MPWR - Earnings call 4 2023 | Monolithic Power Systems, Inc.

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Genevieve Cunningham

Welcome, everyone, to the MPS Fourth 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 risks and uncertainty, which could cause results to differ materially from management's current views and expectations, risks, uncertainties, and other factors that could cause actual results to differ are identified in the safe harbor statements contained in the Q4 earnings release and in our latest SEC filings. Including our Form 10-K and our Form 10-Q, which are accessible through our website. to information obligation call. on no assumes update provided the today's MPS

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

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

Bernie Blegen

Gen. Thanks,

This year consistent record XXXX, our year the and $X.XX continued For of consecutive strong full revenue innovation of XXth revenue billion. execution, growth, MPS by achieved is driven customer focus.

and combination has audio experience will Netherlands-based accepted its Axiom and a MPS' billion difference the for acquisition multicore competitive which by several consumer venues cars, to and with is people's market stadiums. distortion X of of ability programmable signal with today, signals been announced $X specializing processors. Axiom with into near consumption is Axiom's deliver power change their MPS BV concert partner, IP, new automotive audio As digital and The early is homes, in Axiom in . high-end a customers expanding our systems. reduced revenue startup

from a Let this few to past highlights me year. turn

intelligence ramp powering and the artificial cockpit untapped and autonomous vehicles. unlock solutions enabled content previously our innovation customers management conventional We opportunities and for power the for driving, for of both electric automotive integrated Our growth. new systems to lighting digital created

diversify excellence engineering and qualification finally, and to Taiwan, our expand the Europe global packaging and with fab Taiwan. of of we Malaysia. centers continue our operating the R&D footprint our in in continue expansion new And further of We to footprint partners Singapore and diversify multiple with

primarily supporting segment. million to digital Turning million assistance market applications. in Automotive year of to by highly lighting integrated our driven applications $XX.X was sales year-over-year revenue our full grew and XXXX. systems, $XXX.X XXXX by increased gain cockpit the XX.X% revenue driver This advanced

$XXX increase XG this in represented XX.X% Full with represented for revenue higher in to XXXX to full the revenue represented MPS' reduction of total XX.X% XX.X% represented $XXX.X result million computing and revenue grew with Enterprise million prior XX.X% XXXX to infrastructure computing XXXX and in in and management MPS' year revenue sales Storage XX.X% XXXX of AI with our XXXX. $XX.X power XX.X% revenue the revenue Data XX.X% XXXX XX.X% our XX.X% MPS' compared was X.X% notebooks. revenue solutions enterprise with for increase was in XXXX revenue applications. over revenue This million. compared to prior Communications million, year Automotive primarily of for was grew $XXX.X due products fell of of in Storage by over Communications XXXX. year of driven a compared $XX.X lower sales. revenue sales by year revenue XG $XX.X million This XXXX. XXXX. data total increased million. of compared primarily XX.X%

for applications in decrease year XX.X% decreased to with by MPS' across XX.X% revenue XXXX fell XX.X% all sales million and MPS' million revenue of of XX.X% industrial Consumer This XXXX sources. $XXX.X automation, power $XXX.X primarily full result $XX.X revenue segments. security million in This revenue revenue XXXX. XXXX. reflected was compared Industrial represented weakness in $XX.X Consumer Industrial year lower million of in revenue to compared full XXXX. XXXX. XX.X% represented market decrease with in broad year-over-year a X.X%

me uncertainty. Let patterns general conditions. we take general customer the to reflecting XXXX, that ordering talk a economic oscillating, moment business about were Throughout highlighted

as design current us across saw well environment customers. base new uncertainty, ongoing and future we is for we believe in patterns, quarter innovative Despite QX to visibility market strategy wins by to of a growth these our While cautious the stabilizes. We limited. broad continue execute products when ordering this macro we nominal ongoing our expanding long-term position improvement bringing investments remain beyond against the

grew Switching revenue year-over-year to was lower XXXX. X.X% quarter margin gross is down and data enterprise points and XXXX down from mix. was Automotive results. quarter XX.X%, XX.X%. the third XX.X%, below XXXX fourth with This year-over-year had QX non-GAAP for the GAAP computing non-GAAP fell X.X%, decreased XX revenue Industrial third X.X%. basis fourth reduction third fourth fell down $XXX.X and from Consumer points decreased but basis of down quarter of fourth to XX.X%, quarter fourth XXX fourth XXXX quarter X.X% MPS of XX.X% the and quarter XXX XXXX, was quarter Comparing gross flat XXXX. quarter gross Communications points basis XXXX. due of XX.X%. Storage than of XXXX quarter quarter results, million, in the margin largely the by XXXX of sales fourth of Fourth the margin from quarter

