(TGAN) 2023 Q3 法說會逐字稿

Good day, and thank you for standing by. Welcome to the Transphorm's Third Quarter 2023 Earnings Call. (Operator Instructions) Please be advised that today's conference is being recorded.

美好的一天，謝謝你的支持。歡迎來到 Transphorm 的 2023 年第三季度財報電話會議。 （操作員說明）請注意，今天的會議正在錄製中。

I would now like to hand the conference over to your speaker today, David Hanover. Please go ahead.

我現在想把會議交給今天的發言人大衛·漢諾威。請繼續。

Good afternoon, and welcome to Transphorm's Third Quarter Fiscal 2023 Earnings Conference Call. Joining us today from Transphorm are Mario Rivas, Chief Executive Officer; Primit Parikh, Co-Founder, President and Chief Operating Officer; and Cameron McAulay, Chief Financial Officer.

下午好，歡迎來到 Transphorm 的 2023 財年第三季度收益電話會議。今天從 Transphorm 加入我們的是首席執行官 Mario Rivas； Primit Parikh，聯合創始人、總裁兼首席運營官；和首席財務官 Cameron McAulay。

Before we begin, I'd like to point out that there is a slide presentation associated with today's prepared remarks, which management will be referencing during the conference call. These slides can be accessed through the live webcast link in the Investors section of Transphorm's website, where they will also be posted and available as a link to a PDF subsequent to today's conference call.

在我們開始之前，我想指出有一個與今天準備好的評論相關的幻燈片演示，管理層將在電話會議期間參考。這些幻燈片可以通過 Transphorm 網站投資者部分的網絡直播鏈接訪問，它們也將在今天的電話會議後發布並作為 PDF 鏈接提供。

Additionally, during the course of this call, management may make forward-looking statements regarding the company's financial position, strategy and plans, future operations, specific end markets and other areas of discussion. It's not possible for the company or management to predict all risks nor can the company assess the potential impact of all factors on its business or the extent to which any factor or combination of factors may cause actual results to differ materially from those contained in any forward-looking statements.

此外，在此次電話會議期間，管理層可能會就公司的財務狀況、戰略和計劃、未來運營、特定終端市場和其他討論領域做出前瞻性陳述。公司或管理層不可能預測所有風險，公司也無法評估所有因素對其業務的潛在影響或任何因素或因素組合可能導致實際結果與任何遠期中包含的結果存在重大差異的程度- 看起來陳述。

In light of these risks, uncertainties and assumptions, the forward-looking statements discussed during this call may or may not occur, and actual results could differ materially and adversely from those anticipated or implied. Any projections as to the company's future performance represent management's estimates as of today, February 23, 2023. Neither the company nor any person assumes responsibility for the accuracy or completeness of the forward-looking statements.

鑑於這些風險、不確定性和假設，本次電話會議期間討論的前瞻性陳述可能會也可能不會發生，實際結果可能與預期或暗示的結果存在重大不利差異。關於公司未來業績的任何預測均代表管理層截至 2023 年 2 月 23 日的估計。公司或任何人均不對前瞻性陳述的準確性或完整性承擔責任。

The company also undertakes no obligation to publicly update forward-looking statements for any reason after the date of this call to conform such statements to actual results or to the changes in the company's expectations. For more detailed information on risks associated with the company's business, we refer you to the risk associated in Transphorm's most recent quarterly report on Form 10-Q and other subsequent filings with the SEC.

公司也沒有義務在本次電話會議日期後以任何理由公開更新前瞻性陳述，以使此類陳述符合實際結果或公司預期的變化。有關與公司業務相關的風險的更多詳細信息，請參閱 Transphorm 最近的 10-Q 表季度報告和其他隨後提交給美國證券交易委員會的文件中的相關風險。

With that said, it is now my pleasure to turn the call over to Transphorm's CEO, Mario Rivas. Please go ahead, Mario.

話雖如此，現在我很高興將電話轉給 Transphorm 的首席執行官 Mario Rivas。請繼續，馬里奧。

Thanks, David, and welcome to everyone on today's call. Our quarterly revenue was $4.5 million compared to revenue of $3.7 million in the prior quarter and $4.6 million in the prior year. Product revenue was up 25% on a sequential basis and 9% compared to the same period in fiscal 2022.

謝謝大衛，歡迎大家參加今天的電話會議。我們的季度收入為 450 萬美元，而上一季度的收入為 370 萬美元，去年同期為 460 萬美元。產品收入環比增長 25%，與 2022 財年同期相比增長 9%。

Increased total design-ins for power adapters and fast chargers, including the shipment of new production orders for 2 of the worldwide top 5 laptop manufacturing. The company's products have exceeded 100 billion hours of field operating reliability. We believe this is one of the industry's best growth power spectrum reliability ratings for gallium nitride power.

增加了電源適配器和快速充電器的總體設計，包括為全球前 5 大筆記本電腦製造商中的 2 家交付新生產訂單。公司產品的現場運行可靠性已超過1000億小時。我們相信這是業界最佳的氮化鎵功率增長功率譜可靠性評級之一。

It is now my pleasure to hand over the call to Primit Parikh for a detailed review of the quarterly achievements. Go ahead, Primit.

現在，我很高興將電話轉交給 Primit Parikh，讓他對季度業績進行詳細審查。繼續，普里特。

Thank you, Mario, and good afternoon, everyone. We are very pleased to report Transphorm third quarter revenue of $4.5 million, which represents a 22% increase over the prior quarter and a 25% increase in product revenue quarter-over-quarter. Product revenues continue to be over 80% of the total revenue, in line with our long-term goals. And furthermore, the high power portion of the product revenue was over 70% of the mix in what is still a challenging environment with macroeconomic headwinds.

謝謝馬里奧，大家下午好。我們很高興地報告 Transphorm 第三季度收入為 450 萬美元，比上一季度增長 22%，產品收入環比增長 25%。產品收入繼續佔總收入的80%以上，符合我們的長期目標。此外，在宏觀經濟逆風仍然充滿挑戰的環境中，產品收入的高功率部分佔組合的 70% 以上。

We also realized another strong quarter of design wins, including some marquee Tier 1 customers like HP in the fast charging adopter segment, and a global energy leader in the high power segment. Overall, we achieved greater than 15% sequential growth in both design-ins and design-ins moving to production. This successes in markets ranging from low-power adapters and chargers to high power multi-kilowatt systems serving gaming, energy, server and computing, blockchain and industrial power, have been as a direct result of our targeted investments in these areas.

我們還實現了另一個強勁的設計勝利季度，包括一些重要的一級客戶，如快速充電採用者領域的惠普，以及高功率領域的全球能源領導者。總體而言，我們在設計導入和轉向生產的設計導入方面實現了超過 15% 的環比增長。從低功率適配器和充電器到服務於遊戲、能源、服務器和計算、區塊鍊和工業電源的高功率數千瓦系統等市場的成功，是我們在這些領域進行有針對性投資的直接結果。

We plan to continue investing in these areas in the future, both internally and with our external partners. With these efforts, more and more customers are recognizing the advantages of Transphorm's easy-to-use, higher-efficiency gallium nitride FETs versus competing technologies like e-mode GaN.

我們計劃在未來繼續在這些領域進行投資，無論是在內部還是與我們的外部合作夥伴。通過這些努力，越來越多的客戶認識到 Transphorm 易於使用、效率更高的氮化鎵 FET 與 e-mode GaN 等競爭技術相比的優勢。

Let's dive straight into our key execution metrics with a focus of scaling revenues. We are now tracking a strong $400 million plus 5-year pipeline, including segments, again from low-power to high power adapters and consumers; server telecom computing; industrial, energy, solar and microinverters; and electric vehicles. A healthy portion of this pipeline is from the Greater China Asia markets and we expect to see a strong positive impact from those markets in the latter half of the calendar year.

讓我們直接深入探討我們的關鍵執行指標，重點是擴大收入。我們現在正在追踪 4 億美元加上 5 年的管道，包括細分市場，再次從低功率到高功率適配器和消費者；服務器電信計算；工業、能源、太陽能和微型逆變器；和電動汽車。該管道的健康部分來自大中華區亞洲市場，我們預計在日曆年下半年將看到這些市場的強大積極影響。

With our continued leadership in high power, at greater than 70% of the product revenue this quarter and continued penetration in low-power, we achieved 22% total revenue growth over fiscal Q2 2023 with $4.5 million of total revenues, while also successfully dealing with some of the supply chain and capacity challenges we faced.

憑藉我們在高功率領域的持續領先地位，本季度產品收入佔產品收入的 70% 以上，以及在低功率領域的持續滲透，我們在 2023 財年第二季度實現了 22% 的總收入增長，總收入為 450 萬美元，同時還成功應對了我們面臨的一些供應鍊和產能挑戰。

We added more than 10 new design-ins in the lower power adapter market, bringing our total design-ins to more than 80 driven by our GaN FETs ease-of-use, fundamental high performance and facilitation of a lower total bill of material cost for our customers. Of these, around 25 are in production with 3 more design-ins transitioning to production this quarter. We demonstrated top-tier customer penetration with HP, with multiple repeat orders. And in this quarter, also shipped production volumes for another Tier 1 worldwide top 5 laptop maker as well as a leading e-retailer.

