NVTS - Earnings call transcript Q2 2024 | Navitas Semiconductor Corporation

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Operator

Thank you for standing by. My name is Kat, and I will be your conference operator today. At this time, I would like to welcome everyone to the Navitas Semiconductor Second Quarter 2024 Earnings Conference Call. [Operator Instructions] Thank you. I would now like to turn the call over to Stephen Oliver, Vice President of Investor Relations. ahead. go Please

Stephen Oliver

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

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

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

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

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

Eugene Sheridan

half the which prior and end markets. Gallium revenue pleased of million slowdown increase compared legacy our to XX% the the guidance first announce semiconductor of us thanks am end and top chips. XXXX at nitride carbide to you from of of to I to Steve, a revenue continue despite all completes silicon joining today. most for share QX year, silicon $XX.X with nearly in take Thanks,

offer GaN in the reliable, in and business performance, customer most at designed ICs power to GaNSafe world. extraordinary is qualified major the X device drive markets protected continue into and our now XXX most or and Our end different regions an over industry pace. GaNSafe around projects, spending being highest all new

performance an Fast Generation customer to carbide exceed XXX Our power our creating efficiency latest combination improved by set carbide now our also expectations compared for already that of and costs. the chargers The pipeline. additional power in energy projects demonstrated GaNSafe own our performance, has silicon and prior XX% systems centers generation, AI and X efficiency, density, onboard in next-gen over technology which are and has leading fast silicon EV thermal industry new standards, and and Gen-X of data system even terms industry's

servers market and pace. kilowatts. next per power continues even to GPUs, X Ultra or total NVIDIA's kilowatts further those our evolve are Hopper With a we give up XXX XX the levels The even targeting XXX years. exciting With to of and me in being Rubin, rack. data center are Grace XXX kilowatts Let and pushed Blackwell, in markets. XX required specifics of at target to Traditional each rapid AI power a

by leading industry power The correction with XXX to factor kilowatt to carbide power rapidly the XX% the end data Gen-X industry per portion Our Fast system DC and targeting platform with newest X.X XX the has efficiencies the with and new recently design GaNSafe of center X.X energy watts kilowatts, end of technology to expanding back AC in platforms or focused challenge from benchmarks centers X.X year. supply up in the server X.X stepped X front inch. power on our end densities kilowatts to announced to PFC nearly of silicon to the combines LLC section set cubic

has As doubled faster a result, our than months our in X the Day Investor segment data in center other and grown pipeline rapidly last has any since December.

data XX wins design we're announce in Now, development, over to with projects QX. center customer pleased in another X

operate In at a efficiencies. innovation from with design moderate Traditional PFC major addition, announce technology our excited low to I'm system center. frequency circuits

their Our an center to PFC higher switching pipeline, technology X efficiency our we method, customer will Blackwell PFC translates in additional see and X.X patent retrofit includes growth we of soft over is the immediately and higher novel is strong over vehicles, that customers months. In attractive Ultra circuits, costs. segment pending XXX frequency and for innovating which XX% and savings, peak designs, kilowatt integrated for with kilowatt is our implement be unlocked team densities data our in which platforms X customer largest Blackwell pipeline. to XX% coming the control projects for that while This high designs available electric power has our with by and energy a now X.X the section and

total continues for wins XX% with customers and strong dryers, robotics, while applications. higher of care heat QX, customer total production revenues a XX industrial which We're energy design with on year, beyond ramp automation span solutions the December, XX of Our washers, to refrigerators, segments start or with major in start the XX% industrial growing kilowatt in next projects compared XXXX wins expected charger applications, million latest customer new has of enables first savings, to HVAC, stated that we year GaN both a across production in leaders, seeing and track the new contributed carbide new customer on be QX will well includes comparable $XXX EV onboard appliance design charging by we're appliance platform our XXXX. The silicon power X Xx ramp in wins to end and of platform, which this XX strong X pipeline next expected lighter to top including pumps, to market. XXXX. These Xx interest, in hair and the strong XX regions, and faster diverse density,

