Q2 2024 Monolithic Power Systems Inc Earnings Call
Operator: Welcome everyone to the MPS 2nd quarter 2024 earnings webinar.
Welcome everyone to the MTS second quarter 2024 earnings webinar.
Genevieve Cunningham: My name is Genevieve Cunningham, and I will be the moderator for this webinar.
Genevieve Cunningham: My name is Genevieve Cunningham and I'll be the moderator for this webinar joining.
Genevieve Cunningham: Joining me today are Michael Singh, CEO and founder of MPS; Bernie Blagen, EVP and CFO; and Tony Ballot, Vice President of Finance. Earlier today, along with our earnings announcement, MPS released a written commentary on the results of our operations. Both of these documents can be found on our website.
Speaker Change: Joining me today are Michael Hsing, CEO and founder of M. P. S. Bernie Blegen, EVP, and CFO and Tony Balogh, Vice President of Finance earlier.
Speaker Change: Earlier today, along with our earnings announcement MTS released a written commentary on the results of our operations. Both of these documents can be found on our website.
Genevieve Cunningham: Before we begin, I want to remind everyone that in the course of today's presentation, we may make forward-looking statements and projections within the meaning of the Private Securities Litigation Reform Act of 1995, that involve risk and uncertainty, risks, uncertainties, and other factors that could cause actual results to differ from these forward-looking statements, our identified and safe harbor statements contained in the Q2 earnings release and in our SEC filings, including our Form 10-K, which can be found on our website. Our statements are made as of today, and we assume no obligation to update this information.
Before we begin.
Speaker Change: To remind everyone that in the course of today's presentation. We may make forward looking statements and projections within the meaning of the private Securities Litigation Reform Act of 1995 that involve risks and certainty.
Genevieve Cunningham: Risks uncertainties and other factors that could cause actual results to differ from these forward looking statements are identified in the safe Harbor statements contained in the Q2 earnings release and in our SEC filings, including our Form 10-K, which can be found on our website.
Genevieve Cunningham: Our statements are made as of today and we assume no obligation to update this information now.
Bernie Blagen: Now, I'd like to turn the call over to Bernie Blagen. Thanks, Jen. Good afternoon, and a big welcome to all of you.
Genevieve Cunningham: Now I'd like to turn the call over to Bernie Blegen.
Bernie Blegen: Thanks, John.
Bernie Blegen: Good afternoon, and a big welcome to all of you.
Bernie Blagen: Let me open by saying MPS reported yet another record quarter. With queue to 2024 revenue of $507.4 million, exceeding the high end of our guides, our strong revenue growth was attributed to three factors: increased demand for AI power solutions, improving order trends in several of our end markets, and lastly, initial revenue ramps associated with design wins secured in past years. Separately, we continue to expand and diversify our global supply chain to ensure supply stability and capture future growth. As we have emphasized for many years, our results reflect continued success of our proven long-term growth strategy and our transformation from being only a chip supplier to a full solutions provider.
Bernie Blegen: Let me open by saying Mpls reported yet another record quarter with Q2 2024 revenue of $507 $4 million.
Michael Hsing: exceeding the high end of our guide, increased demand for AI power solutions. As we have emphasized for many years, our results reflect the continued success of our proven long-term growth strategy and our transformation from being only a chip supplier to a full solutions provider.
Speaker Change: Leading the high end of our guidance.
Bernie Blegen: Our strong revenue growth is attributed to three factors.
Bernie Blegen: <unk> demand for AI powered solutions.
Genevieve Cunningham: Improvements improving order trends in several of our end markets and lastly, initial revenue ramps associated with design wins secured in past years.
Bernie Blegen: Separately, we continue to expand and diversify our global supply chain to ensure supply stability and capture future growth.
Bernie Blegen: As we have emphasized for many years our results reflect continued success of our proven long term growth strategy and our transformation from being only a chip supplier to a full solutions provider.
Bernie Blagen: I will now open the webinar up for questions.
Speaker Change: I will now open the webinar up for questions.
Bernie Blegen: Okay.
Bernie Blegen: Okay.
Bernie Blegen: Yeah.
Genevieve Cunningham: Jen, could you please ask whether the first caller?
Unknown Executive: Jen, could you please ask Linda, the first caller?
Bernie Blegen: John could you please ask whether the first caller.
Genevieve Cunningham: Our first question is from Matt Ramsey of Cohen. Matt, your line is now open.
Speaker Change: Our first question is from Matt Ramsay of Cowen Matt. Your line is now open.
Unknown Attendee: Thank you very much, everybody. Good afternoon. Michael Burney, congratulations on, I'll just say, it's nice to have a calm part in the storm relative to what's been, what all of us have been dealing with over the last two weeks. So congratulations. I wanted to ask you something.
Matt Ramsey: Thank you very much, everybody. Good afternoon, Michael Bernie.
Matt Ramsay: Thank you very much everybody good afternoon, Michael Bernie Congratulations on.
Matt Ramsey: Congratulations on. I'll just say, it's nice to have a call apart from the storm relative to what's been, what all of us have been dealing with over the last two weeks, so congrats. I wanted to ask a couple of questions that I imagine the enterprise data segment is going to be a huge focus on this call. So maybe I'll just start with the first question. Bernie, if you could maybe give us some directional color by end market in your guidance for September, I'd appreciate it. And secondly, Michael, if you could talk a little bit about what you're seeing in some of the non-enterprise data segments, like things like consumer comms, auto, there's the model has been driven by this big growth in enterprise data, but from what I can tell your companies had a lot of design when success in some of these other areas where the macro has really been challenging.
Matt Ramsay: I'll just say, it's nice to have a counterpart in the storm relative to what's been.
Speaker Change: All of us have been dealing with over the last few weeks so congrats.
Speaker Change: I wanted to ask.
Matt Ramsay: Questions.
Speaker Change: In the enterprise data segment is going to be a huge focus on this call. So maybe I'll just start with the first question Bernie if you could maybe give us some.
Bernie Blegen: Directional color by end market in your guidance for September I'd appreciate it.
Matt Ramsay: And secondly.
Matt Ramsay: Michael if you could talk a little bit about.
Michael Bernie: What youre seeing in some of the non enterprise data segments things.
Speaker Change: Things like consumer.
Matt Ramsay: Comms.
Matt Ramsay: Auto.
Speaker Change: The model has been driven by this big growth in enterprise data, but from what I can tell you. Your company has had a lot of design win success in some of these other areas, where the macro has really been challenging and I'm wondering if you're starting to see any any green shoots there yet for a recovery in some of those other segments. Thanks guys. Okay.
Matt Ramsey: And I'm wondering if you're starting to see any, any green shoots there yet for recovery in some of those other segments. Thanks, guys.
Bernie Blagen: Sure. I'll keep my comments fairly short as far as the Q3 outlook by NMarket. Essentially, the bookings trend that we carried into Q3 has improved quite a bit over the last few quarters and has been fairly broad as far as the NMarket participation.
