News: Microelectronics
9 August 2024
Navitas’s Q2 revenue and gross margin at higher end of guidance
For second-quarter 2024, gallium nitride (GaN) power IC and silicon carbide (SiC) technology firm Navitas Semiconductor of Torrance, CA, USA has reported revenue of $20.5m, down 12.6% on $23.2m last quarter but up 13% on $18.1m a year ago, and at the top of the $20m±$0.5m guidance range. Revenue for first-half 2024 was up nearly 40% year-on-year.
On a non-GAAP basis, gross margin has fallen further, from 41.5% a year ago and 41.1% last quarter to 40.3%, although this is towards the higher end of the 39.5–40.5% guidance.
Operating expenses have risen from $17m a year ago and $21.3m last quarter to $21.5m.
Net loss has increased further, from $8.65m ($0.05 per share) a year ago and $10.2m ($0.06 per share) last quarter to $12.05m ($0.07 per share).
During the quarter, cash and cash equivalents have fallen from $129.7m to $112m. Navitas has no debt.
“We are pleased with our Q2 results at the high end of our guidance, major new design wins, and significant technology advances and launches,” says CEO & co-founder Gene Sheridan.
Market, customer and technology highlights during Q2/2024
- Enterprise/AI Data Center: Growing the family of AC–DC power platforms up to 10kW to meet nVidia’s Hopper-Blackwell-Rubin roadmap (Hopper, Blackwell, Blackwell Ultra and Rubin processor platforms), with up to 480kW power demand per rack. The optimized combination of Gen-3 Fast SiC and GaNSafe technologies sets new AC-DC efficiency (97%) and power density (140W/in3) benchmarks. The customer pipeline has doubled since the December 2023 investor day, with over 60 customer projects in development, and another seven data-center design wins in Q2.
- EV/eMobility: Strong growth in the customer pipeline, now with over 200 projects. Strong interest in the 22kW on-board charger platform, contributing to 15 design wins in Q2, and on-track for the first GaN revenues in EV by the end of 2025.
- Appliance/Industrial: Customer pipeline grew beyond the $380m stated in December, with a revenue ramp expected in 2025 across diverse customers and regions, including seven of the top 10 appliance leaders. 25 new project wins are expected to ramp production in 2025 or 2026, including haircare, washers, dryers, refrigerators, heat pumps, industrial HVAC, robotics and automation applications.
- Solar/Energy Storage: As displacement technologies, SiC (for string inverters and storage) and GaN (for micro-inverters) are replacing legacy silicon chips, with over 100 customer projects, including the majority of the top 10 solar players. Six new commercial design wins in Q2, and on-track for the expected US GaN-based micro-inverter ramp next year.
- Mobile/Consumer: Mobile customers are increasing GaN adoption for their fast-charger portfolios. GaN adoption at Xiaomi and OPPO is expected to be 30% in 2024. Following wins for Samsung’s Galaxy S23 and S24 phones, Navitas now powers chargers for Samsung’s new Galaxy Z Flip6, Z Fold6 and all A-series phones. In notebook PCs, GaNFast was adopted again by Lenovo and Dell. Overall, another 16 GaNFast chargers were launched in Q2, bringing the all-time total to over 470 designs, and Navitas remains number-one in mobile fast charging.
- New GaNSlim Portfolio: With integration, ease-of-use and low-cost manufacturing methods - continues to grow the customer pipeline, now with over 50 customer projects across mobile, consumer and home appliance markets.
“Our leading-edge technology is fueling robust customer pipeline growth in each end-market, led by AI data centers with multiple customers ramping production with our GaN and SiC-based power systems,” says Sheridan.
Outlook for Q3/2024
For third-quarter 2024, Navitas expects revenue to rebound to $22m±$0.5m. Despite this, gross margin is expected to fall to 40% ± 50 basis points. Operating expenses should remain $21.5m.
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