Introduction

Transphorm, Inc. (NASDAQ: TGAN), a global leader in GaN technology, announced its financial results for the second quarter of its fiscal year ending March 31, 2024.

Financial Data of Transphorm

In Q2 Fiscal 2024, Transphorm reported total revenue of $5.0 million, an increase of 36.5% over the same quarter last year. Product revenue was $3.55 million, showing a 12% increase from the same quarter last year and an 18% increase from the prior quarter. Government contract revenue was $1.46 million in the quarter, compared to $2.9 million in the prior quarter.

The gross margin in the quarter was 23.4%, exceeding the company's expectations. It represented an increase of 11.5% year-over-year, but was down from 35.5% in the prior quarter due to the lower mix of government contract revenue.

Operating expenses were $7.7 million in Q2 Fiscal 2024, compared to $8.9 million in the previous quarter. Net loss for Q2 Fiscal 2024 was ($7.1) million, or ($0.12) per share.

Transphorm's CEO and Co-Founder, Primit Parikh, commented on the strong sequential and year-over-year product sales growth, accompanied by improved gross margin. The company anticipates continued strong growth in product revenue in the third fiscal quarter.

The CFO, Cameron McAulay, highlighted the significant outperformance in gross margin at 23% and the reduction in cash burn from $6.8 million in the first quarter of fiscal 2024 to $5.1 million in Q2 Fiscal 2024. The company also has zero debt on its balance sheet.

Summary of ChargerLAB

Overall, Transphorm is making progress in its strategic review process to enhance stockholder value and is actively engaged in various business initiatives to drive growth and innovation in the GaN market.

Warm reminder: The above information is for reference only and not as market entry advice; investment is risky and caution is required when entering the market.