MPWR - Earnings call transcript Q1 2020 | Monolithic Power Systems, Inc.

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Operator

Ladies and gentlemen, thank you for standing by and welcome to the Monolithic Power Systems, Inc. first quarter 2020 earnings conference call. At this time all participants lines are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. Please be advised that today's conference is being recorded.

pleasure Officer. the my Blegen, to is Financial Chief it to call turn Bernie Now,

Bernie Blegen

Good and Hsing, you. today's Power of Thank afternoon is call. Systems XXXX first MPS conference Monolithic quarter call. me Michael with CEO Founder welcome and on to the

could projections Harbor cause views February In the and Safe identified results to contained the in materially management's QX today's XX, current to call. expectations. accessible through earnings XXXX cause today. Form forward-looking www.monolithicpower.com. SEC of the in and and differ Please release the today's release our contained our risk which assumes course other Risks, call, update in we differ is statements involve the make in the actual to results uncertainties website, no obligation earnings filings, information uncertainty, and refer our will factors to on Statement Safe MPS on conference filed statements that which could are published provided including that from and Harbor XX-K

investors posted between well XXXX, will the basis. are accordance the the QX is in website. measures with operating GAAP which a as tables non-GAAP and as financial or and income, and accordance would non-GAAP not of financial expense, have operating included release, as on financial our with QX non-GAAP income, earnings expense, QX and XXXX reconciliation in performance that measures and GAAP reconciling discussing I the margins, our other we We SG&A to SEC. interest both net the to considered and GAAP. be a a R&D not income gross outlines prepared prepared that measures are superior to These financial releases be earnings refer in for on should table with financial substitute XXXX GAAP measures A to filed

over the webcast with release today. also available be earnings Internet website call for to filed is today's our SEC and replay along live you remind the conference that year, like on earlier will with would I being one for

Before all safety going difficult like taken to to and the through all circumstances MPS, necessary ensure have our on financial I the acknowledge our focused operating to our precautions need the under. employees, we at the our same the we we would At level highest of At customers. time, execute possible. suppliers remain are results,

Our worldwide innovation efforts are support. and reflected of level our in continuing customer

fight news to equipment, global pandemic. of of In rose the shortages response medical occasion MPS the extreme to the to

recent ventilator to knowledge and a our to and release, our described demonstrated of in matter open-source an showcase to design period MIT provider We from time. capability technological our developed a in MPS assembled a component concept. advance emergency deep provider a system of superiority press leveraging As short prototype solution days in a application

believe programmable, We taking same product feature-rich. the do we highly and portfolio, to flexible is by diversified can vast MPS' advantage which customers and help our of

in we We existing customers the will many medical received that to our also the opportunities potential industry. and by lead excitement promising encouraged are device have from

Turning benefit to now MPS revenue and from strategy. diversified XX.X% record our MPS leadership the financial of multi-market than posted quarter million, XXXX. quarter to higher results. in continues comparable first technology our $XXX.X

million Looking revenue of and at market. million quarter our $XX.X revenue year-over-year. our XXXX or computing XX.X% first market, $XX.X by storage In increased

growth primarily reflected represented revenue the revenue and sales computing and XXXX storage XX.X% in XXXX. MPS' servers The year-over-year with cloud-based quarter revenue XXXX first storage. of increase XX.X% quarter quarter for of First first compared

quarter reflected with year-over-year quarter higher represented MPS' XXXX of quarter increase First compared quarter the Communications XX.X% primarily revenue $XX.X of sales. XX.X% revenue XXXX networking from of XXXX. $X.X first first communications revenue The XG rose revenue first or XXXX. of million million XX.X% the in

increase and industrial XXXX security for meters first of first XX.X% games and applications. from revenue. $XX.X revenue our primarily of and smart The reflected of XXXX quarter the total increased quarter accounted million quarter first First over the of quarter XX.X% XXXX

quarter of XXXX, period quarter growth MPS' infotainment, XXXX million over revenue of application first grew connectivity $XX.X the represented revenue. automotive increased XX.X% First primarily of and representing safety same sales XX.X% of XXXX This products.

