“We finished fiscal year 2026 with strong momentum, delivering a fifth consecutive quarter of sales growth at $243 million.” (CEO)
“Our content opportunity per rack scales from approximately $150 in today’s servers to over $425 in next-generation AI configurations.” (CEO)
“We secured two design wins with leading Chinese robotic companies for use in robotic joints during the quarter.” (CEO)
“Q4 sales increased by 6% sequentially and 26% year-over-year.” (CFO)
“For the full year, free cash flow was a record $125 million.” (CFO)
Prepared Metrics
Metric
Value
Speaker/Context
Q4 Revenue
$243M
CFO, +26% YoY
Q4 EPS (non-GAAP)
$0.17
CFO, +183% YoY
Q4 Gross Margin
50.0%
CFO
Q4 Operating Margin
15.6%
CFO
Q4 Auto Sales
$164M
CFO, +18% YoY
Q4 Industrial & Other Sales
$79M
CFO, +49% YoY
Q4 Data Center as % of Sales
14%
CFO, record
FY26 Revenue
$890M
CFO, +23% YoY
FY26 EPS (non-GAAP)
$0.54
CEO, more than doubled
FY26 Gross Margin
49.4%
CFO, +140 bps YoY
FY26 FCF
$125M
CFO, record
Q1 FY27 Revenue Guidance
$245M–$255M
CFO, midpoint +23% YoY
Q1 FY27 EPS Guidance (non-GAAP)
$0.19–$0.23
CFO
Q&A Batch (1-5 of 7)
Q1 — Gary Mobley
Topic: Backlog drivers, gross margin drop-through, and pricing
Key points:
Backlog at multiyear high; data center confidence from customer visits, with current sensors ramping and fan driver demand strong.
Automotive shows strength in backlog and design wins, with higher dollar content wins prevalent.
Q4 gross margin drop-through was low 50s due to annual price negotiations; Q1 guide (50%-51% GM) implies drop-through near 70%.
FY’26 gross margin improved 140 bps despite annual price declines and cost headwinds (commodity, fuel); select price increases start end of Q1.
Mgmt stance: Bullish — cites strong backlog, design win momentum, and ability to offset cost headwinds via factory efficiencies and select price increases.
Q2 — Neil Young
Topic: Data center growth durability and gross margin bridge to >55%
Key points:
Data center long-term growth rate “well north of 20%”; FY’27 growth expected “well above 20%”.
Majority of data center revenue still from fan drivers; current sensors grew from ~0% in FY’23 to ~10% in Q3 and ~20% in Q4 of FY’26.
Isolated gate driver revenue still 18-24 months out.
Gross margin bridge: operating leverage (60%-65% variable contribution margin), gold-to-copper conversion (200 bps headwind in FY’26 alone), and factory efficiencies (offset 200 bps of gold headwinds in FY’26).
Mgmt stance: Bullish — data center growth durable; gross margin drivers are controllable (conversion, efficiencies) and volume-dependent (leverage).
Q3 — Joseph Quatrochi
Topic: Focus Auto performance and non-data center industrial drivers
Key points:
Focus Auto up ~30% year-over-year in FY’26; expects similar in FY’27, driven by share gains and expanding dollar content (outgrow SAAR +7%-10%).
Q4 Focus Auto flat/down slightly due to China; design wins led by China ADAS applications.
Auto and Focus Auto expected up “a couple of percentage points” in Q1; Q1 led by data center on industrial side.
Non-data center industrial strength from robotics/industrial automation, energy infrastructure (pull-through from data center build-outs), and 2-wheeler market.
Mgmt stance: Bullish — positive on Focus Auto future and ability to outgrow auto production; sees meaningful movement in robotics and energy.
Q4 — Timothy Arcuri
Topic: Data center growth assumptions in Q1 guide and foundry cost pressure
Key points:
Data center was 14% of total sales in Q4; expected to be 16%-17% in Q1, implying 20%-25% sequential growth (not a slowdown, law of large numbers).
FY’26 data center started at 2%-3% of sales; rebound in fans and current sensors drove growth.
Foundry costs not the biggest headwind; main headwinds are gold and fuel/freight charges.
Select price increases (including surcharges for gold/fuel) begin end of Q1; first approach is cost efficiencies and gold-to-copper conversion.
Mgmt stance: Neutral — data center growth still strong but decelerating sequentially; cost pressures manageable via partnerships and price actions.
Q5 — Vijay Rakesh
Topic: Data center growth trajectory and auto memory constraints
Key points:
Data center revenue grew from ~$150M to ~$425M in FY’26 (implied ~2.8x); long-term growth rate “north of 20%”; FY’27 expected “well above 20%”.
Growth driven by architectures (e.g., 800-volt) and current sensor ramp; speed correlated to adoption and market share.
No memory constraints impacting orders; customers express concern but no order impact observed.
Mgmt stance: Bullish — positive on data center content evolution and architectural trends; no near-term supply chain disruption from memory.