GOLETA, Calif.–(BUSINESS WIRE)–Transphorm, Inc. (OTCQX: TGAN)—a pioneer in and international provider of excessive reliability, excessive efficiency gallium nitride (GaN) energy conversion merchandise, at this time introduced monetary outcomes for the corporate’s fiscal second quarter of 2022 ended September 30, 2021.
Fiscal Second Quarter and Recent Highlights
- Product income elevated sequentially for seventh consecutive quarter and grew 30% year-over-year to a quarterly file;
- Continued momentum on adaptor and fast-charger market penetration, together with partnerships with main controller and built-in driver makers;
- Completed transaction to transition possession of AFSW wafer-fab facility in Aizu Wakamatsu, Japan;
- Strategic companion, Yaskawa, transformed $15.6M of debt to Transphorm widespread inventory at $5.00 per share in October 2021;
- Awarded $1.4 million GaN improvement contract by Defense Advanced Research Projects Agency (DARPA);
- Achieved automotive qualification of SuperGaN Gen IV multi-kilowatt class energy FET system;
- Closed $5.0 million non-public placement for strategic funding by Sino-American Silicon Products (SAS) a multi-billion greenback public firm in Asia; and
- Closed $33.0 million non-public placements in November 2021 comprised of follow-on investments of $5 million by KKR and $10 million by Sino-American Silicon Products (SAS) in addition to participation by institutional traders.
“During the September quarter, we continued to ramp system shipments in help of expanded design-ins going into manufacturing, leading to one other consecutive quarter of development and file product income,” commented Primit Parikh, Transphorm’s President and Co-founder. “Product income within the first half of fiscal 2022 has exceeded the income contribution from merchandise for the complete fiscal yr of 2021, pushed by rising traction with our GaN units in quick chargers and adaptors in addition to high-power gaming, server and crypto-mining purposes. Additionally, we continued to put the muse for important future development highlighted by the not too long ago achieved automotive qualification of our SuperGaN Gen IV FET system. With robust buyer momentum and robust blue-chip strategic partnerships, we count on continued product income development within the coming quarters.”
Cameron McAulay, CFO of Transphorm, said, “Through a collection of profitable transactions over the previous few months, we’ve considerably strengthened our steadiness sheet and money place whereas additionally realizing a $50 million improve in shareholder fairness since June 2021. In half as results of our stronger monetary place, we imagine the Company is now positioned to satisfy the qualification necessities for uplisting Transphorm’s widespread inventory to the NASDAQ, an ambition we’ll proceed to pursue aggressively within the coming months.”
Fiscal Second Quarter 2022 Financial Results
Revenue for the fiscal second quarter of 2022 elevated sequentially and year-over-year to $11.3 million, in comparison with $3.2 million within the fiscal first quarter of 2022 ended June 30, 2021, and $1.9 million within the fiscal second quarter of 2021 ended September 30, 2020. The sequential and year-over-year improve was pushed by a mixture of licensing income associated to ongoing improvement work with a producing companion in addition to file product gross sales from ramping shipments of GaN units for a broad vary of energy conversion purposes, together with quick chargers and adapters, gaming, information middle and crypto-mining.
Operating bills on a GAAP foundation have been $5.1 million within the fiscal second quarter of 2022, in comparison with $5.3 million within the prior quarter and $4.3 million within the fiscal second quarter of 2021. Fiscal second quarter 2022 working bills consisted of R&D bills of $1.6 million and SG&A bills of $3.5 million. On a non-GAAP foundation, working bills within the fiscal second quarter of 2022 have been $4.5 million, in contrast with non-GAAP working bills of $4.6 million within the prior quarter and $3.5 million within the fiscal second quarter of 2021.
GAAP internet revenue for the fiscal second quarter of 2022 was $6.0 million, or $0.15 per share, in comparison with a GAAP internet lack of ($7.1) million, or ($0.17) per share, within the prior quarter and a GAAP internet lack of ($6.7) million, or ($0.19) per share, within the fiscal second quarter of 2021. On a non-GAAP foundation, internet revenue for the fiscal second quarter of 2022 was $3.6 million, or $0.09 per share, in comparison with a non-GAAP internet lack of ($5.3) million, or ($0.13) per share, within the prior quarter and a non-GAAP internet lack of ($5.3) million, or ($0.15) per share, within the fiscal second quarter of 2021.
Cash and equivalents as of September 30, 2021 have been $2.5 million, in comparison with $2.5 million as of June 30, 2021. In subsequent non-public placement transactions accomplished in early November 2021, the Company closed $33.0 million of fairness financing at $5.00 per share from KKR and different strategic and institutional traders.
