Good day, and thank you for standing by. Welcome to the Monolithic Power Systems, Inc. First Quarter 2026 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised.

To withdraw your question, please press star 1-1 again.

Please be advised that today's conference is being recorded. We are joined by speakers Michael Singh, CEO and founder of MPS, Rob Dean, interim CFO, Tony Bailo, Vice President of Finance, and now I would like to turn the conference over to Arthur Lee to read a safe harbor statement. please go ahead.

Earlier today, NPS released a written commentary on our results of operations for the first quarter ended March 31, 2026. This document 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 uncertainties. The risk, 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 Q1-2026 Earnings Commentary and in our SEC filings, including our Form 10-K and Forms 10-Q, which can be found on our website. Our statements are made as of today, and we assume no obligation to update this information. Now, I would like to attend the call over to Tony.

Thanks, Arthur. Good afternoon and welcome to our Q1 2026 earnings call. In Q1, MPS achieved record quarterly revenue of $804 million, 7% higher than the fourth quarter of 2025 and 26% higher than the first quarter of 2025. Our quarterly performance was a result of our continued innovation, our consistent execution, and the resilience of our diversified market strategy. Let me call out a few highlights from the quarter. Our communications end market grew 33% sequentially on the strength of our power solutions for optical modules and switches. The pipeline for our automotive and enterprise data end markets, including server, continued to accelerate as we won multiple new projects across customers and regions. We sampled our first high-speed interface products for DDR5 at major customers, and MPS continued to grow our capacity past our original $4 billion plan, with a new goal of reaching $6 billion in the near future. We continue to adjust to the fluid geopolitical and macroeconomic environment, but our diversified market strategy remains unchanged. MPS focuses on innovation and solving our customers' most challenging problems. We consistently invest in new technologies that open new end markets and applications and accelerate our transition from chips-only to a full-service, silicon-based solution provider. And finally, we continue to expand and diversify our global supply chain, allowing us to capture future growth opportunities, maintain supply stability, and rapidly adapt to market changes as they occur. Operator, you may now open the webinar for questions.

As a reminder, to ask a question, please press star 1-1 on your telephone and wait for your name to be announced. To withdraw your question, please press star 1-1 again.

Please stand by while we compile the Q&A roster. Our first question comes from Ross Seymour with Deutsche Bank.

Your line is open.

Hi, guys. Thanks for letting me ask a question. I just wanted to dig a little bit into the enterprise data side of things. Can you just talk about the different trends you're seeing between kind of the XPU side versus the CPU, server CPU side? I know you mentioned in your preamble that the backlog and visibility was improving in both, but given the strength of demand we're hearing elsewhere in the server CPU side of things, I wondered how you guys are doing there.

Both are good. Yeah, maybe Tony, you can talk to that.

Yeah, I'll give a little more color. And, Ross, if you recall, even last year in 2025, we had talked about CPU being a tailwind, and we continue to see that here in 2026. But if you look across enterprise data, for us, right, as we've said, it's increasingly hard to differentiate between sort of AI solutions and CPU, but in general, all the growth drives are intact. We're ramping new customers. We've been ramping existing customers. We continue to see the transition to modules, and like I said, plain server has been a tailwind, and we think it will continue to be so.

Thanks for that. And I guess the second question would be on the storage and computing side of things. That seemed to be a little bit better than feared in the first quarter. Talk about the tailwinds or headwinds, given what's happening from a macro perspective, and then potentially the difference between what you guys do on the storage side versus the computing side.

Yeah, I'll start on that one, and then I'll let Mike and Rob jump in. But as you know, right, that segment really has sort of two separate businesses in it. The storage side obviously has remained strong as it's really been indexed to a lot of the data center business. And we've seen strength in DDR5. We've seen strength in HDD and SDD continue out of last year and into Q1. On the notebook side, we're still more cautious on that side. As you know, there's really two dynamics there. I'm sure you've heard other companies talk about potential TAM headwinds associated with memory shortages or elasticity from memory prices. But remember, we also selectively play in that part of the market that has lower margins around consumer. And so I think we look forward on that business going through the year. I think we're still very optimistic about storage staying strong, probably much more cautious on the notebook side.

Thank you. But the nobles, and we don't really care this quarter or next quarter. As long as we develop the best solutions, our power densities, and our customers ease of use, and these design that we have, the revenue will run.

All right, operator, next question.

