VICR - Earnings call transcript Q2 2022

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

Operator

Good day, and welcome everyone to the Vicor Earnings Results for the Second Quarter ended June 30, 2022. Hosted by James Schmidt, Chief Financial Officer. My name is Mandy, and I'm your event manager today.

During the presentation, your lines remain on listen-only. [Operator Instructions] I would like to advise all parties that this conference is being recorded. like it would host, to I Jim. now, to over hand you And proceed. Please

Jim Schmidt

XX. afternoon Vicor Phil I'm Thank for welcome Chief am you. and Good Patrizio with closed to results President Financial And Global Sales quarter Vinciarelli, of months June This our in a financial for Andover press posted Chief Investor three issued Officer, the release ended Corporation's Vice on XX, ended Schmidt, and Marketing. XXXX. our Relations and press June today, James After been has page Executive release Officer. I we Davies, second the website six call earnings the markets and the summarizing www.vicorpower.com. of

no this involving customers, fact we Actual uncertainties. offer, results announcements light expansion, release. In I planned provided the differ listeners, conference on filed March and of today, purposes the Act current the statements Form implied of statements including call current available Safe is set prove contained SEC which this and various statements may during correct. or Harbor as management's a accurate and website. we is EDGAR and the in are X, may being you, will risks risks today. constitute remarks that conference The XXXX. no filed any to July assurance can explicitly Thursday, are the is press with and remind only historical for recorded uncertainties, XX-K, events during products, made call, any this well forward-looking those X-K undertakes after remarks of is and XA also remind beginning passcode Please as any growth call. our dial-in risks forward-looking Vicor in system potential from rely of by via statements property at I followed under to August to Securities materially, XXXX. also forward-looking This Form during the Corporation. call we and on press regarding The midnight XXXX XXXX document our face tonight XXXXXXXX. of on the the including information call of should today's Vicor forward-looking XX, statements information uncertainties profitability conclusion SEC's this note set we copyrighted the these as number relating statement be this discussed of . by through the not are this We call forth Item replay is XXXX. in and sales Except discussed available potential this matters spending today such update issuance Private for Litigation and make The be expected provisions call, X, obligation opportunities release. passcode capacity of of market upon and in statements today's and will of our A you call, for the also replay this Reform dial-in forth expectations XXX-XXX-XXXX

which focus will review a shortly webcast call, of today's available comparisons. market Investor for now addition, transcript website. developments performance, on a Phil after to take upcoming for you refer In with turn will our year-over-year replay sheet of items P&L a page financial Phil mostly of Form my change quarterly balance the QX questions. press I along release and to your will Relations and Patrizio, recent and the In XX-Q will I'll our sequential or on review remarks, be our I our and

sequentially, XXXX X.X% the the Vicor XX.X% $XX.X $XXX.X of prior revenue Products to increase increased Advanced million sequential in a revenue from increased first total quarter. revenue year same from second the X.X% percentage release, prior As approximately ago. XX.X% decreased second from stated distributors revenue the of stocking from for in quarter declined Products Shipments XX%. sequentially Brick XX.X% quarter million, while relatively at Products recorded XX.X% press revenue today's XX.X% of year-over-year. a and total quarter quarter Exports the as were sequentially quarter flat Advanced for the a

QX. XX.X% XX.X% Brick With decreasing Products of first of share For increased to revenue. correspondingly the of to compared Advanced share to XXXX. total XX.X% revenue Products in quarter

profit margin volume. gross XXXX. XX.X% continued Headwinds Gross of Turning increased recorded and from elevated result QX. to of margin margin as our gross cost of QX higher first supply impacting quarter sequentially securing including gross a we margin, capacity in in Primarily consolidated the XX.X%, a outsourced

tariffs, addition, QX margin and gross X.X% million at on be in to revenue. In $X.X continue of a drag