the rates solar XXX XX with storage projects a for power, and over the experienced related While due technologies, systems. higher customer over slowdown addition their higher to to for as last microinverters are residential industry inverters, higher on energy voltage interest displacement in months, silicon carbide significant we working string GaN

strong X in wins customer the We top announce XX with another pleased of QX. the to continue players design engagements are majority and solar

increase U.S. in growth ramp smartphones, next markets of We year. first major percentage their GaN the notebooks are across continue microinverter chips. silicon charger in OEMs also revenue GaN progressing GaN well for half and adoption fast in of major mobile continues based portfolios power all the to over tablets a as legacy

Oppo last GaN be Xiaomi such customers expected and is the call, this in in XX% year. as adoption discussed As to

up this by Following adopted truly fast bringing another the reduction. our by during XXX now we for wins QX, to total designs, time with watts, SXX XXX XXX achieving charging. XX% charger watt saw resumed Overall, chargers to over and and XXX and Lenovo XXX Navitas remains the for fast QX in again GaNFast #X XX market size in Dell, Z PC portable, deliver event, announce phones, are again experiences fast Z production FoldX, launches, design to the and to July's charger mobile fast use GaNFast Galaxy phones, and for new FlipX, and Galaxy all pleased the light, Samsung's for that as laptop, revealed Galaxy fast, technology in consumer. Growth Unpacked Navitas charging series SXX A

our to continues silicon XXX end costs guidance, Our to portfolio applications, gallium discuss our by and of never power leading-edge new design, sodium with manufacturing been now energy me I'm play financials. for to important the with applications that, major projects. GaNSlim pipeline, growth our technology. With results and Chao QX pipeline, to new launches. Electrification over pleased our pure at across CFO, XX turn GaN and high system only lower well-positioned GaNSlim and company as savings customer many technology semi and the integration, it targeting the more methods is over our grow served design Overall, market appliance. the low-cost and with mobile, home increases Navitas consumer Janet compared under watts with customer ease-of-use nitride have enabling new let significant next-gen combined wins the carbide of with

Janet Tao Chou

XXXX comments I first walk grew you the quarter In to today, in through quarter take financial for will second my quarter. Revenue you, second then of Gene. and year-over-year $XX.X XX% you the outlook third our through Thank I'll results million. our

traction in energy-efficient of While as was demonstrating smaller, factors and faster, experiencing quarter, charging we others continue consumer end technology, in our second our we similar are the the our more in significant business macroeconomic mobile gain as to benefits of strong certain applications. mobile markets,

non-GAAP second expenses of SG&A as my strength commentary, to business. Gross earlier XX.X% Adding I'd demonstration our expenses mobile the refer relatively sequentially of is million, efficiency. will on was of $XX.X of to to expenses, XXXX, to quarter second see continue loss the like product the XX.X%. margin at operations R&D margin today. of comprised was compared second operating release addressing Total were reconciliations million a press operating due quarter this we in second you expenses XXXX million. $X of the Before in $XX.X GAAP XX.X%, expense rest together, flat In from to for was our non-GAAP quarter quarter This the sequentially the the measures. part down in all to Gross refer I $XX.X and of to market good from million. that mix, focus

for million second Our the count weighted quarter XXX average share was shares.

the cash quarter carry liquidity. It million of strong and we equivalents debt. with very Turning to and balance $XXX continue levels end to at sheet. no were high remains Cash

accounts prior $XX.X $XX.X from at to $XX.X good inventory million quarter. we million. While the made quarter, compared the prior relatively to $XX.X progress In million on receivable million in reducing was flat

our continue to Our goal is working capital. improve to

to of be quarter expected expect the represents XX% plus XX on more than the we to quarter, currently revenues guidance basis this a for for growth X%. midpoint, sequential minus or the $XX minus Gross approximately or Moving plus of At million XXX,XXX. third third is points. margin

