MPWR - Earnings call transcript Q2 2021 | Monolithic Power Systems, Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Genevieve Cunningham

Welcome everyone to the MPS Second Quarter 2021 Earnings Webinar. Please note that this webinar is being recorded and will be archived for one year on our Investor Relations page at www.monolithicpower.com. My name is Genevieve Cunningham and I will be the moderator for this webinar.

Joining me today are Michael Hsing, CEO and Founder of MPS; and Bernie Blegen, VP and CFO.

During this webinar, we will discuss our Q2, 2021 financial results and guidance for Q3, 2021, followed by Q&A session. differ course and webinar, and projections could results the forward will uncertainty, In current cause statements management's looking that to Instructions] of expectations. we today's make which views [Operator and from materially involve risk Safe Please in the statement earnings refer Harbor contained published release to today. the on XX-K, release that including cause safe in contained harbor results and and our and differ are filings, on through assumes filed XXXX call. May XX, to earnings the our MPS SEC filed in X, Form XX-Q today's uncertainties Form update March Risks, could are our other www.monolithicpower.com our statements the provided to factors actual identified XXXX, the accessible no QX on information in which obligation website

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

the turn would Blegen. like Now call over to to I Bernie

Bernie Blegen

of first quarter of growth capacity. was record XX.X% than strategy, XXXX quarter than XX.X% diversified second a and broad achieved higher growth million, in technological MPS revenue $XXX.X Jen. the our investment year-over-year of result second innovation production This and higher quarter XXXX. based of revenue Thanks the

for storage revenue $XX.X represented of data share with storage demand from and in XXXX. revenue market first second by and XXXX sequential of million quarter compared notebooks. gains market, XX.X% the computing The centers to of quarter and increased revenue servers the our XX.X% MPS' revenue quarter second reflected XXXX now second XXXX. increased quarter of Turning Computing and XX.X% improvement revenue and

XXXX. quarter than compared The second XX.X% revenue increased from MPS' normal of products. in revenue Second consumer reflected XXXX XX.X% increase quarter first XX.X% represented $XX.X earlier Consumer gaming the of of with quarterly of million the sales quarter revenue sequential XXXX. revenue console of quarter second

due X.X% of revenue the $XX.X increased Second of quarter quarter automotive XXXX, first sales from infotainment million of primarily to products. increase

MPS' quarter second revenue compared Second automotive quarter revenue of with XXX.X% XX.X% revenue, of quarter XXXX X.X% year-over-year, was XXXX. second represented in up XXXX the

reflecting for of quarter our total quarter XXXX, Second in the XX.X% quarter increased of increased quarter compared X.X% from power XXXX. with $XX.X XXXX first Industrial million second applications. represented XXXX the sales revenue of of source products second revenue Industrial XX.X% of revenue

to Second XX.X% with quarter XXXX of this $XX.X higher revenue increase in the applications. Communication quarter product revenue X.X% XX.X% XXXX. sales of quarter revenue our million up second due communications for Most total second was wireless of first was XXXX. from XXXX quarter compared and sequential sales of networking of represented the

market on above sustainable following. Our growth is based the

customers solutions technologies. we more and new growth. future the positioned into diversification revenue as and the continue first and we parts chain. to support globally. our a in production, four, are of based are our on product of tier acceptance Three, our n increased of wider and expansion we with planned diversify capacity extension and number applications. to our release well accelerated And With investing products accelerate release of place, our in solutions have gained we advanced have We supply continuously We

points to a than XXXX margin. the the comments XX gross few quarter XXXX. first points basis quarter basis XX.X%, than of now and higher gross margin was Moving higher GAAP XX second on of

of GAAP in first the and reported Non-GAAP XXXX the up from in XX $XX.X second from lower of quarter reported was The quarter of the Our million, revenue $XX.X second gross reported of higher overhead million non-GAAP costs. $XX.X proportional XXXX margin a points first and gross ago. million points quarter the quarter XXXX margin margin compared operating the basis year to XXXX. increase XX quarter second for was gross XX.X%, of for the a as basis in than percent income reflected

compared in the million XX% $XX.X the XXXX, $XX.X income. was quarter representing of in prior reported income operating year-over-year quarter, operating in and non-GAAP increase second to $XX.X million reported Our million a

Let's review operating our expenses.

