MPWR - Earnings call 3 2023 | Monolithic Power Systems, Inc.

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Genevieve Cunningham

Welcome, everyone, to the MPS Third Quarter 2023 Earnings Webinar. 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, EVP and CFO. In the course of today's webinar, we will make forward-looking statements and projections that involve risk and uncertainty, which could cause results to differ materially from management's current views and expectations. Please refer to the safe harbor statement contained in the earnings release published today. Risks, uncertainties and other factors that could cause actual results to differ are identified in the safe harbor statements contained in the Q3 earnings release and in our latest SEC filings, including our Form 10-K and our Form 10-Q, which are accessible through our website. MPS assumes no obligation to update the information provided on today's call.

non-GAAP gross income expense, earnings taxes, a and discussing income, income, on be GAAP before income net a will margin, operating operating other both We basis. income and not GAAP. These non-GAAP should be performance to as considered prepared in superior with substitute or of GAAP not for prepared a measures financial and accordance in are measures financial accordance with we measures to release XXXX will between remind also today's outline be filed non-GAAP financial on earlier which financial the today. with is earnings GAAP along QX website our reconciliation call available the and furnished replay live SEC are that for year, being our like the on SEC the webcast in Tables to you that available included currently to and for have release, measures Internet is website. I'd earnings over the the X conference with our

over Blegen. I'd the Bernie like to call turn to Now

Bernie Blegen

revenue Gen. higher quarter Thanks, was XXXX. million, quarter computing revenue in quarter QX third lower Compared reported automotive, second enterprise XXXX of with X.X% while storage and XXXX, industrial than MPS and improved and and than lower. communications sales X.X% third of data $XXX.X sequentially, of

sales. revenue by sequential growth market, in now our quarter [ quarter XXXX with In increased second of program third Turning quarter XXX.X% our both enterprise million to and data XXXX ] market. XXXX third XX.X of revenue from CPU the GPU

of higher computing primarily sequential revenue in $XXX.X was third with MPS' The increased the enterprise revenue improvement XX.X% XX.X% data of compared and sales third revenue reflected second from revenue the million of quarter Third commercial revenue XX.X% XXXX. Storage of quarter notebooks. quarter X.X% Enterprise XXXX XXXX. XXXX up year-over-year. data quarter represented in

in computing quarter represented XX.X% of XXXX revenue XXXX. XX.X% third revenue and XX.X% revenue Storage compared storage quarter with third up the quarter XXXX Third MPS' was year-over-year. of computing and

as from of higher were sales decreased TV second offset revenue gaming Third in the by revenue. million XXXX monitor quarter of appliance $XX.X declines quarter X.X% consumer and home and

consumer XX.X% with XX.X% XXXX in XXXX. third was represented quarter down compared of third revenue quarter quarter Consumer year-over-year. revenue XX.X% revenue MPS' Third of XXXX

communications primarily quarter infrastructure Third lower of was sales. the XXXX, of XXXX revenue down $XX.X second reflecting from X.X% quarter million

Third year-over-year. of revenue our revenue total X.X% was down third communications quarter sales XXXX. the compared represented quarter XXXX quarter Communications XX.X% XX.X% third in of with XXXX

Third sales. lower million automotive to cockpit decreased second from of digital ADAS $XX.X revenue of X.X% the quarter primarily XXXX and quarter due

quarter XX.X% was XXXX. Third X.X% year-over-year. third in revenue revenue compared quarter MPS' third Automotive revenue with quarter the XX.X% XXXX XXXX up of of represented

Third quarter applications. XXXX and industrial revenue decreased to of sales security lower meter quarter XX.X% from XXXX due second in $XX.X million the of industrial

Industrial to Third XX.X% business. like This QX. In third our through compared quarter overall revenue the previous were the represented earnings X.X% XXXX within of XX.X% general revenue about in was XXXX quarter with third environment we some customer patterns make market. revenue ordering oscillating down have total persisted noted XXXX. I'd of quarter comments our year-over-year. calls, our

lack This orders continues to quarter or beyond next short-term of amended to the requests. continue by see some forecasting delayed pull-in make We getting visibility difficult.

said However, fundamentals we as our our remain last call, unchanged. in business

tremendously, and win Tier expanded accounts. pipeline design had particularly amongst base X Our customer

a Additionally, pipeline strong well innovate future continue for us to growth. have we and design win position

