MPWR - Earnings call transcript Q2 2024 | Monolithic Power Systems, Inc.

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Genevieve Cunningham

Welcome, everyone, to the MPS Second Quarter 2024 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; Bernie Blegen, EVP and CFO; and Tony Balow, Vice President of Finance.

Earlier today, along with our earnings announcement, MPS released a written commentary on the results of our operations. Both of these documents can be found on our website.

of would today's remind forward-looking that presentation, projections the I the that statements involve begin, Litigation within of Securities course we meaning risks we and like of everyone to in and Reform uncertainty. Before Act Private XXXX the may make filings, results in the identified our uncertainties safe in our including Risks, actual harbor other our QX these can from statements on that factors differ and in earnings the and release forward-looking SEC cause contained which found XX-K, could to statements Form are be website.

of Our statements are and no made information. as obligation this to today, update assume we

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

Bernie Blegen

Thanks, welcome Gen. all big Good of to and you. afternoon, a

QX of of high XXXX exceeding the Let guidance. our million, revenue yet me open by with MPS $XXX.X end saying reported quarter another record

Our and attributed strong increased our past AI-powered solutions, X several initial order design demand secured lastly, end with revenue for factors: of revenue trends associated wins in was improving markets; years. to growth in ramps

we supply stability chain diversify growth. to our continue global supply capture future and and ensure to Separately, expand

have a emphasized success from growth only results transformation reflect supplier and many our provider. proven As we long-term years, of strategy chip a being full our for solutions to our continued

for open now the will I webinar questions. up

Bernie Blegen

can Gen, you caller? the first please ask

Genevieve Cunningham

first is Ramsay from of Matt Cowen. Our question

Matthew Ramsay

dealing in been storm to have what's relative Mike and what over Bernie, a of congratulations on, X I'll weeks. us just the have call been say, it's the nice part to all last -- with

huge this questions segment going the Data I wanted is on that couple to call. a I be congrats. ask imagine of So a to Enterprise focus

just I'll start first maybe with question. So the

seeing Michael, by And Consumer, some us in of non-enterprise like give maybe September, guidance segments, you little what talk market data the could end a secondly, could I'd you're things about your appreciate bit Auto. you some like, directional Comms, in for if color it. if Bernie,

I from can where Enterprise wondering shoots had really has areas yet segments. in tell, starting growth win macro of been I'm a other has green recovery by There's for this design any some your lot to a of challenging. other been what those has But -- And there the the you're some these Data. if big of company in driven see model in success

Bernie Blegen

keep has as QX fairly as quite I'll comments by Sure. that carried the the last as into market. short been QX participation. the bookings as broad my Essentially, a outlook the fairly far far quarters end bit we and improved few has over end trend market

took you'll Enterprise Computing, with see we fairly in X at large you a the third in of incremental Storage groups. Communications, in step growth continued each we our then that specifically If quarters. other look outlook, up see also quarter last Data, And in improvements and the

Michael R. Hsing

Yes.

we other said is separate difficult as is, question some would And relate to AI. of business it, to Bernie AI. our second Your now see do now it

that's -- Now see designed in AI is, ago. And start okay? -- is before, is, whatever the year let's ship it that, it products markets wakening we, but year A half -- we other okay, we say it we these up. which whatever business,

change fact, see do much as -- are higher is design designs years, AI trickle -- And all Communications and for for these lot a we And matter X related probably will requirements. to higher -- much power of these new or power related design requirement, a which than new especially AR versions. so that revenues. previous of the a and board. to the across And And new X design well, came the are of it's these down, in wins

Matthew Ramsay

once. it. X questions I ask at appreciate Got it. I

queue. I'll So back the get in

Genevieve Cunningham

Our of Oppenheimer. next from is question Dustin Fowler

Dustin Fowler

quick of couple questions. a Just

followed Auto, you power So next I ramp by later this in isolation, year Data believe year. for Center

of sizing, Could markets, hundreds you the any in in market you a opportunities maybe competitive of give the greenfield us just both and be could millions if sense ramp landscape markets each. can? both think the I