in XXXX. Our $XX.X of second GAAP in with expenses quarter $XXX.X and were XXXX million quarter of of operating the first in $XX.X million quarter the second compared XXXX million

quarter the the quarter from up the Our of second of plan. we reported and stock first non-GAAP and unfunded expense in $XX.X up here income and deferred between expenses XXXX from non-GAAP were XXXX. $XX.X operating million compensation operating quarters loss for XXXX or expenses difference operating discussed are spent million, compensation the the second in The quarter an $XX.X expenses GAAP million on

per XXXX. $X.XX income fully $XX.X Fully QX, at million. in million, the compared first $XX.X XXXX with share, second $XX.X or or XXXX million, including XXXX. $XX.X second second quarter Sold of in recorded Goods net share stock diluted of Cost with $XXX,XXX GAAP net diluted second and $XX.X million, share The was in per outstanding or of quarter share quarter of million, per of million fully XXXX XXXX the $X.XX non-GAAP first XXXX the million, charged $X.XX were compared of approximately QX or per million, $X.XX of income and in $XX.X shares expense to the quarter compared share, line, total was first was $XX.X bottom or Switching the $XX.X compensation $XX.X of $X.XX million, XXXX. in the or end per share per with the quarter $X.XX quarter diluted quarter

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

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

Second of capital sales the reported the ended Accounts receivable XXXX quarter representing the than million. first at of second of spending of and the XXXX, at which lower was $XX.X totaled three quarter reported than XX outstanding, days of XXXX. days second quarter in end the XXXX $XX.X lower million, days the XX days quarter days XX six

the function revenue. XXXX million, you the like XX forecasting at the Historically, of settler, days end days now basis second On economic XXX on of margin of the of current and XX.X%. our days Gross the end than up days $XXX of XXX second expected seven XXXX. the $XXX the quarter hand first of XXXX. end than revenue were current a be see can in million believe inventory quarter as at of million non-GAAP million of the litigation of of have inventories quarter in first of days both were the lower the $XXX.X a second to range quarter is following on range first of lower margin XXXX XX.X% of the the at to of gross from inventory XXX of GAAP better at the XXXX. XXXX quarter of the inventory this the in a the inventory at at gross internal include GAAP at million. provides of XX.X% lower quarter second XXXX. a Our for comparing the quarter end to Days a quarter levels of be and with end the to We third days margin from match. I'd days were of We're basis, outlook this range calculated benefit we including of the end quarters quarter than revenue will turn the days non-GAAP benefit end and of days one two time XXXX a $XXX.X of to $X XX.X% of will to of QX XXX

and will expense that Excluding Litigation compensation million the million expected would the million this income Interest and $XX.X between including stock of $X.X million. diluted range XX.X shares $XXX.X be $X.X the to for of million, goods from place range range margin million. $XXX.X future range and release in of cost now $XX.X Fully SG&A into XX.X to $X.X our expenses charged Total we sold. between growth. SG&A $X.X million XX.X% R&D revenue non-GAAP XX.X%. be gross well should to GAAP $XX.X are expenses expense in our $XX.X to conclusion, and million. shares. parts questions. event R&D be In range capacity $XXX,XXX extension should to in approximately for be plan positioned up to based open we one more to Non-GAAP be in to and in I'll the of million webinar should the million million time as accelerate million. range production, of be will is

Operator

[Operator Instructions] Our first of Stifel. Tore Svanberg question comes from

ToreSvanberg

was another a yes, hoping perhaps the on lower a more XX bit done little seem But what quarter. on capacity a could know record specifically doing inventory the Yes, understand good here, update I your congrats I your in maybe are capacity pretty shape, plans. to Bernie, last on you, Michael, be us you you side. bit and good the strong could months, job help thank at you end. again you've us

MichaelHsing

Thanks Tore.

keep now we in the we Our as always three capacities And or years continue expanding. four and that. past

year. over do have before of the we middle However, next billion $X capacities of and

productions. us qualifier So hand. and more to just we have And enough customers' product have now ultimately for And in release grow. we to capacity our

BernieBlegen

of And self expense repeating story. at the our

we which already You X XX year, brought up the inch fab. brought this recall to inventory. fab last we've contributing that year, And inch up is

level continuing is that by to meet in out cases, the middle next of expand qualifying so both year. the we parts what billion be do So will to $X able more by we're

ToreSvanberg

And Because cash of years. Obviously, need here do that But $XXX And last you Thank what at obviously, million. intend for cash? to it's you that don't good. that. the to Very a has have. doubled your luxury it's balance much. couple now do issue over with you

the I it's reason business you return is historically, question do but to do asking now you more that that So you've high to so I'm know you this M&A? Are mean, organically, ask with I because high I at And it? what back now, have grown so intend potentially to it's just right? shareholders? looking to your plan the