Thank you. our next question comes from william stein with truest securities your line is open great um first i'd like to ask about um manufacturing you noted in the press release that you passed the four billion dollar target you're now working to six billion capacity um maybe you can update us as to the strategy around geographic placement of your capacity and maybe remind us uh what's going on from a technology perspective this used to be a big focus you know the various BCD iterations that you that you produce but can you bring us up to speed as to what what is the latest BCD generation thank you I answer your last

portions at the first we are still around the 60 nanometers and I can maybe we'll go down to 40 40 45 nanometers and These ones, as a market trend, the power increases, and then we increase the power densities. And it's just an old story. We keep doing the same things in the last 20 years. And we just do better than our competitors. For the $6 billion gold for manufacturing pipelines, we clearly, and we see our near futures, we see a lot more activity, a lot more potentials, and all these design wings is imminent that we're turning to our And maybe just to add, well, I think I'm telling you what you know, but on the $4 billion of capacity, we talked about that being very geographically

diverse, both inside and outside of China. And remember, our strategy really is to maintain that supply chain diversity. So we'll continue to try to have that balance going forward.

Thank you.

Our next question comes from Joshua Buchalter with T.D. Cowan. Your line is open.

Hey, guys. Thank you for taking my question, and congrats on the results. Maybe to start, can you just help us a little bit with the models? Any help you can give us on the guidance by segment as we think about, you know, sort of a 12 percent sequential growth for the June quarter, which segments should be above and below? Thank you.

Well, I think as I would, let me start out that you guys are more interested in the most. and okay man uh uh bernie last time soon okay talk to you guys we'll have about 50 of flaws and i'll get 50 of flaws and okay i i i'll let tony talk about but give you a better news today okay and uh i'm um more excited about the um other projects that i uh people involved okay me the the building automations and audio project site and as well as well as the robotics and these ones I will pave the way for our next two to three years out and I can remain on the same growth trajectory yeah I'll follow up a little bit as kind of marching through And, Josh, I know the first thing people are interested in is enterprise data, so I'll start there.

And as you recall, we tend to be fairly conservative in how we look at these things, waiting for the backlog to be in place. So late last year, we talked about 30% to 40% growth year over year. In the last call, we kind of rose that to a 50% floor. And the strong ordering patterns that we saw start last year has kind of continued through Q1. So, at this point in time, I think we're comfortable raising that floor up to around 85% year-over-year growth, and that will certainly be one of the drivers of growth for the year for MPS. If you look through – oh, sorry, Michael.

I'll let Tony deliver better than our last year. Okay. Okay.

You know, if you look at the others, Josh, I think we've been signaling on communication as we've become increasingly excited about that end market with not only the optical module growth, but due to switches as well. So we certainly would expect those to be drivers. Auto, I think, is a very consistent score. We've said that would be, you know, roughly flat through the first half of the year and ramping in later in the year. And then storage and compute, we talked about a bit already with Ross, right? There's really two different dynamics going in there where we're still very optimistic on storage, pulled through by data center, more cautious on Notebook.

But here again, overall, we cannot predict which quarter goes ramp, what volumes. And that's not our business to do that. And we're winning strategy is the same as the last 20 years. As long as we deliver the best product and service our problem, solving our problem for our customers, and I don't see we lose any socket, okay, and the major socket at least, okay, and we keep winning. And those business, those design win, will take into revenues.

Thank you both for all the color there. And unfortunately, when you deliver good news, you still get annoying follow-up questions. But I guess if we think about the incremental upside since last quarter, any help you can give us on how much of that's coming from CPUs, as Ross mentioned earlier, versus more confidence into either content or visibility into share on the AI accelerator side? Thank you both, and congratulations again.

That's a good try. Okay, now I'm not going to give it to you. yeah josh i think we just fall back and we've talked about all the growth drivers and say they're intact i don't think we want to try to parse out between volume and content because it'd be very specific and in in reality that can be it's very difficult okay to to to separate it okay what is called ai what is called servers okay there's a lot of uh there's a lot of um aging, okay, and a small segment, okay, and these are very much a small utility box, okay, we see a lot happening, okay, and maybe I don't use the right words and you guys use it, okay, I mean, these are portable AI devices, okay, and just based on GPUs, these are happening, And that's clearly overlapped with the CPU and GPU powered.

Can't hurt a try. Thank you, guys.

Okay.

Thank you. Our next question comes from Rick Schaefer with Oppenheimer & Co. Your line is open.

