VICR - Earnings call transcript Q1 2024

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Operator

Good day, everyone, and thank you for standing by. Welcome to the Q1 2024 Vicor Earnings Conference Call. [Operator Instructions]. Please be advised that today's conference is being recorded. I would now like to hand the conference to Jim Schmidt, Chief Financial Officer. ahead. go Please

James Schmidt

a and International press afternoon, Executive for upcoming This Trade Good of posted summarizing I'm to ending Corporation's D.C. from the Marketing; patent am Vicor Schmidt, President, today, page Davis, infringement Relations Thank Sales is we before Global first and months joining quarter closed ahead call and an our I the on and the Financial results issued Vinciarelli, XXXX. After with ended earnings Bill Chief Vice Chief Commission. press you. financial Patrizio website, the release the our been X for Officer, welcome www.vicorpower.com. markets Washington, over trial Officer, Investor of release the March Jim has XX. call XX, the March

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

from X.X% quarter revenue Brick declined the total Products sequentially sequentially. first press a and million. XXXX stated today's XX.X% XX.X% first quarter's total for $XX.X $XX.X release, product sequentially, down of for XX.X% revenue recorded advanced of Vicor revenue the Shipments quarter quarter As million, total total from down of to from first distributors Exports fourth revenue the of in stocking as $XX.X XX.X%. million declined while the to percentage the X.X% the decreased quarter. approximately from increased prior quarter XX.X% fourth

revenue. total Advanced For quarter share QX, Brick XX.X% of XX.X% Products with for of compared to decreasing to the Products share total revenue fourth to increased correspondingly XX.X%

in Total R&D our and compensation increased now expense goods, Turning including expenses mix, from approximately turn quarter increase [indiscernible] a lower $X,XXX,XXX freight expenses from to and margin gross profit $X.X operating income, million, being the I'll to equity-based tariff for to $X consolidated in QX margin of respectively, before legal $X,XXX,XXX, ahead XX.X% infringement trial costs. the SG&A in reductions patent factors with or We expenses. was the the contributed X.X% of primarily XX.X%, of royalty quarter. to amounts the percentage, totaling increased QX number of recorded ITC. increase gross operating increasing sales spending gross The total fourth prior sequential $XXX,XXX, margin. A approximately incurred improved and due million. case

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

totaled of representing per of provision of Turning for count recorded for taxes. diluted XX.X%. $X.X to for quarter share Net rate the fully million. income XX,XXX,XXX on a share earnings QX shares. effective income tax $X.XX diluted approximately million, We GAAP an QX tax was a $X.X based

trade $XXX.X QX million. $XXX.X XX DSOs and for of QX. our X.X% sequentially totaled net expenditures X-year now sequentially to with receivables and X balance quarter X.X% flow end, to million. Annualized address backlog reserves at net of to construction with $XX.X million the remaining approximately approximately million Cash for reserves totaled Inventories Capital primarily and cash backlog. million receivable prior at a to QX be equivalents I'll sheet. Operating $X.XX. increased Accounts in from Turning with spent. and closing cash flow balance of days. quarter, decreased inventory turns with manufacturing $XX.X $X.X cash at quarter totaled million came approximately the decreasing for quarter. at progress the for million bookings below ended $X.X in $XXX.X We million. totaled equipment and $XX.X book-to-bill

stated earnings in As a of February, and XXXX year call opportunity. in is uncertainty our

outcome terms of today, and the bottom line to of top range of line quarterly in annual scenarios. wide and As remains subject a

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

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

Philip Davies

Jim. you, this issued quarter release we My will that the press earlier Thank build today. remarks Patrizio's on comments in

pursue licensing of commented, confront challenges and of seen and XXXX and the future strategy, intellectual as Patrizio property which reminder, be a purpose profitability. we secured as Vicor's clarity As in growth opportunities, year product will selective our

chip that top So of the products let's density base production electrification we Industrial growth components LEO lies their will of our point at the both advances our AC Customers converters Business opportunities new raise current the new and look year, exciting fab Defense bar deployments. These radiation-tolerant launches systems, Aerospace systems. topologies, autonomy From and business and power from density in to Unit with are the at fixed products high-power aimed to control this advanced unit. and DC/DC now MEO in high-power DC the product with has to X packaging from utilize products and XX on of systems each our of business customers. power industry capabilities. and This regulated for our a designing The satellite XXX aerospace top units to view new over our them the the performance. for ratio and XXX of release and our factorized that constellation products power new business new leverage leverage family

our who Industrial customer have the reach market channel aerospace large needed As and the strategies, the distribution to also base, have market and global broad part our achieve defense partners growth distributors consolidated of to our status we and goals.