Bernie Blegen

Dustin, This markets. I apologize. is Bernie. hear which didn't I X

Dustin Fowler

was isolation. for Sorry, that and power Center Auto Data

Michael R. Hsing

do for start And product the -- to we for that's a the very Data you And Centers. we powers -- Yes, higher only beginning. what say, ship this Okay. that's true. is

the And in known, so -- all -- we been we cars we it's believe ADAS, have Although X provide far, years, X that that all all when wins and car to ADAS and the and makers, and especially will -- have more which these being the converting or more we we EVs. features. -- became design in the cars okay,

Dustin Fowler

think Okay. XX% guess, Street the content before is auto And installation, year? gains? with modeling And has wins largest customer I with how have are guess, this the for the power guess, should Chinese plus model you flat. kind maybe OEMs? Auto Auto I you this of flat think share of about about year, Bernie, realistic we Auto kind given gains that we your as And I I think how

Michael R. Hsing

we up. Well, that cannot pick

a And Our to me models are confident. very can't you accuracy pick we them. going -- want -- forward, give want you My I is and model. you pick plus/minus a and to the give XX months.

Bernie Blegen

expecting think I the did not example, a nice QX, for a Yes, little in outlook fuzzy. we near-term bit remains occur. uplift, Automotive for And were which

specifically. wins. only is next for Michael design more is hard to X, correct Auto additional long-term positioning better our predict getting is EV and broadly, the positioning with so X But within that And quarters is

Genevieve Cunningham

question William Stein of Our Truist. from next is

William Stein

made can hoping might you used. I'm you been you about comment have selling, Michael, on solution the term think, I that Great. linger

versus see -- semis. spend sorts of linger explaining hear what minute coming and what I you growth what a maybe think end products in markets and what the about you activity? been that you're to past, as to Can we've from modules conditioned

Michael R. Hsing

Yes. I like question. that

okay. that's didn't didn't Okay. part plug-and-play the including that a we maybe At And direction. But or as of solutions. we we ago, about, e-commerce, said we what the that talking And we but beginning, okay, that's a sell journey the I were long know know time hell started okay?

the that when And effort -- are actually, will in We be we So We solutions. selling silicon, yes, sell technical to we're all journey a semiconductor provide. -- is a these And we implement details company. of terms we we're be, do we're solutions. know how the selling we do. we known the all

to effort monetize our is we my So knowledges. want all

MPS end our our in the -- And doesn't money while -- capitalize just from things. knowledge, the entire make making are capabilities. the any we or the we

we the so journey, And started.

to Now Every our we're silicon the used -- MPS solutions. total be $X.XX revenue. probably of to piece XX%, selling XX% between total selling $X. somewhere of we It's

which even the announced, we lot business. in very them, a for them of lower Consumer Some little of of especially kind market, mass and

solution solutions. to a now a still We turning solutions. And is semiconductor-based company sell those

proper a growing for excluding as year so that, we're growth. than a particularly, it, running Now And call module XX hundred and -- revenues. to AI, every percentage a to $XXX XX% as okay? -- MPS company's what today, the by you total and more couple close business, know like of it's don't XX% our I word we're of module, million,

And And is at look okay? $X, we if sell, we can more $XX solution $X, this sell. $X, that chip you it all of price, content way, a generate chip than you every the

company a will we commit our providers. result on silicon-based solution transforming to the again, silicon-only that's the today, So to journeys. we're And and

Bernie Blegen

And Will, I just could X if add comments quickly.

markets, design to complete that between. the specific to point our all lot wants, it's modules a higher of solution. other more chip of the deliver we where solution is no like -- whether your ability, is expertise second add primarily to in this be of a in the business it's the are able our design solutions, we longer a question have it to across or package to And die, again, that while our type some have on first The the focuses percentage we those or can cycles, customer is, driving company, and

Michael R. Hsing

hard AI okay, to for up selling many providers powers. only. data traditional few are or whether And apply there's the or selling And and especially distinguish, company solution silicon-based companies, solution case, this modules, And Yes. a a or module okay, semiconductor semiconductor power solution AI to they very many, selling centers. are using solutions that's they

