Navitas Semiconductor Corporation

Good afternoon. Thank you for standing by and welcome to Nevitas Semiconductor 4th Quarter and 2023 Financial Results Conference Call. Please be advised, today's conference is being recorded and a replay will be available on Nevitas Investor Relations website. I would now like to hand the conference over to Stephen Oliver, Vice President of Corporate Marketing and Investor Relations. Stephen, over to you.

Good afternoon, everyone. I'm Stephen Oliver, Vice President of Corporate Marketing and Investor Relations. Thank you for joining Navitas Semiconductor's fourth quarter and full year 2023 results conference call. I'm joined today by Jeanne Sheridan, our chairman, president, CEO, and co-founder, and Ron Shelton, our CFO and treasurer. Also present is Janet Cho, who will take over as EVP, CFO, and treasurer following this earnings report as announced earlier. A replay of this webcast will be available on our website. approximately one hour following this conference call, and the recorded webcast will be available for approximately 30 days following the call. Additional information related to our business is also posted on the investor relations section of our website. Our earnings release includes non-GAAP financial measures. Reconciliations of these non-GAAP financial measures with the most directly comparable GAAP measures are included in our fourth quarter earnings release. and also posted on our website in the investor relations section. In this conference call, we will make forward-looking statements about future events or about the future financial performance of Navitas, including acquisitions. You can identify these statements by words like we expect or we believe or similar terms. We wish to caution you that such forward-looking statements are subject to risks and uncertainties. that could cause actual events or results to differ materially from expectations expressed in our forward-looking statements. Important factors that can affect Navitas business, including factors that could cause actual results to differ from our forward-looking statements, are described in our earnings release. Please also refer to the risk factor section in our most recent 10K and 10Qs. Our estimates or other forward-looking statements may change. and Navitas assumes no obligation to update forward-looking statements to reflect actual results, changed assumptions, or other events that may occur except as required by law. And now, over to Gene Sheridan, CEO.