partners, Avnet bring a the recognize management electrification growth markets. base. that as placing They and trends strategic major to and on channel and in customer broad conversion clearly focus Arrow the business are and now a differentiation and due power global driver modules power transportation power higher a advantages high-density to Our industrial our their

and path clear growth out set concluded of partners, laying This on for by markets target specific targets with a clear a expanding our expand licensing to in vertical segment strategies is charging opportunity jointly quarter, market products X to that we we globally OEM that density electric customers map business XXXX. of rapidly Licensing will automotive as are OEMs X business. with powertrain XX-volt monetize this vehicles. aggressively scaling weight market, which enable XXX of more automotive and for both we The a XX-volt onboard and our architectures, become and an both important meetings product scale identified looking with automotive channel series focusing to low to systems, zonal technologies and numerous parallel high-power business particular, conversion will across and new will way deliver revenues our technology portfolio for units. of an our suppliers. Technology partnerships launch Tier licensing our for new the in relationships rapid

and a with of customers APs. simulations is representing our delivery new very to the Our enabling delivery, target power full AI their HPC X,XXX will Electrical chips innovative of customers, to chipset. advantage the engagements process X up expand dates achieving take with occurrence at been from in power strategic models set higher-performance now now losses that processes performance system Gen thermal to leading and vertical customer power continue production VPD and required. X low Generation delivered have

business QX X as track and for evaluation busy be QX We respectively. and in to Massachusetts. very are power hosted samples the our customers count, facility QX, at current Andover, Automotive in on deliver we unit module new will our systems

significant investments and zonal and Pacific zonal Detroit showcased with you. our leading OEM the opportunities. your product had power value Tier this architectures again in papers of power for successful the powertrains. questions. And collaborations will XX world. a take propositions XX-volt continue Xs provide WCX licensing gold in Thank technology X we now are vehicles where and electric The the that Asia very with with XX-volt with once revenue system new will module-based XXX-volt rest engagements and OEMs in team and both The New new design-ins architecture that, year region,

Operator

Instructions]. Bolton Quinn Company. with Needham [Operator &

Quinn Bolton

what you sort schedule, hoping if update on an you ITC over And happen with to follow I early could could next expected heard you decision of the is next of start sort believe milestones ITC October, I us be was provide but I next anything week, expect week? I think to but which to then the could case wondering going summer is helpful. expect was would the in give the what the the of until us you on would in be ITC the case date, you key -- what sort

Patrizio Vinciarelli

remain There's to to be and schedule. proceedings be going a to by forward next So deadline the on we averted. October. trial administrative September week that judge the point, to with decision look your an in outcome expect the a already We law

clear issues, or are prepared, But of the should going tones of we're trial, again, confident the and be or the everybody. We that's positive the our wrong clear outcome. and right side on are issues into side on to

Quinn Bolton

prepared the in in script, then to And both quarter. Great. mentioned press the the royalty March continued release increase revenue had the and has you

to if expect be you would an might quantify the uptick much that in royalty you through that, how remaining able continue quarters And grow March? of line to you of see XXXX? Just to then wondering did

Patrizio Vinciarelli

to license that as situations So events expect exclusion set in well royalty expand bottom in continue occur certain to be of OEMs with see. interest down our the to view to we following generally, respect can far we're it Vicor a there elect as And points at as as taking and line time. we But terms Vicor's may contribution of out. to interest with the opposed balance as lying with very revenues clear, be take to right opportunity confronted potentially to long-term that the the and a approaching up

Operator

And line Richard it with the Craig from Shannon of comes Hallum.

