NVTS - Earnings call 3 2023 | Navitas Semiconductor Corporation

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

Operator

Good day, and welcome to the Navitas Semiconductor Q3 '23 Earnings Conference Call. [Operator Instructions] And finally, I would like to advise all participants, this call is being recorded. Thank you. I'd now like to welcome Stephen Oliver, Vice President of Corporate Marketing and Investor Relations, to begin the conference. Stephen, over to you.

Stephen Oliver

everyone. afternoon, Good Vice Oliver, Corporate and Marketing I'm President Relations. Investor Stephen of CEO, Third joining Gene Results President, Ron for you and Quarter our Sheridan, Co-Founder; CFO Shelton, Navitas Chairman, by Thank today Semiconductor's XXXX Treasurer. and joined Conference our and Call.I'm of be be available this ] XX [ available X for website on the and the will conference after this approximately following call, webcast call. recorded replay our approximately A hour webcast will days

call, Investor non-GAAP the section business financial directly is with included also website.Our are events Navitas, including Additional release of also the measures future our information on Relations in related of earnings on our to our our we quarter measures. posted Reconciliations financial or financial most forward-looking Relations includes performance non-GAAP GAAP website conference of Investor comparable will about these measures statements about release in make third the future and posted the acquisitions. this earnings section.In

XX-Qs. expect Navitas' words risks statements.Important Factors section forward-looking and you You to that in materially results to our differ statements business subject can could caution identify forward-looking are can or also we recent actual Risk such to in expressed and to by these Please from refer to forward-looking like uncertainties are factors factors our our terms. cause or that described differ that wish believe could in statements, include expectations our statements affect results from earnings actual We or events cause XX-K similar that we release. most

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

Eugene Sheridan

today. Thank for you, the and everyone thanks call joining to Steve,

legacy electrify technologies quarter our power power continue world display to silicon continue gallium Navitas we announce carbide record as accelerate for quarter-on-quarter of mission traditional new million, enable XXX% markets another electronics, nitride QX and to $XX pleased and markets.Our a margin XX.X% to I'm with and up to XX.X% silicon next-generation in our On our to As fourth QX also up up and a up in from the XX.X%, QX increased and to for from year. in revenues quarter increase XX% from last year. sequentially row non-GAAP basis, continued gross energy last

in will list. We stories more Deloitte, growth compared second by in we than XXX for revenues the company running for also was total confident remain Fast XXXX XXXX.Just double that year yesterday, their Navitas's recognized to as our including dramatic

annual the the Navitas companies. over just in increasing tech years, X,XXX% With revenue X is fastest of one growth

applications nitride higher for high high-speed faster system entering capability from traction power powertrains and density, markets for this feature-rich to costs. EV AI that breaks operation, and prevented can the higher decade.Now robust ceiling glass centers benefit from from inverters cool quarter In these higher benchmark at last protected, power addition most Navitas reliable a the GaN our launched platforms launching this in protection, With X the it's advanced year.Our as new highest world's of in GaNSafe time and semiconductors. financial exciting technology strong our lower has reliability, a high-power, efficiency, technology industry very reliability major solar data drives technology and we're half performance, gallium performance as second new power the GaNSafe to set and most charging

Generation designs turn X We current ICs switching power efficient, up and megahertz with devices, pumps off GaN small, sensing mobile these fast turn X chargers motors, most which components are are programmable GaNSense of enable IC replacing and to lossless quiet reduce integrated consumer half-bridge and and and compressors, adapters.For for in delivery. home on appliance footprint, feature application-specific our launching ICs, simplify frequencies our single dozens GaN X to also a Generation

carbide roadside also in This X up most range.The performance competition.Together, potentially power of to Fast a is kilowatt called and quarter better electric XX% generation exciting XX silicon are applications we GeneSiC than inverters, GaNSafe launching and called impactful Gen-X the Fast, technology are switching with and our vehicles, storage, new fourth bidirectional ICs Gen-X and energy industrial to breakthrough data chargers, center announcement GaN. a innovation the solar targeting

to quickly power similar allows count, ICs first cost while Now for and and the time, to many dramatically functionality to believe come other bidirectional potential multiple reducing motor delivering create the and GaN and this emerging directions. on innovative replacement the discrete nitride.We speed gallium energy currents of blocking conducting has in markets. of grid invention GaN architectures This transistors, more operate front. can topologies this Much efficiency providing advances the and both infrastructure, storage, in and up component and benefits drives complexity efficiently X across

