GaN pioneer Transphorm has appointed a US bank to look for a buyer.
The company saw revenues of $5.0m in its second quarter, down 15% on the previous quarter, with $3.55m from selling GaN power chips.
Transphorm has engaged BofA Securities as a financial advisor for a strategic review that could include a sale or merger, says CEO and co-founder Primit Parikh.
“We engaged BofA Securities to advance our previously announced strategic review process, and we are continuing this process as we seek to enhance stockholder value, pursuing multiple options that include the potential merger or sale of the company,” he said.
The majority of the business over the next five years, 70%m is in high voltage GaN power with 100 design-ins and opportunities entering or nearing production up to 7. The company cites a 75% conversion rate from design-in to production.
It also has the first integrated photovoltaic (PV) inverter design with DAH Solar in China for smaller, lighter, and more reliable solar panel systems that also offer higher overall power generation with lower energy consumption.
It is also expanding its System-In-Package (SiP) strategy with Transphorm GaN transistors alongside the gate driver, control and sensing chips to five IC partners to enable faster growth in this area.
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“In Q2 Fiscal 2024 we saw strong sequential and year-over-year product sales growth accompanied by improved gross margin that nearly doubled year-over-year. We were pleased with the continued growth of our pipeline and our design wins, highlighted by record growth in high-power design wins. We anticipate continued strong growth in product revenue in our third fiscal quarter as we realize the benefits of converting our burgeoning design-ins into revenue generating contracts.”
The total revenue of $5.0m was an increase of 36.5% over the same quarter last year and a decrease of 15% from the prior quarter, with government revenue falling to $1.46m from $2.9m in the prior quarter.
The company became the first and only GaN company to surpass 200 billion field operation hours for its normally off depletion mode (D-mode) cascode GaN products, including both low power and high power.
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Transphorm says it is actively engaged with multiple global customer partners for high power GaN in its new surface mount packages, including a global leader in the microinverter space, lead customers in server and storage power, an innovative manufacturer for off-grid power solutions and a leader in satellite communications.
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The company has 115 design-ins for power adapters and fast chargers under 300W with 30 in production with designs at two of the top three world-wide laptop OEMs in multiple power levels – both at 65W and higher range from 100W to 360W.
The company went public in a reverse merger in 2020 and has detailed funding arrangement with Yaskawa in Japan.
“We meaningfully reduced cash burn from $6.8 million for the first quarter of fiscal 2024 to $5.1 million for Q2 Fiscal 2024, and we continue to have zero debt on our balance sheet, which puts us in a strong position to secure additional non-dilutive funding,” said Cameron McAulay, Transphorm’s Chief Financial Officer.