PI Q1 2022 EPS call notes - 4/27/22
I've been out of the country, catching up.
- They have record backlog, which now extends into 2023. Endpoint IC demand exceeded supply by over 50%, as it has the prior three Q's. They believe inlay partners would have ordered even more if supply was available.
- Secured modest upside to wafer volumes, allowing them to forecast Q2 and Q3 shipments will be above Q1. Too difficult to forecast beyond Q3.
- Supply chain and logistics drove reader growth. Their 2nd NA logistics customer, which is clearly UPS, had the largest revenue to date in Q1. They believe this deployment continues to be strong into 2023, when they will become a significant drive of endpoint IC growth. While they have never identified UPS publicly, an analyst pointed out UPS delivered 6.4B packages in their latest 10-K report.
- They said they are seeing many multi-billion IC opportunities amongst large Fortune 500 and Fortune 100 companies.
- Existing retail customers are expanding beyond apparel into new categories.
- The large European retailer deploying loss prevention is expanding their deployment, they expect 3X revenue over the expansion (initial was $6M), starting in Q2. They consider the success of the initial deployment and expansion as models for the industry.
- M700 % volumes passed 50% in Q3 and were the lion's share in Q4.
- Every analyst had a Congrats, always a good sign, although their reports weren't particularly bullish in the short term.
Cooters |
