for, we're, you know, we're being working on design wins for at the same time in parallel. Okay, yeah, that's great. Just to kind of follow up on that, do you guys have any like quantification, as far as kind of how many design wins you're on or how many pockets you've kind of tried to pursue design wins on?

Speaker Change: kind of picks up into this into this new realm, are we going to see it normalization back to kind of like historic peaks around 30-ish? Or is this sort of the new normal now with you know, 25 to 28 kind of extending forward?

Yifan Liang: Yeah, I mean, our overall midterm target model is still above. If we continue to grow, then incremental business can bring in a better product mix. So that would help us improve the growth market gradually. Also, this incremental business would help us.

Yifan Liang: Yeah, I mean, our overall midterm target model is still above 30% non-gap gross margin with a target revenue goal of $1 billion. So that model will still stay. So we believe in the you know, when we continue to grow, and incremental business can bring in a better product mix. So that would help us improve the growth market gradually. Also, those incremental businesses would help us increase our utilization at factories. Okay, thanks so much. Thank you. The next question comes from the line of Jeremy Kwan with Stifle. Please proceed. Yes, good afternoon.

Speaker Change: Yeah, I mean, our overall midterm target model is still above

Speaker Change: This is a 30% non-gap gross margin with the target revenue goal of $1 billion. So that model will still stay. So we believe, you know, when we

Unknown Executive: We don't really quantify that that way, but in general, you know, we are seeing design wins and progress on the on the celebrated cards. This is why we're talking about that more now because that's, you know, that's, we believe is much more tangible in your term for us. And it and lines up the best for us with our end customer. I do also want to mention that, you know, and in addition to this business that we're, that our business with this, with this customer, we're also working with one that their, their suppliers that's producing and helping to supply into, I think we mentioned on the call, their intermediate bus converters.

Speaker Change: continue to grow, then the incremental business can bring in a better product mix.

Yifan Liang: So that would help us improve the growth margin gradually. Also, there's an incremental business with the help us increase our utilization and factories.

Speaker Change: that would help us improve the growth margin gradually. Also, this incremental business would help us increase our utilization at factories.

Unknown Executive: Okay, thanks so much. Thank you.

Speaker Change: Okay, thanks so much.

Jeremy Kwan: The next question comes from the line of Jeremy Kwan with special; please proceed. Yes, good afternoon. I just wanted to, you know, just a lot of interest obviously in the accelerator cards. Maybe a couple of questions here.

Operator: The next question comes from the line of Jeremy Kwan with Stifle. Please proceed.

Speaker Change: Thank you.

Speaker Change: The next question comes from the line of Jeremy Kwan with Stafford. Please proceed.

Unknown Executive: And we also have, you know, revenue even shipping today with our medium voltage and loss sets. So powering, you know, this is like the power stage before, before I get to the point of load. And our customer is a big supplier to, to the, the AIS, all the way to card, the AI slash graphics card maker. So, you know, we, we also expect to see that business continue to grow beyond this year into next year, as, you know, as the, the AI customer moves into their new platform.

Jeremy Kwan: Just wanted to, you know, there's a lot of interest, obviously, in the accelerator cards. Maybe a couple questions here. First, can you clarify if this is Consumer Cards that are being adapted for, you know, enterprise or, you know, small data center applications? Or is this, you know, the architecture designed from the ground up to be used in AI acceleration and data? Yeah, our business today is mostly the first in that. They use a similar solution for their graphics cards from their previous platform to address some of the AI needs today.

Jeremy Kwan: Yes, good afternoon. I just wanted to, you know, there's a lot of interest obviously in the AI Accelerator cards. Maybe a couple questions here. First would be, can you clarify if this is

Stephen Chang: First would be, can you clarify if this is consumer cards that are being adapted for enterprise or, you know, small beta center applications, or this, you know, the architecture designs in the ground up to be used in AI acceleration and data centers. Yeah, our business today is mostly the first in that, you know, they use a similar solution before their graphics cards from their previous platform to address some of the AI needs today. But what we're looking forward to while I talk about talking about is that with the new platform that's coming out from this customer, you know, at the end of the year, beginning of next year, that platform is a ground-up, completely designed for AI.

Unknown Executive: Consumer Cards that are being adapted for, you know, enterprise or, you know, small data center applications? Or is this, you know, the architecture designed from the ground up to be used in AI acceleration and data?

