Earnings call transcript Q4 2022

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Thank you for holding. And welcome everyone to the Navitas Semiconductor Fourth Quarter 2022 Earnings Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question-and-answer session. [Operator Instructions]

you. Thank turn Investor to Relations. now Corporate Oliver, call and Marketing the will Stephen over VP, I Mr. Oliver, go please ahead.

Stephen Oliver

for fourth Good Shelton, and afternoon, results Sheridan, and you our Marketing Treasurer. President conference our of Navitas everyone. I’m today CEO Stephen CFO Investor Oliver, call. I’m Chairman, Relations. and by year President, and Ron full quarter Vice joined Corporate joining XXXX Semiconductor’s Gene Thank Co-Founder; and

this website of call, this be approximately call. the webcast recorded one will and conference our webcast approximately following replay the A XX for available hour will available on following be days

Additional our to business website. on posted of information related is Investor also section our Relations the

measures release the Investor Reconciliations on Our these most measures in non-GAAP are earnings and our our website financial section. GAAP the included quarter fourth also includes release in financial posted earnings measures. of with Relations comparable non-GAAP directly

Navitas, or future future this financial forward-looking statements In about of acquisitions. will make call, about the conference including events we performance

You expressed statements can forward-looking believe actual results statements. to materially such words that could expect identify uncertainties risks caution you that forward-looking expectations We to we by similar and or terms. or from cause these subject wish in to statements are our events or we differ like

earnings Important most our our to release. could Navitas and in Please differ the factors that refer Factors are business, XX-K results sections in can also that cause XX-Qs. from statements actual affect including factors described our Risk recent forward-looking to

except events change, actual occur as changed to forward-looking reflect update statements may Our results, by estimates law. obligation or other or statements other and required Navitas no may assumes forward-looking assumptions to that

now, to And Gene CEO. over Sheridan,

Gene Sheridan

which pleased QX everyone our welcome call on and across today. all results, I’m Steve with very in the metrics. guidance midpoint you, above key to our came Thank

and with total, five acquisitions. I'm the dramatic in markets with Such position expectations GaN to carbides, major us silicon with entered and especially organically complimentary in through in controllers. reiterate this Navitas edge our double and XXXX. and diversification leading a achieved solid growth XXXX compared to we happy drivers revenues both give position For year expansion to XXXX silicon a our with along confidence as

we month, and major joint unequal constituting Control, portfolio for in analog transaction of building optimized in venture, months. third our our our materials, of nine believe our the Silicon just is controllers This silicon-based steps silicon with GaN, we which industry. leading buyout isolators digital completed All wide band-gap up carbide in edge

power for next-generation electrified to without consumer EV distraction mobile This silicon growth power uniquely positioned segments. center pure-play to traditional leadership focus semiconductors Navitas in and any markets and appliance on and devices, dilution data next-generation industrial renewables by or and from systems

EV, expanded market approximately XXXX year industrial, billion total, our an was year opportunity XXXX. In in for company of and focused over new segments and these extraordinary our solar have by from XXXX XX% in by transitioning storage, and market to resulting set mobile expanded per that $XX XXX% in in from to mobile billion diversified appliance segments. We company. in rapidly $XX a with XXXX revenues XX% more transactions consumer these XX% a is into X% in and consumer XX% markets

of XX% in our a and markets, Europe, with America, With these diversified in regional diversified also footprint North in comes XX% sales XX% Asia. XX

cost. created silicon The to GaN venture silicon Microelectronics. for antelope and with joint transaction. a controller in a Halo JV efficiency, Semiconductor create explain frequency me Let further JV controllers high was carbide at application-specific started to XXXX even integration Elevation higher density enable optimized was about and our lower

of with controllers. silicon has designed again what into organic circuits. integrated analog Navitas capability integrating know, these you been we're As has Much a unique traditionally

the accelerate integration solution to optimal our new and complete value power this and between more silicon capability again, a initial auxiliary venture power our innovation the can adapters The consumer supplies. and mobile more to with we appliance partitioning and devices of and deliver and customers. controllers, With products chargers, pace target controllers this development from