As continues mobile more the market to near-term. lean towards the mix our in

compensation supporting We markets. In and cost and We're operating in this as efficiency intangible expected excludes the expenses expect our non-GAAP in margin we and keeping total, possible, growth recovery margin million stock-based $XX.X assets. quarter higher as as third while align our to of optimize improve approximately flat initiatives. structure, amortization be our our improvements will demand are our expenses with

let's profitability. Operator, includes be third improvements This session. pleased the quarter we expect the performance, in growth working with positions second to XXX scale begin approximately shares. In our and the progress capital. weighted average which business For in million share to count long-term us quarter expense and our towards of good Q&A closing, XXXX, we're management well

Operator

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

Ross Seymore

but I Gene, what you're on a that the knows wanted trends. more importantly, to and slower ramps, far in on little a for is has seeing an the market the company-specific in seeing I'm color pushouts, of going as really update lot everybody what been you of get rebound some would pull-ins the any side great? markets, those how be end end your And Any macro visibility as are ramps?

Eugene Sheridan

Ross. for the question. bet. You Thanks

outlook. that I pushouts the to choppy the with fundamental long-term mid news and to market pretty delays. our we're think That's not is today seeing good

onboard late 'XX. We're softer that on area volume, In silicon appliance really chargers. with in and and focus but carbide market's see pleased industrial, near-term, XX prepared remarks, medium-term, in across fact, highlighted We 'XX the the all continues new growth with around segments. though a pipeline, the not GaN to the only even in wins. little grow, us, EV, with That's for design into a as especially I

These mentioned, and I still probably a more I 'XX. Even the close hardest market months, as getting to of care that XX hit machines, in solar, in that's is takes an that which them refrigerators, in on washing been think even we've broad-based has highlighted. a but launch. one. heat all-time it's about, as track 'XX, -- Quite GaN high, dryers, for those talking pretty we're pumps last little now Hair the ramps. longer, as a I few big

one microinverters, commercial on projects. in enterprise we of a and for general. Coming design win highlighted X. on from course, highlight inverter still But year, about I Next AI position many terms in for doubled continues us, the got it of silicon we it's wins segments carbide in base, XX quarters. GaN we beachhead to QX, talked data now X of see moving a side. XX string number QX, centers now the smaller of more into the in X And with but to customer also as

really in overall remarks. that not of to revenue those my those So with in this and too next appreciable power grow meaningful continues trends. sort be talked It's starts strongly year we year, to like but increases about I the

So all I over that our strength, upsides encouraging. a percentage of to well, that's highlight is become don't near-term. the of in But mobile as smaller position where the it not stuff's consumer that's pretty certainly because we're away just pipeline that go will seeing time. going

Ross Seymore

That's very helpful. either guess follow-up, or just one you I for my Janet.

through, the margin more when accretive, a the gross the could attain? time. that over Gene do are meaningful And takes? wins or but On start that went year gross are How the or margin most company gross start margin them design think built-in of we puts targets aspirational of way? over do to what's in to think I side, company-specific think when those ramp you you those next just X you about the kind going being think

Janet Tao Chou

Ross, your for thank you question.

take first add And me Let that. Gene more color. can

gross seeing very Last in is revenue. than is the half momentum Our mix. mobile. mobile less We're heavily going strong year, margin on dependent of on

year, more year-to-date, half. than mobile Now this is

margin can to lot been of of down, time, But We've kind a with suppliers same negotiate the drive improvement. our we're we everything margin that's at diluted. So work price. doing doing to

gross EV, markets We're demands target above. see As the ramp those will and in to industrial, like start XX% very of improvement. higher we committed up to margin long-term solar, still margin or margin

Eugene Sheridan

are. Ross, what's add of coming earlier to and I mix, the to the your pipeline, relate to customers, We kind price these know what to we're that, just points market if 'XX winning in We back them. And it Yes. pricing question, know and we're those 'XX.

