Earnings call transcript Q1 2023

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Operator

Good afternoon. My name is Emma, and I will be your conference operator today. At this time, I’d like to welcome everyone to the Navitas Semiconductor First Quarter 2023 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speaker’s remarks, there will be a question-and-answer session. Instructions] [Operator

Relations. Investor Oliver, Stephen

may begin your conference. You

Stephen Oliver

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

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

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

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

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

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

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

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

Gene And to now, over Sheridan, CEO.

Gene Sheridan

next growth All key solar, our guidance In transactions. the our are QX and markets with high optimized in when including business. months, our revenues be and completed solar, very year, energy carbide and as vehicle, started the industrial combining XX mobile and for end of experienced industrial $X year by appliance up X energy VDDTech, our this carbide I’m a applications. appliance GaN we per storage exceeded we and silicon frequency to well. metrics With vehicle, ramp very with digital market in silicon electric will we adding Steve. pleased past integrating Thanks, strategic with late electric all sampling GaN X isolators and financial in recovery progressing storage solid with results, to system

to Elevation, called GaNSense GeneSiC and, and in we million well expanding next mobile over platform industrial we customers the have customer X as largest The over pure-play into Navitas accumulative With as total, as company. next-generation and date already just acquisition center and launched be will appliance address have family positions in customers projects only units generation our XX Control development have shipped customers. semiconductor data time. GaNSense is consumer power our Control to

across all our the nearly nicely that to very Navitas relocating announce key to opportunities driving GeneSiC since of the excited headquarters I’m team all company, across XXX design centers the in and taking and target the over entire advantage new Southern especially California acquisition system of new FAE sales, global in markets. is integrated our is functions

either backlogs business revenue development to total DC a our chargers. silicon silicon carbide, pipeline with XX shipping in momentum onboard silicon and includes and and with shipments, of over GaN both fast in DC which converters, carbide, or over each have Let control development projects carbide we markets. update $XXX roadside with of and strong electric vehicle, pipeline key product customer on GaN and million. me our charging, now progress traction and In in Across

to largest generate year, new with EV with delivered $XX prior year. onboard will silicon $XX design revenue Geely, supplier globally million the In our last for in our charging system carbide million exciting joint that center particular, our already announcement has next Xth design an results additional

still XXXX. in are track GaN We production for in EVs based on

X system EV top EV with working development, of in customers, our design utilizing silicon closely has system GaN designs center and now carbide. Our a combination

have with or energy in shipments, over over In backlog momentum storage, in strong pipeline a production pipeline $XXX customers and we XX in development, revenue total million. solar and of and

shipments We the on top projects solar with with development the carbide solar majority players and market with now next silicon ramp year. many to track have of globally, XX shipping the GaN into

and of appliance strong government industrial, $XXX XX homes upgrades we and million, energy over production fueled and and a and other home development over regions funding regulations pipeline In in customers clean have driving U.S., to factories. Europe or by revenue in

major Europe, industrial in which significant carbide silicon at business a be will markets called first near-term. week key the strategic of module first module the a silicon our the introduced to high market, of SiCPak Navitas expand the carbide is the This entire Show a The Last SiCPak. as the carbide PCIM, is we Power silicon our power percentage announcement silicon in carbide Electronics many enters power technology market. in package Trade

requirements In accelerating AI, to address being data power well positioned IoT by and we centers, data driven the are in general.

revenue new our million. the powered launched of GaN high which ICs, market we in customer over increased projects QX $XX XX, representing have to to sampling continue development pipeline our a and We

and track accelerating system this developing on Our that customer to design late which X center are are these designs and year next. ramp supporting revenues, is

to at fit silicon GaN center our we ICs, a to Also value to we customers. power our last PCIM and complement appreciably all which center carbide announced adding data supplies MPS dollar for are total to data new content great perfect week, expect a of deliver Gen-X the diodes, and our

revenue development profile of beginning include Ultra our business, going designs inbox chargers bookings mobile XX.X only projects Lenovo’s XX XX in a pipeline millimeters. amazing phone $XXX ThinkBook the and a mobile, QX over an with launches which charger, million. Pro laptop have has customer Xiaomi flagship we and mobile XXX strong market In new over of biscuit of launched in we and QX. in latest recovery into These see Finally, with the

very solid our all controllers adoption market in leading and growth summary, developments, product We silicon progress to and results. pleased and deliver our value, translating In I’m across markets expansion. isolators is with silicon now customer significant customer edge carbide financial and into complementary target mode, market launches, with acquisitions, and GaN see strategy