我們在低功率適配器市場增加了 10 多個新設計，使我們的設計總數達到 80 多個，這得益於我們的 GaN FET 易用性、基本高性能和有助於降低總材料成本為我們的客戶。其中，大約 25 個正在生產中，另外 3 個設計在本季度過渡到生產。我們展示了惠普的頂級客戶滲透率，有多個重複訂單。在本季度，還為另一家全球排名前 5 的筆記本電腦製造商以及一家領先的電子零售商交付了生產量。

The customer penetration previously mentioned has opened up multiple opportunities for us within the same customers as well as multiple leading ODMs in this area. Again, enabled by our product's ease of use, we increased our solutions and reference designs to 15, including new partners like MPS with the 140-watt USB PD 3.1 solution.

前面提到的客戶滲透為我們在同一客戶以及該領域的多個領先 ODM 中開闢了多個機會。同樣，由於我們產品的易用性，我們將解決方案和參考設計增加到 15 個，包括新的合作夥伴，如 MPS 和 140 瓦 USB PD 3.1 解決方案。

We also added 10 new design-ins in the higher power segment, bringing the total to more than 55 now with 25 in production as 4 more moving to production this quarter, including the 2-kilowatt plus UPS and server wins. Our evaluation and reference kits for high power, the availability of thermally robust packages, not easily available or not available at all with other gallium nitride, and design partnerships with the likes of Microchip with whom we recently unveiled our new 3-kilowatt inverter design has helped us grow traction in the higher power space. This is also helping accelerate our EV adoption by addressing the electric 2-wheeler market with revenue potential in CY 2023.

我們還在高功率領域增加了 10 個新設計，使總數超過 55 個，其中 25 個在生產中，本季度還有 4 個投入生產，包括 2 千瓦以上的 UPS 和服務器。我們的高功率評估和參考套件、耐熱封裝的可用性、不易獲得或根本無法使用其他氮化鎵，以及與 Microchip 等公司的設計合作夥伴關係，我們最近與 Microchip 一起推出了我們的新 3 千瓦逆變器設計幫助我們在更高功率的空間中增加牽引力。這也有助於通過在 2023 財年解決具有收入潛力的電動兩輪車市場來加速我們的電動汽車採用。

Transphorm has led in establishing reliability for gallium nitride power. During the quarter, we passed another key milestone of our products exceeding 100 billion hours of field operations with excellent fit rates, statistically less than 0.1 fills per billion hours of operation, which is now similar to traditional silicon-based devices. And this, by the way, includes both low power and high power, which no other GaN manufacturer has achieved till date to best of our knowledge.

Transphorm 在建立氮化鎵電源的可靠性方面處於領先地位。在本季度，我們的產品通過了另一個重要里程碑，其現場運行時間超過 1000 億小時，具有出色的適配率，據統計，每十億小時運行少於 0.1 次填充，這與傳統的矽基設備相似。順便說一句，這包括低功率和高功率，據我們所知，迄今為止沒有其他 GaN 製造商能夠做到這一點。

We continue to sample both our pin to pin compatible PQFN packages that enable low power customers to use higher performance Transphorm products while allowing for multiple gallium nitride sources as well as our performance PQFN packages with our SuperGaN platform. Both of these delivering higher performance than other gallium nitride, lower losses, cooler temperatures in the same circuit.

我們繼續對引腳對引腳兼容的 PQFN 封裝進行採樣，使低功率客戶能夠使用更高性能的 Transphorm 產品，同時允許多個氮化鎵源以及我們的高性能 PQFN 封裝與我們的 SuperGaN 平台。在同一電路中，這兩種材料都比其他氮化鎵具有更高的性能、更低的損耗和更低的溫度。

Our higher power packages measure up very well against silicon carbide and enable customers to go to higher frequency with lower losses. Leading also on the R&D front, we showcased our 1,200 watts R&D results at the Premier International Electron Device meeting, a leading IEEE conference event. We made solid progress in stabilizing our Japan epi wafer capacity, which is now ramping. We are also on track with new reactor installations already delivered to our manufacturing partner site. These initiatives will allow us to rapidly expand capacity to meet expected demand in fiscal year 2024. We are also developing lower-cost packaging subcontracting partners both for dual sourcing as well as improving future margins.

我們的更高功率封裝與碳化矽相比非常出色，使客戶能夠以更低的損耗獲得更高的頻率。我們在研發方面也處於領先地位，在 IEEE 的主要會議活動 Premier International Electron Device 會議上展示了我們 1,200 瓦的研發成果。我們在穩定日本外延晶圓產能方面取得了堅實進展，該產能目前正在上升。我們也正在按計劃將新的反應堆裝置交付給我們的製造合作夥伴站點。這些舉措將使我們能夠迅速擴大產能，以滿足 2024 財年的預期需求。我們還在開發成本較低的包裝分包合作夥伴，以實現雙重採購併提高未來利潤率。

Next, a snapshot of our customer adoption growth in the adapters and chargers segment, from 30 watts to over 200 watts, pointing to increasing traction, including now Fortune 100 and Tier 1 larger account design-ins and design wins, as well as initial wins in new markets like India, where our robust gallium nitride FETs are well suited to a bit more stricter requirements with the grid fluctuations in the market.

接下來，我們在適配器和充電器領域的客戶採用率增長的快照，從 30 瓦增加到 200 多瓦，表明牽引力增加，包括現在的財富 100 強和一級大客戶設計導入和設計勝利，以及初始勝利在印度等新市場，我們強大的氮化鎵 FET 非常適合滿足市場電網波動的更嚴格要求。

The higher power space is a large market area of GaN and very important for us, bringing higher energy impact for our customers and higher semiconductor content for Transphorm. We added new designs in the multi kilowatt Ampere UPS space with a worldwide energy leader. Our products are in the field already in the microinverter segment with 800-watt and 1,500-watt microinverters serving either 2 or 4 panels. And the new win in the 1.5 to 2.5 kilowatt titanium efficiency server power segment in areas where Transphorm has led with a strongly IP-protected architecture, the total pole architecture now also being followed by others.

更高的功率空間是 GaN 的一個很大的市場領域，對我們來說非常重要，它為我們的客戶帶來更高的能源影響，並為 Transphorm 帶來更高的半導體含量。我們與全球能源領導者一起在多千瓦安培 UPS 領域添加了新設計。我們的產品已經進入微型逆變器領域，其中 800 瓦和 1,500 瓦微型逆變器服務於 2 個或 4 個面板。在 1.5 至 2.5 千瓦鈦效率服務器電源領域的新勝利，在 Transphorm 以強大的 IP 保護架構領先的領域，全極架構現在也被其他人效仿。

As customers have previously endorsed and also it has been featured in certain third-party teardowns, this is enabled on the foundation of efficiency, performance, ease of use and reliability of Transphorm's products. To the best of our knowledge, Transphorm is still the only gallium nitride company to be shipping anything in high volume in multiple programs in the kilowatt range today, making us a true one-stop shop for GaN from low power to high power kilowatt class.

正如客戶之前認可的那樣，它也出現在某些第三方拆解中，這是基於 Transphorm 產品的效率、性能、易用性和可靠性的基礎上實現的。據我們所知，Transphorm 仍然是當今唯一一家在千瓦範圍內的多個項目中大批量出貨任何產品的氮化鎵公司，這使我們成為從低功率到高功率千瓦級的 GaN 真正的一站式商店。

Strategic partnership for expansion and our government initiatives are a key part of our business. We are on track for increasing our wafer manufacturing capacity with deliveries of all of our acquired reactors now completed and the global wafer expansion project on schedule for end of calendar year 2023. We have made these investments ahead of the time, especially due to long equipment lead times as well as time for qualification and ramp to production. On the wafer fab side, we continue to align plans with our JV partners and are investing in incremental capacity for FY 2024.

擴張的戰略夥伴關係和我們的政府舉措是我們業務的關鍵部分。我們正在按計劃提高我們的晶圓製造能力，我們所有收購的反應器現已完成交付，全球晶圓擴建項目按計劃在 2023 日曆年年底完成。我們提前進行了這些投資，特別是由於設備較長交貨時間以及資格認證和量產的時間。在晶圓廠方面，我們繼續與我們的合資夥伴調整計劃，並投資於 2024 財年的增量產能。

In the industrial segment, we secured the pending $500,000 development funding from Yaskawa after meeting certain product development milestones. Our partnership with Nexperia, which is a strong automotive focus remains robust with continuing wafer supply arrangements.

在工業領域，在達到某些產品開發里程碑後，我們從 Yaskawa 獲得了 500,000 美元的待開發資金。我們與專注於汽車領域的 Nexperia 的合作夥伴關係在持續的晶圓供應安排下保持穩健。

We are now executing on our plans for acceleration of EV revenues and our efforts in the 2- and 3-wheeler segment now includes early design-ins and discussion with more than 10 Asia-based customers, where we feel positive about completing our first win by the end of calendar year 2023. We believe this could grow to a multimillion dollar business in CY 2024 and route to addressing $1 billion TAM in this segment.

