MPWR - Earnings call transcript Q4 2018 | Monolithic Power Systems, Inc.

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Operator

Good day, ladies and gentlemen, and welcome to the Monolithic Power Systems Fourth Quarter 2018 Earnings Conference Call. At this time all participants are in a listen-only mode. [Operator instructions] Later we will conduct a question-and-answer session and instructions will follow at that time.

As a reminder, today's conference is being recorded. I'd now like to introduce your host for today's conference Mr. Officer. Financial Chief Blegen, Bernie Sir, please ahead. go

Bernie Blegen

refer website, projections Good Power are to our the filings Systems' on and conference cause we statements earnings Form statements X, accessible results contained in www.monolithicpower.com. welcome which QX XXXX, our the and course the to Monolithic XXXX XXXX, to call, of X, our QX earnings and release, which release forward-looking releases, These XX-Q with make table income on reconciliation quarter and filed I to GAAP. the filed our fourth will income, also website MPS and GAAP for will being assumes call website. and the involve conference to could well financial the to on measures with on financial today's risk XX-K both uncertainty live you XXXX measures the that both are our of afternoon in conference for on the that our webcast call. earnings in differ highlights other discussing November are the replay and investors and should and In results QX earnings Please XXXX, update to MPS. the SEC today. published earnings Form as to non-GAAP non-GAAP We'll be filed with reconciling tables be SEC of like a available accordance expense, management's and prepared is in provided in we net today's along factors including margin, could two between Safe today. basis. which operating a actual financial for March the SG&A remind outlines identified GAAP and I'd very non-GAAP A year, and as expense, through a cause the to income, that I'd with the XXXX earnings call. superior over or and posted financial measures to information today's from prepared what not differ with Harbor materially would as the accordance gross expectations. that is not Internet Harbor are Safe other successful current today's substitute to for of release operating QX earlier a measures R&D Risks, have views on refer on release statement GAAP be one in included and the filed begin the was uncertainties, considered with like that no performance contained comments in SEC. year interest obligation

XX.X% For the achieved full than revenue of XXXX. $XXX.X higher MPS record revenue year XXXX, million, from

company's gain the history. redirected million focus largest revenue XX.X% increase growth the was increase MPS high-end in the year-over-year $XXX annual the in to was So The markets. and cloud consumer computing, the highest its company industrial, automotive XXXX for annual rate in since

the conditions, Although these strong for sixth significant the was years. a consecutive see for several in cannot current was continuing of segments the XXXX next macro-economic This escape we growth. year double-digit we MPS. momentum year

competitive. increase nanometer of On these in solution XX efficiency, improve and solidly with BCD energy will X our and size, keep lead reduce cost the widened the we functionality, a customers production a efforts X, product wafer. Both development with technology our product inch front our volume our our XX of designed ease BCD advancements adoption process significantly on

increasing production in In XX we wafer inch X inch were future capacity revenue growth. both and in of addition, anticipation

and companies cloud meaningful the generating number automotive a new X in customer of revenue. initial the On penetrated markets, front, server MPS Tier and

companies X next are co-developing number their a we that generation of Tier with industries. these importantly, will products More revolutionalize

with applications, represent and intelligence using advancements based and solutions technological working revenue substantial a drive a solutions. technologies MPS's process application reliable and leading QSMod programmable market smart require XXXX to artificial to as for which power system target A source relay and reliability specific in applications MPS's for volt examples networks. automotive current for high introduction. XG markets, an compact the learning partnerships target Developing of the developing unique compact density mechanical both edge develop And MPS's in cloud growth. servicing machine modules and we and solutions, integration completed modules include, automotive with these are future important these communications GPU few systems based for technology and expect using XX market companies current switchers, lighting improve driving The for using for specific QSMod such applications automotive IoT of replacement stations form. high applications, for Technology high base We

from the these development launched own In to will their programmable solutions catalog we This as website important our optimize time lower cost efficiency our engineers addition customer's XXXX was ownership greatly to of their their solutions designs. of to design their exciting core desktop. enhance projects, allowing and market, of customized e-commerce total