Over in company, all solar including XX data test employees applications. technology introduced engineers. of industrial we week products and of last We the EV, will mainly design joining this our expect be and markets, closed transaction time, Elevation more center storage, target applications, new and our with composed

customer of ramping rebranded as products These appreciable Expo the The Electronic products at revenues. year will new plus first have generation generated and were family Navitas we generation already introduced lens March last in launch APEX show. a dozens be and will

each EV, In our carbide strong turn roadside silicon a technology established with ultra-fast markets. to Let's in progress we've of position chargers. our our target

level only XX minutes Our dramatically of up per and power to deliver XXX or miles of for concerns chargers in to to kilowatts XX charging, XX% DC three up fast range XX% at minute charge consumers. anxiety reducing

itself power and cooler leading technology bus helps and deliver XXXX to which efficiencies X,XXX higher differentiation are up requires industry Furthermore, in further to architectures Our charger to carbide volts, XXXX efficiency, silicon volt A reliability, level temperatures. silicon XXXX volts device to density, designs, voltage simplify moving we in-circuit in from cost. improve the carbide volt increase capability. three which a resides and bus

Navitas limited silicon range competition. for unequal carbide with brings performance A voltage

and being a adopted Our silicon America customers already carbide over roadside XX% Electrify U.S. by including and is dozen has in over charger EVgo. the integrated roadside chargers, been technology of

over by end annual growth to a total the charger $X is The rate. Just expect carbide one we by customers, growing these approach units potential billion XX% to for XXXX, a selling shipments million roadside of at QX. of estimated be

Act, partner this States. the year's XXXX announced of components and install Also supply with by matches will of infrastructure, a rate million well in to EV this X-FAB. chargers this a in July silicon the manufacturing which charger the includes roadside chain to administration reduction all a with the our to growth only This wafer domestically, carbide EV rollout EV $X.X by of charging be bipartisan accelerate which half manufactured significant goal the Inflation all XX% billion adds United least built upside chargers believe XXXX, Texas U.S. with based month, We infrastructure funded Biden at for the cost through our law market.

In or in and onboard AMG. the production for our roadside to customers is addition Mercedes BYD, technology with development include EV carbide Motors, chargers, major chargers silicon that General

volt announced, we and silicon of digital will onboard This previously utilizing co-develop design As with chargers XXXX. a isolators EV center system. XX% initially with in XXX XXX almost to battery volt address Geely, China-based a EV EV center next-generation carbide of have created player sales joint GaN, for rising worldwide combination a and Geely, both

carbide Geely design platforms we five on we projects our supporting system EV and GaN Center our are the existing our customer for With track developing first still in or based silicon XX center, utilize are XXXX. EVs GaN production onboard and to in system

capacity Growatt, to we in production XXXX. that installed string energy. have installed in by to is reflecting capacity in Chint, inverters, a AP the natural and the XXXX exceed today, Power BYD from of renewable in We In and or to power Electronics, XXXX of coal Xx world, X-FAB. expected over Systems, solar including Sungrow, turn commercial Let's increase development XX gas customers XXXX becoming largest

with also As to storage with solar and X,XXX this silicon volts, EV, are driving voltages energy XXXX capability. DC fast volt rising bus and our market of more carbide chargers, strength to

XX°C in expected achieved X.X announced, string temperatures unique [indiscernible] longer our kilowatt their cooler to silicon inverters. recently has and lifetime trench-assisted carbide As Xx planar, solar technology. Thanks

residential still microinverters is to per XXX track on solar, individual GaN significant revenue DC customers. residential AC a watts For power convert low panel, high ramp XXXX here, multiple to voltage solar voltage at with XXX for

also anticipate in and We this segment this growth billion Act as starting year. $XX solar, storage dedicates the Inflation accelerated Reduction over to wind

and to industrial Turning home appliance applications.

appliance carbide today industrial shipping as will nicely Navitas shipping XXXX excellent GaNSense we and carbide, is now industrial and progress customer applications. a motor XX either gallium silicon and with control across nitride, make percentage In GaN the ICs we production have half-bridge in in revenues revenues. while high our appliance increase total, to in continue silicon high over anticipate power volume in of or development. projects are In market, We volume

