VICR - Earnings call 4 2023 | Vicor Corporation

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Operator

Welcome everyone to today's webinar entitled Vicor earnings results for the fourth quarter ended December 31, 2023. My name is Jennel, and I'm your producer for today. [Operator Instructions] I would like to advise all parties this conference is being recorded.And now I'd like to hand it over to James Schmidt, Chief Financial Officer. Please go ahead.

James Schmidt

Thank you. to Year Earnings Ended welcome Fourth for and and Quarter December afternoon, Vicor Call Corporation's the Good XX, XXXX. Chief Chief the and XX. Phil press release Schmidt, with X markets closed Sales months James Financial our issued I'm the and I'm a we in and Patrizio Marketing.After Vinciarelli, December Vice financial Executive year Davies, and summarizing ending today, Officer; President, Global Officer, Andover results for website, www.vicorpower.com. press Relations our This has page on been Investor the release posted of

the We SEC's Form release. any the and including remind the the such of on the Reform ending the million year product including of X% is for no products fact, fourth sequentially, ending for quarter as million quarter year forward-looking before. 'XX a Form while are million only planned our we from spending Vicor the of in also we the risks In Except full of $XXX.X of brick statement and changes million. of listeners events are XXXX. issuance made this provisions XA note during is $XXX.X brick quarter XXXX for release, revenue to XX.X% differ statements you the after Vicor Private on full in XXXX. to harbor to remarks and Securities the forward-looking will any safe will recent XX, Litigation for forth various XXXX with of XXXX, change call million, forward-looking recorded webcast make revenue declined $XXX.X call constitute from to XX-K, as revenue to XX.X% statements market for filed the from Corporation.I total increased financial today's revenue management's the we stocking this P&L today.The the million well in fourth profitability, relating year. as from update of for for approximately implied a Revenues percentage today for on X-K market December document In approximately items you XXXX. prior opportunities, sequentially, $XXX.X distributors take call.A Act on expansion, I advanced and call, for materially during XX.X% may set this Thursday, the XX, conclusion and questions. the of is and sales our for be expectations involving XX.X% Please current increased available Revenues our under as information available of any discussed and today's face explicitly of quarter forward-looking mostly from also exports sequentially decreased this regarding million expected discussed increased XX.X% you and the to This shortly On recorded during conference decreased developments, decreased light call press website.I'll third press announcements, information.As statements, total Phil the the and balance sequential should this Advanced call, uncertainties, Investor year of prove as purposes year-over-year. and is I prior press property the being to products XX.X% remind QX as Revenues of information be review and down third copyrighted obligation our of our for historical X% before.Shipments on but percentage to year-on-year Exports this filed stated declined remarks and X.X% XX, the can and products quarter. total Vicor XX-K of products, Phil a upcoming upon to decreased website. of those risks the customers, fourth the quarter's Form which as and/or total from these and will turn correct. after statements our release $XXX.X remarks, statements undertakes rely to we your replay accurate year potential will Item Relations revenue capacity my Patrizio, for conference for offer year's $XXX.X matters this call, performance, well assurance uncertainties. potential no million SEC which sheet contained XX.X% growth, $XXX.X $XXX.X results basis, current focus and any the provided EDGAR year-over-year our risks for additional page I XXXX year from $XX.X today, review from February system XX.X% via down will, year to and the ended in of February refer million this Actual may prior that uncertainties statements not XX.X%. by a XX.X%. the from a now quarterly total call

We XX.X% total for than advanced less profit For a margin quarter, to increasing gross brick revenue.Turning of correspondingly third to of to products XX.X% of margin. QX, gross quarter. QX consolidated compared XX.X%, total share recorded the revenue products approximately prior the share XX.X% decreased with X.X% to

and gross improved supply ChiP A turn expense, from XXXX, year. including in year XX.X% gross X.X% percentage, the contributed by QX from operating tariff now Total reductions year-on-year in rose full expenses. to lower X.X% to litigation freight prior expenses, the third decreased margin income, quarter. in royalty chain operating to of XX.X% factors and the costs.I'll increase number including the sales For costs, increased margin mix,

