Power Integrations, Inc. (NASDAQ:POWI) Q1 2023 Earnings Conference Call May 4, 2023 4:30 PM ET

Company Participants

Joe Shiffler - Director, IR & Corporate Communications

Balu Balakrishnan - President, CEO & Director

Sandeep Nayyar - CFO & VP, Finance

Conference Call Participants

Ross Seymore - Deutsche Bank

Tore Svanberg - Stifel

David Williams - The Benchmark Company

Christopher Rolland - Susquehanna

Operator

Hello, ladies and gentlemen. Welcome to the Power Integrations Q1 Earnings Conference Call. Today's call is being recorded. After the speakers' remarks, there will be a question-and-answer session. [Operator Instructions]. Thank you. I will now turn the call over to Joe Shiffler, Director of Investor Relations. Please go ahead.

Joe Shiffler

Thank you. Good afternoon, everyone. Thanks for joining us. With me on the call today are Balu Balakrishnan, President and CEO of Power Integrations; and Sandeep Nayyar, our Chief Financial Officer.

During this call, we will refer to financial measures not calculated according to GAAP. Non-GAAP measures for the first quarter exclude stock-based compensation expenses, amortization of acquisition-related intangible assets and the tax effects of these items. A reconciliation of non-GAAP measures to our GAAP results is included in today's press release.

Our discussion today, including the Q&A session, will include forward-looking statements denoted by words like will, would, believe, should, expect, outlook, plan, forecast, anticipate, prospects and similar expressions that look towards future events or performance. Such statements are subject to risks and uncertainties that may cause actual results to differ materially from those projected or implied. Such risks and uncertainties are discussed in today's press release and in our most recent Form 10-K filed with the SEC on February 7, 2023.

Finally, this call is the property of Power Integrations, and any recording or rebroadcast is expressly prohibited without the written consent of Power Integrations. Now I'll turn the call over to Balu.

Balu Balakrishnan

Thanks, Joe, and good afternoon. Last quarter, we said that our Q1 results would reflect difficult macro and cyclical conditions, but the channel inventories would continue to fall and that Q1 would be the bottom of the cycle with the recovery beginning in Q2, led by the smartphone market. Those projections are proving true. And while the slope of the recovery is uncertain, we are confident that Q1 was the bottom and that a cyclical recovery is underway. Meanwhile, we continue to make excellent progress on secular growth opportunities such as motor drive, automotive and GaN, among others, and I'll touch on each of those in a moment.