Here again, create anticipate segment. U.S. this dedicates the we upgrade in Inflation will billion tailwinds Reduction $X efficiencies, which Act home appliance to additional

or known high to efficiencies, center have Plus on higher legacy data continues X. to lower power Titanium Titanium data Union’s density Navitas for system XX center requirement dedicated power enabled all year the XXXX. system Plus platforms of deliver effect January platforms team as projects, early into cost compared European production performance system came this and systems. later supplies development These In which news, high to efficiency target four customer develop silicon

GaN XXX nearly in In GaN and customers despite continue fast wins Note recent and in from year, the Navitas plus our developed minutes. fast and charger smartphones fast ultra-fast fast Xiaomi’s charger design a and charging at charge pace XX, strong X Redmi a slowdown for XXX% Oppo, for Samsung, laptops, Anchor Last watt designs more XXXX. market the which lightning mobile, Dell, new Lenovo, enables XXX

In X fast and XX announced and addition, launch charger. Realme week GT charger this Navitas global just with new XXX the GaN fast our XXX is XG featured technology partners. Qualcomm watt in technology GaN watt Google, And we the the OnePlus a utilized OnePlus in other alongside major

XXXX anticipate market XXXX. we as our as less and appreciably in a our consumer percentage revenue Given be to expansion to diversification, mobile business and of compared

and year regions. expansion and a In summary, of markets was XXXX technology diversification of significant

growth Now GaN, devices carbide, established vehicles. controllers, electrification legacy in silicon storage edge are dollar and multi-billion enabling also uniquely displace silicon major the we electric new leading with to solar, power while analog and positioned energy, isolators digital of like markets markets,

Now over to our CFO. Ron Shelton,

Ron Shelton

today, take our I’ll the you, joining the quarter everyone of year results. annual Thank my outlook for first you financial you our for through XXXX. In Then XXXX this and first and comments quarter Gene fourth through full thanks walk afternoon. us and I’ll

Revenue the million grew represents of the and growth XX% quarter quarter XXXX. $XX.X fourth to for fourth from

XX%. XXXX, revenue million, we representing the our growth $XX.X to full of year grew This guidance. For of in was line with year-over-year

Navitas. pivotal Looking truly back, for a XXXX was year

which China we from exit market markets, EV. of with the solar, home our are on demand. the our revenue appliances, acquisition GeneSiC for of we end entered based us immediately industrial Not year our the significant market. we As had carbide market industry seeing beyond have GaN We most the leading into GaN focused silicon in that diversifying products we coming position year, our gave market, into smartphone entry center, the products leadership mobile and data only with maintained

most the power billion successfully Together by market set committed asset, with opportunity a XXXX. to year employees our as incredibly semiconductor technology, industry-leading exit the a complete scale and next-generation a and important $XX company address talented over with organizational we products, pure-play of GaN, totaling group of

non-GAAP In Non-GAAP in costs the and I’d non-GAAP refer of in all reconciliations Before from addressing our will shift GAAP fourth operating quarter commentary to the release my to today. an from product benefited commentary, quarter expenses, expenses. rest in expense to operating we like refer the third to XX.X% was a the gross revenue. mix as earlier our of the and increase in press costs XX.X%, margin you

we in Gen in year TSMC and XXXX early new cost expand XXXX a XXXX, targeted optimized to to this Margins products. For during lower industrial we year compared fiscal GaN X prior absorb margin year, new was wafer the market the XX.X% transition strategic in adversely appliance will as decision home in impacted non-GAAP a from by significantly as market. higher gross margins were through to XX.X% prices

results quarter were expenses SG&A XXXX. of million operating that Non-GAAP fourth fourth our in was of $X.X a operations expenses of R&D investment quarter acquired Total last continued to $XX.X GeneSiC employees, Fourth which which our consolidating remarks quarter, paid was reflect an full in compensation was And a million million, expense quarter XXXX, mentioned of month including full for the subsequently as quarter last and our salary. $X.X the non-GAAP from closed non-GAAP quarter joint additional a and business, we of effectively we in increased bonus week. China venture,

