Kevin Garrigan

Kevin Garrigan of Jefferies asked about the evolving nature of customer conversations on the Quantum Compute as a Service (QCaaS) side, and what key metrics customers prioritize when evaluating quantum solutions, such as speed-up time, convenience, or the superior performance of D-Wave's quantum annealer.

Answer

CEO Alan Baratz emphasized that D-Wave's annealing quantum systems are currently the only ones delivering commercial value and being used in production for real-world problems, offering a clear commercial ROI. He explained that D-Wave engages customers on initial applications, confidently identifies potential benefits upfront, and validates the value, which then leads to the application moving into production and generates interest in additional applications. He cited a Fortune 100 deal where initial application success led to an 'all-you-can-eat' license, demonstrating the focus on tangible bottom-line improvements.

Kevin Garrigan inquired about the evolution of customer conversations regarding QCaaS, specifically what key metrics customers prioritize when evaluating quantum solutions, such as speed-up time, convenience, or the superiority of D-Wave's quantum annealer.

Answer

CEO Alan Baratz emphasized that D-Wave's annealing quantum systems are unique in delivering commercial value and being used in production today. He explained that customer engagement starts with an initial application, where D-Wave demonstrates a strong ROI, leading to interest in additional applications and larger enterprise-wide licenses, as seen with a recent Fortune 100 deal.

Kevin Garrigan of Rosenblatt Securities asked about customer retention rates and how renewing customers identify new applications for D-Wave's quantum annealer.

Answer

CFO John Markovich stated the retention rate is over 90% for the last four quarters. CEO Alan Baratz added that they have two customer types: 'do-it-yourself' users and larger enterprises engaged through professional services on multi-application roadmaps. He noted the Quantum Launchpad program helps convert DIY users to more structured, value-driven projects.

Kevin Garrigan inquired about the status of the SkyWater regulatory approval process and any unexpected developments, as well as the strategic fit and gap-filling capabilities of the Seed Innovations acquisition.

Answer

Inder M. Singh, IonQ's CFO and COO, stated that the SkyWater regulatory process is well-defined and the acquisition model benefits the nation and industry, reinforcing IonQ's role as a merchant supplier. Niccolo de Masi, Chairman and CEO, explained that Seed Innovations, a classified software mission control business, integrates IonQ's solutions for federal agencies and the DOD, enhancing programs like SHIELD and the broader quantum platform. Inder M. Singh added that Seed's DevSecOps capabilities are relevant across all of IonQ.

Kevin Garrigan inquired about the current status of the SkyWater regulatory approval process and any recent developments, as well as the strategic fit and gaps filled by the SEED Innovations acquisition.

Answer

CFO and COO Inder Singh stated that the SkyWater regulatory process is well-defined and the acquisition is seen as beneficial for the industry, reinforcing IonQ's role as a merchant supplier. Chairman and CEO Niccolo de Masi explained that SEED Innovations, a classified software mission control business, integrates IonQ's component solutions for government agencies and enhances DevSecOps capabilities across the company.

Kevin Garrigan questioned if there were any remaining technology gaps the company might fill via acquisition and asked for more details on the real-world quantum AI applications being explored with Japan's AIST.

Answer

CEO & Chairman Niccolo de Masi stated that the company's "north star" is to lead in the complete quantum internet—from sensors to computers to networks—and they will continue to evaluate opportunities to accelerate their roadmap. Speaking more broadly on AI, he pointed to existing successes in industrial AI and drug discovery as examples of quantum machine learning, emphasizing that IonQ partners with industry leaders like NVIDIA and AWS to deliver end-to-end solutions and is expanding into verticals like financial services.

Kevin Garrigan inquired about the Q4 2025 performance of Navitas' high-power end markets and their expected trajectory for Q1 2026, also seeking an update on the 800V architecture opportunity and customer decision timelines.