Unknown Executive: Sure, I'll keep my comments fairly short as far as the Q3 Outlook by NMarket. Essentially, the bookings trend that we carried into Q3 has improved quite a bit over the last few quarters and has been fairly broad as far as NMarket participation is concerned. If you look specifically at enterprise data, you'll see that we took a fairly large step up in each of the last two quarters. And then in the third quarter outlook, we see continued growth in communications, storage, and computing, with incremental improvements also in our other groups.
Speaker Change: Sure I'll keep my comments fairly short as far as the Q Q3 outlook by end market.
Speaker Change: Essentially the bookings trend.
Speaker Change: That we carried into Q3.
Speaker Change: Has improved quite a bit over the last few quarters and has been a fairly broad as far as the end market participation.
Michael Singh: If you look specifically at enterprise data, you'll see that we took a fairly large step up in each of the last two quarters. And then in the third quarter outlook, we see continued growth in communications, storage, and computing with incremental improvements, and also in our other groups.
Speaker Change: If you look specifically at enterprise data Youll.
Speaker Change: Youll see that we took a fairly large step up.
Speaker Change: In each of the last two quarters.
Speaker Change: And then.
Speaker Change: In the third quarter outlook, we see continued growth in communications storage and computing with incremental improvements also in our other groups.
Unknown Executive: Yeah, your second question is... much higher power than the previous versions, and these all relate to the new design, which relates to AI. These design wings were probably triggered down in the game of two or three years; they turned into a revenue.
Michael Singh: Yeah, and your second question is, as Bernie said it, we do see somehow other business would not relate to AI.
Speaker Change: Yeah.
Speaker Change: Second question.
Speaker Change: As <unk> said it.
Speaker Change: We do see.
Speaker Change: Somehow.
Speaker Change:
Speaker Change: The business of now related to AI.
Michael Singh: And now it's difficult to separate AI, not AI. Other business we designed, let's say that we shipped these products of the half year ago, a year before we see the market start to waking up. But that's whatever it is, whatever it is, okay? And we do see a lot of a new design, new requirement, which is much higher power for, especially for communications and, as a matter of course, a board. And these designs are much higher power than the previous versions. These are all related to the new design, related to AI and AI requirements.
Speaker Change: And now it is a difficult to two separate AI now not so much.
Speaker Change: <unk>.
Speaker Change: The other business the way designed to date.
Speaker Change: Let's say that okay. We ship these products.
Speaker Change: Uh huh.
Speaker Change: Half a year ago.
Speaker Change: A year before we see the marking the market start to waking up.
Speaker Change: But.
Speaker Change: Thus our whatever it is whatever it is okay and.
Speaker Change: We do see a lot of the new designed new requirement, which is much much higher power for especially for communications.
Speaker Change: Uh huh.
Speaker Change: Well as a matter of fact is across the board.
Speaker Change: And the.
Speaker Change: <unk> designs all <unk>.
Speaker Change: <unk> higher power than than previous versions and.
Speaker Change: These.
Speaker Change: All related to the new designed related to AI.
Speaker Change: And.
Speaker Change: Our requirements and.
Michael Singh: These design wings were probably triggered down in the game of two or three years in between total revenues.
Speaker Change: These design wings, we probably triggered thousand that came at two or three years.
Speaker Change: Total revenues.
Matt Ramsey: Thank you very much. I appreciate I asked two questions once.
Speaker Change: Thank you very much guys I appreciate it I asked two questions in one so I'll get back in the queue. Thanks.
Matt Ramsey: I'll get back in the queue. Thanks.
Dustin Fowler: Our next question is from Dustin Fowler of Oppenheimer.
Speaker Change: Yeah.
Operator: Our next question is from Dustin Fowler of Oppenheimer. Dustin, your line is now open.
Speaker Change: Our next question is from Justin <unk> of Oppenheimer Duston. Your line is now open.
Dustin Fowler: Dustin, your line is now open. Hey guys, I have just a couple of quick questions. So for preparation isolation, I believe you ran play this year in auto followed by data center next year. I think both markets could be greenfield opportunities in the hundreds of millions each. Could you just give us a sense for the ramp in both markets, the competitive landscape, and maybe any market marketing if you can?
Dustin Fowler: Hey guys, I have just a couple of quick questions.
Justin: Hey, guys.
Justin: Just a couple of quick questions.
Justin: So for power isolation I believe you ramp later this year in auto followed by Dallas Center next year.
Speaker Change: Thank both markets could be greenfield opportunities in the hundreds of millions each.
Speaker Change: Could you just give us a sense of the ramp in both markets.
Speaker Change: Kind of landscape and maybe any markets market sizing if you can.
Bernie Blagen: Dustin, I apologize.
Justin: Okay.
Justin: And I apologize this is Bernie I, didnt hear which two markets.
Bernie Blagen: This is Bernie. I didn't hear which two markets. Sorry, that was auto and data center for power isolation. Okay.
Speaker Change: Oh, sorry that was.
Speaker Change: Auto and data center for power isolation.
Justin: Okay.
Michael Singh: Yeah. We do, we start to ship in a game and a product for the higher powers and for data centers. And this is only the beginning. And what you said is, that's very true.
Justin: Yeah.
Speaker Change: We do.
Speaker Change: We'll start to shift in the K and the product for.
Justin: The higher powers.
Justin: And for data centers.
Justin: This is only the beginning.
Unknown Executive: and uh, that's um, would you say that that's very true, although it's been known, and we uh, when and that became more and more the cars converged into the ADAS, okay, which we believe in two or three years, all the cars will have that feature.
Justin: <unk>.
Speaker Change:
Speaker Change: Would you say, that's very tools, although they're being known and.
Michael Singh: Although it's being known and we, when they ate us and became more, more and more, the cars conversing to the data center, and which we believe being a two or three years, all the cars will have their features. And we, so far, we provide all the, we have a design wing or in all these car makers, especially in the NEBs.
Speaker Change: We.
Speaker Change: When that aid us.
Speaker Change: And became more.
Speaker Change: More and more.
Speaker Change: Cause converts into the.
Speaker Change: Eight us okay.
Speaker Change: <unk>, which we believe in being a two or three years all of the costs will have the features.
Speaker Change: And.
Speaker Change: So far away.
Speaker Change: Divide the all the we have design wing all.
Speaker Change: In all of these.
Speaker Change: Carmakers, especially in <unk>.
Speaker Change: Okay.
Dustin Fowler: Okay, and I guess as we think about kind of auto this year, I think street has auto model fat. I guess how realistic is that given 70% content gains you have with your largest auto customer. Before of our isolation plus the wins with Chinese OEMs, I guess maybe for Bernie, are you modeling auto flat this year? And how should we kind of think about share gains?
Speaker Change: And I guess as we think about kind of auto this year I think the street has auto model flat.
Speaker Change: I guess, how realistic is that given the 70% content gains you have with your largest auto customer.
Speaker Change: Before of how our isolation plus.
Speaker Change: Windsor Chinese Oems.
Speaker Change: I guess maybe.
Unknown Attendee: Maybe for Bernie, are you modeling auto flats this year? And how should we think about share gains?
