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TORRANCE, Calif., May 05, 2025 (GLOBE NEWSWIRE) -- Navitas Semiconductor (Nasdaq: NVTS), the only pure-play, next-generation power semiconductor company and industry leader in gallium nitride (GaN) power ICs and silicon carbide (SiC) technology, today announced unaudited financial results for the first quarter ended March 31, 2025.
“Our first quarter featured many industry firsts, including the world’s first production release of GaN bi-directional ICs, a 12 kW AI data center power supply platform and unprecedented reliability standards for both GaN and SiC technology,” said Gene Sheridan, CEO and co-founder. “These technology and reliability achievements, combined with our $450M of design wins announced for last year, positions the company for important growth later this year and in 2026 and beyond. ”
1Q25 Financial Highlights
Market, Customer and Technology Highlights:
Business Outlook
Navitas Q1 2025 Financial Results Conference Call and Webcast Information:
Navitas Q2 Investor Conference
Non-GAAP Financial Measures
This press release and statements in our public webcast include financial measures that are not calculated in accordance with generally accepted accounting principles (“GAAP”), which we refer to as “non-GAAP financial measures,” including (i) non-GAAP operating expenses, (ii) non-GAAP research and development expense, (iii) non-GAAP selling, general and administrative expense, (iv) non-GAAP loss from operations, (vi) non-GAAP operating margin, and (vi) non-GAAP net loss and net loss per share. Each of these non-GAAP financial measures are adjusted from GAAP results to exclude certain expenses which are outlined in the “Reconciliation of GAAP Results to Non-GAAP Financial Measures” tables below. We believe these non-GAAP financial measures provide investors with useful supplemental information about our operating performance and enable comparison of financial trends and results between periods where certain items may vary independently of business performance. We believe these non-GAAP financial measures offer an additional view of our operations that, when coupled with the GAAP results and the reconciliations to corresponding GAAP financial measures, provide a more complete understanding of the results of operations. However, these non-GAAP financial measures should be considered as a supplement to, and not as a substitute for, or superior to, the corresponding measures calculated in accordance with GAAP.
Note Regarding Customer Pipeline and Design Wins
“Customer pipeline” reflects estimated potential future business based on interest expressed by potential customers for qualified programs, stated in terms of estimated revenue that may be realized over the life of the customer’s end product. A “design win” reflects an end customer’s selection of a Navitas product for a specific production program, stated in terms of revenues that may be realized over the life of the customer’s end product. All customer pipeline and design win information constitutes forward-looking statements. Customer pipeline and design wins do not represent orders, are not proxies for backlog or estimates of future revenue, and should not be considered as any other measure or indicator of financial performance. Rather, Navitas uses these terms to indicate the company’s current view of future potential business and related changes across various end markets. Time horizons vary based on product type and application. Accordingly, actual business realized depends on whether potential customers ultimately choose the Navitas solution, the portion of the customer program awarded to the Navitas solution as compared to other sources in dual- or multiple-source cases, successful customer qualification of the selected solution, the time needed for customers to begin production, the duration and pace of the customer’s ramp to full production, and strategic decisions of Navitas throughout the process based on expected revenues, margins and other factors relating to pipeline opportunities discussed below under “Cautionary Statement Regarding Forward-Looking Statements.”
Cautionary Statement Regarding Forward-Looking Statements
This press release, including the paragraph headed “Business Outlook,” includes “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. The term “customer pipeline” and related information constitute forward-looking statements. Other forward-looking statements may be identified by the use of words such as “we expect” or “are expected to be,” “estimate,” “plan,” “project,” “forecast,” “intend,” “anticipate,” “believe,” “seek,” or other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. Customer pipeline and other forward-looking statements are made based on estimates and forecasts of financial and performance metrics, projections of market opportunity and market share and current indications of customer interest, all of which are based on various assumptions, whether or not identified in this press release. All such statements are based on current expectations of the management of Navitas and are not predictions of actual future performance. Forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on by any investor as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions and expectations. Many actual events and circumstances that affect performance are beyond the control of Navitas, and forward-looking statements are subject to a number of risks and uncertainties, including the possibility that the expected growth of our business will not be realized, or will not be realized within expected time periods, due to, among other things, the failure to successfully integrate acquired businesses into our business and operational systems; the effect of acquisitions on customer and supplier relationships, or the failure to retain and expand those relationships; the success or failure of other business development efforts; Navitas’ financial condition and results of operations; Navitas’ ability to accurately predict future revenues for the purpose of appropriately budgeting and adjusting Navitas’ expenses; Navitas’ ability to diversify its customer base and develop relationships in new markets; Navitas’ ability to scale its technology into new markets and applications; the effects of competition on Navitas’ business, including actions of competitors with an established presence and resources in markets we hope to penetrate, including silicon carbide markets; the level of demand in our customers’ end markets and our customers’ ability to predict such demand, both generally and with respect to successive generations of products or technology; Navitas’ ability to attract, train and retain key qualified personnel; changes in government trade policies, including the imposition of tariffs and the regulation of cross-border investments, particularly involving the United States and China; other regulatory developments in the United States, China and other countries; the impact of the COVID-19 pandemic or other epidemics on Navitas’ business and the economies that affect our business, including but not limited to Navitas’ supply chain and the supply chains of customers and suppliers; and Navitas’ ability to protect its intellectual property rights.
