Scott Wallace Searle

Scott Wallace Searle sought clarification on whether the custom chip customer is also working down inventory of legacy M700/M800 chips, contributing to Q1 pressure. He asked if the custom ASIC implies 100% share with these customers and how this will transition in 2026-2027, given more custom opportunities. He also asked if Impinj retains the IP for the custom chip and if Gen2X will be the primary driver of incremental market share gains.

Answer

Chris Diorio, CEO, clarified that the custom chip is in production, dedicated to the second-largest North American supply chain and logistics customer, and will maintain Impinj's already high share at that account. He confirmed Impinj retains the IP for this specific instance, but the focus is on supporting the lighthouse customer. Cary Baker, CFO, explained that the Q4 logistics-related inventory build masked retail weakness, as M800's fungibility allowed partners to lean in ahead of award wins. He expects better visibility with the custom IC, matching shipments to consumption. Chris Diorio affirmed that Gen2X will be the significant driver of market share gains by providing a toolbox for enterprise customers to solve unmet needs, improving readability, performance, and protection.

Scott Wallace Searle sought clarification on whether the custom chip customer is working down M700/M800 inventory due to logistics softness. He also asked if the custom ASIC implies 100% share with these customers, if more custom opportunities are in the pipeline, and if Impinj retains the IP for the custom chip. Finally, he questioned if Gen2X will be the primary driver of incremental market share.

Answer

Chris Diorio, Impinj's CEO, clarified that the custom chip is in production for the second-largest North American supply chain and logistics customer, where Impinj already holds high share and expects to maintain it. He confirmed Impinj retains the IP for this specific custom chip. Cary Baker, Impinj's CFO, explained the Q1 inventory build was due to partners over-ordering fungible M800s ahead of label reallocation, masking retail weakness, but expects better visibility with the new custom IC. Chris Diorio affirmed that Gen2X will be a significant driver of market share gains by offering a comprehensive toolbox for enterprise solutions, enhancing readability, performance, and protection.