to mix-based as adds approach. said that Janet it's confidence a that So our market

other in short-term I good corporate feel we and at to -- even mobile if that it the higher, realistic and being about model, being the where think, overall driving obvious the the below markets, While consumer average long-term, continue for to we're in about about be. practical needs that reasons, margin long-term confident not average

targets. that's a puts think those So in I place, good comfortable margin we reiterating that why we're us and

Operator

Curtis Your with question next from the comes Blayne line Jefferies. of

Blayne Curtis

kind or of and I I follow-up to are else declining just quarter, are Ross's seemed was everything non-mobile in it out, guess, the flattening wanted understand, want look was just the I as they businesses Last, on June question. to mobile kind growing still like correcting. to of other you September?

Eugene Sheridan

we're by from a we've on Yes. what say yes, We At don't break I is, time, it pretty a in sequentially percentage, on now up by which say further would growing upsides and But guided. line, small top last consumer, I was we mobile still market. it solar down as QX bit same helpful the seen the particular quarter and can where is quite into year. is

revenue that pretty gross versus on So are a percentage of started. stable I and is bit. the EV, of But things solar enterprise and between a others, industrial, consumer, course, seen mobile margin We've a just that's as think really getting probably I think the trade-off appliance one. skewing

point just X ramping those a we're programs. Here's as

that's see So across improvements. pluses the markets how of and the and the sort I'd minuses margin

Blayne Curtis

and Helpful. solar. kind long-term, data appliances, center, X mobility the And you the outside I'm of segments look the of EV, kind -- curious just of mobile as between

could kind year, kind earliest? Just X. see is curious contribute some end one this into you you next of mean, of you see those Which or the I'm curious. revenue think the even that And of building. can year? just pipeline I mostly will do the between

Eugene Sheridan

carbide industrial. SiC We're into into GaN EV appliance into already already shipping shipping shipping and and We're silicon solar. Yes.

ramping So appreciable those, first half going layering going carbide ramping we've by next base each of of second for GaN be but to year in time a we're 'XX. volumes solar first of in year. Both new this going of in growth. 'XX, silicon end business and the GaN the the GaN into in time got into ramping, EV production for in

but sort time driven other year. design layering the the last when So product GaN largely in in out higher power just we availability, new And from different times. of by products are they're and at all those launched

Operator

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

Quinn Bolton

coming level to I comment believe consensus. about year, below growth think with start, guys for quarter but wanted guess full the sort seemed where 'XX if out. in rate feel I a might I'm to XXXX sure I And the guide XX% to comfortable trying you last in The to September not growth it's rate you of of a like year. you're looks set for willing just come on

Eugene Sheridan

QX, formally growth now year. a rates feel QX, next didn't formally good good guide, sequentially moderated that it's yet. a giving year, this not good but going QX certainly still outlook important from obviously Yes. growth a QX. and about but We QX growing into from X% feel growth We guiding it. We're about guide feel anticipated formal Obviously, certainly to rate about is albeit not going

continue we'll color up. So I'd by offer commentary say But to go of would quarter-by-quarter. kind the I that's

Quinn Bolton

Got of taking clear guys it have But longer either it. just feel near-term, And us given it's delayed customer take or pipelines. really some to inventory are new on customer maybe the you good then projects projects engagements, before detail those some like does off. the

the that own, you no of of delayed out which gives kind growth accelerates year? at in see us these got pushed or but your a give And time, think so subject the other you're getting couple in commentary of markets mobile? turn activity, beyond trends, -- fault to backlog? like Just I I'm feel you customer to what wondering, questions, about confidence maybe of any do next some besides can is the you bookings you've starting

Eugene Sheridan

Yes.

is of the pockets solid. said, see Inventory near-term encouraging. correction, definitely stable we those I think as inventory we quarters improving. backlog short-term channel, but That's coverage for in to

not encouraging. we appreciable any the I that's or So think, then projects pushouts delays track. saw And on staying don't certainly cancellations. seeing pushout, or

orders the the are And some other inventory or higher in. and are I on day, at be schedule, closer comes on end until those at things of you volume? get ultimately can launch less time, they but production the don't down coming that they Customers actual So backlog coverage the think points it encouraging. XX% XX% volume about volumes. But to you of are those can know launching are

we're in of want to just market. cautiously ourselves this don't but get choppy So ahead optimistic,