Conference Call
Transphorm will host a convention name at this time at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) to evaluate the Company’s fiscal second quarter outcomes and supply a enterprise replace. The convention name might be webcast dwell over the Internet, which will be accessed by all events within the Investor Relations part of Transphorm’s web site at www.transphormusa.com. Investors and analysts can also be a part of the convention name by dialing: 1-888-440-4368 and +1-646-960-0856 for worldwide callers and offering the convention ID: 8060388.
For these unable to attend the dwell webcast, a replay and the supporting presentation supplies might be out there on the day of the convention name and for roughly 90 days within the Investor Relations part of the Company’s web site. Additionally, a phone replay of the convention name might be out there roughly two hours after the conclusion of the decision and thru November 17, 2021. The phone replay will be accessed by dialing +1-800-770-2030 and coming into the convention ID: 8060388.
About Transphorm
Transphorm, Inc., a world chief within the GaN revolution, designs and manufactures excessive efficiency and excessive reliability GaN semiconductors for top voltage energy conversion purposes. Having one of many largest Power GaN IP portfolios of greater than 1,000 owned or licensed patents, Transphorm produces the business’s first JEDEC and AEC-Q101 certified excessive voltage GaN semiconductor units. The Company’s vertically built-in system enterprise mannequin permits for innovation at each improvement stage: design, fabrication, system, and utility help. Transphorm’s improvements are shifting energy electronics past the restrictions of silicon to attain over 99% effectivity, 40% extra energy density and 20% decrease system price. Transphorm is headquartered in Goleta, California and has manufacturing operations in Goleta and Aizu, Japan. For extra info, please go to www.transphormusa.com. Follow us on Twitter @transphormusa and WeChat @ Transphorm_GaN.
Non-GAAP Financial Measures
This press launch contains and makes reference to sure non-GAAP monetary measures. The presentation of this monetary info isn’t supposed to be thought-about in isolation or as an alternative to the monetary info ready and introduced in accordance with GAAP.
Transphorm believes that the presentation of non-GAAP monetary measures offers necessary supplemental info to administration and traders concerning monetary and enterprise tendencies referring to the Company’s monetary situation and outcomes of operations. Transphorm believes that these non-GAAP monetary measures present further perception into Transphorm’s ongoing efficiency and core operational actions and has chosen to offer these measures for extra constant and significant comparability between intervals. These measures ought to solely be used to guage Transphorm’s outcomes of operations at the side of the corresponding GAAP measures. The non-GAAP outcomes exclude the impact of stock-based compensation, depreciation, amortization, change in truthful worth of promissory observe and different revenue in three way partnership.
A reconciliation between GAAP and non-GAAP monetary outcomes is supplied within the monetary statements portion of this press launch.
Forward-Looking Statements
This press launch incorporates forward-looking statements (together with throughout the which means of Section 21E of the United States Securities Exchange Act of 1934, as amended, and Section 27A of the United States Securities Act of 1933, as amended) in regards to the Company’s deliberate utility to uplist its widespread inventory to the NASDAQ, business acceptance of GaN know-how, and the Company’s pipeline and future anticipated development. Forward-looking statements usually embody statements which can be predictive in nature and rely upon or consult with future occasions or circumstances, and embody phrases comparable to “might,” “will,” “ought to,” “would,” “count on,” “plan,” “imagine,” “intend,” “look ahead,” and different comparable expressions amongst others. Statements that aren’t historic information are forward-looking statements. Forward-looking statements are based mostly on present beliefs and assumptions which can be topic to dangers and uncertainties and usually are not ensures of future efficiency. Actual outcomes may differ materially from these contained in any forward-looking assertion because of varied components, together with, with out limitation: dangers associated to Transphorm’s operations, comparable to further financing necessities and entry to capital; competitors; the power of Transphorm to guard its mental property rights; and different dangers set forth within the Company’s filings with the Securities and Exchange Commission. Except as required by relevant legislation, the Company undertakes no obligation to revise or replace any forward-looking assertion, or to make another forward-looking statements, whether or not because of new info, future occasions or in any other case.