Jeremy Kwan: consumer cards that are being adapted for, you know, enterprise or, you know, small data center applications or is this, you know, the architecture designed from the ground up to be used in AI acceleration and data centers?

Unknown Executive: Okay, yeah, that's really great color. If I get to ask one last thing, kind of thinking about how margins are going to change as you business kind of picks up into this new realm. Are we going to see normalization back to kind of like historic peaks around 30-ish or is this sort of the new normal now with, you know, 25-28 kind of extending forward? Yeah, I mean, our overall midterm target model is still about 30% longer growth margin with target revenue goal of $1 billion.

Speaker Change: Yeah, our business today is mostly the first in that, you know, they use a similar

Speaker Change: for the

Jeremy Kwan: But what we're looking forward to and what I'm talking about is that with the new platform that's coming out from this customer, you know, towards the end of this year, beginning of next year, that platform is built from the ground up, kind of completely designed for AI. And that portion also addressing AI accelerated cards, you know, that portion is what we're looking forward to seeing the transition for. Got it. And then with this, the new architecture platform is the, you know, the sockets. It sounds like there are maybe three opportunities here. And please correct me if I'm wrong.

Stephen Chang: And, you know, that that portion also addressing AI celebrity cards, you know, that portion, you know, this is what we're looking forward to seeing the transition for.

Speaker Change: That platform is a grounds up, kind of completely designed for AI, and that portion, also addressing AI accelerated carts, that portion is what we're looking forward to seeing the transition for.

Unknown Executive: Got it. And then with this, the new architecture platform is the, you know, the side fits and it sounds like there's maybe three opportunities here and please click me on rock. But one would be the core power, you know, multi-based controller. The second one would be the multiple power stages. That's the 50 kind of VR months that you've been talking about. And then the third would be this intermediate bus converter, which is at the 40 equal to like 12 votes step down power. Is my framing that correctly?

Stephen Chang: But one would be the vCore, the core power, you know, multiphase controller. The second one would be the Multiple Power Stages, that's the 50 kind of DRMOS that you've been talking about. And then the third would be this intermediate bus converter, which is, we've got the 48-volt to like 12-volt step-down power. Is my framing that correctly? Actually, the first two are more of the same

Speaker Change: Got it. And then with this, the new architecture platform is the

Unknown Executive: So that model still stay. So we believe in, you know, when we continue to grow and incremental business, we exactly can bring in better product mix. So that would help us improve the growth margin gradually. Also, there's an incremental business with the help us increase our utilization and factories. Okay, thanks so much. Thank you.

Speaker Change: The Sockets, it sounds like there's maybe three opportunities here and please correct me if I'm wrong. One would be the V-Core, the Core Power, you know, multi-phase controller. The second one would be the...

Speaker Change: Multiple Power Stages. That's the 50 kind of VRMOS that you've been talking about. And then the third would be this intermediate bus converter which is that's a 48 volts to like 12 volts step-down power.

Unknown Executive: Actually, the first two are more of the same. So, whether it's on an AI-accelerated card or on a main board, powering the GPU is still up to 50 power stages. So, the first two are the same, and our end customers will have different configurations, but in the end, it's still a point of load powering the GPU itself. So, the second category, which I brought up just now, is, yes, the intermediate bus converter using our medium voltage products.

Stephen Chang: Actually, the first two are more the same. So in the whether it's on an AI-accelerated card or on a main board, powering the GPU is still up to 50 power stages powering that. So the one, the first two are the same, and our customer will have different configurations, but in the end, it's still a point of load powering the GPU itself.

Speaker Change: Am I framing that correctly?

Speaker Change: Actually, the first two are more of the same. So, whether it's on an AI-celerated card or on a main board, powering the GPU is still up to 50 power stages, powering that. So, the first two are the same, and our end customer will have different configurations, but in the end, it's still a point of load in powering the GPU itself. So, the second category, which I brought up just now, is, yes, the intermediate bus converter using our medium voltage products.

Jeremy Kwan: So whether it's on an AI accelerator card or on a main board, powering the GPU is still up to 50 power stages. So that's the one; the first two are the same. And our end customers will have different configurations, but in the end, it's still a point of load to power the GPU itself. So the second category, which I brought up just now, is, yes, the intermediate bus converter using our medium voltage products.

Jeremy Kwan: The next question comes from the line of Jeremy Kwan with special, please proceed. Yes, good afternoon. I just wanted to, you know, just a lot of interest obviously in the accelerator cards, maybe a couple of questions here.