Quinn Bolton

it. Got

like sounds those factor rather the fluctuations maybe be it projects that it's in So out. volumes biggest more swing production pushing may than

Eugene Sheridan

Yes, obviously on as that's as exactly. programs. new programs much is And running it on

So summary point. good that's a

Operator

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

Jack Egan

So what curious of power challenges the a to I'm are one bit on level power I increase industry for had as center. high to the supply. the a of level data biggest

and power something for aspirations you've more So kilowatts and themselves the to becomes, supplies, they so And chips X.X without XX kilowatts limiting breaking are if recently have them pole long then from those or going talked wondering else. then to to can power the the handle the When eventually. if X mean, in it the design, tent? product whether developing guess, what about basically it's I it chips more they can comes follow-up. power for themselves down? a Is X.X I'm the I factor I server

Eugene Sheridan

Yes.

chips. come it for question of speed down switching the And the and power good does really the a That's Jack. bet, You to sure. efficiency

the or mechanicals, the in coming capacitors. size filters, to power the also transformers, and you get actually are case size, efficiently, passive carbide gallium the When the mechanical components, same the pack in of PCBs. shrink, switch and the faster you're size, the can silicon other shrink only not to they more allows the inductors shrinking they nitride chips you down If size to speed more

mechanical shrink and heat. come worry so got is gallium carbide. And same of the you've speed to time, about silicon At going from the nitride the to

smaller pack one. that's And the space critical if you don't more the improve efficiency. other heat You have a why to is efficiency into

less targeting us anybody hard see pushing doing about titanium standard in let talking efficiencies which That's up else loss, GaN about compared talked and you'll alone So hit -- carbide that X the power frequencies now points XX, silicon, XX% to space. pushing of We bigger, for is efficiency. silicon XX% constantly or really actually up. to

switching And my traditionally slow you is in The So why efficiency the power speeds wanted gallium efficiency. correction that's speed you really X XX% that key. wanted. but circuit. The point mediocre efficiency, team back. and that as all fact it which might silicon at we highlight a deal, remarks energy nitride pushes circuit high been big in holding not I deal running PFC as architecture PFC when in or traditionally, to invented factor is speeds. and us a are that still carbide, And about that's has our another savings is add new for a Even PFC get at does big higher

X And it's those power more rack that's in what So ultimately, we're server and the efficiency, nailing supplies. individual tray power things. going lot a speed or deliver or to take, same to size

Jack Egan

much That's now? are you of silicon it. Could gallium nitride? pretty or helpful. -- still that all XXX to projects go converter maybe fair pipeline wins about you most Got for electric over those in is DC-DC assume DC kind -- are them And or of And it by the of really in engaged versus then carbide wins. then vehicle the

Eugene Sheridan

Silicon the biggest carbide Yes, used. good what's That's part most been the of commonly question. flow. has

you're XXX focus volt to carbide. going silicon much battery If car, an on you're pretty exclusively

have start the to you option volts, an XXX you're between X. If

have Now of But that oriented. Today, very we strategic I'd pipeline the viable on onboard say it focus becomes majority EV silicon has a is GaNSafe, Navitas a option. chargers, the carbide to includes DC We're a OBC, as discharging in as inverters, traction traction also which of charging converter, at look motors. DC taking battery the implied. as you well the the the

the That's big exciting to about and motor and what not on that focus. XXX step-by-step electric is most we and from We're roadside forget kilowatts. kilowatts. to XXX% a are to that at hear about push can XX to EV kilowatts, that carbide megawatt of more X going XXX, role that's you're is So leading very Tesla us question. And silicon third traction chargers customers working the even category with out the chargers. today, more or not is XXX, opportunity, play charge motor. And entirely XXX

of buckets described. with I kind you silicon at in look a So majority as X those towards carbide