cost total $X.X XX.X% of million.For in respectively, we of decreased million, included of and For revenue year. the from expense percent XX.X% totaling X.X%. expense income SG&A compensation was for operating and recorded approximately goods, an $X.X a total $X,XXX,XXX as QX, prior operating year The the $X,XXX,XXX, XXXX, of QX R&D representing full to operating in of amounts margin equity-based $XXX,XXX,

million. provision income XX.X% of XXXX XX%.Net operating representing The in XXXX, a the was totaled based quarter full recorded QX QX effective $X.X $XX.X compared income prior year or earnings provision full $XX.X the GAAP $X.XX share an fully XX.X%. million an of of of representing a year totaled on year diluted of tax the for to count We tax diluted per approximately for million, $X.X the share XX,XXX,XXX. of rate taxes. was for $X.X tax approximately effective million million, tax or income For year.Turning for for revenue to X.X% revenue rate the

net worth X% the in $XX.X manufacturing $X.X year, for $XXX.X quarter We of reserves income full equipment million and book-to-bill, receivable cash million in $XX.X million from we a investment sequentially increasing primarily that million XXXX, for to and million X.X% installed backlog. $XX.X ChiP improving approximately $XXX.X of million. vertically the million million. XX a construction QX. the million.Turning backlog CHIPS QX Annualized fully $X.XX net the decreasing uncertainty in to expenditures equivalents be from $XX approximately address per the totaled accrued million at our opportunity. while Accounts cash rose sequentially spent.It's were now fab.I'll approximately for increased quarter. closing prior end, reserves to related In with Inventories turns for net with inventory and DSOs prior to in approximately with XXXX, Act the to is came quarter, flow of integrated totaled cash tax and For and and with year. bookings at $XX.X of our the at at remaining trade the first QX $XX.X noting and share approximately ended totaled from quarter year Capital as earnings increased quarter XXXX credit sheet. progress from days. prior $XX.X year an receivables QX, X.XX.Operating flat in year, from below X one $X.XX.Turning to flow totaled the year million, and full Cash equipment $XXX.X diluted balance to balance sequentially,

wide today, the and year's line outcome of to subject of in of top a line range As bottom relatively terms is scenarios.

quarterly limited are your are will I that time an we uncertainties overview we opportunities.With Patrizio, along provide in of that possible I further resolving as provide will yourself question and and and we market as questions. recent wide can Phil until Given take you limit one on follow-up the ask that, related available. Phil to outcomes, range we many to of the of to capitalizing then can and unable you so guidance a developments, respond

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

Philip Davies

Jim. you, Thank

otherwise levels The of to booking the was than components to access our gen innovators needs automatic achieve power through respects as power made turned power segment of OEM ratio covered forcing industrial provides anticipation provides key networks. the In now technology HPC, you license to inconsistent platforms license power our exclusion supply in and current chains. and license message of gives delivery. for in topologies, was systems and to first QX processor his and licensing market long-term systems, business. Those that progress X current in in business low bookings due vertical our expected packaging technologies, The The Jim book-to-bill evidenced As deals test in market QX, still our lower AI, higher clearly were gen of with XX-volt OEMs down confirm our will MBMs, Vicor otherwise delivery mainly develop license XX-volt OEM QX customer the superior the require below strategy. supply with to of needs, us equipment already and in to infringing It rack orders IP game-changing gives OEM clear. single-source market and the higher suppliers, In American manufacturers. delivery.As risk vertical we a density OEM IP supply power avoids products from advent HPC by from AI our continuity for servers the by OEM the system infringing learning, alternate covered AI machine gen open-ended network control high-current Vicor of significantly innovator processor and to processes and is of processes.Additional access engagements are IP AI multi-source technology. enabling license sources access future and for performance.The to update,

XG market. the foundry our our requirements, Our us power first system and expand uniquely again power AI investment these in anticipated AI of line once share future the to world's system positioning product ChiP

creating volume We future platforms and are with fronts, to other tools started collaborations customers.On that XXXX to pipeline and getting customer models, business, market to processor and continues near evaluation automotive to our grow, ready to initiated our lead In systems, applications integrated low have AI fill deliver production both were and product new move first into manufacturing hybrid our foundry. both we as technology in demand term up gaining our with vertically momentum OEMs early with ramp are XX-volt on automotive in and and is market from Vicor the recently learning qualification, and zonal with to coming BEV relationships visibility dates through architecture, patented by mild larger the in higher years. promoted OEMs response Vicor's by in production platforms cycles. and picking Tesla.Collaborations Momentum volume conceived OEM to samples

that for be defense modules.In participating units, papers value demand XX-volt customers to smaller power now channel advanced once and of for at our power take continued continue we Customer this our in our technology purchased accounts from audit propositions year both business now visits Detroit other will have ramp our stronger and also new industrial, showcase with production view OEMs XXX XXX-volt through our WCX will technology we fab that you we We and again as aerospace and products.Thank to large who top partners. markets broad see X with will our in questions. system your and and ChiP