Now, turn financial let me CFO, it on as our as those our results guidance. over to Shelton, update to well Ron

Ron Shelton

results, Gene. you, quarter of the you comments outlook quarter XXXX. Thank and I’ll In first second walk the our through full first I’ll for my you take today, our through then year

to I our I Before get the quarter. want first step and remind you last into the first some quarter, of back for commentary results of

recall, could revenue see XXXX in we as indicated compared to As we doubling that XXXX. you might

to quarter $XX.X X% results first than to Revenue discussed which Our first a in on and XXXX This beginning objective. as of start sequential meeting the are quarter. guidance. our XXXX of a year represents of higher quarter growth an was last basis. quarter million, The XX% over we increase that first great the unfolding the grew is

QX. overall activity carbide growth pipeline we continues bottoming in general, add market to products seeing recover of be customer starting our in opportunities. as We’re expand and and engagement capacity in to silicon mobile and our seems And, expand. The to

refer in commentary in will earlier operating in compared release expenses. you non-GAAP to of our expenses, commentary, the rest the the first operating increase all quarter costs costs Non-GAAP In issued XX.X% an to XX.X% refer of non-GAAP first XXXX, in today. quarter expense margin to quarter press addressing gross my to from was the as XXXX. the I’d XX.X% fourth and of Before GAAP like to reconciliations and

of transitioning call, quarter’s discussed results. the segments. In last of among and those the them the taking behind we in gaining XXXX. for In first non-GAAP margins expanding products results drivers beginning efforts some next the hold quarter new, share margin in to for million gross generation were this operating first $XX.X higher expenses our Total year, of represent market quarter

and Our million, non-GAAP non-GAAP $X.X million, as we for was invest expense $XX.X manner. growth SG&A disciplined a than guidance R&D continue better in to slightly was

loss of Putting the XXXX. to operations operations non-GAAP from of the million, $X.X was loss all compared $XX.X in together, quarter first this million a from

invest to growth new we As focus across and markets continue simultaneously opportunities. on

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

no areas. cash and Cash with continues Accounts capital, receivable talked $X.X we’re reflecting keeping $XXX.X carry very improved in We’ve balance $X.X the and those sheet, liquidity. strong of levels million, debt. to the at was focus million a working improvements million, equivalents compared about to significant we Turning on day outstanding. and it past quarter prior end making high in to were quarter sales the remain in

to $XX.X prior $XX.X declined million, Inventory million quarter. the in compared to

times. confident target trend turns levels drive time, align As inventory towards inventory more our Over going to we long-term business than that with forward. of better X our continue for we’re levels will inventory closely our to

on terms work our standard align with to continue practice. industry we Lastly, with better to suppliers payment terms

Moving guidance. on to

see the currently of revenues we first million approximately sequential the the $XX At increase million of represents XX% the year-over-year growth midpoint, quarter, and this of over second in second we substantial in quarter to $X.X over range the XXXX recorded of a the XX% $XX For million. quarter XXXX.

more robust on the further in by quarter. EV, backlog solar, market, the increase than based and of beginnings is all the consumer a a in strength guidance Our evidenced and during mobile appliance/industrial, recovery XX% in

the expected margins range translates mentioned quarter this discussed I for to we doubling points. that Gross in to of last call. As of XX slightly XXXX second to earlier, higher basis over move believe a are in revenue we quarter’s XX the

continue expect gain market transition new segments. generation over We that quarters next to higher products as few we to share will in expand next gross the and margin margins

gross continue the to we discussed previously exit our the as as reasons, trend these last For will and quarter’s we XXXX. grow margins mid-XXs call, expect through in to year

this operating compensation, $XX second and excludes amortization based expected intangible assets. non-GAAP expense the million, and are to of be our total, quarter approximately expenses, stock in transaction In

investing year. in scale will of expenses we growth, throughout as as percentage the will We revenue, continue a decline but

With expect at mid- to that quarterly high-single-digits a will in of mind, a on basis. increase rate that sequential expenses we

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

front the are the are show up our opportunities starting our quarter, are quarter as and second we In about to with us, extremely guide. results and noted results which closing, full excited for in significant the in we pleased year in of

As of I’ve semiconductor with products and are intend the we the next industry, in becoming the the one our markets, resources companies pure-play fastest intent said in technologies power only growing invest and we in world. of before, semiconductor targeted end generation to the

We’re off start. a great to

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

Operator

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

open. is line Your

Ross Seymore

for thanks me the question. solid guys, Congrats Hi, let on ask results.