MichaelHsing

That's a good question.

buy will providers better much the than I cash a As the we technology more saying comparable a is MPS a coverage. solution in [Indiscernible] MPS okay, company strategy and utilize we past to as to so keep revenues, semiconductor our market can can a in and transforming we from company, the tuck-in which companies we general

that's other the excluding we not we're but raising shares. also dividends. on hand And our are So buyback strategy consistently

Operator

from Our Quinn next Bolton of question Needham. is

QuinnBolton

You I than guys growth. that? I in Bernie, the at support might read guess hear about that. teased but hope should you your me growth you and of gross got did the you acceleration like you've better you I'm If do revenue talk last on when can my look echo the margins. we congratulations at trying acceleration script, just looks year, into XX% to the very strong about end interpret that what there nice, capacity revenue this in operating now and year; you revenue us growth, revenue let saying me to

BernieBlegen

we to factors as by a are do us I guideline. market percentage the XX as model. And right with better, well sometimes points. there not familiar as certain to perspective, the And, Yes, allowed that that from is that's both to model, outperform have our that's XX which and model, strategically well where as a think obviously, periods you're that industry a

which by on for if at in you to percentage looking somewhere neighborhood look what XX-XX year's the could you you're at argue right X%, last we XX.X% at, exceeded points. results, example, the depending growth, that was that So of, market, X% about

performance, well is, not it's to But fact current that or we range to our just possibilities in And QX. year, in could we so the only of that bit guide we do better. that within at a model, above that look obviously, match little the expect unrealistic

lot this year normal a to have us two that we're So is. benefiting exceeding is period, in observe that what from trying what we're actually three of factors our model here

QuinnBolton

I that as Bernie, color. notebooks. as business the sequentially, additional that for on and thanks ask both Great, think wanted XX% I storage it share to up well gains you also was in compute servers mentioned

high the thought high share I had side, notebook you the pretty of the end at market. On already notebook

And I'm on and or of are any gains low the wondering comment, mainstream end if share you. Chromebooks could even servers? there maybe to notebook more side. So on gains or starting share Thank you areas you see notable are

MichaelHsing

do we die share notebook size technologies board so gain cost, our in Yes, advanced the market have segment, a in as the become the some which smaller. much across our of lower

the cost, costs a MPS notebook lower the So segment. enters lower allow

BernieBlegen

strategy on then been to far we've XX being limited as succeeding our in particularly each as articulating as market to our And able as grow GPUs. though, that fairly server, volt position products. consistent and AMD Intel but also Not far next generation, with

but opportunities. So we're branching expresses Intel the really it into gains the branching up that share within family, other point these in also out

Operator

Rick question is Oppenheimer. of from next Our Schafer

RickSchafer

Thank you add my and I'll congratulations.

at it's next guys would look right capacity up. percent so. one are for And revenue, is again? how of on putting hypothetically, like, a to have in you're capacity, I you years new beyond spending everybody year. three time, couple capacity this by kind maybe maybe Bernie think awesome your to as two this And next just it's just sees I if I'll coming outlook to Just the mean, Can curious But I'm that's bumping head-on to years, onboard be impact getting billion it's you're what ramping And going questions, I'm billion look $X think once if rule would gross have only what standpoint. you're general spending? because might for kind from the $X like, growth a of installed? amazing, everybody, going of capacity years, in soon incremental at instance? of time remind what kind the you that because you as a okay. by rate, ask like you what starting curious begin line, in spending all keep many so of top more kind margin I a us year,

BernieBlegen

Rick, thank question. you. Good

important the of capacity lot that's Something this new semiconductor a a lot is companies that on of comment and focused are aspect to investors is analysts business. on of as of a and really a if here lot

been strategy. In fact, our been XX an capacity the is for have something that I've years It's integral we before hearing growth managing that. that to component

alongside and and it front houses the adding so in new accommodate way revenue is is of to that doing to that we've And of what be sequentially assembly been expected fabs also testing capacity growth.

we've have we more order order while on in beyond continuing we're that in $X billion. future comment relationships public in secure accommodate ongoing So capacity made the on the to growth to with that to for invested fabs still date, fab