Operator

Tanwanteng. is question Jonathan first the And Instructions] [Operator from coming

Jonathan Tanwanteng

or Or purely what kind to you for concerns deals. MBM Was me the surrounding down of technology. the or were Are turned help data IP? you they deals? center surrounding to XPU understand MBM it HPC clarify, licensing And power due were saying So the issues? economic pure just

Patrizio Vinciarelli

Yes.

set clear So an because think a analyze going not we're to where asserting relating it that and going, not going into by with our developments.So vision to other on to a we're you're as of complex details. say, variety of But important unfold patterns have needless fronts get to is we're the to of understand it's marketplace, to to specific that the to vision sticking MBM forces. opportunity and driven a I respect have we events

a also On end the is solutions, overwhelming areas high-volume delivery. an there where at of there current right and new seek drive going facilitate as for solutions density vertical multi-sourcing, participation Vicor the these opportunities But a to with directly are has fab. to through IP of of where one as day, And hand, we're a power is applications. multi-sourcing the established higher a need very that to in strong particularly needed licensing modular beachhead for the to mix pioneer realize needed, from

Jonathan Tanwanteng

that term the more? this resolved this of Is then something of assertion and take in Is your be near can will as that negotiate you litigation that to complete? the something the completion strategy

Patrizio Vinciarelli

Well, so Jim's the characterizes we we the retain the that our make regarding quarters, as several don't we can't his want to point strategy. flexibility that that to want make implied to needed long-term in position. position and by remarks implement last opportunity uncertainty And because

litigation first fill and very certain to with will I them patterns. work respect factory of in that going in MBM that going the we're to tell in course. also that to our to to can well predicting respect be follow due we're will is with things happen. be with our expectation on my when going doing not successful, we're going So successful we're terms that process. to We're you And on regard,

very as bring confident strategy, to our of about. very to be order patient enable in and determined we're So it it need

Operator

coming is Bolton. question next from The Quinn

Quinn Bolton

to you understand of I to just understand guess range of provide want but sort the make sure lot of don't alternatives. detail, want I try to a I I

competing perspective, infringe sounds for patents. your MBMs of your like said turning You deals may you're It or the many down opinion MBMs. from

so And the you just asserted down customer. use you infringing alternative the They MBMs license to or patents have the if what's patents? deal, for until turn those competitors your

Patrizio Vinciarelli

a model of quite So we well. proof works existing business that have

us. the significant due We is balancing an do otherwise property needs of instances have and which virtue large, and needs sourcing a multiples with been intellectual customers overwhelming again, a part by the as our And of strategy, the opportunities in with OEM infringing that market licensee ourselves expected relevant license source as customers, that's, for our have that well of for an sources. MBMs a has respect of for variety need some overall from to an

Quinn Bolton

Just second power analog vertical power you front. X-plus Infineon, on have is be of followed been delivery. Patrizio? about feel that now power question, show the of thoughts, lot guess I power IP talked vertical competitors I the sort I papers delivery multiphase where conference. direction, from And an think, extent perspective. give terms do we've your Because industry area We'll know all that talking patents just you the that you've to in APEX moving adopting is the for talking in multiphase where may are know power about vertical to latest delivery the probably that I week. next A got have the front? that assert vertical years. delivery, of Can and around about by you at your devices us

Patrizio Vinciarelli

Yes.

robustness, with stacking It Vicor a lower we power what front.With converter are the doesn't lacks within our we we with gen enable generation handicap scalable attributes.So a means our cost-effectiveness, things, VPD, more conceived in long efficient The with interactional question, much we much scalability, call the limit immature converter. but more and certain can second It's by many profile, in technology first-generation cost as from a scalable. to of XG fronts, VPD, more technology, to first call before multiplier. of by pioneered competitors It that, much we which what vertical multiphase them scalable, somewhat context the advanced stack solutions, somewhat call Without it they falls Vicor, current in matter. solutions. one solution. on the of it's initially and implemented multi-cell specific mature more of is It the much believe will more the a suffer been of including what also see variety going IP be can property respects, delivery, more not too lack much we a set solution concept. a which lack all become of a effective, So, trace and be is multi-cell certain

Operator

coming The from is John next question Dillon.

