Earnings call transcript Q1 2023

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Operator

Welcome, everyone to today's webinar entitled Vicor Corporation Earnings Results for the First Quarter Ended March 31, 2023. My name is Trichy and I'm your operator today.

During the presentation all attendees will remain in listen-only mode. [Operator Instructions] I would like to advise all parties that this conference is being recorded.

And with that, I would like to hand over to Jim Schmidt, Chief Financial Officer of Vicor Corporation. ahead. go Please

Jim Schmidt

with afternoon and for Good I'm to Corporation's Vice in Vicor Schmidt, and Executive Thank Davies, Phil first and quarter call Corporate Andover I'm and the Financial Global XXXX. Vinciarelli, ended earnings Chief Chief Officer Sales you. President, Officer welcome Patrizio Marketing. March Jim XX,

has the the closed today, March summarizing Relations for results financial months our markets we ending release website, on After the This XX. been page of release press our Investor issued a posted three www.vicorpower.com. press

Form also filed today We issuance the of press a X-K related to release. this

call, may I property forward-looking of purposes safe call of historical conference you of statements is harbor copyrighted I current well events and and including and forward-looking the matters this Private expectations for opportunities, Except provisions Corporation. are call, Act expected and capacity discussed information and this call also products, Reform remind is contained growth, sales for risks customers, management's make remind market statements Securities constitute listeners profitability, potential as expansion planned Vicor uncertainties. XXXX. we Litigation various in and our for and involving being this potential on this remarks regarding as announcements under recorded this during statements spending any current

that our SEC's XXXX EDGER available filed This Actual no which we our and/or system In face February will document prove the forth uncertainties, are is correct. any light today. of and in with of explicitly be any differ may results on remarks forward-looking XX, statements The assurance XA materially on we risks by discussed uncertainties can XX-K, offer the we risks fact of to XXXX. Item website. from Form via implied the set these in those SEC and

And including replay forward-looking should conference to not upon Please such XXXX. statements XX, as Investor statements available accurate this rely no call. update the Webcast Vicor today's statements today, obligation website. undertakes of note will of the you during be after during information this only is our provided Tuesday page on call. any the call Relations conclusion call of this of shortly April made

a Form review to which, sheet I on will market Patrizio, financial Phil for developments additional turn QX remarks, information. I mostly refer performance. changes your your upcoming my and or now to After of XX-Q balance sequential Phil review questions. our our the and for P&L press recent I'll and quarterly will take will In focus items, and release

release, As quarter revenue from Advanced Products down million. revenue recorded stated increased today's million. $XX.X the $XX.X declined sequentially million, $XXX.X from quarter million, to total $XX.X XXXX but million, sequentially, while first the quarter up total XX.X% XX.X% in press of of of Vicor XXXX revenue XX.X% a for of of to first sequentially fourth total Products X.X% the $XX.X Brick

to our due distributors increased Advanced partner. XX.X% constraints The at Shipments was in year-over-year. revenue Products manufacturing X.X% and primarily outsourced sequentially decline stocking to

but increased basis, as from total quarter's to XX.X% first Exports revenue sequentially approximately dollar for prior percentage decreased quarter XX.X%. the a on slightly of the

correspondingly QX to total compared fourth with XX.X%, the revenue quarter For of Products' of for Products Brick of decreased share revenue. Advanced XX.X% total share XXXX, to to increasing XX.X%

which recorded from we've the Turning is profit increase point quarter. XXX consolidated margin, prior a XX.X%, gross QX to gross basis a margin of

revenue. volume the an a pressured did gross sales percentage of tariff in benefit gross lower While rate we as from margins, improvement

$X we recovered million in paid duty previously quarter approximately drawback tariffs. of the During

continue paid and work reduce previously We expense to to recover overall drawback. tariff duty

equity-based approximately legal fourth quarter respectively, and to million. sequential to primarily was for and XX% totaling of fees. from Total reduction the QX operating $X,XXX,XXX SG&A expenses. reduction of $XX.X in goods, million. total R&D decreased $XXX,XXX sequentially in a cost was $XXX,XXX, operating $X.X QX to included expense turn now XXXX compensation due The The of amounts I'll expense

For income QX, representing we recorded operating of of margin $XX.X an million, operating XX.X%.

