AES Semigas


16 August 2023

Transphorm quarterly revenue grows 14% year-on-year to $5.9m, boosted by Government contract revenue

For its fiscal first-quarter 2024 (to end-June 2023), 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 $5.883m, up 14.1% on $5.16m a year ago, and up 84% on $3.192m last quarter due to the delay in securing a new government contract with the $15m National Security Technology Accelerator (NSTXL) to manufacture GaN epiwafers under the ECLIPSE project, recognizing revenue of $2.9m during the quarter.

There was hence roughly an equal split between Government contract revenue (which was up $2.2m year-on-year) and Product revenue (which was down slightly from $3.2m last quarter to about $3m).

Nevertheless, the firm has achieved continued capacity increases, with record monthly epiwafer output from its epiwafer operations in Japan, and released two additional reactors for process development at GlobalWafers’ epiwafer operations.

Gross margin was 36%, up from just 5% last quarter, and exceeding the expected 30–34%.

On a non-GAAP basis, operating expenses were $6.83m, up from $5.43m a year ago but cut from $7.55m last quarter.

Net loss was $4.5m ($0.08 per share), up on $4.23m ($0.08 per share) a year ago but cut from $7.24m ($0.13 per share) last quarter, and outperforming the expected $0.10–0.13 loss per share.

During the quarter, cash, cash equivalents and restricted cash fell by $12.7m, from $16m to $3.3m. But this was due mainly to Transphorm, in April, fully repaying its $12m loan from Nexperia (and ending its exclusivity for Nexperia in the four-wheeler electric vehicle segment).

Also, this does not include gross proceeds of $7.94m ($7.6m net) from the rights offering concluded at the end of July. “We are now beginning our previously announced strategic review of Transphorm with the goal of maximizing shareholder value, encompassing potential strategic and/or traditional equity or debt financing, US and Asia-based licensing opportunities, and M&A opportunities,” says the firm.

Subsequent to the quarter-end, $2.9m in cash was received from the execution of the NSTXL Government program.

Business highlights during the quarter are listed as:

High-power segment update

  • Total design-ins for higher power (300W–7.5kW) grew by 25% from the prior update of 60 in June to over 75 (with over 30 in production), with traction in segments such as micro-inverter and computing.
  • Multiple 1.5–7.5kW-range Titanium-rated power supplies with Transphorm GaN in production validate opportunities in AI computing and data-center power, enabling higher efficiencies and higher power densities, from power gaming graphics cards to data-center power supply units (PSUs), with fundamental patents for the underlying GaN topology.
  • Transphorm achieved the industry milestone of demonstrating up to 5μs short-circuit withstand time (SCWT) using a patented approach, and in collaboration with Yaskawa Electric Corp, proving the firm’s ability to meet the required SCWT capabilities of rugged power inverters such as servo motors, industrial motors, and electric vehicle power-trains served traditionally by silicon insulated-gate bipolar transistor (IGBTs) or silicon carbide (SiC) MOSFETs —  a total addressable market (TAM) for GaN of over $3bn.
  • Transphorm is working on multiple 300W–2kW charger platforms at leading Asia-based electric 2- and 3-wheeler companies, including a top-3 market leader company in India.
  • The firm demonstrated a 600W battery-charging solution with Super GaN FETs achieving over 1% efficiency gain (14% loss reduction) versus silicon superjunctions while reducing power device count by 25% in a smaller GaN device versus a silicon device – cheaper than silicon, with higher performance.
  • The position in the automotive EV market was strengthened through 1200V FET advancements: a simulation model was released and is receiving interest from both tier-1 automotive OEMs and ODMs.

Low-power segment update

  • Total design-ins for power adapters and fast chargers (<300W) grew by 10% from the prior update of over 90 in June to over 100 (with over 30 in production).
  • Multiple notebook charger designs, including inbox wins, are now shipping for several of the top-5 OEMs, with production at tier-1 ODMs.
  • Traction was achieved with the firm’s SiP strategy with versatility in using the same Transphorm FET for 65W and 100W adapter designs, a crossover not possible with competing E-mode GaN.
  • Transphorm secured a system-in-package (SiP)-based design win that is expected to ramp to multi-million units annually, starting in fiscal second-half 2024, at leading OEMs supplying diversified consumer power accessory products.

Return to sequential product revenue growth in September quarter

Transphorm has continued to grow its 5-year pipeline opportunity — by 3% from the previous update of $440m in June to over $450m now. With traction in design-ins and design wins of the past few quarters, and opportunities nearing production, the firm expects to resume sequential product revenue growth in fiscal second-quarter 2024 (to end-September 2023).

“Our differentiated and highly patented products/platforms for the high-power segments are gaining momentum in key targeted market areas — computing, energy & industrial and EVs,” president, CEO & co-founder Primit Parikh. “Additionally, the net proceeds from our rights offering, together with an anticipated non-dilutive debt financing, will enable us to continue to execute on our long-term growth plans and, along with the strategic review process, allow for enhancing and maximizing shareholder value,” he adds.

“A combination of our wins in the market, our pipeline and our strengthened balance sheet all will enable us to maximize growth in the future,” concludes chief financial officer Cameron McAulay.

See related items:

Transphorm’s GaN first to hit short-circuit robustness milestone key for motor drives

Transphorm’s rights offering raises $7.94m

Transphorm’s full-year product revenue grows 21%

Transphorm wins $15m contract from US National Security Technology Accelerator

Transphorm appoints co-founders Primit Parikh and Umesh Mishra as president & CEO and chair

Transphorm releases simulation model of first 1200V GaN-on-sapphire device

Transphorm’s product revenue grows 25% in December quarter

Transphorm’s quarterly growth dips, but product revenue still up 38% year-on-year

Tags: Transphorm GaN-on-Si GaN HEMT


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