Bernie Blegen: Maybe for Bernie are you modeling auto flat this year and how should we kind of think about share gains well, we cannot have picked us.
Bernie Blagen: Well, we cannot pick the pick than our. You want to pick the models, and they gave me, and you want to pick them. I can't give you a model. My, my accuracy is a plus minus 12 months. And going forward, we are very confident.
Speaker Change: Pick that up our.
Bernie: You want to pick the models, and you want to pick them. I can't give you a model; my accuracy is plus or minus 12 months and going forward. Yeah, I think
Speaker Change: You want to pick the models and that gave me and you want to pick a number I can't give you a model.
Speaker Change: Accuracy is a plus minus 12 months.
Speaker Change: Going forward we.
Speaker Change: We are very confident.
Bernie Blagen: Yeah, I think the near-term outlook for automotive remains a little bit fuzzy. And for example, in Q2, we were expecting a nice uplift, which did not occur. And so Michael's correct is that positioning within the next two, three quarters is hard to predict for auto more broadly and EVs specifically, but our long-term positioning is only getting better with additional design wins.
Speaker Change: Yes, I think the <unk>.
Speaker Change: Near term outlook for automotive remains a little bit fuzzy.
Speaker Change: And for example in Q2, we are expecting a nice uplift, which did not occur.
Speaker Change: And so Michael is correct is that positioning within the next two three quarters.
Michael Bernie: It is hard to predict for auto more broadly in EV specifically.
Speaker Change: But our long term positioning is only getting better with additional design wins.
Dustin Fowler: All right, thanks.
Speaker Change: Alright, thanks, guys.
William Stein: Our next question is from William Stein of Truist. William, your line is now open. Great, thanks for taking my question. Michael, I'm hoping you can linger on that comment you made about solution selling. I think might have been the term used. I think in the past, we've been conditioned to hear about modules versus semis. Can you linger as to what your maybe spend a minute explaining what sorts of products and what in markets and what growth you see coming from that activity.
Speaker Change: Our next question is from William Stein of tourist William Your line is now open.
William Stein: Great. Thanks for taking my question.
Michael Bernie: Michael I'm, hoping you can linger on that comment you made about.
William Stein: Solution selling.
Speaker Change: I think might've been the term used I think in the past we've.
Speaker Change: Been conditioned to hear about modules versus semi.
Speaker Change: Linger as to what your maybe spend a minute explaining what.
Speaker Change: Sorts of products and what end markets and.
Speaker Change: What growth you see coming from that activity.
Michael Singh: I like that question. Yes, OK, but as we said, we started that journey a long time ago.
Speaker Change: I like that question.
Speaker Change: Yeah.
Speaker Change: Yes, Okay of either we said that we started that journey long time ago.
Michael Singh: And again, at the beginning, maybe I didn't know we didn't know what the hell we were talking about. But that's the directions. And that's including a part of the comments again, and we've felt plugging play solutions. So the effort is that the journey will be, we are, we know to be a semiconductor company. And yes, we do. We do all that we provide. And when we sell a silicon, we're selling, actually, we're selling solutions. We know all the technical details in terms of how we implement these solutions. So my effort is that we want to monetize all our knowledge.
Speaker Change: At the beginning maybe.
Speaker Change: No we didn't know what the Halloween, we're talking about to market, but thats the direction.
Speaker Change: And.
Michael Hsing: That's including a part of e-commerce, okay, and we sell plug-and-play solutions. The effort is that the journey will be, and we are known to be a semiconductor company. And, and yes, we do. We do all that we can. And when we sell silicon, we're actually selling a solution. We know all the technical details. So my effort is that we want to monetize all our knowledge. NPS, in the end, doesn't make anything.
Speaker Change: That's including a part of e-commerce, and we sell plugging play solutions.
Speaker Change: So the the.
Speaker Change: The effort is the journey would be.
Speaker Change: We known to be a semiconductor company and and yes, we do we do all that we provide and when we sell a silicon with selling actually away starting our solutions. We know all the technical details internally in terms of a highway in promote dissolution.
Speaker Change: <unk>.
Speaker Change: So my effort is we want to monetize all our knowledge is NPS, Indiana doesn't make them doesn't make anything and we are making the money from our knowledge wildly just.
Michael Singh: NPS, in the end, doesn't make anything. And we are making the money from our knowledge.
Michael Singh: Why we just capitalized all the entire our capabilities. And so the journey we started now, we're selling the solutions. It's probably 20, 25% of a total NPS total revenue. Every piece of a silicon, we used to be selling somewhere in the between $0.50 to $1, some of the lot of them even lower for them mass market. And which we kind of very little now, especially in the consumer business. And now that we're turning to a solution company, is still a semi productive based solutions. We sell those solutions.
Speaker Change: Capitalized or the anti <unk>.
Speaker Change: Our capabilities.
Speaker Change: And so.
Michael Hsing: And we're all making money from our knowledge. Why don't we just capitalize on our entire capability? The journey we started; now, we're selling a solution. We used to be selling somewhere between $1.50 and $1.50. We sell those solutions. Now, particularly, as you call it, it's a module, and I don't know what the appropriate word is for that. And so today is 20 to 25% of the total revenue of content that we can sell. So that's the result of today, and we will commit to the journeys. And again, we're transforming our company from a silicon-only to silicon-based solution provider.
Speaker Change: The journey, we started now.
Speaker Change: We're selling the solutions, it's probably 20, 25% of our total Npls total revenue every piece of silicon.
Speaker Change: We used to be sale of somewhere between $1 52.
Speaker Change: To $1 is somewhat of a lot of them, even lower for them mass market, and which we kind of very little to announce in the especially in the consumer business.
Speaker Change: <unk>.
Speaker Change: Now can we.
Speaker Change: Turning to our solution company is a still a semiconductor based solutions.
Speaker Change: With sell those solutions now, particularly.
Michael Singh: Now, particularly, is a, as you, as you call it, is a modules and I don't know what the appropriate work for that. Okay. And so today is a 20, 25, 20 to 25% of a total total revenues. NPS module business excluding AI, we're running a couple hundred, close to $200 million. And we're growing every year by more than company percentage growth. And if you look at this, this way, every chip we sell, all the solution is the more than a chip price. Okay. And you generate $4, $5, $10 of a content that we can sell.
Speaker Change: As a you call us up as a module. So knockout don't know to look at what the appropriate word for that time, okay and.
Speaker Change: <unk>.
Speaker Change: So today is the 20 <unk>.
Speaker Change: 25, 20% to 25% of our total total revenues NPS our module business.
Speaker Change: Coding AI, we're running a couple of hundred close to $200 million and we're growing every year's bye.
Speaker Change: More than companies percentage of growth.
Speaker Change: If you look at it is this this way.
Chip: Chip we felt.
Speaker Change: The solution is more than a chip.
Chip: Chip price, Okay, and you generate a 456 10 $10 of AR.
Speaker Change: Of our content download transcept.
Michael Singh: So that's the result of today. And we will commit on the on the journeys.