tariffs importation Our is both expenses. fees goods, QX in defendant operating by system broadly infringing $XXX,XXX, reduce was OEM a and suppliers context, scheduled an in the $X.X Totaling above plaintiff for of QX of to enforce million. to otherwise Vicor and connection licensing now procure larger chances reducing cost modules from to U.S. expense adopted and products in imports largely Vicor OEMs work approximately its vigorously ITC of by stop committed the incurred XXXX. I'll their turn IP. legal Vicor upcoming litigation. property is million $XXX,XXX a buying OEM These power total infringing Total China sequential case the as described R&D previously, with the OEMs from intellectual architectures due into increase by X.X% Vicor technology respectively. of providing continues. $X,XXX,XXX capabilities system into The to modules, and power unlicensed amounts superior for Vicor solutions. an importation taking the compensation are purchasing was infringing in of In SG&A in and an with to to average modules being quarter This products. included equity-based trial a October case increased has in developed first expense operating the from US. proprietary

an we Based GAAP tax operating XX,XXX,XXX. per diluted totaled was QX, million, a taxes for share For a income of to share Income fully XX.X%. on quarter were earnings $XX.X for income Net of QX $X.XX. diluted $XXX,XXX. recorded margin operating count provision $XX.X representing of the million.

estimate chain I mask control, or update such the occur. of manufacturer the our of China financial of caused about have COVID-XX has or pandemic we and such operated and cannot our are the absenteeism effects we now influence shifts influence performance adopted impact might are just influence unpredictable. practicing our negligible, as the essential much disruptions particular on of discussed risk Andover nevertheless three of COVID outside to and the our using brief policy because potential when of COVID our facility. a the the XX designated as manufacturing due workforce our our Before financial COVID-XX pandemic, social review results a on and zero In position, timing extent of previously associated Cases distancing the parts supply onset from continuously operational with are by in on at

to at one million our and book-to-bill Inventories, for quarter balance the with totaled short-term $XX.X receivable in $XX.X net Operating ended of totaled with XX a $XX.X million expenditures backlog. sheet. DSOs end to equipment. and totaled and flow current. totaled year for I'll from $XX.X the progress $XXX.X backlog Accounts construction of balance by We total days. quarter be and with approximately scheduled equivalents X.X% XXXX. million Cash, for and QX QX investments million sequentially year, cash reserves net Turning quarter-end through and reserves Capital $XX.X primarily are below $XX.X balances XX.X% cash came to X.XX. the increased of the cash for at quarter. annualized of million. the of manufacturing All at million at now one sequentially QX. flow turns bookings million decreasing address trade first and with spent receivables

Annual of to updated as fab Meeting June, nearing third Turning integrated QX. expect ChiP in we our the and vertically quarter is the completion in Shareholders we XXXX, production at

can the an As to recent overview efficiency and output ramps With improve questions. Phil our and Patrizio, I developments follow-up, your further of take in the the we margins. time that, gross many one ChiP have we Phil, in limited more you a get market as ask that will as I to we it can need provide will that of back capacity than provide limit queue. you will you and if related Please question yourselves available, and the to to up, necessary respond improve address. one then so Phil? to fab topic

Phil Davies

CPU XX-volt CNR CPUs. Thank their securing with for and term orders in a result AMD long as part form latest machine and center that and prior upgrading as as The build capabilities outlook hyperscalers technologies of our continue quarters, a QX well the positive, market is to backlog. the large now Intel you, their data Jim. out learning bookings, of racks

$XXX a over Our is backlog, are at up with of older just newer programs, mix million of that made and strong major ramps. beginning which their and HPC stands customers

in objectives the catch times. are and three customer with up two quarters next Our to to reduce lead demand

OEM. with processor market also solutions presentation the an processor are collaboration few HPC with we and network the have designs ASM, funded systems weeks agreement to AI our a upgrades. and based As in next-generation annual on vertical Since ago, automotive backhaul shareholders new and discussed working agreed lateral AI lateral a additional with in for speed the we

and important globally, of revenue transitioning tail as is to business new only This base plus strategic important portfolio, increasing customers Our business. is X,XXX goals. to our our long to not very cannot a mix are loyal legacy for products next-generation mid but advanced and advanced Many channel our growth our a ChiP emphasize customers for our important build I out to percentage how industrial short-term products product backlog broad increased also our product although to in legacy remain QX, our business. and based we our enough smaller overall long-term programs. fab of and our representing