market, led upside target we GaN strength each their Let Oppo, see impact.In with continue a our to broader chargers. already OEMs, age turn expanding new of me are and now mobile and they major by China updates Xiaomi markets and of having an use to for in as how mobile rapidly technologies the our are these their

models our Navitas the whole that announced among ramp. In mobile Galaxy from GaN at of to beachhead Samsung has This industry. mainstream.In revenue we already and is their latest GaN addition, QX power total fact, anticipate as GaN. utilize a about been charger a contributing QX milestone major just and other SXX is XXXX will win major XX% for adopted to to has we shipments now in our moved

the to in dozen GaNSense or accelerating further development, customer per observed, the new we more million over and already silicon targeting we solar Our half-bridge same that storage ramping Gen-X XXX success in year macro as business. revenue others segment year.In the our energy $XX projected watts mobile markets, is in of now fastest charging projects carbide softness observed have creating over our next for contribute market near-term headwinds have a

we and solar GaN a solar also and our see and from for various consistent expect MOSFET robust revenue in seen half displacement as story similar on analysts is It's market, customer based growth we've activity, are that the beyond. pipeline.Our XXXX with technology what a of second EV. the we customer IGBT, our the silicon recovery However, XXXX growth for to versus in silicon in current outlook carbide in our of in exceed industry and and legacy pipeline

market XXX-volt and We While development benchmarks significant which some completed OEM which customer by surrounding see have latest customer forecasts charger been Gen-X we platform, GaNSafe dramatic density. sets discussed a carbide increases Fast performance center, greater both our integrating more AI and in in our developments as are this higher previously, interest devices exciting centers all X.X demand created high significant power system unprecedented onboard in such new our technology silicon new energy design power, and hybrid chargers.Our tempered, cost. in efficiency, and density new platform both have experiencing EV recent just for data pipeline system achieved kilowatt industry onboard of efficiency roadside the and ICs.In

our programs silicon Titanium major twice designs.As customer significantly to projects applications are design with in X.X ICs carbide half-bridge AC to technology.As Our GaNSense quarter. and Gen-X XX%, silicon pipeline a is or and a of power result, power well of challenge to ICs that the industrial adoption draw appliance GaN efficiency density density legacy from higher-power the initiate The past system previous of as in application and our regulatory fast up the to GaNSafe requirements the consumer efficiencies OEMs improvements, the excess significantly new industrial Fast a earlier, to pipeline and with customer meet in really Gen-X DC markets. big silicon has also best-in-class pump heat gas-powered demand have energy XXX grown number for kilowatt mentioned heating systems with home optimized growing watt the in carbide and appliance of standard power center stepped design and has Plus for along addressing for transitions offers X,XXX platform cooling energy

Looking AI all renewables, target GaN forms conversion by transportation carbide across accelerating amplified benefits of tailwinds.These to and and from include of and electric power edge the fossil the are secular intent fuels all energy in demands gas-powered markets, electrical vehicles computing. from of long-term silicon rapidly storage transitioning to our system derived

] provided displacement years its Navitas's immune exhilarating technologies markets, come. to efficiency to we growth and as market noise silicon and markets the and by market technologies exceed for in enabling expect regulations.While traditional GaN momentum to revenues slowdowns to in we're carbide rates continued some energy not Additional and energy XXXX [ is and [indiscernible] in far

financial the Day at new special you Directors, review immersive an exciting Torrance, electrified applications our and You about Investor presentations to new in-person our technology in future new Board management Navitas December markets, Planet in-depth the pipeline of important team, financials. our day a customer guests our in encourage our at customer deep highlighted to in headquarters can dive the conjunction growing includes held this XX.This insightful into join agenda opening planet.We California with Ron and media growth review, on our to over hear Navitas, event.And for X platforms, now plans outlook, headquarters introduction more of to customers,

Ronald Shelton

our the then In XX% through charger sequentially driven walk The guidance, continued primarily today, through my the Gene. outlook year-over-year onboard will the X million. of comments for well fourth XXXX growth customer. and you, in initial market quarter some Tier we're of our by quarter was for you production results, mobile market you dynamics third the mass and a again was strong in and above Thank I'll quarter third growing XXX% our to and beat $XX.X seeing.Revenue I take first major

and the factors strong to Our impacting term for macroeconomic high-end long-term. and positive tempered indicators solar by continue over growth consumer revenue results were markets.Nevertheless, somewhat we near see

experience and to continues the fully evidenced fourth new a pipeline grow as strong has continue quarter and bookings nearly booked. we added to entering by record, Our

