PI - Earnings call transcript Q1 2021

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Operator

Good day, everyone and welcome to the Impinj First Quarter 2021 Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. [Operator Instructions] Please also note, today’s event is being recorded. At this time, I’d like to turn the conference over to Ms. Relations. Investor Hayes-Roth, Ellen ahead. go please Ma’am,

Ellen Hayes-Roth

will Thank financial CFO, you, joining results. you for review first performance. and and today’s our our overview market of opportunity and follow Good to discuss with second afternoon and quarter CEO, Co-Founder us Impinj’s XXXX Baker, Chris thank a Impinj’s XXXX brief call, of results Impinj’s all outlook. Cary Diorio, operator. XXXX provide will first On detailed quarter quarter a

meaning on the extent forward-looking call. from expected and they forward-looking we date or of of questions. conference this in for statements financial on including outlook the the To impact remarks, of of and the Reform the not or call section Dossett, session. Investor on during and availability, website. the Impinj’s those of will represent partners responses customers, production the our the call certain of also company’s open then the condition are historical data, will financial potential COVID-XX make only products. plans, prepared or Litigation that the performance; the is Jeff the join CRO, our We regarding XXXX. within authorities, adoption trended Management’s available such are government expected note objectives Securities or with statements along that our Chris the the facts, Private Please such Relations statements, to Act this potential prospects; and Any are expected call COVID-XX; and company Cary we make will as our results, operating of Q&A business,

to uncertainties. differ reports COVID-XX, on see including the and factors quarterly statements we to the results our While are any in otherwise events, and our we update a risk statements not based current of we believe by file future any because SEC required these and risks. actual make, do risks are subject annual whether as We concerning Please as disclaim, materially about the reasonable, expectations forward-looking law. expressly or any could forward-looking with statements, except information obligation undertake, result or information, applicable for more new alter

call, today’s measure. sheet or we for are cash otherwise, on flow are where measures. state explicitly discuss, we financial revenue, financial except non-GAAP During is and Free flow basis. a numbers non-GAAP a all Balance metrics cash GAAP

X. now and Co-Founder to to please note Needham Services Global turning that company and and Before Technology and the on connecting these Growth Xth events. CEO. We at Baird’s Oppenheimer Emerging on Conference Technology XX, Chris? Annual XX Media the May XXXX on results outlook, in participate turn and to I will Annual the Conference with XXth Chris Diorio, May Consumer, and our call the will of June Conference Virtual look many forward you Impinj’s

Chris Diorio

Thank you, you thank joining call. all Ellen. the And for

endpoint Our first RAIN At their we supply. digital Already demand, our IC those as XXXX first needs, our and by exceeding in upside. transformation. wafer inventory and we Despite and retail enterprises enough. but significant even our slowly in on in quarter capitalize shipping our MXXX constrains that Also headwinds We wafer prebuilt supply, additional the first we wafer quarter XXX-millimeter of hindsight, the amount the in endpoint fully didn’t record reserved Leveraging quarter. the volumes, and quarter. at ability in exceeded grow, quarterly demand worldwide Endpoint XXXX, expectations IC bookings first another XXXX us as surged wafer limited sold against In partners’ our we the wafer tight High shipped of are driven, progress first demand time, opportunity. bookings surged, to quarter accelerating we same strong soon loss-prevention IC fully focused Revenue those a also today inlay ramped records, on inventory introduced set enough. a anticipated restricting abate, quarterly are, wafer part, engine significantly and own exceeds the partners strength post-processing wafer supply. we Impinj in runners results underlying today’s and know capacity. built were bookings business. guidance. that when, our market, as carefully in profitability our shortfalls back wafer record we for hand-to-mouth, having will demand the pace their our growing managing remain in that hoped, uncertain more partners that existing than the XXX-millimeter In so the hindsight, mid-XXXX, even didn’t XXX-millimeter strong terrific highlight in the we most and build strong, We XXXX operating recall in invest consumed became Recall limited But inventory with pandemic. record. volume inventory. even depths supply wafer part, bookings setting of quarter stronger our quarterly revenue our newly invested fourth on