John Dillon

in you automotive. that some have the prepared about a talking from after and Tesla were promoted soon? IP said that that you it So, Tesla. your that, yours by And customer right you in remarks, of then be was infer we Can might

Patrizio Vinciarelli

and okay. word zonal the heard I So XX-volt -- Tesla and

James Schmidt

to be soon, customer think I was asking. going is Is Tesla what a John

Patrizio Vinciarelli

Yes.

other to customers. in a using So make companies was respect about converters distribution. pioneer going power Vicor I as to that concept bus But specific we're not fronts, or of mention automotive will within potential comments the with

property to So point that's an that fruition may area at of time. intellectual in come some

there's imagine earlier shortage comments, you opportunity. as or As by implied can no

we're As but a efficient, advanced very which of to fruition focused and initiative, technology. is when fair to a to on more comes very very bringing part of a scalable broad enable comprehensive now, again system our MBM strategy market of part campaign, this power it is

John Dillon

Right.

thing, other you are the your like previous It headed about the like looks looks the $XX.X press on congratulate release, from up million up, I quarter. The from to and bookings it wanted bookings. it's

this continue specifics, I we continue? just don't any throughout I'm do Phil, trend to but you trend want So to wondering, the expect can expect year? the

Patrizio Vinciarelli

Yes.

impact you next ways earlier, end, need should I the stop of call lean but what upside few is don't say, There bookings, And is. is terms to to line or There There on to that, going wide to scenarios. because limited And quarter but this. that fruition. top quantify would next a of the bottom in the we think think because a unpredictable. is of could unfolding want clear in range we're at I quarters the to it, as to So events frankly to is applies that individual line, say. hard discussed respect low I bit with separation, that one is be word not there whatever to the over quite events trend a time downside, all from book upside, that are of predict

John Dillon

that. I I understand get that.

this alluded last predictable it's conference to last to So upside a sizable alluded -- you is there, upside. this the quarter, sizable call, at but out still a is -- It sounds like time. you not

Patrizio Vinciarelli

that the more That's say time or that right. will impact contribution happen sooner later. may than I instant cumulative predictable is over

our fundamentally, has always a honest We're it in context reporting the not, is look not with as markets, we So long-term are view. the decisions particularly strategy, based been, we're any what but good quarter. take to to in -- perfectly very of you, making on now be one financial may

We strategy. based think of the at long-term the factors decisions are is various what comprehensive on in making we balancing again, play in a the interest shareholders,

Operator

The Quinn is question coming next from Bolton.

Quinn Bolton

How wanted hopefully times wins. about. range generation about assume generation could are you I I to more scenario on just plays fourth about out, or that scenarios the follow business? think quarters, either the quickly talked X you're fifth lead months. a likely I are, There But you've upside that or John's obviously, those mean are design ramp I question. past MBM of up to talking in that manufacturing extent

the the got way of would sort the begins And follow-up. think those of so timing of to couple case take play that it to the some extent upside Is right quarters a I've opportunities? to start And upside kind realize to a then out? of to about

Patrizio Vinciarelli

quarter based backlog material would after to, in We in could, currently situation. what time quarter, next obviously, we we said the lead the that, we and capacity on terms the bookings of place have subject procurement So more manufacture in now. than

type considerations. a our have in, as vertical and Just challenges.Now is regarding yesteryears we again didn't longer integrated the sticking on reminder, But challenges we position critical resulting that a process I as from which steps of us has challenges, foundry, historic to are Those think of of we question, first a been the when variety a factory your with of to ChiP back where we've supply challenge, sources face for establishment about gone. no were of are a dependent in strategy I that issues different scalability. we never in are feel answer outside balance

And never panels. We panels, have to very large foundry, which make in level of can We a ChiP in very, products our Vicor are of manufacture quantity we a that had. capability advanced akin wafers.

lot have set We a still can to be a addressed function time. demand short going no capacity.Needless of with had, be to lead be supply cycle there's relatively say, a There's within but to time.