like the third expense of I'd release will to from reconciliations you I press to refer non-GAAP earlier our to GAAP Gross non-GAAP margin quarter today.In the commentary, the expenses, increased in XXXX addressing XX.X% my and to in measures. Before to leads quarter due the margins industry. XX.X% internal refer to the our in yields the the second already of targets, believe exceeding which we Gross excellent quarter our higher XX.X% in primarily quarter were end the of XXXX. second in guidance of at rest

growing we've in operating of this business together, from third R&D our $XX.X as in expense guidance. was as And total million comprising loss operations a of million of revenue million, were as the we all $XX.X SG&A in our operations investing expenses to a quarter discussed scales, compared million past, is XXXX. with Putting the $X.X from disciplined Third $XX.X $X.X are we the loss quarter focus manner million.This in in on the line profitability. and of

old and inventory XX% over We expect higher cash quarter and XXX.X this our count for was performance like on end prior strong Cash very to Our the generations reflecting $XX.X times $X to days midpoint, product GaN currently million. we goal million X We higher for million, during reserves to efficiency.Inventory quarter GaNSense fourth continues other sales X against move high products ranging equivalents the XXXX quarter we $XX.X of growth the ]. an compared quarter and $XX.X inventory GaNSense our but million the than focus the was balance our higher customers adjustment migrate of improved were quarter the days million the million continue for million third third to year $XX.X outstanding XX% as declined fourth no ago towards the at to that and in million of integration and $XX Gen compared turnover over weighted during of and and the prior as increase At represents quarter, markets were an average exceeding improve, sales revenues capital receivable better in we $XXX.X levels million to X $XX debt. quarter. expected [ and remains X from end in of Control.Moving It $XX.X working better quarter, of shares.Turning to by continue our XXX% the towards sheet. as share the carry million substantial to recorded on XXXX. with to between liquidity. continue year-over-year guidance sequential quarter, Accounts took outlook to of nearly we

our gains have and Our guidance to midpoint continued consistent over is of indicated based year. plus for amortization that are note our or the be points. EV expected and In expected invest markets. silicon continue $XX of mobile this XXX% capacity intangible approximately and XX.X% at for like this in assets.We non-GAAP fourth stock-based Gross market margins to carbide XXXX, excludes what at in quarter initiatives total, on charging.I'd minus continued with fourth onboard the we operating end compensation the share for will expenses expansion growth-oriented improve and to revenues XX XXXX guidance, beginning also quarter million, the approximately to basis in our strength of ongoing to is which is in increased

the at the XXXX, be shares to least fourth we to the approximately comp XX% before, to guidance same our to expect to we long-term closing, in based we of continue count outlook.While immune impact indicated as approximately on fourth $XX results will near-term for intangible expenses be over expect substantially our others, to markets, and In growth our revenues grow average in stock-based have and of revenues the XXXX, that perspective, trends amortization in entirely we as period.For compared we consumer solar with business quarter assets increases expect the operating share at extremely our $X.X trends. fourth XXXX higher of be are are the the quarter interest of XXX%, guidance, similar in our be we those midpoint on approximately yet grow are high-end as million in expected we As put To of quarter rates million only and the the in our less our to XXX leverage see to pleased such million. see macro model. we quarter weighted of than spending and

than outperform we that are to will the our we in faster overall going continue results targeted let's and session. market that the begin expect can showing significantly we indicate, growth forward markets.Operator, the our end rates grow As Q&A

Operator

question comes & line Bolton your [Operator of from Needham Quinn Instructions] first of And Company.

Quinn Bolton

detail results. or might SiC you're to and What on direction lot platforms, end GaNSense, are markets you sounds targeting? you're it markets some platform us Congratulations target the new for these X but kind the specific these platforms of if on most do Are going the markets end Gen-X GaNSafe, guess targeting? platforms be to more the the I address maybe, give us just like kind wondering of a each bidirectional? there of end for give able Gene,

Eugene Sheridan

Yes. Great GaNSafe and Fast power, the industrial question, more Quinn. Gen-X targeting are both carbide higher silicon Yes, markets.

industrial such huge mechanical and very the in might discussing and be on which products -- data semiconductor thing, go we're So be mobile them the AC launching at could AC center, maybe It X energy in and and XXX It still next into. is displaced industrial storage, targeted we'll the to GaNSense be half-bridge being Generation as breakers it markets. platform, all from so in watts. launching general, into very GaNSense the a are anything that's and debating actual solar reliable. technology see appliance announcement, groundbreaking that just EV power we're you'll different newest. the consumer It's others. motors, going Bidirectional range, the circuit applications half-bridge fast, fourth the very to GaN, could year.And very higher ones, XXX markets watts by a efficient,

far exploring pretty it's that further products customers we'll launch and with year. reaching, as be the we next So