customers shorter in capacity ramps production HPC major times lead volume need critical support scalable their and requirements. access with of to Our

vehicle In our an being Vicor's they chips automotive company-wide in manufactured also Our of rolled assurance out. platforms now that operational are in excellence initiatives conjunction world-class control. with under customers in first qualified facility power the manufacturing are automotive modules, fab, our need use full

the company company is Our heart pivot of from a this change. a more product centric to at customer-centric

revenue target. spoke call, to XXX ASM focused to set that $X us customers, I billion the the a had Sam's On get of of

the system the laser the customer with referred enable innovations. you. take now responsiveness, around to Thank will cost, power companies Such focused that set commonly delivery questions. the technology, across trust Patrizio, your will We impactful possible deliver on necessary most us highest I high the Jim RDC. and performance their to as world, solutions with of achieving to scores XQ more be quality, and objective this

Operator

coming is from begin. Everyone a have your [Operator will couple already session of Quinn. question-and-answer one we And the questions, now Instructions] first

is proceed. line open Your now. Please

Quinn Bolton

Congratulations you. Thank in Phil, nice Great. increase I little gave revenue. wanted of color But ask, on bit to you quarterly on the a bookings.

pretty looks quarterly it basis So a on declined meaningfully. bookings like

You can with what are NCNR perhaps the you subdued elaborate expect bit them orders not quarters, more sort see more. recover, you then in previous expect down first but better term maybe NCNR, start see you are quarter of work to a mentioned sure so bookings bookings to in little to the you I remain would you when do know the starting if as I'm those and September backlog? importantly, already just or

Phil Davies

So, Quinn. hi,

necessary non-cancelable, out way really because are that beyond was pretty some NCNR booking the is we non-returnable much cases weeks. XX across board So

customers I'm lumpy, it's, for not weeks high, are to up, orders bookings confident very Advanced placing quarters. I'm very with backlog. us guarantee backlog Our so Products, Very build and but at have orders and the XX concerned NCNR very lead being secure so their been big product their in to and obviously in out some there, prior strong they with supply large very times the us, all, able in about visibility at chain with okay. are cases

Quinn Bolton

the generation you perhaps Should I for platforms XXXX guess you would platforms year? that the orders under were this maybe terms some platforms this XXXX. investors a book placed next-generation year expect may about in about or talked advanced already those related talked that later NCNR you of question to that assume or next later ship for

Phil Davies

We're No. orders. seeing

programs them some timeframe, I QX. start the and As the mentioned, is of the of in and recent for new are ones and XXXX backlog those made ones, to will but all ship NCNR up

Quinn Bolton

back get in queue. I'll Great. the

Patrizio Vinciarelli

Yeah.

those on So you but generation are devices. bookings, were triggering are next orders if yet referencing not we for if to that, those booked expand solutions availability, approaching additional have

Quinn Bolton

Got it.

you, Thank Okay. Patrizio.

Operator

question is The coming line next of from the John.

is Please line Your now. open proceed.

John Dillon

give got freeing chain us enables increase, I help quarter. Thanks sustainable if capacity going to it Good your external it could internal you nice was you and to bit is where little what for my and color us a today forward? Hi. up or supply question get us afternoon, on was guys. actually whether taking was sequential just wondering that just more

Patrizio Vinciarelli

of a was of a It combination couple things.

the that we've investments in made us in think QX. capacity I did help

some beginnings package of technology, mount not So positive results particularly the from the plating process necessarily surface steps operations. the

did think, the and lot operations credit long have supply most outsource the and really drive We lift. revenue some team, get So of the operations our to against I part, still we some get in benefit as from with associated now, there. that that. there benefit have odds own our And lineup. John, we a to But was give supply continues we to XQ, we get bring headwinds hard to worked

John Dillon

getting QX new worse think I start with you should externally but place. line, or I of know any think any other better And had you. in Thank as your do we in headwinds. you could Understood.