William Stein

in lot -- I a please. those add talk about can And have you talk are to in claiming you're know Can If power be there's can are a that know it. doing I vertical what companies about you guys yielding your I or some that are there's of it I are, follow-up, that you think, maybe of efforts companies one ramping what delivering. delivery? But clearly area. more

Michael R. Hsing

by not I said, it's and day. have is okay, are leading one, X maybe or growing. say, have position there's because one MPS. is positions, the huge, The MPS company, companies, We market the leading to will been is similar maybe the X okay. it's capability, the and And I in X

semiconductor So so there's kind happened, that. capability. when companies based that of ago that the -- are have that. developed years many AR for And semiconductor a developed We company not

Genevieve Cunningham

next from Our of Needham. Quinn question is Bolton

Quinn Bolton

Let quarter. question offer quick Maybe just of the Matt third the first, congratulations. me Ramsay's follow-up on a on growth Bernie, sequential my in drivers

big third Comms to the specifically just growth is the Computing, and the X in want quarter, Data. didn't and mentioned still you say to think drivers of Enterprise Storage I I get then you but I'll one and hear confirm I Data questions. Enterprise

Bernie Blegen

Right.

of we first Data, the in expected the have prior On it Enterprise up, to But yes, this. tee that grow. I significantly off, to tried is the each quarters way X to grown

growth slowing down. And quarter of only. for biggest is this rate the the So --

on And calling begin of Storage not currently companies will lot in working with in I offer QX. or Communications have opportunities drivers But -- that out, I and Consumer, designs that particular, good a Consumer yet was that be to to the that Computing there's with. both different ramp a and of number we're because

Michael R. Hsing

have XX.X%, a revenues, start VRXX.X, beginning. And Quinn, and the the to okay? was we that significant

And we increased VRXX.X lot test We is up win. a VRXX, hasn't case. which MPS -- yet, that. know and of and really have is ramped design like You a

okay, of market in And we VRXX, during the the revenues when for other of -- -- shortages, And and lot volumes -- delivers significant a a competitors benefit lot to so shifted be segment. And will our is, delivered. now MPS. we -- the players

Bernie Blegen

in this year, take second the starting like to is particularly it that off. of looks half And segment

Michael R. Hsing

Yes.

Quinn Bolton

CPU out And talk was Enterprise about just, in could squeeze power, second some guess, broadening the question question. whether another the of if question side portfolio? your that Great. going have it's on or I That to Data just be then vertical within I my sort, on AI you the I'll first opportunities, power could of was

Michael R. Hsing

ahead. Go

Quinn Bolton

that underneath the sitting into market. is and voltage the vertical talk the current you regulator about true When mean, different processor power, just question So to view I talking And wanted just they're about guys' kind power. competitors I vertical your may mean of power, get on on on different vertical vertically is guys where when vertical substrate the things processor? power, supplying

stacked into voltage Or of you got vertically regulators one the confusion things still phases vertical look delivering in that vertical I inductors power or processor? capacitors laterally. other guys be What's but a and do or current in stacked may still current consider of but your some might lateral what the sort the more market actually where packages, might there's and supply vertical? and definition with you've what module be think Because

Michael R. Hsing

-- Yes, the ones is lateral one power which customers, And more to CPU. back one powers. And the you're right. into turn -- still similar power directly side, server There is server under supply, lateral top like other the is they're is advanced surface a it there's very -- CPU supply. some

all is, MPS's everything we question answer currently, supply, And running X solutions. that modules, have Chip, we're so there. all to

Bernie Blegen

And to also or higher this on. lateral current. we And of vertical you add that I we the as necessity have to could position in we a believe deliveries have into get the for addition either also is liquid that cooled different increasingly power, if Quinn, power that

Michael R. Hsing

is Yes. associated approach. the There's lot of module the of problems is with the most a And CPU. a do and type technical that's your efficient to difficult highest answer efficiency directly and question that issues under of Quinn, making to delivery. that power lot you're a

are for top surface-level power So conservative approach, efficiency. many do watts, the like powers, delivery. just And highest servers modules only -- these those over all some well power X,XXX a directly very and and the CPUs, high powers, under companies these okay, companies these take and the

Christopher Caso

Our is Chris Caso Wolfe. of from next question

Bernie Blegen

Chris, hear can us? you

Christopher Caso

I Can me you Sorry, hear on was now? mute.