|
Transphorm, Inc. Condensed Consolidated Balance Sheets (in 1000’s besides share and per share information) |
|||||||
|
September 30, 2021 |
|
March 31, 2021 |
|||||
|
(unaudited) |
(audited) |
||||||
|
Assets |
|
||||||
|
Current property: |
|
||||||
|
Cash and money equivalents |
$ |
2,488 |
|
$ |
9,500 |
|
|
|
Accounts receivable, internet, together with associated events |
|
1,585 |
|
|
1,618 |
|
|
|
Inventory |
|
4,774 |
|
|
2,223 |
|
|
|
Prepaid bills and different present property |
|
1,329 |
|
|
953 |
|
|
|
Total present property |
|
10,176 |
|
|
14,294 |
|
|
|
Property and tools, internet |
|
1,761 |
|
|
1,360 |
|
|
|
Goodwill |
|
1,286 |
|
|
1,302 |
|
|
|
Intangible property, internet |
|
765 |
|
|
914 |
|
|
|
Investment in three way partnership |
|
89 |
|
|
— |
|
|
|
Other property |
|
259 |
|
|
274 |
|
|
|
Total property |
$ |
14,336 |
|
$ |
18,144 |
|
|
|
|
|
|
|
|
|||
|
Liabilities and stockholders’ deficit |
|
|
|
|
|||
|
Current liabilities: |
|
|
|
|
|||
|
Accounts payable and accrued bills |
$ 4,047 |
|
$ 3,140 |
|
|||
|
Deferred income |
607 |
|
505 |
|
|||
|
Development mortgage |
— |
|
10,000 |
|
|||
|
Revolving credit score facility, together with accrued curiosity |
184 |
|
10,150 |
|
|||
|
Unfunded dedication to three way partnership |
— |
|
1,866 |
|
|||
|
Accrued payroll and advantages |
1,447 |
|
1,410 |
|
|||
|
Promissory observe |
15,597 |
|
— |
|
|||
|
Total present liabilities |
21,882 |
|
27,071 |
|
|||
|
Revolving credit score facility |
12,000 |
|
— |
|
|||
|
Promissory observe |
— |
|
16,128 |
|
|||
|
Total liabilities |
33,882 |
|
43,199 |
|
|||
|
Commitments and contingencies |
|
|
|
|
|||
|
Stockholders’ deficit: |
|||||||
|
Common inventory, $0.0001 par worth; 750,000,000 shares licensed as of September 30, 2021 and March 31, 2021, and 41,664,020 and 40,531,996 shares issued and excellent as of September 30, 2021 and March 31, 2021, respectively |
|
4 |
|
|
4 |
|
|
|
Additional paid-in capital |
|
150,843 |
|
|
144,201 |
|
|
|
Accumulated deficit |
|
(169,475 |
) |
|
(168,403 |
) |
|
|
Accumulated different complete loss |
|
(918 |
) |
|
(857 |
) |
|
|
Total stockholders’ deficit |
|
(19,546 |
) |
|
(25,055 |
) |
|
|
Total liabilities and stockholders’ deficit |
$ |
14,336 |
|
$ |
18,144 |
|
|
|
Transphorm, Inc. Condensed Consolidated Statements of Operations (unaudited) (in 1000’s besides share and per share information) |
||||||||||||
|
|
Three Months Ended September 30, |
Six Months Ended September 30, |
||||||||||
|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|
Revenue, internet, together with associated events |
$ |
11,303 |
|
$ |
1,929 |
|
$ |
14,519 |
|
$ |
8,258 |
|
|
Operating bills: |
|
|
|
|
||||||||
|
Cost of products bought |
|
2,239 |
|
|
2,043 |
|
|
4,806 |
|
|
3,291 |
|
|
Research and improvement |
|
1,591 |
|
|
1,071 |
|
|
3,414 |
|
|
2,665 |
|
|
Sales and advertising and marketing |
|
825 |
|
|
547 |
|
|
1,512 |
|
|
1,075 |
|
|
General and administrative |
|
2,714 |
|
|
2,688 |
|
|
5,457 |
|
|
4,746 |
|
|
Total working bills |
|
7,369 |
|
|
6,349 |
|
|
15,189 |
|
|
11,777 |
|
|
Income (loss) from operations |
|
3,934 |
|
|
(4,420 |
) |
|
(670 |
) |
|
(3,519 |
) |
|
Interest expense |
|
220 |
|
|
191 |
|
|
424 |
|
|
380 |