technologies products, includes million GeneSiC operating increase fiscal $XX.X in QX. our VDD significant completion prior markets, compared in expenses continued acquisitions joint $XX.X expenses million XXXX, were our year. to of of For non-GAAP This and investments the the reflects rising and venture beginning from consolidation and and new year in

are investments significant for in the these stage All of growth future. the laying

markets quarter loss to in all as of the invest our from simultaneously million Putting of $XX.X new non-GAAP this to operations from fourth operations was the we in million a together, compared growth. XXXX continue phase $X.X company’s of loss this across

shares. Our weighted XXX.X count basic fourth for quarter average share the was million

equivalents are Accounts a day capital debt of $XX.X paying we progress Turning of working was quarter to will to of at $X.X off and million. with to in that quarter, million million continue prior remain Components the it on After compared million, sales reflecting balance cash continues and sheet, $X.X cash the improved to receivable front. high $XXX.X end seeing outstanding. remain strong levels liquidity. were focus

Inventory to $XX in than to time, due $XX.X generation rose largely our was We for flat relatively the turns days sequentially. our trend towards the from to that inventory in will prior million that one that target Xx. Over manage of products levels million better compared inventory will to we’re and inventory the and of quarter, next. transition confident transition long-term carefully

Moving on guidance. to

product XXXX, year-over-year $X.X first and and the currently see we million represents as relatively sequential expansion lines opportunities. XX% recorded of the This quarter, it our of over flat we in revenues market a of basis. first the substantial For on reflects quarter new growth approximately

assumes guidance silicon to demand in shortened and due for supply and limitations products Chinese continued carbide Year. quarter strength some Our New with

further we XXXX. double revenue believe into for over mobile we expansion beginning carbide recovery out our in and expansion can supply look anticipated with As into new we in market that XXXX, markets availability silicon QX products, of the

wafer margin to sequential a also GaN is on Gross be flat pricing quarter basis an increase due partner. relatively first foundry for to from expected our the in

as margins few to continue expand X the quarters segments. to we products that market share higher we margin and will in next However, gain new gross expect transition Gen GaN over

In and total, through gross mid-XXs comp, audit The operating expected $XX incremental these trend continue intangible stock-based expenses be expenses For assets. XXXX. we our the million, will non-GAAP and due as we exit transaction expect QX to reasons, our the amortization fees. to approximately is margins year in are this excludes primarily to and increase of increases to sequential and compensation grow

that of invest scale to of mind, percentage that quarterly high-single-digits growth, we will continue a revenue in in throughout as a expenses as rate the expenses but will mid we basis. sequential a to will With We at expect decline year. on increase

quarter share the million XXX XXXX, be weighted basic For of approximately first expect we average our to count shares.

we the opportunities the excited closing, about are and in front in of So the pleased for we significant us. results quarter are with

the industry, our power company becoming fastest the we with the in semiconductor power companies only next-generation pure-play and to semiconductor markets, end intents As one of technologies the in growing intend targeted invest products the resources in world. of

begin Q&A the let’s Operator, session.

Operator

Deutsche of question Bank. line first Our Instructions] the [Operator comes from Ross Seymore with

Your open. line is

Ross Seymore

for Thanks Hi diversification the for letting is color. me question. to end market very The Thanks guys. ask see. impressive

the if within wondered and doubling Just you thought markets by even end any of color the those end growth directional sort quarter those markets. guidance, first of revenue by

Gene Sheridan

growth nice shows are and strong of Yes. growing each the Hi, mobile that starting starting the of that in overall, see that year-on-year. QX We I hear in recovery others you. the half is from to each less the see market them but commented QX, we Yes, growing. but flowing second we than Ross into year, think given recovery

Ross Seymore

up, And about or the about and the going mid-XXs. talked margin talk Can sort XX% a gross of on exiting traction. you tailwind, mix year any puts then to you I X know is color Gene, about just metrics. Gen at for those increasing my But and be takes? the the follow

Gene Sheridan

margin, benefit said, as from stable. transition. as also we’ve margins will Silicon Gen Really are increasing north higher Those are as commented X higher before, it’s enters markets. carbide the Ron primarily of GaN XX% the prices margins power

driving the incremental are improvement. those So factors primary that

Ross Seymore

you. Thank Great.