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

is attributed points for XX.X%, and The of down compared in margin XX reported product margin million XXXX $XXX.X to decrease XXXX. income to quarter the was million the XXXX. Non-GAAP of GAAP third the gross quarter quarter mix. largely approximately $XXX.X second an from both in margin reported for operating of quarter-over-quarter basis gross GAAP Our non-GAAP the unfavorable second gross was

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

expenses. our Let's operating review

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

non-GAAP approximately an primarily what we expenses -- quarter quarters $XX.X XXXX our between Our of flat loss non-GAAP XXXX. The plan. on first or expense non-GAAP quarters with compensation essentially were expenses compensation here and unfunded operating the discussed million, each the expenses operating income of differences third saw operating GAAP and X earning deferred in are for stock

bottom $X to stock quarter charged million second XXXX, XXXX. Switching $XX.X of approximately cost of For sold, with in compensation expense, the compared $XX third was the goods million quarter line. recorded of including million

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

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

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

cash the than sales higher the XXXX of of Accounts reported at receivable million. flow million of X of For million, at $XX.X $XXX.X the second XX XXXX ended operating $XXX.X XX days XXXX. of the outstanding, cash end generated flow approximately quarter operating day days MPS quarter, which representing quarter of the QX compared was with

of to of you days at quarter fourth with days were at would of at current for $XXX.X Comparing inventory the the XXX XXXX. XXXX. to of of of XXX quarter days at days of inventories quarter's the of quarter end inventory of third of the end XXXX. I were down quarter Days to in than of can million $XXX.X internal projected see second turn now came million, the second third third at of decreased inventory the end end quarter the of outlook of XX following XXXX revenue, days the XXX lower XXXX. quarter the the at end XXXX XXXX levels from from second like end the Our of the our the quarter of

foreign margin million; including QX of $XX.X the to range compensation stock-based from the are XX.X total forecasting the to range $X.X in the operating range -- diluted but $XXX.X interest of million fully of $X million between in gains estimate non-GAAP losses; or XX.X% revenue estimate XX%; charged range includes cost million approximately operating shares. gross $XXX.X goods expense million of million to to million; The of range expense $XX.X margin million $XX.X to before of expense; $XXX would range to We GAAP in shares million, the XX.X% sold; gross $X.X in million the in GAAP of to XX.X%; $XXX million. that be to $XX.X expenses stock range income non-GAAP excludes compensation this in in litigation the other XX.X and million exchange million to expenses

has we now program of pleased for remain which last our quarter, We limited expect short share was will term, on Board webinar to of questions. $XXX Directors up to offsetting X In approved to long-term buyback the a future visibility next conclusion, announce in we strategy. I up that million the to the the execute for the open with dilution. goal over are the also while years continue same as

Genevieve Cunningham

Instructions] Needham. our to would now Bolton question Analysts, like [Operator Thank you, I session. Q&A of begin first Our is Bernie. Quinn from

Quinn Bolton

enterprise tough you I market. the some business, congratulations Bernie, quarter-on-quarter. guess, and on the strength list year, very a as outlook you driving expansion sort see into GPU that Wondering just CPU. the customer give specifically, thoughts the in and next look data Michael, of see us And a results could business. Bernie, Michael on strong then how in of you question you do GPUs? And if

You of the Rapids have that in the see business? a said Genoa CPU side question. quarter. up finally Wondering to if And then was starting strength some follow-up and third in Sapphire you're I

Michael R. Hsing

the oscillating At this markets from came as from okay, it. net, are quarter. that done -- much We very okay, the earlier, you last Bernie see these this and time, in said

in and very So year, And maintain a also, We from only in okay, the in about modules the you And all gross many, as up and year-to-year, these growth -- mean a a a still as we years yet. slightly are as as over all greenfield due in from as prior from up. see the that I years, to ramping that for as okay, products clear the all this other to ramping year. up next I and ones. these last haven't business, we projects CPU in And mention still up really general side. And next AI power believe that delayed want in result well lumpy year, okay, next year greenfield server and of okay? these, don't of AI. And ramped ramping quarters ADAS gets But we But that also AI, lot still don't give we we're lumpy might of will we're mentioned to not products. they -- autos slight we That's last have -- the pushing very we sometime mainly can up and start will but the in on years, ramping a the still in yet. down. the believe these many happen as know forecast ADAS.

my So near-term for that's summary the of kind business.