Stephen Chang: So the second category which I brought up just now is the intermediate bus converter using our medium voltage products. We actually have a number of other products also, you know, addressing going after AI. As a whole, you know, Astrid, AOS is very well connected into this ecosystem already. A largely actually because we've already been, we're already in the graphics as well as the computing ecosystem. A lot of that is shared. And to support this OEM, we're already working with the OEMs that are in Asia that are actually producing both boards as well as systems for the Zen customer.

Stephen Chang: First would be, can you clarify if this is consumer cards that are being adapted for enterprise or, you know, small beta center applications or this, you know, the architecture designs in the ground up to be used in AI acceleration and data centers. Yeah, our business today is mostly the first in that, you know, they use a similar solution before their graphics cards from their previous platform to address some of the AI needs today.

Unknown Executive: We actually have a number of other products also going after AI. As a whole, you know, actually, AOS is very well connected into this ecosystem already, largely because we've already been in the graphics as well as the computing ecosystem, and a lot of that is shared. And, you know, to support this OEM, we're already working with the ODMs that are in Asia that are actually producing both boards as well as systems for this end customer.

Jeremy Kwan: We actually have a number of other products also going after AI. As a whole, you know, actually, AOS is very well connected to this ecosystem already. Largely because we've already been in the graphics as well as the computing ecosystem. And a lot of that is shared.

Speaker Change: We actually have a number of other products also, you know, addressing going after AI.

Speaker Change: As a whole, actually, AOS is very well connected into this ecosystem already, largely actually because we've already been, we're already in the graphics as well as the computing ecosystem and a lot of that is shared. And to support this OEM, we're already working with the ODMs that are in Asia that are actually producing both boards as well as systems for this end customer. We're also engaged with the power supply maker that's making these intermediate bus converters. We're even addressing various fan makers as well regarding thermal management. So for us, you know, this is actually, you know, AOS is very well suited to go after

Stephen Chang: And, you know, to support this OEM, we're already working with the ODMs that are in Asia that are actually, you know, producing both boards as well as systems for this end customer. We are also engaged with the power supply maker that's making these intermediate bus converters. We're even addressing various fan makers as well regarding thermal management. So for us, this is actually, AOS is very well suited to go after this market, both directly with OEMs as well as indirectly with their suppliers.

Stephen Chang: But what we're looking forward to while I talk about talking about is that with the new platform that's coming out from this customer, you know, at the end of the year beginning of next year, that platform is a ground up completely designed for AI. And, you know, that that portion also addressing AI celebrity cards, you know, that portion, you know, this is what we're looking forward to, to seeing the transition for. Got it.

Unknown Executive: We're also engaged with, you know, the power supply maker that's making these intermediate bus converters. We're even addressing various fan makers as well regarding thermal management. So, for us, this is actually, AOS is very well suited to go after this market, both directly with OEMs as well as indirectly with their suppliers.

Speaker Change: market both directly with OEM as well as indirectly with their suppliers.

Unknown Executive: That is very helpful.

Jeremy Kwan: Got it. That's very helpful. And just to clarify again, is the controller, the multi-phase controller, a piece of this, or is that focused mainly on the junior graph? It is indeed a product, and especially as they move into their new platform, we are selling the total solution, the Multi-fist controller in addition to the power stage.

Stephen Chang: And then with this, the new architecture platform is the, you know, the side fits and it sounds like there's maybe three opportunities here and please click me on rock. But one would be the core power, you know, multi-based controller. The second one would be the multiple power stages. That's the 50 kind of VR months that you've been talking about. And then the third would be this intermediate bus converter, which is at the 40 equal to like 12 votes step down power.

Unknown Executive: And I'm just to clarify again, this is the controller, the multi-based controller piece of this or that goes immediately on the need of a signature graph. And especially as we move into the new platform, we are selling the total solution, controller, multi-based controller in addition to the power stage. Got it.

Speaker Change: Got it, that's very helpful. And just to clarify again, is the controller, the multi-phase controller, a piece of this or is that focused mainly on the senior aircraft?

Unknown Executive: It is indeed a product, and especially as we move into the new platform, we are selling the TotalSolution Multi-Phase Controller in addition to the PowerStage.

Speaker Change: It is indeed a product, and especially as we move into the new platform, we are selling the TotalSolution Multi-Phase Controller in addition to the PowerStage.