Thanks, guys. And my congratulations and just a wow, I guess, on the outlook. Maybe if I could just for a second talk about enterprise data. i've got a follow-up michael that you'll like better but i think but um you know the top four csps i think just last night i mean now we're over 700 billion in capex just from them i mean seems like you guys are clearly seeing that increased order velocity my real question is are you able to capture all of that upside i mean is there anything you know curbing your your supplier your ability to capitalize michael because in years past you guys have you know MTS is kind of, he's kind of made your bones on always being ready for that upside and kind of never being caught short. So I'm just kind of curious if that's still the case or kind of what you're seeing.

I think it's exactly right. And although we have a few more players and I came And let me go back to a few quarters ago. And these are AIs and GPU powers. And given times, will be the performance and also the manufacturing capabilities and the reliability will remain as only a few players. And after a year, a couple of years, it's been very clear, NPS is one of the clear. And as I promised over a year ago or so. And we continue to do well in many aspects, especially for the power density side. We are the best in the market segment because we provide a total monolithic power solutions. And we can use a single piece of silicon versus our competitor using multiple pieces of silicon. And that clearly shows our advantage. And yet, we don't want to be the dominant suppliers. and, okay, well, we'll just want to be a part of it, and our goal is to diversify goals.

Got it, and so for my follow-up, Michael, I'm just curious on physical AI.

Obviously, you know, it's getting a lot more, you know, a lot more people talking about it and a lot more focused, and I'm just curious if you could flesh out maybe a little more of your plans for that segment. You know, what kind of tan do you, have you guys identified there? I mean, you called out robotics, you know, a minute ago on the call, I mean, can that be a meaningful revenue contributor next year? Or when would we start to see, you know, robotics start to drive top line?

We see this year, but the volume is still low, but it can kind of move the needle slightly. And if we go up the trains, this is still at the very beginning, and it's very difficult to predict okay and many companies that launched the first high volume robotics okay though we clearly benefited from it and after that I we can call the we we cannot call the market segment growth but the future is there it clearly when more AI adopted it in in robotics the application will be widened and i think what you see is us try to run the typical mps playbook which right now we're

trying to engage broadly and win all the designs we can we can't control when the customers ramp but we can't control winning the sockets and that's the broad engagement you really see happening in 2026. that's very good point yep great well thanks guys thank you our next question comes from Quinn Bolton with Needham & Company.

Your line is open.

Hey guys, I'll offer my congratulations as well on the results and outlook. Michael, Tony, I guess I wanted to ask on the comms segment, it was up 33% sequentially in March. It sounds like it's going to be one of the faster-growing segments in the June quarter. When I look at optical modules, I think 800 gig modules are more than doubling in 26. So my question is, do you think the comms segment could actually grow as fast, if not faster, than enterprise data this year, given those trends?

Yeah. Again, I'll follow Tony's answer for the last one. We're not in the business to predicting what the market trend is. We provide these happens in this particular segment. and we saw a lot of activities and a lot of demand for high power density product and especially modules and I think as I mentioned about maybe a few quarters ago and And so this quarter, and it just jumps out. And from what we learned, the power density of the module with a very confined area, and the data rate keep increasing. And with the opticals or with the other type of a format, the power will keep increasing. And in what rate, I cannot predict, but in the small confined areas, and the power density is critical. And that's our basic technology so that we can apply in that segment, and that we execute it fast, and that we capture the market.

Yeah. And I think as ordering patterns have continued to be strong and extend, we still don't have them all the way through the year. So I think it's pretty tough for us to call all the way through the back half right now, but certainly we'd put that and mark it above the corporate average.

Got it.

Okay.

And then- Same way. I'll go back to the servers and go back to the server side. In the last years, we don't know if the server market will pick it up or not pick it up. As far as we listen to our customers, we get our inventory ready. And when they need it, they have those products. And so we just focus on delivering better product, winning more socket.

Yeah, I mean, I'm a broken record, but I think it's a great example of, again, diversified approach. You land and you sort of look at the other sockets, availability, and applications and continue to grow your SAM.

Great. My follow-up question, Michael, you guys have been sampling your products for 800 or plus minus 400 volts for a few quarters now. Now, I'm wondering if you could provide any feedback on how that activity is, you know, going. And can you give us any thoughts on there's a lot of debate between whether those higher power conversion steps will be more GAN-based or silicon carbide-based. If it goes GAN, will you guys have GAN-based solutions ready for that opportunity?

