Financial Data and Key Metrics Changes - Net sales for Q3 2026 were $229 million, representing a 7% sequential increase and a 29% year-over-year increase [11] - Non-GAAP earnings per share (EPS) were $0.15, up 15% sequentially and 114% year-over-year [11] - Gross margin was 49.9%, an increase of 30 basis points sequentially, and operating margin was 15.4%, up 150 basis points compared to Q2 [11][13] - Adjusted EBITDA was 20.1% of sales, indicating strong operating leverage [11] Business Line Data and Key Metrics Changes - Automotive sales increased by 6% sequentially and 28% year-over-year, with e-mobility sales growing by 46% year-over-year [11] - Industrial and other sales increased by 11% sequentially and 31% year-over-year, driven by data center growth [11] - Distribution sales rose by 11% sequentially and 39% year-over-year [11] Market Data and Key Metrics Changes - Sales by geography: 30% in China, 27% in the rest of Asia, 17% in Japan, 15% in the Americas, and 11% in Europe [12] - Data center sales established a new quarterly record at 10% of total sales, up 31% sequentially [5][11] Company Strategy and Development Direction - The company is focusing on growth in ADAS, xEV, and data center markets, with significant design wins in these areas [4][6] - A new isolated gate driver IC for silicon carbide transistors has been released, targeting the data center power supply market [6][9] - The company is expanding its product portfolio to capitalize on industrial opportunities, including robotics [7][8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in automotive growth, citing strong bookings and backlog, particularly in e-mobility and ADAS [28][40] - The company anticipates Q4 2026 sales to be in the range of $230 million to $240 million, representing a 22% year-over-year increase [14] - Management noted that inventory levels in automotive remain lean, with no significant increases observed [29][40] Other Important Information - Cash flow from operations was $45 million, with free cash flow at $41 million, or 18% of Q3 sales [13] - The company ended Q3 with cash of $163 million and a term loan balance of $285 million [13] Q&A Session Summary Question: Gross margin dynamics and guidance - Management explained that gross margin was impacted by geographic and product mix, with expectations for improvement in the next quarter [19][20] Question: Sell-in versus sell-through dynamics - Management confirmed that sell-in and sell-through were close to equal, with expectations for them to remain balanced going forward [21][23] Question: Automotive growth outlook - Management indicated that automotive growth would be flat to marginally down in the next quarter due to seasonal factors, but expressed confidence in long-term growth [27][28] Question: Data center business growth - Management highlighted that fan drivers are currently the largest segment in data center sales, with expectations for growth from current sensors and gate drivers in the future [32][34] Question: E-mobility growth expectations - Management projected a 16% growth rate for the e-mobility segment, driven by strong demand in ADAS and xEV applications [91] Question: Operating expenses and future guidance - Management indicated that operating expenses would see inflationary increases, but overall discipline would be maintained [42][56] Question: Current sensing technology and market position - Management discussed the growth potential of current sensing technologies, emphasizing the transition from Hall-effect to TMR sensors [80][82] Question: Capital allocation and debt management - Management expressed comfort with the current debt levels and indicated a balanced approach to liquidity and debt repayment [84][86]