Michael R. Hsing

Yes.

Christopher Caso

All right.

Sorry.

seasonal has how December be your was on changed the past, is quarter, seasonality changing mix you. that that And since revenue from question and -- days. In a for a may a down the quarter. bit the quarter those seasonally but are not typically first December is coming not now seasonally quite as business segments The

seasonality December anything as if at comment how there's forward? you forward? December. no we should look to respect want that, With appropriate to model going longer Is look on with the And old we

Michael R. Hsing

seeking look, from the new okay, the What's advices we we all inventory with these -- oscillating out know. are business, Yes.Well, current you. from [indiscernible] don't customers, with and our

that have you So in, shortage. a came huge

demand, then consume comes the huge it okay, oversupplies. so of all these I up, excess customers so assume, So again now now, our inventory. And

know, the is to is And it's market time don't shortage? very lead that I okay, short in Now difficult waking forecast this up. -- another short. and is still the

Bernie Blegen

Okay.

So we'll not We're our do best. going to... ever

Michael R. Hsing

yes. Yes,

You us, can tell okay? Okay.

Christopher Caso

That's enough. fair right. All

that? follow for you As well. power And expect some Enterprise vertical And know, talk with up segment, my coming. what as expect AI, wattage what, follow-up what we've particularly year? got about you to within on you next particular, power question, I vertical for wanted processors Can in higher content we the

debate. certainly ready to wattage that vertical whether the regard because some doesn't seem certainly difference is make or next whether go there's into a as the a you're does know vertical power. your the for be generation higher? ecosystem is content going I processors you It of ready with over power, Because And debate for to

Michael R. Hsing

this. can I Yes. you tell

And know. about Our to I many GPU I us about to or be don't per second, want okay? dollars unit And want it. don't their how appreciated customers they would know talking talk it. don't about unit, not so

Christopher Caso

right. general to in the mean the maybe understand. of I that's you terms Okay. about I All But available speak just in you. opportunity could more terms opportunity,

Michael R. Hsing

revenue. you sort now right, of, okay, of -- like revenues, was is And last companies, X% For our maybe couple sure, our Or of percentage we're or okay? at total year yes. like X%. running Well, couple and okay, XX%. look a Oh, year's, from today, what, last of XX%

that's million, $XXX a okay? $XXX So million,

in -- is our Meta, and company and are at lot and told coming beginning. opportunities those and we like design really up were a there's this companies win like And hasn't Google of our a And the other ramped later. AWS

not So AR And is do I market don't I see MPS huge want the big. to turning only. this it too a way The company opportunities. okay, only. We see, is

Bernie Blegen

Yes.

it networking. the through for it think of be the be us pull add I on besides can be think AI I'd probably thing the effect, top heard that, direct talk only trickle you've down memory, whether AI I about could opportunity, optical, could that of

beyond lot a there's think I MPS direct the AI of business. opportunity for even

Michael R. Hsing

That's a Yes. good comment.

Genevieve Cunningham

Tore Svanberg from Stifel. of is question next Our

Tore Svanberg

Yes. wanted and process quarter. Thank you, there. opportunities on you and talked data I center, whole Michael, but enterprise but again you on from management power lot away GaN you congrats or move Bernie, especially data, going know stellar another I to some follow carbide, sure I'm about and the power to up ask pretty supply. about in haven't elsewhere the have a historically, activities more I'm silicon

doing So elaborate the bit data what little you're on supply can you a centers? side of power on

Michael R. Hsing

revenue silicon small, to okay. we We're but be tell that yet, our to now one. started carbides. our I it's like you very, okay, solutions. not since will develop XXXXs And and I a -- only. the we device sell a own power selling can't I fab Yes, But okay, very said as fabs. early, It part of alone we a so intend a as

supply. It's So a X-kilowatt, now, It's X-kilowatt, you guess And XX-kilowatt evaluating. what? designed data power center. those okay,we

is owned. biggest the the But revenues. little very a have we So MPS only,

our amount to [ to is of customers. it and MPS became our our as it test And into these power using to we well vendors, [ our these equipment. also supply, testing improve burning equipment blot module our system, invent All have ], them particularly, design, and these as we All a the vendors test own modules, MPS test we're to and that how huge supply and power have ].

years data And so couple generating. a centers, still ago. we of we a them are but for in that's these started for -- so, -- the the ago And year revenues well, or and XGs and engaged in

And segment from highest revenues provides but for that smallest is we're so because small, the MPS efficiency the the big and looking the revenue size.