Patrizio Vinciarelli

We've is supply. talked I've about Supply that still environment our tight it's tight. a operations to for very talked still internally, people,

John Dillon

I'll Understood. get Thanks. in back queue. Okay.

Operator

The proceed. Please Don. question is line from of next the coming

Don McKenna

following $XX it to was or determine I'm that's were any assume million. dollar quarter. it question, you guys. received bookings existing you the cancellations orders dollar book-to-bill the of value what with only up like of feel please out get for I could net value a to move-outs the case, you was orders, identify about of ratio new the your right if Hi, new that on in trying otherwise, the I Am orders and looks when Quinn's

Patrizio Vinciarelli

is really. higher The there that bookings order than our in were minimal cancellations pattern,

one think So I below backlog… said, as the book-to-bill was we

Phil Davies

far. that Not

Patrizio Vinciarelli

far that one. Not below

that number telling dropped order. X% the quoted on backlog the was which think by the by I is we opening sequentially

Don McKenna

Yeah.

Patrizio Vinciarelli

understand of [Multiple described, it So to plus is as $XXX backlog Phil which multiple best out way it's really the million quarters. Speakers] is

Don McKenna

was What how much received the you of was is, -- new Yeah. trying feel for value I what quarter? orders the to get the a dollar during

Patrizio Vinciarelli

as out, information We're within Jim bookings, has in detailed providing are not with the to quarter subject the a vagaries. Bookings to respect the past. pointed

they our orders and of large the next falling south quarter within are some of of necessarily trends. the So part long-term not the indicative

if at long-term months. our think to to last I is the want the right progression of the the inference with within respect parameter backlog, you look trend, draw XX the to key

allocating in quarters, orders to a orders with say pointed to ongoing, have place (ph) customers within the long lead that's is our very bookings where pattern and We times we've our of out, our to been concern. that's Phil constrained very, capacity pattern, the capacity and as been backlog the respect factor, now booking loss and with

Don McKenna

you. Thank

Operator

coming next is The question from Doug.

Your line now. is open

Doug Combat

under the switching final just two pieces I up new Have the are on was have moving guys. repeatable recreateable, so brought any these received kind or capital for litigation, I'm your confused infringing what equipment of of piece or these brief Hi, unrelated the Thanks. And impression a technology. I how but technology was the facility. forward, not creates then Yes. little questions. or guys that will you and litigations you requirements on guys gears, distraction the

Patrizio Vinciarelli

Okay.

will have some QX bulk to the effect But the Products. the facility being to is sold at installed the of engineering capacity capacity I’ll fact to take be the rate QX of we'll Jim earlier, first we federal and and the on working the that equipment from being Advanced benefited of and wait to wait new me that to us balance or in with we Let to capacity, fraction the of with then terms to have packaging QX have for the of bringing and in of lines of some stand prototypes. beginning applied one out are process their as facilities, relating so high start is lines for already within a of the a pointed production for in share equipment new in reclaim lion for tested production our state respect the

the progresses, this So that the production there it of the be going quarter happen, fourth all incremental will until the increasing will in as quarter path, there some be that for the equipment all of contribution to year, effect the but just QX. to but face critical quarter Products coming additional Advanced that equipment say, this production that will and next not production to is be to in with place equipment be in critical be would respect

Doug Combat

simple So [indiscernible]

Patrizio Vinciarelli

ahead. Go Yeah.

Doug Combat

with my sooner because call it of of an some obviously, nine for because you piece that every question on was eight, investor bit delayed been been quick guys equipment? in couple a facility years -- last original as little is there the a Just delay when I've were to that, of now that impression starting final you has those Has on equipment. guys pieces been

Patrizio Vinciarelli

think multiplicity no general and will that's of terms together bringing to very power first -- say this I that say way in generally, that's That's first fab, the much a equipment to what is is on of not it conceived, schedule. fab. implemented, of that pretty for developed, about complexity components major task given happened the we're has the of a pieces being

to products quibble won't with we whether respect respect QX delivery a equipment, may for our months it's production delay, be been both in remarkably of the on time, to volumes versus couple So regarding of would the advanced there QX, happen of budget. expectation. of on with with But respect

operations on team front. has very we're that executed So what happy with dry our