Speaker Change: So that's the resolve of today and we will commit on the on the journeys and our gateway transforming our company to a cynical only to silicon based solution providers.
Michael Singh: And again, we transforming a company to a silicon only to silicon based solution providers.
Bernie Blagen: And Will, if I could just add two comments quickly, the first is, and this is specific to your question that it's across all of our markets. It primarily focuses on those that have a longer design cycles where we can add expertise in design solution. And the second point is again, while we are driving a lot higher percentage of our business to the modules or to the more complete solutions, we have the ability, like no other company, to be able to deliver the type of solution our customer wants, whether it's a die, a chip, or some package in between.
Speaker Change: And well if I could just add two comments quickly.
Speaker Change: The first is and this is specific to your question that it's across all of our markets is primarily focuses on those that have longer design cycles, where we can add expertise in design solution.
Speaker Change: And the second point is again.
Speaker Change: While we are driving a higher percentage of our business too.
Speaker Change: The modules or to the more complete solutions.
Speaker Change: We have the ability like no other company to be able to deliver the type of solution or a customer wants whether it's a die a chip for some package and between <unk>.
Michael Singh: Yeah. And many, many traditional. semi-conductive companies, and they are hard to distinguish whether they are solution providers or selling modules or selling semi-conductive only. And that's especially the case, okay, and apply for AI powers. And there's a very few companies using a silicon base, the module solution to power up this AI solution or data centers.
Unknown Executive: Yeah, and many, many traditional semiconductor companies, they are hard to distinguish whether they are solution providers or selling modules, selling solutions, or selling semiconductors only. And that's especially the case when it comes to applying for AI power.
Speaker Change: And the <unk>.
Speaker Change: Many maybe traditional.
Speaker Change: Semiconductor companies and a good day.
Speaker Change: Hotter distinguished whether theyre solution providers are selling modules settings.
Speaker Change: Selling solutions or selling.
Speaker Change: Any semiconductor all need and that's especially the case, okay and apply for AI powers and there's a very few company using our silicon based module solution.
Paolo: Paolo after this AI.
Paolo: This AI solution or data centers.
Michael Singh: If I can add a follow-up, please, can you talk about what you're doing in vertical power delivery? I know there's some; there's a lot of companies that are claiming to have it or be ramping it. And I know you guys are one of those companies that are, I think, more clearly delivering, but maybe you can talk about what your efforts are yielding in that area.
Unknown Executive: If I can add a follow-up, please, can you talk about what you're doing in vertical power delivery? I know some companies have it or are ramping it, and I know you guys are one of those companies that are, I think, more
Speaker Change: If I can add.
Speaker Change: A follow up please.
Speaker Change: Can you talk about what youre doing in vertical power delivery I know theres some.
Speaker Change: There's a lot of companies that are claiming to.
Speaker Change: Have it or be ramping it and I know you guys are one of those companies that are I think more.
Speaker Change: Clearly delivering but maybe you can talk about what your efforts are yielding in that area. Thank you.
Michael Singh: Thank you. We are, we are in the leading positions, okay, I said, okay, and there's maybe one, I will say the one or two company, maybe one company have the capability, have in similar to NPS. The market is huge and it's growing. And NPS is what the leading position is because it's not by one day, it's not going to one, an AI happen, we developed that, we developed a year ago for that. And there's not many semiconductor companies that are based on the semiconductor company, have that kind of a capability.
Speaker Change: We are.
Speaker Change: We're the.
Speaker Change: In the leading positions a chaos it and okay and there's a.
Speaker Change: Maybe one I will set a one or two company, maybe one company have the capability have Ah.
Speaker Change: Similar to the NPS the market is huge.
Unknown Executive: and it's growing. And NPS is in a leading position because not by one day. So like when when an AI happened, we developed that we developed that years ago for that. And there are not many semiconductor companies that are based on the semiconductor.
Speaker Change: <unk>.
Speaker Change: It's growing.
Speaker Change: <unk>.
Speaker Change: NPS is the.
Speaker Change: With our leading position is because not by one day and that wasn't a one.
Speaker Change: Ah happen the way, we develop that we develop a years ago.
Speaker Change: For that and.
Speaker Change: There are not many semiconductor companies at a base of the semiconductor.
Speaker Change: Todd when you have that kind of a capability.
Unknown Attendee: Thanks, guys. Good job on the floor.
Speaker Change: Thanks, guys good job on the quarter.
Quinn Bolton: Our next question is from Quinn Bolton of Needham. Quinn, your line is now open. Hey guys, let me offer my congratulations. Maybe just first, Bernie, a quick follow-up on drivers of sequential growth in the third quarter. I think you mentioned comms and surging computing, but I didn't hear you specifically say enterprise data. I just wanted to confirm enterprise data is still one of the big growth drivers in the third quarter, and then I'll get to the deep questions. On the enterprise data, the way I tried to tee that up, first off, yes, it is expected to grow, but we have grown significantly in each of the four prior quarters to this, so the rate of growth is slowing down.
Operator: Our next question is from Quinn Bolton of Needham. Quinn, your line is now open.
Speaker Change: Our next question is from Quinn Bolton of Needham and Cowen. Your line is now open.
Quinn Bolton: Hey, guys. Let me offer my congratulations maybe just first Ernie a quick follow up on net Ramsey's question on the drivers of sequential growth in the third quarter I think you mentioned.
Speaker Change: Comms and.
Quinn Bolton: Surging computing, but I didn't hear you, specifically say enterprise data and I just wanted to confirm enterprise data is still one of the big growth drivers in the third quarter, and then I'll get to the two questions.
Unknown Executive: On the enterprise data, the way I tried to tie that up, first off, yes, it is expected to grow, but we have grown significantly in each of the four prior quarters prior to this. So the rate of growth is slowing down. And the biggest decline is for this quarter only. And I offer that because there are a lot of opportunities that have yet to begin to ramp up with a number of the different companies that we're currently working on designs with. But I was calling out, in particular, that both storage and computing and communications will be good drivers in Q3.
Speaker Change: On the enterprise data the way I tried to tee that up first off yes. It is expected to grow.
Speaker Change: We have grown significantly in each of the four prior quarters to this so the rate of growth is slowing down and the biggest for this quarter only.
Bernie Blagen: And the biggest for this quarter only, and I offer that because there's a lot of opportunities that have yet to begin to ramp with a number of the different companies that we're currently working on designs with. But I was calling out in particular that both storage and computing and consumer, or communications will be good drivers in Q3. Oh, quick, you know the VR13.5, 13.5, and we start to have a significant review. Okay, and that was the beginning. You. You know that. And VR 14, and which hasn't really ramped up yet. And we have a lot of design.
Speaker Change: And I offer that because theres a lot of opportunities that have yet to begin to ramp with.
Speaker Change: With a number of the different companies that were currently working on designs work.
Speaker Change: But I was calling out in particular that both storage and computing and.
Speaker Change: Consumer.
Speaker Change: <unk> will be good drivers in our Q.
Unknown Executive: Uh, Quig, you know the VR13 has 13.5 in. We start to have significant revenues. Okay.
