Navitas Semiconductor Announces Third Quarter 2024 Financial

Navitas Semiconductor Announces Third Quarter 2024 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, 2023, as amended in our Form 10-K/A, filed with the SEC on July 23, 2024, 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, celebrating 10 years of power innovation 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 AI datacenters, EV, solar, energy storage, home appliance / industrial, mobile and consumer. Over 250 Navitas patents are issued or pending, 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, 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 Investor Relations
ir@navitassemi.com

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,
		2024			2023			2024			2023
NET REVENUES	$	21,681		$	21,978		$	65,324		$	53,399
COST OF REVENUES (exclusive of amortization of intangible assets included below)		13,069			14,878			39,207			33,322
OPERATING EXPENSES:
Research and development		17,828			16,553			57,028			50,740
Selling, general and administrative		15,040			14,419			46,509			46,629
Amortization of intangible assets		4,717			4,774			14,265			14,046
Total operating expenses		37,585			35,746			117,802			111,415
LOSS FROM OPERATIONS		(28,973	)		(28,646	)		(91,685	)		(91,338	)
OTHER INCOME (EXPENSE), net:
Interest income (expense)		(39	)		47			(109	)		1,298
Dividend income		1,210			1,648			4,251			2,107
Gain (loss) from change in fair value of earnout liabilities		9,171			34,473			42,920			(25,503	)
Other income		26			20			140			50
Total other income (expense), net		10,368			36,188			47,202			(22,048	)
INCOME (LOSS) BEFORE INCOME TAXES		(18,605	)		7,542			(44,483	)		(113,386	)
INCOME TAX PROVISION (BENEFIT)		125			23			256			(13	)
NET LOSS		(18,730	)		7,519			(44,739	)		(113,373	)
LESS: Net loss attributable to noncontrolling interest		—			—			—			(518	)
NET INCOME (LOSS) ATTRIBUTABLE TO CONTROLLING INTEREST	$	(18,730	)	$	7,519		$	(44,739	)	$	(112,855	)
NET INCOME (LOSS) PER SHARE:
Basic	$	(0.10	)	$	0.04		$	(0.25	)	$	(0.68	)
Diluted	$	(0.10	)	$	0.04		$	(0.25	)	$	(0.68	)
SHARES USED IN PER SHARE CALCULATION:
Basic		184,672			175,103			182,551			165,719
Diluted		184,672			185,626			182,551			165,719



NAVITAS SEMICONDUCTOR CORPORATION
RECONCILIATION OF GAAP RESULTS TO NON-GAAP FINANCIAL MEASURES - UNAUDITED
(dollars in thousands, except per share amounts)

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
		2024			2023			2024			2023
RECONCILIATION OF GROSS PROFIT MARGIN
GAAP Net revenues	$	21,681		$	21,978		$	65,324		$	53,399
Cost of revenues (exclusive of amortization of intangibles)		(13,069	)		(14,878	)		(39,207	)		(33,322	)
Cost of revenues (amortization of intangibles)		(3,959	)		(3,959	)		(11,876	)		(11,601	)
GAAP Gross profit		4,653			3,141			14,241			8,476
GAAP Gross margin		21.5	%		14.3	%		21.8	%		15.9	%