XXXX grew This primarily GPU XXXX. strong represented This revenue growth MPS's application consumer $XXX.X million look market sales revenue XX.X% connectivity up total storage, full increased compared Automotive million with compared SSD X.X%. in was with let's sales Full year Automotive for represented due storage of This XXXX to growth XX.X% revenue primarily products. growth in sales. This XXXX. and up XX.X% in Communications revenue $XX.X XX.X%, grew $XX.X XXXX. revenue to XX.X% primarily $X.X storage with sales higher and and was safety and legacy reflected in sales XXXX. management products. and revenue computing, to up XXXX. $XX.X for security meters. of power router million Now storage represented million to in home communications XXXX, of cloud compared computing and MPS's in XX.X%, $XX.X up notebooks revenue Computing in at compared XX.X% high-end revenue reflected Industrial XX.X% to increased with initial Computing $XX.X of infotainment, revenue industrial grew year XX.X%, and million revenue our revenue by year XXXX. segment XXXX automotive full year of applications $XX.X million power in and MPS's industrial sources, wireless gateway revenue grew XX.X% represented Industrial XXXX. our improvement million. full million down

the the win to demand due grew products. Switching XXXX More XX.X% high over and - home quarter in momentum. consumer of record Fourth importantly, in XX.X%, the same XG revenue in while period Communications communications quarter see represented in XX.X% with grew of than a revenue XXXX storage from XXXX. quarter grew MPS prior for QX, grew automotive In see in especially macroeconomic MPS million, than the XX.X%. X.X% ramping XX.X% higher started QX, comparable see consumer to the revenue compared weakness of to XXXX. quarter, XX.X% that's to China experienced By year. of continued industrial the the revenue for region. with though, segment. continue with third still we market $XXX.X of revenue strong revenue wireless impact lower initial legacy from XX.X% Computing quarter MPS's soft XXXX. Greater increase MPS of market revenue the primarily in fourth and we design gateway fell headwinds had Communications revenue volume the fourth businesses, generated and XX.X% our router related segment

mix. However, product many resulted policies for less their ramps sales products concerned a desirable computing the and delayed outlook which about trade in customers economic in production and automotive, new industrial

of result, a points quarter third points quarter fourth As gross lower basis XXXX was margin basis XX.X% non-GAAP and fourth than of the XXXX XX XX than quarter the lower XXXX.

prior income but reported in third XXXX. and $XX.X in points than Fourth quarter the compared basis million operating gross of basis XXXX was $XX.X than $XX.X non-GAAP million XX.X%, fourth quarter was million quarter lower XXXX, points the XXXX. of reported the quarter higher Our XX GAAP fourth to XX margin quarter the of

$XX.X Our reported $XX.X of operating quarter quarter was XXXX third fourth of the $XX.X XXXX. compared the reported GAAP in to million and income million in million

Let's operating review our expenses.

fourth in fourth compared third of million the in $XX.X million $XX.X the were quarter and of expenses XXXX operating in quarter with GAAP quarter million $XX.X Our the XXXX.

XXXX. QX and XXXX in operating income third $X.XX GAAP share Total in per $X.XX compared or goods $XX.X expense was compensation XXXX. to per Fully diluted deferred the fourth an and for the loss to million. million of per in quarters per expense million the expenses in $XX.X spent outstanding diluted stock quarter in income compensation and XXXX $XXX,XXX sold reported and the quarter QX in $XX.X in up with the expenses a share per quarter the end recorded of both the charged fully from between litigation shares QX the and compared share the non-GAAP operating with expense at non-GAAP $XXX,XXX was quarter with fourth quarter stock $XX.X the in third in of for $X.XX net compared quarter basis, line, of third compensation plan. share million including $XX.X discussed XXXX XXXX. $X.XX XXXX. compared XXXX per were $XXX,XXX operating quarter were the of net $XXX,XXX the fourth GAAP fully and fourth the a of million or the $XX.X quarter Switching Our quarter and from GAAP down fourth diluted fourth XXXX million with of share XXXX. of expenses quarter we non-GAAP fourth XXXX $X.XX XXXX share was or quarter On $XX.X difference are bottom of million The unfunded third XXXX $X.XX million, non-GAAP were $XX.X income cost of expenses expense from QX