set-top X.X% XXXX same the of year-over-year our reflected reductions of flat-panel QX revenue decreased consumer demand decrease boxes The XX.X% represented of XXXX. compared markets in quarter of quarter million First Consumer the from first TVs. revenue of contribution in from XXXX. revenue $XX.X period $XXX,XXX for continuing XX.X% revenue with and or

points quarter with flat GAAP gross basis XX XX.X%, was the fourth and of first quarter XXXX. the higher than margin of XXXX

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

of For but of basis quarter first XXXX. first the non-GAAP margin quarter gross the matching fourth XX was XXXX, than XX.X%, of lower quarter points XXXX, the

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

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

quarter Our up quarter increased non-GAAP in This and XXXX in products. new investment million expenses reflected were the first reported payroll XXXX. increase million, the taxes of fourth $XX.X primarily $XX.X operating from higher QX

plan. The compensation unfunded difference income expenses GAAP operating between quarters non-GAAP loss discussed here deferred and stock operating an or are expenses compensation the for and expense on

with fourth compensation goods For million was expense charge cost to including quarter reported of million sold XXXX, quarter of stock of approximately in XXXX. the first $XX.X compared $XX.X total $XXX,XXX the

to the bottomline. Switching

was million fully net $XX.X $X.XX diluted XXXX. GAAP compared share quarter fourth share XXXX million in First with or of $X.XX per per the quarter or $XX.X income

one-time was Our due resulting a QX tax stock from discrete benefit compensation. XXXX of tax provision XX% minus to

diluted net compared quarter at XXXX or fourth in shares per per share million $XX.X Fully or million were XXXX. $X.XX QX the the fully XXXX $XX.X XX.X diluted diluted fully of $X.XX share was million. First with of end non-GAAP income outstanding quarter

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

$XX.X generated flow MPS cash about operating fourth of million For quarter flow operating with XXXX. $XX.X compared the of of in the million cash quarter,

million the quarter from sales of of end the million. days first XXXX quarter fourth one First days XX at day receivable up spending Accounts quarter capital $XX.X or outstanding, the XXXX of totaled XX ended of XXXX. $XX

Our at of inventory quarter at of first quarter up $XXX.X million XXXX of the QX days end was end the compared XXX of with from fourth the quarter of end days internal XXX end the the the million, XXXX. of the of inventories the Days $XXX.X at XXXX. increased fourth XXXX, to at of

our XXXX. quarter I second outlook the would turn like now of for to to

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

before million million to gross million Non-GAAP be of or range expected approximately Non-GAAP XX.X%. shares be range of Fully XX.XX% to to to is the stock-based $XX.X to the $X.X XX.X litigation the and margin to $XXX,XXX sold. range compensation the compensation SG&A range that from in be R&D gains goods the $X.X expected in XX.X% will million and range expect GAAP million million of GAAP expenses. margin expenses following. also of to $XX.X Litigation XX.X%. in income and between gross to R&D in diluted foreign Interest We to $XX.X are This of SG&A including to million expense $XX.X and exchange range to Total $XX.X expenses million. cost excludes to $XX.X and stock estimate million. between expenses charged $X.X XX.X of million other losses. million, shares. million. $X.X

In conclusion, But prospects long growth intact. are immune our the not reality. we to term macroeconomic remain

volatility We future to to prepared our to manage will continue customer of execute plan demand. are and

questions. for lines phone the open now will I

Operator

our And question Instructions]. Tore with first ahead, [Operator go Stifel. Svanberg is Please Tore. from

Tore Svanberg

congratulations and very on a Yes. challenging and these Thank you results Bernie environment. Michael in

First share a this is gain question and bit maybe companies philosophical to but you tend lot a downturn. a of during innovative

into obviously things just than if that out even wondering, was there are stronger I this are in you at certain downturn. to this? Michael, of obviously a We looking going come are

Michael Hsing

tend Tore, to you great. We the remember -- history.

Tore Svanberg

are Michael, Michael, are you breaking breaking up up. unfortunately. you

Michael Hsing

Can you hear me?

Tore Svanberg

Yes.

go handset of might speaker. to You the instead the

Michael Hsing

Sure.

Tore Svanberg

go. you There

You fine. are

Michael Hsing

Okay. me Can you hear now?

