17 November 2021
GaN power IC firm Navitas doubles sales volume year-on-year in Q3
For third-quarter 2021, gallium nitride (GaN) power integrated circuit firm Navitas Semiconductor of El Segundo, CA, USA and Dublin, Ireland has reported revenue of $5.6m, up 61% on $3.5m a year ago, reflecting the expansion of its product and end-customer base. Total sales volume rose by 103%, from 3 million to 6.1 million GaN ICs shipped. In total, over 30 million have now been shipped, with zero reported field failures.
Founded in 2013, Navitas introduced what it claimed to be the first commercial GaN power integrated circuits. Its proprietary GaNFast power ICs monolithically integrate GaN power field-effect transistors (FETs) and GaN drive plus control and protection circuits in a single SMT package. GaNFast power ICs have been integrated in over 135 mobile chargers, including fast chargers from Xiaomi, Dell, Lenovo, LG, Amazon, OPPO, Anker, Belkin and dozens of other major OEMs. An additional 150 GaN chargers are in development across all mobile customers worldwide.
On a non-GAAP basis, gross margin has grown from 37.6% a year ago to 46.2% in Q3/2021. However, net loss was $6.6m ($0.39 per share), up from $3.8m ($0.26 per share) a year ago.
After using cash to fund operations, meet working capital requirements, for capital expenditures and strategic investments, total cash and cash-equivalents fell by $27.8m during the quarter to $11.1m. Total debt outstanding rose by $1.7m to $7.7m.
“We expect to continue to incur net operating losses and negative cash flows from operations and we expect our R&D expenses, general and administrative expenses and capital expenditures will continue to increase,” says the firm. “We expect our expenses and capital requirements to increase in connection with our ongoing initiatives to expand our operations, product offerings and end-customer base.”
After the quarter, on 19 October, Navitas completed its de-SPAC business combination with Live Oak Acquisition Corp II - a publicly traded special-purpose acquisition company (SPAC). Navitas’ common shares and warrants begin trading on 20 October on the Nasdaq Global Market (under the ticker symbols ‘NVTS’ and ‘NVTSW’), when CEO & co-founder Gene Sheridan rang the opening bell at the Nasdaq MarketSite. Gross proceeds raised in the business combination transaction were $325m. With about 117.7 million shares outstanding, Navitas has about $260m in cash and cash equivalents to support growth.
Navitas expects that the additional capital will accelerate product development and expansion from its industry-leading position in GaN mobile fast chargers into consumer, enterprise, solar and electric vehicle (EV) markets, as well as providing funds for non-organic growth. “We expect our historical focus on near-term working capital and liquidity to shift to more strategic and forward-looking capital optimization plans,” says Navitas. “The influx of capital from the business combination is sufficient to finance our operations, working capital requirements and capital expenditures for the foreseeable future.” The firm’s personnel strength has grown by about 50%, to about 150 staff worldwide. Also, new offices and teams in China and Europe are addressing expansion markets.
For fourth-quarter 2021, revenue is expected to grow about 60% year-on-year to $7.4m (plus or minus 5%). Gross margin should be about 44%.
“Worldwide GaN penetration in the $2bn fast-charger market is estimated at only 2-3% so far, so we expect a fast revenue ramp ahead in mobile plus the higher-power expansion markets of data center, solar and EV,” says co-founder & CEO Gene Sheridan. “Couple that with next-gen technology introductions, growing team strength and more than 130 patents issued or pending, and we have an extraordinary opportunity in front us is to become the next-generation power semiconductor leader.”