Stephen Chang: Got it. And could you, you know, size your opportunity here just from a potential SAM, you know, whether it's on a, you know, per GPU basis? Any insight there would be very helpful.

Unknown Executive: Got it. And did you size your opportunity here just from a potential SAM, you know, whether it's on a, you know, per GPU basis?

Unknown Executive: And did you, you know, size your opportunity here from a potential spam, you know, whether it's on a, you know, per GPU basis? That any insight there would be very helpful. Sure. But I'll quantify more at the board level with the content increases. And then the SAM will really depend on how fast they deploy and how many models they extend our solutions to. But, as I mentioned before, in our graphics card, we use anywhere from 9 to 16 of these on a board. This number can go up to 50, powering each GPU. So it really just depends on, you know, the performance requirements of the card that it's going into.

Speaker Change: Got it. And could you, you know, size your opportunity here just from a potential SAM, you know, whether it's on a, you know, per GPU basis?

Stephen Chang: Is my framing that correctly? Actually, the first two are more the same. So in the whether it's on an AI-celerated card or on a main board, powering the GPU is still up to 50 power stages powering that. So the one, the first two are the same and our customer will have different configurations, but in the end it's still a point of load powering the GPU itself. So the second category which I brought up just now is the intermediate bus converter using our medium voltage products.

Unknown Executive: Sure, I'll quantify more at the board level what the content increases, and then the SAM will really depend on how fast they deploy and how many models they extend our solutions to. But as I mentioned before, on a graphics card, we use anywhere from 9 to 16 of these on a board. This number can go up to 50, powering each GPU. So it really just depends on, you know, the performance requirements of the card that it's going into. So on content as a whole tripling, at least per GPU, and then just based on configuration, that's how much the opportunity can increase.

Jeremy Kwan: Sure, what I'll quantify more at the board level is how much content increases. And then the SAM will really depend on how fast they deploy and how many models they extend our solutions to. But as I mentioned before, in a graphics card, which use anywhere from nine to 16 of these on a board, this number can go up to 50 powering each GPU. So it really just depends on, you know, the performance requirements of the card.

Speaker Change: that any insight there would be very helpful

Speaker Change: Sure. I'll quantify more at the board level what the content increase is, and then the SAM will really depend on how fast they deploy and how many models they extend our solutions to. But as I mentioned before, on a graphics card, we use anywhere from 9 to 16 of these on a board. This number can go up to 50, powering each GPU. So it really just depends on the performance requirements of the card that it's going into. So on content, on a whole load of tripling, at least per GPU, and then just based on configuration, that's how much the opportunity can increase.

Stephen Chang: We actually have a number of other products also, you know, addressing going after AI. As a whole, you know, Astrid, AOS is very well connected into this ecosystem already. A largely actually because we've already been, we're already in the graphics as well as the computing ecosystem. A lot of that is shared. And to support this OEM, we're already working with the OEMs that are in Asia that are actually producing both boards as well as systems for the Zen customer.

Unknown Executive: So bomb content on a hold of tripling, at least per GPU, and then just based on configuration. And that's probably much the opportunity you can increase.

Unknown Executive: And how about the intermediate bus converter opportunity as well as the controller app?

Stephen Chang: And that's going to go into content on a whole lot of tripling, at least per GPU, and then just based on configuration. And that's how much the opportunity can increase. Well, and how about the intermediate bus converter opportunity as well as the controller app? The controller is part of that. It's usually one controller pairing with those or multiple controllers pairing with those power stages.

Unknown Executive: And how about the intermediate bus converter opportunity as well as the controller activity? The controller is part of that. It's usually with a one controller pairing with those, or multiple controllers pairing with those power stages. With the module solution, we're selling medium voltage to MOSFETs going into it. So there's, I don't really want to dollarize that here. But, you know, it's becoming something that's significant enough for us to talk about it in each of the second reports. Let me just put it that way. Got it.

Speaker Change: and how about the intermediate bus converter opportunity as well as the controller opportunity?

Unknown Executive: The controller is part of that. It's usually one controller pairing with them, or multiple controllers pairing with those power stages. With the module solution, we're selling medium voltage MOSFETs going into it. So there's, I don't really want to dollarize that here, but, you know, it's becoming something that's significant enough for us to talk about it, you know, in each of the second reports. Let me just put it that way.