Quinn Bolton

Bernie, follow-up pushouts, script, or expedites. I some in guess question. some pull-ins a you mentioned think the I

Or specific Were the I starting you are newer think pull-ins markets? to pull-in given across the markets? just pull-ins or to requests customers industry. expedites multiple certain end maybe overall end or challenging see the

Bernie Blegen

and we're unique delivery. within Yes. weeks is a under fairly are experiencing our customers of lead cycle think now, a expecting commit that times beyond Quinn, -- business end window I here unwilling lower what to right XX for

earlier now, share So that call look as growth strong. But I just the to think, pipeline, in it's that comments, our now. But we're and unpredictability. win level market said as design of said, in we the we're really Michael a we're when recovers. predictability as the still that in a position And capture to at right confident good makes, right hard we

Michael R. Hsing

He's talking the about which and... segments

Bernie Blegen

Oh, segments? Which I'm sorry.

Michael R. Hsing

a actually Like across it product Yes, Okay. we rough it's consumers. which segment, of the entire look segments, surveys. at And kind including

okay, put products, very they the and in quick. of Some need it

we lead all we much and very, -- ahead it's planned in the the we very short. across other next And said, AI, few the And even for than really the can from anticipate the plan really beginning have ahead, can don't those of we Bernie ramp-up board. the quarters. of pretty -- the beginning time As products year. is And

Operator

next from Svanberg Tore is Stifel. Our question of

Tore Svanberg

cash that on Congratulations billion balance. $X

segment, on trend you by typically talk the I you where QX to expect just know don't is QX? segment in question First guide but can each you outlook. directionally about

Michael R. Hsing

still except a sideways public continuously the to slightly not are maybe Yes. QX power everything up is down, is bit also still And slightly okay? mean up. auto, maybe down from pretty okay, all ramp I QX, the okay, -- quite much and okay? AI up,

Bernie Blegen

Yes.

think I experiencing. makes is the that in the peer our you And AI boost differentiated lot we're companies when many of experiencing market, the broader a we're that at of what weakness look demand are. us

Michael R. Hsing

And AI auto. much is everything pretty much and muted, yes. And pretty else

Tore Svanberg

as wondering like there's year. if Very enterprise here. follow-up the one other some my previous processor right companies catching question you And obviously sustainable to that on have maybe data just that's good. going are now, There's next the up but related growth on AI, ramping big visibility and looks and partner be to any it

So segment for really be especially color data would any helpful. if us that you could enterprise give on, XXXX,

Michael R. Hsing

the MPS don't in, volume still how best okay, smallest I the the best requirements we get the lower, of segment. I forefront Like always lost and All you, -- can terms take MPS the low-end provides the areas. the see overall, and MPS -- strategies. is strategy higher -- best performance. gets okay, When the those generate the which low-end in in tell chase heat efficiencies

and leading leading We -- question year the specifically. the next right? the development with to are of okay, providers And VRXX, ship AI a project supply with a But year design had our CPUs. eyeing -- part take a we are products still we it wins, a general in market, customers And of and became your Okay. win don't didn't remember in have the lot. and okay? market, In lot inventories have of segments, all the GPUs in would other we them. And the design serendipity. and we to few a we put a And be that's again, and lot the VRXX.X, of general finish, these but you'll in other winter want we other is after, up market, -- huge leading-edge we all

in ready So to it. were center okay, a you that's the ramping rapid where get let's of see next because growth. have data that. And projects server supply, That's up call to those years, told for we right,

are there. And so when these are MPS up, markets ramping already

Bernie Blegen

GPU couple as term. high of on more to there market very XXXX, Tore, the in you far want both end points differentiated well importantly, near emphasized, that for as but just we're hit that as think, market. we positioned term, stay is AI of a very good the Michael there, I a longer And the and at opportunity,

that's anticipating we've the far been be of by as would the next markets, then aware preparing the ourself. And GPU and this differentiating uptick always how during space, So as that demand inventory that in competitors there building CPU to to do quarters. is entering that we're manage we're what we're and couple

Michael R. Hsing

the greenfield the companies, power to on We Well, and I what known growth. MPS And will next I like up. term developed where you'll And That's -- last kind in to side, of in, -- and on to other of And half yes. forgot. product, all in years, ramping we the the I want Oh, growth. haven't introduced years, want it. And realized products point. -- because revenue market we to in tracking -- of a product last short of we year. diversified last are focus the automotive, lot be you AI see and also a in see that we That's tried for still shortages neglect the these want cycle, ADAS, as consumer were very okay, the low-cost couple will the inverters, yet. also years short do doesn't design only These because from okay? a make chargers segment. have because -- in the the across

very growth, side. achieve on And so the to AI only want diversified not we

Tore Svanberg

Great buyback. color. Good job with the

Genevieve Cunningham

Our Bank. of Seymore next question is from Deutsche Ross

Ross Seymore

you Guys, hear me? can

Michael R. Hsing

Yes.

