|I wonder if design in = design win? You can be designed in but not necessarily win all or any of that business, depending on your competition (new pricing, qualification issues with their part, delivery constraints etc.). Also, is that $1B over the life of the projects or from one year of revenue......lots of ????|
Yeah, I don't understand why they don't use the word "design win" instead of "design in".
The revenue number is definitely uncertain. These are projections from the customer and they cover the life of the project. Some might ramp in a year but auto revs are 3-4 years out and that obviously means that the delta of any projections is large. The larger customers also might have an incentive to increase their projections so Cree will increase capacity which would serve them well.
All of that being said, they are winning business and the step up in design in activity bodes well for Cree's ability to transition into a vertically integrated component supplier.
Personally, I heard what I wanted from the call and the fact that the market is going to sell of anyway is a good thing. The valuation has sucked on Cree for a while but we might get prices that don't require substantial upside to the current '24 projections.