Quinn Bolton

latest now multiphase had And may to in multiple the lead about controllers the question open having control that approach particularly, Patrizio, had sources one anything GPU more XX, high since term? GPU multiphase that of has if Vicor longer this that of event term some or may of might the market, AI phases? recently large either that near current the got event you processor, that supply. or XX concerns benefit some that the the any to event generation that one discussions you more raised you've vendors vendors, issues. general, wondering XX, out seen sort coming Have you've potentially in or follow-up have testing in And given has is, I'm pretty to won of believe share the of that are any

Patrizio Vinciarelli

in And get So multiphase solution. systems challenges of a VPD have type those challenges. compounded

more much proprietary to much operating current with and area so approach, we effect, send, GPU challenges.There is averaging So voltage each and fail elements down or current voltage a Vicor voltage safe with the with switching examples, to up -- you of is AI with the of so give top happen need than in short, some solution. which with of area, you current of of which could as multiplicity have are the and with FE type our multiplier, the just through support step particular, a multiply in involves any a efficiently lower take density primary a commensurate to no is phases. it can, semiconductors that to without do switch It challenge there larger phases, do, of do with underlying of multiphase should higher can current benefits lower could in operating with multiplicity a a one that which that the the safe fail, processor reliably fact

very, seeing, have. punch up technical large with of very low And are with the that of with layers and visibility, energy rates OEMs VPD with it to of and get And on to terms or an response. as back this.Getting have not too a which required of costly which need current a many, of the advantages in -- handicap overall. many we implemented I is scalable effect involving VPD to the being multiplicity to you multi-cell the solutions stacking scaled opposed defect of mechanical the side the challenge gearboxes then a topology in expect in have conversion as back mean of truly of power that power approach with we're our to compounded different.But multipliers solutions type architecture, first capacity that the compounded this So the don't in distribution provide topology, current and components form level would of dynamic are the we multiphase fundamentally require to is low based challenged, with in things generation challenges order multi-cell line, have, entity filtering these getting first-generation a of VPD VPD multi-cell multiplicity converter, density of topologies, by phases in manufacturability in not

Operator

from The coming next question Hicks. is Alan

Alan Hicks

complete, It can confirm you that? although -- sounds that some I know factory like you is more the virtually build-out. have Is

Patrizio Vinciarelli

Yes.

to we source red. a made to all every the And facility. be those red, green graph that we it's We week. review integrated sense in It's now are week bar a an are green and has week. the -- yellow, in from rising and/or become which It a was that yesteryear, yellow bars of green used vertically have sourcing

doing in regard. are we that well So

-- committed point, But capability going months. in and totally still capacity several essentially in additional equipment we're in comes is add technology due of the other converters the not our capability There's next capability behind building covert it it of and through some analogy, that type panels, scaling the some And to to challenge up. using core we're your done modules, So again is That's bringing package process [indiscernible] additional is we that we're layers in unique equipment with us.To wafer when in is up of the place. equipment. effect, to. that it

Alan Hicks

Okay.

you are say coming down? lead your would So times

Patrizio Vinciarelli

smaller mix capacity. that's Well, mix has With has in some quarter our have situation so last what within been the to total utilize our internal of on was It is changed, to line a capacity of challenge somewhat modules instead we different of top had that quantity And variety why that somewhat a target the of mix backlog. just backlog that to things, -- its going address It's make within of making what the of a different particular reason on bit fell quarter. been kind, because a in in the is right. going certain backlog changed overdue, and a right. short has the terms of need and was that of the we there within a on places own lots of constraint frankly that

respect factor last to it And respect particular was the with a to factor our top a that's in line So in quarter. capacity. with the

Alan Hicks

capable forward, what's lateral the interest And you're XG? building the vertical. Then Okay. XG in and going products of

James Schmidt

interest XG? -- is what sorry, what I'm in

Alan Hicks

Yes.

Patrizio Vinciarelli

you now, -- have our we focus do right think, answer Phil, that frankly, I do want question? to So,

Philip Davies

have some we XG Well, design wins.

