Transphorm(US:TGAN)2024-02-20 21:11Financial Performance - Total revenue for Q3 Fiscal 2024 was $4.7 million, representing a 4.0% increase year-over-year and a 6.8% decrease from the prior quarter[4]. - Total revenue for the three months ended December 31, 2023, was $4,670,000, a 3.9% increase from $4,493,000 in the same period last year[28]. - Net loss for Q3 Fiscal 2024 was ($10.0) million, or ($0.20) per share, compared to a net loss of ($7.1) million, or ($0.12) per share, in the prior quarter[10]. - The net loss for the three months ended December 31, 2023, was $10,001,000, compared to a net loss of $10,460,000 in the same period last year[28]. - Non-GAAP adjusted EBITDA for the three months ended December 31, 2023, was $(6,905,000), compared to $(8,521,000) in the same period last year[30]. Revenue Breakdown - Product revenue decreased to $3.2 million, down 20% year-over-year and 11% sequentially, while government revenue increased by 180% to $1.5 million compared to the same quarter last year[4]. Expenses - Operating expenses rose to $9.0 million, up from $7.7 million in the prior quarter and $7.2 million in Q3 Fiscal 2023, primarily due to legal expenses related to the acquisition agreement[9]. - Operating expenses increased to $8,996,000 for the three months ended December 31, 2023, from $7,229,000 in the same period last year, representing a 24.4% increase[28]. - Research and development expenses for the three months ended December 31, 2023, were $2,839,000, up from $2,325,000 in the same period last year[28]. Cash and Assets - Cash, cash equivalents, and restricted cash as of December 31, 2023, were $8.0 million[11]. - Cash and cash equivalents decreased to $7,951,000 as of December 31, 2023, down from $15,527,000 as of March 31, 2023[26]. - Total assets decreased to $32,662,000 as of December 31, 2023, from $44,452,000 as of March 31, 2023[26]. - Total liabilities decreased to $14,412,000 as of December 31, 2023, from $24,837,000 as of March 31, 2023[26]. Gross Margin - Gross margin improved to 1.6%, compared to (59.4)% in Q3 Fiscal 2023 and 23.4% in the prior quarter, impacted by a $250K consumption tax adjustment and $170K in non-recurring scrap[4]. - Gross profit for the same period was $75,000, compared to a gross loss of $2,669,000 in the prior year[28]. Strategic Initiatives - Total design-ins for higher power applications increased by 20% to over 120, with over 35 in production[4]. - Launched two new SuperGaN devices with improved efficiency, offering 25% lower energy losses in internal tests[4]. - Announced a collaboration with Allegro MicroSystems to enhance GaN power system performance for high power applications[4]. - Transphorm entered into a definitive agreement to be acquired by a subsidiary of Renesas Electronics Corporation, valuing the company at approximately $339 million[1].