16 May 2023
Navitas doubles Q1 revenue year-on-year, boosted by acquisitions
For first-quarter 2023, gallium nitride (GaN) power IC and silicon carbide (SiC) technology firm Navitas Semiconductor of Torrance, CA, USA has reported revenue of $13.46m, up 8% on $12.3m last quarter and almost doubling from $6.74m a year ago. This takes into account revenue from silicon carbide power semiconductor device designer and manufacturer GeneSiC Semiconductor Inc of Dulles, VA, USA (acquired in mid-August 2022).
“I am very pleased with our progress in the quarter across acquisitions, product launches, customer developments and market expansion,” says CEO & co-founder Gene Sheridan. “A comprehensive portfolio of leading-edge GaN, SiC, digital isolators and low-voltage silicon system-control ICs is translating into significant customer value, market adoption and financial results.”
Product highlights are listed as follows:
- New GaNSense Control: strategic integration of high-speed, high-voltage GaN and low-voltage silicon system-controller chips enables easy-to-use, high-efficiency, fast-charging power systems.
- New GeneSiC SiCPak: Navitas’ entry into the high-power module and bare-die sales market, with a broad portfolio from 650V to 6500V for EV, solar, wind, rail and industrial markets.
- New GeneSiC Gen-5 650V MPS diodes: industry-leading performance figure-of-merit for data center, home appliance and industrial motor drive.
On a non-GAAP basis, gross margin has risen from 40.6% last quarter to 41.1% in Q1/2023, although this is down on 44% a year ago.
Operating expenses have grown further, from $12.5m a year ago and $17m last quarter to $17.8m.
Net loss has risen further, from $9.65m last quarter to $10.9m. During the quarter, cash and cash equivalents have hence fallen from $110.3m to $100.8m.
Navitas cites a customer pipeline of $760m. Specific market highlights in Q1/2023 are listed as:
- EV/e-mobility: 25 on-board and roadside customer projects now in production or development, with a total customer pipeline value of over $300m, including a Geely on-board charger (OBC) design estimated at $15–20m in 2024.
- Solar/ESS (energy storage systems): over 35 customer projects in production or development, with revenue increasing and customer pipeline over $150m.
- Appliance/industrial: over 45 customer projects in production or development, with a customer pipeline of over $150m, fueled by strong government funding and legislation in the USA, Europe and other regions driving clean-energy upgrades to homes and factories.
- Data-center/enterprise: 15 customer projects, starting to ramp in late 2023 and into 2024, with an overall customer pipeline worth over $60m, accelerated by demand from artificial intelligence (AI), IoT and data in general.
- Mobile/consumer: strong bookings going into Q2/2023, plus 20 new fast and ultra-fast mobile chargers launched in Q1/2023, including the latest Xiaomi 13 Pro and Ultra flagship phones (in-box) and Lenovo’s 65W Thinkbook ultra-thin ‘biscuit’ laptop charger (just 12.8mm thick). Over 150 projects are in development, with a customer pipeline of over $100m.
Navitas expects revenue to grow to $16–17m in second-quarter 2023 and to double for full-year 2023. Gross margin should rise by 25–50 basis points in Q2, and grow incrementally throughout the year, exiting 2023 in the mid-40s percent range. Operating expenses are expected to rise to about $19m in Q2 then grow in the mid-high single digits on a quarterly basis throughout the year, albeit declining as a percentage of revenue as the business scales.