PI Q2 2022 EPS call notes - 7/27/22
A lot of congratulations, one guy even said Strong Congrats.
- Obviously a beat and raise quarter, and upside in wafer supply was the primary driver. Most of the call focused on this. They expect an increase in supply in Q3, and again in Q4. Q2 orders again exceeded supply by more than 50%. They indicated they are a high priority at TSMC and expect that to continue. They also commented that while many other customers and industries are larger than they are, that will not always be the case. Just a strong statement of the growth they see ahead. They didn't want to speculate about 2023 supply or what book to bill or backlog will look like exiting 2022.
- Their Asia based self checkout customer is expanding locations.
- They are seeing continued revenue expansion at their European loss prevention customer.
- They discussed the UPS(I'm just gonna call it UPS even though they don't say it) deployment. They expect meaningful endpoint IC's there in 2023. It is going well, the testing phase is done, they are at the scaling to production phase.
- They took advantage of market conditions and bought back some convertible debt.
- They are experiencing a systems component shortage too. It will impact Q3, expect it to improve in Q4. No comment beyond that.
- On the financial side, they have upgraded their target of EBITDA breakeven to EBITDA positive, and their results reflect this. The next step will be free cash flow positive, but they are not providing details yet when that will occur.
- They are well booked into 2023, which they consider especially impressive because they are normally a quick turn business, with 50% of orders traditionally shipping in the same Q. |