Speaker Change: The controller is part of that. It's usually one controller pairing with those, or multiple controllers pairing with those power stages. With the module solution, we're selling medium voltage MOSFETs going into it. So there's, I don't really want to dollarize that here, but it's becoming something that's significant enough for us to talk about it in each of the secondary reports, let me just put it that way.

Stephen Chang: With the module solution, we're selling medium voltage MOSFETs going into it. So there's, I don't really want to dollarize that here. But no, it's becoming something that's significant enough for us to talk about it in each of the segment reports. Let me just put it that way.

Stephen Chang: We're also engaged with the power supply maker that's making these intermediate bus converters. We're even addressing various fan makers as well regarding thermal management. So for us, you know, this is actually, you know, AOS is very well suited to go out to this market both directly with the OEM as well as indirectly with their suppliers. That is very helpful. And I'm just to clarify again, this is the controller, the multi-based controller piece of this or that goes immediately on the need of a signature graph. And especially as we move into the new platform, we are selling the total solution, controller, multi-based controller in addition to the power stage. Got it.

Jeremy Kwan: Got it. Very good. And just switching gears a little bit to the license and engineering. Is this, from the license payments that you're receiving? I think I believe there were maybe 20 million left a couple quarters ago. Can you just give us an update? How much are the license payments?

Unknown Executive: Got it. Very good.

Unknown Executive: Very good. And just two years a little bit to the license in engineering. Is this from the license payments that you're receiving? I believe there was maybe 20 million left a couple quarters ago. Can you just take us and update how much license payments you're still to receive and how much of this was, you know, engineering versus licensing? Thank you.

Speaker Change: Got it. Very good. And just switching gears a little bit to the license and engineering.

Unknown Executive: And just switching gears a little bit to the license and engineering. Is this From the license payments that you're receiving, I believe there was maybe $20 million left a couple quarters ago. Can you just give us an update on how much license payments you still receive? And how much of this was, you know, engineering versus licensing. Thank you.

Speaker Change: From the license payments that you're receiving I think I believe there was

Speaker Change: Maybe 20 million left a couple quarters ago. Can you just give us an update? How much license payments is you're still to receive and

Yifan Liang: You're still to receive and how much of this was, you know, engineering versus licensing. Thank you. Sure. I mean, this contract is up to early 2025.

Speaker Change: How much of this was, you know, engineering versus licensing? Thank you.

Yifan Liang: Sure. I mean, this contract is up to early 2025, so we still have like a couple quarters to go. So that's the length of this agreement. So this agreement in total is for 24-month period. And is the payment on a pretty consistent quarterly basis? No, actually in some tie to the products, then you know, once we qualified and fully verified by our customer, and some portion is paid for our engineering services, which based on the annual basis of every 12 months, it will pay. Got it. And is this figure included in the operating cash flow?

Unknown Executive: Sure, I mean, this contract is up to early 2025, so we still have like a couple of quarters to go. So that's the length of this agreement. So this agreement, in total, is for a 24-month period.

Yifan Liang: So we still have like a couple of quarters to go, so not the length of this agreement. So this agreement, in total, is for a 24-month period. And is the payment on a pretty consistent quarterly basis? No, actually, some tied to the products, you know, once we are qualified and fully verified by our customers, and some portion is paid for our engineering services, which is based on an annual basis, like every 12 months, they will pay.

Stephen Chang: And did you, you know, size your opportunity here from a potential spam, you know, whether it's on a, you know, per GPU basis, that any insight there would be very helpful. Sure. But I'll quantify more at the board level with the content increases. And then the SAM will really depend on how fast they deploy and how many models they extend our solutions to. But as I mentioned before, in our graphics card, we use anywhere from a 9 to 16 of these on a board.

Speaker Change: Sure, I mean, this contract is up to...

Speaker Change: Early 2025, so we still have like a couple quarters to go, so not the length of this agreement. So this agreement in total is for a 24-month period.

Unknown Executive: And is the payment on a pretty consistent quarterly basis?

Yifan Liang: Got it. And is this figure included in The Operating Cash Flow, or is that kind of a different thing? Yes, yes, yeah, yeah.

Speaker Change: and is the payment on a pretty consistent quarterly basis?

Unknown Executive: No, actually, some tied to the products, you know, once we've qualified, and it's fully verified by our customer, and some portion is paid for our engineering services, you know, which are based on an annual basis, like every 12 months.

Speaker Change: No, actually some tied to the...