Doug Combat

was That question. staff. production the the you equipment, again about the trained the all not nature so the just transition, your efficient product, your to of delivery that I product, of just was you've guys start calls, of can equipment. questioning delivery get I'm how of my worried your not listen guy's you the concerned was how your I about I Yes, simply was of guys with started. optimistic very I'm some your pushing asking

Patrizio Vinciarelli

Yeah.

equipment the been of delivery has So much on schedule. pretty

some to this we're the and much and they time. different freight, phase, by are equipment most going had add be air because, bringing is in think that with would We're some perform in is is we've of has But constraints. was effect portions to of really the so delivered. products through quarter, in of late and next on And the pretty month Now due air part, new for and so, equipment equipment to would the commissioned be which the certain that or steps. timelines still We're lines the been the frankly, advanced everything rational to this up all costly process up delivered become now fourth continuing quarter. heavy ship in there I of and

Doug Combat

I And up? you the Terrific. new the time, be to could about don't talk that mean topic seems if dominate a that just popped to but litigation

Patrizio Vinciarelli

Yeah.

ahead we be in an So respect long-standing we've coming which IP the is a effect to defense, some aspects system And litigation us overall with Vicor the that play challenge. in months. And few we're terms return all there October. has have developed to investment components, do system mostly to gearing of more in the of in to for unfortunately, part technology, opportunity, other the has in up getting power on integration which important with had which and will behind of power meantime,

to Even the the Products, of as or wherewithal technical question, regarding the the past fringes, Advanced hutzpah, why have to there that. copy have calls, either infringement we part respect then right? to these So be has they the wherewithal. as the people with "carpet". our be nobody of discussed are, To clear your are if quarterly Let's hutzpah clear, we've instances earlier on in there can

Doug Combat

I Good. to what Good. That's hear. wanted

Patrizio Vinciarelli

place, our being broad that fringes, based the But imply is some copying of is that that the not doesn't taking product infringed. on aspect portfolio the it recent fact

to with Now to from might OEMs technology. we've the program you -- secure as calls, license quarterly OEM recall that, respect prior for to had in an Vicor our April

OEM suppliers the with would concern with not are then U.S. the our by value be that can of who is to components infringing for to they those components by way which adding actually that product, otherwise licensed respect power in So imported source Vicor

we our stopping of a litigation production any proprietary that to and strategy So OEM partners well technology. through asserting product have respect thought incorporates any of to in aspect effect U.S. IP in with the Vicor's

success had the we've program. of in Now terms licensing

on maybe evidence to to need that, success to chain. front. to additional supply do we in or chances have prepared not order ultimately, we that to that are in OEMs to as remarks, to expect to determined assert make respect secure We to need suggested closure as they agile what to the Jim's But IP capitalize taking whether with clear those provide

Doug Combat

Good. you much. them. Thank get Okay. very Go

Operator

question next from is The coming John.

Your proceed. Please line is open now.

Unidentified Participant

the hard stay on the house Hi, how quarter, guys. little factory, how but also Congratulations the at is really got you did whole this don't a know and little guys on I've of on but project. project first in remarkable. just my it of here target the schedule I it's and factory, all remodeling I for to know, it

chart here I the is forecast Meeting the the my with call your reference and presented, Phil, So you them. for bubble expected customers question for major at Annual to what

So opportunities? revenue is, bookings bubbles represent my the question or

Phil Davies

we're granular it bubble one to because was was on visual the get bookings got basically revenue, and on didn't of show we on. or really only it meant I mix the John. The progression say that always that -- get everybody customers, asked, bringing I two to of really chart a It's a as customers to both customers.

are that customer got out So lot of the the a market. is we HPC building answer in We've and customers portfolio no.

grow that a So really And they to time. visually programs. how revenue, then different meant it over bookings in was of represent showing mix