Speaker Change: Q3, okay.
Speaker Change: The VR 13 513.5 in.
Unknown Executive: And that that was just the beginning, you and VR14, which hasn't really ramped up yet. [inaudible] So when they did the shortages, okay, a lot of revenues, a lot of volumes shifted to NPS, and our competitor couldn't deliver it, we delivered it, and we delivered it. And now the benefit is for VR14, and we will be significant players in the market segment.
Speaker Change: We start to harvest.
Speaker Change: A significant revenues, okay and that was the beginning.
Speaker Change: You'll know that.
Vyasa: Vyasa, forging and which hasnt really a rent ramped up yet and we.
Speaker Change: We have a lot of design, we increase that we are searching the house is the lack of NPS is that NPS is a test case and.
Bernie Blagen: We increase it. VR 13.5, it's like an MPS is a test case. And so when, during the shortages, okay, a lot of revenues, a lot of volumes shipped to MPS. And our competitor couldn't deliver it, so we delivered it. And that we delivered it. And now it's the benefit it is for VR 14. We will be a significant player in a market segment. And particularly in the second half of this year, it looks like that segment is starting to take off. Yeah.
Speaker Change: So when they're joining the shortage is okay a lot of.
Speaker Change: Revenues are rather volumes shifted to NPS and although our competitive couldnt deliver it we delivered it and.
Speaker Change: We delivered and now it's the.
Speaker Change: The benefit that is a case for VR 14, where it will be a significant players in that market segment.
Unknown Executive: And particularly in the second half of this year, it looks like that segment is starting to take off. Yeah.
Speaker Change: And particularly in the second half of this year. It looks like that segment is starting to take off yeah.
Quinn Bolton: Great.
Quinn Bolton: That was going to be sort of, I guess my first question was just, could you talk within the enterprise data about some of the opportunities, whether it's on the CPU power side or just broadening out of your AI portfolio. And then I'll have another question on vertical power if I could squeeze in that second question. Go ahead. So there's a question on vertical power. I'm just some different competitors, you know, may mean different things when they're talking about vertical power. And I just wanted to cut against your guys' view on the market. When you guys talk about vertical power, is that true vertical power, where the voltage regulator is sitting underneath the processor substrate and supply and current vertically into the processor.
Speaker Change: Great that was that was going to be sort of I guess my first question was just could you talk within the enterprise data.
Speaker Change: About some of the opportunities whether it's on the CPU power side or just broadening out of your AI portfolio and then I'll have another question on the vertical power if I could squeeze in that second question.
Unknown Executive: Go ahead.
Speaker Change: Go ahead.
Speaker Change: Yeah.
Speaker Change: So this is a question on vertical power.
Speaker Change: Different different competitors may mean different things when they are talking about vertical power and I just wanted to kind of get your guys' view on a market. When you guys talk about vertical power is that true vertical power, where the voltage regulator is sitting underneath the processor substrate in supplying current vertically into the processor for.
Quinn Bolton: Or do you guys consider sort of stack packages where you've got one or more voltage regulators or phases in a module with the power inductors and capacitors and other things that might be stacked vertically but still delivering current laterally into the processor. What's your definition of vertical because I think there's some confusion in the market, what may be vertical and what might look vertical but actually still supply current laterally.
Speaker Change: Do you guys consider sort of stacked packages, where you have got one or more.
Speaker Change: Voltage regulators or phases in a module with the power inductors and capacitors and other things that might be stacked vertically, but still delivering current laterally into the processor whats.
Speaker Change: What's your definition of a vertical because I think there's some confusion in the market what may be vertical one.
Speaker Change: What might look vertical but actually still.
Speaker Change: Supply current laterally.
Unknown Executive: Yeah, you're right; there are some customers using a top surface lateral power supply, which is very similar to the server, the server CPU power supply, and other ones turning to still lateral power, and a more advanced one is directly under the CPU. Three solutions, chip, all modules; we have everything there.
Michael Singh: Yeah, you're right. There's a, there's a one is a summer customers and I can in using the pop surface lateral power supply, which is going to go very similar to to to to server the service CPU power supply. And other ones turning into the backside still lateral lateral powers and more. The more advanced one is directly under the under the CPU, and so to answer the question, is the NPS supply currently we're running all three solutions chip or modules. We have everything there. And Quinn, if I could also add this, that the necessity for the different deliveries of power is as you get into increasingly, you know, higher current.
Unknown Executive: Yeah.
Speaker Change: Yeah, Youre right Theres, a theres a one is.
Speaker Change: Some customers to lock in the using the top surface lateral power supply which is very.
Speaker Change: Very similar to two.
Speaker Change: Two.
Speaker Change: To save the server CPU power.
Speaker Change: Policy apart.
Speaker Change: And the other ones turning to the back side still lateral.
Speaker Change: Lateral powers.
Speaker Change: And more of the more advanced the one.
Speaker Change: Directly under the under the CPU.
Speaker Change: And so.
Speaker Change: So to answer that question Theres, a mps's supply currently we're running all three.
Speaker Change: <unk> chip all modules, we have everything there.
Unknown Executive: Quinn, if I could also add to this that the necessity for the different deliveries of power is as you get into increasingly higher currents, and in addition to either lateral or vertical power, we also have liquid-cooled power where we believe that we have a position.
Speaker Change: And Quintin if I could also add to this that the necessity for the different.
Quintin: Deliveries of power is as you get into increasingly higher correct.
Bernie Blagen: And in addition to either lateral or vertical power, we also have a liquid pool that we believe that we have a.
Speaker Change: And in addition to either lateral.
Speaker Change: <unk> or vertical power, we also have liquid pool.
Speaker Change: We believe that we have.
Speaker Change: Yeah.
Michael Singh: To answer your question, is that the most efficient and difficult to do is you're making a module directly under the CPU, and that's the highest efficiency power delivery. There's a lot of a problem and a lot of technical issues with that type of approach. So many companies take a conservative approach, and some companies just do only like servers and pop surface level power delivery. And for those very high powers, well over 1000 watts, all these powers because the power module directly under the CPUs, and that these are the highest efficiency.
Speaker Change: Acquainted to answer your question is that.
Unknown Executive: The most efficient Power Delivery. There are a lot of problems and a lot of technical issues, take and top surface lateral power delivery. And for those of very high power, well over 1,000 watts, these are the power modules directly under the CPU.
Speaker Change: The most efficient.
Speaker Change: And difficult to do it is.
Speaker Change: Making our module directly.
Speaker Change: The CPU.
Speaker Change: And that's the highest efficiency.
Speaker Change: Paula deliberate theres a lot of our problems.
Speaker Change: A lot of technical issues.
Speaker Change: Associated with that type of approach so many companies take up.
Speaker Change: Take a.
Speaker Change: Our conservative approach, Okay men at some companies just don't only lack of servers and.
Speaker Change: Pop surface lateral power delivery and.
Speaker Change: For those of very high powers.
Speaker Change: Well over thousand loss.
Speaker Change: All of these powers.
Speaker Change: These are.