Richard Shannon

over product bookings second-gen I a getting expect guess here. of sense interlocking I've coming questions a your quarters and see revenues that on the of I the XG milestones we to of eventual wanted kind PPD got guess get next should to here. I couple towards

missed I some some about think past, in delivery, I talked models think tool of the which you've and that that. I detail I heard

-- maybe required that. ramp detail some manufacturing larger quarter, be should experience anything confidence Can be in please. for that talked more the delivered I then great, the you year, have this essentially looking some be support equipment we think that kind you to last customers of about to about here? need what would to And for

Patrizio Vinciarelli

Sure.

let's revenue opportunity. So start the with

a I far a we is made before long not with customers in opportunity, to of and XXXX of we're and long, initial year too think more. particularly as delivery is calls, revenue XG [indiscernible]. key one clear This with solutions prior

again So before I at we next development the volumes to year. with some leading will production look is fruition, this XXXX bringing setting get customers effort into stage

Richard Shannon

Okay.

intersect all it, this up here. follow XG the of is certainly kind me and last the for different accelerators, and Or to But ready generation you opportunity with CPUs, quarter by we something at not first that is is whatever do year the to Let way you at a the leading edge XG that lagging understanding looking GPUs, out be in I expect revenues there as able said X-nanometer might be then? guess, there? of to be

Patrizio Vinciarelli

I generation the we and performance other call would practiced least, from property is both attributes first on competitors a deal with from of by performance of capability, which high great difficulty premise by that our not and expectations, parented is the last the in the VPD self XG distinct perspective which current but second-generation perspective, the from ability a pioneer intellectual perspective. the being say solution, the VPD higher what much from density, our we

with I intellectual So customers other this a point them. issues, to is not we reliable, the to challenged at VPD touch Vicor to challenges. time, source in that with scalable, property now is all no property devoted scalable is the and engaged some understand And that the source. we're that visibility the and to system of get that issues by works believe for well, and

Operator

with It Securities. comes CJS from the line of Jon Tanwanteng

Jonathan Tanwanteng

if us an the for if potential lateral XX% wondering and for contribute was give active in might vertical programs there's you to if that? pipeline I product shipping, could update the XX% on that or

James Schmidt

which, I you for missed sorry, repeat? I'm potential could if the

Jonathan Tanwanteng

Lateral product. vertical the so between products, in

James Schmidt

Yes.

So more as depends will it we're looking view turns end with is let for. fill out, a I limited. this market potential the on think on asset global because Phil? the Phil particular color I with in which

Philip Davies

Yes.

lateral in from vertical used customers for have of market be type We've designs contract do network with designs. have some we engagement still So -- reference communications the with some Broadcom on for lateral seen manufacturers also vertical Asia. model the of processes the

some there So still next early year. lateral on end could vertical towards the year, be this revenues of

still for that's potential us. a So

Jonathan Tanwanteng

the happening Got is where like your scale to something the enabling HPC partners your IP automotive. people it. different allowing markets? to rapid And mentioned vendors there similar more from more you in allowing something in Or use are so it's -- designs? on licensing about Are this you quo status your produce then current to you

Patrizio Vinciarelli

opportunity referring So some of And involving property. bus I'm to conversion ago as architecture, as something once intellectual to conceived including XXX-volt the well of is the in, which licensing others, them you expression among market. we our there's is on are have solutions said attributes of solutions, other selective and respect for to [indiscernible] solutions, been XX open the to automotive again distinct interest, we predicated which which the with years XXX-volt,

in may licensing There some to have of these a we particular. automotive deals. expect over also number related to are of opportunities do now that I turn the in area some develop into beginning CDC. opportunities So are time,

Jonathan Tanwanteng

legal next out or you X quarter expect expense you ITC -- Okay. the X could up? and the case reps in the could you And Great. over break of the what Jim, then finally,

James Schmidt

driver said it. been remarks, predict to very on $X was as we the Patrizio to might expense stop I prepared I Like, the OpEx. close short would incremental legal on of primary he's obviously of the because trying Jon. And comment the all that, million let well future of

Patrizio Vinciarelli

Yes.

So relating quarter, upcoming for step-up was trial primarily significant week. to to Jim's the progressions a point, last next there

up. could a on keep Frankly, or scenarios. could of in down of position the they come expenses. level a legal stepping evolution not are they variety They We depending forecast to off

wanted it because those the keeping X up think take. could you I middle scenarios, would road pretty it of So of to additional the be again if much but alternative, one probably among step level actions might we pick

Operator

It comes from DB of the line McKenna & of Don McKenna Company.