Tore Svanberg

it's can. much better. Yes, we Yes,

Michael Hsing

because MPS earlier, public day become MPS' if do Yes, cover as a you I those company. Tore, okay. right, stated since remember of All one things history, you

in somehow, percentage tend of just everybody growth the regardless to we lower. we how don't of I do the as upturns, in good tend just to well we tend are that do And And And downturn, many normal we and And or or is be But else. as think out. the the we are really, relatively slightly that. slower to our downturns very achieved, years slightly we times, target is consistent.

share they all like have maybe market to large react they the term. So a it's tend and shorter to because other not company

you think and a So and will downturn. we philosophy to during the tend can it if well about

Tore Svanberg

up that would of very, business. welcome. we very to it's and but That's this more I topic, that in taken a But I business in, specific, be a And e-commerce virtual helpful. appreciate would while that like get a on your think running. environment live very do sort similar

So maybe been a front? you on, little elaborate bit on can on going that what's

Michael Hsing

But Well, many There of Ocean. lot said hook is we fish a last of as Pacific hook that. quarter, a I didn't e-commerce, Too we the all like in that. we in said kind of things drop there. and

stage. still the we in So are early

couple surprise attracted customers potential us. last And it to of the of kind and of so new we us. launched That ventilators. a months, new customers in it's or However, overwhelmed many

us. people relatively are think and know we we I are that a and company small new company don't

do and it. Just need we we to to learn how time need

Tore Svanberg

That's question Bernie. the quite for last and storage up dramatically computing One great. being year-over-year. about talked business you Bernie,

activity space about the would about similar second sense great. that obviously pull-in some you you in Intel, they weaker add get going half are there instance, you. Any being half. players talk that Thank obviously the for first can is on there? other a on talking Did be Some than color strength. the

Bernie Blegen

Sure.

continuing that's we order or think other from right the now. have center to who work I XG to home service data a aspect notebooks seeing as in are there consistent economy investment companies either is the of pattern exposure to with or probably

of the look in half only of level lot obviously, this challenging there XG. Again, center as forecast of one been normally and we particularly a environment in and of ahead. what any continuing also a a investment So seen data like, expectation is are in storage, activity, we with has second quarter particularly

Tore Svanberg

Very Thank good. Congratulations again. you.

Bernie Blegen

Thank you.

Michael Hsing

you. Thank

Operator

you. Thank

Ramsay with question Cowen. Matt. next Matt go comes Our ahead, Please from

Josh Buchalter

I on supply hope is in know side, okay. moving the Buchalter, hanging behalf Hi. after you hear lamented demand could all your of feel into how parts last It down? channel. Thanks and to your on I us in level Josh the sort given of update you This love visibility helpful be an taking on for both there inventory. Thanks. guys on you you questions your is my on would and the and quarter But both about question. everyone levels books comfort update bringing Matt.

Michael Hsing

are of bookings we good to is still last our issues our have Well, we we above. And this and the didn't uncertainty have growth to up year, in were quarters. a very problem macro of We and last problems, our the that we customers But we to deliver said this couple couple lot quarters, criticized said inventory from is earlier. is. the And it way say it and some have related a market so this and inventory. and

And So inventory. barely our last we December, our forecast. beyond can took a we do and reduced step now,

condition murkier accordingly. is we react had to even the So just And now. more

Bernie Blegen

of capacity if through the well to facing we both you are operate as XXX% there right supply operations. good terms internal that we at Michael's nearly the in can And our that that I economy as in continue to chain see is as now, can add our point challenges

want made But minimize of part that the to a to that and lot those and had very away take the of anyway chain. effort supply minimal happen. from so hard not challenges do employees a difficult far, have I we lot all on Now, of disruptions

Josh Buchalter

provide I your all results. the on my you. follow-up, by the second for stellar expectations And to you any able quarter? Thanks segment and then color. Thank the Yes. as on are congratulations color appreciate

Bernie Blegen

should believe in There come the take growth question this as expect of XG. Sure. front and that we on quickly traditional the is that demand is in also to responded in a from is as well I consumer the to I in earlier storage computing and one that much is, automotive. can weakening enjoy, the numbers

Michael Hsing

and We know you the not is is best which okay. very We a and high-end percentage change. a added, fundamental market. that still chose shift segment which as products And a growth. which of to job our occupy from for we to shift. set-top consumer and consumer, a And a side, the within know Here have within we do is, we look want if Internet very consumer of We of traditional one so at And TV do much of huge the as and diverse to small each higher and have the box actually there Things. don't my I percentage diversify you have the guys growth. well job, is lot is, to and try which some

Josh Buchalter

guys. Thanks

Bernie Blegen

Okay.