Gene Sheridan

Thanks, Ross.

Operator

of open. Blake Friedman with line your Bank America, is

Blake Friedman

Thanks my taking for question. Hi.

business. margin wanted the Is cost quantify higher from that’s side headwind opening coming there can remarks? you you wafer the of way the gross mentioned to Just in that on any the the follow-up

Gene Sheridan

dawn QX margin margin that been X. offset the X% is it’s put that by increase in was gross There that’s full in or perspective no a than commented it, of many the our by in, muted cost quickly flat coming mentioned Gen actually one-time of in had QX. more January But and some the to reduction X% kicked and causing industry. for We from this year impact margin additional That’s expansion margin Yes. year. to

Blake Friedman

said want I year. that grow to then remain for on you that XX% And you following-up, were track a just Got quickly into this SIC-related target with confirm CAGR it. track sales to believe Helpful. this at on just previously that year. I

Gene Sheridan

Yes.

target but breakdown given SIC, are haven’t and year-on-year, a a it’s contributing We or GaN to specific for say to doubling. both growth that strongly very fair growing

Blake Friedman

Great. Thank you.

Gene Sheridan

Thanks, Blake.

Operator

Tristan your Gerra Baird, with open. is line

Unidentified Analyst

update maybe provide you Thanks where Could you on rates an adoption adoption Hi. see? taking is for on then target Tyler And in Tristan. the rate provide of think you a could GaN questions. for go? smartphones This that year-end for currently the

Gene Sheridan

of them. trend is We that will Tyler. Thanks described that. very the watt range. XXX rate mainstream you Number picking we’ve watt call number as XX Yes. strong Hi, in And factors. now a it’s think question. what certainly the that to moving in but adoption above, few we I we some is saw strongest one that and more ultra-fast even think certainly in before, we adoption the have don’t percentage, Yes, a your and into moving higher strong XXX continue. highlight But see see for us we adoption adoption specific watt XXX the a below and up chargers, and

cost to watt sort accelerating of mainstream range. is I other The contribute comment the we’re XXX also silicon will system would parody XX category chargers that track adoption that of make on with for to heavily

Unidentified Analyst

AI supplies the for technology potential then implications of on the adoption your and the of Great. power and of center? what the the in GaN benefit are for ramp And my centers follow-up, data data

Gene Sheridan

Yes. Great question.

you but have two color, really didn’t we that fundamental fact, In give challenges.

have power. efficiency. pressure on the time, the intensive AI of for because power of Titanium on putting also to to pressure higher a Plus centers That those lot these struggles more GaN Titanium that You’ve hit course demanding At new of deliver same spies higher higher the density, are power great demanding data efficiency silicon for That’s struggles of got the Plus. requirements. but standards both efficiencies deliver to higher is the

or is ramping all talked contributing that XXXX. GaN-based market. of as those we’ll we markets to year So in launching data think this into first be acceleration and the about, into course, centers we our significantly that of later And shipping

Unidentified Analyst

again. Thanks Great.

Gene Sheridan

Thanks, Tyler.

