Navitas Semiconductor Announces Third Quarter 2023 Financial Results

These and other risk factors are discussed in the Risk Factors section beginning on p. 15 of our annual report on Form 10-K for the year ended December 31, 2022, as updated in the Risk Factors section of our most recent quarterly report on Form 10-Q, and in other documents we file with the SEC. If any of the risks described above, and discussed in more detail in our SEC reports, materialize or if our assumptions underlying forward-looking statements prove to be incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that Navitas is not aware of or that Navitas currently believes are immaterial that could also cause actual results to differ materially from those contained in forward-looking statements. In addition, forward-looking statements reflect Navitas’ expectations, plans or forecasts of future events and views as of the date of this press release. Navitas anticipates that subsequent events and developments will cause Navitas’ assessments to change. However, while Navitas may elect to update these forward-looking statements at some point in the future, Navitas specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing Navitas’ assessments as of any date subsequent to the date of this press release.

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 Semiconductor, GaNFast, 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 NVTS

 

          
NAVITAS SEMICONDUCTOR CORPORATION 
CONSOLIDATED STATEMENTS OF OPERATIONS (GAAP) - UNAUDITED 
(dollars in thousands, except per-share amounts) 
          
   Three Months Ended  Nine Months Ended 
   September 30,  September 30, 
    2023    2022    2023    2022  
NET REVENUES $21,978  $ 10,243     $ 53,399     $ 25,594    
COST OF REVENUES (exclusive of amortization of intangibles included below)     14,878       9,852       33,322       18,655    
GROSS PROFIT     7,100       391       20,077       6,939    
OPERATING EXPENSES:                  
Research and development     16,553       11,526       50,740       34,373    
Selling, general and administrative     14,419       24,053       46,629       62,590    
Amortization of intangible assets     4,774       2,241       14,046       2,413    
Total operating expenses     35,746       37,820       111,415       99,376    
LOSS FROM OPERATIONS     (28,646 )     (37,429 )     (91,338 )     (92,437 )  
OTHER INCOME (EXPENSE), net:                  
Interest income, net     1,695       638       3,405       666    
Gain from change in fair value of warrants                       51,763    
Gain (loss) from change in fair value of earnout liabilities     34,473       (6,098 )     (25,503 )     112,162    
Other income (expense)     20       (74 )     50       (1,215 )  
Total other income (expense), net     36,188       (5,534 )     (22,048 )     163,376    
INCOME (LOSS) BEFORE INCOME TAXES     7,542       (42,963 )     (113,386 )     70,939    
INCOME TAX (BENEFIT) PROVISION     23       (10,135 )     (13 )     (9,862 )  
NET INCOME (LOSS)     7,519       (32,828 )     (113,373 )     80,801    
LESS: Net income (loss) attributable to noncontrolling interest           (238 )     (518 )     (238 )  
NET INCOME (LOSS) ATTRIBUTABLE TO CONTROLLING INTEREST   $ 7,519     $ (32,590 )   $ (112,855 )   $ 81,039    
NET INCOME (LOSS) PER SHARE:                  
Basic   $ 0.04     $ (0.24 )   $ (0.68 )   $ 0.64    
Diluted   $ 0.04     $ (0.24 )   $ (0.68 )   $ 0.58    
SHARES USED IN PER-SHARE CALCULATION:                  
Basic     175,103       138,455       165,719       127,390    
Diluted     185,626       138,455       165,719       140,134    
                   
                   
                   
NAVITAS SEMICONDUCTOR CORPORATION  
RECONCILIATION OF GAAP RESULTS TO NON-GAAP FINANCIAL MEASURES  
(dollars in thousands, except per-share amounts)  
                   