larger capacity begin quarter quarter MXXX scheduled XXX-millimeter our have. we online in now coming post-processing third we expansion current demand was XXXX, many to capacity. outstripping third First are capacity than XXXX the quarter, times maturing for With our

wafer our foundry we market IC this spoke our last XXX-millimeter not IC We with output we quarters, two or quarter significant third shipments recognize next customer supply In need fully is in year, our our doing, those until orders through and and in revenue plan our of the prioritize We post-processing to wafer total exceeding quarters, total XXX-millimeter XXXX product far expect XXXX. Looking Short shipments. the to and about focus already crossover our IC simply inventory expansion constrained. to And remains volumes. partner, units MXXX from ramping despite so our not navigating grow least between at increase is into endpoint moderate the supply. demand will quarter, today’s shipped for capacity the our endpoint second constraints, a unit later operational to stretch satisfy demand, but second our ecosystem burndown, MXXX, our will we do XXXX. inventory declining exceeds

subcontractor declined exceeded at Delays restricted reader revenue revenue a packaging supply, our causing quarter-over-quarter. shortfall systems IC sales. increased quarter First reader from that improved revenue our

supply increased, dock-door here We we partners quarter. in IC opportunities will for those revenue below to delays logistics. partner-led second normalize production Reader quarter. operating to ICs, but Also, again, reduced anticipate the moderate our levels. to carry significant our supply and quarter certain into endpoint strength expect the are units shortfalls shoots Like RAIN-based and moderate loss-prevention and our second demand first in first But In temporary into at demand partner chain remain with hand-to-mouth. in lean supply quarter. their exceeded shipped declines, IC very to with we shift driving quarter-over-quarter quarter, typical aggregate and green bucking in opportunities packaging reader reader expect inventory, modest supply, retail, our component backlog reader third component channel production shortfalls some revenue. engine, with of to limiting reader second products recognizing We causing reader seasonal

expect visionary in from remaining We the units the quarter. prepayment $X million against deliver second European retailer the to largely

retailer quarter, XXX% consecutive by based self-checkout long-term at for prevention. even platform, a generated we our consumer Today, second global by more required the endpoint to am terrific from leading and via RAIN-based looking a deployment prevention For self-checkout. now our the opportunities with that meaningful I loss retailer in that revenue self-checkout Asia, with grow the IC tagging convinced loss a opportunity touchless potential represent also

him providing brings years our is the with to of and Sanghi already Steve our we a forward wealth and are Steve’s operational input and and of ahead. valuable help to thrilled organizational directors. business. board business On look side, months to Steve to I and depth the welcome advice in insights,

and welcome positive announce join also exceeded of team private and adjusted Impinj officer. XX and a Wong, company positive as early bookings years strengthened Brian closing, brings well In that happy strong our We Brian, deep free technology thrilled in quarter, opportunities cash as markets, will to our business and today. to expertise see four-time Brian delivered flow. ahead. know-how. emerging chief our team as record profitability the EBITDA are in semiconductor growth We May and demand guidance, technical delivered a we product CEO, birthday

for by require also well close We as constraints execution that IC partners alignment us. as superb our operational and with empathy face supply

and confidence the utmost team, efforts turn now in to ahead With will against I the Cary. our deliver Impinj them. over opportunities by to energized I call the am the

Cary Baker

quarter Thank you good provide first Chris; and review Today, quarter will outlook. results I our financial second our afternoon and everyone.