Answer

CFO Todd Glickman indicated that high-power markets drove quarter-over-quarter revenue growth in Q4, though specific market breakdowns were not provided. CEO Chris Allexandre elaborated on ongoing hyperscaler collaborations and product sampling for 800V HVDC, noting a 2027 timeline for the major GaN inflection point, while SiC in classic AC-DC is growing in 2026.

Kevin Garrigan asked about the performance of Navitas' high-power end markets in Q4 2025, their trajectory for Q1 2026, and an update on the 800-volt architecture opportunity, including customer decision timelines.

Answer

CFO Todd Glickman stated that high-power markets drove quarter-over-quarter revenue growth in Q4, with expectations for continued strong performance as mobile business becomes immaterial. CEO Chris Allexandre discussed ongoing collaboration with hyperscalers on 800V HVDC adoption, noting new product samples and the 10kW DC-DC brick, but indicated it's too early for a confirmed timeline. He clarified that 800V HVDC is a significant step function for power content, driven by rack architecture changes expected around 2027, while SiC is already seeing growth in classic AC-DC architectures for current AI data centers.

Kevin Garrigan inquired about NXP's expanded use of Arteris solutions, asking if Arteris is seeing more interest from customers to deploy an entire suite of solutions, and if this trend pushes licensing ASPs well above the previously targeted $1 million. He also asked about the strength in royalties, whether it was driven by a specific end market or customer diversification.

Answer

CEO Charlie Janac confirmed that deploying the full suite, especially with the Cycuity acquisition, would push ASPs well north of $1 million. He attributed this to requirements like ISO 21434 certification for cybersecurity and the dynamics of chiplet projects, where each chiplet represents a separate license and royalty. CFO Nick Hawkins added that royalty strength was due to both customer diversification and growth in major royalty reporters (from 1 to 9 in 5 years), with a balanced mix across automotive (largest), consumer, enterprise, and aerospace segments. He also noted a single royalty pickup of less than $500,000 in Q4, which boosted the 50% year-over-year increase, but growth was still strong without it.

Kevin Garrigan asked about the increasing customer adoption of Arteris's full suite of solutions, exemplified by NXP, and how this trend impacts licensing Average Selling Prices (ASPs) relative to the $1 million target. He also inquired about the drivers behind the strong royalty growth, specifically if it was due to a particular end market or customer diversification.

Answer

CEO Charlie Janac confirmed that customers deploying the full suite, especially with the Cycuity acquisition, drive ASPs significantly above $1 million, further boosted by chiplet projects. CFO Nick Hawkins attributed royalty strength to both customer diversification and broad market penetration, noting the growth in major royalty reporters across automotive, consumer, enterprise, and aerospace segments.

Kevin Garrigan inquired if AMD's decision was driven by a plan to disband its internal team or by performance limitations, and asked about Arteris's strategy to convert the 20+ customers evaluating FlexGen into sales.

Answer

CEO K. Charles Janac clarified that AMD is not disbanding its internal team but will use Arteris FlexGen for non-coherent applications alongside its own Infinity Fabric. He added that the numerous FlexGen evaluations are expected to result in sales starting in the second half of the year. CFO Nick Hawkins noted that the public validation from a major company like AMD will help accelerate other customer decisions.

Kevin Garrigan from Rosenblatt Securities questioned if Arteris is observing an acceleration in customer decision timelines from initial conversation to a signed agreement, and asked about the potential for the new Intel Foundry Alliance partnership to attract new customers.

Answer

CEO Karel Janac stated that while customers are trying to accelerate their own design cycles, the company's licensing activity shows steady growth rather than faster deal closures. He noted the outsourcing trend is driven by the complexity of next-generation designs. CFO Nicholas Hawkins added that economic pressures and a scarcity of qualified hardware engineers are key factors pushing customers toward commercial IP. Regarding the Intel partnership, Mr. Janac expressed optimism that it will result in additional business over the next 12 months, citing Intel's increased openness to commercial IP solutions.

