These and other risk factors are discussed under Part 1, Item 1A “Risk Factors” section in the Company’s annual reports on Form 10-K, and other SEC reports. If any of the risks described above, and discussed in more detail in our SEC reports, materialize or if our assumptions underlying forward-looking statements prove to be incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that Navitas is not aware of or that Navitas currently believes are immaterial that could also cause actual results to differ materially from those contained in forward-looking statements. In addition, forward-looking statements reflect Navitas’ expectations, plans or forecasts of future events and views as of the date of this press release. Navitas anticipates that subsequent events and developments will cause Navitas’ assessments to change. However, while Navitas may elect to update these forward-looking statements at some point in the future, Navitas specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing Navitas’ assessments as of any date subsequent to the date of this press release.
About Navitas
Navitas Semiconductor (Nasdaq: NVTS) is the only pure-play, next-generation power-semiconductor company, founded in 2014. GaNFast™ power ICs integrate gallium nitride (GaN) power and drive, with control, sensing, and protection to enable faster charging, higher power density, and greater energy savings. Complementary GeneSiC™ power devices are optimized high-power, high-voltage, and high-reliability silicon carbide (SiC) solutions. Focus markets include EV, solar, energy storage, home appliance / industrial, data center, mobile and consumer. Over 250 Navitas patents are issued or pending. Navitas was the world’s first semiconductor company to be CarbonNeutral®-certified.
Navitas Semiconductor, GaNFast, GaNSense, GeneSiC and the Navitas logo are trademarks or registered trademarks of Navitas Semiconductor Limited and affiliates. All other brands, product names and marks are or may be trademarks or registered trademarks used to identify products or services of their respective owners.
Contact Information
Stephen Oliver, VP Corporate Marketing & Investor Relations
ir@navitassemi.com
PR image:
| NAVITAS SEMICONDUCTOR CORPORATION | |||||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS (GAAP) - UNAUDITED | |||||||||||||||
| (dollars in thousands, except per-share amounts) | |||||||||||||||
| Three Months Ended | Year Ended | ||||||||||||||
| December 31, | December 31, | ||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||
| NET REVENUES | $ | 26,058 | $ | 12,349 | $ | 79,456 | $ | 37,943 | |||||||
| COST OF REVENUES (exclusive of amortization of intangibles included below) | 15,069 | 7,341 | 48,392 | 25,996 | |||||||||||
| GROSS PROFIT | 10,989 | 5,008 | 31,064 | 11,947 | |||||||||||
| OPERATING EXPENSES: | |||||||||||||||
| Research and development | 18,087 | 15,945 | 68,825 | 50,318 | |||||||||||
| Selling, general and administrative | 14,923 | 15,763 | 61,551 | 78,353 | |||||||||||
| Amortization of intangible assets | 4,774 | 4,499 | 18,820 | 6,913 | |||||||||||
| Total operating expenses | 37,784 | 36,207 | 149,196 | 135,584 | |||||||||||
| LOSS FROM OPERATIONS | (26,795 | ) | (31,199 | ) | (118,132 | ) | (123,637 | ) | |||||||
| OTHER INCOME (EXPENSE), net: | |||||||||||||||
| Interest income, net | 1,964 | 721 | 5,368 | 1,387 | |||||||||||
| Gain from change in fair value of warrants | — | — | — | 51,763 | |||||||||||
| Gain (loss) from change in fair value of earnout liabilities | (8,285 | ) | 9,547 | (33,788 | ) | 121,709 | |||||||||
| Other income (expense) | 33 | 67 | 84 | (1,147 | ) | ||||||||||
| Total other income (expense), net | (6,288 | ) | 10,335 | (28,336 | ) | 173,712 | |||||||||
| INCOME (LOSS) BEFORE INCOME TAXES | (33,083 | ) | (20,864 | ) | (146,468 | ) | 50,075 | ||||||||
| INCOME TAX (BENEFIT) PROVISION | (505 | ) | (12,950 | ) | (517 | ) | (22,812 | ) | |||||||