Cost of revenues (amortization of intangibles)		3,959			3,959			11,876			11,601
Inventory write-off related to discontinued products		—			2,024			—			2,024
Other operational charges		—			122			—			122
Stock-based compensation expense		76			—			325			—
Non-GAAP Gross profit	$	8,688		$	9,246		$	26,442		$	22,223
Non-GAAP Gross margin		40.1	%		42.1	%		40.5	%		41.6	%
RECONCILIATION OF OPERATING EXPENSES
GAAP Research and development	$	17,828		$	16,553		$	57,028		$	50,740
Stock-based compensation expenses		(6,267	)		(6,013	)		(20,075	)		(20,137	)
Non-GAAP Research and development		11,561			10,540			36,953			30,603
GAAP Selling, general and administrative		15,040			14,419			46,509			46,629
Stock-based compensation expenses		(5,029	)		(6,066	)		(17,611	)		(21,673	)
Payroll taxes on vesting of employee stock-based compensation		(137	)		(413	)		(687	)		(698	)
Employee separation and transition		—			—			(275	)		—
Settlement of commercial claim		—			—			(450	)		—
Acquisition-related expenses		—			—			—			(1,485	)
Termination of distributor		—			(483	)		—			(483	)
Other		—			(47	)		(111	)		(105	)
Non-GAAP Selling, general and administrative		9,874			7,410			27,375			22,185
Total Non-GAAP Operating expenses	$	21,435		$	17,950		$	64,328		$	52,788
RECONCILIATION OF LOSS FROM OPERATIONS
GAAP Loss from operations	$	(28,973	)	$	(28,646	)	$	(91,685	)	$	(91,338	)
GAAP Operating margin		(133.6	)%		(130.3	)%		(140.4	)%		(171.0	)%
Add: Stock-based compensation expenses included in:
Research and development		6,267			6,013			20,075			20,137
Selling, general and administrative		5,029			6,066			17,611			21,673
Cost of goods sold		76			—			325			—
Total		11,372			12,079			38,011			41,810
Amortization of acquisition-related intangible assets		4,717			4,774			14,265			14,046
Payroll taxes on vesting of employee stock-based compensation		137			413			687			698
Employee separation and transition		—			—			275			—
Settlement of commercial claim		—			—			450			—
Acquisition-related expenses		—			—			—			1,485
Inventory write-off related to discontinued products		—			2,024			—			2,024
Termination of distributor		—			483			—			483
Other		—			169			111			227
Non-GAAP Loss from operations	$	(12,747	)	$	(8,704	)	$	(37,886	)	$	(30,565	)
Non-GAAP Operating margin		(58.8	)%		(39.6	)%		(58.0	)%		(57.2	)%
RECONCILIATION OF NET LOSS PER SHARE
GAAP Net income (loss) attributable to controlling interest	$	(18,730	)	$	7,519		$	(44,739	)	$	(112,855	)
Adjustments to GAAP Net income (loss)
Loss (Gain) from change in fair value of earnout liabilities		(9,171	)		(34,473	)		(42,920	)		25,503
Total stock-based compensation		11,372			12,079			38,011			41,810
Amortization of acquisition-related intangible assets		4,717			4,774			14,265			14,046
Payroll taxes on vesting of employee stock-based compensation		137			413			687			698
Employee separation and transition		—			—			275			—
Settlement of commercial claim		—			—			450			—
Acquisition-related expenses		—			—			—			1,485
Inventory write-off related to discontinued products		—			2,024			—			2,024
Termination of distributor		—			483			—			483
Other operational charges		—			—			—			—
Other expense		—			149			28			177
Non-GAAP Net loss	$	(11,675	)	$	(7,032	)	$	(33,943	)	$	(26,629	)
Average shares outstanding for calculation of non-GAAP Net loss per share (basic and diluted)		184,672			175,103			182,551			165,719
Non-GAAP Net loss per share (basic and diluted)	$	(0.06	)	$	(0.04	)	$	(0.19	)	$	(0.16	)


NAVITAS SEMICONDUCTOR CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(dollars in thousands)
	(Unaudited)
	September 30, 2024			December 31, 2023
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	98,614		$	152,839
Accounts receivable, net		21,091			25,858
Inventories		21,284			22,234
Prepaid expenses and other current assets		4,161			6,178
Total current assets		145,150			207,109
ACCOUNTS RECEIVABLE NONCURRENT, net		5,211			—
PROPERTY AND EQUIPMENT, net		13,057			9,154
OPERATING LEASE RIGHT OF USE ASSETS		7,266			8,268
INTANGIBLE ASSETS, net		76,856			91,099
GOODWILL		163,215			163,215
OTHER ASSETS		8,654			6,701
Total assets	$	419,409		$	485,546
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable and other accrued expenses	$	13,593		$	24,740
Accrued compensation expenses		8,497			10,902
Operating lease liabilities, current		1,868			1,892
Customer deposit and deferred revenue		2,006			10,953
Total current liabilities		25,964			48,487
OPERATING LEASE LIABILITIES NONCURRENT		5,993			6,653
EARNOUT LIABILITY		3,932			46,852
DEFERRED TAX LIABILITIES		1,040			1,040
ACCRUED ROYALTIES NONCURRENT		1,652			1,897
Total liabilities		38,581			104,929
STOCKHOLDERS’ EQUITY		380,828			380,617
Total liabilities and stockholders’ equity	$	419,409		$	485,546

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