Quinn Bolton

-- what's be can guess I it I a to you And unique in of more sort to the Fed, that concept be tends bit developed? least nature, so little helpful. would on a color a new I Just bidirectional at little in wanted right? more bit bidirectional what ask bidirectional. the question thought you've GaNSafe give detail of about

Eugene Sheridan

definitely. Yes,

the be a and can problems not flowing are blocking bidirectional of power current. The So bidirectional in number current. semiconductors the

block in or have IGBT super directions whether carbide, back in silicon, So put both them you to have you'll be a GaN truly or that existing back. requires able an junction with, even it's a to circuit if you to silicon

be can the while vice current one [ ] one So direction, the flowing other in and blocking versa. one's

only we're the chip. energy back-to-back, and speed even efficiency of performance back-to-back get same math And with you actually if the performance of a replacing end be you works out, up monolithically if ] X fraction but could same size, kind performance single nitride. and components.And you of way the for the So want gallium with for the it want single -- cost all chip a you this doing great doubling with performance not the up [ the

Operator

next Your line of Equity from of question comes Charter Research. the Jack Egan

Jack Egan

] come So epi throughput regarding kind carbide set the epitaxy, trade-offs of the of silicon with for epi [ in-sourcing of uniformity. of different types in reactors regarding a

epitaxy. So and does give and to or from you just I yields Or like bottlenecks or control in-sourcing any quality rationale largely anything just was throughput improve it your primary more developing? curious increase in-sourcing for prevent about actually Was that?

Eugene Sheridan

Yes, great question.

you cost a touched of number I on I right? there's think I put most them, think one. But number just benefits, of

times, rule that chain, are advantage there's fundamental give of a exactly and to then shorter future, has I are in-house of epi. this assuring the in help ourselves equipment out number one bit controlling the got we over it. going to the cycle X this when outsource that do and the we other benefits, cost it that that's we in reduction intellectual the done control we've top matured point your us little think a in-house. having of compared for from epi industry even epi different supplier, capacity need supply buying bunch property, to to I can bring expert suppliers.So is But wouldn't it things, And others secondary hired quality, we've coming the likely with inventions having capability from think a

Jack Egan

that million at $XX the And growth of your to ICs, Or product new GaNSense that areas? of expected revenue. for contribute of some expense annual they're older said some come all in Is might to the incremental? PR that the

Eugene Sheridan

actually all question. clarify, $XX throughout it's a I ramp annualized great starting next million that believe Yes, that do incremental. is year. to it's I'll

it year. -- is the sampling few the also launching developing quarter. emerging wouldn't $XX So this things. But it this for product necessarily million be just months in the started and full We've last

expect those over So we to numbers time. grow

Operator

the comes line from Stanley. question of next Your of Moore Joe Morgan

Joseph Moore

I wondered Maybe China. smartphone if demand. starting you could touch your on with

much of is stand strength you market you versus that penetration you think kind recovery that do there? in the and you for mentioned inventories a think there. You where with do How guys of

Eugene Sheridan

and upside QX It pleasant and strength. to in Joe. a definitely. smartphone started gone based X we highlighted. this us our Yes, be of started heavily to Thanks, from with them, of has year very We GaN. Yes, sort in China. strength very obviously is Xiaomi for continues and relationship of strong the are high Oppo share had that with traditionally market both a very

So your this super see where technology a of it's upside.To exciting about grow that to of We have to any displacement nitride. though use shift case their have dramatically. question their classic chargers are that coming to don't of it's actually total They numbers it this of from, for next kind year, chargers gallium is today. mentioned number more we to XX% we projecting

charging if but going be legacy revenue.So think silicon second you that's it gallium of the of SXX, from adoption rates it's also as powerful, We just over to a China. we're not half is I more great already having revenue displacement growth the driving could faster to Samsung conversion XX% success with XX%, efficient, or at just well. XX% lot mention So their nitride. driving a even that did more was And flat, business or from of XX% lot

Joseph Moore

Can and I of SXX a win. did follow-up, be just talk the about within kind pervasive penetration about that might ask I And could there you as how see want Samsung? to what technology you --