Operator

Rosenblatt with Cassidy open. line Kevin is Securities, your

McClain Culver

my remarks, commentary for detailed the some Hi prepared question. guys, taking silicon your But spoke this carbide is for on give Thanks could this. briefly Thanks. Kevin us you supply In on McClain Cassidy. current on dynamic? you

Gene Sheridan

much Yes, talk middle very we the We signed the from a but multi-year year. when quarter material suppliers X-Fab in silicon year with good year Xx didn’t that EPI that the last question. about this throughout company for announced next we into carbide substrate, ramping an it, and increase a supply last enables acquired long-term we and agreement of

So a supplier major that’s agreement.

all can much shipping we’re as build the you As industry know, we is. of

And but material starts that to wafer QX, those it’s starts in supply to is going for the feed and starts.

significant we chain. QX goes expansion when through commensurate the growth increased and supply that revenue all supply the actually feel the therefore capacity So in

track. on great from a beyond. carbide It’s QX growth fuel that’s silicon of So and a deal the for lot us will and

McClain Culver

your us And qualifications you. related kind the follow-up. of Could provider? as then you for just Thank Okay. give new substrate provider

Gene Sheridan

Yes.

name the name the or revealed disclose supplier. of the haven’t We

point. So at much and add EPI color there’s more this the to suppliers not substrate about

McClain Culver

you. That’s Thank Okay. all.

Gene Sheridan

you. Thank

Operator

open. your line is Bolton Needham, with Quinn

Trevor Janoski

ask on guys, me Thanks Janoski Hey for Quinn. for a and Yes. hop on question. Trevor is this letting

material to EV and and charger the but you opportunity the sorry when become onboard carbide announcements, silicon if missed revenue? charger expect and I part on So ramping of roadside begin do this,

Gene Sheridan

were already last Yes, company. the shipping that when even occurred. We acquired year ramps we

acquisition a commented year we X% last of with benefit and of the EV year’s at fact, and GeneSiC was that’s that half quarter revenue. last In only

we’ve and new onboard are position we So all about we And well gave significant charger the why EV collaborative ones the as And and created. will as that’s growing as that our chargers into one that nicely that’s globally moving as both of center those right. OBC and a really customers both GLE accelerated number roadside highlighted the by up supporting roadside almost charger. general design of be well comments

Trevor Janoski

on you can And for comment the these solutions? ASPs

Gene Sheridan

per the of and to again, some carbide, level it application, many system. on devices beyond them the depending that’ll upon, of Silicon that range. really carbide of it power application. and the can vary on level. range and the have if on dozens It paralleling anywhere can tend power to from Yes. the in be of the and dollars, $XXX power oftentimes not ASPs silicon depending It in from extend, depends systems, depends level $X $XX. It you’re power content dozens devices but general, does But application of level

Trevor Janoski

the you a relative a revenue clarification, revenue? Okay. XXXX. mean mobile less be of you total in stated Thank quick charging that of you. should XXXX revenue or And GaN Did percentage to

Gene Sheridan

No, total.

Trevor Janoski

Total.

All Okay. Thank you. right.

Gene Sheridan

you. Trevor. Yes. Thank

Operator

Gould with line Tactical open. Growth, is Gould your

Dick Gould

this Yes, Gould. Hi. is Dick

supply, revenue? give to you sense a more follow-up available. your the had carbide you a the shipped you can silicon on Kevin’s insufficient As held carbide substrate back could had question silicon how in It supply sounded have the much like of

Gene Sheridan

to Yes. Dick year? last referring Are QX you QX,

Dick Gould

Yes. Yes.

Gene Sheridan

think Yes. million numbers. or conservative have always been sort there to quite gave judge because But I we don’t quarter a bit of of there’s per It’s million shipped. certainly could is X a estimate. X that hard demand specific

Dick Gould

ramping follow the from similarly quarter And on I your describe up you this side, gradually just adding the to are supply I first supply over I to to GaN guess, Okay. situation? silicon on? understand year, course you carbide I'm of then can assuming also mean,

Gene Sheridan

big by of last that their tripled leading customer. and Yes, capacity actually that share year think as end that was I year. last year that you couple of Most of capacity announced TSMC we took last and the had this we capacity tripling a had when added the

half opened and last capacity. channel we middle mobile the up that of softening year, lot of second market a and year the saw that the With last of

enter We So it's situation. different situation. pretty year a strong with the capacity a pretty

continue throughout case and limited expect supply not year. that'll we the We the in GaN are of

Dick Gould

Thanks. Terrific.