Operator

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

Kevin Cassidy

good Congratulations in results. named you X on and Last quarter, the you design had -- had center XX the pipeline. wins data

said to this You was kind new Are million wins? going going in to million that that $XX to drive $XX be additive pipeline? these to Is you the of XXXX. entire including that, in or were

Eugene Sheridan

certainly the to grow XX but not expected continue maybe the than and a jumping totally to little from We Yes. out we XX, pipeline of expected, line. up to is better

guidance any change wouldn't It'll very material and year. be certainly next next for I year. a So ramp significant expectation or for

Kevin Cassidy

have lot competitive you little idea if data a how Maybe competition. got it if you attracting -- what say are Okay. do seems are for the be? designs about landscape, because to percentage an your new screening of you happening that centers a efficient talk would power. that of the XX power can Can bit And of you've be and the wins, design of more more

Eugene Sheridan

very go Not competitively, time. high alone, high high power, revenue, challenging total more it's The of XX let in current, of all But these higher actually is opportunities which you when in customer converted to are power, to takes environments. the even use discrete temperature them Yes. the wins, to GaN pipeline. course,

why you about GaNSafe, specifically into these unproven lot power GaN block, XX high in discrete GaN, to they it if Also, the is it's you years to the IC, circuits, world. go lifetime. XX lot the reliability and protected GaN unprotected it's safest think high took a of new technology, GaNs, which calling a integrate value. these the to And is on protection, brings last new kid time our power a in applications, expected GaN, are So applications, most of the we

there of significant competitive everything. we're So all win competition. is gives going And to that advantage. us to say Not

versus discrete GaN versus GaN our silicon GaNSafe. debate can ICs or You

really We increasingly in we also have PFC silicon carbide used where I there. do circuit, the think being well

and Navitas. I see don't competition. for from the Especially wins landscape having think our that Fast about, I strong that has share And you'll step-by-step, second GaNSafe X changed. silicon certainly stage talked I generation of there's the So market think strong carbide. combination

For course, to also bring these power system design customers density their and out the first of the our that center, but technologies market, stage, most to the get speed time and, helps maximize of efficiency. which to

I think well. So see change major of that's competitive all I play the going to to any landscape. don't

Operator

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

Joseph Moore

guess on data with you partner it is of providers? about up Just customers, that with the center. talk following When ODMs? us you are a you I on working work the -- sense it that. hyperscalers, give Is is the chip who

Eugene Sheridan

Yes. Definitely, Thank Joe. you.

others. of guys overall to rack Those into take supply like then AcBel, Chicony, Compuware So many the LITEON, the power are integration we ship hyperscalers companies and going China, then supply companies level sort into and and data power supply those makers, go ultimately that and the system predominantly in the do power and into Taiwan Delta, aggregator. ship are the the it who at center

which over from we're I learning to kind there's the curve, system make work be we're really are is but a mentioned XXX to marching requirements. clearly we're that's and Alibaba call Probably that's So the in to in process, and of ] comments to doubling design I the in towards going. requirements and XXX Google, directly Azure future And of XX rack future talking Asia that number to try sure mentioned about get our but of those NVIDIA power and the with companies coming to flow. to And Increasingly that of [ those that keeps those the steps XXX. that AWS power, a we center ahead not themselves what to easy, understand going goal. to power that supply

Joseph Moore

have Okay, great. Are from in in just competition companies you're China, you competing against? GaN? but then Just I anything center, bigger talk competitive dynamic you anything in acquisitions think who seeing competition data GaN? you from the done changed generally And can the talked more who in of about the context powering

Eugene Sheridan

Yes. solar, and due higher concerns, appliance it's of to it. it center, of each EV, trying the complexity, power about get even be My to these challenged GaN, comments to GaN increasingly industrial, to data power higher segments, GaN apply performance reliability going and out is most discrete whether broadly where

our power I applications discrete this last all time think of new that about was didn't industrial GaN. even than bidirectional we higher in more That's opening That's differentiated areas. talk for but well So up quarter some Also something GaN. technology. all plays these did of GaNSafe's