XX.X% quarter year-over-year X.X% down $XX.X fourth XXXX. was up $XX.X million first quarter quarter XXXX million, in in million $XX.X sequentially compared First revenue and from with

first quarterly quarter $XX.X quarter XXXX, was our difficult First million, $XX.X of quarter expedite expectations, included XXXX facing compared requests. record, in $XX.X quarter million Endpoint a from that a endpoint in XX.X% up new revenue revenue million IC up despite year-over-year customer first setting and fourth million exceeded with $X.X XX.X% XXXX. IC comparison to sequentially

Given amount were significant and our lines. bottom sell inventory, supply fully the a environment, able top of we to tight benefiting both reserved

XXXX we stretch we to as quarter forward, our second Looking sequentially, expect revenue IC endpoint supply. decline

$XX.X revenue supply and $X.X from $X.X XX.X% a revenue from with systems million XXXX, million, while and quarter first logistics in quarter First comparison revenue gateway fourth revenue sequentially significant faced revenue reader Reader increased, down North large the quarter IC year-over-year year-over-year. and to delays. and in was first constrained revenue Reader chain packaging by American was quarter project. down XXXX. million XXXX, IC compared difficult had declined, Gateway X.X% which first the sequentially

the retailer. to shipments Please partner we model your We revenue quarter to you expect XXXX note our solution second and European comparisons. third-quarter grow as visionary systems these deliver loss-prevention as the sequentially,

first margin decrease in XX.X% was sale partially XXXX, reserved first XX.X% offset with inventory increase sales obsolescence The and of XXXX. fully fourth in to inventory quarter and indirect reserved The of and excess by against driven was offset by quarter by First gross by charges mix. quarter-over-quarter fully product in the quarter leverage costs. compared partially quarter driven mix, XXXX compared year-over-year was product XX.X%,

$XX.X $XX.X reserved XXXX. and professional $X.X points. $XX.X expense and development expense was The million. was primarily and increased was due administrative and fourth to quarter expense The marketing increase million from sequential was inventory XXXX million. million. selling payroll first in Research services. first was Sales taxes General compared XXX expense basis quarter $X.X million with and benefit Total operating in $XX quarter quarter the first was million,

First in quarter of of XXXX million $X with profit quarter profit compared a XXXX. first-quarter a of $XXX,XXX, a in and $X.X loss adjusted EBITDA was fourth million

quarter million. First net was GAAP loss $X.X

share net or non-GAAP diluted of $X.XX million count quarter using share, First XX.X weighted-average a profit per was shares. $XXX,XXX,

and of quarter fourth in $XXX.X XXXX Turning ended and quarter equivalents we short-term to million the with $XXX.X million, the first million cash, $XXX.X with balance in sheet, investments cash compared exercises and totaled options was adjusted million XXXX. The increase the down quarter. $X.X from due inventory, EBITDA. million, reduced quarter Inventory proceeds positive prior stock sequential to first primarily from $XX.X

consecutive convertible following more moved conversion new our current the adopting for notes XXX% debt of because XX adjusted ended days January. convertible convertible reflects price into cost than value the issuance March debt the accounting XX Also, liabilities stock XX. now par liability the Our trading guidance our notes exceeded for the of price us in

First Free quarter million. $X.X million. was activities by $X.X million. totaled $X and provided was operating cash Property positive cash net flow equipment purchases

Before I that on also highlight the second few an I strategic our items give to want were a quarter guidance, our turn update to want initiatives. first to to of few a quarter. I unique

expedite revenue high-margin packaging for We reader for third will IC improve our in reader we delays ICs. reader will are deliveries, in ICs anticipate paying packaging To increased IC revenue cost reader quarter second grow our XXXX. normalized sequentially. First, quarter and

be embedded into today’s limited. of our revenue constrained, will revenue will a record assumption production point, lower factor Like IC the through in IC resulting growth, wafer end. adoption from endpoint partner, year guidance a remain We quarter, first bookings in and than continued our vantage MXXX a strong foundry endpoint second key we not third-quarter pace but for the quarter, accelerating From increased quarter potentially growth endpoint revenue IC supply demand, typical endpoint bookings. will IC be absent second quarter. assume revenue our quarter turns XXXX Second, in first in supply,

production Third, throughput as we expenditures remain second XXX in capital deploy millimeter elevated post-processing third-quarter additional will XXXX. capacity increase our in beginning quarter, to

