Q2 2024 Monolithic Power Systems Inc Earnings Call Transcript
Key Points
- Monolithic Power Systems Inc (MPWR) reported a record Q2 2024 revenue of $507.4 million, exceeding the high end of their guidance.
- Strong revenue growth was driven by increased demand for AI power solutions, improving order trends in several end markets, and initial revenue ramps from past design wins.
- The company continues to expand and diversify its global supply chain to ensure supply stability and capture future growth.
- Monolithic Power Systems Inc (MPWR) is transitioning from being just a chip supplier to a full solutions provider, with solution sales now accounting for 20-25% of total revenue.
- The company has significant opportunities in the AI market, with AI-related revenues growing from 1-2% to 20% of total revenue, indicating strong future potential.
- The near-term outlook for the automotive segment remains uncertain, with expected uplifts not materializing as anticipated.
- Seasonality and inventory oscillations make it difficult to forecast future performance accurately.
- The company faces challenges in predicting the exact timing and impact of new design wins and market recoveries in non-enterprise data segments.
- Revenue from new ventures like silicon carbide power supplies for data centers is still small and in the early stages of development.
- There is some uncertainty regarding the need for export licenses to ship products to certain customers, such as Huawei, which could pose potential risks.
Welcome, everyone, to the MPS second-quarter 2024 earnings webinar. My name is Genevieve Cunningham, and I will be the moderator for this webinar. Joining me today are Michael Hsing, CEO and Founder of MPS; Bernie Blegen, EVP and CFO; and Tony Balow, Vice President of Finance.
Earlier today, along with our earnings announcement, MPS released a written commentary on the results of our operations. Both of these documents can be found on our website. Before we begin, I would like to remind everyone that in the course of today's presentation, we may make forward-looking statements and projections within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risk and uncertainty.
Risks, uncertainties, and other factors that could cause actual results to differ from these forward-looking statements are identified in the Safe Harbor statements contained in the Q2 earnings release and in our SEC filings, including our Form 10-K, which can be found on our website. Our statements are
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