11 November 2022
Transphorm’s quarterly growth dips, but product revenue still up 38% year-on-year
For fiscal second-quarter 2023 (to end-September 2022), Transphorm Inc of Goleta, near Santa Barbara, CA, USA — which designs and manufactures JEDEC- and AEC-Q101-qualified gallium nitride (GaN) field-effect transistors (FETs) for high-voltage power conversion — has reported revenue of $3.67m, down from $5.16m last quarter but up 11% on $3.3m a year ago (excluding the latter’s one-time licensing revenue of $8m, making $11.3m in total). Specifically, product revenue was up 38% year-on-year, reflecting another strong quarter from ramping shipments of GaN products for a broad range of power conversion applications.
“We continue to maintain our leadership position in high-power GaN, which comprised over 65% of our fiscal Q2 revenue, while winning marquee new designs in fast chargers and adapters, enabled by superior and easy-to-interface SuperGaN FETs,” says president, COO & co-founder Primit Parikh.
Highlights of the quarter are listed as:
- improving supply from Japan Epi reactors and completing the acquisition of additional metal-organic chemical vapor deposition (MOCVD) reactors;
- increasing shipments on a previously announced Fortune 100 laptop adapter win, a top-three worldwide laptop manufacturer, and securing a new Fortune 100 laptop adapter design-win;
- strengthening senior operations, sales and marketing teams with the addition of industry leaders;
- securing an ARPA-E program to innovate on Transphorm’s unique bi-directional GaN technology (which replaces 2-4 silicon devices with a single FQS GaN in applications such as micro-inverters and motor drives);
- securing approval for a Shenzhen, China WFOE (wholly foreign-owned enterprise) to enhance local customer support, sales, field applications and marketing;
- expanding package offerings by adding industry-standard PQFN products (which enable pin-to-pin compatibility with multiple sources), complementing Transphorm’s existing high-performance PQFN products — both validated to deliver superior results versus competing GaN.
On a non-GAAP basis, operating expenses were $5.1m, up on $4.5m a year ago but cut from $5.4m last quarter.
Net loss was $5.12m ($0.09 per share), compared with $4.55m ($0.08 per share) last quarter and a net profit of $3.62m ($0.09 per share) a year ago. Cash, cash equivalents and restricted cash as of end-September were $34m.
“This quarter saw solid execution and lower operational burn despite reduced revenue,” says chief financial officer Cameron McAulay. “The company remains well-positioned with a solid balance sheet to continue to invest in staffing and capital equipment to realize its short- and long-term objectives,” he adds.
“We are also executing on our stated plan of increasing capacity, with notable improvements from our Japan Epi reactors, giving us confidence we can better address demand,” Parikh says.
“We exceeded our fiscal Q2 revenue target and remain well-positioned to resume revenue growth of 20% sequentially in fiscal Q3, with the opportunity to achieve 25%, despite persistent macro-economic headwinds,” says Parikh. “We continue to aggressively pursue new customer wins and are fulfilling our existing backlog, while managing both internal and external supply chain constraints. With our wide range of product offerings, and notably high-power GaN, we continue to be well-positioned for growth across multiple market segments – including consumer, data centers, blockchain, and industrial. We also continue to pursue near-term opportunities in two-wheel and three-wheel EVs and longer-term opportunities in the automotive EV market,” he adds.