XX% expect to million, the to compared and range outlook, million the a our second of at revenue Turning million in increase quarter $XX.X we $XX.X with quarter $XX.X between midpoint be XXXX. year-over-year second

of loss EBITDA adjusted breakeven. between expect and We to a be $X.X million

million our thank turn the between On the and we team, will session. between question-and-answer to million loss now XX.X line, loss non-GAAP call XX.X bottom our $X.XX $X.XX support. the weighted-average the you to diluted share shares. operator $XXX,XXX, Impinj million on and $X I a expect ongoing per-share closing, investors, for and customers, between and our reflecting open to a a In want count our I suppliers your non-GAAP

Operator

at gentlemen, with the first your Scott Instructions] and question-and-answer go ahead from Ladies Searle begin question this today our And comes [Operator question. Please time, ROTH session. from we'll Capital.

Scott Searle

constraint my quickly reserved in did Hey, operating good the basis that Nice just visibility And taking current supply of very, on you're talking that visibility to will of there sales, X million endpoint Cary inventory you quarter, inventory questions. very be afternoon. in there are imagine about And the Thanks the the XXX% and quarter XXX input, of would bookings any is expectation in about the just was completely the for depleted? is difficult so just that being I period. virtually points, June inventory I environment. terms Hey additional confirm ICs, in a what the basically forecasting reserved hear to you're sold then quarter? job in the reserved given

Cary Baker

Hey Scott, for thanks question. the

in don't go can remain, your – heard believe a inventory million have come cost impact is gross to of is margin the math then quarter. – – some perhaps could ahead. question benefit through that reserved first inventory. And was in this $X There so the and quarter, I from next reserved XXX% You but good. fully it sale been the was There we the perspective basis some your fully about around have XXX could inventory, still a point from a worth of second correctly bulk

Scott Searle

No, that going question, the I sorry. reiterate was just to

Cary Baker

From are enhanced Okay. endpoint visibility, booking the do visibility, we have customers future. further into

through because we of lower we that's stretch quarter, the similar also visibility spoke desire to to second our of guess, because assumption, but I enhanced our quarter. what in the in supply first the terms For did quarter,

QX guidance, a of also have it’s some So the duration limited into supply stage, demand we limited guidance. bookings. visibility a not At this the given

Scott Searle

Okay, great.

Chris Diorio

Chris, add is more just I’ll This little a there. bit

that And the side kind packaging question recognize business, in we're of visibility the for second we was components Your have the on our are – like through IC. there on also system constraints just of readers. example getting at quarter, our our but reader in working

So we have there quarter. to through things is work – still in the

Scott Searle

constrained push on able and you otherwise? in environment transition the part this do just being millimeter, or maintain maybe pace continue to in given a in you. on move I quicker tags wafer to Are in dig XXX to capacity customers of in that bit we're millimeter. front? XXX still is to NXP partners are in, What the products going like of the that share of from or that MXXX, Got to constraints managing to going expect in more that And a XXX I of standpoint customer their Chris, the able quicker little own the to guys just allocate in this, inlay terms direction, RFID environment of millimeter, terms of at guess as their your globally managing to And you and think they're that be some transition?