earned a million, for provision the tax representing totaled for share of we to tax Turning on a for X.X%. more based rate $X.X $XX.X GAAP increased effective approximately the same diluted a XXXX, QX quarter fully an in taxes, sequentially, diluted year ago. than XX,XXX,XXX per quarter $X.XX income shares. EPS doubled of $X.XX, Net million, XX% was to earnings income in per recorded diluted from QX of share and quarter Fully count of fourth approximately $X.XX compared share the

cash of reserves balance million DSOs turns cash cash $XXX.X at X.X% for Accounts increased to totaled quarter-end $XXX.X million reserves net $XX.X were million Turning sheet, to inventory at and $XX.X for XX in sequentially the our receivables days. million. QX. trade operating totaled and equivalents flow cash capital Inventories totaled net Annualized flow receivable X.X, quarter. with

in progress $XX balance approximately $XX of expenditures million. spend. with manufacturing with for quarter totaled Capital the for to million QX primarily construction We $XX.X approximately million a remaining equipment be ended and

one a and I'll XX.X% now million. address year below $XXX.X came book-to-bill bookings and from backlog. the decreasing with backlog prior in QX one quarter, posing

factory Turning expansion. our to

we final our pieces integration received equipment vertical of the recently necessary of complete new chip expected, fab. As to

and Through of will runs During conduct our chip of production. a then the complete qualification vertically to manufacturing commence month fab we integrated expect using equipment. May, volume July, pilot team manufacturing this

key breakthrough with be vertically a in chip outsourced Vicor's superior Vicor marks necessary still has to in deliver power to be processing, our This across aligning technology the power While density. of manufacture history, integrated will in first QX, capacity invented our we the milestone design global modules. there process fab to all steps manufacturing some the expect

anxious to of provide last times manufacturing reduction we customers. consistently efficiency, this the time, substantial full are control leverage cycle quarter, we And will fab to improved the we shorter that chip and our in looking As said completion are our forward and to allow. to manufacturing more facility

to improvement overall modest and results, approximately results we moderate of a in as we Turning including flat expense annual merit operating expect process. to sequential our potential a a XXXX, with be to in the sequential increase implement QX second for quarter

Patrizio, overview as take your an a developments that available. market Phil ask recent and you up will then With will many the that limit we related of and respond can question of you I that, to follow provide time one limited questions. I possible so and to yourselves Phil as in

have more you please If back the address, get Phil? topic than one to queue. in

Phil Davies

we satellite milestone OXB the Boeing a Thank powering the announced was market $XXX This Power launch the while. power on with on for XXXX, I'll by improve you, demands business chipset that satellite power tolerant satellite signal environmental modules our critical opportunity a update integrity, ASICs. begin customers applications, while which Jim. In meeting factorize proving for discussed was space December initiatives other of us, building development and communication with board and quality we space of and market radiation of haven't Vicor's customers. density, communication tough of to Boeing's a available million and heritage that up efficiency Vicor other opens could an

high SOC, a modules, tolerant processing input and being for which signal early applications. Our In radiation first and space satellite versal AI initial adaptive and for will voltage chipset grade we AMD's additional QX, applications. space is design bandwidth delivers reprogramable critical for inferencing, reference introduce funded and customers other with output

distribution the papers power World Vicor architecture. solve event power presented to in Congress Detroit power adoption and how systems, of last XX-volt Turning on our increasingly week, At opportunity. Broader four distribution the are XX-volt power in the challenges automotive delivery modules toughest transitioning bodes to electric for our us. market a vehicle which conversion well power

innovated for power Given systems and that power developing is architecture Vicor proprietary over topologies, distribution around highest has the XX packaging XX-volt deliver solutions. networks, years, and XX-volt density the one and pioneered to patented that control

QX, and agreement and a at a X major we Tier applications. at our with and platforms our booth design on expanded existing collaborations pipeline presented design expanding chips wins. OEM applications WCX signed a supplier The additional our wine Tier at OEMs X and foundation with and of and display had In

power built SOP power designed and to are XXXX. also win to major systems three collaborations to also an We modules power our times power with of with QX. qualification several for smaller silicon switches. started our lighter in carbide a track We be level with were of than modules, new DC-DC automotive High date added XX converters voltage and three on achieve design or proving GaN

chatbot traditional saw market computing the capabilities introduction and hyperscalers search These companies artificial completely media social to chatbots, large satisfaction market using high globally. masses language AI than for models, the have new the performance higher the up QX, of customer new much AI open of a at stimulated In intelligence have significantly and engines. systems areas which

introduced. density demand of increasing levels A vertical being PDN these operating Our used current lower Factorized the losses to as and exciting this generation technology are with are rollout higher will lower new higher solutions performing processes voltages. and AI power next the processes solutions power lateral that current and provide

commented which Lateral loss, full processes from factorized using PDN I the being limits last AI achievable call, performance reducing solutions high the by PDN and power new our losses. enables vertical processor As market introduced lateral processes to hindered five-nanometer are in potential with otherwise levels. conversion power of

generation processors changer Gen major generation our will or of development VPD multi-phase progress solutions On industry on would otherwise that by for which power scalable, this next be to schedule be effective technology game for and vertical cost technology. the make year. is point delivery power conversion the next a product X handicapped the These to continues enable challenges load of front, and and enable excellent customers introduction delivery,

opportunities, are Account capacity, all introduce and fab to of our customer initiatives visits as new to requirements XXX summary, visibility rapidly accounts our expanding engagements intelligence In operational for setting top chips. X our power superior managers and system electrification, to across our are Gen customer of capabilities for top expand. our excellence the part as units up seeing provide XXX artificial our chip our and of to and major business to four our base scalable target autonomy, QX worldwide QX customers them