|
|
Loss in three way partnership |
|
1,092 |
|
|
1,943 |
|
|
2,582 |
|
|
3,799 |
|
|
Changes in truthful worth of promissory observe |
|
(1,629 |
) |
|
709 |
|
|
(605 |
) |
|
2,367 |
|
|
Other revenue, internet |
|
(1,729 |
) |
|
(523 |
) |
|
(1,999 |
) |
|
(1,055 |
) |
|
Income (loss) earlier than tax expense |
|
5,980 |
|
|
(6,740 |
) |
|
(1,072 |
) |
|
(9,010 |
) |
|
Tax expense |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
Net revenue (loss) |
$ |
5,980 |
|
$ |
(6,740 |
) |
$ |
(1,072 |
) |
$ |
(9,010 |
) |
|
Net revenue (loss) per share – primary |
$ |
0.15 |
|
$ |
(0.19 |
) |
$ |
(0.03 |
) |
$ |
(0.25 |
) |
|
Net revenue (loss) per share – diluted |
$ |
0.14 |
|
$ |
(0.19 |
) |
$ |
(0.03 |
) |
$ |
(0.25 |
) |
|
Weighted common widespread shares excellent – primary |
|
41,196,139 |
|
|
35,156,918 |
|
|
40,918,203 |
|
|
35,146,277 |
|
|
Weighted common widespread shares excellent – diluted |
|
41,362,489 |
|
|
35,156,918 |
|
|
40,918,203 |
|
|
35,146,277 |
|
|
Transphorm, Inc. Condensed Consolidated Statements of Cash Flows (unaudited) (in 1000’s) |
||||||
|
|
Six Months Ended September 30, |
|||||
|
|
|
2021 |
|
|
2020 |
|
|
Cash flows from working actions: |
|
|
||||
|
Net loss |
$ |
(1,072 |
) |
$ |
(9,010 |
) |
|
Adjustments to reconcile internet loss to internet money utilized in working actions: |
|
|
||||
|
Inventory write-off |
|
194 |
|
|
105 |
|
|
Depreciation and amortization |
|
405 |
|
|
396 |
|
|
Provision for uncertain accounts |
|
— |
|
|
146 |
|
|
Licensing income from a associated occasion |
|
(8,000 |
) |
|
(5,000 |
) |
|
Stock-based compensation |
|
1,008 |
|
|
688 |
|
|
Interest price |
|
108 |
|
|
(382 |
) |
|
Loss in three way partnership |
|
2,582 |
|
|
3,799 |
|
|
Other revenue in three way partnership |
|
(1,455 |
) |
|
— |
|
|
Changes in truthful worth of promissory observe |
|
(605 |
) |
|
2,367 |
|
|
Changes in working property and liabilities: |
|
|||||
|
Accounts receivable |
|
33 |
|
|
106 |
|
|
Inventory |
|
(2,745 |
) |
|
(392 |
) |
|
Prepaid bills and different present property |
|
124 |
|
|
(362 |
) |
|
Other property |
|
15 |
|
|
87 |
|
|
Accounts payable and accrued bills |
|
657 |
|
|
483 |
|
|
Deferred income |
|
102 |
|
|
178 |
|
|
Accrued payroll and advantages |
|
37 |
|
|
249 |
|
|
Net money utilized in working actions |
|
(8,612 |
) |
|
(6,542 |
) |
|
Cash flows from investing actions: |
|
|
||||
|
Purchases of property and tools |
|
(409 |
) |
|
(46 |
) |
|
Investment in three way partnership |
|
(3,081 |
) |
|
(3,779 |
) |
|
Net money utilized in investing actions |
|
(3,490 |
) |
|
(3,825 |
) |
|
Cash flows from financing actions: |
|
|
||||
|
Proceeds from inventory possibility train |
|
134 |
|
|
14 |
|
|
Proceeds from issuance of widespread inventory |
|
5,000 |
|
|
— |
|
|
Net money supplied by financing actions |
|
5,134 |
|
|
14 |
|
|
Effect of overseas trade fee modifications on money and money equivalents |
|
(44 |
) |
|
74 |
|
|
Net lower in money and money equivalents |
|
(7,012 |
) |
|
(10,279 |
) |
|
Cash and money equivalents at starting of interval |
|
9,500 |
|
|
14,648 |
|
|
Cash and money equivalents at finish of interval |
$ |
2,488 |
|
$ |
4,369 |
|
|
|
|
|
||||
|
Supplemental disclosures of money stream info: |