Unidentified Participant

growth linear, it going little or and bookings just the is because from clarity the that that going bigger? a would double back-end This is wondering or it So year is of is next to bit since loaded back-end revenue little it got bookings type be what linear of loaded? fairly That's guess to I'm a I great. and large GPU but thought, more expect a customer you revenue, maybe, I was kind be

Phil Davies

seeing I the and I think So in older little of a living what the couple in programs of programs. is some the say, existing I a we're with ago, of remarks now as newer overlapping quarters sort industry would mentioned, longer

So do process the much much there's Customers or terms still older GPU platforms. so and are you market, this, in that going of is -- change of that with particularly there in of delivery maybe taking those got still and levels. power with speeds, at content, the with on node newer memory intermingled higher you've higher of X-nanometer some that. then And the coming being technologies AI performance so on higher levels can performance

seeing customers, that number at we're So a of John.

Unidentified Participant

Got you.

So than like then line X-nanometer expect thought. longer product maybe existing the the continue little a particular product GPU sounds revenue their get that some customer in continuing that from that in you growth And for the customer? we new will new bit to time product,

Phil Davies

That's correct.

Unidentified Participant

Excellent.

more is as lead including and of you XX-week follow-up times question had you next the conference question last My Okay. $XXX is, call million -- were a backlog.

of assume I is the before end that the that all right? assumption that planning you're year, means that backlog shipping on So

Patrizio Vinciarelli

question sure of kinds we specificity. answer, not I'm that of a want any to such

let's So talk generalities.

expect the As into fact, Jim clearly speak. opportunities that did Advanced further been backlog. quarter come advances to, to in provide. capacity. in we a will a the appreciative we This particularly advancing operations have of deal products a quarter bear remarked, can in challenge. that fronts, It's the The number our designed made supported existing broad and this the good of last of with supported the a by of that the operational after of we in component brought supported And job as progress continue Products to And quarter trend be It's headwind be great the on by terms availability, fruition was that's guidance outsourced facilitate that team within we the is it can in. internal face revenues. major further are as by that, capacity

Unidentified Participant

That’s you back Thank guys. get I’ll queue. in Thank you. helpful. really the

Operator

is Richard. coming from The next question

is line now. proceed. Your open Please

Richard Shannon

bit to make about backlog Thanks question. may My sequentially. down their on? a a want here answered, lag here, may words was going with Phil's been customers have couple they -- Hi, wait guys. as just here in they sure current that extending taking but fair that. Is a Am number the ago, maybe you to of a understand just there of is for interpretation for Products generation some first assuming some of little my Advanced of correct minutes I that their I some products into mostly while be push-out programs have what's that using question

Phil Davies

I think significant that, chain right? on And it's mean, I equipment lots Richard, long fact their -- got and had backlog, they've lead on right those the is times there, building times supply lead of they've stretched out.

So think new I the X-nanometer that's And got then on piece you've a it. of coming big stuff board.

going So to a be it's mix.

Richard Shannon

are customers, they up great even proof Are get volume or before cycle degree? time to customers any for these and have can good or you about potentially interestingly, Okay. see place new manufacturing running, performance happening more that good new All Maybe some enough. with particularly of waiting of Fair a predictable looking and been already dynamics they larger to right. they facility this the talk are here delivery? getting manufacturing that new the and more and facility bookings, up

Phil Davies

over last able number with vertically service I that's and key mentioned vertically working single Anybody the why like on in right? and be we from got new programs to are show remarks, new you, great into being have to shorter so worry. it's us a regards facility mean designed strategically I assurance we've can With the don't that the we us customers us often to early having say, being of this. and That's integrated about and that's to talked quarters programs, important facility and supply some that eagerly that walk to factory are of great stand newer up these the sourcing in lead again, awaiting thing get times, integrated.