我們現在正在執行加速電動汽車收入的計劃，我們在 2 輪和 3 輪車領域的努力現在包括早期設計和與 10 多家亞洲客戶的討論，我們對完成我們的第一個勝利感到樂觀到 2023 日曆年年底。我們相信這可能會在 2024 年增長到數百萬美元的業務，並在該領域解決 10 億美元的 TAM。

Secondly, our design-ins with Japan-based and certain other customers, in the OBC onboard chargers and DC/DC converters for EV 4-wheelers are also ongoing with potential for wins next year and CY '25 meaningful revenues. We have also been investigating drivetrain opportunities in the EV 4-wheelers, which could further boost our long-term growth prospects. This is also an area where our 1,200-volt GaN technology is now generating strong initial interest.

其次，我們與日本客戶和某些其他客戶的 OBC 車載充電器和用於 EV 4 輪車的 DC/DC 轉換器的設計也在進行中，明年有可能贏得勝利並在 CY '25 中獲得可觀的收入。我們還一直在研究 EV 4 輪車的動力傳動系統機會，這可能會進一步提升我們的長期增長前景。這也是我們的 1,200 伏 GaN 技術目前最初引起強烈興趣的領域。

On the government side, our fiscal Q3 billing on the Navy program remained similar to the fiscal Q2 at about $500,000. We are now targeting a new program starting fiscal Q4, which is expected to be a $15 million value over the next 3 years, significantly helping expanding our U.S.-based epi wafer manufacturing and giving momentum to our second vertical of RF gallium nitride epi business in FY 2024. With a significant portion of our core epi wafer manufacturing in the United States, we are also aiming to secure CHIPS act funding, and we expect to make initial submissions later this quarter.

在政府方面，我們對海軍計劃的第三財季計費與第二財季相似，約為 500,000 美元。我們現在的目標是從第四財季開始一項新計劃，該計劃預計在未來 3 年內達到 1500 萬美元的價值，這將極大地幫助擴大我們在美國的外延晶圓製造，並為我們在美國的第二個垂直射頻氮化鎵外延業務提供動力2024 財年。我們的核心外延晶圓製造有很大一部分在美國進行，我們還致力於獲得 CHIPS 法案的資金支持，我們預計將在本季度晚些時候提交初步申請。

In summary, we are in a unique and differentiated position among the GaN suppliers with our core platform spanning a wide range of the power spectrum. Products in the market today that address a $3 billion-plus market opportunity for gallium nitride for power conversion, doubling to over a $6 billion GaN TAM in the next 3 to 4 years. Again, from lower power adapters and charges to higher power server blockchain datacom power to industrial, energy, solar, inverters, microinverters, all areas, we are already in production and ramping.

總之，我們在 GaN 供應商中處於獨特和差異化的地位，我們的核心平台跨越廣泛的功率譜。當今市場上的產品為用於功率轉換的氮化鎵提供了 30 億美元以上的市場機會，在未來 3 到 4 年內翻一番，達到 60 億美元以上的 GaN TAM。同樣，從較低功率的適配器和充電到更高功率的服務器區塊鏈數據通信電源，再到工業、能源、太陽能、逆變器、微型逆變器，所有領域，我們已經在生產和量產。

In the mid- to long-term, large growth opportunities with automotive electric vehicles, both EV 2- and 3-wheelers first in CY 2023, followed by EV 4-wheelers further continuing gallium nitride and Transphorm's growth beyond 2024 and '25.

從中長期來看，電動汽車的巨大增長機會，首先是 2 輪和 3 輪 EV 2023 年，隨後是 EV 4 輪車，氮化鎵和 Transphorm 的增長將持續到 2024 年和 25 年後。

We are enthused that our customers have confidence in gallium nitride and Transphorm from the fact that our products now have been in the field for over 100 billion hours with very low sub-0.1 fit or field failure rates, rivaling those of traditional silicon devices. Transphorm's GaN solutions in production today from 30 watts to over 4 kilowatts, deliver higher efficiency, compact systems with easy to use and easy to interface products, no needed to interface with the outside world for our customers with proven performance benefits, a combination of efficiency, smaller size and rate, fast charging against silicon, silicon carbide and other gallium nitride solutions like e-mode.

我們很高興我們的客戶對氮化鎵和 Transphorm 充滿信心，因為我們的產品現在已經在現場使用了超過 1000 億小時，並且具有非常低的低於 0.1 的配合或現場故障率，可與傳統矽器件相媲美。 Transphorm 的 GaN 解決方案目前在生產中，功率從 30 瓦到超過 4 千瓦，提供更高效率、緊湊的系統以及易於使用和易於接口的產品，無需為我們的客戶與外界接口，具有經過驗證的性能優勢，效率的組合，更小的尺寸和速率，對矽、碳化矽和其他氮化鎵解決方案（如 e-mode）的快速充電。

Last but not the least, Transphorm's GaN products make a key environmental impact especially with our ability to serve in high power markets where the energy impact is much higher. And overall, an ability to impact over 300-terawatt hours of electricity savings alone in the long term. And in the near term, impact of 50,000 metric tons of carbon dioxide in 1 year alone.

最後但並非最不重要的一點是，Transphorm 的 GaN 產品對環境產生了關鍵影響，尤其是我們有能力服務於能源影響要高得多的大功率市場。總的來說，從長遠來看，僅一項就可以節省超過 300 太瓦時的電力。在短期內，僅 1 年就會產生 50,000 公噸二氧化碳的影響。

All in all, while both Transphorm and the broader semiconductor industry have faced challenging conditions over the past few quarters and in fact, continue to fit in the current quarter, we remain positioned to tackle this near-term headwinds and progress towards our long-term model in FY 2024, aided by both capacity expansion and aggressively increasing our worldwide sales outreach.

總而言之，雖然 Transphorm 和更廣泛的半導體行業在過去幾個季度都面臨著挑戰，事實上，在本季度繼續適應，但我們仍然有能力應對近期的逆風，並在我們的長期發展中取得進展2024 財年的模型，得益於產能擴張和積極增加我們的全球銷售範圍。

Our focus heading into FY '24 remains in 3 key areas. One, expand sales and solutions for aggressive demand generation, continue to add Tier 1 customers in our lower power area and expanding our leadership further in the higher power area and also closing in on EV design wins by the end of calendar year 2023. Second, focus on capacity expansion and supply chain management to be prepared for meeting the increased demand we expect in FY '24 and beyond. And third, continue to exit on our products and solutions road map, technology leadership and key partnerships, both strategic partners and solutions partner ecosystem.

我們進入 24 財年的重點仍然在 3 個關鍵領域。第一，擴大銷售和解決方案以滿足積極的需求生成，繼續在我們的低功率領域增加一級客戶，並進一步擴大我們在高功率領域的領導地位，並在 2023 日曆年年底之前完成 EV 設計。其次，專注於產能擴張和供應鏈管理，為滿足我們預計在 24 財年及以後增加的需求做好準備。第三，繼續退出我們的產品和解決方案路線圖、技術領先地位和關鍵合作夥伴關係，包括戰略合作夥伴和解決方案合作夥伴生態系統。

With that, I want to go over to Cameron to walk you through our financials in detail.

有了這個，我想去卡梅倫詳細介紹我們的財務狀況。

Thank you, Primit, and hello to everyone joining us today. I would like to start by providing some context behind the delay in filing. There was in the quarter, as I will reference in my remarks, a notable adjustment to our epi wafer inventory balance that had grown as a result of the process of bringing up our epi wafer reactors, especially in Japan. The audit delay was required to establish and reconfirm the nature of this adjustment. And the related documentation required with our auditing firm was in addition to our typical procedures. This took a few days to complete. In conclusion, there were no adjustments made to the prior periods as a result of this work.

謝謝你，Primit，向今天加入我們的每個人問好。首先，我想提供一些延遲提交背後的背景信息。正如我將在發言中提到的那樣，在本季度，我們的外延晶圓庫存餘額發生了顯著調整，這是由於我們的外延晶圓反應器的啟動過程而增加的，尤其是在日本。需要審計延遲來確定並重新確認此調整的性質。我們的審計公司要求的相關文件是我們典型程序之外的文件。這花了幾天時間才完成。總之，這項工作沒有對前期進行任何調整。

Let me now start my standard remarks with a brief recap of our financial results for our most recently completed quarter. For my remarks, I will refer both to GAAP and non-GAAP results, which are reconciled to GAAP in our press release table. Non-GAAP results exclude stock-based compensation, depreciation and amortization and adjustments to fair value of our previously held convertible note.

現在讓我開始我的標準評論，簡要回顧一下我們最近完成的季度的財務業績。對於我的評論，我將同時參考 GAAP 和非 GAAP 結果，這些結果在我們的新聞稿表中與 GAAP 進行了核對。非 GAAP 結果不包括基於股票的薪酬、折舊和攤銷以及對我們之前持有的可轉換票據的公允價值的調整。

Starting with the income statement. Total GAAP and non-GAAP revenue comprising product and revenue was $4.5 million in the quarter. This met our target and represents a 22% increase quarter-on-quarter. Product revenue, as with the prior quarter, now forms the majority of our total revenue number, over 85% in the quarter just completed. The majority of this product revenue being generated in higher power applications.