Tore Svanberg

perspective. great That's Yes.

few use cycles excited usually, centers AI I everyone recall, As we've lot to data of know my a you share. about a is I together, through gone recall, I follow-up, gain downturns because of areas meaningful gains from a of share today. navigating cycle. But you're see we're here now the perspective, some more starting are at of the where the and what to sort that designer bottom

Bernie Blegen

Sure.

So different a we that continuing think multitude to OEMs. multitude with about X I in different suppliers been of clear we've that's across that and very Automotive and a of the platforms how positioning grow Tier have

in in opportunities for becoming recent think improvement, visible the some greenfield where are of with be, area market, most I more Communications. the would particular, these

in we've investment indications of and XG. that seen wireless that continuing some in segment. that seeing the think And We're I early

obviously, So I'd shown don't modest the lot now that area even have growth, will our in say that want quarters. to of visible. business and part X towards of has of that's materialize But forget relatively probably right the is greenfield which, opportunities area we be lot most probably will not industrial, where I a though, momentum a the next a is next

Michael R. Hsing

and ahead. Yes, -- go

Tore Svanberg

Yes, Industrial? that under I and to is RV going was be just market, going Auto the or ask, to

Michael R. Hsing

RV?

Tore Svanberg

I The you've RV the about know camping market. that. talked market, car

Michael R. Hsing

Yes.

one ones, That's of my Okay. okay. favorite

will very for blot in be do market. much they products, -- Because the same for be for these share industrial will in the characteristics. we it share all equipment, okay, own same share the the our data think test signatures I centers -- as test shared

the the and have for same and and and power these need management. for these share around, all them. that not -- battery RVs are -- a and type moving, characteristics the for robot, very And And of charging robot RV, much stationary as supply these move they also -- okay? robotics. those And especially for

Bernie Blegen

even Consumer stuff, be humanoid could or the Those too. Industrial Yes. or

to don't put I think So I want those... just

Michael R. Hsing

a we're think, I okay. Industrial in probably in the way, side,

Bernie Blegen

yes. Yes,

Genevieve Cunningham

from Our of Quinn question next Bolton is Needham.

Quinn Bolton

few this has There of the to MPS there questions gotten impacting just revoked? exposure Just earnings raised outlook, some across could because it's customer? any and season wondered wanted mentioned licenses I Huawei -- that you have to quarter, that being just I ship coverage. Huawei have do of exposure It's license follow-up not a obviously we've question. to Is been investors. you having to been in your companies a a revoked from near-term semiconductor quick I'd have that a guys address, did, but sort semi you potential the number real at If it ask Huawei? figured questions on is if

X Quinn, limitations, at all click I the are precisely, call to arrangements pretty have our I you with their a X If X Great. have in a always Speaker late to -- make was of no Huawei. now your follow-up question to subject simple. conference to will for we have limit as questions, license as this a button not talk Have like now... Speaker joining can quarter there or forward during thank there are the there under any license to that Speaker contractual business all, -- can't has raise X So conference export in don't -- Thank legal to not but X Yes, talking hand any you. will are be Bernie. Speaker our third cost below and you're of Speaker with consult far We licensing done we the to as again. whatever for further X Our Speaker Yes. Speaker know, answer far -- on nice look so they because as Do And the will have indication we us you more be October. our them please PO are it's I ship basis, -- export this again call, like likely which no we back I'd that to I XX-nanometer and Bren, turn product, Any would you webinar day. that a canceled. just -- relationship. Unknown over like not guess change questions, to any to we I or need it's are export them an X And think as question. of I right. Speaker

Monolithic Power Systems (MPWR) 1 Aug 242024 Q2 Earnings call transcript