MichaelHsing

we lot itself, and again, so other we we said the never a lot slower, I very will sometimes a we hiring lean, people. of stop. will a But physical times it's earlier, as other so Yes, expanding very, increase keep ones -- faster, hire is have other to are and and than MPS of capacity capacities, -- haircuts, we

RickSchafer

Thanks.

growth, having your where give is quantify you my could And track that mean, Bernie, end. in supply? a know demand backlog and talk could, up And it's don't growth model or it Michael. on and maybe thanks, talk today. range year pushed sense some indirectly much or could is if an ultimately of you I'm I limited maybe XX% or say what be grow auto you on I maybe could or how on directly year? trouble I would by about maybe question that I how next curious of about if quick auto, the I being sort was show of that's to if better my either by Thanks, this Sorry, mean, for guys. math,

MichaelHsing

times. the Bernie you long answer that Maybe much other lead the can, a us as whether company, and this give as you automotive year automotive said segments. by product mentioned that limited is the they is not capacities Because

we last so customer year. it to so that of many our products, consume And okay didn't, the year, prepare the our and all translate didn't last this

be And ship so now. them able we'll to

BernieBlegen

in or a shutting ability fact limiting of order and actually put Michael as to in car we're component automotive of not getting to said with there. constrained electronic aspects of that's that it press and a their shortages One kit has the lot the are of do just plants attention the assembly down capacity

meeting they are electronic with in though I And working because when complete they been We all that of interesting they build them the have that car. into that bind will model. are this just automotive the a a the the inventory that available, from think time even kit demand don't them. they've what's And learned got is to is from that one were parts reasons stock components

our build they actually that Now But satisfy of have to conversations is that demand. plan, build is then trying that the real they'll only can the they're the getting in and timing feedback cars. kit complete we're the when when

ordering So because it's no want there's change been shipment automotive. in because we pattern in the our expectations limitations to other monitor the versus schedule of or something that

MichaelHsing

as revenue. you want might reasons automotive current and I about with a market, a this customers, high. were very, a a newcomer to that it's was -- okay, and at the still of don't upset why newcomer, add in a a well little very our even one And inventory of and a product. percentage that as we type clear market and we industries, half on year year in don't have We're of a you so a market a a okay, in and all because okay, were Yes, that do ago it, the a though time

do key they these we have as customers, even all don't forecast. all an have inventory, what though these as a of clear So a we to lack

win a design really And more And we a because us. our gain is ship cannot now so a product. lot competitor couldn't, activities. benefited And

Operator

question next Stein William of Our is from Truist.

WilliamStein

With question question. whether times at with sort my of this maybe of are you're sort in inventory, bit that. build upside, which you to demand customers maintenance hope stretching And capacity regard our time? a of trying question it's of you after And all call. constrained fact taking inventory? Are communicating this them I on for I to to Thanks and lead the can you've hear me. a customers? meet have supply a as explained first capacity quite Or bit able about big and or more already extended to constrained? you regard your Are question strategic then you to

MichaelHsing

Yes, let me explain way. that

to materials product. you fab, different it's And less constraints not than as a comes the in like all Okay, all fabs, exactly call, half a different these customer's delayed different after month or we have -- qualifying have an to you and the a okay, ago capacity and science, qualify qualify you couple have end. a -- okay, equipments, the mean compared in and mean on also, or all products when these you effect of these qualify issue year problem, however, we supplier months use new how

time, okay, just fabs. have we product, lot existing from new lot this different So to a product of release of

constraints, fulfilled, here more to it's just okay but so a lot months a your late. And only couldn't of kind a a kind answer is we of the we of couple and orders, mean -- have question

BernieBlegen

customer or servicing on our that here to in building real not the make inventory, up shelves. channel do we're sure and we're again, And trying what demand, is either

be with sufficient what we've in trade to able offs. with actually touch sure we that that we're we've so is our done have relationships those to make very customers business make their So transparent

WilliamStein

devices the this from transition to modules. more would specifically if Any as to ecommerce the Any around area question, something transition to Michael, written company, helpful. semi solutions strategy the very Great, technology thanks. strategic it's perhaps it I've well. company in And and this a then Thank refer about up to from can, and a that you quantification semi you. or follow to be relates update I

MichaelHsing

by overwhelming and company. okay module allocations now and absolutely from Yes. right from company company as we is and a the less the growth the from And of as organized have we as but revenue is line. you're a analysts and quarter solution, that ecommerce, allocations to growth, a pronounced, module teams inside the but the outside we in finally, quadruple. the module the know transitioning a only also transforming product we question, a the like okay, Thanks for And company company for in solution a business that semiconductor are we're the lot transforming, not asking and by overwhelming a is strategic I revenue for have to last solution activities things, product

the And still in so is the revenue millions of but is dollars. small,

than more it's - okay $XX million a million mean, dollars, somewhere million. I Okay. $XX

WilliamStein

a and service? With module

MichaelHsing

recall we zero. that. and zero, years in Yes, with service ago, as And years okay, almost five about it's years the module started and four I growing, is ago. Yes. ago, you mean almost Three

continue so And we'll to focus on that.

so that's And believe our truly I future.