Patrizio Vinciarelli

Yes.

Philip Davies

Absolutely.

because and that's which too. So power where that proposition density a Patrizio really the is major technology vertical will is to applications play out real power establishing the other and as XG delivery lateral I focus, we the move think current going But Xx year. XG, the lower through is of value it's

markets up opens it new bigger for So markets. us,

an time. it's I exciting So think

Patrizio Vinciarelli

and in get I'm And out we completion that begin thinking not thinking making sure focused to bring tools much demo and to XG. system fact, excitement -- XG we about poured Yes. the I'm customers, up. that and is on scale very theme

Operator

Your next Tanwanteng. from coming is question Jon

Jonathan Tanwanteng

if I EVs for bit shift fashion changed have where the versus how your applications are given and that to maybe back was just in automotive all, more pure XX-volt the technology? in automotive wondering a little sentiment, at expectations plays out your hybrids

Philip Davies

Jon, Hey Phil. it's No.

for go battery to a entrant, have we're we seeing hybrids interesting, still or So I it's go is as sizable no, what powertrain that the quite with the mean millions XXX-volt XXX-volt to course. that to And mild XXX new there's there for from their of actually out moment, XX. BEVs after market and at of solutions us is XX XXX technology. to us

example, XX an [indiscernible] is We converting battery an that to an system incredibly or conversion.And market a power we're XXX-, dense or in what some down platform for and lot charger actually XXX-volt from a with applications the electromechanical bidirectional in to take like, of interest a a starts different active getting recently hold seeing XXX-volt XX volts, onboard is XXX- have suspension condenser or applications. of these as volts so

per for that Like exciting example, seen would -- is X last a high-volume because us for quarters, the active those in relatively that's So suspension, the I more the last to we've X lot modules applications. vehicle. say, of X and are

in continued So the application actually us. we're spread automotive. increasing is progress for encouraged And the about

Jonathan Tanwanteng

I just second, back with then And IP. IBM Understood. the go to issues the to and wanted the

than for deals you meet demand you're here? maybe technology? is there view designs that from maybe mostly this ring-fenced your see. pursuing it that on them as demand less something they property that customers is intellectual just generation closing the assert thinking for you there and out or AI I'm all customers just these the deters fifth might perfect, to potential processes, you a the Or there, or As pursuing do settle risk path that's VPD

Patrizio Vinciarelli

because we the doing system have, from that which their way OEMs So guess challenging power considered is their if own. needless terms decisions encouraging to expect technology OEMs make of I right, of these based view that a access to competitive competitive say they would or this involves a they position on are competitors are foreclosed their interest, that I with technology in discouraging in us, business

they the OEMs, enforcement power in OEMs, a covered those come pack system the and a multiphase high-con market patents IP to solutions, enabling can't it's to access MBM product not particularly to for technology, provides which a unique by realize Vicor have.Now necessity. other lot wish customers IP VPDs, have a be density that whether we second-gen large does and commoditize capabilities. extent commodity is the because us the is the to case particularly to so Vicor of We proprietary which the capabilities, as innovation VPD, of And have or expected. needs of

necessary respect investment the property the an process. the So regard Commission. action we to need that now International this that through and our We're halfway intellectual is in of getting more first than deserves in Trade make the action

year. on key at conclusion We the And respect later to going be the winning to thus bringing decisions this a far, are trial to at been successful we're outcome. I'm just we're of April. encouraged very about made to-date.So And focused end every that has with very on

Jonathan Tanwanteng

do run we made to the When there? to rate be legal are a And you it. the you Got as get are what final cost expecting just on what basis be there? -- the expect decisions

Patrizio Vinciarelli

of So at the by, his I October. decision end at think, LJ the of is very will May. of The trial beginning April, render beginning the

Philip Davies

Actually time brought -- some

Patrizio Vinciarelli

Good be -- in watching time watching. to obviously.