So the get in just as GaN, and wins. more our again, market that's position going ICs bidirectional more in I strengthen no think and with landscape. change competitive the then and our GaNSafe to we

Operator

comes from CJS line the question with Jon Securities. of next Your Tanwanteng

Jonathan Tanwanteng

where urgency you products look the deltas more I be maybe bit and bit forward? wondering -- out. was But real momentum get if and of on maybe the get commentary get are markets pushouts a may production momentum the or that or feeling maybe I a lack color factor What's and the you the swing no Gene, design end a are little customer little -- more more uncertainty give volumes. little momentum, as which to

Eugene Sheridan

we still solar I And nice some of consumer, firmed we're seeing wins say mobile got sort notebooks how upsides also Jon. area. while nice in the mentioned there. is Definitely, and the Yes. mentioned that some up I has

percentage other, pipeline, let's of That kind If seems it's solar. of softer industrial. of and EV you say percentage the still than look revenue, at

year, of of GaN as is as be rate commented the into the The program. came much going those first pretty I earlier mentioned, that continues others a revenue As stable, solar, pipeline. on to stable time course, year, one down next mix positive for many -- in as seem microinverters schedule and as in growth on the committed,

are those see of So and across markets. sort those I how pluses minuses the

Jonathan Tanwanteng

there's spending to a talking you Got might capital And it. more. be conversation I volumes maybe the market down your or of should market And like of the there end data a there's delays. kind that users rumors expecting lot the bit returns, was customers. in what down over the AI now of been if with recent have of you're little could consternation and your filters chip center investor of the AWS or There's any market to that if and you you that that wondering been delay? address be they kinds into pipeline the a you disruptions told

Eugene Sheridan

Yes, supply didn't like a Tanwanteng, steps that brought because to hyperscaler, number of to chain, to of glad the actually for power switching requirements of that about to sort up got connect a integrator I'm to to rack we the chip it's capital, smaller One, bit from supply anticipate you cost going benefit or us. to challenge complicated bring have and speed size, would efficiency. power we chain. Also down future trying more due even the in to another supply pack I power to up to earlier

things. data cost we're power center. supply to at is right The you expensive cost And guys, those biggest feel of the cooling now, we -- they're getting numbers when center. ship because actually other one with data the not are density electricity pretty trying And keep just Those a start the you get at start the are benefits supply power for the up you Those requirement. the paid power efficiency, reducing like then reducing big. the the second higher in of

it's down hyperscalers field, I time. understand truly throughout of still to of come that real and I articulate But message and line that'll we're integrators that and is deeper thermal supply the think and of all new opportunity new chain. understanding technology, cost value the a all out a GaN, So think kind this the out over there's building getting of the a the benefits, rack better electricity cost benefits. help And the

Jonathan Tanwanteng

you the to higher as kilowatts fair higher say these a won't go into charge Difficulty] maybe able conceivably as for per keep where rack, competition [Technical up it margin that you could Is be to

Eugene Sheridan

do. we Yes,

to In these anything, they're when don't about worry fact, if like, guys, cost. the we talk

to efficiency. need the You deliver

You need to deliver the thermals.

the need You to power. deliver

down -- the But obsession. the not chain. down that seems supply. their They're supply the be still to guys they're Now, buying power

here. get entire going out But time. to help grow with That said supply that So we expectations, we throughout to course, the long-term that got as earlier. adds value got to real over message this our we've margin confidence value chain. of It'll our is us

Operator

with Richard Instructions] Craig-Hallum. [ Shannon next from [Operator Your line comes the of ] question

Richard Shannon

last is you And XX Most been in said, new interesting Gene, the had one think mine have this that was of you GaNSlim. answered you called call, thing about here. conference here, product talked But I projects.