Chris Diorio

Okay, let do answer and to me me it. all to don't I best to come catch those my try questions if of back

XXX for see for our So millimeter XXX as both. demand our strong well being existing that's MXXX as our our Monza millimeter strong products, today RX, example, both we that for demand product

right, whole in bit now wafer of many We XXX the are you of both But in constrained in constraints post-processing, focused more other as little point the industries. terms of availability are MXXX. for yes, are which at time. this constraints industry course, on were do the The wafer has right the millimeter our maturing really we a latter year,

say industry IC And would entire so endpoint in is that – we constrained terms our I would from perspective the the availability. of

numbers. about brings that the also position We and market about it You RAIN the today typically into bit a share get to the what when our the Alliance the share. about get good until in of market. we little year MXXX visibility end feel asked don't We

can't get a good but in we unit our – that especially going forward of now, for very the and when numbers, we'll in – and here stand year. half second total out right we I about actually share final where look from feel we our ability to volumes later So report from we maximize say second position the the

Scott Searle

lastly, this you're quarter? what all loss And the if or remaining terms and ship as the just Thanks. component terms engine, that of constrained Great. recognize is I in that will clarification in could, able the on majority well, in the quarter of to of component ship also prevention

Chris Diorio

units Yes. QX. remaining we We will – at $X of million of shipped launch QX, we handful the ship the end a in

Scott Searle

you. Thank Great.

Chris Diorio

Okay. you, Thank Scott.

Operator

question from next Harsh from our with comes your go question. Kumar Piper ahead Sandler. Please And

Matt Farrell

on Matt for question. me is and letting this solid thanks guys, Harsh. Hey results the on Congrats for ask a

pass should think guys First, as either the deal and with able we we And the of I there you been mix the are trajectory to that margin thinking should be XXXX, to supply XXXX? – guess the onto having costs the are outside any you margin how gross think gross in about for constraints anything about have customers? about that as these costs we

Cary Baker

There year. this impacting gross of Yes. margin a lot Thanks Matt. factors are

revenue QX me benefit let QX. margin the prevention from quarter. in with start First primarily that gross engine will just landing loss

So the in second gross we anticipate up margin quarter. going

we third systems IC, more is product, state. margin As that back offsetting our we higher normalized quarter, we'll reader get highest get but benefit partially we'll look a from least will the the lose into our to revenue, at back systems is which

then MXXX accretive in and moving structural those gross happen because sales increases to of as advantages overall the will mix that takes then and comment relative be to business. rest overarching of QX. kind IC to margin, kind are the into an of endpoint of there, QX our and So two And that in puts

in rest year So MXXX and sales margin that as will throughout provide go. it gross of year the lift next we anticipate the the increasing quarter-over-quarter some

Jeff Dossett

this are number and full of limited course, as Matt, it forward. comprehensive but evaluating But pricing existing regarding making is you imagine, options, question agreements. to going options we short considering your to including our a are in pricing not to there as a a pricing, long-term set of consider again, decision, of range of relates a can Jeff, are we partner factors

Matt Farrell

customer insights every kind of those retail, understand as for different, are think what days and then how customer some this Thanks retail that every conversations inning global I with pickup last COVID is the would kind but reopening geography we guys. that world my here and and question, for we second in And you cases of around the characterize XX recently. changed have over of

Jeff Dossett

Matt, this again. Jeff is

I see the I that in other example American for is when make better in pace U.S. up In are as encouraged our of first and and think around China, moving well re-engaging globe. are customer markets. than partners recovery to comment and North I geography, faster hold the the we by varies performance to recovery of compared particular, and end in opportunities think The we would are kind continuing footwear apparel pace Europe. we

quarters the customers emerging but recovery the and look those our by pace forward of different Impinj, adaptation of partners opportunities ahead. So and we encouraged overall overall in and the is geography, by economic we're to

Matt Farrell

solid results. Thanks again the on guys, congrats

Jeff Dossett

Thank Matt. you. you, Thank

Operator

question. Derek comes Our from Colliers. with ahead Instructions] question [Operator go Soderberg your from next Please

Derek Soderberg

So I millimeter until post-processing like sounds my on to The has questions. clarify bottleneck XXX your millimeter had thereafter? constrained completely expanded. in the XXX potentially with MXXX MXXX that for It from be the today something if you demand script. capacity correct? of capacity seeing will to want remain Thanks you transition, control, everyone. just Hi output taking commentary you're fulfill would excess that more made sort is able already

Chris Diorio

is Okay. Chris this Thanks Derek, so speaking.

