Enterprise Data Growth
Q: Is Enterprise Data still a key growth driver in Q3?
A: Yes, Enterprise Data is expected to grow, though the rate of growth is slowing after significant increases in the prior four quarters. The company also anticipates continued growth in Communications, Storage, and Computing. VR13.5 is starting to generate significant revenues, serving as a test case during shortages. With numerous design wins, VR14 hasn't ramped yet but will make MPS a significant player in the market.

Vertical Power Delivery
Q: What are your efforts in vertical power delivery?
A: MPS holds a leading position in vertical power delivery, offering solutions that include modules placed directly under the CPU for highest efficiency. They supply all three solutions: chip, modules, and liquid-cooled options. The market is huge and growing, and few semiconductor companies have similar capabilities.

Non-Enterprise Segment Recovery
Q: Are you seeing recovery in Consumer, Communications, and Auto segments?
A: Bookings have improved over the last few quarters and have been fairly broad across end markets. The Q3 outlook shows continued growth in Communications, Storage, and Computing, with incremental improvements in other groups. New design requirements with higher power, especially in Communications related to AI and AR, are emerging and will impact revenues in 2 or 3 years.

Solution Selling Transition
Q: Can you elaborate on your shift towards solution selling?
A: MPS is transforming from a silicon-only company to a silicon-based solution provider. Solutions now represent 20% to 25% of total revenue, excluding AI, generating close to $200 million and growing faster than the company's overall rate. This includes selling modules and plug-and-play solutions across all markets, adding more value than selling chips alone.

Automotive Market Outlook
Q: How realistic is a flat Auto market this year given your content gains?
A: The near-term outlook for Automotive remains fuzzy. In Q2, an expected uplift did not occur. Positioning within the next 2 to 3 quarters is hard to predict, but the long-term positioning is improving with additional design wins. MPS has design wins with many car makers, especially in EVs.

GaN and Silicon Carbide in Data Centers
Q: What are you doing on the power supply side of data centers with GaN and silicon carbide?
A: Since 2016, MPS has developed its own silicon carbide solutions, designing 3-kilowatt, 6-kilowatt, and 12-kilowatt power supplies. These are being evaluated in data centers, but current revenues are small. MPS anticipates significant future revenues due to providing the highest efficiency and smallest size in the market.

Seasonality Changes
Q: How should we view December seasonality going forward?
A: With new business dynamics and inventory fluctuations, it's difficult to forecast December seasonality. Traditional models may no longer be appropriate, and the company notes that lead times remain very short.

Share Gains During Downturns
Q: Where are you seeing meaningful share gains in this downturn?
A: Beyond AI and data centers, MPS is gaining share in Automotive, Communications (especially wireless and 5G), and Industrial markets. These are areas with greenfield opportunities expected to materialize in the next 4 quarters.

Huawei Exposure
Q: Do you have any exposure to Huawei, and have any licenses been revoked?
A: MPS does not have any licensing or contractual arrangements with Huawei. Business is conducted on a purchase order basis, and there is no indication of a change in the relationship. MPS products are not subject to export limitations as far as they are aware.