從損益表開始。本季度包括產品和收入在內的 GAAP 和非 GAAP 總收入為 450 萬美元。這達到了我們的目標，環比增長了 22%。與上一季度一樣，產品收入現在占我們總收入的大部分，在剛剛結束的那個季度超過 85%。該產品收入的大部分來自更高功率的應用。

Continuing to focus on product sales, solid execution allowed us to exceed our target and generate product sales of $4.0 million. This is an increase of 25% in product revenue from the prior quarter. This revenue is being driven across a broad range of power conversion applications, including fast chargers and adapters, gaming, data centers. And as noted by Primit, we now have over 50 customers in production, a strong increase in the current quarter.

繼續專注於產品銷售，紮實的執行使我們超越了目標，並產生了 400 萬美元的產品銷售額。與上一季度相比，產品收入增長了 25%。這一收入來自廣泛的電源轉換應用，包括快速充電器和適配器、遊戲、數據中心。正如 Primit 所指出的，我們現在有 50 多個客戶在生產，本季度增長強勁。

Government revenue was $0.5 million in the quarter, an increase of 5% from the prior quarter. The company is working to secure a new 3-year, $50 million government program that is expected to drive revenue in future quarters. We are targeting this program to be awarded in the near term.

本季度政府收入為 50 萬美元，比上一季度增長 5%。該公司正在努力爭取一項為期 3 年、耗資 5000 萬美元的新政府計劃，該計劃有望在未來幾個季度推動收入增長。我們的目標是在近期授予該計劃。

The gross margin in the quarter was negative 59%. The principal driver was a strategic nonrecurring dispositioning of epi wafer with subassembly inventory, resulting from an evaluation of epi inventory produced while bringing reactors online, optimizing specs across all locations and an internal risk assessment of using those epi-wafer units in our manufacturing process line given now our fundamentally improved epi processes.

該季度的毛利率為負 59%。主要驅動因素是外延晶圓與子組件庫存的戰略性非經常性處置，這是通過對反應堆上線時生產的外延庫存進行評估、優化所有地點的規格以及在我們的製造生產線中使用這些外延晶圓單元的內部風險評估得出的現在我們從根本上改進了外延工藝。

Secondly, lower short-term yields associated with bringing up record capacity also contributed the company focuses resources on capacity expansion. This expansion being done to support our growth that we anticipate being driven by our strong design-in and design win traction.

其次，與創紀錄的產能相關的較低短期收益率也促使公司將資源集中在產能擴張上。進行這種擴展是為了支持我們的增長，我們預計我們的增長將受到我們強大的設計導入和設計贏得牽引力的推動。

Excluding these onetime strategic write-offs, the margins are comparable with those in the prior quarter. Our direct margins remain consistent, and we continue to progress towards our long-term model of gross margins in excess of 40%. A number of actions, including new product introduction, ongoing cost efficiency activities and benefits that we will receive as we continue to grow and scale will contribute to this.

排除這些一次性戰略註銷，利潤率與上一季度相當。我們的直接利潤率保持穩定，我們繼續朝著毛利率超過 40% 的長期模式邁進。許多行動，包括新產品的推出、持續的成本效率活動以及我們將在繼續發展和擴大規模時獲得的收益，都將為此做出貢獻。

Operating activities on a non-GAAP basis were $5.9 million in the current quarter compared to $5.1 million in the prior quarter. This increase is being driven largely by an increase in payroll as we continue to deepen our team including leadership appointments in both sales and operations.

本季度非 GAAP 經營活動為 590 萬美元，上一季度為 510 萬美元。隨著我們繼續深化我們的團隊，包括在銷售和運營方面的領導任命，這一增長主要是由工資增長推動的。

Non-GAAP OpEx in the same quarter in the prior year was $4.4 million. The increase here is attributed primarily to personnel increases across the company just referenced together with a reduced absorption of R&D costs associated with our government contract.

去年同期的非 GAAP 運營支出為 440 萬美元。這裡的增長主要歸因於剛剛提到的整個公司的人員增加以及與我們的政府合同相關的研發成本的減少。

Turning to EPS. The non-GAAP EPS loss in the quarter increased from $0.09 to $0.16. Excluding the onetime strategic inventory write-off, the non-GAAP EPS would be $0.11 within $0.02 of the non-GAAP EPS in the prior quarter.

轉向每股收益。本季度非 GAAP 每股收益虧損從 0.09 美元增加到 0.16 美元。不包括一次性戰略庫存註銷，非 GAAP 每股收益將在上一季度非 GAAP 每股收益的 0.02 美元之內為 0.11 美元。

From an operational perspective, we continue to see solid traction in our targeted markets as evidenced by our improvement in both customers in production and design-in activity. Our short-term focus being on product execution and enabling capacity expansion to support medium- to long-term growth. We also continue to invest in the long-term growth engine of the company.

從運營的角度來看，我們繼續在目標市場看到強勁的吸引力，我們在生產和設計活動中客戶的改善證明了這一點。我們的短期重點是產品執行和實現產能擴張以支持中長期增長。我們還繼續投資於公司的長期增長引擎。

Turning now to the balance sheet. Our shareholders' equity remains solid at $49.2 million at the end of the quarter. Operational cash burn, excluding capital investment increased in the quarter to $8.8 million. This was driven primarily by a reduction in receivables as a result of the timing of our Q3 shipments. Q3 also saw a reduction in our government collections as we transition from our current government program.

現在轉向資產負債表。本季度末，我們的股東權益保持在 4,920 萬美元的穩定水平。本季度不包括資本投資的運營現金消耗增加至 880 萬美元。這主要是由於我們第三季度的發貨時間導致應收賬款減少。隨著我們從當前的政府計劃過渡，第三季度我們的政府收款也有所減少。

Our AR increased $2 million in the quarter, driven as noted by the timing of our Q3 shipments. Cash and cash equivalents were $23.6 million as at the quarter end. We expect the cash burn to decline in the current quarter.

正如我們第三季度出貨時間所指出的那樣，我們的 AR 在本季度增加了 200 萬美元。截至本季度末，現金和現金等價物為 2360 萬美元。我們預計本季度的現金消耗將下降。

Our CapEx investments continued as we look to enable additional capacity to support our growth. Other assets and liabilities remained largely stable. Looking ahead, we continue to remain open to opportunities to further strengthen our balance sheet to ensure that we're able to continue to invest in our growth, the growth enabled by our continued design and progress and production customers.

我們希望通過增加產能來支持我們的增長，因此我們的資本支出投資仍在繼續。其他資產和負債基本保持穩定。展望未來，我們繼續對進一步加強資產負債表的機會持開放態度，以確保我們能夠繼續投資於我們的增長，我們持續的設計和進步以及生產客戶所帶來的增長。

Turning now to our target operating model. Transphorm is in the process of building a high-growth cash-generative business. From a revenue perspective, there are 3 different streams of income: licensing, government and product. In the current fiscal year, product revenue has accounted for over 80% of our total revenues. And as we look forward, we expect this trend to continue. The company anticipates rapid top line growth and GaN adoption across multiple end markets with a 5-year CAGR in excess of 50%.

現在轉向我們的目標運營模式。 Transphorm 正在打造高增長的現金生成業務。從收入的角度來看，有 3 種不同的收入來源：許可、政府和產品。在本財年，產品收入占我們總收入的80%以上。展望未來，我們預計這一趨勢將繼續下去。該公司預計 GaN 將在多個終端市場實現快速增長和採用，5 年復合年增長率超過 50%。

We are confident that the company can achieve an overall gross margin of over 40%. All segments will be able to benefit now from the improved cost structure in our current products. In addition, a number of actions, including new product introduction, discrete ongoing cost efficiency activities and from scaling will assist us. With respect to operating margin, the company will continue to invest to support all aspects of our core operations. We have a stable OpEx structure, an environment will ultimately allow us to translate our gross margins into an operating margin model that will deliver over 20% to the bottom line.

我們有信心公司可以實現40%以上的整體毛利率。所有部門現在都將能夠從我們當前產品的改進成本結構中受益。此外，一些行動，包括新產品推出、離散的持續成本效率活動和擴展將幫助我們。關於營業利潤率，公司將繼續投資以支持我們核心業務的各個方面。我們擁有穩定的 OpEx 結構，這種環境最終將使我們能夠將毛利率轉化為營業利潤率模型，該模型將為利潤帶來 20% 以上的利潤。

Including now with a few key highlights. Transphorm publicly listed on the NASDAQ Exchange is a pioneer and leading provider of GaN power conversion devices. Our disruptive best-in-class technology is addressing a large growing market opportunity. We are commercially ramping with a strong pipeline in place. We have established a strong network of blue-chip partners and have a comprehensive product offering today that meets to have customers' needs across a wide range of power levels and segments. All underpinned by a solid balance sheet, the industry's strongest IP position and a deep balancing team.