Turning Expenses. to Operating

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

third reported from XXXX fourth $XX.X roughly million and quarter quarter $XX.X fourth non-GAAP of the Our the of operating were XXXX million, up XXXX. flat the in with quarter expenses

quarter of cost unfunded expense, including line. expense compensation loss income GAAP bottom XXXX are compared $XX.X in XXXX to with million. Fourth an per Switching stock quarter per the third $XX.X with Fully GAAP was per of share The of and per compared QX million $X.XX diluted income charge XXXX. $X.XX primarily or of quarter share was XXXX, Fourth was for million compensation expenses per third income shares million and $X.XX $XX.X $X.XX end quarters the quarter and share of differences share. share from the XXXX non-GAAP or quarter the the between share stock XXXX in compared goods net were of plan. to diluted $X.X the compensation million fully diluted fully per $X.XX fourth in third $X.XX recorded $XX.X non-GAAP operating quarter quarter $XXX.X the and discussed of outstanding QX the sold at fourth million XXXX with XXXX. or XXXX. in net deferred in

the totaled for and to at As balance our as third billion $X.XX of cash cash, quarter sheet, billion investments $X.XX December XXXX. equivalents compared the of XX, end XXXX,

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

were of quarter the quarter $XXX.X of capital reported sales of XXXX days $XX.X end Accounts receivable the million million third outstanding XXXX totaled fourth across comparable with Fourth the at million end at spending million. and at these There compared XX ended of XXXX $XXX.X $XXX.X the of the the XXXX. of quarter fourth quarter periods.

XXXX. the from of of the the inventories of quarter of fourth the XXXX days $XXX.X of XXXX. quarter third at XXX down the $XXX.X of Our million million end at at rose internal end quarter inventory end end of of were third QX XXXX to the at from XXX the Days days

quarter We as managed XXXX. days fourth quarter Using the revenue was end QX uncertainty have the carefully our quarter XXX a the XXXX would market. inventories inventory from basis, at of the throughout of third down the days of at next our to year internal to given now XXXX, turn end like of I in the XXX the outlook.

to sold. approximately the in gross million, revenue of million. to that stock-based of employer Total to of GAAP to XXXX range range million in the be of $XX.X compensation charged $XXX.X associated margin million million expense, including QX XX.X% gross forecasting XX.X%; range taxes goods are cost XX.X%; $XX.X $X.X XX.X% to $XXX in of non-GAAP would including margin the .X We

to to operating $XXX.X This recently compensation purchased range Axiom and our Other million. to the $XX.X $X.X operating range intangible $XXX.X $XX.X before of shares. from GAAP the gains amortization million. litigation expected expense to shares assets, but in acquisition. and between $XXX.X of expenses stock-based expense expenses recent in exchange $XXX.X losses $X.X to million million income million Non-GAAP from excludes expense of million estimate the to of diluted and be be or million. foreign includes million range Fully

'XX buyback program that was to in execute call. share continue earnings our We the QX announced

from $X as XX, share announce our of to Finally, quarterly to in stockholders dividend $X.XX share XX% a of I increase per pleased record for March XXXX. am per

we strategy remains while be to they growth continue near-term business intact, can to now we cautious the for swiftly adapt open will long-term occur. and conditions, the In as market believe changes I up webinar questions. about our conclusion, we

Genevieve Cunningham

begin Thank session. [Operator would to now you, like our Q&A I Bernie. Analysts, Instructions].

of is first question Our Bolton from Needham. Quinn

Quinn Bolton

you can me? Bernie, hear Michael,

Michael R. Hsing

Yes.

Bernie Blegen

Yes, we can. Speak up.

