Navitas Semiconductor Announces Record Fourth Quarter and Full Year 2023 Financial Results

These and other risk factors are discussed under Part 1, Item 1A “Risk Factors” section in the Company’s annual reports on Form 10-K, and other SEC reports. 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 250 Navitas patents are issued or pending. Navitas was the world’s first semiconductor company to be CarbonNeutral®-certified.

Navitas Semiconductor, 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  Year Ended
  December 31,  December 31,
  2023   2022   2023   2022 
NET REVENUES$26,058  $12,349  $79,456  $37,943 
COST OF REVENUES (exclusive of amortization of intangibles included below) 15,069   7,341       48,392       25,996  
GROSS PROFIT   10,989       5,008       31,064       11,947  
OPERATING EXPENSES:              
Research and development   18,087       15,945       68,825       50,318  
Selling, general and administrative   14,923       15,763       61,551       78,353  
Amortization of intangible assets   4,774       4,499       18,820       6,913  
Total operating expenses   37,784       36,207       149,196       135,584  
LOSS FROM OPERATIONS   (26,795 )     (31,199 )     (118,132 )     (123,637 )
OTHER INCOME (EXPENSE), net:              
Interest income, net   1,964       721       5,368       1,387  
Gain from change in fair value of warrants                     51,763  
Gain (loss) from change in fair value of earnout liabilities   (8,285 )     9,547       (33,788 )     121,709  
Other income (expense)   33       67       84       (1,147 )
Total other income (expense), net   (6,288 )     10,335       (28,336 )     173,712  
INCOME (LOSS) BEFORE INCOME TAXES   (33,083 )     (20,864 )     (146,468 )     50,075  
INCOME TAX (BENEFIT) PROVISION   (505 )     (12,950 )     (517 )     (22,812 )
NET INCOME (LOSS)   (32,578 )     (7,914 )     (145,951 )     72,887  
LESS: Net income (loss) attributable to noncontrolling interest         (789 )     (518 )     (1,026 )
NET INCOME (LOSS) ATTRIBUTABLE TO CONTROLLING INTEREST $ (32,578 )   $ (7,125 )   $ (145,433 )   $ 73,913  
NET INCOME (LOSS) PER SHARE:              
Basic $ (0.18 )   $ (0.05 )   $ (0.86 )   $ 0.55  
Diluted $ (0.18 )   $ (0.05 )   $ (0.86 )   $ 0.51  
SHARES USED IN PER-SHARE CALCULATION:              
Basic   178,780       152,416       168,927       133,668  
Diluted   178,780       152,416       168,927       145,743  
               
               
               
NAVITAS SEMICONDUCTOR CORPORATION
RECONCILIATION OF GAAP RESULTS TO NON-GAAP FINANCIAL MEASURES
(dollars in thousands, except per-share amounts)
               
