The moderator, Genevieve Cunningham, introduces the speakers and outlines the purpose of the webinar. She mentions the potential risks and uncertainties involved in the projections and statements that will be discussed. The company's financial measures will be discussed on both a GAAP and non-GAAP basis, with the reconciliation included in the earnings release. The conference call is being webcast and will be available for replay. Bernie Blegen then begins discussing the company's record revenue for the full-year of 2023.

MPS has announced its expansion into a new $1 billion market through the acquisition of Axign B.V., a Netherlands-based startup specializing in programmable multi-core digital signal processors. This partnership will enhance the audio experience in various settings, such as cars, homes, concert venues, and stadiums. In the past year, MPS has seen growth in its automotive and enterprise data segments, driven by increased sales in advanced driver assistance systems, digital cockpit, lighting, and power management solutions for AI applications. The company has also expanded its global R&D footprint and diversified its operating footprint with the qualification of new partners.

In 2023, Enterprise Data revenue accounted for 17.7% of MPS' total revenue, with a significant increase in storage and computing revenue due to higher sales of notebook products. However, Communications revenue decreased by 18.5% due to lower sales of 4G and 5G infrastructure. Industrial revenue also decreased by 21.2% primarily due to lower sales in industrial automation, security, and power sources. Consumer revenue saw a significant decline of 26.6% due to market weakness. Customer ordering patterns were uncertain throughout 2023, and while there was a slight improvement in Q4, visibility for future quarters remains limited. Despite this, MPS continues to invest in new products and design wins to position for future growth. In Q4, MPS had a revenue of $454.0 million, down 4.4% from Q3 and 1.3% from Q4 of 2022.

In the fourth quarter of 2023, there was an 88.4% increase in revenue for enterprise data, while storage and computing, automotive, consumer, communications, and industrial all saw decreases. The GAAP gross margin was 55.3%, down from the previous quarter and the same quarter the previous year. Non-GAAP gross margin was 55.7%, also down from the previous year. Operating expenses were $141.6 million for GAAP and $96.7 million for non-GAAP, with the difference being primarily due to stock compensation expense. GAAP net income was $96.9 million, while non-GAAP net income was $140.9 million. Fully diluted shares outstanding were $48.9 million.

The balance sheet for the company as of December 31, 2023 shows an increase in cash, cash equivalents, and investments compared to the previous quarter. Operating cash flow for the fourth quarter of 2023 decreased compared to the third quarter, and capital spending totaled $13.8 million. Accounts receivable decreased slightly and there was an increase in days of inventory. The company is forecasting Q1 2024 revenue in the range of $437.0 million to $457.0 million and expects GAAP gross margin to be between 55.1% to 55.7%. Non-GAAP gross margin is expected to be between 55.4% to 56.0%. Operating expenses are estimated to be between $147.2 million and $151.2 million for GAAP and $101.8 million to $103.8 million for non-GAAP. These estimates do not include stock-based compensation expense or amortization of intangible assets, but do include litigation expense and expenses from the recent Axign acquisition.

The article discusses the expected range of other income and fully diluted shares for the company, as well as their share buyback program and increase in quarterly dividend. The company remains cautious about near-term business conditions but is confident in their long-term growth strategy. The Q&A session includes a question about the company's expectations for enterprise data and their potential to expand their customer base. The company believes that competition in the supply chain will continue.

The company has had a high market share, but it is expected to decrease as they introduce new suppliers. The market segment is growing rapidly and they are expanding production to meet demand. There may be a decrease in dollar content per win as competition increases, but the company is focused on solving technical problems and lowering costs. With each new generation of products, power requirements for AI are increasing.

In the next version of the product, the power will be even higher. The company started developing this product a few years ago and plans to release it in the next few quarters. In the last 90 days, the auto market has slowed down, but the company still expects growth in the high 20-30% range due to infotainment and digital cockpit products. The company anticipates a higher volume ramp in the EV sector in the first part of this year.

