Navitas Semiconductor Announces Second Quarter 2023 Financial Results

About Navitas

Navitas Semiconductor (Nasdaq: NVTS) is the only pure-play, next-generation power-semiconductor company, founded in 2014. GaNFast™ power ICs integrate gallium nitride (GaN) power and drive, with control, sensing, and protection to enable faster charging, higher power density, and greater energy savings. Complementary GeneSiC™ power devices are optimized high-power, high-voltage, and high-reliability silicon carbide (SiC) solutions. Focus markets include EV, solar, energy storage, home appliance / industrial, data center, mobile and consumer. Over 185 Navitas patents are issued or pending. Over 100 million GaN and 12 million SiC units have been shipped, and with the industry’s first and only 20-year GaNFast warranty. Navitas was the world’s first semiconductor company to be CarbonNeutral®-certified.

Navitas, GaNFast, GaNSense, GeneSiC, and the Navitas logo are trademarks or registered trademarks of Navitas Semiconductor Limited and affiliates. All other brands, product names, and marks are or may be trademarks or registered trademarks used to identify products or services of their respective owners.

Contact Information

Stephen Oliver, VP Corporate Marketing & Investor Relations ir@navitassemi.com

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NAVITAS SEMICONDUCTOR CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS (GAAP) - UNAUDITED
(dollars in thousands, except per-share amounts)
         
   Three Months Ended  Six Months Ended
   June 30, June 30,
    2023    2022    2023    2022 
NET REVENUES $18,062  $8,611  $31,420  $15,351 
COST OF REVENUES (exclusive of amortization of intangibles included below)  10,572   5,026   18,445   8,803  
GROSS PROFIT     7,490       3,585       12,975       6,548  
OPERATING EXPENSES:                
Research and development     16,791       9,522       34,186       22,847  
Selling, general and administrative     13,151       13,993       32,209       38,537  
Amortization of intangible assets     4,773       84       9,272       172  
Total operating expenses     34,715       23,599       75,667       61,556  
LOSS FROM OPERATIONS     (27,225 )     (20,014 )     (62,692 )     (55,008 )
OTHER INCOME (EXPENSE), net:                
Interest income, net     806       52       1,709       28  
Gain from change in fair value of warrants     -       -       -       51,763  
Gain (loss) from change in fair value of earnout liabilities     (32,224 )     54,854       (59,976 )     118,260  
Other income (expense)     20       (785 )     31       (1,141 )
Total other income (expense), net     (31,398 )     54,121       (58,236 )     168,910  
INCOME (LOSS) BEFORE INCOME TAXES     (58,623 )     34,107       (120,928 )     113,902  
INCOME TAX (BENEFIT) PROVISION     (96 )     270       (35 )     273  
NET INCOME (LOSS)     (58,527 )     33,837       (120,893 )     113,629  
LESS: Net income (loss) attributable to noncontrolling interest     -       -       (518 )     -  
NET INCOME (LOSS) ATTRIBUTABLE TO CONTROLLING INTEREST   $ (58,527 )   $ 33,837     $ (120,375 )   $ 113,629  
NET INCOME (LOSS) PER SHARE:                
Basic   $ (0.35 )   $ 0.27     $ (0.75 )   $ 0.93  
Diluted   $ (0.35 )   $ 0.26     $ (0.75 )   $ 0.87  
SHARES USED IN PER-SHARE CALCULATION:                
Basic     165,606       124,030       161,086       121,827  
Diluted     165,606       132,132       161,086       130,882  
                 
                 
                 
NAVITAS SEMICONDUCTOR CORPORATION
RECONCILIATION OF GAAP RESULTS TO NON-GAAP FINANCIAL MEASURES
(dollars in thousands, except per-share amounts)
                 