$XXX.X $XXX.X of Now of equivalents investments fourth compared the end third at quarter let's sheet. XXXX. Cash, the million million and the quarter of at XXXX cash to balance were the of the at look end

XXXX XXXX flow MPS $XX.X at million XX with million. the generated with the quarter of fourth in days XXXX capital third operating $XX.X $XX.X Accounts outstanding receivable the and of flow quarter days sales XXXX. the or quarter at compared end days quarter million of million the cash million. or For reported of a $XX.X compared totaled of Fourth or XX $XX.X operating million ended XXXX QX of $X.X cash fourth spending about reported XX the quarter

slightly of end XXXX the fourth from XXX to at like end $XXX.X XXX at of $XXX.X at days down end the Our rose were from internal the the of quarter million inventories quarter XXXX. now turn inventory of the to the Days of XXXX the the of QX outlook. third the would third XXXX. million, quarter I days at of of to end

our a as shareholders for XX, is share XX% MPS per $X.XX from to quarterly announcing XXXX. of share increase in March per dividend First, record $X.XX of

million. $XXX to QX forecasting of in are We XXXX million the revenue range $XXX

charged the the be to also including to in of GAAP XX.X% approximately $XX to estimate margin $XX of million. in total and sold; cost non-GAAP that $XXX,XXX million, SG&A compensation would stock-based SG&A XX.X%, We $XX.X following. R&D to gross million. excludes the expense between in to range range stock of litigation goods and expect $XX.X $XX be gross XX.X%, margin and the Non-GAAP expense XX.X% of R&D million range GAAP million to of compensation expenses and This expenses. million $XX

Our income range XX.X in our losses; other foreign to range million to or computing, market million will XX.X to in share shares the the for questions. is is million macro be expect conclusion, believe $X.X winning now and before continue lines despite telecommunications expected open be of is automotive In - fully market. to exchange bright. diluted $X.X of the future gains in million uncertainty shares. cloud I economy, the in We phone the we income the to

Operator

Seymore question the Ross first of from comes Our Bank. Instructions] with line [Operator Deutsche

Your line now is open.

Ross Seymore

execution. view Congrats on Michael just get the macro guys. to Bernie, environment. wanted Hi on the solid or your

share, You company now. the rising but falling you if lot or of it's where not immune guys like specifics it tide is take have can right a is you're

can is have design take demand what of any the you gains what color new on of XXXX share doing growth to sort wins? overall the of So in relative market areas where you any saw and product view number you incremental versus linearity potential guys how you

Michael Hsing

that market good segment all QX Ross, later the see then in and the we from so okay, the very their still customers it still all And not in All Bernie middle though - due that asked due to introduced have computing. however the slowing new replacement product and the mentioned and new as we the dramatically. stopped, see in a market is - couple - automotive MPS's you we and we'll to uncertainty question. And but the cannot is some whether some that grow tell. healthy we our around But growth we product of growth expect and of in still last their the last introductions. And seems especially these to economy shares. all futures. the same have in the - years, end the the in and And we me down in the to we all percentage XXXX industrials the or delayed gave year product of years

Bernie Blegen

invest And to design add there's just are what wins end right to if our that in not our again, customers type position is new that could market, place, interested Ross, I product the to going of only we're in that conditions that but from are ramp. them the observing, in for specific

last when far how any around. very I But confidently start view have positioned do we long to - come will for that well improvements full that the this don't take advantage so, I turnaround. of And as we're believe I see to as

Ross Seymore

for Thanks color. ramps. guess, on as be own inventory increasing for my your follow-up all ready to those internal I just the about side, have know guys that you talked I inventory

to guess, expectations a the could is should that one continue are inventory is, give well? or on still is two what be that channel an So, for inventory those us and if two, come I update case as your then the what you down delayed? that question, situation And part ramps

Michael Hsing

of Clearly a there's inventory valid. conditions Ross it we we I kind in carefully. The a think market And like this question. very see that transitional very is I lag. watch it

the why that's - there's we question. will if down come I delay - So inventory course is of a demand we it's like see slowing down, And course that control very and can highly. of we control our

Now the more Bernie a numbers. you can on answer

Bernie Blegen

the what And and forward increase did And customers. then, QX. of orders the On - that and getting far our how management slowdown inventories position of the that fill the do as side distributors is demand creating up the related. both a are based XX% reflected is the guidance based question we on demand the the we in in days upon during in their going the and performed that's they're on of customer is managing from of that terms ended occurred channel quarter, with orders some so those as our where dollars second for that that we channel distributor us information

Ross Seymore

Got it. Thanks guys.

