Release Date: August 08, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Indie Semiconductor Inc (INDI, Financial) achieved total revenue of $52.4 million in Q2 2024, aligning with the automotive market trends.
- The company is the only chip vendor offering all four key ADAS sensors: radar, vision, LiDAR, and ultrasound, providing a unique competitive advantage.
- Indie Semiconductor Inc (INDI) has achieved significant milestones in radar technology, including full functional verification of their 77 gigahertz radar program.
- The iND880 computer vision solution has been selected for high volume production programs by several global OEMs, indicating strong market acceptance.
- The company has shipped 400 million chips cumulatively, reflecting its broad and global customer base and product differentiation.
Negative Points
- Revenue for Q2 2024 was flat year over year, coming in at the low end of the company's outlook due to unfavorable macroeconomic conditions.
- Non-GAAP gross margin was slightly below plan at 50.3%, primarily due to an unfavorable product mix.
- The automotive market is experiencing reduced semiconductor content due to lower consumer pricing specials and reduced global electric vehicle stimulus programs.
- Indie Semiconductor Inc (INDI) anticipates flat to low single-digit negative growth for the automotive semiconductor industry in 2024.
- The company experienced temporary short-term delays in the start of production for some programs due to overall macroeconomic conditions.
Q & A Highlights
Q: Can you characterize the current auto inventory digestion cycle and its impact on the second half of 2024?
A: Donald McClymont, Co-Founder and CEO, stated that the inventory situation is significantly improving, although it persisted longer than expected. He anticipates more flexibility going forward into the second half of the year.
Q: Regarding the lead radar program and other programs in 2025, when can we expect revenue contributions, and what factors might impact their commencement?
A: Donald McClymont explained that the radar program involves ramping through multiple OEMs, which will take time to reach full volume. He expressed confidence in the program's progress and noted that engineering risks have been mitigated.
Q: What happened to the company-specific ramps that were expected to drive growth, and how does this affect confidence in future programs?
A: Donald McClymont assured that no programs were lost, although some delays occurred due to macroeconomic conditions and restructuring at major automotive companies. He remains confident in the future growth trajectory and design win momentum.
Q: Are you seeing any impact on pricing or gross margins due to inventory levels at Tier 1s and others?
A: Donald McClymont confirmed a return to just-in-time inventory levels but noted no material pricing impact on gross margins.
Q: Can you provide an update on the radar programs with Bosch and Ficosa?
A: Donald McClymont confirmed that the programs with Bosch and Ficosa are on track and slated to ramp next year, with progress being satisfactory.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