    Three Months Ended   Nine Months Ended  
    September 30,   September 30,  
      2023       2022       2023       2022    
RECONCILIATION OF GROSS PROFIT MARGIN                  
GAAP gross profit   $ 7,100     $ 391     $ 20,077     $ 6,939    
GAAP gross profit margin     32.3 %     3.8 %     37.6 %     27.1 %  
Inventory write-off related to discontinued products     2,024             2,024          
Other operational charges     122       172       122       172    
Reserves for write-down of inventory           2,833             2,833    
Inventory write-off related to purchase accounting step-up           539             539    
Non-GAAP gross profit   $ 9,246     $ 3,935     $ 22,223     $ 10,483    
Non-GAAP gross profit margin     42.1 %     38.4 %     41.6 %     41.0 %  
RECONCILIATION OF OPERATING EXPENSES                  
GAAP Research and development   $ 16,553     $ 11,526     $ 50,740     $ 34,373    
Stock-based compensation expenses     (6,013 )     (5,227 )     (20,137 )     (15,758 )  
Non-GAAP Research and development     10,540       6,299       30,603       18,615    
GAAP Selling, general and administrative     14,419       24,053       46,629       62,590    
Stock-based compensation expenses     (6,066 )     (10,547 )     (21,673 )     (36,378 )  
Termination of distributor     (483 )           (483 )        
Payroll taxes on vesting of employee stock-based compensation     (413 )     (154 )     (698 )     (154 )  
Acquisition-related expenses     (18 )     (5,442 )     (1,485 )     (5,442 )  
Other     (29 )           (105 )        
Non-GAAP Selling, general and administrative expense     7,410       7,910       22,185       20,616    
Total Non-GAAP operating expenses   $ 17,950     $ 14,209     $ 52,788     $ 39,231    
RECONCILIATION OF LOSS FROM OPERATIONS                  
GAAP loss from operations   $ (28,646 )   $ (37,429 )   $ (91,338 )   $ (92,437 )  
GAAP operating margin     (130.3 )%     (365.4 )%     (171.0 )%     (361.2 )%  
Add: Stock-based compensation expenses included in:                  
Research and development     6,013       5,227       20,137       15,758    
Selling, general and administrative     6,066       10,547       21,673       36,378    
Total     12,079       15,774       41,810       52,136    
Amortization of acquisition-related intangible assets     4,774       2,241       14,046       2,413    
Inventory write-off related to discontinued products     2,024             2,024          
Termination of distributor     483             483          
Payroll taxes on vesting of employee stock-based compensation     413       154       698       154    
Other operational charges     122       172       122       172    
Acquisition-related expenses     18       5,442       1,485       5,442    
Reserves for write-down of inventory           2,833             2,833    
Inventory write-off related to purchase accounting step-up           539             539    
Other     29             105          
Non-GAAP loss from operations   $ (8,704 )   $ (10,274 )   $ (30,565 )   $ (28,748 )  
Non-GAAP operating margin     (39.6 )%     (100.3 )%     (57.2 )%     (112.3 )%  
RECONCILIATION OF NET LOSS PER SHARE                  
GAAP net income (loss) attributable to controlling interest   $ 7,519     $ (32,590 )   $ (112,855 )   $ 81,039    
Adjustments to GAAP net income (loss)                  
Loss (Gain) from change in fair value of earnout liabilities     (34,473 )     6,098       25,503       (112,162 )  
Total stock-based compensation     12,079       15,774       41,810       52,136    
Amortization of acquisition-related intangible assets     4,774       2,241       14,046       2,413    
Inventory write-off related to discontinued products     2,024             2,024          
Termination of distributor     483             483          
Payroll taxes on vesting of employee stock-based compensation     413       154       698       154    
Other operational charges     122       172       122       172    
Acquisition-related expenses     18       5,442       1,485       5,442    
Reserves for write-down of inventory           2,833             2,833    
Inventory write-off related to purchase accounting step-up           539             539    
Gain from change in fair value of warrants                       (51,763 )  
Release of tax valuation allowance           (9,915 )           (9,915 )  
Other expense     9       74       55       1,215    
Non-GAAP net loss   $ (7,032 )   $ (9,178 )   $ (26,629 )   $ (27,897 )  
Average shares outstanding for calculation of non-GAAP net loss per share (basic and diluted)     175,103       138,455       165,719       127,390    
Non-GAAP net loss per share (basic and diluted)   $ (0.04 )   $ (0.07 )   $ (0.16 )   $ (0.22 )  
                   
                   
NAVITAS SEMICONDUCTOR CORPORATION  
CONDENSED CONSOLIDATED BALANCE SHEETS  
(dollars in thousands)  
            (Unaudited)      
            September 30, 2023   December 31, 2022  
ASSETS                  
CURRENT ASSETS:                  
Cash and cash equivalents           $ 176,698     $ 110,337    
Accounts receivable, net             17,573       9,127    
Inventories             15,904       19,061    
Prepaid expenses and other current assets             4,511       3,623    
          Total current assets             214,686       142,148    
PROPERTY AND EQUIPMENT, net             8,392       6,532    
OPERATING LEASE RIGHT OF USE ASSETS             5,950       6,381    
INTANGIBLE ASSETS, net             96,176       105,620    
GOODWILL             163,215       161,527    
OTHER ASSETS             5,501       3,054    
          Total assets           $ 493,920     $ 425,262    
LIABILITIES AND STOCKHOLDERS’ EQUITY                  
CURRENT LIABILITIES:                  
Accounts payable and other accrued expenses           $ 14,793     $ 14,653    
Accrued compensation expenses             15,487       3,907    
Current portion of operating lease liabilities             1,346       1,305    
Deferred revenue             13,759       486    
          Total current liabilities             45,385       20,351    
LONG-TERM LIABILITIES:                  
OPERATING LEASE LIABILITIES NONCURRENT             4,788       5,263    
EARNOUT LIABILITY             38,567       13,064    
DEFERRED TAX LIABILITIES             1,830       1,824    
          Total liabilities             90,570       40,502    
STOCKHOLDERS’ EQUITY:                  
Total stockholders’ equity of Navitas Semiconductor Corporation             403,350       381,132    
Noncontrolling interest                   3,628    
          Total equity             403,350       384,760    
Total liabilities stockholders’ equity           $ 493,920     $ 425,262    
                   




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