Just dig is the bit little a growing. wanted demand into to how

Any think or rise fall updates about to surprises the you sales up in year. I as sources XX% what talked going for that? please? percentage And the the numbers, in would backlog talked so of quarter those a You speaking, the last of generally sequentially, doubling any fiscal about,

Gene Sheridan

Sure. mobile of each Thanks, that as We of question. the backlog. all and in note, strength your contributing markets, recovery mentioned, we growth the to Ross, the see Certainly for they’re in showing up good commented the in on that backlog in QX other growth was growth we actually revenue, up continuing not but into QX, sectors. setting in but also see growth, that

again, EV storage and solar is of full terms year-on-year, different those. growth In growth of but bunch, across that’s of particular, strongest each and X outlook, and they’re great, across energy which the all highlight markets. course, probably In of growing the good year I’d

Ross Seymore

again, the updates one exiting time. mid-XXs for on just Ron. much Or the changing how all guess to with you’re it like backlog? like Any XX% but perhaps It on schedule there, is Great. on follow-up, on as getting this is revenues, pretty track to my margin I or seems gross for too? just

Ron Shelton

Thanks, all on Ross. schedule. it’s No,

it’ll and so each think there’s no So, sequentially quarter, laying again, changes. increase we and that’s what I seeing, out it would. discussed like It’s we’re kind really thought of we’ve

Ross Seymore

to you last Then, general? on the in the cost updates I’ll metrics? and on some in or the quick supply next silicon it have been surprises equation customer. of me. raising limited then of prices. you. pass Any know been and for Any somewhat then have side, guys the Got your side And foundry carbide supply those on changes one I partners

Gene Sheridan

includes already TSMC To reiterate, a long-term that the carbide over for Ross. And year late think I that guidance of in change, XXX% on both with predictable the increase signed time. and kicked about. suppliers side, silicon we X% that’s and cost QX slide that’s agreement increase we QX material X-FAB last Ron mentioned reduction No of kicking already had that stable, talked the in that price factored GaN in

over So think decreasing no and really at changes; this anticipated I only time costs point. are

Ross Seymore

you. Thank Perfect.

Operator

Securities. line with Rosenblatt Your next of question comes Kevin from Cassidy the

open. is line Your

Kevin Cassidy

maybe it But more why came upside those say shift expected, what taking your maybe guidance? thanks great the little on came Was along and a feel more get in a above it – congratulations you the going Yeah, able question inventory? you Or of why you for Or did Just pull from to was maybe that momentum silicon carbide my we’re where were results. lines, in and seeing than in? can you from? quarter happened forward.

Gene Sheridan

[ph] we’ve each as we actually, bit mentioned, the following about our of And is talked into in we in great last question, silicon well. in strength I think I across QX, kicking and in And the feeling markets. supply Yeah, sales But design silicon in now mostly we QX Kevin. entire some In mostly wins in backlog lot the of our beginnings markets QX, each the carbide little a force kicking multiple as the mobile the recovery see year QX. carbon general seeing are got a strength, market of feeding contributing. agreement

us together coming to All for see by the pipeline the growth. the by of across for this some adding sharing years QX, sector to the this confidence year, reiterate market, that of guidance we even doubling the give opportunities revenue and improving

Kevin Cassidy

the And your from very all mean, life Okay, your can from product? I help maybe are numbers. that here, the just of what can the Or customer’s far customers? Is pipeline? you us to the tell coming like us this are as out product great. see you of your is of those impressive forecasts as definition

Gene Sheridan

a is metric. new important it Yeah,

the opportunities. excited the of customer magnitude to very potential It diversity qualified the certainly new is that define We’re about revenue it. for and

pre-qualified So themselves. it are may doesn’t be They it. That’s include ongoing production programs. programs. ramping Those independent of

solid make early value So the The them real. is and program customers. is for prop fit anticipated value sure our our to The for technology. is scrubbing good

think, we’ve as or taken a calculations as it conservative, pretty might be. program well been duration implied, there assumptions that we revenue lifetime you on And We’ve that pretty view. vary So I market. believe can conservative is by what on our lifetime

Kevin Cassidy

again. Great. Okay. Thanks. Congratulations

Gene Sheridan

Yeah. Thanks, Kevin.