現在包括一些關鍵亮點。在納斯達克交易所公開上市的 Transphorm 是 GaN 功率轉換器件的先驅和領先供應商。我們顛覆性的一流技術正在應對不斷增長的巨大市場機遇。我們正在通過強大的管道進行商業推廣。我們已經建立了一個強大的藍籌合作夥伴網絡，並提供全面的產品，以滿足各種功率級別和細分市場的客戶需求。所有這些都以穩健的資產負債表、業界最強大的知識產權地位和深厚的平衡團隊為基礎。

That concludes our prepared materials and remarks, and we would now like to open the call to any questions. Operator, please proceed.

我們準備好的材料和評論到此結束，我們現在想公開任何問題。接線員，請繼續。

(Operator Instructions) Our first question comes from the line of David Williams from Benchmark Company.

（操作員說明）我們的第一個問題來自 Benchmark 公司的 David Williams。

I guess maybe Primit first. If you -- I think this is the first time that we've heard you really talk about the pipeline of opportunities. And you talked about $400 million. Can you kind of give some clarity around that kind of what you're seeing? And maybe kind of what is included in that as you kind of think about that pipeline? When do you expect it to be realized? And what's in that bucket, please?

我想也許是 Primit 首先。如果你 - 我認為這是我們第一次聽到你真正談論機會的管道。你談到了 4 億美元。你能澄清一下你所看到的那種情況嗎？當您考慮該管道時，也許其中包含什麼？您預計什麼時候實現？請問那個桶裡裝的是什麼？

Sure. So the pipeline the way it's -- we have -- we are tracking a systematic design sales funnel pipeline at various stages of design-ins from 10% to 100% quantifiably defined. So these are all the opportunities, qualified opportunities that our sales team have discussed with customers, various -- again at various stages in the design pipeline, 100% being repeat production orders.

當然。所以管道的方式 - 我們有 - 我們正在跟踪設計的各個階段的系統設計銷售漏斗管道，從 10% 到 100% 可量化定義。所以這些都是我們的銷售團隊與客戶討論過的所有機會，合格的機會，各種 - 再次在設計管道的不同階段，100％是重複生產訂單。

And that totals up to -- it's very exciting actually, David, where we are, that totals up to more than $400 million. And this actually includes only our power products pipeline. It does not actually include our epi wafers with strategic partners, for example, like Nexperia. That's another well over $100 million.

總計達到 - 實際上，這非常令人興奮，大衛，我們所處的位置，總計超過 4 億美元。而這實際上只包括我們的電源產品線。它實際上不包括我們與戰略合作夥伴（例如 Nexperia）的外延晶圓。這又遠遠超過 1 億美元。

And if we take -- we also probabilistically weigh all of -- this pipeline is over 5 years. And if we probabilistically weigh the pipeline, the power products pipeline, the $400 million plus that I talked about is over $160 million probabilistically weighted, and adding another $100 million to that to the epi wafer and wafer pipeline brings it to well over $250 million, and that number is growing rapidly.

如果我們採取 - 我們也可能權衡所有 - 這條管道超過 5 年。如果我們對管道、電源產品管道進行概率加權，我所說的 4 億美元以上的概率加權超過 1.6 億美元，再加上外延晶圓和晶圓管道的 1 億美元，使其超過 2.5 億美元，而且這個數字正在迅速增長。

Very helpful. And then maybe if you're just kind of thinking about the design wins. And obviously, those are growing very, very quickly. Just kind of thinking about your capacity you're bringing up, do you still think that your targeted capacity will be sufficient to fulfill this demand? And maybe how do you think about that? And maybe opportunity to expand that capacity further than where you're at today over the next 12 to 18 months?

很有幫助。然後也許如果你只是在考慮設計獲勝。顯然，這些增長非常非常快。想想你提出的能力，你仍然認為你的目標能力足以滿足這個需求嗎？也許你怎麼看？也許有機會在未來 12 到 18 個月內進一步擴大產能？

Correct. Yes, that's in part why we made this reactor investments ahead of time. If you look at our last 2 quarters of capital investment, both included several million dollars in most CVD reactor-based investment. So that we are preparing for ahead of time, especially with some of the long cycles that we get in installation as well as qualification.

正確的。是的，這就是我們提前進行反應堆投資的部分原因。如果你看看我們最近兩個季度的資本投資，兩個季度都包括數百萬美元的大多數基於 CVD 反應器的投資。因此，我們正在提前做好準備，尤其是在安裝和認證方面的一些長周期。

We are also very excited about the partnership with Global Wafers, where our first reactors are now delivered, and we are in process of bringing that up like we like we said, which is on track. It remains on track for end of calendar year 2023 like previously noted. And that opportunity there also allows us for future expansion of -- with facilities in place for the reactors.

我們也對與 Global Wafers 的合作夥伴關係感到非常興奮，我們的第一批反應堆現已交付，我們正在按照我們所說的那樣提出這一點，這是按計劃進行的。如前所述，它仍有望在 2023 日曆年年底前實現。那裡的機會也使我們能夠在未來擴展 - 為反應堆配備設施。

And then secondly, as we look ahead, that is where we mentioned about the U.S. CHIPS program. We also need to further ahead of time, try and expand our capacity with potential help from the CHIPS act program.

其次，當我們展望未來時，這就是我們提到美國 CHIPS 計劃的地方。我們還需要進一步提前，嘗試在 CHIPS 法案計劃的潛在幫助下擴大我們的能力。

Okay. Fantastic. And maybe just one on the laptop side. You talked a little bit about this, but you're making some nice progress there. Are you seeing more of those developments with the OEM or at the ODM level? And maybe how are you differentiating yourself versus some of the competitors, if you kind of think about that market specifically?

好的。極好的。也許只有一個在筆記本電腦端。你談了一點這個，但你在那裡取得了一些不錯的進展。您是否在 OEM 或 ODM 級別看到了更多這樣的發展？如果您具體考慮該市場，也許您如何將自己與某些競爭對手區分開來？

Sure. So on the lower power chargers, specifically laptops, it's both the OEM and ODM typically are closely involved. Some of the projects are initiated at the OEM and then designed in at the ODM. Some of the projects directly working with the ODM because they get RFQs from the OEMs, so both those are in progress. And what really helps us sell what we are really excited about, for example, the HP win, we talked about, that gives us a lot of credibility and traction at the ODM win -- marquee win like that gives us visibility across multiple ODMs, actually, which then we expect to accelerate further the designing at those ODMs for various different OEMs as well.

當然。因此，對於低功率充電器，特別是筆記本電腦，OEM 和 ODM 通常都密切參與。一些項目在 OEM 處啟動，然後在 ODM 處設計。一些項目直接與 ODM 合作，因為他們從 OEM 那裡獲得了 RFQ，所以這兩個項目都在進行中。真正幫助我們銷售我們真正興奮的東西，例如，我們談到的 HP 獲勝，這給了我們很大的可信度和 ODM 獲勝的牽引力——像這樣的大型勝利讓我們在多個 ODM 中獲得可見性，實際上，我們希望進一步加快這些 ODM 對各種不同 OEM 的設計。

And your second part of your question, the reason it's the similar things that we have said before, Transphorm has designed our GaN FET to seamlessly integrate with the outside world. So we can use standard drivers and controllers. In fact, the drivers are integrated with the controllers, so we don't need any integration on the low-power side because the driver is literally for free as part of the controller, it already comes in. And that is very helpful.

你問題的第二部分，原因是我們之前說過類似的話，Transphorm 將我們的 GaN FET 設計為與外界無縫集成。所以我們可以使用標準的驅動程序和控制器。事實上，驅動程序與控制器集成在一起，因此我們不需要在低功耗方面進行任何集成，因為驅動程序作為控制器的一部分實際上是免費的，它已經包含在其中。這非常有幫助。

Second, our performance actually is better. What we have done, what customers have also done if we take a standard of competing gallium nitride e-mode and simply replace that with our gallium nitride, we see 5%, 10% loss improvement immediately. This is gallium nitride to gallium nitride, right? Of course, our silicon -- all gallium nitride is better versus silicon. So our ease of use, our performance, and now our growing reliability, all those 3 things, the 100 billion hours of field operation that we mentioned, all of those 3 things are now adding to our momentum in the lower power space.

第二，我們的表現實際上更好。如果我們採用競爭性氮化鎵 e-mode 的標準並簡單地用我們的氮化鎵替換它，我們所做的，客戶也所做的，我們立即看到 5%、10% 的損耗改善。這是氮化鎵對氮化鎵吧？當然，我們的矽——全氮化鎵比矽更好。因此，我們的易用性、我們的性能，以及現在我們不斷增長的可靠性，所有這三件事，我們提到的 1000 億小時的現場操作，所有這三件事現在都在增加我們在低功耗領域的勢頭。

Very good color there. And one last one just not to leave Cameron out. But if you kind of think about your gross margin profile and the value add of the GaN product, and you talked about a 40% longer-term margin. Once you get up to ramp and you get into real production levels here, do you think that there's an opportunity to run that in the maybe 50 and above range? Or do you think you're -- there's anything structural that will keep you kind of 40-ish percent range longer term?