Quinn Bolton

driving up the like million in really Congratulations stable a pretty term. outlook lot the very data the near Looks segment quarter-on-quarter, enterprise of in on $XX growth the was a environment. choppy

And leading set then you expectations the just opportunity about with GPU your As specifically customer to look your perhaps the can I've got AI data of a you accelerator question. enterprise and for XXXX, other companies? into talk expand follow-on some

Bernie Blegen

that, I'll Quinn. take Sure.

and As quarters, from these far of applications seen been the as the over demand or last about initial we've X the acceleration we've really that experiencing benefited for ramp solutions.

the we participating time, will As competition of But continue. participants number supply or in will the that. see a also market same that the at believe within that chain ahead, broadening of we look we customers be

to decrease a and of share, period third the suppliers. we we've of that but as high enjoyed majority percentage expect market to a for So introduce date, pretty second

Michael R. Hsing

in the is the overall, rapidly. overall But the our lines the added -- expanding production and we and And meet very half for overall, grow demand. we're segment will second market

Quinn Bolton

map of Got at for in it. road of accelerators Maybe sort XXXX. some these just looking the

I out goes have puts think also in the a to guys kind opportunity? walk see you be where have down ramps your as up? guys step that cards content, consumption design through probably to should higher think content your perhaps limit and efforts I average cost may in you win? dollar still per starting perhaps Or higher of new about you you the content coming content. We down Do some cards power competition just is takes? increase cost see Can lower with trending dollar but dollar perhaps and you that thinking

Michael R. Hsing

we whether their be -- other -- as and pretty -- are in or so AI second of and problem you source also, see odd lot next joining or or And dollar players content that more players solutions. sole year, the The -- other as enter is -- qualified behind half again, see accelerating of okay, we're they see to especially we solve well, a you we players, much will ramp ]. far, rate [ market power of the the competitor of our is, the it's have will this market one the technical sometime a other

that's what the want expect. And the the we time, cost all during okay, the is The It's issue. lowering this and also cost. all we're really problems side, So and demand. not our ramp. cost throughput to time customer and always believe fast all these meet the this about to we we issues resolve solve we at at this And

Bernie Blegen

at each comment it's And go will following requirements products very the final with we of on power at the . that [indiscernible] have dollar increasing. are one content point, that are for this a this per that content up belief And AI, generation introduced is But point, being to hard server. new

Michael R. Hsing

is back of -- developments next couple these years said. and version customers In the couple in we're do power higher the is the even as And release to started -- of we a it of in next much ago. is And to quarters. it Bernie our higher to about quarter product this

Operator

from Schafer Rick Oppenheimer. question next is of Our

Richard Schafer

but days could last like Michael, auto, in I'm have particularly you for if congratulations the my guess, softer curious so. I'm of if kind last data of you could. A kind or bit, the what XX well. little XX curious expected, obviously, I'm thinking as of seems days. of than I most materially stronger most, enterprise elaborate a questions, it's couple auto was gotten I'll the I surprised

there. year seeing an might at think, So comment had, those I of I you get large. consider getting could And And offset trying of auto if if half. a market you're that just you curious second when was maybe to to ramp. delayed was slower course, guys a couple -- what you And and year the sense model on launches of I last a

Michael R. Hsing

as the due cockpit. year to believe side. it to towards earlier, kind customers the consuming end are XX%, said slowed the somewhere ] have observation. XX% inventories [indiscernible], But mostly These call especially now we digital and and good and auto we going period or the we these or activities down. the ramp auto grow it, of for segment. the last of the higher And -- volume and high questions, some the in in the May Good mostly and a June start they see EV shipped all all ADS -- [ we that next And nowadays whatever Bernie we times, in infotainment overall, year, primary still

year. for this this part year's of So first

Bernie Blegen

that in that think both last and was and applies in comments EVs. of last -- there just great some visibility and QX don't quarter. said of has been our has for automotive, beyond softness observable the earlier And we QX have as that next it we occurred year I QX IC So to

with look to for ramp predict second of the like might So for half the it's hard automotive. us 'XX,

Michael R. Hsing

the in I products. automakers very is adoption schedules, EV with but will is EV is ramp ramping different our different they lumpy in trend more more -- a the The overall, in early Right. out pull mean and and

Richard Schafer

second dominant curious, follow you XX-volt, if this about so and now in up, a stage the well. mean, Quinn as you've And I stuff. XX-volt some I got know I of stage know could on are X product asking was I guys was I

So know your a share what give could for revenue I us you didn't if are sense of contribution. expectations or

because thoughts data times, just X-year discuss do going a cadence I'm X on content, was to competition gets to to it do curious was of enterprise your it. new new or your I also get competition what it like NVIDIA of curious like And segment. annual I for a the we'll from guys as sort that -- coming in harder for XX-volt. an on if forward And development processor mentioned Stage But you cadence. will move only to you'd curious However, couple power your

