Phil Davies : So, if you look at the chipset that we showed, basically the power module family that’s making up most of the solutions that we’re bringing forth, because as we talked about before, this is a very scalable technology, right. You can have a 5-10-kilowatt, 800-volts to 48-volt system, and then you can add more modules to scale it to 15-20 kilowatts, and so forth. So, so that’s really loved by the automotive OEMs. And also some of the Tier 1 that we’re now working with so. So the applications are 800-volts to 48 800 volts to 48 to 12, then you can go 400-volts to 48 to 12, or 400 volts to 12. So, different types of car platforms that use that downconversion capability that we can offer in two or three power modules.
On the other side, Patrizio mentioned the 150 kilowatt, that’s for an onboard charger for rapid charging. It’s a 400-volt 800-volt bidirectional buck boost, if you like converter system with 98% 99% efficiency. If you hold it in the palm of your hand and you can get 30 plus kilowatts out of it. We showed it at WCX last week, and actually in a module form that can achieve I think, was 150 kilowatts in the stack that we have.
Patrizio Vinciarelli : In a stack of right now with some OEMs, five modules going down to four modules going down to three modules, with the power density that is literally five times better in terms of volume and weight than any competitive alternative.
Phil Davies : So Richard, in Q1 I mentioned here just briefly again, we had a supplier agreements with a major Tier 1. We signed that expanded design wins that OEMs we started working with almost two years ago, with additional platforms and new applications like the onboard charger example. We also have three new collaborations in the quarter, and added a major design wind with an SOP in 2026. Those are from my comments earlier. We’ve got quite a number of collaborations going on now globally. But all of them centered around that 800-volt downconversion to 48 or 12 or 400 volt downconversion 48 to 12. And then also 48 to 12 applications with wire harness type companies. And then also these rapid charge onboard charger systems at very high power levels with a number of OEMs in Tier 1s. So it’s a really, it’s quite a mix. And as I said before, I’m very excited about it. We’re really engaged with a very high-class level of OEMs in Tier 1s now. It’s very exciting.
Richard Shannon: Okay. A lot of detail there to unpack. I think it got some good notes there. I think I’ll jump out of line here though. Thank you very much guys.
Operator: Thank you. The next one question is from Doug Campbell. Please go head over. I will unmute you now, please also unmute yourself from your end. We can hear you now.
Doug Campbell: Can you hear me guys.
Phil Davies : Yes.
Doug Campbell: Hey. Okay. Just a couple of quick questions. First of all, Patrizio congratulations on the Forbes article. I thought it was really great to see you talking to a broad span of people, obviously, Forbes is a great publication. And I thought it was well written and explained the story pretty well. I thought it was a very handsome photo of you as well. So congrats on that. I guess my only question is with the drawdown in the backlog in some of the timeframes you’ve given for new products and new OEM contracts. And all of the above with the new factory pretty much not being online till July, August, or in that timeframe. I’ve kind of viewed this year as a transition year. Do you see the backlog being significantly drawn down? I don’t want to say to zero, but, as we enter Q3-Q4. I mean, will the backlog just be eliminated at this point.
Patrizio Vinciarelli : So it’s hard to tell exactly what’s going to happen. But in terms of bookings, we believe that the low point took place in Q4, with an improvement in Q1, a further improvement in Q2 expected. But because of the uncertainties with respect to some of these programs, ramping, which is really sappy we can control. It start to believe exactly what is going to happen for the parts of the year with respect to backlog. Our revenues in Q1 were not limited by backlog. We’re still playing catch up with respect to the backlog. And even in Q2, we’re going to be playing catch up. So in one way of looking at it, in terms of taking care of customer needs, in the short term, the monkey is not on the back of the front end of the business is still on the back end in terms of operations, stepping up to the bar, given the challenges without sourcing of some of the chip processes, which is still being a fact though it was a month, getting the apple within the quarter.
Doug Campbell: Well, two things. I have to believe that you guys are counting the seconds before you can produce everything in house. Because I know as investors, I’m not going to be, I’m not going to say, we’re so tired of hearing about the outsourced manufacturing problems, when you guys control this, it’s going to be a game changer. I guess I was thinking the drawdown was going to occur because you talked about. I guess, new orders or new projects in Q4, maybe heading into next year. So I was I was thinking that the bulk of the revenue for the next few quarters would come out of that backlog. I do realize it’s significant for the book-to-bill. Again, you don’t get specifics, but I know we’re significantly below one it’s improving.