那裡的顏色很好。最後一個只是為了不讓 Cameron 被排除在外。但如果你考慮一下你的毛利率狀況和 GaN 產品的增值，你就會談到 40% 的長期利潤率。一旦你開始爬坡並進入真正的生產水平，你認為有機會在 50 及以上的範圍內運行它嗎？或者你認為你是 - 有什麼結構性的東西可以讓你長期保持在 40% 左右的範圍內？

I don't think there was anything structural, David, that would prevent us from hunting higher margins. I mean, I think obviously, we'll be targeting -- maximizing the margins and maximizing the value. We feel though that 40% is a very good marker in terms of new product introductions, economies of scale and things of that nature. Obviously, if we can glean higher margins from the products that we're releasing, we'll certainly get there.

大衛，我認為沒有任何結構性因素會阻止我們追求更高的利潤率。我的意思是，我認為很明顯，我們的目標是——最大化利潤和最大化價值。我們認為 40% 在新產品推出、規模經濟和類似性質的事物方面是一個非常好的標誌。顯然，如果我們能夠從我們發布的產品中獲得更高的利潤，我們一定會實現這一目標。

Our next question comes from the line of Craig Ellis from B. Riley.

我們的下一個問題來自 B. Riley 的 Craig Ellis。

Congratulations on the progress with all the design-ins and the design wins. So I wanted to follow up on an earlier question on the laptop business. Could you just help us understand how substantial that is? Is the percent of product revenues? And given the design-in/win profile that you're seeing, how should we expect that will evolve through calendar '23 as a percent of product revenue?

祝賀所有設計的進展和設計獲勝。所以我想跟進一個關於筆記本電腦業務的早期問題。您能否幫助我們了解它的重要性？是產品收入的百分比嗎？鑑於您所看到的設計/獲勝配置文件，我們應該如何期望它在日曆 '23 中作為產品收入的百分比發展？

Craig, thank you first of all. And there are 2 things about some of the laptop wins we mentioned. One is the HP, which we have shipped in production already. And it started with -- there are 2 significant things that it started with an after market adapter -- laptop adapter win. So that's kind of those volumes are we don't disclose exact customer volumes, but those are synonymous with the aftermarket kind of volumes. But what's more important, that is -- or equally importantly, what that has done is it has opened up multiple designs within the same customer, right? So we expect that to grow those multiple design-ins to go to a significant high volume over the next 12 months.

克雷格，首先謝謝你。我們提到的一些筆記本電腦的勝利有兩點。一個是 HP，我們已經投入生產。它始於——有兩件重要的事情是從售後市場適配器開始的——筆記本電腦適配器獲勝。所以這就是那些數量，我們沒有透露確切的客戶數量，但那些是售後市場數量的代名詞。但更重要的是——或者同樣重要的是，它所做的是在同一客戶中開啟了多種設計，對吧？因此，我們預計在未來 12 個月內，這些多重設計將增加到一個顯著的高容量。

Secondly, what that has done is it's opened up more designs at the ODMs, and these designs at the ODMs are -- some of them are targeting inbox, which can be million unit plus kind of opportunities a year or even higher in some cases. And then we talked about the second -- we didn't name the customer, but second, we said leading worldwide laptop manufacturer. So we have shipped our initial high-volume production quantities towards that also. So both of those, we expect, especially in the second half of this calendar year to ramp at those respective customers. And then the ODMs themselves open it up for more designs that the ODMs are doing for a variety of OEMs.

其次，所做的是它在 ODM 上開放了更多的設計，而 ODM 上的這些設計是——其中一些是針對收件箱的，在某些情況下，收件箱可能是百萬單位，加上每年甚至更多的機會。然後我們談到了第二個——我們沒有說出客戶的名字，但第二個，我們說了全球領先的筆記本電腦製造商。因此，我們也已將最初的大批量生產數量運往該方向。因此，我們預計，尤其是在本日曆年的下半年，這兩種情況都會對各自的客戶產生影響。然後 ODM 自己打開它以獲取 ODM 為各種 OEM 所做的更多設計。

So just from a percent of the product revenue mix, Primit, how should we think about how all that adds up? How meaningful will that be exiting this year as a percent of product revenue, given that you're seeing very good design win traction across a host of other products as well?

所以僅從產品收入組合的百分比來看，Primit，我們應該如何考慮所有這些加起來？鑑於您看到非常好的設計也贏得了許多其他產品的吸引力，今年退出產品收入的百分比會有多大意義？

Yes. So overall, we still -- we are very -- the low power is growing now for us because of, again, the superiority of our products. We still expect the high-power revenues. We feel high power revenues were about 70% or more than 70% this -- the December quarter. We expect that trend, we expect both to grow. The high power, we expect to remain at that 2/3 value and the low power as a percentage of revenue, say, 1/3 -- 30% to 40% of the product revenue. That's our rough expectation with that.

是的。所以總的來說，我們仍然 - 我們非常 - 由於我們產品的優越性，我們現在的低功耗正在增長。我們仍然期待高功率的收入。我們認為，這個 12 月季度的高功率收入約為 70% 或超過 70%。我們期待這種趨勢，我們期待兩者都會增長。高功率，我們預計將保持在 2/3 的價值，而低功率佔收入的百分比，比如 1/3 - 產品收入的 30% 到 40%。這是我們對此的粗略期望。

That's really helpful. And then can you talk a little bit more about the capacity point. So you've been setting the expectation with us that capacity would ramp up. And it's nice to see that all the reactors are in place. But how linear should we expect to see that capacity ramp through the year? Is it fairly steady through the year? Very much a calendar fourth quarter of '23 development? Just help us calibrate the pace at which capacity will become revenue generative?

這真的很有幫助。然後你能多談談容量點嗎？所以你一直在和我們一起設定容量會增加的期望。很高興看到所有反應堆都已就位。但是，我們應該期望看到這一年的產能增長有多線性？一年到頭還算穩定嗎？非常像 23 年開發的第四季度日曆？只是幫助我們校準產能將產生收入的速度？

Yes. So we have 2 -- in terms of specifically the epi wafer reactor capacity, we have kind of 2 things to look at there. One is maximizing the output from the reactors that are existing, and bringing more of the reactors online. So Cameron talked about certain early phase of bringing the reactors online. Those were the reactors that were existing at Transphorm but not online yet. So those are coming up. Some of them are already online. We are shipping volume production with them. Some will -- are coming online. We expect them to be fully in production in the April to June quarter. So that's going very nice.

是的。所以我們有 2 個——就外延晶圓反應器容量而言，我們有兩件事要看。一是最大限度地提高現有反應堆的產量，並讓更多反應堆上線。所以卡梅倫談到了讓反應堆上線的某些早期階段。這些是 Transphorm 現有但尚未上線的反應堆。所以那些即將到來。其中一些已經在線。我們正在與他們一起進行批量生產。有些將 - 即將上線。我們預計它們將在 4 月至 6 月的季度全面投產。所以一切進展順利。

And the second part of the capacity is the new reactors that we have acquired, both in California as well as Global Wafers, our partner. And those reactors like we have said previously, are expected to be online by end. They are in place now, but they're expected to be online facilitized and early production by end of calendar year 2023. And then kind of more fully in production in the fiscal -- in the January to March of 2024.

產能的第二部分是我們在加利福尼亞州以及我們的合作夥伴 Global Wafers 收購的新反應堆。就像我們之前說過的那樣，這些反應堆預計將在年底前上線。它們現在已經到位，但預計它們將在 2023 日曆年年底之前實現在線便利化和早期生產。然後在 2024 年 1 月至 3 月的財政年度中更全面地投入生產。

And what all of that David allows us to do is, again, having this ahead of time this quarter and future, we are very excited about the second half of the calendar year at the current capacity and what all allows us to do with the demand in space in the current capacity this quarter, the January to March quarter. We are tracking about $4.5 million to $5 million in the January to March quarter. Of course, there's 5 weeks still plus to go there. A little bit of uncertainty in China remains.

David 允許我們做的是，再一次，在本季度和未來提前完成，我們對日曆年下半年以目前的產能以及所有讓我們能夠滿足需求的事情感到非常興奮在本季度的當前容量中，1 月至 3 月的空間。我們正在跟踪 1 月至 3 月季度的大約 450 萬至 500 萬美元。當然，還有 5 週的時間可以去那裡。中國仍存在一些不確定性。

But on the flip side, again and specifically with the capacity question, you appropriately asked, we are well poised to expect quite a strong growth in the second half of the calendar year. And especially on the demand side, converting the strong designing traction to revenue, both in high power and low power.

但另一方面，您又一次恰當地提出了容量問題，我們已做好充分準備，預計日曆年下半年會有相當強勁的增長。尤其是在需求方面，將強大的設計牽引力轉化為高功率和低功率的收入。

That makes a lot of sense. And then I'll use that as a segue into a cue for Cameron. Cameron, with regards to the inventory issue that you identified in the $2.8 million charge in the fiscal third calendar fourth quarter, given the active capacity ramp through the year, should we expect those types of charges to persist? Or have all those issues been resolved? And will that no longer be something that we see as part of COGS as we look at the current quarter and quarters ahead?