Operator

next Our Cowen. of Joshua from is question Buchalter

JoshuaBuchalter

thanks key congrats ran meaningfully Was And drivers through driven Thanks. your in mix leverage getting guide guess guys XX or basis you side margins the on recently on by fabs? Can I it point sustainability? the the something elaborate trajectory. the to of print for results. the were question. taking to cost XX your usual on and speak there? wafers both than Hey, the And higher my Gross

BernieBlegen

Sure.

our unusual same term as we've that's obviously, haul. not the it growth. or the described margin the or that fast do at And And I again, getting to terms in grow not, which is growing. I in the revenue provisions But that for would points we've was we're narrative, like long consistency revenue we inventory want like both spending overheads is able in be sequentially, growth that near discussed leverage. very where able is in then model it's this direct how basis company, gross anything the XX as like being we growing the of the rate And the an that, before, is much period over at of the that is to be was to good think demonstrated past XX describing that. to

going we expectation obviously, same sustainable same As able grow be. want to floor have what we the we're don't out, expect by create margin gross rate. established look to to another level But we we be that to an token, the for at

JoshuaBuchalter

that you. then in That's to And bit And the a I the you Can your business helpful. console us also growth consumer half? mentioned versus you. normal Thank accelerated model, you of was by give expect on Thank on like maybe you guess, the revenue just in look shape would second the remind seasonality. what console us some clues segment?

MichaelHsing

-- Sure. call don't we of if don't know can't it normal a normal, I I okay. I think anymore.

Okay.

Regarding console console. the wining think continues, next mean business, mean us think seasonality what's I to okay, the for of design, we our than judgment yes, I have okay, I a better you lot the I a win business now designing,

BernieBlegen

are would to And seasonality example. for added it that businesses think thumb of Michael been different is is or whereas is the believe and the point traditional again, strength comment been there optimizing would lot I of in consumer of of our many across end that XXXX different makes very we that of have I really as is a that it's the that markets. tied rule strong a been XXXX. applicable might model on so And all not the have and we've diversification. that the we takes lines in have had as puts back

obviously, sort and recognize of think of don't much level necessarily computing, forward the if they of is drivers. storage particular. you with and And have should that the same the our computing look and benefited near term industrial, tied complete that business we communications longer-term seasonality. higher year But to the I automotive question, we in percentage current be our significantly believe growth, at then from Now going automotive is automotive to along

Operator

question from Svanberg Tore Our Stifel. next of is

ToreSvanberg

have few Yes, just up a follow questions. thank you. I

all, on to obviously revenue I of question your tied your have First a growth. which ASPs,

So sort in versus of the now growing units that that ASPs? how are you XX% is of much range,

BernieBlegen

that last business; I to year, looking price. look is solutions to the an we we're Michael for you individual XX% will And for complete XXXX, think if what XX% you're different when the the about what was now achieve and depending the year And volume, total say would silicon between selling end for I in able $XX representative to tied piece applications, XX.X% be at And $X.XX to of solutions tied be is design to of for to can is be last growth doing of previously at $XXX. those can we're looking talks Yes, module, on do $X. get that to somewhere where between $X.XX. able integrated cost to $X solution was

ASP So, importantly, the but on there's the component, solution. with the that attach total individual rate it's more it's having

ToreSvanberg

ASP And good. business you talking that's Very highest the products about I motor have. your know systems, how's doing? probably

So how's that business going?

MichaelHsing

well, It's company doing but the rest our of is growing faster. much

was that can't more category -- you will a break think yet. our product of we percentage it's I -- have small. a a But And give -- still a So more out rolls.

later. Okay, into it product that more a as divided line. finer give Yes, number we we'll

Okay.