Operator

line Our Quinn of next comes from with Bolton Needham. question

Your now line open. is

Quinn Bolton

slightly Hey, guys. prepared apologize I'll of from weaker most because I the guide missed comments, but obviously a March.

full stronger you think Just there reason is wondering you typically into some a of of seasonality, terms the third the any see near-term as and look second in year much to quarter quarters? get seasonal QX that the should we seen or thinking QX we be and pattern as hitting effects a you've are into extend more traditional about out QX, to September June

Bernie Blegen

the uncertainty this think is don't Ross relative a I on of to there's to lot responded we that visibility, quarters. good out have really Yes, when we

at So second. put QX all groups let most some - go in very macro We've impacted me particularly Greater our tariffs when by which for the our we price significant for and consumer, was in even QX numbers trade a look China. back more and to sensitively except up of short-term

this So period ramps lot around in have our out of the that product were in point that customers a been also pushed we the observed that building time. expectations is new

that's so, growth going the rate for to say turnaround begin. or affect when do it's hard a us to expect year concretely for overall And to we how our

Quinn Bolton

XX so quarter. that Did the question started Okay, backlog to you three, number, the most you again or think be quarter? guidance of for sort backlog in at a years past a I'll we give of March in second percent you in great. Are And tended for four the then of apologize. metric I just range

Bernie Blegen

are. we Yes,

Quinn Bolton

Great, thank you.

Operator

of Rick Our next with question comes from line the Oppenheimer. Schafer

now is line Your open.

Rick Schafer

just segment in more a thanks XQ, be I a tough how provide the that's I like mean, a Yes, primary contributor in better to least driver I would guys. seems the in is I your almost are mix result rebound? have could is it margin there you near-term margin I by assumed you consumer understand the in on how Bernie, And - if fast it's if a softer. and might to environment mean, bigger gross what at a know part - maybe gross maybe then, can that mix. little fast to any is simply second better but color I expectations obviously first the going color are mix of question nice little that we quarter. just hoping guess, just give guys was

Bernie Blegen

Sure.

QX So discussed clearly you when That into mix, at the because we with as let's lower business that at the margin QX communications look was and revenue well. was just in start look that of that. predominantly we when influx

is you our continuation margin high then and it pretty broad had the So was the same. based. But some of

For management industrial things example couple and expectations. in that a for underperformed SSD, power GPUs of

may lower have will a very as high and of issues. look that And overhang the have start a believe the need long It's inventory products determine at against when be with are was margin demand. sellable. for all provision support provisions inventory points. talked we to mechanic And we Those inventory is positively provision. our those very still contribute a ultimately the offset may so But was margin. Michael that near-term result, forward, was and we our are and beyond, in that guidance the of we to support based at describing. basis our are looking that the or far ramp it it. When specific that life number, look but demand. to some a XX And as though not margin gross we business mix they even upon to past not of accounted QX, anticipating as as Again, going And different that how our shelf has and have obviously products a we all higher I lower immediately - don't don't we light inventory we've will new with in the

Michael Hsing

against have okay Well, now We relative we look all will - product it change. dramatic that to the last new and delays What due result margin to that very as is product, now. very economy forward if quarters our high foresee And it margin going of in and analyze the five stay but the And And we all expect revenue recovered. me. close grow the change gross and is to as don't consistent a going new see we change forward the small new consistently four, is gets all pretty is delayed. as dramatic X.X% and revenue quality and mix. the