As now the on right bottleneck is side. of our

post-processing We through the are capacity pipe. our XXX-millimeter wafers constrained by getting

up the from unless build mature and XXX-millimeter our additional that post-processing wafers, essentially year, And quarter. the the technology as – will the That get said, said, we are and ramp the start part unlimited we end online coming using, of additional the As continue in we to wafer not we capacity. wafer latter especially our get third of year, we our we're upside that we XXX-millimeter throughput and machine that got invested dicing we foundry we've have to expect partners. constraints plasma through will in through capacity the

constrained. constraints right as So wafer now, we stand the in post-processing limit,

Derek Soderberg

Got it.

a I my you've the As follow-up, commentary called your food. apparel maybe more largest customer hoping a for logistics, market $XX as $XXX They think apparel like it from I of that to is unit stated wanted $XX see they opportunity as I on then gap you I and for could that billion or recent in said was they also, And about billion was billion. opportunity billion size unit me. bridge in it. think talk the $XX

your their it in estimates would on think Chris, thoughts helpful, also I hear be to markets. Thanks. non-apparel

Chris Diorio

you will of my will depends and evaluate how bit I to your the answer because kind market Sure. The those over be you on frame answers answers the do a time which evaluation. do soft questions. best it little

Our of the opportunity apparel total market best is XXX billion retail worldwide about units. estimate

cut to servable judged crossing the you market time us, want you is market you opportunity, And that's larger to if well. tail based the that to up depending have market of what as to frame, servable smaller. basically think the or we chasm The is But your long the of including the course, may smaller the that's on whole where model, or the near-term end kind us. of adoption, laggers on XX with bit billion use available a We the about down volumes. market,

net is us broadly units. from logistics. of stand XX your answer. the cast We the side and how chain and different on logistics where That's continue a to a depends billion bit Supply today. is opportunity we believe market little available It retail on supply about you for that for total chain

number food, becomes with for at shipped, you lens the it's they a pallets and kind food the opportunities, smaller other And parcels retail going, example, at and in very look very, for looking hundred and you to the that are million units large. and if at if boxes several just automotive look so and boxes the relatively space, of including year. many shipped interesting get per smaller you're number, as opportunities of cartons and If restaurants, all pallets

food at items If It's food it's you to including the that go measured opportunity, trillions. total look consumers, gigantic. the in

So on the that of very little partners. we our with things. take lens It's bit we feel market view different consistent is a our just

Derek Soderberg

Perfect, thanks.

Chris Diorio

that question, Does Derek? your answer

Derek Soderberg

Yes.

Operator

And our next question comes from go & ahead Jim Company. Ricchiuti Needham Please from your question. with

Jim Ricchiuti

afternoon. ordering. environment shortages, good like cases, component triple this When shortages, see of double, a we supply kind risk this we always in where Hi, some an have chain there’s for

that. customers I'm your just end to balance? monitoring and out until extent of are extent perhaps supply/demand some And to are discretionary further maybe So there's for what what then a projects better wondering you things some slide

Chris Diorio

Thanks Jim.

So off Jeff. this and to going the question is answer, Chris. I'm hand then going first to and to of take I'm the part

visibility always we ordering levels especially But Of seasoned, they a our purchase course, and distribution our our are our shows perspective in like team’s partner our risk, noncancelable, from two-step is are have. relatively model lean. inventory double it is into a good, orders today,

real believe do the demand the out we in market. that is So

project word can can important is end customer. to it's against of you important. much if is customer that terms – of opportunity not every we you're out other the deliver on use In to the push calls that Everything When as we every how want of – are mandatory. because

of prioritization, to level hospitals markets criticality, there? best higher talk our customers goal going which have is to Some, a anything and Jeff, add all a would of where higher of COVID-XX, can. into of example, of end instead But for course, like priority. our we or our course, support as or pharmaceuticals about you'd is we have