    Three Months Ended   Six Months Ended
    June 30,   June 30,
      2023       2022       2023       2022  
RECONCILIATION OF GROSS PROFIT MARGIN                
GAAP gross profit   $ 7,490     $ 3,585     $ 12,975     $ 6,548  
GAAP gross profit margin     41.5 %     41.6 %     41.3 %     42.7 %
Non-GAAP gross profit   $ 7,490     $ 3,585     $ 12,975     $ 6,548  
Non-GAAP gross profit margin     41.5 %     41.6 %     41.3 %     42.7 %
RECONCILIATION OF OPERATING EXPENSES                
GAAP Research and development   $ 16,791     $ 9,522     $ 34,186     $ 22,847  
Stock-based compensation expenses     (6,947 )     (3,037 )     (14,124 )     (10,531 )
Non-GAAP Research and development     9,844       6,485       20,062       12,316  
GAAP Selling, general and administrative     13,151       13,993       32,209       38,537  
Stock-based compensation expenses     (5,624 )     (7,999 )     (15,607 )     (25,831 )
Acquisition-related expenses     (215 )     -       (1,467 )     -  
Payroll taxes on vesting of employee stock-based compensation     (40 )     -       (285 )     -  
Other     (76 )     -       (76 )     -  
Non-GAAP Selling, general and administrative expense     7,196       5,994       14,774       12,706  
Total Non-GAAP operating expenses   $ 17,040     $ 12,479     $ 34,836     $ 25,022  
RECONCILIATION OF LOSS FROM OPERATIONS                
GAAP loss from operations   $ (27,225 )   $ (20,014 )   $ (62,692 )   $ (55,008 )
GAAP operating margin     (150.7 %)     (232.4 %)     (199.5 %)     (358.3 %)
Add: Stock-based compensation expenses included in:                
Research and development     6,947       3,037       14,124       10,531  
Selling, general and administrative     5,624       7,999       15,607       25,831  
Total     12,571       11,036       29,731       36,362  
Acquisition-related expenses     215       -       1,467       -  
Amortization of acquisition-related intangible assets     4,773       84       9,272       172  
Payroll taxes on vesting of employee stock-based compensation     40       -       285       -  
Other     76       -       76       -  
Non-GAAP loss from operations   $ (9,550 )   $ (8,894 )   $ (21,861 )   $ (18,474 )
Non-GAAP operating margin     (52.9 %)     (103.3 %)     (69.6 %)     (120.3 %)
RECONCILIATION OF NET LOSS PER SHARE                
GAAP net income (loss) attributable to controlling interest     (58,527 )     33,837     $ (120,375 )   $ 113,629  
Adjustments to GAAP net loss                
Total stock-based compensation     12,571       11,036       29,731       36,362  
Acquisition-related expenses     215       -       1,467       -  
Amortization of acquisition-related intangible assets     4,773       84       9,272       172  
Payroll taxes on vesting of employee stock-based compensation     40       -       285       -  
Gain from change in fair value of warrants     -       -       -       (51,763 )
Loss (Gain) from change in fair value of earnout liabilities     32,224       (54,854 )     59,976       (118,260 )
Other expense     56       785       45       1,141  
Non-GAAP net loss   $ (8,648 )   $ (9,112 )   $ (19,599 )   $ (18,719 )
Average shares outstanding for calculation of non-GAAP net loss per share (basic and diluted)     165,606       124,030       161,086       121,827  
Non-GAAP net loss per share (basic and diluted)   $ (0.05 )     (0.07 )   $ (0.12 )   $ (0.15 )
                 
                 
NAVITAS SEMICONDUCTOR CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(dollars in thousands)
            (Unaudited)    
            June 30, 2023   December 31, 2022
ASSETS                
CURRENT ASSETS:                
Cash and cash equivalents           $ 177,748     $ 110,337  
Accounts receivable, net             15,153       9,127  
Inventories             18,895       19,061  
Prepaid expenses and other current assets             4,291       3,623  
Total current assets             216,087       142,148  
PROPERTY AND EQUIPMENT, net             7,255       6,532  
OPERATING LEASE RIGHT OF USE ASSETS             6,150       6,381  
INTANGIBLE ASSETS, net             100,847       105,620  
GOODWILL             163,215       161,527  
OTHER ASSETS             5,600       3,054  
Total assets           $ 499,154     $ 425,262  
LIABILITIES AND STOCKHOLDERS’ EQUITY              
CURRENT LIABILITIES:                
Accounts payable and other accrued expenses           $ 17,683     $ 14,653  
Accrued compensation expenses             6,708       3,907  
Current portion of operating lease liabilities             1,403       1,305  
Other liabilities             10,158       486  
Total current liabilities             35,952       20,351  
LONG-TERM LIABILITIES:                
OPERATING LEASE LIABILITIES NONCURRENT             4,919       5,263  
EARNOUT LIABILITY             73,040       13,064  
DEFERRED TAX LIABILITIES             1,829       1,824  
Total liabilities             115,740       40,502  
STOCKHOLDERS’ EQUITY:                
Total stockholders’ equity of Navitas Semiconductor Corporation             383,414       381,132  
Noncontrolling interest             -       3,628  
Total equity             383,414       384,760  
Total liabilities stockholders’ equity           $ 499,154     $ 425,262  
                 




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