Donald McKenna

exception been transcripts, results outlook you're what hope the positive. the that again, has obvious and that improve I'm your that with just of And opportunities, last the back comments positive. wondering what that that failure you in profitability? from and made products sales pretty read Patrizio, the on the always the the envisioned you've potential future if quite And superior to the the you it's And offering potential go you've quarter, markets sales approach in would for. capture learned produced and haven't you changes to are

Patrizio Vinciarelli

suggested visibility, of as well OEMs going I and on my to leading what their of would to I this challenges question answer has to high that part evolution a a level, of in vision that very with taken are. to our And system a have with in big of say think with them been we keep in certain product with general And respect what terms at it the development. of executing priorities calls, unique vagaries opportunities the from requirements. where perspective your our a are clear has believe we So the frankly, do is

importantly, the guess are certain are how into are. opportunity. make in how our XG We [indiscernible] to to of importantly, Some get every we And got the in OEMs Obviously, have decisions with stack. of leveraging competitive their performance our bind more power terms we superior And spending respect in think got destiny perseverance, share, our of the and strategy relative I clarity not apologetic persistence. they see choices we intellectual are. how that excited technology both terms most technology with those both say opportunity I have vision, and we're the I with going takes to been don't And a of control opportunity going real we where would made tremendous platforms. respect to that and to other market OEMs we where the capture to from system we property. Vicor.So that the of make I'm to of companies to fab, of starting quite with It

we all have and long be opportunity. too those trades, We on expect capitalized to far the

Donald McKenna

And term. realize expect short let's make I you road? would of Yes. a some projections percentage a you increase it's difficult down revenues would to Can to us current, over years satisfied X say, any for with? very for you where give as the on you try be What kind feel the

Patrizio Vinciarelli

honestly can direction. I that either give know you stations or numbers without don't I substantial in risk general

our say I expect I do think can we that to fab. fill

XXX we of opportunities with We're and to to As point, applications Phil's fab as fill capacity well able worth And the than markets. to top fab little a billion that. several in applications. maybe as relating undiversified has that to be type speaking going generally the automotive AI in $X earlier more know, center customers our got XG

Donald McKenna

you would in to X And that the fill next expect fab years?

Patrizio Vinciarelli

if wants that color Phil don't this. happen. expect I to some do know add I to will that,

Philip Davies

do say with BUs are X with that's great we're high-power XXX. it new the into broad-based No, I products our level, focus. the top year, that, that these top progress distribution X and that but we're And that the but objective the the market, XXX achieve channel XXX now not this is Gen And top just customers on with to making introducing new broad-based the we're focused would also just products getting on. the designed the to across front-end

I'm that of that I are we'll So confident ahead think path. times fill the us. exciting And some

Operator

Hicks with Capital. line Ainsley from comes It the Alan of

Alan Hicks

Yes.

say think XX% correct? XX% and Was heard products. on BBU I you on I that advanced

Patrizio Vinciarelli

that? you could here I'm little repeat audio a I'm my handicap today. with bit sorry,

Alan Hicks

Okay.

little were a over advanced the I BBU XX% XX%. that On little revenues, of and products, Was correct? think, over was percentage a

Patrizio Vinciarelli

That's correct.

quarter, change. Brick yes, advanced first mix the the and products For between products

Alan Hicks

Okay.

were So could we that assume royalties that X%? other

Patrizio Vinciarelli

I'm sorry, the royalties will?

Alan Hicks

Was so the added up it XX% to roughly. differential,

be would X%. differential the for roughly So

Patrizio Vinciarelli

know know on that and don't a make wouldn't quantitative I assumption. that. here. that can reporting I maybe I you as part measure comment give our Jim of I can

can point can where you additional information. to find You you

James Schmidt

with XX.X% about realty way advanced XX.X% Alan, Yes. said to the better income the is brick, is advanced, And associated it think XXX%. which we products. is

Alan Hicks

Okay.

did quarter? it last $X quarter, significantly grow believe, I was So last from million, it

Patrizio Vinciarelli

It grew.