Michael R. Hsing

performers. All right. Yes. This game best is always the

So far, -- I want don't our competition, don't our competition. speak to we

Okay.

to our okay, very So solution. in our have, we far, what and customers be can receptive

again, solve keep keep and when it's system our majority volumes. side. So from their the And even And of okay, have -- and so to pretty all related source. much the good all -- far, volume issues, a bigger Otherwise, these we gets issues, have can ours to MPS, the don't they issues them. it want another requesting requesting you they we even of

intend not that's what again, we So do. to

how in couple we we competition not And in -- server we back to a enough. the it's newcomer product a the that's like common -- so market, And because -- And meet market requirement. exactly out side. also a had high and to the -- is are common the And a AI years footprints. ago, when in also the the we market. power we and server win dump And come that. the this the is on need footprint density not before had down And long the of

how we to we same And we're a best. a that's very make in technology. do, And to of lot market. we the We So the past. we want servers win -- is the pushing lot said to similar in always win trend. start the sure shares. want of a and the want have We the to And as

Richard Schafer

you sorry, year Michael, Stage contribution sense for or of any guys? And this X -- Stage X

Michael R. Hsing

had all we some different And And wins small issues gain some very Yes, will design significantly We That resolved. X [indiscernible] actually. systems. -- had systems, the have AR content. Stage and in now and don't volumes issues each in we on okay. are the these

Bernie Blegen

see from Stage and X, expect we represented ramp X, XX%, is at for of these incremental products QX dollar and us, QX. the least, Stage content to And in of about XX% the

Michael R. Hsing

for not for we and modules. for shipping the XX-Volt the chip -- We modules. are systems. up now of silicon, products Yes. we the to a had supply And as And supplier these step we the some for the also,

Genevieve Cunningham

is Our Matt from Cowen. question next Ramsay of

Matthew Ramsay

not here to both tonight going questions don't I want that we calls. I of interweaving ask the because my But been M&A questions traditionally. we want to to go are first found know since you guys on going earnings in one, calls my have on and Michael, lines. or got two helped company, the X end together two I'm don't X you active up

more whole interested that and and -- bit you to go may company. little markets the that new after I'd that roll you're you're a to came what the the be going into So acquiring technologies you about together for may company prospects the hear people deal that that how

background any there. Just

Michael R. Hsing

That's a great question.

we are old to call. taking AI So otherwise, the

Matthew Ramsay

Just so you footing. make could with all March for same the we're us if Bernie, helpful modeling would to by really guidance quickly I'll sure from on one, be segment, just my second that out help go back. the

Michael R. Hsing

All right.

your answer That's policy. inactive it's M&A me okay? we And you not -- And Let true, market. in said first a the well, follow it's not really our question.

revenue. what follow -- we the do do cheap But for don't look shareholders. technology. MPS. best is apply our for We to we So do The acquire revenue grow reason for we

down to very signal disclosures. past, high-end a audio technology have already. with with Axiom, our in very, time, proven that power will shareholders. in make signals products The very And and as the achieved to will and when so to that is for quality a those we putting put very, X these we actually, immaterial same no and huge And we listen we a very speakers. everybody's low software this listened. And release, bring down I customers there proven histories their is unique And never way amplification it's that also, achieved low. for And And we achieved be we sounds, in a lot And And our programmable press see it cost. really talking company And audio -- to cost the is adaptive. really this is of X stage it's years the enough, also financially that -- and the audio lower it's big benefit how and fields. we these in I work to field this acquired in a home the at revolutionize that and and you about -- audio the in first a with disposing made -- to that. we --

Bernie Blegen

When groups, digits in I'll between Matt, positive the then I groups. we're looking for digits at driver declines low for you The growth you a flattening Does take double is we're in The that to of Gen, what addition we as Matt. and in the other see positive guidance traditional question, there as for comms, single on to CPU next sequential move QX seeing sort incremental AI, -- and that one. at the between also then we the the basically, QX look the range here. other enterprise but can is center we think second question high data. QX solutions. the far the growth our see that data remains your answer demand

Genevieve Cunningham

of question Our Tore Svanberg is from Stifel. next

Tore Svanberg

is growth, year That's My And environment. Michael, this you, for especially Bernie. consecutive XXXX. you, on question Thank of stunning. Michael, XXth Yes. congratulations in first