| NET INCOME (LOSS) | (32,578 | ) | (7,914 | ) | (145,951 | ) | 72,887 | ||||||||
| LESS: Net income (loss) attributable to noncontrolling interest | — | (789 | ) | (518 | ) | (1,026 | ) | ||||||||
| NET INCOME (LOSS) ATTRIBUTABLE TO CONTROLLING INTEREST | $ | (32,578 | ) | $ | (7,125 | ) | $ | (145,433 | ) | $ | 73,913 | ||||
| NET INCOME (LOSS) PER SHARE: | |||||||||||||||
| Basic | $ | (0.18 | ) | $ | (0.05 | ) | $ | (0.86 | ) | $ | 0.55 | ||||
| Diluted | $ | (0.18 | ) | $ | (0.05 | ) | $ | (0.86 | ) | $ | 0.51 | ||||
| SHARES USED IN PER-SHARE CALCULATION: | |||||||||||||||
| Basic | 178,780 | 152,416 | 168,927 | 133,668 | |||||||||||
| Diluted | 178,780 | 152,416 | 168,927 | 145,743 | |||||||||||
| NAVITAS SEMICONDUCTOR CORPORATION | |||||||||||||||
| RECONCILIATION OF GAAP RESULTS TO NON-GAAP FINANCIAL MEASURES | |||||||||||||||
| (dollars in thousands, except per-share amounts) | |||||||||||||||
| Three Months Ended | Year Ended | ||||||||||||||
| December 31, | December 31, | ||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||
| RECONCILIATION OF GROSS PROFIT MARGIN | |||||||||||||||
| GAAP gross profit | $ | 10,989 | $ | 5,008 | $ | 31,064 | $ | 11,947 | |||||||
| GAAP gross profit margin | 42.2 | % | 40.6 | % | 39.1 | % | 31.5 | % | |||||||
| Inventory write-off related to discontinued products | — | — | 2,024 | — | |||||||||||
| Other operational charges | — | — | 122 | 172 | |||||||||||
| Reserves for write-down of inventory | — | — | — | 2,833 | |||||||||||
| Inventory write-off related to purchase accounting step-up | — | — | — | 539 | |||||||||||
| Non-GAAP gross profit | $ | 10,989 | $ | 5,008 | $ | 33,210 | $ | 15,491 | |||||||
| Non-GAAP gross profit margin | 42.2 | % | 40.6 | % | 41.8 | % | 40.8 | % | |||||||
| RECONCILIATION OF OPERATING EXPENSES | |||||||||||||||
| GAAP Research and development | $ | 18,087 | $ | 15,945 | $ | 68,825 | $ | 50,318 | |||||||
| Stock-based compensation expenses | (6,669 | ) | (4,096 | ) | (26,806 | ) | (19,853 | ) | |||||||
| Non-GAAP Research and development | 11,418 | 11,849 | 42,019 | 30,465 | |||||||||||
| GAAP Selling, general and administrative | 14,923 | 15,763 | 61,551 | 78,353 | |||||||||||
| Stock-based compensation expenses | (5,549 | ) | (7,056 | ) | (27,222 | ) | (43,435 | ) | |||||||
| Termination of distributor | — | — | (483 | ) | — | ||||||||||
| Payroll taxes on vesting of employee stock-based compensation | 35 | (438 | ) | (663 | ) | (592 | ) | ||||||||
| Acquisition-related expenses | (2 | ) | (2,640 | ) | (1,487 | ) | (8,082 | ) | |||||||
| Other | (105 | ) | (22 | ) | (210 | ) | (22 | ) | |||||||
| Non-GAAP Selling, general and administrative | 9,302 | 5,607 | 31,486 | 26,222 | |||||||||||
| Total Non-GAAP operating expenses | $ | 20,720 | $ | 17,456 | $ | 73,505 | $ | 56,687 | |||||||
| RECONCILIATION OF LOSS FROM OPERATIONS | |||||||||||||||
| GAAP loss from operations | $ | (26,795 | ) | $ | (31,199 | ) | $ | (118,132 | ) | $ | (123,637 | ) | |||
| GAAP operating margin | (102.8 | )% | (252.6 | )% | (148.7 | )% | (325.8 | )% | |||||||
| Add: Stock-based compensation expenses included in: | |||||||||||||||
| Research and development | 6,669 | 4,096 | 26,806 | 19,853 | |||||||||||
| Selling, general and administrative | 5,549 | 7,056 | 27,222 | 43,435 | |||||||||||
| Total | 12,218 | 11,152 | 54,028 | 63,288 | |||||||||||
| Amortization of acquisition-related intangible assets | 4,774 | 4,499 | 18,820 | 6,913 | |||||||||||
| Inventory write-off related to discontinued products | — | — | 2,024 | — | |||||||||||
| Termination of distributor | — | — | 483 | — | |||||||||||
| Payroll taxes on vesting of employee stock-based compensation | (35 | ) | 438 | 663 | 592 | ||||||||||
| Other operational charges | — | — | 122 | 172 | |||||||||||
| Acquisition-related expenses | 2 | 2,640 | 1,487 | 8,082 | |||||||||||
| Reserves for write-down of inventory | — | — | — | 2,833 | |||||||||||
| Inventory write-off related to purchase accounting step-up | — | — | — | 539 | |||||||||||