Gene Sheridan

Dick. you, Thank

Operator

is line Craig-Hallum, with open. Peterman your Sam

Sam Peterman

for question. Hey guys, thanks my taking

that Eugene of that show as heard mobile a just to was earlier going in over kind XXXX. was I I year your to run say an then mobile about little the surprising hear given for the year? that can at. did market are to guess, right? I end XXXX you assumptions of you're talk growth that a the outlook rate Can you that exiting response about into guess talk the question think in I me And baked I kind

Gene Sheridan

heard Yes, it It that year. grow fast not quarter. backlog not as no, see will in other start strongly QX inventory second a it does back, markets you gets even levels slow of we coming We low. with and right. see of that as on and sort QX next indicating But quite a since back the the half it only recovery from benefit market just starting the forecasts channel stronger that coming recovery

We of that GaN released production, also customers GaN at the XXX the us ones new back. highlighted ready year, developed market, our chargers adding XXX plus as nearly already to like with to launch market many last chargers them something puts that comes in to released

And we still that. got another XXX development behind in

there's lot things we're stronger other that So growth of year-on-year, markets. positive said, in and still growth planning as but growth a optimistic growth, but even that the cautiously will drive good there I that

Sam Peterman

think XX I said that's track? up, $X talked a on know million you market, wanted now. got that order Okay, center thought would ship more have, I helpful. Is guess last I then I on about right before programs you I to the you broadly, really quarter you half of And as in still the data follow purchase you think that year. back this ask

What spending I mean, that I in seeing in the know data are but in the guys at think you I'm just that, of center you seeing data curious, edge be areas the how I seeing leading nine market? you're you is there's just market? not last center, design certain had but quarter. activity being that terms may and obviously slowing

Gene Sheridan

one nine highlighted last actually said, time has including program customer from Yes, with you delayed we've pipeline, that to the increased pointed XX. into that out, particular as that But XXXX. we

a So of we don't see trending up any little there, bit slowdown. signs

XXXX unique we I and a see. macroeconomic think can of that is to that program any one of pushed reflection not trends that kind

that positive, looks it We're you earlier a think supplies. We power in these AI indicator of between demanding Titanium it. more comments not I upside about the zero strong centers early we coming tailwinds all see So Plus power we're market. and but data the and lot from see say, best from as of the

Sam Peterman

Okay, great. Thanks guys.

Gene Sheridan

Thanks Sam.

Operator

CJS with open. is Tanwanteng your Jon line Securities,

Ross Kesselman

is I as this standards for different were for on changes maybe you traction the titanium in could renewables you a bit such you think upon and more quick Hi, seeing color? Ross A funds Kesselman and the you IRA policy Jon. for could touched add you do the know specify it, question, from Europe? but little

Gene Sheridan

Yes.

standards. power one X. titanium designed meet that's supplies I think to in started these that a unique to place global is already standard of January It's specific EU, are most but

required meet Europe. the the say, out is toughest there, to is which the standard which titanium I – minimum have in standard I should So or one

closely So titanium I meeting data different driving platforms, those have customer actually XX four we talked centers is that clearly strong trends with working that all customers them standard, us, in development, about. four of one that for platforms, server

Reduction is money. huge Inflation little I a amounts think It's of Act different.

over XX billion is highlighted we billion, it markets, As our out XX in just target this rolling year.

ultimately So exactly have big Sustainability will that to impact's say and be then think what also our and but be. see efficiency early I our in charger roadside tell the consumers, infrastructure as EV impact They're and or areas. particular. to should these going are solar energy what exactly appliance impact Upgrading bound business. we of think to in numbers. it's renewability customers, I an those the will home time dollars to to flow Those to I talk each

Ross Kesselman

any improvement know Got previously silicon carbide of on indications constraint been I in of it. there's the area? mentioned kind Have products. seen that a you a you've that

Gene Sheridan

it's long-term the we ramping It's this a Xx signed from Xx this quarter. year and starting agreement to it year. that's capacity support when now but that and GeneSiC revenue starts step we back revenue go last And next that I'd quarter into acquired not next Yes, year and function, quarter last of throughout to a into increase. middle increased translates

gives it. if headroom more that So of to us a we lot can do do

Ross Kesselman

Thank additional much the color. you so it. for Got

Gene Sheridan

you. You Thank bet.