Operator

Thank you.

comes Quinn question with & Bolton Go ahead, next from Quinn. Our Company. Needham

Quinn Bolton

Hi guys.

me congratulations on results Let outlook. the offer and my nice

inventory. auto some you side? on seeing might to and You peers of and that a sequentially just I guys certainly And And the refer to mentioned of is if a compute the think are know building be have forecast, outperforming we think and the analog in there about I number talk that significantly peers address XG analog consumer softening. number buying that customers ahead seen year-over-year. they wondering or you that I able specifically

there go got that follow-up. influencing ahead And then there be second guidance? So maybe of quarter kind you just any is have I whether may buy just think is through activity a

Michael Hsing

are of effect, like toilet course, right. And Yes. we a It's concerned. paper

much But ship expectations. months and Just some to be and in all can. a than area But other we actually that. our on consumer really few we it's in papers have feet we In to quick areas us, and quickly. know. slower in meantime, gone. the are expected have data ones see of the have of a we and kind like react on ago, we whether have kind PCs of I And and we the we as the the as And same effect the the mean toilet don't surge. centers shelf

Quinn Bolton

then Ice the Lake And processor I on this Intel Lake business, launch think it. in data year. just XX looking to that recently the canceled to center Got Cooper late has focus nanometer generation

for Or good impact the Purley the it? the as pretty systems Thank Just design Whitley existing you balance seeing see the of just had if over either initial on you. ramp that's wondering if you ramp any Whitley or year? are activity, of

Bernie Blegen

Yes. Good question.

that in has that showing the are level continued So the QX, the of experience back Michael's of level are change, same order momentum to change going product unabated, And product of the has engagement. been regardless the receiving we point about that customer cycle.

any timing. me make to we is individual point, on other demand of indicators early this may don't to And the that being have business one diversified. model end dependent launch So full at back this not The change. point by product be will give benefit shaped how going pause. But or specific is I thing Michael's the not see any this on

of diversified So as that's advantage I said, the portfolio. our

Quinn Bolton

Great. Congratulations again guys.

Bernie Blegen

Thank you.

Michael Hsing

you. Thank

Operator

you. Thank

next Our ahead, question Chris. Please Chris James. with comes go Caso Raymond from

Chris Caso

Yes. Thank you.

rate to part cycles much is cycles is door certain a would business. year. which portion business, the just it out like question First last which the by is of driven product run for I is just and customer business, related the there designs And imagine of large the part regarding another a product of year, getting

by perhaps more by parts driven run Could look cycles? in characterize be What plays driven us you out the What f downtick some take would that by that and parts demand? of And a through So demand. would half? sense be might second the be how business? give rate product more affected

Michael Hsing

of divided okay, our and clear, philosophical as we high But But rate, just The very we customers' variety okay. our second as a assignments. ever. look, a it's customers half, it's demand in is not not engage

well have ramp. And when so a of kind when they market then reacting short ramp up it's test very and market a few the they huge they and their is notice, and

lot ramp a side, to last and expect we win. this is the at totally months, now. ventilator particularly market Bernie, helped couple of segment, to surprise. the computing customer's to the lot much, didn't parts engagement the answer so and total And new the a power, with just total memory there inventory inquiries in the what our particularly your which question the the ship and target, field time, SMD? of okay. the in And we And is these support this in by why that's in it's is the same the memory And as is And ship particular need product all enough of medical

Bernie Blegen

Yes, SMD.

Michael Hsing

Yes.

our now. we work can the new remotely that trend are if And center, scenario will you I very and computing, And the communication on. accelerating. can forward, you are know we clear. going So not home that's work cloud And going and the is data the from keep

Chris Caso

I am you. Thank sorry.