Operator

Your next Gerra question Tristan comes from of Baird. the with line

is open. line Your

Tristan Gerra

Hi, good afternoon.

from you to pipeline of revenue actual think last the As what an what that percentage signed win? actual a you which expect revenue the design turn question, becomes into to the will would follow-up potential pipeline defines

Gene Sheridan

taken metric, conservative make I as be it’s sort that technology Yeah. Thanks, Tristan. technology converts the And is sure these Yeah, new really time. sourced. decision a will we using good. good. of the programs. share Ultimately, of pretty and percentage is timing what in our technology, of view to committed ultimately, percentage so are – over project have a to project determined But conversion revenue The The scrubbing use emphasize, interest our if the value volume. we’ve production course, on fit ramp the One multiple factors. and to customers actual is into of that depend, final multi it’s course, will

feel when opportunity is to an good number. hard real it little markets. it which you the predict about a all But $XXX across percentage what of capture that appreciable we million, is that it’s So total to the

Tristan Gerra

of market based that Okay. what this much based to your at market gallium And view smartphone metrics consumer And give can production your today? And in year? bundled with then chargers do looking also rate aftermarket? think share backlog, actually maybe some that of be on of if you us nitride versus could gallium in how OEM the as in you nitride the exiting is your

Gene Sheridan

good all questions. Tristan, Yeah,

mobile and established and our GaN maybe course, in today, view, markets there’s chargers market from market adapters. leadership market a for third-party the of we not our technology that consumer high target certainly clear voltage is While have perfect report, position

we’re probably next center position in leadership that this ramping the market we’ll the I and XXXX. go EV market as strong position a establish that’ll GaN believe grow and to later we there in So, think, course solar markets, data continue And position power even of markets into in other year, expand. in we higher year, technology that

So, those a to contribute pretty think, all of strong I will position.

time starting. a question China, bit mobile. we with broadly in the I other And namely more on handset the slowdown, think last but still potential we’re adoption, to think of of market, real your what But I X% to with shipping we’re the lost you even in happy Back the in to we’re X% mobile if see versus the others. look at still the year that, in recovery kind total in

ahead So of us lot that’s a still adoption forward. of a growth, revenue lot going of

versus used inbox asked that of was to XX%, I XX% opportunity the think you or It XX% That’s box, dynamic. And if finally, be inbox, pretty XX% aftermarket. easily you still aftermarket. to about out of will,

shifting, it’s it’s be box, if the still the by going in that’s optional think an it’s purchase. not even when I shipping OEMs, but even to major

on optional for So it you’ll major to in see whether offer continue mobile the accessory they to of continue the players, shipping free dollar opportunities us, focus big to an sort consumer. box the as or

I not and But and to strong guys as position top tend XX shifting, aftermarket in luckily mobile pretty much. the it market dynamic is that we’re matter the with delineation of So think will a and players. both

Tristan Gerra

Thank Great. you much. very

Gene Sheridan

you, Thank Tristan.

Operator

Your of Company. Needham comes Quinn the Bolton next from question with line and

is open. line Your now

Quinn Bolton

on extend really second the the was have little will you nice second but with recovery for maybe, congratulations that Hey, this do now the contribute I short-term you murky? backlog and starting like recovery contribute the Do it replenishment, that outlook half? confidence half or a the legs better into Does mobile QX. think out still has is have of Gene sort guys, mobile certainly just to in as sounds in backlog outlook. guess, results revenue it in didn’t QX, all well my but

Gene Sheridan

contributed in QX gives even run Yeah. visibility QX, in and really Quinn. us strong question, in backlog into Good QX. the to up Certainly it

typical. of mobile. the that entire recovery that’s say year and which typically but terms would But coming that visibility sort in of for customers we’re of on optimistic quarter, we’ll we backlog, backlog half only backlog the I of continues update have for got the not top gives from by summarize months good cautiously in kind the X each course. I We’ve So us good visibility that saying confidence. in of forecasts year, you second X to We have of would

Quinn Bolton

to one is a Great. you it being business Geely we grow are talked of number in to in charger on $XX year? that that million state Is $XX And $XX models? Or model it sort that And I onboard of that a does steady multiple $XX that mean, to to higher discuss Geely sort you a million for steady XXXX, XXXX, of in about does still of contemplate million the ramp? then car? charger would opportunity across you and state can onboard million next model hitting more expect

Gene Sheridan

Yeah, it’s one model.