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, 2024, 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 300 Navitas patents are issued or pending. Navitas offers the industry’s first and only 20-year GaNFast warranty and was the world’s first semiconductor company to be CarbonNeutral®-certified.
Navitas Semiconductor, GaNFast, GaNSense, GaNSafe, GeneSiC and the Navitas logo are trademarks or registered trademarks of Navitas Semiconductor Limited or 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
Lori Barker, Investor Relations
[email protected]
| NAVITAS SEMICONDUCTOR CORPORATION | ||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS (GAAP) - UNAUDITED | ||||||||
| (dollars in thousands, except per share amounts) | ||||||||
| Three Months Ended | ||||||||
| March 31, | ||||||||
| 2025 | 2024 | |||||||
| NET REVENUES | $ | 14,018 | $ | 23,175 | ||||
| COST OF REVENUES (exclusive of amortization of intangible assets included below) | 8,711 | 13,660 | ||||||
| OPERATING EXPENSES: | ||||||||
| Research and development | 12,668 | 20,229 | ||||||
| Selling, general and administrative | 11,740 | 16,087 | ||||||
| Amortization of intangible assets | 4,734 | 4,774 | ||||||
| Restructuring expense | 1,469 | — | ||||||
| Total operating expenses | 30,611 | 41,090 | ||||||
| LOSS FROM OPERATIONS | (25,304 | ) | (31,575 | ) | ||||
| OTHER INCOME (EXPENSE), net: | ||||||||
| Interest income (expense), net | (38 | ) | 2 | |||||
| Dividend income | 744 | 1,680 | ||||||
| Gain from change in fair value of earnout liabilities | 8,113 | 26,199 | ||||||
| Other income | 18 | 83 | ||||||
| Total other income, net | 8,837 | 27,964 | ||||||
| LOSS BEFORE INCOME TAXES | (16,467 | ) | (3,611 | ) | ||||
| INCOME TAX PROVISION | 82 | 70 | ||||||
| Equity method investment loss | (280 | ) | — | |||||
| NET LOSS | $ | (16,829 | ) | $ | (3,681 | ) | ||
| NET LOSS PER SHARE: | ||||||||
| Basic | $ | (0.09 | ) | $ | (0.02 | ) | ||
| Diluted | $ | (0.09 | ) | $ | (0.02 | ) | ||
| SHARES USED IN PER SHARE CALCULATION: | ||||||||
| Basic | 187,784 | 179,779 | ||||||
| Diluted | 187,784 | 179,779 | ||||||
| RECONCILIATION OF GAAP RESULTS TO NON-GAAP FINANCIAL MEASURES - UNAUDITED | ||||||||
| (dollars in thousands, except per share amounts) | ||||||||
| Three Months Ended | ||||||||
| March 31, | ||||||||
| 2025 | 2024 | |||||||
| RECONCILIATION OF GROSS PROFIT MARGIN | ||||||||
| GAAP Net revenues | $ | 14,018 | $ | 23,175 | ||||
| Cost of revenues (exclusive of amortization of intangibles) | (8,711 | ) | (13,660 | ) | ||||
| Cost of revenues (amortization of intangibles) | (4,032 | ) | (3,959 | ) | ||||
| GAAP Gross profit | 1,275 | 5,556 | ||||||
| GAAP Gross margin | 9.1% | 24.0% | ||||||
| Cost of revenues (amortization of intangibles) | 4,032 | 3,959 | ||||||
| Stock-based compensation expense | 36 | — | ||||||
| Non-GAAP Gross profit | $ | 5,343 | $ | 9,515 | ||||
| Non-GAAP Gross margin | 38.1% | 41.1% | ||||||
| RECONCILIATION OF OPERATING EXPENSES | ||||||||
| GAAP Research and development | $ | 12,668 | $ | 20,229 | ||||
| Stock-based compensation expenses | (3,838 | ) | (7,370 | ) | ||||
| Non-GAAP Research and development | 8,830 | 12,859 | ||||||
| GAAP Selling, general and administrative | 11,740 | 16,087 | ||||||
| Stock-based compensation expenses | (3,098 | ) | (6,178 | ) | ||||
| Payroll taxes on vesting of employee stock-based compensation | (283 | ) | (534 | ) | ||||
| Settlement of commercial claim | — | (500 | ) | |||||
| Other expense | (25 | ) | (386 | ) | ||||