Jonathan Tanwanteng

Got expenses cost, it. And that? legal with the associated the

Patrizio Vinciarelli

our firms our partners. deal structured as It's opponents significant, work we that law but of significant as because with how as us not with nearly

a So common we set interest. common have of a goal and

Operator

Dillon. from question The coming next is John

John Dillon

new building investing a Patrizio, your in cash keeps increasing even after factory.

buybacks you cash are of cash? ChiP for wondering, considering saving the that Or I'm stock So a fabs? you multiplicity for are building

Philip Davies

buyback. or fabs more it? Is Building stock

Patrizio Vinciarelli

Yes.

understand to have the a one, the represented which So capability have right. we now of expected of But first existing nearly one, support of And mul fill I'm wouldn't have some all regarding existing said. yearly more considerably we we I $X to to made billion able fabs, what you on be of based advances that to technology is revenues. our XG level with the sorry,

having to second invest before So a we in to fab. got while go a

John Dillon

buybacks? that When stock

Patrizio Vinciarelli

on opportunities if when Well, get my in frankly, this not all when we're happens, focused find been we'll point on it that's may radar But a it radar time. our screen, happens. screen. of that and variety at And out and

John Dillon

cash you cash -- you stating your a forward huge said And what point? growing. What's keeps that are

James Schmidt

Yes.

one I for. in think couple that a $XX Well, is million greater So favorable what cash it cash the is forward of that of last of thing at we point, occurred using are very case, the John, than quarters this operating couple the is quarters per quarter flow.

efficient So spend and be parts and other there cash. the is P&L very a fact, efficient, in the sense outside factory in we generating can internalized that royalties more pretty now no and with that and of

bit, pile let's but cash we the let -- decide. a So and then grow

As look at Patrizio it. said, we'll

Patrizio Vinciarelli

or in say, strategically.Going double a the being question, with our to the in by back say relative that want in for could at is float that's And as extent very most salvaging say financial let's to conservative our of achieve invest position, back that's That's to to relatively campaign mission. long IP to we the particularly to value needless goals. priority. to early of speaking, campaign, necessary And we takes opportunity to there, than succeeding to the able XX% focus. top your right. the the X% payouts respect be more the I'd our we And important stage So the as or buy strong opportunity, a do it that

John Dillon

just where design your you Phil, And brief us going a can they're coming on see how up? update wins, give you

Philip Davies

John, question. out that I make Sorry, couldn't

Patrizio Vinciarelli

speak louder So very, very or? -- hard

John Dillon

an just Phil, wins give us -- sorry, -- the can you on Yes, I'm update design

James Schmidt

wins. Design

Philip Davies

We've managers with on grow. on mean QX. $X We're identified in about every one have to and where We'll John, As Vicor. of very -- in is new account remarks, as a a billion we're will with a more those for talked XXX in continuing them of every set mentioned them, started I QX XXX I customers. single QX. the of focused we're and targeted one on is have pipeline single top products those that XXX release customers SAM my for I as strategy focused to about,

growing. next healthy X all the X over got is very We've units by in X years business a XXXX. pipeline their achieving the to So growing pipeline. I'm goals quite confident

Patrizio Vinciarelli

model, the investors the though lot on one It's It's not there's center note. a community, particularly a only reasons, talk markets. a even for the is This of of primary ours, Yes. obvious right. of market. from the opportunities, AI not is -- that been part the We're of diversified

for us talk other market, products strategy end-markets heard in and own for an is represent of us, emerging you we business if right their overall have our a for automotive. those the defense, X those in room opportunity transaction. those market deal but Obviously, end-markets and industrial all Aerospace the trace to here, terms about right You in That's that important market model well. applications as in the right, us. opportunity. And the the represent key market have see an obviously

Operator

question attendee. Instructions] next from coming is [Operator The

James Schmidt

You questions might want operator. to go to next the

Operator

the next over the [Operator joined questioner also Instructions] Sure, phone.

Donald McKenna

This You're the is running on far? through Don compared to they're to was Dillon's want you didn't can quarter. they're up any rough earlier bookings. halfway McKenna. know question And I I so a you following last But project trends. running of John give you said how relative How quarter? to idea kind

Patrizio Vinciarelli

do is could next going that. and we misleading with or expectations other, happen quarter don't something we're the want way because or is going to Again, respect this it one to to what setting do not be to quarter

balance to a honest, outcomes. we So variety of challenges sharing very as want capitalize and opportunities effect lead be to we what in could that on

one specific Given that. expectation or we that the want don't setting way could other, of to any potentially kind do be misleading

Operator

from Instructions] have phone. who one joined over we attendee more the [Operator also And question