Rick Schafer

your were quickly it. in a power know server, color. content curious, to around today, then that share Thanks in you remarks. all next XX is for for for just talked driver Got talking for you about XX to for to And guys? market XX MPS? because XX the XX gears mean much the year. with I potential I'm content of that server XX prepared gains going volt How you've core XX shifting past about And content guys just volt associated I volt but you any captures gains material

Michael Hsing

number so the first - and in like QX in in anyway - obviously be smaller it's not much of a early of all it, XXXX XXXX we as it's is Yes. we half XXXX. the will actually see in part I second mean expected half actually We actually I'm

Rick Schafer

thanks. it, Got

Operator

from question William SunTrust. of a with next Our comes line Stein

now is open. line Your

William Stein

should seems me started maybe be way and Great, than else the little the about weakness for it than expect you couple seeing everyone question. or right model a patterns to for a we'd of into is seasonality the taking order you quarters least to that given you at on seems bit seeing? think I say others heading what to maybe Based typical of Is weakness sort that later lower my QX. would and backlog expect thanks that the this

Bernie Blegen

a being Yes, I turnaround. quick quick don't see that create would a catalyst there

while could So that thesis. I ahead think that guide we one quarter only I support

William Stein

sell for of then inventory Would you at were And you think let's say Bernie, Okay. that as your the QX lower up quarter. different? days channel relates dollars dollars on it through? days mentioned I that guidance Does the again or in expect combined QX support end something what and and to with inventory to

Bernie Blegen

but you will more that because flat It's to denominator. likely have dollars, in we probably a in been down smaller have days close

William Stein

thanks, Great, Bernie.

Bernie Blegen

you, Thank Will.

Operator

line Tore with Our Stifel. next Svanberg of comes question from

is line Your open. now

Tore Svanberg

what on wafers, and you you could elaborate and going BCD X. year. from talked Yes, macro the more other start in the any add? record XX forward? congratulations pretty you and I Could bit here color XX I'm means thank little for a I'll stuff but inch mean, about interested you that products nanometer

Michael Hsing

Yes.

usual. foundation With and years These of Okay. our that growth. as every every are and - develop a is other really actually we introduce, technologies for newer the year we future

including And memories BCD X logics. we we so said will include we much denser the now BCD and X,

And so we is it now - type and mentioned have mentioned nanometers will logics design. those XX Bernie, of a we

will more lot think market more which capability. entire So you put lot microcontroller. to systems segments single And chip, that almost of included and access means we way. give can We really the that

Bernie Blegen

market. with process depend cost deploy And cost and this choose point then is that geometry a we there from to simply upon lower view, involved the how a of will end cost unit and basically this advantage

previously that to make improve example price it'll able still it'll that compete our consumer us enter for margins our been in in So extend ability allow gross able into. other to we with technological in to and be hadn't to in advantage will the markets to competitive markets us others

Tore Svanberg

you feedback on year. how give Could that for last us far, so the and and how obviously your also customers. e-commerce for And been you up color learning going some color. you website the mentioned has Thank curve running

Michael Hsing

said yes - call website. you up a I learning. running. we But still and we're Yes, Yes,

it's through attempted the is than frontier actually, the And it more figure - try lot a go out a still is website. disk we nobody why - expected before. we very we new that everybody the this to when give an floppy to As effective

still we give try them give give we figure them the obviously the not tools - And going effectively would using and likes give they more quite out, fixed itself all see them a and we more there's a CDs to but customers a download program we ways And then the But a choose figure parts and traditional they're still when product how clear So product trying is rather everybody to programmable and something right. direction. that. - and use see and the website, we're out.

Tore Svanberg

good, last one Yes, Bernie. Very question. go ahead,

Bernie Blegen

wanted fact revenue. when it not XXXX to ramp to the we But that's we'll materially. to it's is expectations contribute have true we we expect we've zero have XXXX, generating good in revenue just revenue entirely XXXX set XXXX our that in and a I in then, think would XXXX around because really and I zero tried that are caution slow

Michael Hsing

Are about you e-commerce? talking the

Bernie Blegen

Yes.