James Schmidt

yes, up And It quarter. grow. substantially stepped last from it did

Alan Hicks

is factory? are margins gross also improving And Okay. the on -- factory the the

James Schmidt

for ahead go Patrizio. Sorry,

Patrizio Vinciarelli

that's was Okay. took Well, that be to an contributed so yes the is prepared with the to satisfied quarter, including remarks, issued last gross improvement line is margins. going facility actually this mix, are still reduction DNL in the And quarter. the that down pointed his But issues in say, factors in to all capacity factory respect margins. favorable that a mix, in with. the fact in we quarter, Jim the revenues trend licensing -- change step to tariffs, a last issue income, this in beyond to the total And significant revenues

that and IP product of element by selective respect the or substantially the of And capabilities goal through complementary goal we're implementing achieve supported I as in advances of, is the some effect, as licensing. that think our the a represented further higher executing that we strategies well in the to have mix value margins. we past monetizing to with with

Alan Hicks

So had. were best I you ever easily margins XX.X%. those think guys was gross the Bank

think margins and wrong, if quarter, Jim, correct the XX about right? change, gross me for I I'm

James Schmidt

Yes.

comment can that, Alan, So actually. I on

at been So that highest sure since XX.X% Vicor. the last was result and was the for quarter, I've

Alan Hicks

over back XX going got I've years.

Do royalty increases? continue on highest seen. year that rest expect the to ever the to grow the I've of that's you So based

Patrizio Vinciarelli

in making to going could in happen. Again, we're so year which much detailed be a prediction quarterly not

at are going investing we're us just think in I So term long look upon Vicor this. the to add that to going are ones to for the

call asked a a last analysts XXXX being question in year. the of transition one the about think I

hindsight, probably lot a at time, in effect, This didn't of characterization, year in the we of I it's it. better. change to of way think looking are think embrace I and a things expect is better for I the at the which, going the transition,

Alan Hicks

showed on NVIDIA showed it kind think not NBM February was about they month. Okay. Brush, asked and product. I And the I last Delta -- the they conference, it was I by And at stopped or the I said, have to But me shut and that "We're we comment process. know, don't all different they a or? can infringing that's said, you of because up.

Patrizio Vinciarelli

Yes. is come proceedings that The infringes to The copy patents. can our B&S far, leather thus mind. of fact X expectation. that products corroborated their And the

So let's exclusion them. wait see I to an what against what happens expect with be order

Alan Hicks

quick product. Okay. -- a question the on just And there was a

I showed for that WCX had is think XXX,XXX the charging it lots, that stations? I was DCC converted, at think,

Patrizio Vinciarelli

you that? answer could Phil,

Philip Davies

Yes, X case WCS. paralleled Patrizio. in on the had to was XXX that the in PSU XXX-volt of the the the it NBMs kilowatt out we was PSU, demo The demo that charger, XXX onboard

Alan Hicks

charging application But stations? is for the

Philip Davies

No, that's...

Patrizio Vinciarelli

application an where have for as major And not advantage. a as efficiency weight It's application a an major fast we well charging. it's advantage

measured of we in So of in That a liters small modules. moment, that has meaning the comprising be able fraction capability system to supports competition. X any with for. weight of peak it is its and power measured over ethical volume And a in reduced efficiency kilograms And a at of XXX XX%. density, get system our fact, kilowatt the to will number

Alan Hicks

the go that in So charging station? car the both and will

Patrizio Vinciarelli

charging. within vehicle going other incorporate that in the is to this certain facilitate makers device are to a order flexible No,

Alan Hicks

Okay. from are How wins there? far you design away

Patrizio Vinciarelli

designed We have with wins other makers. smaller X

Alan Hicks

last question. Okay. And one

years say going fill You $X whatever. in to to factory you're the or X billion

your to or are in manufacturing that's addition also So licensing products? OEMs whatever

Patrizio Vinciarelli

here could with Phil, to respond I feel hard you audio. I'm that? a time having my

Philip Davies

Yes.

our activities, Patrizio to is over as OEM goal $X of Yes. fab factory and billion the at that. that adding new So revenues of out licensing out product said, just