Kevin Garrigan from Rosenblatt Securities asked about the trend in average selling prices (ASPs) per project, the company's progress toward its $1 million ASP target for 2026, and whether the design-to-production timeline for the new microcontroller (MCU) business differs from the company's typical average.

Answer

Executive Karel Janac confirmed that Arteris is on track for the $1 million ASP target on complex SoCs, noting they are already securing deals at that level. However, he clarified that the recent expansion into the microcontroller market will involve lower ASPs, which should be considered separately. Regarding MCUs, Janac explained the design dynamic is different; while major vendors start new generations every three years, they may then design 6-15 different MCUs in a very short timeframe within that generation.

Kevin Garrigan of WestPark Capital asked if design activity in the Chinese EV market is increasing faster than elsewhere and if Chinese customers are accelerating development timelines. He also inquired about the average selling prices (ASPs) for licensing deals in the microcontroller market and sought customer feedback on the new NoC tiling product.

Answer

CEO Karel Janac responded that design activity is robust globally, not just in China, as companies are designing chips for future models like the 2030 automotive year. He confirmed that microcontroller ASPs are lower, but this is offset by very high royalty volumes and numerous designs, with a strategy to capture entire product generations. Regarding NoC tiling, Mr. Janac noted it's a new product developed at the request of AI customers, with significant interest, but revenue impact is expected next year. CFO Nicholas Hawkins added that Arteris has prior, successful experience in the MCU space with substantial royalty streams.

Kevin Garrigan asked if Lattice is experiencing increased competitive pressure or pricing aggression in data center companion chips as it continues to gain market share. He also asked CEO Ford Tamer what keeps him up at night and what could potentially derail Lattice's growth story in 2026.

Answer

CEO Ford Tamer stated that Lattice's strategy is customer-first, focusing on differentiation through low power, small size, low cost, fast boot time, and longevity in small and mid-range FPGAs, which he believes will continue to drive market share growth. He identified the biggest concern as internal execution on ambitious plans and ensuring adequate supply for customers, emphasizing the 'three S's': solutions, support, and supply, especially in a tight supply environment.

Kevin Garrigan asked about increased competitive pressure or pricing aggression in companion chips in the data center, and what keeps the CEO up at night regarding potential derailment of the Lattice story.

Answer

Ford Tamer (CEO, Lattice Semiconductor) emphasized a customer-first strategy, focusing on low power, small size, low cost, fast boot time, and longevity to differentiate Lattice in the small and mid-range FPGA market, leading to continued market share growth. He stated that the primary concern is internal execution on ambitious plans, ensuring supply for customers, and maintaining strong partnerships (solutions, support, supply), especially given current supply tightness.

Kevin Garrigan of Rosenblatt Securities asked for a breakdown of near-term versus long-term applications in the edge AI market. He also inquired about the strategy behind the company's recent record design wins.

Answer

CEO Ford Tamer detailed the AI revenue mix, projecting it to reach the mid-20s as a percentage of revenue in 2026, with a split between companionship roles (55%) and on-chip AI (45%). He attributed the design win success to a 'single-minded focus on small and mid-range FPGAs,' positioning Lattice as a non-competing 'companionship' solution for 'Far Edge AI' applications.

Kevin Garrigan asked if the growth in the Industrial segment was broad-based or concentrated in certain pockets, and inquired about the size of the AI opportunity for Lattice within that market.

Answer

CEO Fouad Tamer and CFO Lorenzo A. Flores indicated that while the Industrial segment is broad, areas like aerospace, defense, and medical are growing faster. Tamer explained that in Industrial applications, Lattice FPGAs can play a larger AI role—sometimes as the main processing element for tiny AI models or for preprocessing—compared to their typical companion-chip function in data centers.

Kevin Garrigan asked if the growth observed in the Industrial segment was broad-based or concentrated in specific pockets. He also inquired about the size of the AI opportunity for Lattice within the industrial market.