Michael Hsing

But a generated any enough online too haven't our tools from are pattern we in not have programmable a that or strictly them programmable that's difficult respect, website. actually don't revenue revenues. the we whether sales for - early terms the online some And why Yes. now of do see And use people revenues, meaningful through and we a ordering tools see order. site in website. just to some where revenues on the parts good And whether that's

Tore Svanberg

very fair. that's Now

one Just question. last

business. it we sounds more kind communications assume legacy margin that You the your products and will coming Should new like get kind of that's revenue? of communications the mentioned the again gross XG going back,

Michael Hsing

Absolutely.

it's revenues the on we And margin introduce that did higher opportunities. margin, we I year As - see released and quarters I on some - way. said and time now haven't get did remember communications. we we the think mentioned it mention some dollars. the it. have will we last I Once will product just And communication we XG just and the lower it's haven't a I And as though it good I have last up given in and we and when the same in is in happens we designed I be the QX the even right and year but

Tore Svanberg

Thank good. for Very color. you again the

Michael Hsing

All you. right, thank

Operator

Our the Matt question Cowen. of Ramsay from next comes with line

open. Your line is now

Matthew Ramsay

if to you, give you us I mix you little I good maybe bit of perhaps little ask Thank business by gross in going Bernie, units maybe but wondered around earlier thinking way QX. how margins, a or bit Rick's of in this you're afternoon. the question a a sequential - might guess about color division be is growth a could different different from decline into

helpful. Thank think I that would be you.

Bernie Blegen

margin, end. we've less at have about historic but any QX look industrial declines we to and patterns. its consumer to see the When last two comps sure. transition we in and is as computing QX than our lower Yeah in quarters QX obviously And to automotive. legacy lower also as that guided industrial at then really far view growth have flat on gross because mix you of it in a and that is that some the mix in is to traditional bad way the sort And business just is of the the as QX outperformed continue backdrop has the there's from

as coming step not down an a you that's So QX. surprise. doing that's total to QX bit of And from have little a then consumer exaggerated

looking we're margin at outperform exposure both expectations. some low end that computing to declines mix to And and the really automotive or perform high is opportunities. that's - continuing So we've got are

Matthew Ramsay

and a on obviously a this the like side catalysts on some I look perspective pretty been XX we share the the on guess, you side perspective. the in volt, from mix. Got on side. but storage there's exactly seems It environment the storage computing storage about to the ugly forward computing from exposure business, helpful a that's side has if macro computing and if could and and it, remind mix again the us

So the you. mix would through some on helpful? as you're thinking update and year there two the be segments we how different recovering about Thank go those

Bernie Blegen

in I percent a third if in significant the example our decline. sort because year you significant and QX starting a declined Sure, Then ramped obviously grown seen look In very only and when so before we've our that that line the there run what QX you hasn't currently through mid-part had at for side. storage of the sustained storage SSD item. stabilization And is rate a a was on computing, up area about workstation. XXXX at look at we've - of particular is look early way of same business, compute the at last part as see server the if but all it's growth as of it to and that you

in an then, about that's take GPUs is we elevated a level. sales that or earlier to off falling that initial customers some market pause. are talking as were And related So those as

Matthew Ramsay

for the appreciate it. color. I Thanks

Bernie Blegen

Thanks

Operator

next with comes from Vecchi of Blair. the Our question William Alessandra line

Your line is now open.

Alessandra Vecchi

Hi. Thanks for taking my question.

it on end extension sort you the Is industrial in seeing delay meter or delayed. you the in QX. new of you give just could When that automotive that? product you're that the a smart bit of if Is new vertical products? in on of a particular guys segments saw commented markets Just there launches in? for any Was delay color it a products, little

Michael Hsing

automotive, it the Bernie is board that in So the questions? And as well pretty industrials see And much a earlier. your across we as mentioned actually, answer computing.

Alessandra Vecchi

if apologies missed Does I it. Yes.

Michael Hsing

It's okay. No.