AI talked a year. bit always things But just something sort for us little throughout about Bernie the So you've gave but to us you surprise of and already seem QX. directionally

stuff. could more new that you're with wondering, just happen industrial about secular I'm could the I'm us thinking is upside about I'm communications. year. either working or of anything that thinking not sort that on on you that surprise share this stuff in So cyclical there us could

Michael R. Hsing

a last X.X%. Well, year, -- well, instead spectacular. very is not growth of is -- the like digit what It's single

these to comment know. a Yes, quarters who is big couple in AI, fast, took chase off XX segment I what our until And as we that we we know is, But of are of we to first year-by-year in we this we sort your to one we I one. business best -- to those consecutive out and it want grow, quarter okay, as knows. year, didn't of pretty followed we And last we with In don't recent that questions came again, don't I source products fulfill does. expect we and have to our the Number we Okay. than all our product, in small it's product, react segments we'll that's the year, knows, It's better okay, AI and demand. best happening want market of of mean, see okay? didn't we'll of question our nimble, that. competition. to And growth. our your follow in we truly see XX, answer performers. But number segments. maybe and the And it, beat deliver we expected, But customer what major competitors. simple what kind the is -- market year, ChatGPT And think years, Then as our strategy we're they react. happened. see the do come grow disregarded do customers and the we segments want we all We the X all and was That's XX years but okay. This thing, and I is orders who expectations, and those -- And principles. last

Tore Svanberg

the what impressive clearly the I building more the I think, more doing acquisition, call share in when I much about sense. people, think much [ my portfolio power follow-up, the how your But and I side. you're processing think market. data look stuff would there. gained think Makes when management Axiom you're space, MPS, single pretty as about signal of they a at ] about on I out, into mixed converter obvious they you've I penetration And part the mean, think most

maybe don't much over a know, that how will collectively I so with represent for So the share to revenue percentage be these can business? of time? overall able us subsegments you

Michael R. Hsing

Yes.

Okay.

couple are solar even in okay, products. And side communications. side, think for a we to lot designing the And And you are different growth inverters. consumer back to consumer so and and audio next from inverter from see segments. I processing and for some -- and type car, we and the converters you these And going in but of lot automotive data the silicon which of of -- automotive to automotive single a we're And few carbides some like years, lot other out kind in and talk about market from migrate -- a lot communication of [indiscernible], MPS and these today significant and dose side, develop there's management, of solar things A -- process, area, get green -- a into other and communications between power in a already years automotive for later, to have we'll segment. And ones, the next of for the the will high-volume course, in X carbide we're and a well, -- those are and and business. things. still for we within small projects of in of ones, those will silicon side. other solar the energies the second for see for

Genevieve Cunningham

next Our of Truist. from is question Stein William

William Stein

you stable that along the talked and lines, model has have revenue the remarkably about outlook. growth longer-term in to a congrats margin those I'll the had And past. add my company

since you into We've COVID about How I that is really of encourage that that anymore? margins to potentially throw revenue plus way guess, away say or really been since term? of but the and XX line as XX Or longer really wonder us and on model -- around think been of sort have outside think either honing I volatile growth to back things quarter XX sort think bps then gross about and would it per growth margin. if top should not we're started, you I model? that we

Michael R. Hsing

be. models and the kind we models too models. I we those model And model given back predict the weather -- models model our like for didn't of we Yes, of too years, be and can have not think couple we is little. time a the but build like a last correct. right? And thunderstorms. forecasting, in will either is this is much and And It's we

environment we given deviate empirical from economic, they right. it's very we And those model the kind either not that end So reasons, -- But now -- okay, is is model not also, but scientific and should whether our of is on okay? up again. and historical see quite not based our what

Bernie Blegen

X% points XX% that And just is where generally easy to percentage is, growth. to give speaking, Will between be XX and to to in and what people assume the a by it's referring refresh that between the XX would about stable is X%, of XX% and the outperformed model we market market conditions it's growing

able range basis points we about XX successive points or XX% or And predictable, to basis, is quarterly -- more margin targeted and be margin XX%. look quarters. when then gross gross non-GAAP XX environment on percentage the to grow the we between a On that on is to

Michael R. Hsing

even might is more [ -- And not it emphasize the at design say normalize wing said, there's economic as there a are that okay. earlier I also And well And ]. We And see segments no many grow grow and forgot product reason That's it, mind. so and the as Yes. going half added, we the way, Bernie okay? a I will things different in future I least .X%, [ development a normalized customers conditions. I when my okay, and and going so okay. probably -- wins we of many on. lot -- in ] do said of

Bernie Blegen

XX%. But the market contracted

Michael R. Hsing

yes. Yes,

Okay. Yes.