Now making there's chain supply us, to the huge weight is that risk integrated chain. actually supply the of in any but obviously, making materials of package, being a vertically product

Richard Shannon

enough. Fair Okay.

out going long jumping that bit get get does one my amount the to of able When follow start sense numbers up assume volumes at before [Technical fourth many iterations a this the little a got do new ramp, about to to early here like, How how your facility, a the iteration, to cycle that of quarter. you want. ramp in me like up get number you're produce take? that Let just would you out you're talking of of you I -- sense Difficulty] at the think be iterations, later. each here, I think that line you're and funds being as the or to see? also on times then question you performance least I I customers throughput and -- about product jump talking panels able major meaning to you And the that that going guess is

Patrizio Vinciarelli

be this we're end of the going So think I to year. by that in privileged position

continue that completed the that to to the to new terms of I They equipment And which They've will packaging. something then respect is X.X the the challenging dedicated the lines complete delivered, lines team get of because gets with done. aligned it's process to, and enable floor chemicals upper by again, be capabilities are of the we as themselves with on understand to balance will proven few effect, last that think the again, over years, that's without solutions place which, needs packaging equipment processes, the capability. in of glitches, facility, processes begun, our through and the of in taking overall doesn't the the months the ramp turned next has going of what sort having and advanced the already the [indiscernible]. that of the learning balance some to on validation in us equipment over expect been all has operations have

Richard Shannon

Okay. of line. jump Fair Thank enough. I’ll out the you guys.

Operator

The Please question next proceed. coming from is John.

Unidentified Participant

Hi, guys. two for I got you. follow-ups

then up migrate one first when next a that capacity? plating. QX is, question more think towards I sequential expecting advanced internal get and improvement packaging step is My expecting from and Are sense in two quarters. The ramp as you the you in away margin the over QX around you function your I you're outsourcing actually

Jim Schmidt

the of transitioning an we're John, We're in-house to tight extremely I still think think in environment to it way supply. production. about is

we of the what say and guidance coming to quarters we'd revenue think incremental and I is over the kind give. in is improvement margin advice would gross want

Unidentified Participant

be you quarters lead where Should back your more quarter do two little less? up in maybe or expect maybe we down once two times orders And to a expect then range and of from then Great. now? to your a Okay. gets second, to ramp back historical that again

Phil Davies

those start come I dollar Yeah. on as and programs lot for content higher, the a volumes ramp higher. mean of is new programs to are up,

So yeah, yeah. to I again the year, bookings climbing start next expect

Unidentified Participant

Okay. to you And where do two? expect lead in quarter or next be times the

Patrizio Vinciarelli

in leave that. question I think that largely we unanswered should that

inflection are of the in and forecast. rates terms very bit makes we interesting growth I at think it opportunity a a which point in business, to difficult

think that I able now be sensitive pleasantly to terms results. we're to committing in surprise want about we're of we and

phase at converter is which, happen, leveraging So what let's general long-lasting housing the terms, in first of as fab, kind expect get company, in ChiP of online of for package. we growth the not the its ahead of ChiP beginning a to

are currently silicon a the And in measured. the foundry process fab. for a kind not the with lot But way getting products is, in similarities. similarities many process it's wafers, panels which manufactured are steps, similar the to respects, So involved equipment shares of steps fact it in again, the many there's silicon in the

packaging next-generation addition believe lots advantage unique steps, the is partners I which will critical we up We terms have which (ph) will lasers long-term And performance game in step by steps have a and of I fruition developed to of of factor sustainable that that conceived advantage. earlier, what major technology come Vicor that to of two unique these up that about suggested firmly and in density a a some cost with equipment is effectiveness. give and into accomplish cost backing in

that paves long-term So for significant all the growth. way

to As At a quarter growth deliver within and not let's what quarters get happens. suggested we few disappointing what of earlier, after team to establishment after quarter marched that, quarter, revenue expect operations this see that. rate, that let's continue the into last we the wait our

Unidentified Participant

and good for Thanks technology luck on Understood. that guys.

Operator

from Quinn. Next question

open proceed. line is Please Your now.

Quinn Bolton

be vertically Jim, point? on fully to this my the you'll taking Thanks integration, vertical do or just early Patrizio that integrated the question. still you now still follow-up ask when wanted that think do at for Is taking that year, step think end you're equipment moves of quarter the sort or you in for potentially of into given the first by some QX?