Bernie Blegen and Michael Hsing discuss the softness in Q3 and Q4 of last year for IC and EVs, and state that it's hard to predict the ramp for automotive in the second half of 2024. They mention the lumpy nature of EV adoption and the trend of more EVs using their products. They also discuss their dominance in second stage 48-volt and their expectations for share and revenue contribution with their new Stage 1 power product. They mention new competition in the 48-volt market and state that their customers are receptive to their solutions. They also mention ongoing issues related to their systems and express confidence in their position as the best performer in the market.

The company does not intend to eliminate MPS, as they have been successful in entering new markets in the past. They expect to see an increase in Stage 1 contribution this year and have resolved any previous issues. They have also started supplying modules in addition to chips for 48-Volt systems.

The interviewer asks two questions about the company's recent acquisition and its traditional approach to M&A. Michael Hsing, one of the company's founders, clarifies that they do make acquisitions but only when it benefits their shareholders. He discusses the benefits of the recently acquired company, Axign, and their technology in audio signal amplification. The company has been working with Axign for three years and has proven their success in high-end products. The cost is low and the technology is programmable and adaptable through software.

In this paragraph, the speaker discusses the growth of the company and its plans for the future. They mention how they have been able to bring audio quality to homes at a lower cost and how this will revolutionize listening. They also discuss the growth driver being enterprise data, with positive demand for both AI and traditional CPU data center solutions. The speaker is asked about potential surprises for the year and mentions the unexpected growth from AI in the previous year. They suggest that anything could happen this year, as they were surprised by the success of ChatGPT in the previous year.

The speaker is responding to a question about the company's consecutive year-by-year growth and explains that their strategy is to focus on delivering the best products and beating their competition. They also mention their recent acquisition and expansion into the data converter and mixed signal market, but do not provide specific numbers for the revenue from these subsegments.

The company expects significant growth in the next few years in areas such as single processing, data converters, audio processing, consumer markets, automotive, and green energy. They also plan to develop products for communication within cars. The company has a long-term revenue growth and margin model, but it has been affected by COVID. The company did not provide specific guidance on how to think about revenue growth and margins in the long term.

The speaker discusses the company's model for forecasting and how it has not been accurate in recent years. They mention the importance of product development and customer design wins in driving growth, and believe that in a more normalized economic environment, the company will continue to outperform the market. They also mention that the company's inventory levels are currently below their long-term target.

The company's inventory and channel management has been successful in the uncertain market, with inventory levels slightly above their target. The customer base has grown by a few thousand in the past year, which is a positive sign for the company's stability and potential for growth. The company's success will ultimately depend on the market and their customers' decisions.

The company is focused on playing the percentage and getting their products out the door to customers in all segments. They have a broad customer base, which makes them resilient in different market conditions. They are currently at $2 billion in revenue capacity and are building towards $4 billion. The company is also continuing to invest in their e-commerce business.

Michael Hsing, CEO of a company, is providing an update on their e-commerce business and how it has generated 150 million units in the past year. He believes that in the long term, this business will continue to grow as younger generations prefer to program products rather than use traditional methods. He also mentions the storage and computing business, which has seen some growth but is not as exciting as the e-commerce business.

The company's storage business has not performed well, but they have gained market share in the notebook and SSD markets. They also saw growth in DDR5 and graphic cards. The company is not concerned about the timing of product ramps, but rather ensuring they have products to ship.

The speaker is providing an update on the company's progress in the CPU market, noting that they have seen slower ramping due to delays in product launches from Intel and AMD. However, they are confident in their projections of reaching 20-30% market share and have a strong presence with design wins. They expect revenue to resume growth when the CPU market picks up.

The speaker is thanking participants for joining the conference call and announces a new format for future calls, where written content will be provided and the call will be used for Q&A. They believe this will be a more efficient and complete form of communication.

This summary was generated with AI and may contain some inaccuracies.