so for The working next million on And well. kind rate run considered $XX to I is and we is $XX the great a then, many state million certainly years to $XX be working outer this We’re win. year would million average as a of year. this that. on which is said, ramps $XX to add actually but more, are steady It great next the year, and likely million considered more, start to starting as

Quinn Bolton

motor industrial of DC that starting as control just an about that more you being or of outlook applications then to pretty for strong market, application the the AC there. to well. And wondering ramp the and is Great. some is I’m appliance lastly talked me,

Gene Sheridan

are It’s in of Yeah, question. integrated a control those percentage that’s ramps starting over highest production half-bridge. are offer, advanced, advantage development. are that GaN mentioned and in IC of Most it’s takes great performance, projects XX And insightful certainly, our motor year, or high we most GaNSense those fit. generation both, customer Most development. our of most next good I the latest

home where our fit integrate consumer of applications, power mobile supply appliances. family new fits common that namely That’s perfect the power these the with controller the chip, But and a for adapters, increasingly only we of chargers display. not the LED power in voltage all supplies low GaNSense the auxiliary control, it’s GaN for

the it’s half-bridge. but nice of the combination is motor So GaNSense control both, that biggest with a majority

Quinn Bolton

you. Thank Perfect.

Operator

next from [Operator Jon Instructions] of Your Securities. from question the line comes Tanwanteng CJS

is open. line Your

Ross Kesselman

is when positive This have you question. for changes Hi. cash expect to Ross achieve you in any Do flow? to Jon. Quick

Ron Shelton

of No, we haven’t any updated that.

in of typically, in operating a the around we’ve revenue. we’ve So, that terms talked roughly XXXX about. talked That’s breakeven, $XX about timeframe slate early what in XXXX, million quarter

we’ve said I’ll having as that, add, no the $XXX seen got cash on you’ve million sheet, balance Now, of debt.

strong position very good about business and organic So being cash the really the balance able to sheet terms breakeven. feel to the in is fund of we

Ross Kesselman

Are discrete stronger in quick And competitors Have any or you to products? [ph] it. follow-up. my you TaN any closer observed Got or then competition? GaN now silicon

Gene Sheridan

the Yeah, haven’t change a seen we in really competitive landscape.

feel the circuits, we’ve So in also but where both temperature circuit about in ever carbide the in we integrated leading in with good high tested. MOSFETs silicon at best we’re leading performance GaN

the extend And lead. on the We in and just are ramping there. new launched that We gallium extending working some MPS diodes, to space. generation-four performance benchmarks looking carbide generation generation-five set we’re nitride which silicon four fast

change no and look quite the we the good feel pretty to position technology grow and soon. about to landscape have it So

Ross Kesselman

Thanks for color. the additional

Gene Sheridan

bet. You

Operator

Jefferies. the Your with comes next Winkler Natalia question line of from

Your line open. is

Natalia Winkler

wanted a Gene, guys would years, on the the questions Hi, year? And pipeline data guess maybe end of of expanding thank market. center that on are from mind kind expecting about include? taking of you the the ramp think that for really the also, that little I I you congrats and this more should standpoint on to my follow-up would the results. number you how market typically at we and of pipeline bit

Gene Sheridan

Natalia. definitely, Yeah,

shipping unique into in nor we we’re that not So one, that carbide already silicon shipping are into again. that one’s

to we’ll sampling and only that At we’re of this this GaN point, power later gas sort the the applications release IC it’s will on mode, of up part to in customers. smallest our set because high in for step production we open So just a even year. broader

really $XX is pipeline, around this in what’s million also today development market think going sampling that led more than has the said, that reflecting over in pipeline. not generative the XX pipeline all of customers AI. already on With I to

consumption I potential create and a going we’re the years, power to massive see big problem, on of market think, to power massive the we’re scratching just is I quarters, implications the data which that’s coming with coming leads a to for go which and believe, consumption, in it, going applications power which surface big to Navitas. that certainly technology a opportunity

that’s the So to term. bit on long a medium

But said, mode, to early always try we’ve then, that the $XX because we we’re I the coming Again, back million carefully we your it’s as question, good days be in lifetimes. about on feel in that and kind sampling to cultivated number of selected these of pipeline. conservative program customers

So like duration. years customer X or of type there X project something we’re assuming

Natalia Winkler

very That’s you. that the wanted the I announcement. Thank And second follow-up to on question Understood. Geely helpful.