Ross Seymore

last know of the is, cyclicality you've carrying the quarters, day. don't couple about seasonality is So I the weakness. question guess talked I I have or But

you you much expect You're comment really be continue? seasonal yet. not into in unique that to too drop. on that. quarter, seem is pretty limited that to fourth look I But visibility is that If a quarter, to guiding first the the something to just quite back Or

Michael R. Hsing

the for Yes. reflected but way, we reality kind well, which us numbers to seasonal. It's that of it market, it very the okay, seasonal, -- can't This fast-changing I is happened call difficult just it's mean, lead have we were okay? capacity forecast. -- cycle, of than we That's to difficult, time our lot okay? these shorter just still capacities. get okay? have And production And Unfortunately, a but that, still the ready

Bernie Blegen

at up portion bring look point if outlook good really we a the Ross, you is a is after that at market. going that notebook QX, we competitive were of for the how

of there decline look this year so we lot at we back experiencing next little as those believe Michael QX, And QX, half-weighted. isn't a are as that it bit is we're of at a seasonal look sales. When best, is the visibility. really said we But a cycle,

as we more that XXXX. I conservative profile indicate look a first half we'll of so at would have And probably the

Michael R. Hsing

gain very of beginning have to see very a In our in on And pretty now, much mention it. notebook on we'll share about -- board. in in or the a side. aggressive to come quarter, the talked the especially we notebook and didn't And in then year, start shares the consumer area, price in came be the beginning starting commercial -- out price. it segment already the of course I we within Also, in the to side. aggressive consumer new have also And more were we may and a I fourth we large side Yes. forgot of about out. And we product -- market the year, you become --

Ross Seymore

my margin the I And over it. want gross of to just one to pivot side Got things. follow-up,

surprised were going in mentioned, enterprise at more margin whether least What I I assume script You you or because data an on? at about yet mix. you just end bit little little I that incorrectly, what's gross mix but was you're Bernie, to? Because your that be enterprise mix. talk pointed would of low your referring guidance category. data correctly doubled sequentially, accretive than the a that think, to of you Can a

Michael R. Hsing

Sure. low, money okay? easier But Well, are okay? it's margins very consumer notebook, made, an be to

Bernie Blegen

is we business. the And while that contributing overall board. Michael factor is of is been pricing the as to and out that called right, across aggressive exactly the margin, the it have lower AI GPU Yes. on a in specifically isn't mix, notwithstanding gross the reflected impact

Ross Seymore

from forward? to of pricing should consider Or starting that that normalize is has an And that kind going dynamic, incremental is that headwind here? we

Bernie Blegen

normal to as innovation return of make more and of market far design I is as customers that a alone. point begins most believe secured very as our pricing have the that here pricing. a stabilize, wins our profile to to attractive, opposed we that as because to will Again, specific are

as in probably So to return that sometime more pricing a environment XXXX I believe normal the well. market as stabilizes that we'll

Michael R. Hsing

Yes.

You product and also right? and capacity okay, also other capacity a utilizations mix, China cost, other lot okay, But add us. capacities, in there's also, said of for

it's of mix. product the So all mix them, of only not a

Genevieve Cunningham

Our Rick Schafer next question Oppenheimer. of from is

Richard Schafer

Let enterprise me congratulations. more add on up, one data. I question my If just follow could

sort on. think, on TAM view franchise? the expander for when isolation the You start do year, mentioned module couple with my the a the revenues give maybe of module out in so bigger And CSPs, of around data data And -- in center, of really, power power different question of lineup guys for isolation is end those now as times call. timing power initial markets. I you sort of is a existing color would your your you you hoping right solution of And those silicon model. greenfield that's carbide I up for product stands the of seeing really next one could enterprise showing I you're couple was engagements some are a know a working sense