Patrizio, questions. to now your I concludes now That Jim remarks. we're will and Operator, take my ready questions. take

Operator

everyone. you, Thank

is will ahead. Instructions] Please now The first one Your of from coming Quinn session go Needham. begin. question-and-answer Bolton [Operator

Phil Davies

are there? you Quinn,

Quinn Bolton

Jim, Phil, can Patrizio, Hey, me? hear you guys

Phil Davies

now Yeah, can you. we hear

Quinn Bolton

Okay, okay, perfect.

lateral out vertical quote timing, vertical recent sense us do will bookings advance until PDN, or start that that Just those press expect solutions. move Can you a of or just release, benefits lateral to with the in eventually the do positions? remain may expect calendar you give XXXX, clarification, going capture to AI Is be you of 'XX? OEMs some wanted to from with weak ramp when to

Patrizio Vinciarelli

could this year. next of year. We degree when It high happen don't know this in It of confidence QX would happen a with later happen. could

Quinn Bolton

you Are expecting I last wins, trends wins Can design And talked those think, X-nanometer fall, those your this six or you year? ASICs different or say just vertical? [ph]. of you've Okay. using five lateral other wins or you solutions, about some roughly seen sensors

Phil Davies

have some some interference language, We seem noise. background the to on

Patrizio Vinciarelli

understand of it? You most

Phil Davies

Yeah.

that what vertical ongoing So processes we're with then yeah, or we I that talked technology. that also five I with believe, we about current Gen with companies time about wins And think lateral to lateral have solutions engaging require design other vertical, higher or was last pure companies. four have X will that even

lateral there's to of lot year the I nodes pure and through will year. with market end portfolio going vertical right process into next happening of So current part be in a levels. vertical different this But expect and actually the we different the now -- and

that? get you did Quinn,

Patrizio Vinciarelli

a be connectivity to appears issue. There

Quinn Bolton

I if a Yeah, and that dial if see see I'll try in and can helps. phone on

Patrizio Vinciarelli

That's Thanks. good.

Phil Davies

next go to question, please. the Let's

Operator

question also Thank Please, now. you. Please Jon from unmute I yourself your ahead is go unmute will The from next question. end. Tanwanteng. your you coming with

Jon Tanwanteng

your these are customers compared of competitiveness about you specifically, biggest what market? a is, one first stack, to in your telling ago, product My year

Phil Davies

competitively the Competitive okay. back are to us stand do vis-à-vis we with telling of customers What this what -- products.

Jon. So

important think we ability very of the that the the is is at of density, which multi-phase lateral clear product, is the of be vertical that, density not And still levels the it's advanced but to are technology at product. with I So very terms thin. current the in that it's in

thin can you the that So a to of the you very, on any in very sort application. back GPU board of package type ASIC need have place CPU

one. number that's that's, So

dramatically game high with which is that for that focusing we're in with about improvement the majority X technology, think now, GPUs, power changer spoken current a in where the our here Patrizio also of to of terms things complete development the networking Xx I is optical product current backbone and density processes. that's regards changes Gen delivery

lateral is that's looking So a But what superior multi-phase to currently. lateral we're approach. at vertical certainly

Patrizio Vinciarelli

power products, the first And we Vicor It's frequency. been converters, years. introduced inch density took as as persisted major to suggests, key our terms about at density, decades. nearly not watts which one applications, cubic time XX-XX inch, a much It's higher demanding When the about about base, take per in for of figures, lead current XX in to leap were just operating its forward. four at is cubic Phil

Jon Tanwanteng

And we why thought Can you little coming when solutions be. lateral give a is Are Patrizio. more expect those to maybe you're Thanks, your just more for more the that and you would the the And before a specifically qualify of to a the you ramp ones it? just orders they're facility Got waiting color product on status bit solutions? us timing it orders? customers, that situation? new to little maybe vertical than your waiting they for using maybe simply in? are Or regarding it reasons giving as delayed of

Patrizio Vinciarelli

space the product is changed they amperes very been to case to current up architecture it to needs processor, has reclaiming with real power architecture? PDN dynamic requirements do socket of microsecond. of to Many up in changing in PDN lateral with that challenge, vertical. the the Is the XX,XXX this to bypassing this keep historically distribution some terms or capacity entail in effect it from of network processor the which itself, changes happen So, quick need per facets within to what

is all to is management available. now, make to a And the fruition requirements in that of the that OEM to it this of generally meets story solution of our easy a not a there collaboration constraints between that not a application dynamic aspects how Vicor short, as an combination this, is making requirement. mechanical with challenge PDN long managing the the know thermal property happen So, complex of that other and within transition is close bring and intellectual requires, the respect concerns