What’s figure it of type best exclusivity for but is And Geely, arrangement? guys other that be potential works for for see And that like for level of going the think usually then, automotive these us the even about to you sockets penetration within primary/secondary out arrangement? some forward. a OEM? the to will types how necessarily guess, trying not way source related would any that broadly, Just socket, I there just to

Gene Sheridan

discrete definitely of course, space, there’s carbide players. the Yeah, silicon many in

last months. In X quickly So with Geely. a very because and with EV design this design could we working directly X announced center situation. that a multi-sourced late year it’s or quickly case, the at you center joint in happening last project oftentimes part, look they’re In happened our

of a longer how partnered example their that system EV. a in excited design generally key focused to cycle this and adoption center, go market work really EV is we’re that even So engineering faster, like can players, and development great accelerate their when with super

with fully to. another with [ph] they parts often our even collaboration Not better put only joint validation performance temperature and we in share with XXX% started pricing, tested when high that market Beverly competitive, And it center, that that us design that, premium our in allude had position. working they supplier demonstrated in-circuit

can how a case accelerate also technology about share strong fast lead So if with system our this advantage things really you a case this but is design market performance we can will study, to and XXX%. in how nice centers, that

a don’t example, that all certainly over. know and they’ll go to if we repeat many it So good this is I times but well, look

Natalia Winkler

Thank you.

Gene Sheridan

Natalia. Thanks,

Operator

Your with the comes next Craig-Hallum. line of from Richard Shannon question

open. Your line is

Richard Shannon

bit and half is that understand second some your here like margins environment, but of that quarter, and do TSMC maybe from taking Hi, year. a as seems rest I gross if guys. margin second others. not for ask quarter better Seems caught quarter, accelerating is little here. only growing back it the would up correctly in like in my Gross gross the the Thanks a the the mobile being question would the in of progression question comments little year maybe it’s and first implicitly bit here I’m of second but to a bit well. it less like it taking a seems on on in more margins, going going costs kind be little

me you’re second that the gross structure talking maybe second about margin understand flow throughs and of the the kind half? So lead dynamics to help and the in cost mix both quarter

Ron Shelton

Ron. Richard, Hey, it’s Yeah.

reiterated the that about hasn’t changed. year so exiting So again we is the mid-XXs, the in margins way I think

a industrial be point. I EV, that be One margin, it this are that path. couple just there so one is of kind are drive margins drivers think so higher to into that and could on. that’s of could right, getting year other more But into generally diversification markets

products. The second transitioning is, next to generation

exit you that’s as in QX. that And be we’re we And QX. now, near-term so a and transition – bigger then the have seeing that would what fully and effect that in will happening see occurred that very will have

bit see little QX. you’ll a up And a of step so in

Richard Shannon

right? refers products, GaN that to especially And Ron,

Ron Shelton

Yeah. latter. The

Richard Shannon

Yeah.

question it’s that about market versus space about here. And when that a talk from is just crossover That maybe in Maybe Okay. been? cost the it’s silicon helpful. a in see then power spot can side, Where Gene a Maybe GaN you perspective, going? point? seeing where you’re mobile could also sweet and we might on for the you follow talk that from

Gene Sheridan

definitely, Yeah, Richard.

seeing before. In about up to up charger faster for ICs. Navitas’ your more general, In charger sweet more and and general, charging. the see GaN levels do means phone, we To multi you of only we’re into more that, means also we outputs, the talked trend So the it in pushing GaN particular, one one days the and your laptop. That power those for up the continue tablet, of not market output charger gone wants same when had you’re spot chargers, are certainly power. dynamics one your for

sweet the watts at into relatively that chargers XXX or in back at that XX are watts, launched spot of category in or you XX, we grows watts, up and up ultra XXX backlog into it GaN, so more XX value watts lot right even is the feeding again high in And significantly maybe those recovery higher. of percentage this modest in to end driving and call XX a GaN as growth watt QX a XX and the push short-term end were and fast space. up are XX of And where watt

about market see little you there, changes that as continuing but trend that and recovers. hopefully accelerating we bit more gives the No trends. a the color So certainly now

Richard Shannon

the for all Thanks start nice detail. Perfect. year, congrats And that That’s of on Okay. the me. for guys.

Gene Sheridan

lot, Thanks Richard. a

Operator

attending. questions further today’s for And this you conference no time. call. at are Thank There this concludes

may You now disconnect.

Navitas Semiconductor (NVTS) 15 May 232023 Q1 Earnings call transcript