William Stein

no We term, long are certainly outgrowing doubt.

inventories. thing ask The I'd other is about like to

is balance now, channel, the on target I'm going on your you the maybe target in inventory your to can your think my sheet, targeted relative and maybe maybe on below update long-term view of also what I us think own running please? the just you're you there, sale. not sure,

Bernie Blegen

Sure. I one. that take can

our model came reflection between was days. will So in XXX uncertain we this the as starts what in of managing environment. we ahead that, on inventory a this been XXX low have of lot upside the to a is reminder, days how next few really be potential in quarters. a certainly sheet wafer we've balance Having at believe We which quarter, said of about our a the XXXs started

the very putting market difficult had just last model. right that aspect been to we're of we've quarters, channel, bit little a report X over this happy inventory of And as everybody. coming And our far share As been that's it's now in but our appreciably. down above I'm channel, a for the the

Michael R. Hsing

We to inventory. build will start

Bernie Blegen

Yes.

Genevieve Cunningham

Our question is Travis from Fargo. Polan Wells next of

Unknown Analyst

This Travis XXXX? was move perspective. I how the But did lines, if wondering expect customer on this through how your evolved those customer Gary. for we do been MPS you provide evolve approach base color to has any And Congratulations XX%? diverse is on XXXX. could into along as Historically, you has results. mix this from on

Michael R. Hsing

a customers decide will and decide. will hardest it the be. bigger longer -- wealthy mean And is, our in the things, see in we Yes, -- And you data also, exciting. grow the our better small -- lot don't base, that's the thousand of it MPS But will by that. okay? customer stable next And more mean the the we know market in the I And what's year. last doesn't term, base revenues. the add these few of And I a kind

those can't can't And our that revenues. orders I percentage. the not everywhere. take in I opportunity. I that's I X -- those grow -- this X,XXX. design the Our door. out and mean a that which is remember to okay. it's This products or mean more The will And that If -- any than the takes numbers to in we customer won't you one, segments say And turn -- will just to bigger just years well. one I terms it we customers. of have than but few remember beauty our go X have Goes play things. more into explained goes it's

Bernie Blegen

conditions, to of levels resilience with MPS far think there align an in high different Michael's concentration. customer is it's as is as excellent not point the the and market Travis, I And that because base of the strength question breadth have of

where unusual expect but an it to Now this except the couple X years. we last environment we're weak been sort obviously, over don't in AI has generally next with profile, of that for

Genevieve Cunningham

question next Our Stifel. is Svanberg of from Tore

Tore Svanberg

just I had quick two follow-ups.

First of capacity. all, on is revenue

you So also you're Michael, and $X on then revenue updates $X sort about talked even But to $X any I billion capacity? know in there getting of Obviously, the in capacity. now. billion of to past, getting

Michael R. Hsing

kind revenues, And billion these -- we capacities. -- $X out and plan. We are building China, And we'll fits at we changed. that. And business and do actually we again, in that continue believe -- grow especially It's to disregarded, never these the of our for actually issues current our and for long-term you -- address a And really environment will see look of we we grow capacity business. we MPS okay, we accordingly. issues. capacity what's

Tore Svanberg

follow-up, any other the good. And updates then business. on the Very e-commerce

about in heard that haven't a while. We

to So just there. an in want update sure we I you and check with get make

Michael R. Hsing

why generations, -- People that use putting a especially know pure -- happening. our generates the parameters rather product our last believe in we management. didn't the can That the million program in -- X But the up. these still didn't go input also long happen. business still that excitement our -- But that, generation. the I website. And bad. combination program said of than loading it, And they say -- But Our website, younger logging all the with would so. these XXX picking rather arms e-commerce not? I have we units in e-commerce, that. we're And we're And product year. and and it other and happen I talking our are they my designing be in okay, term, okay and us help and was because And younger is product business wasn't I it's module to some in term, a the the we can't it will they I interactions I what -- -- was ports, the way. for generations a week from be now X, to within think are longer what that web generations. that business barriers. call going yes, And power exciting. But loading service customers much. make is going long different from about X -- and that e-commerce -- will more they and we do our change years that like and and get it ship we're ago, cannot it's to their now, program or their to it than can ago, years That can business believe a part We're [indiscernible] lab