Bernie Blegen

to you the add that high on QX had then it driven I two But is aside gaming are and end we we that just thing small there. the am console a where seasonally, that QX ramp here I QX. the notebooks, in have to those to cyclical and then And sorry. the off. see a obviously, will from start have nothing tails of changes in

Chris Caso

That's helpful. Thank you.

talked you into you any that give update Could for capacity or about to millimeter greater that? or your new there environment qualifying been need in follow-up, some half. a know, change us has the As on either on XXX current plans less? you And an the capacity your second

Michael Hsing

see customer working is we And above deep we we And in push and overnight, can And are of not okay, years. meet the outs, And of as very hard. If like and push some We terms at you trouble. we out bring another demand high qualify beyond. relationship, it not hard the in our very try have this think if and the half runners. are take they to even least delivery is numbers. know I some up fab of that terms that those an Yes. a don't in

Bernie Blegen

of shipping end year the high qualify this Yes. be should to that fab. actually before from We be able the runners and

Chris Caso

you. Thank Great.

Operator

you. Thank

with ahead, question go Please next William. SunTrust. Stein Our from comes William

William Stein

growth on the at Bernie, the at to and example. mentioned this not only a business? But and in a or from And or might to in an a also as more to as disclose wonder the my describe precursor if you a solutions to new way, Analyst like it outlook. result orders the you company the taking of ventilator call, questions. growth you Michael, start showed that or to transition several could that for I Thanks you that Michael of modules. or good revenue terms Great. of is looked the relates quantitative congrats we a things but a programmable us these component e.Motion, and transition what there leg as designs of anything a sort highlighted Day,

Michael Hsing

Yes.

motion like maturing, is controls lot number million center, data the and This numbers lot $XX really million, MPS of haven't is in year. years is want qualitative really modules for business, of we all at And of dollars the controls, customers. really motor business, is it a our And in that? percentage doing And we you chip-based a our a maybe we power the solutions how streak. think talking great. our of, ease-of-use. we from trend really of very digit so about two, like are terms It's a in our least away plug-in That trick. prepared modules place to technology you product, clearly are effort now low the a We if fastest single to investors. even modules, of top type And take well, make okay. revenue about growth we from to disclose on right? wise million power ago, for And is that supply Bernie, use. okay, What power to only our Our sales, $XX accurately the want how is that and And in and design solution as supplies, it lot have of we the that like in three solution. last to of to are

Bernie Blegen

power to is, are in add we exactly power about ourselves I as looking doing that looking modules about I financial it's really overarching modules. quantify think we were how of you. e.Motion you we differentiate that you right, assessment just far to can thing market. with it The was haven't are agree strategy add at I way though probably that, talking to of looking I a if and are at would it, Michael's be with meaningful we would are articulated programmability, model that as that solution, in whether all you would all can, Mike a where differentiate I and our or the how the at integrated e-commerce leverage multiple solutions an technologies that

William Stein

please. If that's can helpful. follow-up, a I Well, have

the that revenue, that I wondering think provide on talked a on little about performance that last traction update any if converters. can I bit could am there. was quarter, high in design think of area investing was business a sort and you new wins, you about Thank an we you.

Michael Hsing

Yes.

and brought joining they opportunity. be will group That in Okay.

We the in have brought six, and joining company they seven opportunities. guys

have for the they customers, engage And the okay, now. for while. a companies the with customers We medical

actually so things don't these change. about, we work with And of think we any not is kind that significant very okay. And unusual, a this that inputs, I takes

year, a takes development, taking the And it is internal is, some good. two and years can less anything. developments far Usually our about product, even results. see to looking okay, one three are this or than so ground-up So we we

William Stein

Okay. Thank you.

Operator

much. Thank so you

Schafer with question ahead, Please next go from Oppenheimer. Rick. is Our Rick

Rick Schafer

In a to about XX% I know year. auto guys. execute. guess tough you continue this to seen congratulation IHS everybody's and forecast over times. talking down I tough think, you time, first you SAAR, Thank I question, my

environment? vertical. flat auto let's You that guys Do XX% SAAR? that mean, look and to revenues you share say, that's obviously have say grow gains enough could a in be your significant for year? kind this pretty it's in year content that Could down, a the they of this and I at offset

Michael Hsing

look can enough, And say on that what we we in segment economy confident macro at okay. is are by it in beat our we can can our growth history, we tag think downwards that segment. your And we I a XX%.