Operator

it from Capital. with line And of DMB the comes Dillon John

John Dillon

I I Biare seeing your processors that using finished, the factors prepared factory major in dates think production is and higher coming and your And heard of solutions? also market. you we GPUs we're remarks, POL When start say Now the manufacturing for watts X,XXX to from HPC. that seeing will evidence target

James Schmidt

So I think Patrizio talked John. about that,

system. towards production mentioned end as the prepared we're then in system in demo up be and XXXX. delivering -- And mechanical end remarks, when that I QX expect the have the that check of the the and of think we'll to That's follow that hardware sampling Then probably customers be and demo we'll we'll power the test now. we out models they'll to thermal I production. towards second the models right at with able QX, vertical of against leading a half delivery electrical

John Dillon

Is that what to... you're referring

James Schmidt

So then Patrizio, please.

Patrizio Vinciarelli

be There's one may next of to in notable is year. the come hardware beginning at months. delivered the that production the very customer that due well in for summer be And customer,

John Dillon

Or is Excellent. production And Phil, is about? that something talking different? that the target dates that were you

Philip Davies

target yes. the that's production No, dates,

John Dillon

about there act a will are go or designs to the bridge in production Gen production current And to in Got X as X? that you. Gen

Philip Davies

Yes.

vertical some and of changing been We market delivery Gen there some have comes pointed But strategies again, X wins. out, as power But ahead along. technology. chain with design supply people considerations have performance Patrizio with shifts

with be Xx X to with over incredible we the Gen have what solution current the technology, had. the We can an density get competition that will

we So I from number But of happen. being here some we think good interest hard made there will forward that move be really see great are we engagements that with that own processor and chips, expect, people the AI their them have they're accounts big developing would building some investments and have but we'll you as now. accounts, the and right very reassessments into really with

it XXXX. a having very be to Gen going can is So we're exciting be be. all X I'm confident that And to going

John Dillon

schedule And stay you're pretty will confident then on that the productization schedule?

Philip Davies

do to comment want personally but... you Patrizio, I'm that, on confident.

Patrizio Vinciarelli

I'm also confident.

are are processes build initial very, to are and were There in we be is of have capacity, the solutions have generally that steps you under most for capability a that order system few fab and for to we of fully going equipment some leveraging very to capacity panels refinement. But think that in the installed vetted. a units I up level to and have place, with used part, process deliver customers. scale still speaking, quantities and large the not

John Dillon

have product right alpha now? guys you So or working beta

Patrizio Vinciarelli

have that we we're partial June, time we're -- That frame. get systems a delivering the late into lead so be July but initial by delivery, followed year. complete the systems. others be of we going application to to the as customer to lead other in So We going part delivering started be functional some

Operator

& the of And Needham Company. Quinn with Bolton comes line from it

Quinn Bolton

Jim, the just revenue shipments so effectively that Or of for XQ place sort in quarter that a in of a of first place took 'XX? last shipments recognized the quarter for question it works. royalty on shipments in of took year? licensee the arrears, quarter, royalty, it calendar you The in is fourth your how is that

James Schmidt

time. It's take real on they based that [indiscernible]. basically shipments It's

in So -- arrears, in quarter. it's not but it's the

Quinn Bolton

Okay. on Perfect. Gen up Gen or following that, wondering what is around X Gen X, X deliveries, the for of just strokes, give the center of is AI John's in first the you a but could for sort application that application, broad And then if data of just HPC question assume customer customer? lead or sort us I that's sort

Patrizio Vinciarelli

the field customer at this don't and you surprise. this compliance having the of just want it's advantage We want element within to within we identified. really time, But give you full general that But first be point to It's defined. an specific. in the being

Operator

Craig-Hallum. line It Shannon of comes Richard from of the

Richard Shannon

focus advanced kind on give I've had split a understanding us in of as if sort other as following might has prepared year load And and revenues just that here, of kinds time at that in segment give can shareholders' Phil, a how probably heard is you last here, flavor guess, in your other your outside of of between you applications. HPC, product some of of then us bridging But your HPC also, some you remarks much as which Advanced this meeting functionality. of also of Products versus context, to alluded of point much and well. I

Philip Davies

Yes.