Now, in big said the got mostly press today, you pickup, although see it's consumers. mobile you release XX, is which pretty I a

how up expect my guess of that pretty mobile So the question take and there. that I interest to can market? is, do most from over I fast why you see But fast consumer picking you're

Eugene Sheridan

it's didn't it new -- on a spotlight is price cost up of silicon to consumer clearly much We that appliances, there new bringing even lot but emphasis else everything XX more put accelerating It's ones. the than And which exactly those I with not on. sector, right. level. Thanks just longer. put going That's mobile more appliance We growing on be because it taking and all going system opportunities, see wins. now with in already definitely creating opening Yes. sensitive opportunities. up a just GaNSlim But you're opportunities, for the pretty effective didn't strongly takes big up. at going

really in opening charging I power, promising. hit yes, markets. correctly. watts no could of markets lights. your XXX watts, TV, XXX think fast existing even it where share powering a LED new limit those under GaNSlim And even kind on So, right? us is helping up are lot the there's markets, you all It's it So mobile of is to powering go. or grow

that for there and So mobile good of across out target a watts consumer sub are GaNSlim. lot and XXX there's a applications

Richard Shannon

I asked charger Okay. question chargers attach going visibility into level getting more have is rate next you've and getting years visibility That's last year. you in here. you that think above year as question that that Gene. adoption. helpful this, introductions for, have into is then perspective, a phone curve, through mobile. breakpoint up major you power as into calls asked here doing with seen think moving the here go any or get again, you been next on to over as be Getting of this kind people increased many I've quarters the an curious My But

Eugene Sheridan

you're bringing XX kind When small. about watts, the of Richard. for already that We've XX talked past up, being Thanks it's a down in pretty it's sweet it up, case watts, spot. Yes. XX mostly around watts lot and plastic in

there's So of a for lot not GaN. leverage

it, play do you're can but of a point. at kind You that cost

phone quite on very for actually a charging we're tablet value is experience. and fast consumer and laptop. very fast for watts that improving obviously XX a charging a So focused or

XX charge in to If talked Chinese, and easy, players Xiaomi, you look out have fast, even We been to Oppo, super is which across watts aggressive major the Vivo, phone, fast XXX watts minutes. the about there, and X% higher, XXX X go watt. to it's others a to that XXX%

crazy are There's those an industry others suppliers numbers, we no China levels higher these continue is going. particular wouldn't. these So at believe are whole that and power but of where would indication the reason to in be

product of are own They I to coming. have conservative think their own their development. I sort think roadmaps. those approach others have But

just American or XX you means away now pushing in If range, Koreans which players, if a XX the mainstream tipping watt point, you range, XX watt from step you're that the look watt across the X and will. they're

the I watt, to the charge that not to and ultimately, until tiny your going all we're from watts charger. going continue. into higher superfast So that range. trends And devices consumer is we multiport XXX Everything -- think going really XXX keep watt one are can up see XX done

Operator

comes question line the next with your Jack Charter of Egan And Equity from Research.

Jack Egan

one. I had just

given So pace adjusted or internal going expansion expansion epi? your guys lower with it the ahead this on full carbide you the at overall some have kind just the is TAM the just of for all, steam internal of the SiC of epi still the capacity, growth year, expectations silicon of

Eugene Sheridan

Yes. No, you're Jack. exactly right,

adjusting the markets for bring reactor immediate there growth was slower the first not rates, online. to need With pressing, that

it put we So hold. on

We and X it benefits year those it $XX we manufacturing of expect to cost a a and when we bring it originally enhancement investments was years, one announced get million about. strategic talked When ramp reactor can we year. over next online margin sort

shifted has year that you and X need. upon assume So can the market say probably plan about market fair by the to based outlook

Operator

Ladies and our that call. concludes you and all session gentlemen, today's for joining. Q&A Thank

disconnect. now may You

Navitas Semiconductor (NVTS) 5 Aug 242024 Q2 Earnings call transcript