And driver's that major -- building know is But with scalable, this of faster process. it been of advanced a how a more with advances the tedious become going and is with blocks, that this available, bit while to be going respect architectures. is obstacle seat XG my the has to to adoption is the for as designing. of much One XG whole and and in more OEMs the their is are a to now, opinion in of process

Jon Tanwanteng

anything Great, random it's like work? a not waiting for you That's and issue are that or thank that. facility just [Indiscernible] the

Patrizio Vinciarelli

XG No, lot stacking but regard of blocks, XG, with full functionalities with vertical got a the away be can be entails done can done to way. or as certain with Phil much doing facilitate suggested in relevance doing it density it we AP, higher cost which Vicor and stacking earlier building it's simple without vertical a leveraging with chips in complexities VPD are that XG terms very of to but effective

Patrizio Vinciarelli

Great, thank jump in I'll queue. you. back

Operator

ahead. I Dillon. the unmute from your have Please end. go yourself from will John now please line also we unmute a of Next, question you

John Dillon

lateral on with or particular technology And have lateral on this Are the at planning that that vertical, XG And you next a stuck out also year, are vertical? XG. you lateral with I on vertical? also color for in looking doing question the that is your still little year? XG that a would us the give customers can also be

Patrizio Vinciarelli

as modules? our blocks. based now -- is, expanding with of XG incremental Before will module? vertical by existing lateral as is on for activity activity and building But design still any module, level XG activity XG enabled existing of existing be of XG So now long, still, too XG

John Dillon

expect opportunities, year, this go And then? them production to to as module later you do XG

Patrizio Vinciarelli

silicon could the waste the production within of perfect be on could power XG its in or loss There in significant level visibility. of of be significant the solution itself. of lateral with with PDN, production have vertical that production ramp the Well, again reduction ramp PDN we in using within level don't modules, the because capability, improvements it PDN and ramp

John Dillon

might new what the you some saying? that the come still you're XG year? opportunity so have second half lateral Is Okay, of to

Phil Davies

Yes, John. That's correct.

John Dillon

on kind any maybe that? year? have that guesstimate you do of is timing And the year? next is also again I of mean great. Or this that Okay,

Phil Davies

earlier. be I progress. we'll think making little a but all we're through working complex, good -- bit talk It's John, this Patrizio that complicated, future put stuff. able it we're about more in well, It's And to calls.

John Dillon

we've Okay. term Patrizio, we've for some end, My Vicor I've being you XX a you positioned follow you successes, reflect only lot years. before are Am long question is, But been of with And successes been? growth surprised setbacks? consistent views we've positioned can't you before. today. I back up And invested setbacks. for better that about than But had than had are in and different the you correct again, the now I've from where been had makes also past my I that what so, if when then it plugged I better have remember

Patrizio Vinciarelli

a very you question. Well, tell that good I way. I feel personally, can that's

terms think why I articulating, that of I feel in way.

the of as to press think combination suggested release, it with has in a I do factors.

of of is very applications to levels, provides that in it for low ranging foundry costs, close from in nothing kilowatts, comes that chips. pressure It applications. very terms low can up we power very First in the cost to scalability all, global of first enabling volume, close come to automotive it close. There literally is hundreds or are

hundreds an GPU multiplicity X,XXX So or for a for it's vehicle range current of in or whether kilowatts on amp in XXXX charger multiplier, future several the rails or CPU. a of electric a fast the amp a

solution, data cost. us the centers as sees package he is do or that The so type power provide the but application, housing power the enables to the lowest AI just to with case capability them foundry density for not gives way foundry be, us may unique convert current chip density highest

going not essential we're the of necessary seeing infrastructure to take Vicor XX-volt has full itself pioneered. to advantage of adoption of So the the ingredients general any that

we the where simple of So are. story that's

a that as about $X scalable foundry. that a like, it capacity whole, invested house know, us $XXX deal focus historically, foundry as to package, to the is that And complex that hasn't we've in itself, the the puzzle of way systems, ranging there's understand I the of facets about of unique the upwards converter packaging conversion all for million terms to this underlying revenues. technology, about been taken from control you wafer methodology, components, is give a bring in easy great bring billion power in engines, of for

So the simple reason. that's

we're well high think market. We density current density, in of growth positioned the power demands for for market and a high variety

Phil Davies

thing John, quick I could that So, if just a one Patrizio add second said. everything to just

I think have a XX-XX my from of customers we're years, quality now. that the like tenure that never had engaged with, we we've set here

really couple four plans customers they the range that that's is we're companies, you to guys. globe. working critical can't be of with the across their So future and long developing to those are just revenue in hyperscalars be with hold now got in right engaged for business and the And who across a it with? big markets? performance right high for or what It's customers are Are leaders GPU compute units right great

that add to just So Patrizio's comments.