Stephen Chang: This number can go up to 50, powering each GPU. So it really just depends on, you know, the performance requirements of the card that it's going into. So bomb content on a hold of tripling, at least per GPU, and then just based on configuration. And that's probably much the opportunity you can increase.

Speaker Change: products then you know once we qualified and fully verified by our customer and some portion is paid for our engineering services you know which based on the annual basis like every 12 months they will pay.

Unknown Executive: Got it. And is this figure included in the Operating Cash Flow? Yes, that's in there. That's part of, you know, initially, when we received the payment, we recorded it as deferred revenue. And then, because the revenue recognition is based on the engineering hours we spent relative to the total estimated engineering hours, so that's kind of varying each quarter. So we recognize the revenue from our deferred revenue.

Stephen Chang: And how about the intermediate bus converter opportunity as well as the controller activity? The controller is part of that. It's usually with a one controller pairing with those, or multiple controllers pairing with those power stages. With the module solution, we're selling medium voltage to MOSFETs going into it. So there's, I don't really want to dollarize that here. But, you know, it's becoming something that's significant enough for us to talk about it in each of the second reports. Let me just put it that way. Got it. Very good.

Speaker Change: Got it. And is this figure included in the...

Unknown Executive: Great, thank you. I'll get back in the queue. Thank you very much.

Yifan Liang: Or is that kind of yes, yes, yes, that's in there. That's part of you know, initially then one we received the payment. And we recorded as a deferred revenue. And then, because the revenue recognition is based on the engineering hours and that we spent relative to the total estimated engineering hours. And so that's kind of varying each quarter. So we recognize the revenue from our deferred revenue.

Speaker Change: Operating Cash Flow.

Yifan Liang: That's in there. That's part of the initial when we received the payment, and we recorded it as deferred revenue. And then, because revenue recognition is based on the engineering hours, and we spend relative to the total estimated engineering hours, so that's kind of varying each quarter.

Speaker Change: Where is Ed?

Speaker Change: Yes, yes, yes, yes, that's in there. That's part of...

Unknown Executive: Initially, when we received the payment, we recorded as deferred revenue. Because the revenue recognition is based on the engineering hours

Unknown Executive: We spent relative to the total estimated engineering hours, so that's kind of varying each quarter. So we recognize revenue from our deferred revenue.

Jeremy Kwan: So we recognize revenue from our deferred revenue. Great. Thank you. I'll get back in the queue. Thank you very much. Thank you. Thank you. There are no additional questions left at this time. I will now hand it back to the management team for closing remarks. Okay, Stephen Pelayo here.

Yifan Liang: And just two years a little bit to the license in engineering. Is this from the license payments that you're receiving? I believe there was maybe 20 million left a couple quarters ago. Can you just take us and update how much license payments you're still to receive and how much of this was, you know, engineering versus licensing? Thank you. Sure. I mean, this contract is up to early 2025, so we still have like a couple quarters to go.

Unknown Executive: Great. Thank you. How get back into you. Thank you very much. Thank you. Thanks. Thank you.

Unknown Executive: Great, thank you. I'll get back in the queue. Thank you very much.

Unknown Executive: There are no additional questions left at this time.

Speaker Change: Thank you.

Operator: There are no additional questions left at this time. I will now hand the report back to the management team for closing remarks.

Speaker Change: Thank you.

Unknown Executive: I will now hand it back to the committee for closing remarks.

Speaker Change: there are no additional questions look at this time i will now hand back to the management te for closing remarks

Stephen Pelayo: Okay.

Stephen Pelayo: Before we conclude, I'd like to briefly mention four upcoming events. The management team will be participating in and will be available for one-on-one meetings at the 5th Annual Needham Semiconductor and Semicap Conference, August 21st, both in person and virtually. The 2024 Evercore ISI Semiconductor IT Hardware and Networking Conference, August 27th in Chicago. The Jeffrey Semiconductor IT Hardware and Communications Tech Summit, August 28th in Chicago. And the 2024 Benchmark Tech Media and Telecom Conference, September 4th, in New York. If you wish to request a meeting, please contact the institutional sales representative at each sponsoring bank.