No, we're based on a silicon carbide. and that's our solutions. We do, in the past, I openly said I don't believe in gang. Okay, now I start to, I didn't know what I was talking about, I guess. Okay, we, in the last, started last year, we developed our gang, but it's not for 800 volts. It's for low voltage and lower power segments. We start to develop these fundamental technologies in game. To answer the first part of our questions, yes, with sampling. and the game and rather simple or called assembly is co-develop that that that systems with our our customers okay and also our customers customers and uh it's we don't talk about those until i guess you guys ask for us and okay and uh 800 volts became a household number so i get household names in in in on the wall street in the game and so we start to talk about And our product is working, and I think overall, the environment in the new 800-volt power bus data centers, a lot of things have to be resolved. and we just have our for that application is ready okay and also have a 800 volts okay go go to a 10 000 volts okay that that's another segment and has to be developed a lot more a lot more efficient efficient power conversions and these are all part of the all part of the pictures NPS will play in that in those segments thank you Michael thank you as a reminder to ask a question

please press star 1 1 on your telephone again that is star 1 1 to ask a question our next question comes from Tori Sponberg with Stiefel your line is open yes thanks Michael Tony being congrats on another record quarter I had a question maybe as a follow-up to to a previous question on power so I do realize there's a lot of focus on 800 volts but before we get there you know there's the move to 2000 or to 2000 watt GPUs and I know there's a lot of sort of wannabe power management companies out there Michael so you know just hoping you could touch on you know two of the three things that really make uh nps so unique and differentiated to handle those types of power levels because that that is not like a 2028 time frame right i mean that's already next year so um yeah if you could give some color there that'd be great yeah okay that's a good question i can touch it and uh one of them i already um um said earlier it's an okay nps is the focus on the monolithic.

And we do what is the most cost-effective and how we do the integrations. And we have the capabilities to integrate or disintegrate. And the integrations, we can put it in one modules and that's a huge advantage and with the multiple other chips okay and if we use the particularly discrete power components okay discrete um power power fats and that it's very difficult to do for manufacturing the modules the the second things i should mention And then we invested in a module development, you know, for other segments, actually. And since 2016, we wanted to move up, okay, from providing silicon-only power conversions. And, okay, we do a plug-in-play solution. That journey we started in 2016. And immediately, we know how we test these. these devices and how we qualify these devices that cannot come and if it's a high volumes and a high quality and again it can't be touched by humans and we we develop our own test systems and own reliability systems these are fully automated and they're all actually it's all based on the MPS motion product. And these ones are very unique. And before these systems, putting in productions, we can't find anything like this on the market. And that's, I think, to me, this is a huge advantage. And the other one is the last one that will go back to semiconductors, and again, we talk about this. We use the 16 nanometers in that game, and now we move it to 40 nanometers.

And those increase the power density by last time we talk about 3 amps per millimeter cube. and now we go past that great thank you for that Michael and this as my follow up you know when you mention a new product I always you know listen to you because I remember you talked about you know 800 gig optical components being a new market and before you knew it you had a huge business there and and you now mentioned you have your first high-speed interface product sampling for DDR5 so So, you know, just curious, when should we start to see material revenue from that business? And, you know, could that also grow into, you know, several hundred million dollar business over the next few years?

That's absolutely right. And frankly, I don't know anything about this high speed. And which is the highest, best engineers that cut them loose and then they created this. But the former business side is our natural way of expanding the total service market segment, the increase I was seeing. And we have a pretty good position in PMIC in memory. Then we introduced timing drivers, timing control, whatever, and also temperature sensors. And now there's RCD or whatever the things. And I know it's very difficult. It's beyond my understanding. Our engineers and our peoples, they pull it off. And so we have a few people that compare other companies, like I have 50 people, that design groups, and we will be able to pull it off in a few years. These are brilliant guys, and they want to make things happen. And the revenue, usually we don't talk about it, and talk about a product. and we sample those products clearly in that market segment, our customers are very much welcome to have another player.

And, Tor, I'll just help you with the model a little bit. I wouldn't really have that as being a contributor to 2026 revenue. I think we're really highlighting it as we continue to expand our footprint, you know, in that market.

That's fair. Thank you again, and congrats.

Thank you.

Thank you. Our next question comes from Gary Mobley with Loop Capital. Your line is open.

Hi, guys. Let me also extend my congratulations. I'm curious about the comms business. That definitely is a standout for the quarter in terms of growth, upside, and I presume carrying into the second quarter and for the balance of the year as you previewed already. So, what I'm most curious about is, you know, how much content you have in these 100 gig optical modules, and I assume maybe top or X switches, you know, maybe if you can put it in the context of, you know, by how much you see your content increasing in REC scale solutions for accelerated compute, you know, given this beachhead, you know, in these two new applications.

