Aug 12, 2026 earnings call — Advanced computing growth and September guidance
Company reported June-quarter revenue $170.4 million and guided September revenue about $176 million, plus or minus $10 million.
Revenue $0.2B (est $0.2B) · EPS $-0.13 (est $-0.24)
Key quotes
"As our portfolio expands into higher performance applications, we are increasing content per platform, broadening customer adoption and strengthening our competitive position in AI infrastructure."
"For the September quarter, we expect Consumer segment revenue to decline approximately 25% sequentially, primarily reflecting lower revenue in Home Appliances, Wearables, and Gaming."
"A couple of days ago, Shanghai experienced Typhoon Dolphin and flooding that impacted portions of our packaging operations. We expect a slight impact to the September quarter."
Analyst Q&A 4
Why gross margin rose and drivers
Q (Tore Svanberg · Stifel): They asked how much of the gross margin improvement came from utilization versus pricing and product mix, where utilization is now, and how to think about Advanced Computing as a growing segment into fiscal 2027.
A: Management said the June-quarter margin rose about 200 basis points mainly from better product mix, with a smaller portion from utilization and operating expenses. They guided another 70, 80 basis points improvement for the September quarter and a net-guidance of 24.5%, and said Advanced Computing (AI/server) is becoming a larger, higher-margin part of the business.
"A little bit bigger portion was because of the product mix, and then a smaller portion was because of the utilization and operation expenses." — Yifan Liang (CFO)
Advanced Compute growth, 800V, R&D, flooding
Q (Tyler Burmeister · Lake Street): They asked how much Advanced Computing growth was new wins versus ramps, timing for 800 volt revenue, whether the $46.5 million OpEx guide is a new run rate, and how big the flooding impact is in the September guide.
A: Management said Advanced Computing growth is a mix of new program wins and ramps of existing sockets and is spreading across more customers. For 800 volt, they said it is coming and they might see some business next year but it is too early to forecast; R&D spending is being increased with modest further growth as hires are filled; the initial flooding impact is in the range of a few million dollars and also affects margins in the September guidance.
"So our initial assessment right now is in the range of a few million dollars and some impact on our margins, also kind of reflected in our September quarter guidance." — Yifan Liang (CFO)
PC, graphics, communications seasonality, R&D plan
Q (Craig Ellis · B. Riley): They asked what happened in the other Compute subsegments (notebook, graphics), what customers expect for build intensity going into fiscal Q2, and whether the higher R&D spend is a one-time step or will persist into next year.
A: Management said standard PCs grew modestly in the June quarter but September should be an adjustment because customers face memory and CPU shortages, and graphics had no major new platforms this year (next release expected next year). They said September is the main correction for PC builds, December is unclear, and the R&D step-up is mostly planned for this calendar year with next year returning to more organic growth.
"So in this calendar year, mainly the story is about PCs and dealing with the memory shortage." — Stephen Chang (CEO)
Will AI mix keep margins rising?
Q (Patrick Muth · Needham): They asked if margins should improve mainly because AI mix shifts, whether there is a ceiling to how much AI can offset weakness elsewhere, and the magnitude of margin improvement in the second half of the calendar year.
A: Management said they are still in ramping mode for many AI/high-performance products that were released late last calendar year or early this calendar year. They expect the segment to continue to grow as they win more projects and add customers, and they did not provide a specific ceiling or a quantified magnitude of gross-margin improvement on the call.
"And so in general, we expect to see this segment continue to grow in the coming quarters and as we win more projects and as we open up into more customers." — Stephen Chang (CEO)