Operator

[Operator Instructions] is Natalia Winkler with your Jefferies, open. line

Natalia Winkler

Yes. taking Hi. Thank you question. my for guys

accelerating for little that Thank I I higher to acquisition So guys you. faster bit solutions voltage of terms understand one in application? that joint to the kind with the venture wanted you is pricing fair Eugene, a had it's that of against parity the better. assume or to Is just it with parity silicon moving this for

Gene Sheridan

Natalia. No, observation. and a it's thanks a Yes, question good great

exactly you size reduced performance, And system in factor chargers, appliance power but it also helping optimized supplies. cost. there that parity leading carbide, Well, rolling not mobile of you silicon home combine GaN. right. I density, that get bomb with compared footprint, performance developing them with When X, and mentioned frequency us adapters. us out for around And simultaneously, You're roll and cost specifically the GaN a really consumer edge to power optimized cost nice controllers also we're Gen that's the co-packaging reduction are silicon, improved actually doing a higher that on to that what improvement also is improvement driving analog we're our only is auxiliary

Natalia Winkler

historically think price we some annual in I this about And should you heard ones? guys Awesome. that then the was kind That's saw the How dynamic? January, Do Is helpful. about how increases X% had November. I that January, guess potential contractual have increase then one really think maybe Gene, kind I correctly, we've like, already if understood that a expected of you Thank you. other XXXX. TSMC, – And some I increases or you of – fair? of mentioned

Gene Sheridan

X% in January. right, that's Yes,

is I alluded or any to heard a prior probably certainly had in It’s quarters. us it as from suppliers. think earlier way you many not that we unique There anticipated in XX% was whole industry supply and one-time felt. situation for industry the unique the we are that whole do in as events discussed the shifting. and Obviously see unique industry. But demand, these the

further cost to increases that suggest We place shifting look environment. that's any anticipate I don't don't increases. reduction cost a balanced expect healthy agreements contractual going forward. we And think to more cost and any any forward what would have certainly it's certainly more a we and

Natalia Winkler

much. Understood. very Thank you

Gene Sheridan

Natalia. Thanks

Operator

open. with line Seymore your Deutsche Ross Bank, is

Ross Seymore

guys. Hi mobile of your end is me you color market wanted little on just second on follow know here. growing start market. Can just for again I to speak it'll I Thanks view said just walk a helpful. a in the again the let very bit The is you through in talk in itself much popping Was to in the like and at at very I'm doing down if it ship generally before math the market. quarter correct inventory all, correct. you all the into order back? about seems the where that channel starts get It quarter. didn't fourth channel inventory mobile my

Gene Sheridan

forecast certainly compared expectations increased into inventory, intake, we Yes, reduced and QX QX QX, out. pretty but have channel strong to And soft, actual very certainly adds see order that even on bottomed and bookings only confidence. to increased report prior fully our an both zero, were not the strong soft but out certainly Coupled a from we with we and QX backlog hopefully significantly quarters, that don't customer. and booked

leads recovery. anticipation taken of to QX that of all our So that together

Ross Seymore

seasonality reopening wins, a number about prevalence there important huge and of of to sort of than think to is more pattern? business much the that or design seasonal China any channel a dynamics And the is and

Gene Sheridan

is is unique independent factor No, of anyway, consumer, typically soft I this in think and seasonality situation. QX a always mobile

New You've also always has got Year, production. and on an impact both Chinese which consumption

QX. all probably together And modest to of the that to adds in recoveries add or a sort QX. So we're I think then of seeing that to rolls softer

Ross Seymore

Perfect. Thanks guys.

Gene Sheridan

Ross. Thanks

Operator

call quarter call. XXXX We Q&A and fourth thank your earnings the This the concludes for conference you Navitas Semiconductor portion concludes the participation. of

now may disconnect. You

Navitas Semiconductor (NVTS) 23 Feb 232022 Q4 Earnings call transcript