Patrizio Vinciarelli

the going vertically will going quarter the the right? to done be get XXX%, we that There's percentage trust our as inquiry. by, literally look obviously monitor integration, needs always to to with we're of externally. advanced you definition, the substantial this line be XX% from relatively progresses, it in, never is if that we're which talking will, I'm respect integrated. But something So quarter we processes, way is of right? time be in third to the of at packaging, which XX%, to time, it if percentage, quarter, to By

answers fourth I way. It's end be XXX%, be proposition. different considerations lion's back vertically zero get capacity, that the get It into released where, ranging which meaning And progression a from deliver greater expect share of and as will a that is the lines is combination goal. time, effectiveness our of the suggested we essentially of [indiscernible] hope but not steps cost we and the a not of it, that perform we're a our we brought increments advanced fourth quarter the as the key earlier, quantitative quarter, variety to production to XX%, involving of get substantially to going one. As integrated, integration. question up the in process cycle achieve we steps, vertical of integrated. process XX% your the towards a in not as to get packaging going that level to QX, to again, This

Quinn Bolton

Understood. Thank you, Patrizio.

The programs vertical you of is bookings -- might able wonder receive Are question this vertical to started customer Have there? us have if for to revaluations? point? actually the update lateral solution vertical. I at you give still sort I undergoing second those be the lateral an on just delivery of

Patrizio Vinciarelli

what there or will, And the alternative we've had bus success some PDNs architecture with and So broad multi-phase the delivery. of back we stories intermediate requirements call that regulators. range success competitive had go capabilities, the lateral we've of range power converter, lateral broad called you stories with competing what's of, to is with and if a obviously,

you stacking might be nearly two thousand you then effect, call one, get, lateral systems without X-nanometer So packaging systems. on leveraging And years, applications you Those our architectures, that's supportive the of lateral. degree, been to amps. of the to necessary call scale lithography landscape involve last pioneers been several vertical and capability current But demonstrated at one for They we that's going to levels the to and leading-edge call of into spectrum, financed, going the and the industry older integration, in leading-edge wafer more most the intermediate our to vertical below are worked when will chips, they've to the part have another still with computing fully initiatives. have we a end require, get vertical cluster industry and soon are the even the lateral. get that some we At able kind the fully some become And vertical other been deploy. we benefit the of what they limited in technology. support gets XX as large up over it the comes PDN

very mostly a sequence, substrate to the it As side deployment vertical efficiency of of the to density primary provide amp in amp, terms let's the even say, PDN difference but order current in provide enough range. relevant vertical necessity, amp, requirements you deploys Above overall on X,XXX the and ramp. component necessary a because current can current amp level, lateral, that range. That's of lateral X,XXX of a of typically the one-third the, a isn't bandwidth is systems the the a the system for the component X,XXX because by and imagine losses makes in is becomes total and from system substantial other vertical vertical still X,XXX capability in power lateral

with the range broad from it, well. powering, as capabilities, and to ranging a much speaking, to, generally lateral amp, that. becoming to So no of our and the vertical, and which that with XG applications level vertical get the as is the requirements as wafers past amp XX,XXX pure when pure And you XXX,XXX And well get the those going we're X,XXX you lateral amps, may vertical. to vertical evolving say, to get range on consume thing with current alternative lateral, have And of you above as to of performance amps, technology lateral again, vertical. becoming let's X,XXX of which we're in a forefront is, in there higher density then necessity a that is effect, landscape lateral

Quinn Bolton

I a just guess maybe clarification. quick

out? to On expect the lateral go next X,XXX early that is vertical amps that something for to year further you amps, or is X,XXX into production

Phil Davies

stage, that next to call in hoping sort second solution early That's that in, would half of get I we of year. and development the it, probably

Quinn Bolton

you. Thank Okay.

Jim Schmidt

all and operator, our to call, we're for the the to that's ask now. that call conclude think everybody for I the time tonight. ready joining I'd like thank

Operator

call today. everyone. That conference you, Thank for concludes your

your Thank and disconnect. enjoy joining, now may you of You for day. the rest

Vicor (VICR) 22 Jul 222022 Q2 Earnings call transcript