I think it's more than the beach now. We're pretty well beyond the beach now. Tony, you want to?

Yeah, I think we're going to stop short of kind of giving a dollar content. But obviously, in the optical modules, right, we have a module in the module doing that. So we obviously look at more of that than a discrete device. If you talk about switches and things of that sort, you have a whole different number of trays, for example. You have switches, you have NIC cards, you have other things like that, which all require power. And so I think the opportunity is, right, is you have a number of different processors that sit in these racks that we can provide power for and that we've been expanding that all sit within our communication segment. But I think we're, as usual, right, we're not going to talk about specific content layers, especially for specific of customers.

Okay. As a follow-up, I wanted to ask about distribution channel inventory. I know it's been running lean. Is it still lean relative to where you would normally place your distribution inventory? And then as well, maybe if you can talk about the inflationary-related pricing trends that you have to pass along.

I'll take that one. With regards to our distribution channel, we don't have a great deal of perfect visibility there. But what we have seen, at least in 2025 and carrying into 2026, is that the channel has been very lean. And that, you know, implies to us that, you know, we're shipping to what demand is at the end market. But beyond that, we're looking good?

Okay.

For the pricing, okay, cost, the pricing, yeah, some of the cost is higher, okay, and we see a lot of activities, okay, so we will keep, the goal is that we're keeping our margin profiles.

Yeah, I think, and just to add to Michael, I think we don't, we're not looking it as a broad base across the board, but there are places where input costs have gotten higher, people are asking for expedited supply chains and things of that sort, and in those cases, yeah, you could see us raise prices to stay within our gross margin model.

Thank you.

Thank you. Our next question comes from Joe Quattrochi with Wells Fargo. Your line is open.

Yeah, thanks for taking the question. Maybe just to follow up there on the gross margin, I'm wondering if you could just share any of the puts and takes on the guide. It just feels like, you know, obviously very positive revenue acceleration and kind of not a ton of follow-through on gross margin kind of still stay in that range.

Yeah, okay. Again, I said the margins in the last couple of quarters. Margin is on the low end. And although it's in our models, I mean it's on the low end. And we still improve the yields on the modules, and I think that we don't have much of a head We're moving up. But I don't want to give you a false thought, but we're going to jump very high, so that's not NPS. We don't do that kind of thing. Okay.

I'll expand a little bit on what Michael just said. Historically, we've been very consistent with delivering to our gross margin guide. For the last four quarters, we've been flat at 55 and a half, which is at the low end of our gross margin model for growth, which ranges from 55, mid-50s to upper 50s. For Q2, as you noticed, we did have the confidence to increase incrementally our coast margins, mainly because we've gotten better visibility to our backlog. We saw this happening in the fourth quarter of last year, and it's continued into the first quarter of this year. So that has, again, given us some confidence. We do, however, do see some strong headwinds potentially in the second half, And so we're not – we're remaining cautious for the guy in the second half of the year. Maybe just on the robotics socket opportunities you talked about, you know, up for grabs or to win this year. Are those – do we think about those as being incremental? So I think you talked about $150 of content, like, for Humanoid back at the analyst day. Is that the right way to think about it, or are those expanding opportunities?

It really varies. and that came in. Humanoid is the most visible. You will see some dancing robots and that came in, those kind of. And what we focus on is in the robotics. If it's a remote and without a power cord plugging the robot, and those have the battery operations. and so our battery management product plays a role in there. And the other one is the AI side, the compute side, okay, for power up the GPUs, okay, and these are automated control units, okay and also as well as as well as these sensors and uh the the other segment is the actuators the motion side that's uh that's overall we sell we um um we we offer for the robotic companies And many applications in actuators, and they can be in medical assist for rehab purposes, okay? We see those kind of things happening. And for the dialogue content, go back to your dialogue content it's very difficult to set like it is a variety of of of applications we selling chip and to selling modules okay and uh so the dollar content is also different and it's very difficult to judge but the trend is that these robot world happened and there will be a lot more the world will be no more automated, and you can't assist the human to do a lot of things, okay?

Thank you. As a reminder to ask a question, please press star one one on your telephone. Again, that is star one one to ask a question. Our next question comes from Chris Casa with Wolf Research. Your line is open.

Yes, thank you. Good evening. I guess the first question would be about the ED segment. And if you could talk about the growth on merchant solutions versus ASIC solutions this year and, you know, what you're expecting with regard to content. I know you've got a strong position in both, but do you expect outsized growth in one area or the other? Any color you could provide would be helpful.