Michael R. Hsing

ramping for me I the in And this. me would -- be a those okay, automotive. years, ramp will Thanks in the company your silicon these inverter -- And for power first almost are demand, reminding revenue, next in market. start designed is these see mean for inverters. we'll market product, and the of the forgot. in designed products and and not that segment a for clearly okay? and Let drivers, see later. a of will product. We for other solar energies kind management. And to And much tracking dip we Yes, also very I in that there's do first cover. those products unique. sometime the answer are released specifically we the No these the up has produces lot became that we it green void

I'm new second good second -- questions half have so from year will in a year, -- of of confidence revenue And next We of okay? second the part segment. And the what's I that the after, coming see lot very the...

Richard Schafer

full the sort you you Is around color discussed. sorry, CFP, power there for any that? have view TAM that how that guys of expander Within could rack segment? the I'm a Is hyperscalers? I you Yes. enterprise know give data your

Michael R. Hsing

-- than Hyperscaler Oh, now just we provides the power. do. you We better the is only hyperscaler. know guys

the and a end large are power earlier, the VRXX, supply modules. develop that GPU that -- to we side, -- CPU is Those okay? have that And will have carbide very are mean products. the for I towards you if these XXXX. we silicon can in will don't have refer I again, side, frame, Probably that, of And And year, shares. those expect are bigger next power these So to okay, we ramping time plug-and-play -- we as the up said supplies.

Richard Schafer

margin current more margin. of thumb. if look and that I if as say rate? again the of Okay. And better year, thing us one everything back we you hear in sort I a get try toward be be at it's issue billion run we But could mean, rate, gross Bernie, of on know, I thinking run slide gross that should maybe half I sort normalizing, kind next that Ross second level pricing don't could environment. your of tilting give $X to of any saying of say, the sort kind you're the I understand question should guess, And back you about XXs high a the mix I or rule at

Bernie Blegen

quick term near to jump XXs Yes. I to would not in high the the be here. too

about to what the we should within we get we XX% for see points. said that that minus or things of stabilize that at as as have a basis return And then look expect think second our stay next year, I incremental an -- few the is targeting improvement. we to half we've and quarters next we previously mix XX plus better model,

Michael R. Hsing

given And I Yes. we I in -- years. from at are lot still next the expand these and okay, see we the -- lot some, from growth mistake. couple not look do did memory of of strategically a of see a details And a capacities. in

many And into the Maybe I -- don't I percentage? how margins. utilization this Bernie what later, capacity, the had so the you can believe know. okay? answer -- taken what's don't effect know I on gross

Bernie Blegen

Yes.

the with we capacity, take not advance Taiwan demand developing future ahead, partners, new capacity as geography. in we on far this only talked as diversify also by one Singapore relationships upswing a in is fab we but topic particularly look to of as I'll and about year it's important ago and because an On a in as expand

in And just specifically margin see the investments available will but the adding to second than so capacity here side as to... are in half more next starting gross those that cost R&D overall profile of today, year our become we

Michael R. Hsing

on... Well, China for future. is these are

Bernie Blegen

Yes.

Michael R. Hsing

it's yes? But the ago a that utilized, capacity expanded we from year and not

Bernie Blegen

Yes, not yet.

Michael R. Hsing

the Or equipment. Okay. test

Okay.

Genevieve Cunningham

of Stein William question Truist. next Our from comes

William Stein

where sort that the end products that of often, talked that see these, been revenue sort always in turn you terms into coming wins and of markets can several terms next and with the the thing. Michael, in might in revenue busy means sounds like very you about a quarters you traction And and as will -- It what's of are. of you've little over design hoping shift earlier I'm years.

or bigger runners bigger is that mix, Any because about a end design yet think the you either motion of things these wins like for markets have the the wins, that that? when should drivers, shifts other there bigger mix modules So to in the control or in ready say, in either design ASP expect or let's ramp? we volume or shift

Michael R. Hsing

Well, thanks for motion. forgot reminding I me the that. about

Okay, and USB-C, a about versus I very going, this of that more not call a terms design customers, means so And people a segments, maybe do versus customers motion beauty of we our don't lot these it. many too. And higher thousand growth. and it a yes, years. -- can't turn out MPS it, that, give look have USB... USB-PD all really across a many some not And like okay, what there is, And of customers, content few in are we for segments, are And win USB -- in you healthy specifically, few bigger talking around, thousand other revenue, is I believe And know into okay, have huge a lot the all market side, X%, the slightly X%, the And in what's at okay? the USB-PD. activities, a the that how they we And I board. can biggest products and I And design of -- has will be it. okay? And in will revenues. them is