Unknown Attendee

General [indiscernible]. your Do this? building that is to expect they're big announced plant Motors EVs. a GM you for that domestically selling products you'll be This for

Philip Davies

with or customers, to our really excited and about our to their BEV been Tier more mild and of bring of types part It's collaborations we're collaborations. with So the XXXX we Vicor it covered our strategy for platforms. Tier of strategy do them get most hybrid really technology then about not again, to in OEMs And in can have not technology. talking -- us with evolves, the those any what platforms start as on we specific starting for Xs but Xs, to OEMs and globally work

that say a I about our well on collaborations moving footprint, customer, rather see. good one with good those So specific can with and doing it's investment. to the to and GM see really get That generally strategy. But we're than global forward is automotive very

Patrizio Vinciarelli

more before there close. we question If one is

Operator

the Right. [Operator The last question Instructions] phone. also joined over

Richard Shannon

of trying minutes.So to service, with kind Shannon I'm for wrong Richard with is guess your a at as XX get technology. been look Craig-Hallum. sure on not XG we This multiparter, what's this maybe I but I've

sometime deliver you this call, I talked last quarter. to think wanting tools and in about your models

regarding I didn't and think enough it to early got anything I remarks that. prepared hear hear the

to with the do So And have the facility alluded here update confidence the year, large then high times? production with of as to give you between ramp an lead ability year, low to new and then? this, next I'd to you're customers what to now have on and and by you needs we you delivered love early get whether how been that yields, happen exercise think quality I high to here.And to end yet those maybe getting about volume think this

Patrizio Vinciarelli

for with couple were. Relations a state-of-the-art the of commented impressed. come in in company he kicked to capabilities speaking, example, the facility, very of VP realm as factory have a visited they've customers of that We that had, product been visit generally it never So of having ago, the unique And very tires an as like and seen the a AI terms the he capabilities. And facilities. anything weeks

our as keen wafers year. this on schedule ago half one. making we production them if with tools samples, XG, and speaks the notable getting have technology, QX to another to the mind particularly to and for functional deliver and progress of us the customer as second as equipment, we a a panels the They have So are of systems of systems through XG has chips including in demo come we're and our and power being QX exposed that going year.Regarding customers into production, place has that methodology in moment I team we the volumes some processes, was visits lead put devices.Regarding they referencing scalability, of the semiconductor were one the to engaged of the customers,

terms In to meaningful terms of It's be in XXXX contribution a way revenue in event, is revenue just opportunity, any type in clear. event. of of XXXX QX this to not

Richard Shannon

down one. -- with remember confirmation. about Patrizio appreciate that to statement I of I made that and systems, here reiterate you either share or power referring in XG AI the was call case, expecting reiterate -- wanted still here I going time. if quick you to is people the to I that to I think to period revenues to on question can a by, over that to the My last especially that wanted happen. what step that's believe given Perfect. people. of Okay. last you is concerned dominant think there Phil, a wanted be get just a have I might

Patrizio Vinciarelli

data with a other applications it's which have, with The looking And cases, been vertical at require, suppliers has it's XX,XXX scalability very numbers. multiplier. other of multiphase in had scale in a its handicap.And the without for AI facto attributes it's is. very, millimeter vision like at the applications respect that AI challenged. That density, scalability, the of key looking up is rooted very requirements. that hard capabilities. X.X square it's at we're ecosystem the that is customers amps vertical which and around per speak, not the we efficiency, is again even standard solution historically, square But that amps need through line power millimeter own It so know delivery, the down The to severely reasons dream, the a amp really level. amp to VPD, and I VPD, visibility per technically, and ability approach, we're large multiplicity the but thin a provide the severely it of obvious it comes it's X,XXX, In X,XXX with processes VPD current what de numbers attributes, And multisource. they a millimeter is globe. are current to to handicap. The with because particularly today center, And

can't multiphase. do a with that You

enable our only technology. can with we're do degree directly through innovating to indirectly with with it to what set that some license model.And And our our -- You that's fab and

James Schmidt

it up. wrap We'll have to

you call. the could So if operator, close

Patrizio Vinciarelli

you. Thank

Operator

marks Thank the for Sure. nice your joining Thanks have everyone. of and That day. webinar. a you, end

Vicor (VICR) 22 Feb 242023 Q4 Earnings call transcript