  Three Months Ended   Year Ended
  December 31,   December 31,
  2023     2022     2023     2022  
RECONCILIATION OF GROSS PROFIT MARGIN              
GAAP gross profit $ 10,989     $ 5,008     $ 31,064     $ 11,947  
GAAP gross profit margin   42.2 %     40.6 %     39.1 %     31.5 %
Inventory write-off related to discontinued products               2,024        
Other operational charges               122       172  
Reserves for write-down of inventory                     2,833  
Inventory write-off related to purchase accounting step-up                     539  
Non-GAAP gross profit $ 10,989     $ 5,008     $ 33,210     $ 15,491  
Non-GAAP gross profit margin   42.2 %     40.6 %     41.8 %     40.8 %
RECONCILIATION OF OPERATING EXPENSES              
GAAP Research and development $ 18,087     $ 15,945     $ 68,825     $ 50,318  
Stock-based compensation expenses   (6,669 )     (4,096 )     (26,806 )     (19,853 )
Non-GAAP Research and development   11,418       11,849       42,019       30,465  
GAAP Selling, general and administrative   14,923       15,763       61,551       78,353  
Stock-based compensation expenses   (5,549 )     (7,056 )     (27,222 )     (43,435 )
Termination of distributor               (483 )      
Payroll taxes on vesting of employee stock-based compensation   35       (438 )     (663 )     (592 )
Acquisition-related expenses   (2 )     (2,640 )     (1,487 )     (8,082 )
Other   (105 )     (22 )     (210 )     (22 )
Non-GAAP Selling, general and administrative   9,302       5,607       31,486       26,222  
Total Non-GAAP operating expenses $ 20,720     $ 17,456     $ 73,505     $ 56,687  
RECONCILIATION OF LOSS FROM OPERATIONS              
GAAP loss from operations $ (26,795 )   $ (31,199 )   $ (118,132 )   $ (123,637 )
GAAP operating margin   (102.8 )%     (252.6 )%     (148.7 )%     (325.8 )%
Add: Stock-based compensation expenses included in:              
Research and development   6,669       4,096       26,806       19,853  
Selling, general and administrative   5,549       7,056       27,222       43,435  
Total   12,218       11,152       54,028       63,288  
Amortization of acquisition-related intangible assets   4,774       4,499       18,820       6,913  
Inventory write-off related to discontinued products               2,024        
Termination of distributor               483        
Payroll taxes on vesting of employee stock-based compensation   (35 )     438       663       592  
Other operational charges               122       172  
Acquisition-related expenses   2       2,640       1,487       8,082  
Reserves for write-down of inventory                     2,833  
Inventory write-off related to purchase accounting step-up                     539  
Other   105       22       210       22  
Non-GAAP loss from operations $ (9,731 )   $ (12,448 )   $ (40,295 )   $ (41,196 )
Non-GAAP operating margin   (37.3 )%     (100.8 )%     (50.7 )%     (108.6 )%
RECONCILIATION OF NET LOSS PER SHARE              
GAAP net income (loss) attributable to controlling interest $ (32,578 )   $ (7,125 )   $ (145,433 )   $ 73,913  
Adjustments to GAAP net income (loss)              
Loss (Gain) from change in fair value of earnout liabilities   8,285       (9,547 )     33,788       (121,709 )
Total stock-based compensation   12,218       11,152       54,028       63,288  
Amortization of acquisition-related intangible assets   4,774       4,499       18,820       6,913  
Inventory write-off related to discontinued products               2,024        
Termination of distributor               483        
Payroll taxes on vesting of employee stock-based compensation   (35 )     438       663       592  
Other operational charges               122       172  
Acquisition-related expenses   2       2,640       1,487       8,082  
Reserves for write-down of inventory                     2,833  
Inventory write-off related to purchase accounting step-up                     539  
Gain from change in fair value of warrants                     (51,763 )
Release of tax valuation allowance         (10,754 )           (20,669 )
Other expense   72       (45 )     126       1,169  
Non-GAAP net loss $ (7,262 )   $ (8,742 )   $ (33,892 )   $ (36,640 )
Average shares outstanding for calculation of non-GAAP net loss per share (basic and diluted)   178,780       152,416       168,927       133,668  
Non-GAAP net loss per share (basic and diluted) $ (0.04 )   $ (0.06 )   $ (0.20 )   $ (0.27 )
               
               
               
NAVITAS SEMICONDUCTOR CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(dollars in thousands)
          (Unaudited)    
          December 31, 2023   December 31, 2022
ASSETS              
CURRENT ASSETS:              
Cash and cash equivalents         $ 152,839     $ 110,337  
Accounts receivable, net           25,858       9,127  
Inventories           23,166       19,061  
Prepaid expenses and other current assets           6,619       3,623  
Total current assets           208,482       142,148  
PROPERTY AND EQUIPMENT, net           9,154       6,532  
OPERATING LEASE RIGHT OF USE ASSETS           8,268       6,381  
INTANGIBLE ASSETS, net           91,099       105,620  
GOODWILL           163,215       161,527  
OTHER ASSETS           5,328       3,054  
Total assets         $ 485,546     $ 425,262  
LIABILITIES AND STOCKHOLDERS’ EQUITY              
CURRENT LIABILITIES:              
Accounts payable and other accrued expenses         $ 26,637     $ 14,653  
Accrued compensation expenses           10,902       3,907  
Current portion of operating lease liabilities           1,892       1,305  
Deferred revenue           10,953       486  
Total current liabilities           50,384       20,351  
LONG-TERM LIABILITIES:              
OPERATING LEASE LIABILITIES NONCURRENT           6,653       5,263  
EARNOUT LIABILITY           46,852       13,064  
DEFERRED TAX LIABILITIES           1,040       1,824  
Total liabilities           104,929       40,502  
STOCKHOLDERS’ EQUITY:              
Total stockholders’ equity of Navitas Semiconductor Corporation           380,617       381,132  
Noncontrolling interest                 3,628  
Total equity           380,617       384,760  
Total liabilities stockholders’ equity         $ 485,546     $ 425,262  




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