這很有意義。然後我會用它作為對 Cameron 的暗示。卡梅倫，關於你在第三財季第四季度 280 萬美元費用中發現的庫存問題，鑑於全年的活躍產能增加，我們是否應該預計這些類型的費用會持續存在？或者所有這些問題都已經解決了嗎？當我們查看當前季度和未來幾個季度時，這將不再是我們認為的 COGS 的一部分嗎？

Sure. Thanks, Craig, it's a good question. And I think that you will not see an adjustment of this magnitude in the future. I mean I think that we have got much improved processes, as we mentioned in our prepared remarks. We've solved some of the issues in relation to production. We've optimized our specs. And the focus, as Primit noted, is in terms of growth. There's always a possibility when you bring reactors up for some short-term lower yields, and that was one of the things that we experienced in the quarter. But not to the magnitude that we had in Q3. This was more of inventory that had built up over time as we brought up the reactors, particularly in Japan.

當然。謝謝，克雷格，這是個好問題。而且我認為您將來不會看到這種幅度的調整。我的意思是，正如我們在準備好的發言中提到的，我認為我們的流程有了很大改進。我們已經解決了一些與生產相關的問題。我們優化了規格。正如 Primit 指出的那樣，重點在於增長。當你為了短期較低的產量而提高反應堆時，總是有可能的，這是我們在本季度經歷的事情之一。但沒有達到我們在第三季度的規模。這是我們提出反應堆時隨著時間的推移積累的更多庫存，特別是在日本。

Got it. So significantly, this was Japan and maybe a little bit States side, but mostly over there. Okay. Got it.

知道了。非常重要的是，這是日本，也許還有一點美國，但主要是在美國。好的。知道了。

Yes. That's a good way to characterize it, yes.

是的。是的，這是描述它的好方法。

Yes. Okay. And then finally, in your prepared remarks, you had listed 3 things that could ultimately take gross margins back toward the target level. Can you just -- can you help us with just some insight into how you think those things can factor into the business as we go through calendar '23 and much of fiscal '24? What does it mean for the exit rate this coming fiscal year for gross margins? Not looking for specific guidance, but just broad strokes as the business gets some of those tailwinds and builds off of current gross margin levels?

是的。好的。最後，在您準備好的發言中，您列出了 3 件最終可能使毛利率回到目標水平的事情。你能不能——你能不能幫助我們深入了解你認為這些事情在我們經歷 23 年日曆和 24 財年的大部分時間時如何影響業務？對於下一個財政年度的毛利率退出率意味著什麼？不是在尋找具體的指導，而是在企業獲得一些順風並建立在當前毛利率水平的基礎上的粗略指導？

Sure. No, it's a great question. I think each of them will contribute a certain extent. I mean you've got new product introductions, which obviously we want to get people on to our newer products that helps the margins, particularly with our design-in activity, cost efficiency activities. But the biggest one probably is the scale, Craig. As we grow the business, we do have fixed costs of operating the business, and they are a much lower drag on margins as we grow the business. So that's going to be the one, I think, that decreases the margins as we go forward.

當然。不，這是一個很好的問題。我認為他們每個人都會在一定程度上做出貢獻。我的意思是你有新產品介紹，顯然我們希望讓人們了解我們有助於提高利潤率的新產品，特別是我們的設計活動，成本效率活動。但最大的可能是規模，克雷格。隨著我們業務的發展，我們確實有運營業務的固定成本，而且隨著我們業務的發展，它們對利潤率的拖累要小得多。所以我認為，隨著我們前進，這將是降低利潤率的一個。

And we're certainly looking to increase them pretty steadily over the course of FY '23 and FY '24. And I think that the other factor that will assist in this the product will be once we secure the government program that we're looking to secure, and that will increase that stream of revenue as well. So 3 or 4 different factors. I think each of them will contribute 2 to 3 points of margin. And the biggest one, I think, is in terms of just the scale of the business as we execute on the design-in and product activity that we're seeing today.

我們當然希望在 23 財年和 24 財年期間穩步增加它們。而且我認為，一旦我們獲得了我們希望獲得的政府計劃，這將有助於該產品的另一個因素，這也將增加收入流。所以 3 或 4 個不同的因素。我認為他們每個人都會貢獻 2 到 3 個點的保證金。我認為，最大的一個是我們在執行我們今天看到的設計和產品活動時的業務規模。

(Operator Instructions) Our next question comes from the line of Richard Shannon from Craig-Hallum.

（操作員說明）我們的下一個問題來自 Craig-Hallum 的 Richard Shannon。

I think maybe I'll follow up on the gross margin topic, which you hit on, Cameron. I just want to kind of replay the December quarter here. I think you're characterizing the gross margins as similar that we've seen in the recent past year, excluding the inventory write-down and the yield issues. Did I catch that correctly?

我想也許我會跟進你碰到的毛利率話題，卡梅倫。我只想在這裡重播 12 月季度。我認為你將毛利率描述為與我們在過去一年中看到的相似，不包括庫存減記和收益率問題。我沒聽錯嗎？

Yes, that's right, Richard. That's perfectly characterized.

是的，沒錯，理查德。這是完美的特徵。

Okay. So if I take out the $2.8 million, I get, I think, a 5% number here. So the yields would take us somewhere into the teens or 20s then, is that right?

好的。因此，如果我拿出 280 萬美元，我認為這裡得到 5% 的數字。所以收益率會讓我們進入十幾歲或二十幾歲，對嗎？

Yes. The $2.8 million is particular to the kind of historical issue that centered in Japan. And we also had a current quarter lower yields associated with bringing up other capacity. So when I think about comparable yields, I comprehend both of those instances, Richard, because neither of them will be part of, obviously, a long-term margin model. These are short-term instances.

是的。 280 萬美元專門針對以日本為中心的那種歷史問題。而且我們本季度的收益率也較低，這與提高其他產能有關。因此，當我考慮可比收益率時，我理解這兩種情況，理查德，因為它們顯然都不是長期保證金模型的一部分。這些都是短期的例子。

Okay. And to that point hear about short term, is that something you'd see any yield issues in this March quarter or beyond?

好的。就這一點而言，聽到短期，你會在這個三月季度或以後看到任何收益率問題嗎？

To a much lesser extent than we saw in this quarter. There's always -- when you bring that result, you never go from 0 to 100% right away so that that's one of the things we experienced in this quarter. It may linger a little bit into next quarter, that's fair to say. But certainly not to anything like the same extent we saw. This was a one-off strategic adjustment to allow us to use our improved processes and optimize fix to scale the company.

程度遠低於我們在本季度看到的程度。總是 - 當你帶來那個結果時，你永遠不會馬上從 0% 到 100%，所以這是我們在本季度經歷的事情之一。公平地說，它可能會持續到下個季度。但肯定不會達到我們所看到的那種程度。這是一次性的戰略調整，使我們能夠使用改進的流程並優化修復來擴大公司規模。

Okay. So if I -- so we'll see a margin maybe -- margin in March impacted a little bit and then hopefully in June and maybe after, we'll see it kind of get to a more normal level, it can grow towards 40% over time. So if I look at the last 4 quarters prior to December, we saw between mid-teens and low 20s. So would it be fair to think about somewhere in that range, hopefully, at the higher end that would happen in June. Is that a fair way to think about it?

好的。因此，如果我——所以我們可能會看到一個利潤率——3 月份的利潤率會受到一點影響，然後希望在 6 月甚至之後，我們會看到它達到一個更正常的水平，它可以增長到 40 ％ 隨著時間的推移。因此，如果我查看 12 月之前的最後 4 個季度，我們會看到介於 20 多歲和 20 多歲之間。因此，希望在 6 月發生的較高端考慮該範圍內的某個地方是否公平。這是一個公平的思考方式嗎？

I think so. I think you're looking at mid-teens is a manageable conservative number for the March quarter. And as we grow the company and scale the company as following on from Craig's question, you should continue to see those margins pick up.

我想是這樣。我認為你看到的是 15 歲左右是 3 月季度一個可控的保守數字。隨著我們按照克雷格的問題發展公司並擴大公司規模，您應該會繼續看到這些利潤率上升。

For the June quarter -- exactly the March quarter is what Cameron said. And the June quarter is pretty much we expect to target what you alluded to.

對於六月季度——卡梅倫所說的正是三月季度。我們預計 6 月季度將以您提到的目標為目標。

Okay. Perfect. And one other dynamic just trying to understand here the referred to on this call, I think, in the last call as well as one of the benefits here is getting into newer products, Gen IV and Gen V here. Maybe if you can give us a sense of where you sit today in the split between Gen IV, Gen V or even older? And then -- and how fast do we see that transition this year?

好的。完美的。我認為，在上次電話會議中，還有一個動態只是試圖了解本次電話會議中提到的，這裡的好處之一是進入更新的產品，即 Gen IV 和 Gen V。也許如果你能告訴我們你今天在第四代、第五代甚至更老的分裂中所處的位置？然後——我們今年看到這種轉變的速度有多快？

Sure. So right now, Gen IV is the one we are transitioning in some of the areas we have already transitioned. But Gen III, which we had design-ins, both high power and low power, that's still reasonable percentage of the mix. So it depends what the application area is lower power tends to be sometimes faster transition. We've got some very nice wins. We talked about micro inverters, right? I believe we are the only GaN company who's actually announced production wins in production with microinverters, the 800-watt or 1,500 watts, so far. So that's an exciting segment for us. That was -- that even we are going to transition to Gen IV, for example.

