Oct 29, 2026 earnings call — Record design wins and data center momentum
Company reported Q2 sales of $277 million, a 29% year-over-year increase.
Revenue $0.3B (est $0.3B) · EPS $0.26 (est $0.24) · Next-quarter revenue outlook $0.3B–$0.3B
Key quotes
"In Q2, we delivered our highest quarterly design win performance since our 2020 IPO, with total design wins increasing nearly 40% year-over-year."
"Data center sales in Q2 were a record $46 million, growing more than 150% year-over-year, and we remain on track to more than double our data center sales in fiscal 2027."
"As a reminder, our dollar content per braking system can increase by roughly 4x when an automaker transitions to electromechanical braking, otherwise known as EMB."
Analyst Q&A 10
capacity plans for growing demand
Q (Joe Quatrochi · Wells Fargo): Are you changing capacity plans because demand is accelerating? How will you chase this demand and fix any back-end constraints?
A: Management said wafers are not constrained but back-end test capacity is tight. They will add capital and roll on capacity in FQ3 and FQ4 to stay ahead of growth. They are also using additional OSATs and Philippine space to help assembly and test.
"We will be rolling on capacity in both FQ3 and FQ4 to stay ahead of the growth." — Mike Doogue (CEO)
data center growth and current sensors
Q (Tom O'Malley · Barclays): Why was data center growth more muted this quarter versus prior quarters? Also please provide the current sensors percentage of the data center bucket if possible.
A: Management said data center had strong growth overall, with FQ2 up more than 150% year-over-year. They said design wins for current sensors in data center more than doubled in the quarter and they will not disclose the current-sensor split every quarter.
"In the quarter, our design wins for current sensors and data center more than doubled." — Mike Doogue (CEO)
auto inventory and pricing impact
Q (Chris Caso · Wolfe): What are you seeing on Tier 1 auto inventory and will they begin restocking? Also, was pricing a meaningful factor in the quarter and will upcoming price changes help gross margin?
A: Management said many automotive customers still have very low single-digit weeks of inventory and are only talking about bumping inventory up; there has not been much restocking activity yet. They said pricing was not a meaningful impact in Q2, with more price increases coming in Q3 and auto contract resets on January 1, which should favorably impact gross margin in upcoming quarters.
"There has not been much activity. It is mostly been conversations at this point regarding that type of inventory discussion." — Mike Doogue (CEO)
data center program timing and auto mix
Q (Blayne Curtis · Jefferies): Why was the September data center quarter flatter and when will the large programs layer in? Also, any update on auto growth drivers and Focus Auto mix?
A: Management said the June quarter was a big ramp and some large programs were pushed out a quarter or two, often due to delays on some 800-volt hyperscaler programs, but those programs are coming very soon. They also said both Focus Auto and ICE/safety grew 4% sequentially and 11% year-over-year, and the auto design-win mix has shifted toward ADAS and xEV, growing from about 35% to 55% of automotive revenue.
"These big programs are on the come, and they will happen in the very near future." — Mike Doogue (CEO)
long-term growth target and distribution inventory
Q (Gary Mobley · StoneX): If design-win lifetime value is rising strongly, why is the long-term target only mid-teens growth? Also, is distribution inventory within target range?
A: Management said the mid-teens target was the Analyst Day ambition but they see potential to exceed it given automotive and industrial momentum and strong data center trends. They also said distribution inventory is right in the middle of their 10-12 week target range on a global basis and has been there for the last three quarters.
"Yeah, Gary, it is actually smack in the middle of that range on a global basis, and it has been there for the last three quarters." — Derek D'Antilio (CFO)
December quarter drivers and Gen 2 gate drivers
Q (Quinn Bolton · Needham & Company): Will December quarter growth be led by auto or industrial? And is the isolated gate driver win you mentioned the first for that family and is the new part part of Gen 2?
A: Management said the December quarter historically declines but this year is above seasonal and they expect it to be led by auto with continued data center strength. They said they have had isolated gate driver wins before, the solar win is larger, and their Gen 2 isolated gate driver products are sampling in the current quarter with strong customer interest.
"As for these Gen 2 products you mentioned, they are sampling in this current quarter." — Mike Doogue (CEO)
800-volt timing and gross margin path
Q (Vijay Rakesh · Mizuho): When could 800-volt isolated gate drivers start to ramp? And how should we think about inputs, pricing, and mix as you move toward mid-50s gross margin?
A: Management said isolated gate drivers will add significant incremental content beyond the $425 per rack figure and they had previously given an 18-24 month horizon for the ramp, though they could beat that timing. They said gross margin progress is driven mainly by operating leverage, bill-of-material and manufacturing cost reductions, and pricing actions, with the company moving toward mid-50s over time.
"I think we could beat that previously mentioned timing, but only time will tell." — Mike Doogue (CEO)
bookings to revenue and design-win timing
Q (Liam Farr · BofA): How will strong bookings convert to revenue — near-term backlog or into fiscal 2028? And what is the typical lag from design win to revenue by market?
A: Management said orders on the books extend a couple of quarters and some are already pushing into FY 2028, and they feel good about the next few quarters. They said fast markets like data center and robotics can ramp in 6-12 months, while automotive design wins now often ramp under a year to about 18 months; they track CapEx trends closely to plan capacity and visibility for 12-18 months.
"Let me kind of answer those questions in reverse. When I think of the growth rate of our business, our data center business going forward, I am always looking at the CapEx spending trends." — Mike Doogue (CEO)
balance sheet inventory and humanoid robotics
Q (Srini Pajjuri · RBC): Why did inventory come down despite strong bookings, and is supply becoming a constraint? Also, is input-cost inflation behind us and how big is humanoid robotics revenue now and next 12-18 months?
A: Management said the quarter-over-quarter inventory decrease was mainly finished goods shipped to satisfy distributor demand, and wafer and die-bank inventory remain healthy so they are not wafer-constrained today; any constraints are mostly at back-end test. They said input-cost inflation is ongoing with some supplier contracts and commodity pressures around January, and they reiterated factory automation and robotics will be about 3%-4% of sales in FY 2027 while humanoid robotics could have many times the content of existing robots.
"The decrease in inventory quarter-over-quarter was primarily finished goods as we shipped a couple of million dollars of finished goods to satisfy demand, particularly within distributors." — Derek D'Antilio (CFO)
800-volt impact and CPU cooling
Q (Joshua Buchalter · TD Cowen): How much of data center revenue is driven by the 800-volt transition and how much ties to accelerated servers versus CPUs? Any uptick in air-cooling demand?
A: Management said last quarter 22% of data center revenue was from current sensors, which are used in power systems and are even more useful at 800 volts; they are seeing more 800-volt DC platforms and are pleased with initial content. They also said renewed CPU demand helps their fan business since CPUs will still be air cooled and power supplies are not likely to be liquid cooled, so fan growth from CPUs and power supplies remains intact.
"They are even more useful at 800 volts." — Mike Doogue (CEO)