Stephen Pelayo: Okay, Stephen Pelayo here. Before we conclude, I'd like to briefly mention four upcoming events. The management team will be participating in and will be available for one-on-one meetings at the 5th Annual Needham Semiconductor and Semicap Conference, August 21, virtually. The 2024 Evercore ISI Semiconductor IT Hardware and Networking Conference, August 27, in Chicago. The Jeffrey Semiconductor IT Hardware and Communications Tech Summit, August 28 in Chicago. And the 2024 Benchmark Tech Media and Telecom Conference, September 4 in New York.

Stephen Pelayo: Stephen Plough here. Before we conclude, I'd like to briefly mention four upcoming events. The management team will be participating in and will be available for one-on-one meetings at the fifth annual Needham Semiconductor and Semicap Conference August 21st, virtually. The 2024 Evercore ISI Semiconductor IT Hardware and Networking Conference, August 27th in Chicago. The Jeffery Semiconductor IT Hardware Communications Tech Summit August 28th in Chicago. And the 2024 Benchmark Tech Media and Telecom Conference, September 4th, in New York. If you wish to request a meeting, please contact the institutional sales representative at each sponsoring bank.

Stephen Pelayo: The 2024 Evercore ISI Semiconductor IT Hardware and Networking Conference, August 27th in Chicago.

Yifan Liang: So that's the length of this agreement. So this agreement in total is for 24 month period. And is the payment on a pretty consistent quarterly basis? No, actually in some tie to the products, then you know, once we qualified and fully verified by our customer, and some portion is paid for our engineering services, which based on the annual basis of every 12 months, it will pay. Got it. And is this figure included in the operating cash flow?

Speaker Change: the jeffrey semiconductor it hardware communications text sumit august twenty eigh in chicago

Speaker Change: and the 2024 Benchmark Tech, Media and Telecom Conference, September 4th in New York. If you wish to request a meeting, please contact the Institutional Sales Representative at each sponsoring bank. This concludes our earnings call today. Thank you for your interest in AOS, and we look forward to talking to you again next quarter.

Stephen Pelayo: This concludes our earnings call today. Thank you for your interest in AOS, and we look forward to talking to you again next quarter. Thank you very much. Thank you. LRC Generator, This concludes today's conference call. Thank you. You may now disconnect your line. Thank you. Take care.

Stephen Pelayo: If you wish to request a meeting, please contact the institutional sales representative at each sponsoring bank. This concludes our earnings call today. Thank you for your interest in AOS, and we look forward to talking to you again next quarter. Thank you very much.

Unknown Executive: This concludes our earnings call today. Thank you for your interest in AOS, and we look forward to talking to you again next quarter. Thank you very much. Thank you.

Unknown Executive: Thank you very much. Thank you.

Operator: That concludes today's conference call. Thank you. You may now disconnect your line.

Operator: Thank you very much. Thank you.

Unknown Executive: That concludes today's conference calls. Thank you. You may now disconnect your line. Thank you, Ticker.

Operator: what

Operator: That concludes today's conference call. Thank you. You may now disconnect your line.

Operator: Thank you. Take care.

Yifan Liang: Or is that kind of Yes, yes, yes, that's in there. That's part of you know, initially then one we received the payment. And we recorded as a deferred revenue. And then because the revenue recognition is based on the engineering hours and that we spent relative to the total estimated engineering hours. And so that's kind of a varying each quarter. So we recognize the revenue from our deferred revenue. Great. Thank you. How get back into you. Thank you very much. Thank you. Thanks. Thank you. There are no additional questions left at this time.

Unknown Executive: I will now hand it back to the committee for closing remarks. Okay.

Steven Pelayo: Stephen Plough here. Before we conclude, I'd like to briefly mention four upcoming events. The management team will be participating in and will be available for one-on-one meetings at the fifth annual Needham Semiconductor and Semicap Conference August 21st, virtually. The 2024 Evercore ISI Semiconductor IT Hardware and Networking Conference August 27th in Chicago. The Jeffery Semiconductor IT Hardware Communications Tech Summit August 28th in Chicago. And the 2024 Benchmark Tech Media and Telecom Conference September 4th in New York. If you wish to request a meeting, please contact the institutional sales representative at each sponsoring bank.

Unknown Executive: This concludes our earnings call today. Thank you for your interest in AOS and we look forward to talking to you again next quarter. Thank you very much. Thank you.

Unknown Executive: That concludes today's conference calls. Thank you, you may now disconnect your line. Thank you, ticker.

Q4 2024 Alpha and Omega Semiconductor Ltd Earnings Call

Request a DemoDemo

AOSL

Alpha and Omega Semiconductor

Earnings