當然。所以現在，第四代是我們正在過渡的一些領域，我們已經過渡了。但是我們設計的第三代，包括高功率和低功率，仍然是合理的混合比例。因此，這取決於應用領域是什麼，較低的功率有時往往是更快的過渡。我們取得了一些非常好的勝利。我們談到了微型逆變器，對吧？我相信，到目前為止，我們是唯一一家實際宣佈在微型逆變器（800 瓦或 1,500 瓦）生產中獲勝的 GaN 公司。所以這對我們來說是一個令人興奮的部分。那是——例如，即使我們要過渡到第四代。

Gen V, just on the cusp. Gen V, we have only some of our very early design wins, some of our UPS wins have been with Gen V. So that whole transition remains. So right now, Gen IV is, I would say, our median Gen III on the older generation side still supporting and Gen V just on the cusp of the introductions.

Gen V，就在風口浪尖。第五代，我們只有一些非常早期的設計勝利，我們的一些 UPS 勝利已經與第五代有關。所以整個過渡仍然存在。所以現在，我想說的是，我們的中位數 Gen III 在老一代方面仍然支持，而 Gen V 剛剛處於引入的風口浪尖。

But the second thing we also do independent of the generation, which is a key driving factor is and like we alluded in the presentation, packaging, for example. We are bringing up both for the purpose of second source as we target skilled volumes as well as cost down, we are bringing up other packaging partners, packaging subcontractors. And some of that, especially on our higher power side can be 5 to 10 points of margin improvement over time with the volume with the additional packaging partners. And that would be independent of the new generation.

但是我們還獨立於一代人做的第二件事，這是一個關鍵的驅動因素，就像我們在演示文稿中提到的那樣，例如包裝。我們正在培養第二來源的目的，因為我們的目標是熟練的數量以及降低成本，我們正在培養其他包裝合作夥伴，包裝分包商。其中一些，尤其是在我們更高功率的方面，隨著時間的推移，隨著額外封裝合作夥伴的數量增加，利潤率可以提高 5 到 10 個百分點。這將獨立於新一代。

Okay. That's great detail. I'll have to review those comments and probably get back to it, but that's very helpful. Let's see, on a prior question, I think you talked about kind of revenues for the current quarter being kind of $4.5 million to $5 million. Wondering if the government programs are going to be contributing anything to this quarter? Or is it going to be below the previous levels you talked, I think, about $0.5 million per quarter in the recent past?

好的。這是很好的細節。我將不得不查看這些評論並可能會返回，但這非常有幫助。讓我們看看，在一個先前的問題上，我認為你談到了當前季度的收入在 450 萬到 500 萬美元之間。想知道政府計劃是否會對本季度有所貢獻？或者它會低於你之前談到的水平，我認為，最近每季度大約 50 萬美元？

The $0.5 million...

50萬美元...

Go ahead, Cameron.

來吧，卡梅倫。

I was just going to say that the $0.5 million, Richard, is really indicative of the fact that we're winding down the prior program. You saw that the run rates were higher in earlier quarters, and we would hope if we are well positioned for this award, should we get awarded that we would see a greater contribution from government in the March quarter.

我只是想說，理查德，50 萬美元確實表明我們正在結束之前的計劃。你看到前幾個季度的運行率更高，我們希望如果我們能夠很好地獲得這個獎項，如果我們獲得獎項，我們將在三月份的季度看到政府做出更大的貢獻。

Is it baked into that range at all at these levels, so it could be upside if and when it happens?

它是否在所有這些水平上都被烘烤到那個範圍內，所以如果它發生並且何時發生它可能是上行的？

Yes, that's what the range is about.

是的，這就是范圍。

Yeah, that's what the range is for.

是的，這就是范圍的用途。

Got it. Okay. Perfect. That's helpful. Let's see here. Primit, on the automotive or I guess more specifically on the 2- and 3-wheeler opportunity you've been talking about for a few quarters here. I think last quarter, you talked about building a multimillion dollar base of revenues here in fiscal '24 that ends in March. And I think this quarter you talked about getting some wins in place for this calendar year. So just want to make sure that this is a change in viewpoint or possibly a push out in time frame here. I just want to get my understanding here of your new comments relative to last quarter.

知道了。好的。完美的。這很有幫助。讓我們看看這裡。 Primit，關於汽車，或者我想更具體地說，關於您在這裡討論了幾個季度的 2 輪和 3 輪車機會。我認為上個季度，您談到了在 3 月份結束的 24 財年在這裡建立數百萬美元的收入基礎。我認為本季度您談到了在本日曆年取得一些勝利。所以只想確保這是觀點的改變，或者可能是時間框架的推遲。我只想在這裡了解您相對於上個季度的新評論。

I think the market, we probably -- the market itself is there, right, in the thing, and we are working on the design-in activities. So I believe we had said the dispersed production wins by end of calendar year 2023. So that would put the ramp in calendar year 2024.

我認為市場，我們可能 - 市場本身就在那裡，對，在事物中，我們正在從事設計活動。所以我相信我們已經說過分散生產會在 2023 年年底獲勝。所以這將在 2024 年實現增長。

Okay. I think it's -- okay, fair enough that I thought the transcripts in fiscal '24 and that okay. I'm glad to have that straight away here. Let's see here. Kind of a big picture question here, Primit, and I'll jump on line. I think one of the big drivers here again over a long period of time is getting costs down below silicon. You obviously have a value-add here even before you get to that point here. But where do we sit here in terms of getting prices of GaN and your specifically towards silicon? And when do you think that will happen? And how do you see the inflection of demand, I guess, in first lien adapters and chargers as you get to that point?

好的。我認為這是 - 好吧，很公平，我認為 24 財年的成績單很好。我很高興能在這里馬上得到它。讓我們看看這裡。這是一個大問題，普里米特，我會馬上上網。我認為在很長一段時間內再次出現的主要驅動因素之一是將成本降低到矽以下。顯然，您甚至在到達此處之前就已經在這裡增值了。但是，就獲取 GaN 的價格以及您特別針對矽的價格而言，我們坐在哪裡？你認為什麼時候會發生？你如何看待需求的變化，我猜，當你到達那一點時，第一留置權適配器和充電器？

It's, for us, a 2 parts to that, again, for us that in the demand inflection and GaN, in general, it is happening for Transphorm, which is both low power and high power, right? On the high power, we directly take on silicon carbide and we significantly improve on performance with silicon carbide and long-term costs also there. On the low-power side, it's taking on silicon.

對我們來說，這是一個 2 部分，對於我們來說，在需求變化和 GaN 中，一般來說，它正在發生在 Transphorm 上，它既是低功率又是高功率，對嗎？在高功率方面，我們直接採用碳化矽，我們顯著提高了碳化矽的性能和長期成本。在低功耗方面，它正在採用矽。

Some of our ODMs, we talked a lot about OEMs and ODMs in the early part of the call. Some of our ODMs actually what they say is the trends they see from Transphorm from others they expect in 5 years, one particular ODM commented, in 5 years, we expect the entire adapter market that they are serving, this is one of the top 5 in the world, move to gallium nitride. So that trend is happening with respect to -- like we said, we enable the lower total BoM cost of the solution.

我們的一些 ODM，在電話會議的早期我們談了很多關於 OEM 和 ODM 的問題。我們的一些 ODM 實際上他們所說的是他們從 Transphorm 看到的趨勢，他們期望在 5 年內看到其他 ODM，一位特定的 ODM 評論說，在 5 年內，我們預計他們所服務的整個適配器市場，這是前 5 名之一在世界上，轉向氮化鎵。因此，這種趨勢正在發生——就像我們說的那樣，我們能夠降低解決方案的總 BoM 成本。

So even today, actually, some of the reasons we are getting these wins and increasing our penetration in the adapter side is because the -- when the customers look at -- especially for inbox, what they want is the BoM cost should be the same as -- or very, very similar to what they get of silicon. So that we are enabling today. Over time, GaN, definitely over the next several years, approaches the cost of silicon, the price we get the value of the performance and the lower BoM cost of the GaN.

因此，實際上，即使在今天，我們獲得這些勝利並提高我們在適配器方面的滲透率的一些原因是——當客戶查看時——尤其是對於收件箱，他們想要的是 BoM 成本應該是相同的作為 - 或者非常非常類似於他們從矽中得到的東西。所以我們今天正在啟用。隨著時間的推移，肯定會在未來幾年內，GaN 接近矽的成本，即我們獲得性能價值的價格以及 GaN 的較低 BoM 成本。

I would now like to turn the conference back to Primit Parikh for closing remarks.

我現在想把會議轉回 Primit Parikh 作閉幕詞。

Thank you so much, everyone, for tuning in, and we look forward to execution and growing the GaN market, which Transphorm's GaN products, enabling our customers to win every day and enabling significant amount of energy and efficiency savings. Thank you all.

非常感謝大家收看，我們期待 Transphorm 的 GaN 產品執行和發展 GaN 市場，使我們的客戶每天都能獲勝，並實現大量的能源和效率節約。謝謝你們。

This concludes today's conference call. Thank you for participating. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連接。