Eugene Sheridan

the but with will, you years they're have Samsung Oppo leading We and like adoption GaN mobile of for Clearly charge, few been adoption think stuff Oppo. Yes. have specific do Xiaomi stage, I kind we and earlier on started. got Xiaomi charging the don't percentages for the last since if

optional in Korea is being or adoption least inbox. footsteps, if you perspective.It So I an following believe, and those their U.S. -- other at in an a sold will, we see from the players as GaN inbox

attach you inbox call SXX, be the optional when go promoted believe very, from to charger, the especially I a rates very which buy we on it's fast charger, that when [indiscernible] what our GaN here. even is So high, experience, can as

Operator

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

Jonathan Tanwanteng

offset high-end negative your that This you quarter, saw plan? you interim slowdown to and your you bookings where a is other you versus to in expected on Would -- near business new net just say places consumer. it be? term being these mentioned by guys some solar, that's in for Or particular compared market that

Eugene Sheridan

Yes.

thanks, We haven't -- John.

quarters and that in slowdown consumer in there's but our than no adverse We strength both impact, didn't and strength done pipeline our some the growing, of we're we we see we see have doubt that the for projects. in today haven't higher see we quantified if even growth near-term achieving other solar.With number markets, could in rates said, customers in

we So cases, despite growth market, there our is some out kind faster the prepared in of a and mixed rates significantly as market in slowdowns in [indiscernible] growing we remarks. end than mentioned environment see

probably to year.We but haven't growth I mixed think to environment speaks early despite or translates choppier given kind an there. more guidance, growth indication, market of that strong the as next a out official that XX%

Jonathan Tanwanteng

it Is versus to should Or how help that mentioned just something entering be what existing booked. fully comment, booked. And to me QX we capacity? Ron, understand your about then, fully you that means qualify

Ronald Shelton

Yes.

capacity So booked, effectively available, look say fully just we I simply, for very revenue it's as our quarter reference when fully the at end, outlook booked. our

So beginning was any most in quarter. of of backlog would suggest the the I gave guidance that that at

Jonathan Tanwanteng

comment ]? And to Gene to the you the going past then capacity follow-on how improve drive just mentioned growth do the forward a that just in -- [ that that,

Eugene Sheridan

grab could Yes, that I one.

mentioned into increase big That year. includes in year, in XXX% So last for late a agreement even next was is that's and we capacity, early that fab obviously an it and signed deal X-FAB year, material year capacity. this with maybe this we a throughout

capacity it year backlog, growing TSMC capacity and that So quarter-by-quarter way, as the year.In this that by growing throughout a we're tripled next not today Ron appreciably GaN and said, up year. expanded only last finished one similar by our benefiting

strong So fill. we're in position to a pretty

we're fact, GaN short very all In build times. can lead on keep but capacity, the coming the building have with shipping -- well, we that not orders as we in don't we're

QX. scrambling try So to those demands we're to and upside QX fulfill constantly in

Operator

next Nederman Quinn from [Operator Bolton line Your the comes of Company. of question Instructions]

Quinn Bolton

just had the liability follow-up. The all I over a quick to seems earnout be place. jumping

it I think the quarter sheet $XX down was balance $XX-something quarter. million on million last this to

you help of Just be is us we as into outlook think kind mean as wondering if acquisition, what's able GeneSiC the that the about liability that as the to Or might be GeneSiC should liability GeneSiC comes down? earn-out outlook does what negatively liability the -- that for down, comes reading we that affected? revenue

Eugene Sheridan

Quinn, question. Yes, good

as earnout there acquisition, the as that a earnout of but an with ran. we're was past of GeneSiC the point clarification, period the where part deal, Just

liability So and goes sheet IPO. what you that our actually see liability on on today, based back stock to earnout up the And down the balance goes earn-out price. that

GeneSiC with and earnout do is it the related only IPO. to So has nothing an the acquisition to to related

Operator

next Lipacis Jefferies. of question the line Mark comes Your from from

Mark Lipacis

couple Clarification a of -- questions.

question the a mobile So about strength. the

like sounds interpretation for that bottom. product you or lines growth broader seen and to is yet a you Is of bounce your accurate haven't customers, an inside you this of your the it off qualifying start up of were handsets what penetration expanding mobile? expansion, in So that

Eugene Sheridan

a of couldn't total -- to GaN. a about in better -- adoption much from silicon are shipments the their main there bottom -- conversion where Yes, shipping silicon certainly they're course, significant or from actually charger conversion mobile it's to talk Xiaomi of how we're or a be overall, might the is position but beneficiary I and probably Mark. and clearly question, quote Oppo, It's driver. good

it's factor hard for Gan clearly, our me ICs. to from the to the predominant over X, legacy but So quantify conversion is silicon

Mark Lipacis

fair that And kind of is of I fair? through the is here. quarter? your stride to guys it linearity are like that really bookings mean, because you that ramped And sounds hitting it assume you've

Eugene Sheridan

could by you clarify? mean linearity Or you do What maybe?