Genevieve Cunningham

from James. is question Melissa of next Raymond Our Fairbanks

Melissa Dailey Fairbanks

about going could was in maybe enterprise storage wondering know I exciting computing squeeze what's one it's quite on business. as and not data. I maybe I as if in

Michael R. Hsing

not good. That's

Melissa Dailey Fairbanks

notebook in, side somewhat. wondering storage that the last just that bit opportunistic. business side some could about that heard the the little was we on you of factors you give PC have kind very at of We've up seasonal year inventories, least talk a that noted to pick seem in I got portion kind on us normalized business coming But of did don't color some channel of notebook March. much. We've that if

Michael R. Hsing

already. said, shares, bit. You good. little Overall, some overall, grow we on And know answer start the take we not to I a market it's and

Bernie Blegen

we in anticipated way to softness that is market. So it at I the storage look the think

as positive saw was also market, initial in in a other DDRX major graphic but notebooks XXXX. became increased much so and for in the then of lot the declines, we during more the is it We their offsetting the a share ramp lower-margin during year. business the a expanded on the decline. we've And year competitive group was of the nicely an And seen particularly accepted that of with pretty decline cards SSD customers SSD result, in we And where business.

this market. difficult in and okay a net-net pretty a different did that So pretty has is characteristics group

Michael R. Hsing

we think DDRX, these us. expect our when actually product care to will I I And is key fast. that make mean products not the is is, didn't but Well, ship. happen a right? we ramp, it's so only mean sure to happened to care ramp less designing and I the product in again, up it year, we have -- we last

Okay.

Melissa Dailey Fairbanks

I'm very to Thanks a much, sore Michael, sorry bring point. right. All up

Michael R. Hsing

point. reality sore It's a not like a It's everybody else is.

Genevieve Cunningham

Our Needham. next question from Quinn of is Bolton

Quinn Bolton

in to the the follow-up, to Bernie, better you segment traction core Just starting had share in on that talked GPU in market you've know are I to CPU and just goal get about to server I wanted guys addition the mentioned past, see try that AI, XX%. you to think your your to

that you just you an if do wondering share core think are So where today? us is give about power market years? next say, the share over, target And in CPU update might your feeling you how couple XX% of

Bernie Blegen

Sure.

products launches that even those. generates recent is customers Intel think months our the delayed. observed most new ramping what the for as see and both the versions their year both with So do really XX or have And AMD of when in management we we and interest they the product power at that been I of last

and least content it share But of improve see for hard both the observing have. as particular as a participate between doubt as experienced or balance those platforms. to as But well overall XX% have ramps this XX%. say we of QX initially, increase with so projections moment, And right that reason far as our being those at that it's any far able earlier this what is for to them. don't at to 'XX, we'll At slower we've starting share we and on point, was ramp to opportunity as we

Michael R. Hsing

Yes.

was we this Let lot and of a wins. because we design me any. in and are we ago, that about about have talk have XX.X% didn't looking And X.X years

in few ship. at We for bigger turning their win, And we get players. but be -- the customers a me to are came the couldn't have a they couldn't customers, the design

back a player. ago, years different a expect X are projects. few we a be We And teams in in many that -- to designing bigger we're

start that's to same -- revenue so CPU we market growth. And And believe picks story. when still and up the resume the will our

around. year, I numbers And and wasn't will so even there year, remember And think I spectacular last last what as is or anyway. don't what soon the was the later turn

Genevieve Cunningham

[Operator Instructions].

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

Bernie Blegen

to quarter at to to Great. add a this Thank look us like we'll thank our conference that, everybody. for new to first you to forward for late very format April. you talking I'd joining introducing in will you be that just call, this call. and be which on in much, again time, And

end will the performed then a use you for conference manner, We on context we the and how and more have will provide in written portion content Q&A. markets call

that ours more that, of So efficient believe use and will more complete your we communication. time a and also be

I So with again seeing you. you And look that, I will to forward in again, thank April.

Monolithic Power Systems (MPWR) 7 Feb 242023 Q4 Earnings call transcript