|
|
||||
|
Interest expense paid |
$ |
316 |
|
$ |
762 |
|
|
Supplemental non-cash investing exercise: |
|
|||||
|
Equipment purchases |
$ |
250 |
|
$ |
— |
|
|
Supplemental non-cash financing exercise: |
|
|||||
|
Issuance of shares in reference to a service contract |
$ |
500 |
|
$ |
— |
|
|
Development mortgage discount associated to licensing income |
$ |
8,000 |
|
$ |
5,000 |
|
|
Transphorm, Inc. Reconciliation of GAAP and Non-GAAP Financial Information (unaudited) (in 1000’s besides share and per share information) |
|||||||||||||
|
Three Months Ended |
|||||||||||||
|
|
September 30, 2021 |
June 30, 2021 |
March 31, 2021 |
December 31, 2020 |
September 30, 2020 |
||||||||
|
GAAP internet revenue (loss) |
$ |
5,980 |
|
$ |
(7,052 |
) |
$(6,579 |
) |
$(4,712 |
) |
$ |
(6,740 |
) |
|
Adjustments: |
|
|
|
|
|
||||||||
|
Stock-based compensation |
|
511 |
|
|
497 |
|
513 |
|
705 |
|
|
584 |
|
|
Depreciation |
|
134 |
|
|
123 |
|
123 |
|
130 |
|
|
119 |
|
|
Amortization |
|
74 |
|
|
74 |
|
74 |
|
74 |
|
|
74 |
|
|
Changes in truthful worth of promissory observe |
|
(1,629 |
) |
|
1,024 |
|
699 |
|
(927 |
) |
|
709 |
|
|
Other revenue in three way partnership |
|
(1,455 |
) |
|
— |
|
— |
|
— |
|
|
— |
|
|
Total changes to GAAP internet revenue (loss) |
|
(2,365 |
) |
|
1,718 |
|
1,409 |
|
(18 |
) |
|
1,486 |
|
|
Non-GAAP internet revenue (loss) |
$ |
3,615 |
|
$ |
(5,334 |
) |
$(5,170 |
) |
$(4,730 |
) |
$ |
(5,254 |
) |
|
|
|
|
|
|
|
||||||||
|
GAAP internet revenue (loss) per share – primary |
$ |
0.15 |
|
$ |
(0.07 |
) |
$(0.16 |
) |
$(0.13 |
) |
$ |
(0.19 |
) |
|
Adjustment |
|
(0.06 |
) |
|
(0.06 |
) |
0.03 |
|
— |
|
|
0.04 |
|
|
Non-GAAP internet revenue (loss) per share – primary |
$ |
0.09 |
|
$ |
(0.13 |
) |
$(0.13 |
) |
$(0.13 |
) |
$ |
(0.15 |
) |
|
|
|
|
|
|
|
||||||||
|
GAAP internet revenue (loss) per share – diluted |
$ |
0.14 |
|
$ |
(0.07 |
) |
$(0.16 |
) |
$(0.13 |
) |
$ |
(0.19 |
) |
|
Adjustment |
|
(0.05 |
) |
|
(0.06 |
) |
0.03 |
|
— |
|
|
0.04 |
|
|
Non-GAAP internet revenue (loss) per share – diluted |
$ |
0.09 |
|
$ |
(0.13 |
) |
$(0.13 |
) |
$(0.13 |
) |
$ |
(0.15 |
) |
|
|
|
|
|
|
|
||||||||
|
Weighted common widespread shares excellent – primary |
|
41,196,139 |
|
|
40,637,213 |
|
40,274,660 |
|
35,719,749 |
|
|
35,156,918 |
|
|
|
|
|
|
|
|
||||||||
|
Weighted common widespread shares excellent – diluted |
|
41,362,489 |
|
|
40,637,213 |
|
40,274,660 |
|
35,719,749 |
|
|
35,156,918 |
|
|
|
Three Months Ended |
||||||||||||
|
|
September 30, 2021 |
June 30, 2021 |
March 31, 2021 |
December 31, 2020 |
September 30, 2020 |
||||||||
|
GAAP working bills |
$ |
5,130 |
|
$ |
5,253 |
|
$5,176 |
|
$4,524 |
|
$ |
4,306 |
|
|
Adjustments: |
|
|
|
|
|
||||||||
|
Stock-based compensation |
|
472 |
|
|
470 |
|
475 |
|
657 |
|
|
567 |
|
|
Depreciation |
|
134 |
|
|
123 |
|
123 |
|
130 |
|
|
119 |
|
|
Amortization |
|
74 |
|
|
74 |
|
74 |
|
74 |
|
|
74 |
|
|
Total changes to GAAP working bills |
|
680 |
|
667 |
|
672 |
|
861 |
|
760 |
|||
|
Non-GAAP working bills |
$ |
4,450 |
|
$ |
4,586 |
|
$4,504 |
|
$3,663 |
|
$ |
3,546 |
|
https://www.businesswire.com/information/residence/20211110006370/en/Transphorm-Announces-Fiscal-Second-Quarter-2022-Financial-Results