Speaker Change: The power.
Speaker Change: The power modules directly under the Cpus.
Speaker Change: And as these are the highest efficiency.
Chris Caso: Thank you, Michael. Thank you very much again. Our next question is from Chris Caso of Wolf. Chris, your line is now open. Chris, can you hear us? Sorry, I wasn't muted on mute. Can you hear me now? Sorry, thank you.
Speaker Change: Got it. Thank you Michael Thank you Bernie again.
Speaker Change: Our next question is from Chris Caso of Ruth's, Chris Your line is now open.
Chris: Chris can hear us.
Chris Caso: Sorry, I was wondering maybe you can you hear me now.
Chris: Alright, alright. Thank you. The first question is on seasonality and.
Chris Caso: The first question is on seasonality and how that may be changing for you. In the past, the December quarter typically was a seasonally down quarter, but your business mix has changed quite a bit since those days, and revenue is now coming from segments that are not a seasonal December quarter. With that, how should we look at December seasonality going forward, or is the old model no longer appropriate as we look forward? And if there's anything you want to comment on with respect to December.
Speaker Change: And how that may be changing for you.
Speaker Change: In the past December quarter, typically was a seasonally down quarter, but your business mix has changed quite a bit since those days and the revenue is now coming from segments that are not has.
Speaker Change: Seasonally.
Speaker Change: Not a seasonal December quarter with that how should we look at December seasonality going forward or is the old model.
Speaker Change: No longer appropriate as we look forward and if theres anything you want to comment on with respect to December yes.
Michael Singh: Yeah, we're seeking a device from you. What's that? With a new business, with all these inventory oscillation from our customers and OK, and we don't know. You have a huge shortage, then it comes up the huge oversupplies and OK, now, OK, I assume that our customers consume all these excessive inventory. Now the market is waking up, and is this another shortage? I don't know. It's difficult to forecast, and short the lead time still very short. OK, so we'll do our best. We're not whenever you can tell us. That's fair enough.
Speaker Change: We're seeking a device from you whats out there.
Speaker Change: With our new business with all of these are also the AR inventory oscillation out from our customers in our K and with all notes on a game in that.
Speaker Change: You'll have a huge a shortage then it comes up the huge oversupply in that game now unlucky they.
Speaker Change: They may have.
Speaker Change: I assume some of our customers' concerns all of these are excess of England story now the market is waking up and.
Speaker Change: Is there another shortage.
Speaker Change: I don't know, okay, and that it's difficult to.
Unknown Executive: to forecast and
Speaker Change: To forecast and.
Speaker Change: Sure the lead times still very short.
Speaker Change: Okay.
Speaker Change: Okay. So we'll do it we'll do our best we're not whenever I.
Speaker Change: Can tell us.
Speaker Change: Okay, all right that's fair enough.
Chris Caso: As my follow-up question, I wanted to follow with vertical power as well. What we know, particularly within the enterprise segment AI, we've got some higher wattage processors coming.
Speaker Change: My follow up question I wanted to follow up with vertical power as well and you know what.
Speaker Change: What we know, particularly within the enterprise segment AI.
Speaker Change: We've got some.
Speaker Change: A higher wattage processors coming.
Michael Singh: Can you talk about what you expect for content on that and what in particular you expect for vertical power next year because I know there's some debate; certainly doesn't seem to be debate over whether you're ready for vertical power, whether ecosystem is ready for vertical power. And does that make a difference with regard to your content as you go into the next generation of processors? Because the voltage is certainly going higher. Yes, I can tell you this. Our customers will not be appreciated in talking about how many dollar per their unit or GPU unit, okay.
Speaker Change: Can you talk about what you.
Speaker Change: Specced for content on that and.
Speaker Change: And particularly you expect for vertical power next year, because I know there is some debate.
Speaker Change: It certainly doesn't seem to be debate over whether you're ready for vertical power, where the ecosystem is ready for vertical power and does that make a difference with regard to your content as you go into the next generation of processors because of all.
Speaker Change: <unk> is certainly going higher.
Speaker Change: Yes, I can tell you this our customers.
Unknown Executive: Our customers. And second, I don't know. I don't want to know about it.
Speaker Change: Would not be appreciated or talking about what how many how many dollar per per their unit.
Speaker Change: Unit, a GPU unit.
Michael Singh: And so then they don't want us to talk about it. And second, I don't know; I don't want to know about it.
Speaker Change: And.
Speaker Change: So they're now they don't want us to talk about it and the.
Speaker Change: Second I don't know I don't want to know about it.
Speaker Change: [laughter].
Michael Singh: Okay, I understand, but I mean, just in terms of the opportunity, maybe you could speak in more general terms about the opportunity that's available to you. Oh, sure. Yeah. And now you look at our revenues, right? Okay. Okay, for a couple of companies, okay. And from the last year was like, what, it's a one or two percent or maybe last year's and okay, a couple of percentage or total revenue. Well, today, okay, we're running like 20% and 20%. So that's a $400, $500 million. Okay. And we will pull this at the beginning. And there's a lot of other companies that I could wear our opportunities, and then our design wing hasn't really ramped up in a company like Google's in AWS.
Speaker Change: Okay.
Speaker Change: Alright.
Speaker Change: Understand but just in terms of the opportunity maybe you could speak in more general terms about the opportunity that's available to you Oh sure Yeah and now you look at our revenues alright, okay.
Speaker Change: For a couple of our companies and our pharma last year was a blackout what if so.
Unknown Executive: One or two percent, or maybe last year's. Okay. We were told this at the beginning. And there are a lot of other companies like us; our opportunities in our design wing haven't really ramped up in the in in in companies like Google and AWS and Meta. I see huge opportunities. And I do see, OK, this is not NPS only. The market's way too big. We don't want to turn into an AI company only.
Speaker Change: One lost 2% or maybe last year's okay.
Speaker Change: A couple of percentage of our total revenue, while today's sakai weren't running like what 20% and.
Speaker Change: 20%, so that's a full $500 million lucky in that way.
Speaker Change: We will uphold this at the beginning.
Speaker Change: And there's a lot of other companies that I could we have our opportunities and they are our design wing hasn't really ramp it up in the in Ing in company like the Googles and.
Michael Singh: And Meta and those coming later.
Speaker Change: AWS and the and the meta.
Speaker Change: And those coming later.
Michael Singh: So I see the huge opportunities. And I do see, okay, this is not MPS only. The market's way too big.
Speaker Change: So.
Speaker Change: I see the huge opportunities and.
Speaker Change: I do see some okay. This is not an NPS only the market way too big we don't walk turning to.
Bernie Blagen: We don't want to go into a company only. Yeah, I think you only got probably had on top of that besides for the direct AI opportunity. I think you've heard us talk about the AI trickle-down effect, whether that can be memory. It can be optical, look, be pulled through networking. I think there's a lot of opportunity for MPS beyond even the direct AI business. That's good. That's a good comment. Yeah.
Speaker Change: Turning to our company only.