John Dillon

with seems you've got it, it. one it's server nice then they get cost to to to market a X it Gen have to huge now performance I sounds go card had because be need it, exciting, commodity which you've from along the the lower product, combination on your sounds always it the really to competitive customers opens can you cost is even view. the level, not of top actually have. that and really And a me they need up very But have competitive a cost are performance, also and And your like card. the which down like Yeah, of where is

Phil Davies

and critical vertically that's integrated Yeah, the really Patrizio right? factory that us, mentioned, for

John Dillon

yep. Yep,

Thank get the Okay, you so I'll in back queue. much.

Operator

you. Thank

joined an [Operator phone. I a Instructions]. a have participant from question anonymous will you via Next, unmute who we now.

Patrizio Vinciarelli

your hear question. can't we Hello,

Phil Davies

unmute Either star there themselves. please questioners, holding. six to these to is remind hit Operator, delays have in they

Operator

side their from as well. Yes,

Phil Davies

let's the next to Okay, then go question operator.

Operator

right. All

Jon Tanwanteng. from question go and ahead yourself your unmute from as another have well. Please we Next, side

Jon Tanwanteng

follow whole? that the up. inning migration do as what is, are a for seeing your much XX-volt question Thanks centers Phil, bookings My play out just What are data you in How and stand the in we we in? pipeline? today

Phil Davies

in that hyperscalers seeing boards, are rack In native to this meantime, waiting are we've XX-volt bus that so up the levels basically the requiring the native But we even developments hyperscalars power necessary America and these whatever into on for in XXX-volt XX-volt Yeah, rack MBMs higher. of for they overseas, advanced now about sell we've definitely the AI datacenters systems. are distribution distribution. the the And XX-volt volt supercomputer been to --addition with of other converter. range the systems. level because It's talked buying chatbots, native the high AI power for North also the at the the area, where voltage our do power it's we XX are working incorporating

And, levels with factorized we XX and to load XX. up, going John. downconversion low processor. power point So the optical ASICs systems, for CPU either GPUs the just the or power network then power And for high technology and of do very to bus power the have converters the keep

with really that no well even be and X our this to migration with coming able in being customers ahead solutions and setting So that Gen year. we're along later technology and of follow

Jon Tanwanteng

the gen power that One uses it? CPUs. your level run to Got AI last power levels They're been market I've solutions they're the surprised the processes with they ever your the it. approaching are thing starting product Do see next CPU necessary to your of that is consumption the that -- total going at. to finding drive the you just generation use

Phil Davies

with XX effective, think actually be who dense. for rack us. knows, higher CPU applications to Gen -- opens cost direct lower And as up Gen CPUs even power very maybe X I and goes XX CPU X from volts Yeah, power very the can volts conversion

market comes that X as well after when along. go to Gen going we're So

Patrizio Vinciarelli

system But high-end mistake, make system. any no today,

system. GPU power cannot powered power by limitation allow system. high-end It the compute capability handicapped because the XX-volt say PDN of its to deliver of is Let's

Jon Tanwanteng

constraints the in continue I'm If Understood. to QX happened us to that is of quarter compared what you be? asked they've the in spotty just it supplier? color know the give the to was and the I going your what going quarter, been to caused pretty where as a question thought little on past, to

Jim Schmidt

Yeah.

And stages, said, think, we mostly we're the partner, John, function now which final outsourced bringing in the so I it as we're the a was is of manufacturing production in-house.

So, in some cases, the the supply output. to we for wasn't needed as prompt it as quarter anticipating the

June-July -- we're we're described, the I qualification, as so into and equipment May and So, we with now brought qualification, facilitating made in.

as generate the third output to our quarter, need. I clear we'll be So we ability we about think get the into

Jon Tanwanteng

great. for what's tariff to the continuous forward? these of really then think one and be kind expect about kind backs And Jim, we was claw follow backlog you go spotty more Okay, Do in that, up. unpredictable. relatively and to you There then How just you as should claim? of

Jim Schmidt

of we're the bit back because That's tariff of can, amounted same the And two of it'll our level then a payments. basically down we In throttle short years we've ago worth what term quarter. kind sort expecting anticipation. the been clawing for

down further the that'll -- over come the year. that'll of course So

Jon Tanwanteng

Okay, great. Thank you.

Jim Schmidt

right. all Okay,

question. Next

Operator

line. earlier a the have through was the Yep. about phone person again, And have question we to who

with So I please your question. unmute state our you six. go and will using ahead from your also and unmute end. yourself star name Please

Richard Shannon

Hallum. is Craig Richard with me? this Can hear Shannon you Hi,

Patrizio Vinciarelli

can. We Hi, Richard.

Richard Shannon

time. for was Excellent. taking the make it questions able this guys. Thanks in I to I'm glad

Patrizio Vinciarelli

We're not drop trying to you.