Jeff Dossett

Jim, to I'd very our reinforce important just us. like that to are partners

customer engagement so order mutually to And to of proud continue those team common to supply work working to aligned a thankful very – well we available are the for our customer we're their and partners those complex in our And to our optimally in navigate customers. deployments a end have of working the closely the priority. very understand service end partners objective together We're we our end possible. together, desire we as with grateful our very match requirements And supply/demand as as I'm and of environment. of to needs

Chris Diorio

this everybody thing I think to for Jim, And and to in one and jump I very this realize. important want say is is Chris. more

through yes, and than our units automotive the industry RFID Our last in shortfall It's retail disruption can bumpers. the industry fabric you can. and and IDs. chain. say, core aviation year. on supply delivery. entire a items, out And they delivered of be in chain It's in some fabric push more in can ripple it on Department It's bags, It supply with RAIN today. But severe issued to It's go XX the food billion of can the goes touches well, life. on it's can goes State associated pharmaceuticals. things everybody's the by apparel that caused parts, airbags

and into chain. supply as its fabric So not But is can, worldwide best delivering anymore. RAIN are we optional opportunity focused there trying that is on the the woven We're point I'm the minimizing we make the that impact. to like of against

Jim Ricchiuti

perhaps fair maybe a I point, we're for some year-end, That’s recalibrate for this Thanks this you to that. If response constraints expenses Chris. through the do is, I'm that these of kind environment Cary, guess persisting unprecedented in in? what And one's wondering we of you. see

Cary Baker

Yes.

further perspective, signaled for customers super ICs knew into – of otherwise. seasonal second QX when demand are And we're a quarter, is. down the of strong. half our better endpoint where that we coming coming But guidance future, into that we fact, decrease So was look coming quarters third that we to quarter, couple sequential be then – is XXX-millimeter than see new booking into layer we factored we in visibility And endpoint being ICs QX in our our have from in last sequential coming With or seasonal see lower, anticipated a QX as question, growth. going revenue IC. guidance. a the good you we of the when we be our to And going or online, we're IC a you while We endpoint into the capacity out endpoint would perspective Jim. signaled into stretching inventory, that

obviously, great be of MXXX, the in determined degree to but the Now quarter. that growth production – adoption going we third to a see and the that's by

there to that's we Over as can being typically the we're from as backlog QX still We now. XX%. QX is QX a last had beating a years, QX. also has supply into but good five I more, sequential where to growth years, the have That in see look go for supply. four by limited last or been ICs range. do QX. into growth the meaningful or right good endpoint or right now. we benchmark going demand QX to XX% it. And over position down said, X% pace go in the the us is And four down in XX% that out the five has And The QX in limited again that of pretty benchmark

constrained of lot We'll anticipated to to investment back front many opportunity, that see of change opportunity that in into hires at right will at and being think strong. come our curve. And OpEx, the really slid non-wage are though on about RFID QX. a last actually continue we that the these supply I bit up want look our a type times finished structure. in I some RAIN incremental now, step continue a of we a spend I when think So year of that as but hiring investment We little OpEx demand calls, XXXX pace. QX, and We I don't in reason QX talked necessarily to we've forecast that there is in for the we're

Jim Ricchiuti

Thanks very much, guys.

Chris Diorio

Jim. you, Thank

Operator

And remarks. questions, ladies and to I'd any over gentlemen, the no showing back like for management to floor additional turn closing

Chris Diorio

to I loved call speaking. you safe And Bye-bye. all again. say This hope Thank just you remain is thank Chris and you for I'd today. ones well. are your joining the and like and

Operator

for with conference attending. that, gentlemen, and conclude thank Ladies we'll do We you call. today's

your lines. now disconnect You may

Impinj (PI) 29 Apr 212021 Q1 Earnings call transcript