| Other | 105 | 22 | 210 | 22 | |||||||||||
| Non-GAAP loss from operations | $ | (9,731 | ) | $ | (12,448 | ) | $ | (40,295 | ) | $ | (41,196 | ) | |||
| Non-GAAP operating margin | (37.3 | )% | (100.8 | )% | (50.7 | )% | (108.6 | )% | |||||||
| RECONCILIATION OF NET LOSS PER SHARE | |||||||||||||||
| GAAP net income (loss) attributable to controlling interest | $ | (32,578 | ) | $ | (7,125 | ) | $ | (145,433 | ) | $ | 73,913 | ||||
| Adjustments to GAAP net income (loss) | |||||||||||||||
| Loss (Gain) from change in fair value of earnout liabilities | 8,285 | (9,547 | ) | 33,788 | (121,709 | ) | |||||||||
| Total stock-based compensation | 12,218 | 11,152 | 54,028 | 63,288 | |||||||||||
| Amortization of acquisition-related intangible assets | 4,774 | 4,499 | 18,820 | 6,913 | |||||||||||
| Inventory write-off related to discontinued products | — | — | 2,024 | — | |||||||||||
| Termination of distributor | — | — | 483 | — | |||||||||||
| Payroll taxes on vesting of employee stock-based compensation | (35 | ) | 438 | 663 | 592 | ||||||||||
| Other operational charges | — | — | 122 | 172 | |||||||||||
| Acquisition-related expenses | 2 | 2,640 | 1,487 | 8,082 | |||||||||||
| Reserves for write-down of inventory | — | — | — | 2,833 | |||||||||||
| Inventory write-off related to purchase accounting step-up | — | — | — | 539 | |||||||||||
| Gain from change in fair value of warrants | — | — | — | (51,763 | ) | ||||||||||
| Release of tax valuation allowance | — | (10,754 | ) | — | (20,669 | ) | |||||||||
| Other expense | 72 | (45 | ) | 126 | 1,169 | ||||||||||
| Non-GAAP net loss | $ | (7,262 | ) | $ | (8,742 | ) | $ | (33,892 | ) | $ | (36,640 | ) | |||
| Average shares outstanding for calculation of non-GAAP net loss per share (basic and diluted) | 178,780 | 152,416 | 168,927 | 133,668 | |||||||||||
| Non-GAAP net loss per share (basic and diluted) | $ | (0.04 | ) | $ | (0.06 | ) | $ | (0.20 | ) | $ | (0.27 | ) | |||
| NAVITAS SEMICONDUCTOR CORPORATION | |||||||||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||||||||
| (dollars in thousands) | |||||||||||||||
| (Unaudited) | |||||||||||||||
| December 31, 2023 | December 31, 2022 | ||||||||||||||
| ASSETS | |||||||||||||||
| CURRENT ASSETS: | |||||||||||||||
| Cash and cash equivalents | $ | 152,839 | $ | 110,337 | |||||||||||
| Accounts receivable, net | 25,858 | 9,127 | |||||||||||||
| Inventories | 23,166 | 19,061 | |||||||||||||
| Prepaid expenses and other current assets | 6,619 | 3,623 | |||||||||||||
| Total current assets | 208,482 | 142,148 | |||||||||||||
| PROPERTY AND EQUIPMENT, net | 9,154 | 6,532 | |||||||||||||
| OPERATING LEASE RIGHT OF USE ASSETS | 8,268 | 6,381 | |||||||||||||
| INTANGIBLE ASSETS, net | 91,099 | 105,620 | |||||||||||||
| GOODWILL | 163,215 | 161,527 | |||||||||||||
| OTHER ASSETS | 5,328 | 3,054 | |||||||||||||
| Total assets | $ | 485,546 | $ | 425,262 | |||||||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||||||
| CURRENT LIABILITIES: | |||||||||||||||
| Accounts payable and other accrued expenses | $ | 26,637 | $ | 14,653 | |||||||||||
| Accrued compensation expenses | 10,902 | 3,907 | |||||||||||||
| Current portion of operating lease liabilities | 1,892 | 1,305 | |||||||||||||
| Deferred revenue | 10,953 | 486 | |||||||||||||
| Total current liabilities | 50,384 | 20,351 | |||||||||||||
| LONG-TERM LIABILITIES: | |||||||||||||||
| OPERATING LEASE LIABILITIES NONCURRENT | 6,653 | 5,263 | |||||||||||||
| EARNOUT LIABILITY | 46,852 | 13,064 | |||||||||||||
| DEFERRED TAX LIABILITIES | 1,040 | 1,824 | |||||||||||||
| Total liabilities | 104,929 | 40,502 | |||||||||||||
| STOCKHOLDERS’ EQUITY: | |||||||||||||||
| Total stockholders’ equity of Navitas Semiconductor Corporation | 380,617 | 381,132 | |||||||||||||
| Noncontrolling interest | — | 3,628 | |||||||||||||
| Total equity | 380,617 | 384,760 | |||||||||||||
| Total liabilities stockholders’ equity | $ | 485,546 | $ | 425,262 | |||||||||||