Speaker Change: I think the only thing I'd, probably add on top of that besides for the direct AI opportunity I think you've heard us talk about the AI trickle down effect, whether that could be in memory. It can be optical oakley pull through of networking I think theres a lot of opportunity for NPS beyond even the direct AI business.
Speaker Change: That's a good comment yes.
Unknown Attendee: All right. Appreciate those comments.
Speaker Change: Alright, I appreciate those comments thank you.
Unknown Attendee: Thank you.
Tori Spamberg: Our next question is from Tori Spamberg of Steeple. Tori, your line is now open. Yes. Thank you, Michael Bernie, and come back again on another stellar quarter. I wanted to follow up on enterprise data, but I'm going to move away from the processor power management and ask you more about opportunities elsewhere in the data center, especially power supply. I know historically you haven't talked the whole about GAN so it's a carbide, but I'm pretty sure you have some activities there. So can you elaborate a little bit on what you're doing on the power supply side of data centers?
Speaker Change: Our next.
Speaker Change: Question is from <unk> <unk> of Stifel. Your line is now open.
Bernie Blegen: Yes, Thank you Michael Bernie and congrats again on another stellar quarter.
<unk> <unk>: I wanted to follow up on enterprise data.
Speaker Change: Im going to move away from the processor power management that ask you more about opportunities elsewhere in the data center and <unk>.
Speaker Change: <unk> power supply I know historically, you haven't talked a whole lot about gan silicon carbide, but im pretty sure you have some activities. There. So can you elaborate a little bit on what youre doing on the power supply side.
Speaker Change: Data centers.
Michael Singh: Yeah, I like that one. But I can tell you the revenue yet, but it's a small. Okay.
Speaker Change: I liked outlook.
Speaker Change: But I can tell you the revenue yet, but it's a small market and.
Michael Singh: And we, we, we, in the sense, 2016, in the game, we, we start to develop our own silicon carbide and not, we're not setting selling a fence. It, it will be a part of our solutions. I said a very, very early. We're not intended to sell a fence as a power device. Only only. So now, we designed those three kilowatt, six kilowatt, 12 kilowatt power supply, and you guess what? It's a data center, it's an evaluating, so we have a very little revenues, but the biggest question is the NPS only. All our test plot, we're using a huge amount of power supply, and NPS is our own customers.
Speaker Change: We in the since 2016, and our cable we start to develop our own silicon carbide, not one offsetting selling us first.
<unk> <unk>: It would be.
Speaker Change: A part of our solutions.
Speaker Change: I've said, a very very old lease and okay, when I intend to sell effect.
Speaker Change: I apologize <unk>.
Speaker Change: One eight.
<unk> <unk>: So now syndicate.
<unk> <unk>: We design those are <unk>.
<unk> <unk>: Three kilowatt six kilowatt to two kilowatt power supply.
<unk> <unk>: And that.
<unk> <unk>: You guess what.
<unk> <unk>: It's.
<unk> <unk>: Data center.
Speaker Change: And with that evaluating so we have a very little revenues, but the biggest is the NPS only.
<unk> <unk>: <unk>.
<unk> <unk>: All our test flawed, we're using a huge amount of power supply and.
<unk> <unk>: Mps's our own.
<unk> <unk>: One customers all all of these are testing equipment that way, we we have to design the embedded how to test. These tests. These are modules, particularly and also as well the Bernie.
Michael Singh: All these testing equipment that we have to design, we have to invent it, how to test these modules, particularly, and also as well as burning. NPS supplied these power modules to our vendors, and our vendors implemented them into these systems, and it became our test equipment. And so that's the revenues we start to generating, but for four Gs and for data centers, and these are still in the, we engage in them in a year ago or so, a couple of years ago. And so the revenue small, but we're looking for the big revenues from that, from that segment, because NPS provides the high-stay fishing seat and a smaller size.
<unk> <unk>: And the NPS and supply these are power module to to our vendors and our vendors the ink the important money into these assisting in a wait and then it became our test equipment.
<unk> <unk>: So that's a desktop revenues go westar to generating and the.
<unk> <unk>: For fall <unk>.
<unk> <unk>: For data centers and these are.
<unk> <unk>: These are still in the.
Unknown Executive: It would be. Well, we engaged in it a year ago or so, a couple years ago. And so the revenue is small, but we're looking for big revenues from that, from that segment, because
<unk> <unk>: While we engage in.
<unk> <unk>: A year ago also couple of years ago.
<unk> <unk>: And so the revenue is small but are we looking for the big revenues from that from a from that second leg because.
Speaker Change: NPS provides the highest stay fishing seat and a smaller size.
Bernie Blagen: Yeah, that's great perspective. As my follow up, you know, I recall, you know, because we've gone through a few cycles together, I recall usually you use downturns to gain a lot of share. I know everyone's excited about data centers today, but what are some of the areas where you're starting to see, you know, more meaningful share against the design with perspective, you know, now that we're sort of navigating here at the bottom of the cycle. Sure. So I think that, you know, we've been very clear about the positioning that we have in automotive, and how that's continuing to grow across a multitude of different platforms with a multitude of different tier ones, players, and OEMs. I think the most recent area for improvement, where somebody's greenfield opportunities are becoming more visible in the market, would be in particular with communications.
<unk> <unk>: Yes.
<unk> <unk>: Perspective.
Speaker Change: As my follow up.
Speaker Change: I recall, because we've gone through a few cycles together I recall, usually you use downturns to gain a lot of share.
Speaker Change: I know everyone's excited about data centers today, but what are some of the areas, where you're starting to see more.
Speaker Change: More meaningful share gains from a design win perspective.
Speaker Change: That was sort of navigating here at the bottom of the cycle.
Speaker Change: Sure.
Speaker Change: We've been very clear about the positioning that we have in automotive.
Speaker Change: And how that's continuing to grow.
Speaker Change: Across multitude of different platforms with a multitude of different tier one suppliers and Oems I think the most recent.
Speaker Change: Area for improvement, where some of these greenfield opportunities are becoming more visible in the market would be in particular with communications.
Bernie Blagen: We're seeing that in the wireless and 5G, and I think that we've seen some early indications of continuing investment in that segment. So I'd say that's probably the area that will be most visible, but obviously I don't want to forget industrial, which, even though right now is a relatively modest part of our business, and it's not shown a lot of momentum towards growth.
Speaker Change: We're seeing that in the wireless and <unk>.
Speaker Change: And I think that we've seen some early indications of the.
Speaker Change: Continuing investment in that segment. So I'd say, that's probably the area that will be most visible, but obviously I don't want to forget industrial which even though right now is a relatively modest part of our business and has not shown a lot of momentum towards growth.
Michael Singh: Probably is the next area where we have a lot of greenfield opportunities that will materialize in the next four quarters. Yeah, go ahead. Yeah, it's just going to ask, and the RV market is likely to be on their own or industrial. RV. The RV market. They can't be car-working. I know you've talked about that. Oh, yeah. No, no. Yes. Okay. That's one of my favorite ones. Yeah. I'll go ahead. And the RV.
Speaker Change: Probably the next area, where we have a lot of greenfield opportunities that will materialize in the next four quarters.