Answer

CEO Fouad Tamer indicated that while the Industrial segment is broad, they are seeing faster growth in areas like aerospace, defense, and medical. He explained that in Industrial AI, Lattice FPGAs can play a more significant role as the main processing element for tiny AI models, unlike their supporting function in data centers. This is due to the performance, low latency, and deterministic attributes of FPGAs in smaller IoT and monitoring applications.

Kevin Garrigan from Jefferies asked if the recently signed consumer electronic device agreement with a significant social media company is expected to be a high-volume agreement for InterDigital. He also inquired about the biggest threats InterDigital perceives in its ongoing litigation against Disney and Amazon, specifically concerning the possibility of these companies not signing agreements or court cases not favoring InterDigital.

Answer

Liren Chen, President and CEO, clarified that the CE device agreement is a device license covering radio assets and Wi-Fi, and it is not expected to be a high-volume agreement, nor does it apply to the service side. Regarding litigation, he stated that InterDigital prefers bilateral negotiations but initiated enforcement after lengthy discussions, emphasizing their careful multi-jurisdictional strategy with high-quality, battle-tested patents, seeking fair compensation and injunctions.

Kevin Garrigan asked for more details on the consumer electronic device agreement with a social media company, specifically whether it is expected to be a high-volume agreement. He also questioned the biggest threats InterDigital faces on the litigation front, particularly concerning Disney and Amazon's budgets and the potential for court cases not to favor InterDigital.

Answer

Liren Chen (President and CEO, InterDigital) clarified that the CE device agreement with the social media company licenses radio assets and Wi-Fi, but it is not a high-volume agreement and does not apply to the service side. Regarding litigation threats, he emphasized InterDigital's preference for bilateral negotiations but stated that enforcement was necessary after lengthy talks. He highlighted the multi-jurisdictional nature of their campaigns, asserting over a dozen high-quality, battle-tested patents in each case, and noted that the strategy does not rely on winning every single assertion but on securing fair compensation to fund R&D, seeking both past damages and injunctions.

Kevin Garrigan asked about Rambus's RCD market share for 2025 and the timeline and opportunity for MRDIMM with the Intel Diamond Rapids and AMD Venice platforms.

Answer

Luc Seraphin (CEO, Rambus) stated that Rambus believes its DDR5 RCD market share finished in the mid-40% range for 2025, up from the early 40s in 2024. He confirmed that the MRDIMM timeline and opportunity remain unchanged, with an expected ramp towards the very end of the year, dependent on platform rollouts.

Kevin Garrigan (Jefferies) asked about Rambus's RCD market share for DDR5 in 2025 and the timeline and opportunity for MRDIMM with Intel Diamond Rapids and AMD Venice platforms.

Answer

CEO Luc Seraphin stated that Rambus finished 2025 with mid-40% market share for DDR5 RCDs, up from early 40s in 2024, and expects to grow faster than the market in 2026. He also confirmed that the MRDIMM timeline hasn't changed, with ramp expected towards the very end of 2026, dependent on platform rollouts.

Kevin Garrigan followed up on the MRDIMM opportunity, asking what more Rambus can do to capture market share or if it's primarily in the customer's hands. He also inquired about the traction with PCIe7 and secured IP within the silicon IP business.

Answer

Luc Seraphin (CEO) stated that MRDIMM share capture depends on customers, Rambus, and platform deployers (Intel/AMD). He emphasized Rambus's complete chipset for MRDIMM is critical for interoperability, especially with doubled capacity and bandwidth, and that Rambus's long-term investment in signal and power integrity, combined with a complete chipset, aids in development and testing. Regarding silicon IP, Luc Seraphin (CEO) broadly split the business: security accounts for about 50% (widespread applications, faster cycle) and controllers (memory/PCIe) for the other 50%. He noted PCIe and HBM involve working with fewer, larger customers on bleeding-edge solutions (HBM4, PCIe7) for data center/AI, characterized by higher ASPs and longer development cycles.

