AES Semigas


29 November 2023

Transphorm quarterly product revenue grows 18% sequentially to higher-than-expected $3.55m

For its fiscal second-quarter 2024 (to end-September 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 revenue of $5.01m, down 15% on $5.883m last quarter but up 36.5% on $3.67m a year ago.

Product revenue was a higher-than-expected $3.55m, up 12% by $0.4m on a year ago and 18% on about $3m last quarter.

Government contract revenue was $1.46m, halving from $2.9m last quarter but still up by $1m year-on-year.

Gross margin was a more-than-expected 23.4%, down from 35.5% last quarter due to lower mix of government contract revenue, but up by 11.5% year-on-year. “We continue to progress toward our long-term model of gross margins in excess of 40%,” says chief financial officer Cameron McAulay.

On a non-GAAP basis, operating expenses were $6.4m, up from $5.2m a year ago but cut from $6.83m last quarter.

Net loss was $7.1m ($0.12 per share), up from $6m ($0.10 per share) a year ago but cut from $7.4m ($0.22 per share) last quarter.

Adjusted EBITDA was -$5m ($0.08 per share), up from -$4.5m ($0.08 per share) last quarter and –$4.6m ($0.08 per share) a year ago.

During the quarter, cash, cash equivalents and restricted cash rose from $3.3m to $6.152m, after a rights offering of common stock at the end of July raised $7.94m.

“We meaningfully reduced cash burn from $6.8m for the first quarter of fiscal 2024 to $5.1m for Q2 fiscal 2024, and we continue to have zero debt on our balance sheet, which puts us in a strong position to secure additional non-dilutive funding,” says McAulay.

“We engaged BofA Securities to advance our previously announced strategic review process, and we are continuing this process as we seek to enhance stockholder value, pursuing multiple options that include the potential merger or sale of the company,” says CEO & co-founder Dr Primit Parikh.

Highlights during the quarter are listed as:

High-power segment

  • Increased total design-ins for higher power (300W–7.5kW) to over 100 (with over 35 in production), an increase of more than 30% from the prior update in August of 75, with an estimated 75% plus conversion rate in the markets from design-in to in production.
  • Breakthrough production win with solar inverter player - Transphorm’s GaN platform is powering the world’s first integrated photovoltaic (PV) systems from DAH Solar Co Ltd (Anhui Daheng New Energy Technology Co Ltd), enabling it to produce smaller, lighter and more reliable solar panel systems that also offer higher overall power generation with lower energy consumption.
  • Introduced three SuperGaN FETs in surface-mount devices (SMD) TOLL packages supporting higher-power applications operating within an average range of 1–3kW typically found in high-performance segments such as computing (AI, server, telecom, data center), energy and industrial (PV inverters, servo motors), and other broad industrial markets.
  • Expanded the firm’s package option portfolio launching the SuperGaN TOLT FET with an on-resistance of 72mΩ, the industry’s first top-side-cooled surface-mount GaN device in the JEDEC-standard (MO-332) TOLT package.
  • Initial sampling of the TO-247-4 lead package (drop in with silicon and SiC solutions), with recent internal tests demonstrating 25% lower losses versus similar SiC MOSFET offerings from a global top-3 supplier, increasing the socket penetration opportunities with new and existing solutions.
  • Transphorm is actively engaged with multiple global customer partners for high-power GaN in these new surface-mount packages, a global leader in the micro-inverter space, lead customers in server and storage power, an innovative manufacturer for off-grid power solutions and a leader in satellite communications.
  • Released 300W and 600W Electric 2- and 3-wheeler charger power supply designs and successfully designed into two of the top five India OEMs in 2-wheeler battery chargers.

Low-power segment

  • Increased total design-ins for power adapters and fast chargers (<300W) to over 115 (with over 30 in production), an increase in ongoing design-ins of 15% from the prior update in August.
  • Expanded the firm’s system-in-package (SiP) strategy to over five IC partners, to enable faster growth in this segment.
  • Continued to expand sockets at two of the top three worldwide laptop OEMs in multiple power levels – both at 65W and higher range from 100W to 360W.

Five-year pipeline increased from $450m to $475m

Transphorm continued to grow its five-year pipeline opportunity — now at over $475m, of which about 70% is in high power, and also up 5% from the prior update in August of $450m. With traction in design-ins and opportunities entering or nearing production, the firm expects a continuation of its sequential product revenue growth in fiscal third-quarter 2024.

“We were pleased with the continued growth of our pipeline and our design wins, highlighted by record growth in high-power design wins,” says Parikh. “We anticipate continued strong growth in product revenue in our third fiscal quarter as we realize the benefits of converting our burgeoning design-ins into revenue-generating contracts.”

See related items:

Transphorm launches first JEDEC-standard top-side-cooled surface-mount TOLT GaN transistor

Transphorm launches 650V SuperGaN FETs in TOLL packages with on-resistances of 35m Ω, 50m Ω and 72m Ω

Transphorm’s GaN powers first integrated micro-inverter PV systems by DAH Solar

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

Transphorm’s rights offering raises $7.94m

Transphorm’s full-year product revenue grows 21%

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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