indie Semiconductor, Inc. Q1 FY2025 earnings call

ADAS Focus

• ADAS is a major long-term focus. Radar and vision portfolios are on track to ramp production in the second half of 2025 and continue through 2026, with each expected to generate over $100 million incremental annual revenue.

Design Wins

• Flagship 77 gigahertz radar solution progressing well with lead Tier 1 customer. Secured new design wins for vision portfolio, including with Valeo, Korean OEM, Mercedes China, BYD, and Bosch for in-cabin monitoring.

Photonics Progress

• Photonics group secured design wins for high-performance laser products in industrial and quantum communications applications.

Cumulative Shipments

• Indie has shipped greater than 500 million chips cumulatively since inception.

Indie Semiconductor's first quarter revenue was $54.1 million, a 3.3% increase from the year ago period but marginally below the midpoint of the revenue outlook. Non-GAAP gross margin was 49.5% within expectations. R&D expense was $30.8 million, SG&A was $11.1 million, total operating expenses were $41.9 million, resulting in a non-GAAP operating loss of $15.1 million. Net loss was $16.7 million and loss per share was $0.08 on 211.5 million shares.

Second Quarter Outlook

• Anticipates revenue in the range of $50 million to $53 million (midpoint $51.5 million), non-GAAP gross margin 48%-50%, OpEx $39.8 million, net loss per share $0.08 at midpoint.

Restructuring Plan

• Initiated restructuring to exit lower margin product lines, expecting initial benefits in Q2, meaningful in Q3, full reductions in Q4 with quarterly reduction of $8 million-$10 million or annualized $32 million-$40 million. Breakeven at approximately $65 million quarterly revenue.

• Global trade policies and tariffs impacting market sentiment and OEM production. - Market uncertainties leading to potential demand fluctuations in the automotive industry.

Q: Craig Ellis asked about the breadth and quantification of radar and vision ramp.

A: Donald McClymont said there are many wins in various applications, each product line has potential over $100M annual revenue, but ramp steepness is hard to gauge due to market uncertainties.

Q: Craig Ellis followed up on Q4 OpEx after restructuring.

A: Mark Tyndall said Q4 OpEx is approximately $33 million.

Q: Ross Seymore asked about impact of restructuring on pipeline.

A: Donald McClymont said impact is minimal, with small NREs and short-term revenue impacts but long-term pipeline mostly intact.

Q: Anthony Stoss asked about breakeven in Q4 and backlog.

A: Donald McClymont said still expects breakeven in Q4, backlog directionally still growing with some puts and takes.

Q: Cody Acree asked about China business and channel inventory.

A: Donald McClymont said China business trajectory strong, no material changes in inventory from past comments.

Q: Jon Tanwanteng asked about M&A plans and CFO recruitment.

A: Donald McClymont said conservative with balance sheet, CFO search ongoing with candidates, no firm timeline on M&A opportunities.