What if it stays, let’s say below 0.6 to 0.7. Is that backlog is going to draw down pretty quick. So I mean, have any of your conversations talked about economic weakness or the most forecasted recession that we’ve ever seen before? I mean, it hasn’t hit yet. But everyone’s pointing to it. That’s also makes me a little antsy, and that your plan is about to come online. And you have all these great industries and all these great potential customers. I’m also concerned about the macro. And I’m concerned about how deep will the recession be if there’s a recession? Do we have a — do we have a repeat of Q4 of ’18, where certain OEMs just shut off the order flow for a certain period of time. I know you can’t predict that, but I’m wondering if you’re getting any feedback from any of these larger guys.
I mean, Microsoft’s quarter was great today, also it was better than expected. So I’m wondering what you guys are hearing.
Patrizio Vinciarelli : So I’m not really concerned about these factors. Obviously, they are there. And they have a certain degree of predictability. But I feel I mean it’s still callable because of the technologies, the products, the fab, the scalability, the cost effectiveness, the diversification with respect to end markets, the diversification, the diversification with these converging of 48-volt as an infrastructure for power distribution. So all these things the other day will bring about more demand than our fab, we’ll be able to supply which is a substantial multiple of our current revenues.
Doug Campbell: But I wanted to hear, I love it.
Patrizio Vinciarelli : Level of disability not a lot says, but I’m not losing any sleep with respect to ability to feel the fab.
Doug Campbell: Well just — I’ll just finish with this because I think not enough time. I have no doubts about your future. I’m just concerned with the present. That’s as an investor, that’s all I’m concerned with. Your future to me two, three, four years out, I have no doubts where the company will be. Just the last couple of quarters in the next couple of quarters, for me as a fund manager, it’s a little tricky. That’s all.
Patrizio Vinciarelli : I think, by the way, your treasure words. This year being a transition year, I think that’s very much on point. It is a transitional year, for a number of reasons. But the year is progressing to be getting to the end of the year before we got. And all these critical elements are going to be in place.
Doug Campbell: Well, the future in all these industries has panned out exactly as you forecasted years ago. So I just — I hope we all make a boatload of money on top of it all.
Patrizio Vinciarelli : Thank you. Okay.
Operator: Thank you. Next question is from another caller. So please unmute yourself from your end, using star and six. And I will also on this view from our side.
Quinn Bolton : Hey, this is Quinn Bolton from Needham. Can you guys hear me?
Patrizio Vinciarelli : Hey, Quinn. Yes.
Quinn Bolton : Hey, hopefully this is a better connection. Just a couple of follow ups. Last quarter, you talked about the ability to potentially come in on some redesigns where processors had shipped initially using multi-phase and you saw the opportunity to redesign this board for Vicor components. Can you just give us an update, whether you still see that opportunity and if you do are those going to be the lateral or are those lateral vertical designs.
Patrizio Vinciarelli : So, some of these solutions suggested earlier are severely handicapped by their lack of PDN. Vicor solution that is still lateral within effect the constraints of the lateral PDN offers performance advantages in terms of lower noise, some increase in power density, but not on the scale of a lateral vertical solution and even less so on the scale of full vertical. The transition in terms of the architecture suggested earlier is not as quick and simple as some of us would like it to be because of the nature of the design process with 4G components is a novelty in terms of different kinds of PDN that customers, OEMs struggle with in terms of appreciating the benefits through the various stages of the design process.
And that’s what has led to delays and some level of visibility. But I can generally say that there is growing recognition of major benefits. It’s not just slashing the PDN losses OEMs are coming to realize that they use as much of a power saving in the silicon itself, because frankly the handicap results into large voltage differentials within domains the primary rail, and axillary rails that require a significant increase in power dissipation within the silicon itself. So the advance that is brought about by our a lateral vertical PDN even before we get to fully vertical PDN it gets measured not just that by 50-60-70 watts worth of reduction in PDN loss there is just about as much of a reduction in power loss within the silicon and better functionality of the silicon and at lower noise.
Quinn Bolton : I understand, Patrizio, that the benefits of lateral vertical and vertical only out in the future. I guess what I’m trying to and I think a number of investors in the company and many on this call are trying to ask is will — do we effectively need to wait for next generation 3-nanometer XPUs before we see the significant ramp of lateral vertical or vertical only solutions? Can you ramp lateral vertical on existing 5-nanometer processors over the next year?
Patrizio Vinciarelli : Yeah, so as we said earlier in the call, we believe that that may well be ran with the lateral solution because of certain benefits even though the PDN is still a handicapped. We believe that before too long, there’s going to be a ramp for ladder vertical alternatives that has got distinct advantages all around and all these are developments that are based on current silicon have not contingent on the 3-nanometer that Phil made referenced to in our most recent prior conference call. What he was pointing to there is it those developments making it practically speaking possible for lateral solution who and gauging the latest requirement of our 5G platform solution.
Phil Davies : We have some feedback on the line Quinn. Hopefully you caught that. Hello Quinn? Operator, are you there?
Quinn Bolton : Hey guys, I had put at muted, because of the background noise. Hopefully you can hear me again.