Bernie Blegen

versions. Earlier

Michael R. Hsing

it's like C. Yes, B, okay, Type -- B versions earlier type now

to but for type converting them cannibalized phone very approach, And side, will B And will version and B and it's will because and think content, to -- And a be on, And be MPS standards USB-C. side. even -- okay? of it's auto in in on all And the next European is see based unified lot like for of the be countries a a lot switch USB totally migrate lot C that a to clear I some applications. of and we it. And in in product, a auto. a that they're especially to -- much consumer of higher mandate that's consumer type new. have drive -- and everywhere. a They believe USB -- USB-C, okay, opportunities, has growth. Apple I is is And type now a went And low broader

So a applications other that, will in XXXX, okay? lot than different okay, And in that ramp management battery of and again from...

Bernie Blegen

XXXX.

Michael R. Hsing

power to X of tool those garden are I all are in these XX months And in -- less products, XX guess, tools from things, already and next okay, yes. other to I kind than okay? from XX months, ramping XXXX. to mean designed the we're or

Bernie Blegen

both the about addition, clean just in to opportunities in sort as of that repeat and talked And we DDRX. energy, in green energy well as

here So of large number us. for that ramp products are a there's expected quickly to very

William Stein

here? on Perhaps it more came The bit. Great. me you what inventory straight wasn't, this decided one describe customer follow-up. -- sequentially us if If I was just something maybe to mid-quarter What maybe with in reduce surprised happened can decline ask issue. But or a demand Perhaps you this always for can set plan. production. your

Michael R. Hsing

it will in And that doesn't of came We reflects mean low, will the and that starting reduced the overall keep We boost more. okay? inventories the that yes, That's that. probably we year. at up beginning

Bernie Blegen

said see about is and for the starts is XXX that we've of take reduce have did sheet of anticipate we to to inventory. we opportunities range demand available we now beginning within being advantage capacity ramp our reflected in Michael months that wafer we that's what that. we want we've that What that as possible all we you've And XXXX, said, X a And or quarters ago, to the Yes. days. to of the as are But done today. for between balance have X inventory operate XXX seen we

Genevieve Cunningham

Our question Cowen. Matt Ramsay from next of is

Matthew Ramsay

automotive next I a the and wanted to market understand drivers several dig over into of Michael, quarters. the bit business the the

content exciting of I new think a and content folks Asia. have in some good in one with number of EV leading you OEMs guys with States the really very some the obviously

automotive X your unit are key us try you I'd from I could don't if some X, over I'd your of it. know, expectations help fluctuations some, appreciate what drivers really business break to relative So expectations down say, for in months to the next, the customers,

Michael R. Hsing

-- consumers. of Yes. I not our us okay? least major those suppliers, months took projects, XX it a long make -- and you don't to come. like as it year system And mean with effort. And working. out, the okay? those to or took revenue okay, work frankly, put really -- products you and year care, As X.X Like socket win will it that's win worthy is and years and a the a you And a I long can a took us us at I these customers, okay, in production type the really design and okay? you

so to we when -- of think the next I year, this of months? or up. and sometimes didn't, and we the last the middle inverters. from see okay? I mean it's type X I months I year know, thought really -- we'll also start ADAS that next new It tracking more ramp but -- mean more and tracking the saw last next -- okay? year, we'll again, X is don't And year, the

else okay, everybody with that's okay? it. as up, just All are ramping expected, products pretty as we'll so these And much go --

Bernie Blegen

platforms. that are brands. technologies new traditional broadening half But in of more launches volumes unit that or for can picking I proliferation add see if that lot slowed that customers the are to skewed a this new position those exciting design into on to technology observed. of ramp of that in wins to IC, platform of is a combustion, we're those first that has are And seeing market inviting customers the next EVs a going the more of internal And that, year. story we And are part in just up heavily

while So very I is that think that time, to our the automotive market, difficult it's positioning secure.

Michael R. Hsing

Yes.

Okay. good next ADAS. the we okay? That's now then end the and us. beginning of in were We the are the these start And they a ADAS, the But to for And point. year okay, new of and year at the digital also years. were told and cockpit -- at the of all ramp, told,

don't I I or know us can early they not. tell believe mean... So And year. I now next

Bernie Blegen

We'll see, we'll see.