Mark Lipacis

XX, think XX, are ramping as you X/X, that what quarter, total or XX bookings bookings if you about have like could the or quarter. XX, Well, could your the XX, something X/X, for ramped XX it X/X through have

Eugene Sheridan

fair historically continue think to heavily we lead don't of short ton pretty they orders, said, quarter I certainly like time give be it's you get notice. Ron the as I to up, from while advance mean I booked also a more mobile say, upside mentioned But Yes. guys started we -- we especially we'd sort of and to the linear.

apparently in everything back these in just early faster. time, we're also the on coming So ramp orders building quarter within kind putting of the quarter to of to can when the upsides up cycle we of some in that's are because pressure us try

Mark Lipacis

acquisitions Could Ron, going like much so, sweet in about about if And kind talked for you the feel then, what appetite And is would the to you -- you of you balance. How further you have do forward? company? spot? balance need cash cash on the talk your sheet to run

Ronald Shelton

the beyond have on Good consistent cash, Well, enough Yes. cash balance Sure. run and to question. the to clearly, been execute breakeven we our business markets, sheet that, equity raise transaction a need operating capital we've would before.I have and think acquisition. and to with respect debt as certainly such our talked an or the to be approach epi expansion to about that tied

about So we and sheet today, though, no really with we cash, where feel the good balance debt. stand

being capital, working with capital, we're with much CapEx. certainly working efficient better with think being our efficient I

with comfortable it certainly sheet balance today. we're and sits So where the

Operator

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

Kevin Cassidy

if able in just news And substrates coming question, wafers, with But late, I down of a And costs the little lots the call on I'm results. mentioned margin also, great the then have the that press silicon And on is a repeating came in there's helping that? I your tripling carbide capacity come benefit apologize. Congratulations TSMC? to Are so down expansion? from you've as gross about price. you

Eugene Sheridan

Yes.

out I coming with and places mean what think I the TSMC we think industry. on it's I are right. GaN of people an throughout we're environment other whole where certainly a driver. saw dealing cost increases,

see that reversing So I dramatically, quickly. that don't

I think costs are reasonably stable.

stable. prices are think reasonably I

big into translates margin gross it think don't I So jumps.

epi we I pricing share with cost also rates growth to approach. use power going capitalize talked think for is yield continue with we've to one as talked example. about, we're reductions, said, to to in-house yields to bit the than generally a drive can a market always general as our where try even X. committed about.We're that balance The But obviously, on adoption we getting Ron and great the margin that expected and expansion the we that plans better is great and better continue

Kevin Cassidy

have new to And I guess major be accretive? X you platforms that margin are I that tech all would assume going

Eugene Sheridan

exactly. new going are valuable like corporate Yes, and that highly these, to average bringing especially whatever expect well at the ones We any margin accelerating time. delivering our generally is expansion above margins big the products, up, that in margins be we're

Operator

question next Jack from Charter Egan of the Equity Your Research. of line comes

Jack Egan

was on -- of quick But thing? in see -- that of I'm one-time obsolete you had see just be how curious that I things one. one just a have become that risk I the the that quarter. technology how just your also write-off on with about Or of like curious Was it your some obsolescence moving that's there's just I thoughts the kind inventory implying fast could that. some could so quickly. products? pretty

Eugene Sheridan

Yes, Jack, it. and question, you nailed good

for question the answered You me almost.

X, our and our Gen And of So try that's you [ now. right customer to, had as to moving to take over happening quickly is balance generation do products, generation and on against base, very and that do beyond And with to want them Gen of thing to Gen X, the books, as it. ] X we hard product make we write-off product. older -- and X older had months.We -- some so this what ended to transition, is quarter the right a out we the up Gen XX reserve the and do, it's look XX next to kind

So it's evaluate thing But again, a it's every it. products. drove that's those something And what quarter. one-time we against

it's in a about So products. next really gen transition

Operator

to us. no joining there thank [Operator Instructions] presentation, are all thank and you like for for now our questions, further And This today's concludes today's speakers as I conference. would

may disconnect. You now

Navitas Semiconductor (NVTS) 9 Nov 232023 Q3 Earnings call transcript