GOLETA, Calif.—November 10, 2020—Transphorm, Inc. (“Transphorm” or the “Company”) (OTCQB: TGAN) —a pioneer in and global supplier of high reliability, high performance gallium nitride (GaN) power conversion products—today announced financial results for the third quarter ended September 30, 2020.
Recent Business Highlights
“We continued to execute on our plans and make notable progress on our product development and design win traction during the third quarter, despite the challenging environment,” said Mario Rivas, Transphorm’s CEO. “We have expanded our pipeline of customer engagements in the fast charging power adapter market and also broadened our portfolio of high-voltage GaN power conversion devices, all of which continue to demonstrate excellent reliability in the field. We believe Transphorm’s strong patent and product portfolio, partnerships and government programs uniquely position the Company for meaningful growth in the coming year.”
Third Quarter of 2020 Results
Revenue was $1.9 million in the third quarter, compared to $1.0 million in the third quarter of 2019 and $6.3 million in the second quarter of 2020, which included $5.0 million in licensing revenue. For the first nine months of 2020, revenue was $9.4 million as compared to $2.0 million in the prior year period.
Operating expenses were $4.3 million in the third quarter, compared to $4.2 million in the prior quarter and $3.9 million in the third quarter of 2019. Third quarter 2020 operating expenses consisted of R&D expenses of $1.1 million and SG&A expenses of $3.2 million.
Net loss for the third quarter of 2020 was ($6.7) million, or ($0.19) per share, compared to a net loss of ($2.3) million, or ($0.06) per share, in the prior quarter and a net loss of ($5.4) million, or ($0.19) per share, in the third quarter of 2019. For the first nine months of 2020, net loss improved to ($13.2) million, or ($0.39) per share, from ($17.7) million, or ($0.63) per share, in the same period of 2019.
Cash and equivalents as of September 30, 2020 were $4.4 million, compared to $9.4 million as of June 30, 2020.
Transphorm will host a conference call today at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) to review the Company’s third quarter results and provide a business update. The conference call will be webcast live over the Internet with an associated slide presentation, which can be accessed by all interested parties in the Investor Relations section of Transphorm’s website at www.transphormusa.com. Investors and analysts may also join the conference call by dialing 1-833-529-0218 and providing the conference ID 4159235. For those unable to attend the live webcast, a replay and the supporting presentation materials will be available on the day of the conference call and for approximately 90 days in the Investor Relations section of the Company’s website. Additionally, a telephone replay of the conference call will be available approximately two hours after the conclusion of the call and through November 17, 2020. The telephone replay can be accessed by dialing +1-416-621-4642 and entering the conference ID 4159235.
Transphorm, Inc., a global leader in the GaN revolution, designs and manufactures high performance and high reliability GaN semiconductors for high voltage power conversion applications. Having one of the largest Power GaN IP portfolios of more than 1,000 owned or licensed patents, Transphorm produces the industry’s first JEDEC and AEC-Q101 qualified high voltage GaN semiconductor devices. The Company’s vertically integrated device business model allows for innovation at every development stage: design, fabrication, device, and application support. Transphorm’s innovations are moving power electronics beyond the limitations of silicon to achieve over 99% efficiency, 40% more power density and 20% lower system cost. Transphorm is headquartered in Goleta, California and has manufacturing operations in Goleta and Aizu, Japan. For more information, please visit www.transphormusa.com. Follow us on Twitter @transphormusa.
This press release contains forward-looking statements (including within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended, and Section 27A of the United States Securities Act of 1933, as amended) concerning the Company’s technology and product offerings, industry acceptance of GaN technology, and the Company’s pipeline and future anticipated growth. Forward-looking statements generally include statements that are predictive in nature and depend upon or refer to future events or conditions, and include words such as “may,” “will,” “should,” “would,” “expect,” “plan,” “believe,” “intend,” “look forward,” and other similar expressions among others. Statements that are not historical facts are forward-looking statements. Forward-looking statements are based on current beliefs and assumptions that are subject to risks and uncertainties and are not guarantees of future performance. Actual results could differ materially from those contained in any forward-looking statement as a result of various factors, including, without limitation: risks related to Transphorm’s operations, such as additional financing requirements and access to capital; competition; the ability of Transphorm to protect its intellectual property rights; and other risks set forth in the Company’s filings with the Securities and Exchange Commission. Except as required by applicable law, the Company undertakes no obligation to revise or update any forward-looking statement, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.