ToreSvanberg

you revenue, fast how any know just And it's your mean, last understand one, market smallest end probably medical very Sounds the in is good. the there? I very, medical percentage but to of getting ago, Michael. talked year about into updates end I a still traction trying market. about

MichaelHsing

Yes.

have We the and do we well, we ultrasound product generate we our revenue, the that's we several ultrasound, things now. that a we're now. a have revenue -- have And see

the other and x-ray one machines. Okay is

but better like thank have it for from issue, is some that problems. we issue But is and the size performance have our silicones Okay, okay, outstanding, I [Indiscernible] a very up that's -- mean with we we you we we is bringing able will to a first And solutions. design the -- existing And evaluating than this. x-rays. solve it Xx, fab. And are the be Xx put minor

now. the we image lot deliver. So couldn't And cleaner a more is

And And so very customers I we're are think excited. waiting. the

BernieBlegen

One that converters, other right. our precision is comment we're technology or add analog performance to here the to high to here referring is related

MichaelHsing

Data converters, yes, right.

BernieBlegen

think on been been has we've and this that X.X something for working I now. years about And three

MichaelHsing

years. half a and Two

BernieBlegen

really commercially in is what incredible close market. opportunity. it's is declare exciting able think I And this we're to to And that the being years. viable very X.X is that

just opportunities a opens end after the it's not first other But this with So this we're technology. up medical is market the us. which going for

MichaelHsing

Yes, it's in able similar side. that the same technologies, use be to telecommunication we'll technologies

Operator

Garrigan is question Rosenblatt. of Kevin next Our from

KevinGarrigan

guys, my thanks question. And for Hi, quarter. on congrats taking the

Just your on I or a year is backlog you if what tell us three for quick products. one was could based of newer of wondering percentage percentage me. business

three products sales. Bernie new I last years think last about of had quarter; introduced in the and said you were XX%

wondering in of was same range this So the just this if kind quarter?

BernieBlegen

that reason stuff magnitude product to one new order growth. really use a component sort to was dynamic this of basis our we as that just is how give on the of a introduction to time Yes,

right want now, ongoing in quarter up basis. it one down. not an it's lot or a short hasn't something whole But a that really to reporting such we term, obviously, changed So on be

MichaelHsing

back think way, think other I range. think is the that a was-- is a okay, XX% guys reported, a look at us think we than went that's I I And I as last time actually eat rather better a quite And okay; I Yes, ourselves. actually cannibalize and that bit, and Yes, somewhere big cannibalize XX%? alive. it we we

it. that's why Okay, cannibalize are all these And numbers high. the new so products, we

BernieBlegen

you But story. say there's I the gains for really part leverageable that market companies against can cannibalization involved, that's that of this peer would share when bet our

Operator

from is of Our Bolton Needham. next question Quinn

QuinnBolton

guys. Hey,

of for there capacity, margins. know to to that continue driving the overhead the of more I strained, do on your a take your capacity segments in of most little it Joshua's in foot the as on have near you pedal certain wondering, and and is to term, than if pricing rather advantage But on I'm that much revenue capacity margins. will put support? raise pricing? better you Just question to just to any get access guys better through competitors you to to to Or kind through wanted room absorption trying bit support getting follow drive try additional to is gross up

MichaelHsing

consistent the Well, yes, times, at and is smallest deliver smaller, we MPS result. business, want is still analog to a a semiconductor same a have a

and price, we just with costs now period, shortage, this on the our our margin customers. see you can to long-term we don't because we in gouging relationship our we pass lot just don't fluctuate we now can a that customers, our so because don't and a okay, we raise And the even randomly affected --

that so and our margins. we just maintain And maintain

this I fits us, fits Okay, strategy everything, yes. for think

Operator

I As to the no turn Bernie. would over back there further are to questions, now like webinar

Bernie Blegen

for I'd nice the quarter you will of you joining look webinar, third for this us our have and Thank at a all forward to again which likely end day. like with thank to and talking during be you October. webinar

Michael Hsing

day. nice a Have

Genevieve Cunningham	Marketing Communications Manager
Michael Hsing	President and Chief Executive Officer
Bernie Blegen	Vice President and Chief Financial Officer
Tore Svanberg	Stifel, Nicolaus & Company, Incorporated
Quinn Bolton	Needham & Company, LLC
Rick Schafer	Oppenheimer & Co. Inc.
William Stein	Truist Securities, Inc.
Joshua Buchalter	Cowen and Company, LLC, Research Division
Kevin Garrigan	Rosenblatt Securities Inc

Monolithic Power Systems (MPWR) 28 Jul 212021 Q2 Earnings call transcript