Kevin Garrigan inquired about the statement of development work agreement with the top-five OEM, asking how its process and timeline differ from a typical RFI/RFQ cycle. He also asked whether the acceleration of robotaxi deployments has any beneficial impact or accelerates timelines for Level 3 passenger vehicle programs.

Answer

CEO Omer David Keilaf clarified that the development work began ahead of a final contract because the OEM's RFQ process took longer than anticipated, and the 2027 SOP date is fixed, a situation similar to their past experience with Volkswagen. Regarding market dynamics, Keilaf stated that while the entire autonomous driving sector is experiencing a resurgence, he does not see a direct correlation where Level 4 robotaxi progress is accelerating Level 3 timelines, as they are typically pursued by different types of companies (commercial vs. traditional OEMs).

Kevin Garrigan from Rosenblatt Securities asked about the remaining development milestones for the VW ID. Buzz program before its start of production (SOP) and requested an update on the BMW China platform's competitiveness.

Answer

CEO Omer Keilaf reported that for the VW program, Innoviz is approaching the C sample phase, having already achieved the critical design and point cloud freeze milestones. The final step is completing production validation. Regarding BMW China, Keilaf emphasized the superior quality and reliability of Innoviz's LiDAR for Level 3 systems, which he believes provides a substantially better and safer user experience compared to competitors.

Kevin Garrigan of Rosenblatt Securities asked about the competitive landscape for the FIFA World Cup contract, specifically whether Ouster competed against camera-based solutions or other LiDAR suppliers, and also inquired about the company's distributor strategy.

Answer

CEO Angus Pacala attributed the FIFA win to the superior accuracy of the BlueCity solution, which is powered by advanced AI algorithms trained on a massive proprietary dataset. He explained that Ouster's distribution strategy is tailored by vertical, utilizing a distributor-integrator model for smart infrastructure and security, while maintaining direct sales relationships with large enterprise customers in the industrial and automotive sectors.

Kevin Garrigan from Rosenblatt Securities Inc. asked about the pace of LiDAR adoption and the impact of geopolitical tariffs. He questioned whether adoption is accelerating faster than management previously expected and inquired about any changes in customer behavior or strategy due to tariffs.

Answer

CEO Angus Pacala noted that while early industry expectations were too high, Ouster is now tracking to its long-term growth model, with advancements in AI and edge computing providing positive tailwinds. Interim CFO Chen Geng stated that the company has not seen significant business disruption from tariffs, as the value proposition of its solutions remains strong, and they are confident in their ability to execute their business plan.

Kevin Garrigan of WestPark Capital asked about the potential for additional cost savings, the current outlook for the automotive market, and the strength of demand from the advanced packaging space, particularly in relation to AI.

Answer

Executive Robert Daigle explained that further cost reductions are being pursued through supply chain management and footprint optimization. He confirmed that the automotive market remains soft, which is reflected in the company's guidance, and noted the strategic pivot towards driving organic growth. Daigle also highlighted that demand from advanced packaging has been strengthening for several quarters, driven by OSATs supporting AI data centers, and he anticipates that AI moving to the edge will further boost equipment volumes.

Asked about the importance of the new design win for future business, the customer demand for the StudioViz simulation platform, and the company's view on the recent NHTSA ruling on automatic emergency braking.

Answer

The new win is crucial as it leverages lessons from the prior GM program, making the company more competitive for future RFPs. The StudioViz platform was developed proactively based on past experience to streamline development for all customers, rather than waiting for them to ask. The NHTSA ruling is seen as a major tailwind for the LiDAR industry, validating the need for advanced safety technology.

The analyst sought clarification on whether recent RFQs were for passenger vehicles and inquired about the impact of Koito's indication of interest on discussions with OEMs.

Answer

The company confirmed the RFQs are for passenger vehicles. They also stated that Koito's proposal is viewed as a positive by OEMs, as it addresses concerns about the long-term viability of LiDAR companies and strengthens the Cepton-Koito partnership.