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• Leadership Transition • New CEO Che Lee joined the company one month prior to the call, and the board confirmed it conducted an extensive search, selecting Lee for his deep power semiconductor experience, proven track record of business building, and long-term value creation vision • The company is in the process of transitioning to a pure-play power semiconductor business, and Lee will build on existing progress to accelerate the product strategy and strengthen competitive positioning

• Strategic Transformation and Product Focus • Management's core long-term goal is to transition the company from a market follower to a differentiated innovation leader, moving away from competing on price in the increasingly commoditized legacy power semiconductor market • The company will reallocate resources to differentiated, application-specific products that deliver higher customer value and stronger long-term profitability, rather than pursuing size across all served markets • The company remains on track to launch 55 new generation products in 2026, and early traction from new higher-margin products is an encouraging sign the strategy is gaining traction

• Strategic Partnership • The company recently announced a strategic partnership with Navitas Semiconductor, aligned with its growth pillars of technology expansion and strategic collaboration • Under the agreement, MagnetShip licenses Navitas' Gen 4 and Gen 5 silicon carbide technology covering 1200V, 2300V, 3300V and higher voltage applications, and gains access to Navitas' established silicon carbide supply chain ecosystem • The partnership enables a capital-efficient path to enter the high-voltage and ultra-high-voltage silicon carbide market, expands the company's addressable market, and positions it to serve fast-growing high-value end markets including energy and grid infrastructure, industrial electrification, automotive, and renewable energy • The partnership combines Navitas' proven silicon carbide technology with MagnetShip's existing expertise in silicon IGBT and MOSFET technologies and advanced manufacturing capabilities for complementary innovation

• Quarterly Operational Drivers • Year-over-year revenue decline was driven by weaker demand and intensified pricing competition for legacy products • Sequential revenue decline was driven by seasonal softness in the communication segment, following a stronger-than-usual Q1 2026 that benefited from a one-time sales incentive program to reduce channel inventory • Gross margin improvement sequentially came from a one-quarter lag benefit of higher Q1 2026 factory utilization; the year-over-year gross margin decline stemmed from unfavorable product mix driven by average unit price erosion, particularly in the China market • Operating expense increases year-over-year and sequentially reflect continued investment in new generation product development

• For Q3 2026, consolidated revenue from continuing operations is guided to a range of $41.5 million to $45.5 million, which represents a 2.7% sequential decline and 5.2% year-over-year decline at the midpoint • Q3 2026 consolidated gross profit margin from continuing operations is guided to a range of 17% to 19%, flat with Q2 2026's guidance range • The company continues to maintain its prior target that new generation differentiated products will contribute at least 10% of total revenue by Q4 2026

Consolidated revenue from continuing operations (including Power Analog Solutions and Power IC businesses) was $44.7 million in Q2 2026, down 6.1% year-over-year vs. $47.6 million in Q2 2025 and down 3.3% sequentially vs. $46.2 million in Q1 2026. Consolidated gross profit margin for continuing operations was 19.3% in Q2 2026, down from 20.4% in Q2 2025 but up from 15.6% in Q1 2026. No separate absolute or percentage revenue contribution was provided for individual product segments in the call transcript.

• Pricing pressure and commoditization of legacy power semiconductor products remain ongoing, creating unfavorable product mix and average unit price erosion (particularly in the China market) that negatively impact revenue and profitability • Supply chain packaging constraints currently limit the company's ability to fully meet existing customer demand, which will negatively impact Q3 2026 results • Customer demand for certain applications is coming in lower than customers' earlier original plans, contributing to expected near-term revenue decline • The company's ongoing multi-year portfolio transformation to focus on differentiated new products will take time to deliver improved financial results, and near-term performance will remain pressured by legacy product headwinds • The company reported operating losses in Q2 2026, with a larger adjusted operating loss than prior periods driven by increased R&D investment for new product development

No investor questions were submitted during the Q&A portion of the call, so the session concluded early after the prepared remarks.