Speaker Change: No.
Speaker Change: Go ahead, yes, I was just.
Speaker Change: Good ask in the RV market is likely to be out there a little or industrial.
Speaker Change: Avi.
Unknown Executive: The RV market, the camping car market, I know you've talked about that. Oh, yeah. No, no. Yes. Okay. That's one of my favorite ones.
Speaker Change: <unk> marketing they kept the card market I know you've talked.
Speaker Change: Yeah.
Unknown Executive: Okay. Yeah. Okay.
Speaker Change: Yes, Okay, that's what that's all about.
Speaker Change: Favorable ones.
Unknown Executive: And... Yeah. Yeah. Yeah. Yeah. Yeah. Yeah. Yeah. Yeah. Yeah. Yeah. Yeah. Yeah. Yeah. Yeah.
Speaker Change: And.
Michael Singh: I think there will be an industry market because all these products share the same signatures as we do for data centers, for our own test product, and a full test equipment. It will be shared very much to the same characteristics, and also for robotics, especially for those who are moving, not stationary robots. These robots move around, and that they all need that type of a power supply, and the charging and the battery management, and these share very much the same characteristics as RVs, obviously. Those could be industrial or consumer, or even the humanoid stuff too, so I don't think I want to just put those.
Unknown Executive: I think it will be in the industrial market because all these products share the same signatures as we do for data centers for our own test flow, and for test equipment, it will share very much the same, same characteristics as RVs. These all share very much the same, same characteristics as RVs. Okay, RVs.
Speaker Change: I think as it would be in.
Speaker Change: In the industrial market.
Speaker Change: Because I'm sure that all of these are products of share the same signatures.
Speaker Change: We do four four data centers for our <unk> test for art.
Speaker Change: And.
Speaker Change: And our fall test equipment will be share very much shared the same same characteristics and therefore and also for robotics.
Speaker Change: And for especially for those <unk>.
Speaker Change: Moving.
Speaker Change: Sure.
Speaker Change: Not not stationery a robot.
Speaker Change: And the dealer mobile these robot move around and they all need that type of a power supply.
Speaker Change: And the charging and.
Speaker Change: Battery management and.
Speaker Change: These are share very much the same same kind of characteristics of the RV time, Okay. Obviously, yes.
Speaker Change: Those could be industrial or consumer or even the humanoid stuff too. So I don't think I want to just put those I think as a way of where propane in the industrial side, Okay sounds good.
Michael Singh: I think of the way we're probably in the industrial site. Yeah, yeah. That's good.
Unknown Attendee: Thank you and come back again.
Speaker Change: Thank you and congrats again okay.
Quinn Bolton: Okay, thanks, Tori. Our next question is from Quinn Bolton of Needham. Quinn, your line is now open. It's just wanted to quick follow up question. There have been a few semiconductor companies that's earning season that have sort of mentioned having licenses to a, you know, to Huawei being revoked in the quarter and, you know, it's raised some questions from investors. I just wondering if you guys could address.
Unknown Executive: Okay, thanks.
Terry: Thanks Terry.
Operator: Our next question is from Quinn Bolton of Needham. Quinn, your line is now open.
Speaker Change: Next question is from Quinn Bolton of Needham. Your line is now open.
Quinn Bolton: Hey, guys, just wanted a quick follow-up question. There have been a few semiconductor companies this earnings season that have sort of mentioned having licenses to, you know, Huawei being revoked in the quarter. And, you know, it's raised some questions from investors. I was just wondering if you guys could address the following: Do you have a license to ship to Huawei? If you did, has it been revoked? Is that, you know, is there any real exposure at MPS to that customer? It's obviously not impacting your near-term outlook, but I figured I'd just ask because we've gotten a number of questions on potential Huawei exposure across the semi coverage. Thank you.
Quinn Bolton: Hey, guys. Just wanted to quick follow up question. There have been a few semiconductor companies. This earning season that have sort of mentioned having licenses too.
Quinn Bolton: Huawei being revoked in the quarter and raised some questions from investors I just wondering if you guys can address.
Quinn Bolton: Do you have a license to ship to Huawei? If you did, it hasn't been revoked. Is that, you know, is there any real exposure at MPS to that customer? It's obviously not impacting your near-term outlook, but I figured I just asked because we've got a number of questions on central Huawei exposure across the semi coverage. Thank you.
Speaker Change: Do you have a license to ship to Huawei.
Speaker Change: If you did it hasnt been revoked is that is there any real exposure at MTS too to that customer is obviously not impacting your near term outlook, but I figured I'd just ask because we've gotten a number of questions.
Speaker Change: On potential Huawei exposure across the semi coverage. Thank you.
Bernie Blagen: Quinn, I can make this pretty simple. We don't have any licensing or contractual arrangements with Huawei that are at all. So it can't be canceled. Any business we have with them has always just done on a PO basis. And we have no indication of a change in their, their relationship. Yeah.
Speaker Change: Quinn I can make this pretty simple, we don't have any licensing or contractual arrangements with Huawei.
Speaker Change: Or is it all so they can't be canceled.
Speaker Change: Any business, we have with them is always just done on a Boe basis, and we have no indication of a change in their relationship.
Speaker Change: Yeah.
Bernie Blagen: So, so Bernie, I guess there is more that export license questions. You need an export license to shift to them. I think that's that. Oh, the actual price. Now, we, we, our, yeah, our product is a, it's not, not like in the 20 below 24 in the end, let me do whatever it's an okay. That we are not, as far as I know. Yeah, you're right. And as far as I know, we're not subject to the export limit, have any limitations. Okay.
Speaker Change: So Brian I guess, there is more that export license question do you need an export license to ship to them because I think thats all of the exercise now.
Speaker Change: Yes.
Brian: Our product is not knowledge and a 20 below 24 nanometer all whatever syndicate that we are not as far as I know, yes, you are right.
Speaker Change: Pause I know, we're not subject to the two to the export limit have any limitations and.
Operator: And, but we'll talk to our, to answer your question precisely, I will consult our legal counsel. Yeah. Okay. Thank you. If there are any follow-up questions, please click the raise hand button.
Speaker Change: But we'll talk to our to answer your question precisely our consol our legal counsel.
Speaker Change: Yeah, Okay. Okay. Thank you.
Operator: If there are any follow-up questions, please click the Raise Hand button.
Speaker Change: If there are any follow up questions. Please click the <unk> button.
Bernie Blagen: As there are no further questions, I would now like to turn the webinar back over to Bernie.
Speaker Change: As there are no further questions I would now like to turn the webinar back over to Bernie.
Bernie Blagen: Great. I'd like to thank you all for joining us to this conference call and look forward to talking to you again during our third quarter conference call, which will likely be in late October.
Speaker Change: Great.
Bernie Blegen: Thank you all for joining us for this conference call and look forward to talking to you again during our third quarter conference call, which will likely be in late October.
Operator: Thank you.
Operator: Have a nice day. Good Bye!
Speaker Change: Do you have a nice day.
Speaker Change: Goodbye.