We don't... We don't divide it into the learning side, the inferencing side, and frankly, we don't know how to separate it, and they could use the same similar product. What we do is, while we're winning all these segments, it's because of the power density, as I said earlier. Okay. And then nobody wants to waste the power and efficiency is, power density is directly related to power efficiency. And so they want a smaller size and they want to have a high efficiency. It really doesn't matter to us which segment.

Chris, the only thing I'd add, right, is I think we're comfortable raising the floor from 50% to 85%, not because there's been a fundamental change in the growth drivers for how we're approaching the market. It's really, as you know, our more comfort about what's in backlog, and we've seen that extended ordering pattern.

So I think to Michael's point, you know, I don't think we subdivided the content and volume, but I just want to make sure you know that I don't think anything's changed other than being able to see more orders in the books going forward. go ahead um thanks as a follow-up if i could ask about the auto segment and you talked about that uh being flashed in the first half with some some growth in the second half uh you know obviously auto has been a a little more uh variable in terms of uh you know its recovery uh you know there was some data to china which was a little weaker in the beginning of the year you know Brad should give some color on the visibility you have at auto and why you think that starts to grow again in the second half.

I don't pay attention to these, which ones are strong, which segments are strong, which continent in its more strong or weaker. And again, because these are chasing the market. We're not chasing the market. Whatever happens, happens. And again, we have the product ready. We're going to deliver. But, Tony, you can talk about it in year terms. I don't pay any attention to it.

Yeah, I mean, I can add a little bit more there. I think, Chris, the shape of the year, as you said, right, our expectation there hasn't necessarily changed. And why we've talked about seeing that ramp later in the year is really on our belief on one of some of these designs that we've previously won come to market. We can't control when our customers ramp, but the pipeline at auto has been expanding, and based on our current belief, we would expect to see that ramp later in the year. So, again, as always, right, we'll monitor as things go through, but that's our belief at the moment.

Well, the bottom line is we're waning socket, and we're expanding our market shares.

Thank you. our next question comes from Kelsey Chia with Citi.

Your line is open.

Hi. Hi, Mike and Tony. Congrats on the results. Could you talk about the rationale behind focusing on silicon carbide for 800 volt step down while focused on galen nitrate just for the lower voltage, lower power segments?

It seems that some of the peers are also using GAN for higher to step down how would that influence your competitive positioning it's a long it's a obvious it's a long questions okay it's a long it's a long answer they're starting okay i didn't i said i didn't believe again okay and uh and uh um i still don't believe that i can fall for high powers and i mean uh um we still have to be approved uh prove that in that in the market segment. The reason we use silicon carbide is these devices are proven in the history like 20 years ago. They're making diodes and the materials are a lot more reliable. There's some fundamental issues. We started this, tried to improve, it started in 2016. And as a result, we have a deep know-how to use these silicon carbides in the game. And the NPS is unlike other companies we're selling. We don't sell silicon carbide fast. And these are passive semiconductor passable device. And we always integrate into our modules. So that's a kind of short story for you.

Thank you. Got it. And I know that the team historically has been able to gain share in tight supply environments. Could you talk more about your supply chain management strategy and also your confidence in meeting customer demand if other suppliers face capacity constraints?

We, throughout the history, if you look at it, and especially during 2000, Funny ones, and these are after COVID, okay, it happens, and NPS always listen to our customers. We don't play a passive role when the customers tell you to pull in too late, okay? and we have actively preemptively and to build these inventory get these inventory ready and our product life cycle is very long so we don't we don't have any any materials and like a large amount in there and scrapping and we know these ones sooner or later will sell and again like if you asked me where these product

ramping i don't know from the plus nine plus minus years it will send and we don't mind and have a little high inventory although in the last reason quarters we cannot we cannot have enough to to build up yeah i just think the last thing i'd add just so it's really clear is nothing about or outlook or anything we said about enterprise data floor is because we see any constraints in the supply chain it's something we've continuously stayed ahead of so if the root of your question kelsey was whether or not the 85 flow was limited by something that's that's not an issue right now got it thank you yep thank you i'm showing no further questions at this time i'll now like

to turn it back to Tony Bailo for closing remarks.

Thank you, Operator, and thank you all for joining us on this conference call today. I look forward to speaking with you on our next call for our second quarter 2026 results. Thanks, and have a great day.

This concludes today's conference call. Thank you for participating. You may now disconnect.