Matthew Ramsay

times me, of regrow today business and growth flexibilities that the revenue from strategy, environment a perspective the also, that's check But to lot gives like feel of I just that. I my percentage it of and is of -- the wanted got still to a not, both has on margins. to used you and the revenue lean the a and to the Asia. in really you enough regrow it's was intention demand have to market in And around a -- lot business mean not portfolio a percentage you do consumer in go of analogy business, a really pulse most is strategically We there and maybe that cookie and as down And do part I try benefits consumer I And follow-up small your revenue. It important market over there your the it to was guess of to the intention potentially think to product the lean different regrow jar a Bernie but that? an years. think question, number I

Michael R. Hsing

-- demand the of last a may to The way low. the And we in made. lot EPS And like lot. be as margin will but unhealthy dropped a and okay? strategy it And -- be has it's there's lower too quarter, money I okay, to -- positions, is correct, said helped

of in X.X question time. couple enough ones did X okay? have will So lot we the quarter our whether is other months' revenues that quarters next We product, will And year second and those and the years. next release and into to X.X them, came in of a also, last turn in

Bernie Blegen

We as of remain consumer part marketplace to diversification. committed our the

Michael R. Hsing

Absolutely.

Okay.

Genevieve Cunningham

Tore of is Stifel. question next Fanberg from Our

Tore Svanberg

had follow-ups. quick I just X

a And the on this like perspective mean, is from I don't buyback, size all, history that. much large. size quite the that's something to regards we company of in First have a with

where You you the going of but like should dynamics buy think be philosophy how you with mentioned the companies trying dilution, Or you there. we the stock are of some some price? understand regardless the, to about to guess, I offset So the other to Just buyback? are opportunistic?

Bernie Blegen

Yes.

our to X-year the here that doing during that when goal period flow we confidence over looked quickly in next very demonstrating is the window. occur comment like to that on were dilution naturally will And I'd So time. the of free is buyback, cash offset we that at

opportunistic So we're going is but programmatic. to that apply also a go-to-market strategy both

how timetable a necessarily both for it program. existing well a have reflect as market during but don't period, systematic we to it implement as that will conditions So

Michael R. Hsing

Well, on implies a yes. bylaw, keep at a high,

Okay?

Tore Svanberg

that's helpful. very Yes,

Or quarter. other was business follow-up, that quite The but your and a there going something notebook? on Was lighting bit I else there? was of is know in up detail, because mainly this minor the control a

Michael R. Hsing

business? Lighting

Bernie Blegen

up bit. talking sorry, you and little I'm broke computing? you about a Tore, storage Were

Tore Svanberg

No, no, no.

the showed anything this of that lighting because I so was It You filings. your about sequentially. up And control business. was I wondering in or else. was notebook you if -- just XX% mean have you

Michael R. Hsing

these are lighting. decorative do -- a a of decorate these are these small We numbers, are and don't mean consumer don't lightings know anymore. that consumers lighting. These we low industrial these but I business have These price. don't are know because I have lot specifically, I okay? lot No, of really are but really,

Bernie Blegen

Tore. apologize, I Yes.

I think of up end the which that market? you we heart missed question, your broke and

Michael R. Hsing

he Lighting, said.

Tore Svanberg

Yes.

I have versus was ]. mean million control bigger million the $XXX things. It DC of annual lighting sequentially. in control, business. scheme DC, small a So trivial, to It's by increased but it it's a X% right? $X.X You not obviously, [ lighting

Michael R. Hsing

Yes.

Okay.

Bernie Blegen

Yes. Again, market. it's a it, general Michael addressed but

Michael R. Hsing

in ourself, consumer where I specifically okay? don't know it the We're We specifically, in not but the position volumes. we're that's in, high okay? market and will

Bernie Blegen

it's also, in as well. And automotive

Michael R. Hsing

yes. yes, yes, Oh,

right. You're

Okay.

Genevieve Cunningham

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

Bernie Blegen

be this likely Thank you you fourth at forward Just for talking like all thank the to January. Have of to look us quarter, a and webinar, nice again I'd joining I day. end closing which during here, you. the will to

Monolithic Power Systems (MPWR) 30 Oct 232023 Q3 Earnings call transcript