automotive number a advanced that about was company. So -- well, Advanced of -- of it now Products HPC. design that last growing a been think The new getting into bit that the oasis the aerospace quarter bulk satellite of I of don't total There's know more wins and like talking about. applications, XX.X%. it's today, Yes. as there. the and space kit, going was few we've was days a that's XX% product says, it's quite we revenue We're into early industrial, Yes. the cation revenues... in quite

it's really Richard. automotive, excluding units, those amongst business X So spread

Patrizio Vinciarelli

a markets our helpful. packaging product That's add to deviation fully different that of of better different control strategy that sets engines, I would strategy fill supported that line leverages among different conversion technology. trades the end that, and systems, per by commonality opportunities. That's with with

with So we so like needs applications VPD are may in able this the part that equipment way modules, to, to a to in effect, one test essentially markets, on be point-of-load car some of as address markets high another the XG in they're competition, speak. particular, modules, appear to in same. hand market and the and Investors type relative

Richard Shannon

question follow-on for quick a Patrizio. And Okay.

the a from lot in a and about consistently frankly, longer very current. advantage that time distinct at about power terms of we've covered having delivery You high talked you

X,XXX the that samples XG. any competitive going about of in you there? to market? to of above to terms a or up can that characterization we whatever credible the next only the kind of what or this think we so think solution be see the do could accelerators just future generation as X,XXX up if Is wonder at here about delivering characterize customers Amps I the you're Amps. the with In you talked You dynamics

Patrizio Vinciarelli

of So compute what can wafer. say I systems, we've a of power that's capability I from system to they're thousands already a able tens advanced capability the and amperes terms on the most -- would in solution market. of tell, in few to been up

cutting obviously up to common and preferable that's which So denominator the as edge Amp X,XXX the more Phil level. trending are suggested earlier, applications, type

VPD level. OEM involved has first reliability to earlier. been and a mention that very thermally we're do with in covered with to call but form the such difficult important heavy, evolves one development level, X,XXX be So with you gen yields issues you degree assembly in-app, with thick poor second the that as is it of I VPD. need a VPD what major to modules you to IP call that try to a power what you we at alluded system, could is very issues, high gen VPD and in very Yes, competitors, by a system not an Amp fundamentally, At advanced sack need the

we significant even So Amp vertical, out, relative only of bring lateral [indiscernible]. AI, the while in a left is particular, the as more in level characterized and generation the see what's to VPD And fundamentally, lateral, market quickly is to VPD benefits past needed good achieving a with challenges, version VPDs getting be solutions.The of X,XXX the lateral doesn't fundamentally advanced that about not first stacking going as vertical.

Operator

from Securities. Our Jon comes with CJS last Tanwanteng question

Jonathan Tanwanteng

me. shipping more those when the One I wondering in you if of update volume uptick of us you to products. automotive could start just from on and was expect

a that track. that of number starts before shipping good you've wondering a of 'XX VPD half second really think even now of the I automotive shipping for a your to if if on you expected difference. remains products be year source And that years be I'm making to in growth that's said start the going XXXX. and

Philip Davies

is This Phil.

ramps beginning. pull those may to X timing yet the from we've could reasonable automotive Pacific There 'XX Asia in, but no, opportunities had last really for in is months in that 'XX, the be develop. So that conversations are revenue that

is 'XX, really talk automotive. to a this But for early yet. those too it's story about 'XX So

applications. think, a year we last I for before, of remarks, quarter as high-performance even I begin, my will production or early this at end quarter -- the Although mentioned, production in

the So we're with that's automotive. that time think on of sort that, frame I

Jonathan Tanwanteng

Okay. Got it.

now, then what If HPC be you're were about? upside, of some be characterize these a whether likely market and applications be you the between which sort bridge most talking to will some or it one to of drive could automotive other or

Philip Davies

seeing definitely think industrial, that again, Yes. aerospace. very I And in as design are, wins and #X. HPC we defense good I ins and mentioned, is

really growth and Gen at that. to good there's coming could HPC X margins good completely just some be going So from dominate those markets. But

Operator

questions any showing not queue. further in I'm the

Patrizio Vinciarelli

you. Thank

James Schmidt

and thank you, Thank everyone, Okay. you, joining. for operator,

Operator

may And with and appreciate everybody, your we now participation, that, disconnect. you

Vicor (VICR) 23 Apr 242024 Q1 Earnings call transcript