Richard Shannon

happened, of have my you're past when my about of how that ask here blaming skills you been the starting input to couple and A in about a want understand to I with those think a in of to particular your guys. you I questions, seeing including Quinn's when kind complete phone was not inflection clarity to of points that. follow kind few on that. up different characteristics response has guess don't

of the multi-parter of like let and it kind I gist what here. ask this read think So is to, me gets go my you of question a on kind

whether completed not be, I'm are will clarify accelerator are and So Or But flight. these lines, them you those AI be type like exactly when time? in that either characterize the that please. and dynamics sounds could designs designs still just are the vertical. they haven't sure done are could are applications. lateral with assuming kind also with just of that greenlit help these Maybe been here, among at

Patrizio Vinciarelli

you So in working point of different AI all accelerator car with They're number, a we're out as stages. companies.

Some more are of this early later year, in early year. are Others them in advanced later pre-production, and others qualification that actually got of also this on ramps then be sort going year qualification. developments like will next are maybe

going So it's Richard it of activity as across lateral is well. mix some most of on applications, then a got but the board, vertical really. it's And And lateral. we've

Richard Shannon

of maybe top-down about what what here. kind have, a here the I those missed which all you of kind Okay, to functionalities comments many of But I'll designs, is ask helpful. repeat and may of the how question perfect, that you designs Phil, have, kind do and in said update last you here latest is about us again, Needless asking automotive an in quarter. two-parter your give here here. maybe And the may I have

sounds to about release expect is Your are talking timeframe XXX functionality the which applications of in this characterize comments that on up like press revenue, to clarify, And apply Maybe even supporting material 'XX to them. kilovolts, what calendar just accurate. seem EVs. kind inverters to

Patrizio Vinciarelli

was And kilovolts. not that kilowatts,

Phil Davies

right. module the the scalable most So, family forth, that about of power up bringing a we that technology, the we that's you making as at look because very solutions we're if before, showed, basically talked chipset this is

so to XXX-volts X-XX-kilowatt, to scale modules it you have and You system, XX-volt add to can a more then forth. kilowatts, can XX-XX and

automotive Tier So, so. also so X the of that's OEMs. now And that loved we're really working with some by the

to XX XX, XXX-volts the XXX-volts go to you to volts So XX applications then XX. XX, to XXX to XXX or are volts to XX can

different So, that power can types platforms three two we that of in car offer use or downconversion that modules. capability

XXX-volt with XXX-volt for kilowatt, the other you onboard like an that's system charger a converter mentioned the side, bidirectional It's Patrizio XX% efficiency. buck On rapid boost, XX% if XXX for charging.

hold your that it If module in it. We achieve kilowatts plus you it kilowatts think, can palm get was showed in I can and XXX week, the and the we of WCX of form a last at actually hand in have. XX you stack out that

Patrizio Vinciarelli

some stack any the modules down density of a and in better OEMs, now three going is competitive going with five down than terms times four right to of alternative. volume that with literally weight modules five to modules, In power

Phil Davies

QX agreements that major I a mentioned years in applications charger expanded we almost example. like wins supplier and onboard working with additional platforms So that Tier Richard, with design a X. just OEMs here new we with the two had We briefly ago, again, started signed

in major also We wind from and have earlier. a my are the new with an three Those collaborations comments SOP design XXXX. added in quarter,

globally. Xs. with also very all to got XXX-volt downconversion of these or that wire a OEMs companies. levels or And at high XX We've with number XX. collaborations XX downconversion rapid to number to of now going charge around XX XX then XXX charger XX power applications harness in a then quite And them on onboard volt Tier But type of also centered systems

Tier I'm really very it's in We're high-class engaged it. I It's exciting. a level really, with very a mix. quite it's said now. OEMs And excited So as of before, about a Xs very

Richard Shannon

of lot A Okay. detail unpack. to there

some I got good notes think there. it

though. very I jump you out think here of guys. much Thank I'll line

Operator

can head go yourself We from from The unmute Campbell. one now, Thank unmute over. you Please please next end. your now. I will is hear you also you. Doug question

Doug Campbell

you Can guys. hear me

Phil Davies

Yes.

Doug Campbell

Hey.

Okay.

quick of questions. Just a couple

broad you I handsome Patrizio First was was of Forbes I pretty of the on a Forbes it explained talking obviously, a span was well all, congratulations thought And article. well. well. great and a thought thought written of it to people, is it publication. really I see great photo you as the story to very

So congrats on that.

this to I only say drawn being and enter factory backlog this zero, of guess new with all will And as with year. new just we you of down? timeframes the transition not eliminated but, in the QX-QX. or backlog the that my drawdown being for till kind viewed want I don't in is question see new in year August, timeframe. above be contracts. at of the online to backlog pretty as a you've the I've point. OEM the given products July, the significantly I mean, some much Do

Patrizio Vinciarelli

terms some of parts what respect to the It So going in of low really is exactly believe programs, ramping, these improvement bookings, believe a backlog. is the in it's with with of the in to sappy QX, happen. to we hard start But going took happen an of we tell the that control. improvement with because place to what's uncertainties QX, to can to for respect exactly year point in which expected. But QX further

