Navitas Semiconductor Corporation announced unaudited financial results for the fourth quarter and full year ended December 31, 2023.

“I am pleased to announce a record fourth quarter that caps off a year of more than doubling revenue for Navitas as we demonstrated strength across multiple markets,” said Gene Sheridan, CEO and co-founder. “While we are not immune to first half 2024 market headwinds, we see revenue growth accelerating in the second half based on our strong customer pipeline including major new wins in AI data centers, home appliances, solar inverters and a major satellite internet roll-out – all of which positions Navitas for strong growth in 2024 and beyond.”

4Q23 Financial Highlights

  • Revenue: Total revenue grew to $26.1 million in the fourth quarter of 2023, a 111% increase from $12.3 million in the fourth quarter of 2022 and a 19% increase from $22.0 million in the third quarter of 2023.
  • Gross Margin: GAAP gross margin for the fourth quarter of 2023 was 42.2%, compared to 40.6% in the fourth quarter of 2022 and 32.3% for the third quarter of 2023. Non-GAAP gross margin for the fourth quarter of 2023 was 42.2% compared to 40.6% for the fourth quarter of 2022 and 42.1% for the third quarter of 2023.
  • Loss from Operations: GAAP loss from operations for the quarter was $26.8 million, compared to a loss of $31.2 million for the fourth quarter of 2022 and a loss of $28.6 million for the third quarter of 2023. On a non-GAAP basis, loss from operations for the quarter was $9.7 million compared to a loss of $12.4 million for the fourth quarter of 2022 and a loss of $8.7 million for the third quarter of 2023.
  • Cash: Cash and cash equivalents were $152.8 million as of December 31, 2023.

FY 2023 Financial Highlights

  • Revenue: Total revenue grew to $79.5 million in 2023, a 109% increase from $37.9 million in 2022.
  • Gross Margin: GAAP gross margin for 2023 was 39.1%, compared to 31.5% in 2022. Non-GAAP gross margin for 2023 was 41.8% compared to 40.8% for 2022.
  • Loss from Operations: GAAP loss from operations for the year was $118.1 million, compared to a loss of $123.6 million for 2022. On a non-GAAP basis, loss from operations for the year was $40.3 million compared to a loss of $41.2 million for 2022.

Market, Customer and Technology Highlights:

  • Electric Vehicle: Introduction of new GaNSafe technology plus new Gen-3 Fast silicon carbide is fueling demand for EV on-board and roadside chargers. SiC-based on-board chargers are in or moving to production this year with customers including top EV brands such as Zeekr, Volvo and Smart. Announced joint design center with Shinry – one of the top EV on-board charger suppliers for Hyundai, BYD, Honda, Geely and others.
  • Solar/Energy Storage: Displacement of silicon with GaNSafe and Gen 3 Fast SiC technologies continued with significant developments in 3 of the top 5 US solar OEMs, and the majority of the world’s top 10 solar manufacturers. SiC is shipping into this market today and GaN adoption is expected to ramp in late 2024.
  • Home Appliance / Industrial: Major new tier 1 home appliance win will drive additional revenues in late ‘24 – Navitas now engaged with 7 of the world’s top 10 home appliance OEMs. Customer designs are in process at 2 of the top 3 global leaders in industrial pumps and a top 3 global leader in heat pumps.
  • Datacenter: New GaNSafe and Gen 3 Fast SiC and Navitas’ dedicated design center is now achieving an unprecedented 4.5 kW, more than double the power density of legacy silicon solutions, to deliver accelerating power demands of AI data centers. Over 20 customer designs are expected to ramp production in 2024.
  • Mobile: Navitas now powers 5 newly released OPPO models and 8 newly released Xiaomi models with chargers ranging from 67 W to 120 W. Additional Samsung models now include powering the new Galaxy S24.
  • Other New Markets: GaN ICs have been designed into the ground-based terminal for a major internet satellite implementation to ramp in 2H24.

Business Outlook

First quarter 2024 net revenues are expected to be $23 million plus or minus $500 thousand. Gross margin for the first quarter is expected to be 41% plus or minus 50 basis points and operating expenses, excluding stock-based compensation and amortization of intangible assets, are expected to be approximately $21.5 million in the first quarter of 2024. Weighted-average basic share count is expected to be approximately 180 million shares for the first quarter of 2024.

Original – Navitas Semiconductor