Bernie Blegen

America in there was particular. and a production in Yes. a when complete We demand and an North Europe in got soft in education China XXXX in falloff

were year. as think that we to can say down you guide, last at use XX% a you was the SAAR grow but that I about if XX%, able So

is, apply do year, whatever So by closer it's to you we of minimum going and the outperform Michael's is points. XX%. percentage cannot going a market to point last you to And are think XX

Rick Schafer

update part into And your And maybe Great. then XG give pivoting MPS of and macro curious, sense server am for I XG you in my forwarded such question, Maybe on us base as or an of Could just as massive you opportunity? like three just opportunity seems guys. ramp if big just be provide dollar two it could a XG station? for opportunity a you the if we fast years?

Michael Hsing

Yes.

chance. a their and question. this customers That's door. were suppliers. can good the ODMs OEMs Okay. first only a XG, event you we out didn't any know of And with time engage We we the the variety and I We have tell this. and And

have so also that And And okay? okay. And How not opportunity before. big we quantify all to is real here. are am it the is, And in we both engage seen the we see tell trying side, we the of their cannot dark telecom never we I the companies market and supply. and

new. are We

know, a to quantify are don't long as And very what's is notice even and big. the all opportunity. We we the And newcomer. it is opportunity try all I we huge

Bernie Blegen

the base the I have don't dollar Yes. guidance And asking on content was think we correct for And that for station. a Michael you were number.

too are We new.

Michael Hsing

particularly In a okay. of which can segments we the I don't, Yes. XG. and you why tell

of in Our XG. product the box is a building

product building. our think brick as product going the a is it for use the those you company And in if about there everywhere. and that's be standard to So

Rick Schafer

Thanks a it. lot Got guys.

Operator

you. Thank

next Our ahead, Kamil Go from question Kamil. Mielczarek William is with Blair.

Kamil Mielczarek

been in how Hi. environment. results balance versus gross growth or the you. this you tell you And to win potentially What levers expectations? do this during Can me maintain environment? Thank activity your design has margin? in you strong pandemic margin have uncertain how Congratulations expand on trending and

Michael Hsing

of try be wiggles a are half little bit But margin conditions, was about of to macro the Yes. good is the it it pretty last slower. on we the ramped it. The very in product happy not the slower. year product sense a consistent. the new we kind particularly some And and us. product, gross of at to second in But makes rate. value sideways higher It's But new the obviously given

But the in long So steadily up. go go. that's margin why margins will the and term the

Kamil Mielczarek

And of activity? first part design was the question

Michael Hsing

Yes.

Okay.

very normal activity forgot And it. Sorry, That obviously was us, which slow impact doesn't okay. about a down question. good

in from where very much outside very different used the fast engage form are And in relates in okay, very to a a different work And shift head with feet. customer of we to we but past on always We segments. it them still our pretty a office. equipment. medical very our Lot market much way, MPS the was

not our now. we And support it's normal so interests a we those But shift all customers. like and business

Bernie Blegen

a month China Asia came back One thing about and ago. our I can operations in add to that is that online interestingly operations and customers' our in

on application field in Michael both shelter to place, last the of where developed have and the in were as and Zoom as going competent both that to our U.S. end and said, still usual. in front And we But the large years that. seeing fairly momentum. engagement, the the our actually good Jose of business a try are engineering do cadence, a majority of well say customer area we our world where we share via of in good the ability in to several our we of XX% our customer employees up not offices, to a including so are as professional our engagement And Washington over as San have design we

Michael Hsing

of do okay. Asia, people, some like percent, a including and of in Japan but the have that's and Bernie, U.S. a XX%. the as it's Yes, the and some across okay, is center It Europe probably testing terms not Asia, okay. more Japan, like a percent, reliability in China, including number XX% of most we

Bernie Blegen

Yes.

Michael Hsing

Yes.

So world. we are the more diverse across

Operator

question our And [Operator Mosesmann Securities. Hans is next Rosenblatt with from Instructions].

Kevin Garrigan

is guys. Garrigan, Kevin Hi on Hans. Thank This on And taking question. the for my congrats you results. for

one to had you already. quick me and this my apologies one if alluded for Just

driving good that's are are customers. any momentum you Can mentioned of give color had demand disruption? minimal you us seeing and that seeing with terms in if disruptions You your Chinese you any supply

Michael Hsing

it you was to say okay. And I don't we Bernie, okay. want That's know a may misunderstanding, say the customers. that, Did okay? Chinese be, that,

Bernie Blegen

Yes.