Our QX in revenues in with be catch backlog. even we're up to still catch by QX, the going were And backlog. We're not respect to up. limited playing playing

given customer at of of one short the in on looking in back terms apple of is the quarter. bar, term, the the not stepping taking way the the monkey operations, processes, within of still up of a a end needs, it, getting of the fact it chip care So which the was terms back the the challenges the to some sourcing front of being though of in month, in without still on is end is business

Doug Campbell

to going when was new you control into next I heading be projects are investors, it's that I in so I not problems, the you before occur can produce was we're not guess maybe house. guys things. in to QX, about about. to outsourced I'm Because because have tired be, you the two say, year. I know drawdown seconds manufacturing hearing guess, guys game of going you a to new believe Well, to or the I I'm changer. thinking everything this, counting going orders as going talked

next was for the So bulk thinking I the for of revenue the the quarters that I that come out few backlog. significant it's I do realize was would of book-to-bill.

pretty improving. quick. X.X let's going don't specifics, X.X. significantly you is below What one down stays, that below get backlog to I if but we're know it Again, draw to it's say Is

I potential all great and And about any the yet. But your conversations you to have recession these me is hit mean, little a seen these mean, all industries also I makes economic everyone's to that it pointing customers. talked that come it. hasn't antsy, plan have of we've your about forecasted weakness and online. great ever most That's or before? So

quarter flow of if I expected. a recession? guys. 'XX, I'm also also mean, the have if of be there's can't for you're repeat wondering that, Microsoft's about certain the we was And deep better predict -- of macro. OEMs will order but have I a about where great it these getting a Do any certain the larger concerned today, how any I'm period a than from I'm QX do recession was concerned of you time. feedback we off shut just know

hearing. So what you guys I'm wondering are

Patrizio Vinciarelli

a I the to diversification, diversification still not about of infrastructure it's as products, Obviously, degree predictability. certain these markets, with have feel I'm these because the there. end of for converging are respect the distribution. So diversification fab, the XX-volt an cost of But really mean with the scalability, they technologies, callable And factors. the they concerned the the effectiveness, power I

our other about our than be a these all more revenues. of supply bring multiple the So demand substantial is things current which will able fab, we'll day to

Doug Campbell

to But it. wanted hear, I I love

Patrizio Vinciarelli

of a respect not ability fab. but the sleep to feel losing any I'm with Level disability not to says, lot

Doug Campbell

think with present. not I'll concerned That's no because investor, finish doubts have enough time. an all with just with. I'm just Well concerned this the as that's your -- I I'm just future. about I

will have future the years company Your I doubts no four three, be. where me two, to out,

tricky. a little of couple as for last all. That's the it's fund quarters, next the couple Just of in manager, quarters me a

Patrizio Vinciarelli

number critical the that's is point. year for very in But these getting a elements the to by It way, I transition all to think, is And year, be treasure transitional a on I words. much be before year, progressing going the the think of your of we being year to got. year end This a place. reasons. are

Doug Campbell

these has forecasted panned exactly as years Well, out all the ago. you future industries in

make of all. just -- money of all it on I I hope a top So boatload we

Patrizio Vinciarelli

you. Thank

Okay.

Operator

you. Thank

Next caller. another question is from

star end, from our will six. I side. yourself your and unmute using And please So also from on view this

Quinn Bolton

Hey, from this guys you Bolton hear Needham. is me? Quinn Can

Patrizio Vinciarelli

Yes. Quinn. Hey,

Quinn Bolton

connection. Hey, hopefully this a is better

processors follow potentially to where redesign saw in Just ups. had to opportunity shipped and ability a some on using the this multi-phase quarter, initially couple Last talked redesigns the you you about and come for you Vicor whether those to be components. those an board see are you the or us Can if lateral you give lateral update, opportunity going that vertical do just are still designs. of

Patrizio Vinciarelli

severely vertical. noise, of suggested are terms of advantages performance lateral the a but their and increase PDN of some So, constraints solution Vicor even solution the solutions of less of scale PDN. in of these scale power on not density, handicapped effect is in full still offers the earlier that some vertical lower the lateral within by lack on so lateral

in it customers, PDN terms of of struggle the transition us the The of to of And simple level suggested with appreciating different through in like the components the and benefits that some of delays kinds led process. has what OEMs a and in stages earlier XG architecture as as various process visibility. be terms the nature is of design of that's of because the of quick with is would not novelty some terms to design

are use large within because rails major into axillary power generally itself. within that that itself, OEMs handicap silicon increase differentials the can results that not to say of voltage realize a and dissipation the the in much in they silicon significant benefits. a I of rail, just slashing growing is frankly require primary domains power the as But losses PDN saving It's coming there recognition the

just is better we the just lower silicon loss before lateral XX-XX-XX worth much of within fully by at reduction noise. as that power in about by in vertical get functionality of the and a PDN and silicon that reduction our a not PDN gets measured watts is vertical the it PDN So there to about advance loss even brought of