Alessandra Vecchi

my questions All answered. other were

Michael Hsing

you. thank Okay,

Operator

SunTrust. comes Stein from William Our of next question the line Instructions] [Operator with

now line open. Your is

William Stein

guys. revenue follow-up e-motion update the traction? the for Any on Thanks taking product

Michael Hsing

feedback design these. much And sell pretty new we of very starting our January and meaningful yes, revenue. it is the a the the - integrated actually good of And receive you reference afraid too see We're solutions we including on models. website, we as and Yes. this

William Stein

efforts. Great

Michael Hsing

the very it's but ramp revenue percentage. high But only is ramp, it's still a early ramping

Bernie Blegen

us giving items for actually chance many had to discussion internal we respond, we thanks on a had whether there. Will, an too out

So we're a not talk of away lot that we're it. It's competing to shying from just other opportunities about. against

William Stein

you times other XX One a understand. couple volt. tonight is I opportunity mentioned

out? is main moving today well share semi that do that close I market. pretty And known of think first is expect quarters that also market of it couple in direction generate that you small are course you to to in big for we? product too, or know the that's aware there's we're - one how seeing but in is it more revenue we company one revenues And which automotive consumers Are a GPUs. a have is

Michael Hsing

already in automotive high cars. and volts end being XX both in a Actually the is

I it And in probably last think it trickle are have we second product. to high to now as we still the see expected year down. half of a because and these XXXX happen end - going

because there. still the going launch regardless of market. demand think are I they to Is the still

William Stein

back year? this and Your half ready that's of recognizing product, the revenue in competitive and

Michael Hsing

and to that what these many. how I always and AR believe to say of systems these revenue that's our so terms of now need impacted just think - matter are - somewhere you IR is difficult in these high a I it's

William Stein

you. thank it, Got

Operator

comes Caso question the of with next from Our Chris line Raymond James.

is line open. Your now

Chris Caso

Yes, thank evening. you. Good

question one Bernie, comments the one made clarify the provisions. Just you on earlier for me, of inventory could you

typically changing just right the is You look said of you the that any impact that? margins that need magnitude interpretation from make. to another about on What's the you there on take reserves quarterly that is

Bernie Blegen

what done next that the months determining bit Yes, up the for rationale exposure forecast mechanical is six way provide demand. a the of to based of little it which calculated I upon any in that a we've behind number, and guidance we is step have is a haven't specifically just the

specific the of of any six That's to demand your not So going if it's it's end that inferred exposure. in could product market, looks month being an providing. sort sort of that guidance having out to or conservative we're that increase your down be just likelihood generally call

Michael Hsing

today change. the And Bernie market in December see is again last dramatically when changes, then talking like dramatic about small may When of year Yes, change. all well any it's numbers don't again. it at end quarter. the it's as changes the we of of And

at times pretty we this see So now. normal is we

Chris Caso

Got it.

thank you. Okay,

Operator

Svanberg question comes the from next Our Tore Stifel. with line

line now open. Your is

Tore Svanberg

I Yes, up just quick thank follow back you. had and a BCD to X.

wondering just X what a does talked billion BCD and having you've that SAM about to think I $XX I'm number? SAM

Michael Hsing

in Yes, we yet. micro our very micro control controller and we we the we see That's lot haven't application features. certainly a that the of - to - in good got targeted can point mini questions integrate

Tore Svanberg

be you buy you develop off those I would mean just to right. micros yourself, wouldn't ones? so And shelf the clear,

Michael Hsing

It depends applications. on

the those we know into has effective give developed rebranded are all of - up effective microcontrollers. to of do integrate we Some and - have and a now, And licensing. of we the And are and our it cost as then integration And likely in not has as solutions for - total a we and are - but or grown total - cost to is we by we and micro. our the those going firmware us and - a integrated size they limitations. have first not so most clear if reason,

Tore Svanberg

Sounds good. much. Thank very you

Michael Hsing

Okay, thank you.

Operator

back turn further management questions time. at I'd closing to this showing I'm call remarks. in no to And the queue for like

Bernie Blegen

thank joining will great during XXXX for forward call, be you to our the like again likely first Have you. and quarter all Thank I'd a to in conference conference which us April. you look for day. call talking

Operator

for may This you the have program Everyone your now participation a and great thank conference. you disconnect. gentlemen and concludes Ladies day. in today's

Monolithic Power Systems (MPWR) 12 Feb 192018 Q4 Earnings call transcript