As in far in the of right understood the of seen not demand push-outs now. occurring, duration basis. projects material as macro environment any Obviously, is cancellation a haven't any or orders we disruption

seeing time, broad seen that on in we at environment. warning But point to need in So There we any pockets earlier we that step we are not to some base. answer. signs in react sensitive demand have to as this in a are mentioned very early volatile an down this a

Kevin Garrigan

it. you. Got Okay. Thank

Bernie Blegen

Kevin. you Thank

Operator

comes Thank from you. Loop question And next Williams ahead, with David Please David. go Capital. our

David Williams

Hi. and do a or second like you quarter. have could to Do Thanks question maybe well. see half. the launches if in on the said, that any you look you How on had Good congrats be? sense expected, just the of ramp? think are I the console what you afternoon to going the color taking what for volumes demand wanted that as is will potentially those

Michael Hsing

Yes.

good that, a it's gas. what stock they okay. do. up it year once very to And ramp we okay. fill a and okay. have, we We buys it is for good I do had after have and business money. cyclical for year, that knowledge very, most the pretty we And a anything, It is up value, to and MPS that of okay, the but don't that's But very for contrary is say that, And cannot very cyclical,

revenue part the three last good years. done keep But of be have small two growing, We pretty or that MPS the as business. our a will in

David Williams

just design Just some seeing the other design the and or designs Are larger you then a segment Huawei most And of of maybe thinking the there. kind about or outside about you can your you. of comm and there? of activity broader the potential talk the base Thank seeing maybe Great. wins of kind opportunity companies? most where

Bernie Blegen

China now. worldwide those if slower. has lot South is, And is as little right where America as in it been deployment a of and the a and Europe far Sure. you look Korea North

actually for our the being of design opposed now as out. rolled commercially most been So engagement in lab to has

David Williams

Okay. Great.

go Sorry, ahead.

Michael Hsing

our core. in by customers okay. have rules, disclosed okay. any And employ don't we that we clarify, to we wanted just And large I customers, No.

okay earlier, So different only like we companies. XG, many of said and I in engage not different the kind as telephone one,

engaged different with space. of also are their many We

David Williams

of And about, concerned second for are unknowns paying areas good. I thinking the areas, of Okay. guess, to, guess attention seen? of through the what perhaps, about I even potential troubled most of or could are weakness rest quarter year hurdles with that the me and be Very the the lastly most the kind what largest you if here? are either your or is, back then think or you are year Or you that

Michael Hsing

[indiscernible].

Bernie Blegen

I Michael, you are again. am sorry. breaking up

You breaking are up.

Michael Hsing

we see it, second I good joke, will know, for And is the very everything And worry they actually, effect. when paper order. and give you toilet year. so are we And then the it's really using, half about a we good, Have okay. of do, don't okay. We the as joke. philosophical a won't again okay. over And demands cancel

is what find to okay, hard, very try the we reason, course okay. real Of

have we product. are And screaming what And good, try customers And at do, it. then shipping our a we we a okay. to start until so that's far, very

Bernie Blegen

Yes.

they then to down, where the are warehouses. so to do not that in going opposed make in there And channel are managing concern to a we hear toilet want we now have inventory we that and or demand is that. that do paper to way quickly are really is level ship of lines right it distributor's as rapid they badgering the where about much a the respond the don't off, So we in sure if building fall effect outage a we is they the on requested. we will to the And stock

are guidance issue now far Maybe as that. as that's beyond outlook we managing looking quarter. better we have will So or that the next

David Williams

Okay. thanks Well, appreciate. best And so I of much. luck. the

Bernie Blegen

Thank you.

Michael Hsing

you. Thank

Operator

this today. Bernie Thank you. Ladies Q&A call his for back our remarks. will the concludes Blegen turn for final I to and session gentlemen,

Bernie Blegen

look I Right. end forward Thank likely to quarter at will and to Thank which call. you I of talking this us you the second be call, much. have in like conference day. again for nice our very you joining July. would to you a during conference thank all

Operator

for And program. we with you in gentlemen, and thank ladies today's participating that,

disconnect. You may now

Monolithic Power Systems (MPWR) 28 Apr 202020 Q1 Earnings call transcript