Quinn Bolton

is out lateral Patrizio, call on generation wait solutions? before vertical X-nanometer do to the see the guess effectively this Can for -- XPUs company significant trying of many I vertical benefits we or of to vertical and processors existing I'm and I to in future. only I next in ramp think investors number understand, ramp a what the of vertical are ask trying only the that X-nanometer lateral next the year? lateral need on you vertical will we and over

Patrizio Vinciarelli

in distinct recent call, silicon to to solution solution. the solution around not and vertical believe Yeah, the practically even a we as of is in all that call. these prior pointing possible though believe benefits still made it be we that are may well was that be with for is have the and referenced advantages before there developments What going our of a so We ran for ramp that certain Phil PDN gauging handicapped. contingent got speaking on those because most too the long, said that on alternatives all lateral our earlier it has [indiscernible] ladder that current latest are who requirement conference XG based making X-nanometer to the lateral platform he there's developments

Phil Davies

Quinn. on that. feedback Hello line you Quinn? have caught some We Hopefully the

Operator, are you there?

Quinn Bolton

had I Hopefully again. hear me the of can because at guys, background put Hey muted, noise. you

Phil Davies

Yeah.

Quinn Bolton

you talked about mentioned quarter next this question, my last Okay, cancellations you haven't cancellations. quarter I heard

backlog has any cancellation you you that think point. subsided meaningful saw if the wondering activity largely or to cancellations Just whether at

Phil Davies

cancellations, seen good. Quinn. haven't we very Backlog looks Yeah,

Quinn Bolton

to of or I XXX you delayed just And whatever or last the ramp sort bringing mentioned in to of capability delivered would dollars the May. but those you me the you additional extent want think just to was you several June being equipment of pieces qualified full equipment billion and the XXX a $X you May Perfect. the the lines billion late-April integration it of vertical few last or are until need to July. one to that get equipment full Does and for run-rate in pieces or

Phil Davies

through of receipt plating the critical that in had of the April, integration which equipment. we is took outsourced. copper the we So Vertical process

the have capacity. step integration the where ability to position and should for, month First the you but vertical as there said operation about install round XX,XXX the it balance need a the capacity $X to us we we was add? half panels of Patrizio as billion have anything And we'll Do plating install. per

Quinn Bolton

just Yeah ---

Phil Davies

Go ahead.

Quinn Bolton

so half got it of equipment you've like Okay, sounds the --

Jim Schmidt

just the we've to the of got we for matter the up the install. where give to wrong starting can impression. capacity installed process. as do plating operation We've a of Half equipment want don't total lined -- the I

June-July, is panel very to do will qualify we'll May, capacity we expected to that. the place and to no So next need easy will all runs at problem essentially in in. capacity that the to all get the output There's of generate pilot tranche put have equipment with that the In the level.

there bottleneck process capacity Now in minor accomplish. simple outsourced not be to a the will that's will And very future. be one that

Quinn Bolton

like remain the let I have outsourced, of the of about question. revenue small do can quarter. me with by vertical end the It of process, with sounds exception million integration you'll third will this clarify one maybe to capacity $XXX Okay, it see if this

Jim Schmidt

that. than More

Patrizio Vinciarelli

are month, panels to thicker, is thin, per should dollar integrated respect chips, automotive are give depending revenue millimeters to this. referring to millimeter datacenter considered where XG, capacity which bit considerably about in being be a many Quinn, that What thin. fab, processes with end of Also, the that powers you the X.X little year. vertically the more They're X.X to powers color going are integrated. what in one on be was AI, are front powers the products can those typically that, chip per vertically There with terms or whose And is of Jim or integrated, to billion end, the is and the be vertically very week, per one mix thick. support between processes on

of in these of in The of bit thickness a function or proportion little to a layers. worker panel, effect of scales, masks number equipment the capacity inverse in the capacity foundry it's being the like

per But revenues So that looking generally the per capacity, dollars in the capacity worth have the of type a bulk position going at a or of in we as power to share billion year. have to be of speaking, powers of we of frontends for applications of terms support QX we automotive would datacenter actually are lion's chips. more week, OEM high

Quinn Bolton

you. Thank Understood.

Operator

Thank you.

We queue. have question no the further in

Jim Schmidt

we're Operator, our top as I the hour. think question this be the last will at of

Patrizio Vinciarelli

said think that I are no that, she questions. more there

Jim Schmidt

fine. Okay,

to very operator. you ready the thank then conclude much. call We're Okay,

Operator

nice you day. you. This and the webinar. end Thank a Thank Thank marks of have right. your All for everyone. you, joining

Vicor (VICR) 25 Apr 232023 Q1 Earnings call transcript