| Non-GAAP Selling, general and administrative | 8,334 | 8,489 | ||||||
| Total Non-GAAP Operating expenses | $ | 17,164 | $ | 21,348 | ||||
| RECONCILIATION OF LOSS FROM OPERATIONS | ||||||||
| GAAP Loss from operations | $ | (25,304 | ) | $ | (31,575 | ) | ||
| GAAP Operating margin | (180.5)% | (136.2)% | ||||||
| Add: Stock-based compensation expenses included in: | ||||||||
| Research and development | 3,838 | 7,370 | ||||||
| Selling, general and administrative | 3,098 | 6,178 | ||||||
| Cost of goods sold | 36 | — | ||||||
| Total | 6,972 | 13,548 | ||||||
| Amortization of acquisition-related intangible assets | 4,734 | 4,774 | ||||||
| Restructuring expense | 1,469 | — | ||||||
| Payroll taxes on vesting of employee stock-based compensation | 283 | 534 | ||||||
| Settlement of commercial claim | — | 500 | ||||||
| Other expense | 25 | 386 | ||||||
| Non-GAAP Loss from operations | $ | (11,821 | ) | $ | (11,833 | ) | ||
| Non-GAAP Operating margin | (84.3)% | (51.1)% | ||||||
| RECONCILIATION OF NET LOSS PER SHARE | ||||||||
| GAAP Net loss | $ | (16,829 | ) | $ | (3,681 | ) | ||
| Adjustments to GAAP Net loss | ||||||||
| Gain from change in fair value of earnout liabilities | (8,113 | ) | (26,199 | ) | ||||
| Total stock-based compensation | 6,972 | 13,548 | ||||||
| Amortization of acquisition-related intangible assets | 4,734 | 4,774 | ||||||
| Equity method investment loss | 280 | — | ||||||
| Restructuring expense | 1,469 | — | ||||||
| Payroll taxes on vesting of employee stock-based compensation | 283 | 534 | ||||||
| Settlement of commercial claim | — | 500 | ||||||
| Other expense | 25 | 303 | ||||||
| Non-GAAP Net loss | $ | (11,179 | ) | $ | (10,221 | ) | ||
| Average shares outstanding for calculation of non-GAAP Net loss per share (basic and diluted) | 187,784 | 179,779 | ||||||
| Non-GAAP Net loss per share (basic and diluted) | $ | (0.06 | ) | $ | (0.06 | ) | ||
| NAVITAS SEMICONDUCTOR CORPORATION | ||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||
| (dollars in thousands) | ||||||
| (Unaudited) | ||||||
| ASSETS | March 31, 2025 | December 31, 2024 | ||||
| CURRENT ASSETS: | ||||||
| Cash and cash equivalents | $ | 75,132 | $ | 86,737 | ||
| Accounts receivable, net | 12,427 | 13,982 | ||||
| Inventories | 16,062 | 15,477 | ||||
| Prepaid expenses and other current assets | 4,679 | 4,070 | ||||
| Total current assets | 108,300 | 120,266 | ||||
| RESTRICTED CASH | 483 | 1,503 | ||||
| PROPERTY AND EQUIPMENT, net | 14,706 | 15,421 | ||||
| OPERATING LEASE RIGHT OF USE ASSETS | 6,474 | 6,900 | ||||
| INTANGIBLE ASSETS, net | 67,461 | 72,195 | ||||
| GOODWILL | 163,215 | 163,215 | ||||
| OTHER ASSETS | 10,191 | 10,478 | ||||
| Total assets | $ | 370,830 | $ | 389,978 | ||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||
| CURRENT LIABILITIES: | ||||||
| Accounts payable and other accrued expenses | $ | 14,272 | $ | 10,754 | ||
| Accrued compensation expenses | 3,265 | 8,623 | ||||
| Operating lease liabilities, current | 1,772 | 1,767 | ||||
| Total current liabilities | 19,309 | 21,144 | ||||
| OPERATING LEASE LIABILITIES NONCURRENT | 5,112 | 5,553 | ||||
| EARNOUT LIABILITY | 2,095 | 10,208 | ||||
| DEFERRED TAX LIABILITIES | 428 | 441 | ||||
| NONCURRENT LIABILITIES | 2,066 | 4,619 | ||||
| Total liabilities | 29,010 | 41,965 | ||||
| STOCKHOLDERS’ EQUITY | 341,820 | 348,013 | ||||
| Total liabilities and stockholders’ equity | $ | 370,830 | $ | 389,978 | ||
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/61623307-0bcb-4df1-bbe3-cced51f8a96a
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