Thank you, Steve, and thanks to everyone for joining the call today. As we celebrate our 10-year anniversary, I'm very excited to announce a number of major milestones for the company, which include cumulative shipments of over 150 million devices, savings of over 200,000 tons of CO2, a customer pipeline as announced in December of over $1.25 billion, and our highest quarterly revenue ever with over $26 million in Q4. This quarterly result exceeds our guidance and reflects an increase of 111% from Q4 of the prior year. In total, 2023 annual revenue comes in at $79.5 million, which reflects growth of approximately 109% over 2022 in a year when overall semiconductors are generally down around 8%. Let me now turn to some of the market-specific developments and highlights. While the mobile market in general is experiencing limited growth in the near term, we continue to see solid revenue increases as major mobile players transition from silicon to GAN-based chargers. Our high-speed Generation 4 GANsense HEPRGE platform is a key component in fast and ultra-fast mobile charging. All 10 of the top 10 mobile OEMs are now in production with Navitas, and GAN is climbing the adoption curve rapidly. In 2024, we expect customers like OPPO and Xiaomi to ship over 30% of all their chargers with GAN technology. Navitas now powers five different OPPO models, and we're excited to announce eight newly released Xiaomi phone models with GaN chargers ranging from 67 watts to 120 watts. In Korea, success with Samsung continues. We were already powering the S23 charger, and now we've been selected to power the new Galaxy S24. GaN has moved from beachhead to mainstream, and it's the technology of choice for new mobile designs across phones, tablets, laptops, and aftermarket chargers. We have also developed a new M-series version of our Generation Forward Half-Ridge IC, which are optimized for motor drives and a major driver in our home appliance pipeline. As noted in December, our appliance and industrial pipeline totals over 200 projects and approximately $360 million in potential business. I'm pleased to announce another major appliance design win with a Tier 1 player, which leverages this latest M-Series Hackerage, which we believe enables the highest frequency, highest efficiency, and highest power density motor drive for appliance, and is expected to add over $10 million per year in new revenue starting late this year. In total, Navitas is in development with seven of the world's top 10 home appliance OEMs, which we expect will drive further revenue starting later this year and accelerate throughout 2025 and 2026. In appliance and industrial segments, major OEMs are moving to GaN or silicon carbide to meet regulatory requirements for energy efficiency and consumer demands for higher power density, along with transitions from gas-powered heating and cooling systems to fast adoption of heat pump technology. We now have customer designs underway at two of the top three global leaders in industrial pumps and one of the top three global leaders in heat pumps. the combination which is anticipated to drive tens of millions in new revenue starting late next year or 2026. We are also excited to share that Navita scan ICs have been designed into the ground-based terminal for a major internet satellite rollout that is expected to drive over 5 million annually with shipments beginning late this year and continuing for the next 5 to 10 years. In September last year, we launched ScanSafe Technologies, A new industry benchmark as the world's most protected, most reliable, and highest performance GAN power semiconductor technology. Just this week, at the prestigious APEC conference in Long Beach, we expanded that technology family to include a topside cooled packaging option. With a 20-year warranty, GAN Safe breaks the glass ceiling that has prevented GAN from entering high-power, high-reliability markets for decades. As power-hungry AI processors increase power demand by 2 to 3x, now increasing to 1,000 to 2,000 amps per processor and up to 100 kilowatts per rack, new GAN-safe and Generation 3 fast silicon carbide technologies are enabling drivers to deliver the needed power, densities, and efficiencies required by these next-generation AI processors. Navitas' dedicated data center design center is now achieving unprecedented 4.5 kilowatts in the industry standard CRPS 185 form factor, more than double the power density of legacy silicon solutions with lower temperatures, higher reliability, and at a lower cost per watt. Over 20 designs are expected to ramp into initial mass production in 2024 at the top data center players, which we expect to contribute 3 to 5 million in new revenue in the second half of this year. In electric vehicles, we observe the same slower growth rates as observed by our peers, which is creating some short-term revenue headwinds. But we're also benefiting from the introduction of our new GANSAFE technology, plus our new Generation 3 FAST silicon carbide mosfets, which are significant drivers in our revenue pipeline for onboard and roadside EV chargers for both 400-volt and 800-volt battery systems. Silicon Carbide-based onboard chargers are in or moving to production this year with customers including top EV brands such as Zeker, Volvo, and Smart. We also have multiple design engagements underway in U.S., Europe, Korea, China, and Japan. These Silicon Carbide chargers are expected to ramp later this year and into 2025. GAN IC EV adoption is also on track for mass production ramps in 2025. Navitas is pioneering leading-edge onboard bidirectional charging at 6.6 kilowatts and 11 kilowatts with our dedicated EV design center. Last year, we announced a joint design center with Geely, a top 10 EV player. And now we're excited to announce another joint design center with Shinry, one of the top EV onboard charger suppliers for Hyundai, BYD, Honda, Geely, and others. The first SHIN redevelopment projects are already underway and are expected to contribute appreciable revenues in early 2025. In EV roadside chargers, in addition to our ongoing silicon carbide production with SK Signet, which is a major supplier to Electrify America and EVgo, we are adding multiple Tier 1 developments in U.S., Europe, and Asia, with mass production starting in the second half of this year, which are expected to contribute over $5 million in 2025. In the solar space, while we are observing a continued general market slowdown given high interest rates that limit our growth in the first half of 2024, we are seeing accelerating displacement of silicon with GAN safe and Generation 3 fast silicon carbide technologies in our solar and energy storage customer pipeline. We now have significant developments with three of the top five U.S. solar OEMs and the majority of the world's top ten solar players. While we are already shipping silicon carbide in the market today, GAN adoption in solar is on track to start ramping late this year, and together, these new GAN and solar carbon customer designs are expected to add tens of millions of revenue in 2025. Overall, while we're not immune to the near-term market headwinds, which are translating to more muted revenues in the first half of 2024, the significant new wins that I've highlighted in my remarks, in combination with an anticipated market recovery starting in the second half of the year, are expected to translate into full-year 2024 revenue growth of 40% to 50% over 2023. For all of our target markets, the system benefits derived from gallium nitride and silicon carbide are amplified by long-term secular tailwinds. These include energy source conversion from fossil fuels to renewables, gas-powered vehicles, transitioning to all forms of electric transportation, and the intense and rapidly accelerating power demands of AI and edge computing. Our leading-edge GAN ICs and genetic technologies are both displacement technologies in traditional markets and accelerating and enabling technologies in new energy markets. As we've stated before, these drivers, combined with our unique position as the industry's only pure-play power GAN and sodium carbide player, position Malvitas to grow at a rate that is six to ten times faster than the overall power semiconductor market for years to come. And now, over to Ron to review the financials.