Navitas Opening Ceremony and Investor Day 2023 at Torrance HQ

Rhea-AI Summary

Navitas Semiconductor (Nasdaq: NVTS) announces a 65% increase in its customer pipeline to $1.25B, with a target to grow 6x-10x more than the market rate. The company held an Opening Ceremony and 2023 Investor Day at its new headquarters in Torrance, CA, showcasing significant growth, financial results, and future expansion plans.

Insights

Financial Analyst

Navitas Semiconductor's announcement of a 65% increase in its customer pipeline to $1.25 billion is a significant indicator of the company's growth trajectory and potential market expansion. The commitment to invest $20 million to enhance silicon carbide (SiC) production capabilities suggests strategic positioning in the semiconductor industry. The doubling of revenue and successful $92 million capital raise reflect positively on the company's financial health and investor confidence.

The long-term target to grow at 6x-10x the market rate, coupled with the aim for 50%+ gross margins, sets an ambitious benchmark for the company's performance. These figures, if achieved, would substantially outpace industry norms, which typically see more conservative growth rates. The claim of no debt and over $170 million in cash reserves provides additional assurance of financial stability and the means for sustained R&D and expansion.

For stakeholders, the immediate implication is the prospect of continued revenue growth and potential market share gains. In the long-term, Navitas' focus on next-generation power semiconductor technology, such as GaN and SiC, positions it at the forefront of the electrification trend, which is pivotal as industries shift towards carbon neutrality. However, these projections hinge on the company's ability to maintain technological leadership and convert its customer pipeline into tangible sales.

Industry Analyst

The semiconductor industry is witnessing a surge in demand for gallium nitride (GaN) and silicon carbide (SiC) technologies, driven by the global push for electrification. Navitas Semiconductor's emphasis on these technologies aligns with industry trends, where GaN and SiC are increasingly preferred for their efficiency and thermal performance in applications like electric vehicles (EVs), renewable energy and fast charging solutions.

The partnerships with top mobile OEMs and solar inverter manufacturers underscore Navitas' integration within key growth sectors. This is further evidenced by customer testimonials from various industry representatives, which serve to validate Navitas' technology and market acceptance.

While Navitas' aggressive growth targets and expansion plans indicate confidence, they also present execution risks. The semiconductor market is highly competitive and maintaining technological advantage requires continuous innovation and capital investment. The company's ability to meet its growth targets without compromising on profitability will be critical to its success.

Technology Analyst

Navitas Semiconductor's development of Gen-4 GaNSense and revolutionary bi-directional GaN power IC platforms represents a leap in power semiconductor technology. These innovations promise significant size reductions and efficiency improvements over traditional silicon-based solutions, which can catalyze advancements in various high-growth industries.

The introduction of GaNSafe, touted as the world's most protected GaN powertrain, addresses safety concerns and could accelerate adoption in safety-critical applications. The expansion into SiC epi-growth capability is indicative of Navitas' intention to capture more of the SiC market, which is crucial for high-voltage and high-temperature applications.

However, the success of these technologies depends on their performance in real-world applications and the company's ability to scale production while maintaining quality. The semiconductor industry is characterized by rapid technological evolution and any delays in product development or issues with scalability could impact Navitas' market position.

Customer pipeline Up 65% to $1.25B, target to Grow 6x-10x market rate, with leading-edge GaN & SiC

TORRANCE, Calif., Dec. 19, 2023 (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 held an Opening Ceremony and 2023 Investor Day at its new headquarters in Torrance, CA on Tuesday, December 12th.

Torrance Mayor, George Chen, and Dustin McDonald from the Office of the Governor of California joined Navitas’ CEO and co-founder Gene Sheridan to speak and cut the ribbon, officially opening Navitas’ new headquarters. Around 100 highly-skilled Navitas staff are employed in Torrance for all aspects of GaN and SiC design, applications, test, characterization and quality plus finance, marketing and HR. Further team growth is planned for 2024, including a $20M investment to add SiC epi-growth capability for strategic manufacturing expansion.

The well-attended investor meeting began with Mr. Sheridan’s recap on a year of significant growth for Navitas, with a doubling of revenue, a $92M capital raise, four major new technology platforms and an update on Navitas’ mission to 'Electrify Our World™. Then, Mr. Sheridan outlined a $1.3T electrification market opportunity as GaN and SiC enable and accelerate our transition away from fossil fuels to a carbon-neutral, full-electrified world, envisaged as ‘Planet Navitas’.

Dan Kinzer, co-founder and COO/CTO then introduced technology platforms including Gen-4 GaNSense half-bridges for motor drive and mobile fast chargers, GaNSafe – the world’s most protected GaN powertrain, GaNSense Control, and a revolutionary new bi-directional GaN power IC platform with up to 9x smaller chip size than legacy silicon MOSFETs or IGBTs. Sid Sundaresan, SVP for the GeneSiC product line added more detail on the Gen-3 Fast SiC platform.

In May, Navitas announced a qualified customer pipeline of $760M, across mobile, solar/ESS, EV/eMobility, data center and appliance/industrial markets. At the Investor Day, David Carroll, SVP Worldwide Sales announced that the pipeline had increased by 65% to $1.25B, with 10/10 top mobile OEMs and majority of solar inverter makers. Investors also heard from the voices of Navitas customers, including Rick Liu from Accopower for EV, Belkin’s Steve Malony for mobile, Philipp Guo from VREMT for EV, Adam Weissman from Anker for mobile, and Harron Inam from DG Matrix for EV roadside charging.

Ron Shelton, Navitas CFO, presented more detail on the impressive financial results with increased gross margin, and over $170M is cash and no debt, plus a long-term target to grow 6x-10x more than the market, with 50%+ gross margins.

In-person visitors then toured the Navitas facility, including past & present demos and the ‘Electrify Studio’ experience - where Navitas is creating a vision for our electrified planet – plus SiC design, GaN IC design, applications, test & characterization, quality & reliability.

The day concluded with a celebration at the Crypto.com Arena, where guests enjoyed the LA Clippers' victory—a fitting finale to a day filled with inspiration, innovation, and collaboration.

Comprehensive Investor Day material is available via the Navitas website, with presentation slides, and complete video playback of the main presentations, customer testimonials, and facility tour.

Navitas executives will next be at CES in Las Vegas, January 9^th-11^th (click link to book a meeting), then the Needham Growth Conference, New York, on January 17^th (contact Needham to register).

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. As of August 2023, over 125 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, 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

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/ad972025-906c-4803-b256-c7958f276642

FAQ

What is the latest customer pipeline value announced by Navitas Semiconductor?

Navitas Semiconductor announced a 65% increase in its customer pipeline, reaching $1.25 billion.

What are the growth targets for Navitas Semiconductor?

Navitas Semiconductor aims to grow 6x-10x more than the market rate.

Where was the 2023 Investor Day held for Navitas Semiconductor?

The 2023 Investor Day for Navitas Semiconductor was held at its new headquarters in Torrance, CA.

What are the key technology platforms introduced by Navitas Semiconductor?

Navitas Semiconductor introduced technology platforms including Gen-4 GaNSense half-bridges, GaNSafe, GaNSense Control, and a revolutionary new bi-directional GaN power IC platform.

What is the long-term financial target set by Navitas Semiconductor?

Navitas Semiconductor aims to grow 6x-10x more than the market with 50%+ gross margins.