Navitas Semiconductor Corporation

Thank you for standing by. My name is Kath and I will be your conference operator today. At this time, I would like to welcome everyone to the Navitas Semiconductor Second Quarter 2024 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, press star one again. Thank you. I would now like to turn the call over to Stephen Oliver, Vice President of Investor Relations. Please go ahead.

Good afternoon, everyone. I'm Stephen Oliver, Vice President of Investor Relations. Thank you for joining Navitas Semiconductor's second quarter 2024 results conference call. I'm joined today by Gene Sheridan, our Chairman, President, CEO, and Co-Founder, and Janet Cho, EVP, CFO, and treasurer. 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 second 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 never-test 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 factors 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, change assumptions, or other events that may occur except as required by law. And now, over to Gene Sheridan, CEO.

Thanks, Steve, and thanks to all of you for joining us today. I am pleased to announce Q2 revenue of $20.5 million. at the top end of our guidance, which completes the first half of 2024 with nearly 40% revenue increase compared to the prior year despite a slowdown in most semiconductor end markets. Gallium nitrite and silicon carbide continue to take share from legacy silicon chips. Our GAN Safe ICs offer the highest performance, most reliable, and most protected GAN power device in our industry and continue to drive new business at an extraordinary pace. GAN-SAFE is now being qualified or designed into over 100 customer projects, spanning four different end markets, and in all major regions around the world. Our latest generation three fast carbon technology has improved performance by an additional 20% compared to our prior generation, which already demonstrated the industry's leading efficiency and thermal performance, and now also has over 100 customer projects in our pipeline. The combination of GAN-SAFE's And Gen 3 fast silicon carbide for AI data centers and EV onboard chargers are creating next-gen power systems that exceed even our own expectations and set new industry standards in terms of power density, energy efficiency, and system costs. Let me give further specifics in each of our target markets. The AI data center market continues to evolve at a rapid and exciting pace. Traditional servers required a total power of up to 30 kilowatts per rack. With NVIDIA's Grace Hopper GPUs, those power levels are being pushed to 60 or even 120 kilowatts. With Blackwell Ultra and Ruben, we are targeting 240 and even 480 kilowatts in the next two years. Our system design center focused on data centers has stepped up to the challenge with AC to DC server power supply platforms expanding rapidly from 2.7 to 3.2 to 4.5 kilowatts and targeting 8 to 10 kilowatts by the end of the year. The recently announced 4.5-kilowatt platform combines our newest Gen3 fast silicon carbide in the front-end power factor correction, or PFC, section with the industry-leading DanSafe technology in the back-end LLC portion to set new industry benchmarks with energy efficiencies of 97% and power densities of nearly 140 watts per cubic inch. As a result, our data center pipeline has grown rapidly, faster than any other segment in the last three months, and has doubled since our investor day in December, now with over 60 customer projects in development. We're pleased to announce another seven data center design wins in Q2. In addition, I'm excited to announce a major technology innovation from our system design center. Traditional PFC circuits operate at low frequency with moderate efficiencies. Our team has unlocked an additional 30% energy savings for data center PFC circuits by innovating a novel high-frequency soft-switching control method, which translates to over 99% peak efficiency for that PFC section with higher power densities and attractive costs. This technology is patent-pending and is available immediately for our customers to implement for their Blackwell and Blackwell Ultra designs. It will be integrated with our 8-kilowatt and higher designs while we retrofit the 4.5 and 3.2-kilowatt platforms in the coming months. In electric vehicles, we see strong growth in our customer pipeline, which now includes over 200 customer projects, and it's the largest segment of our pipeline. Our latest 22-kilowatt onboard charger platform, which enables three times faster charging with two times higher power density, 30% energy savings, and 40% lighter compared to comparable solutions on the market, is seeing strong interest. This platform has contributed to a total of 15 new customer design wins in Q2, which includes three major new silicon carbide winds that will start production next year while we're on track for our first GAN EV revenues to start by the end of 2025. The customer pipeline in both appliance and industrial segments continues to be strong and growing well beyond the $380 million we stated in December. with strong ramp expected in 2025 across diverse customers and regions, including seven of the top 10 appliance leaders, with a total of 25 new design wins in Q2 expected to ramp production next year or 2026. These customer projects span hair care applications, washers, dryers, refrigerators, heat pumps, industrial HVAC, robotics, and automation applications. While the solar industry experienced a significant slowdown due to higher interest rates over the last 18 months, as displacement technologies, we are working on over 100 customer projects with GAN for residential microinverters and silicon carbide for higher voltage string inverters, in addition to their related energy storage systems. We continue strong engagement with the majority of the top 10 solar players and are pleased to announce another six customer design wins in Q2. We are also progressing well for a major U.S. GAN-based microinverter ramp in the first half of next year. GAN revenue growth continues in mobile markets as all major OEMs across smartphone, tablet, and notebooks continue to increase the percentage of GAN adoption in their fast charger portfolios over legacy silicon power chips. As discussed in the last call, GAN adoption in customers such as Xiaomi and Oppo is expected to be 30% this year. Following our fast charger design lens for Samsung Galaxy S23 and S24 phones, we are pleased to announce that the new Galaxy Z Flip 6, Z Fold 6, and all A series phones, as revealed during July's Galaxy Unpacked event, now use Navitas ScanFast technology to deliver fast, light, truly portable fast charging experiences for the consumer. Growth in the laptop PC market resumed in Q1, with GanFast adopted again by Lenovo for 105 and 170-watt fast chargers, and again by Dell, this time for 100 and 130-watt, achieving up to 50% size reduction. Overall, Q2 saw another 16 charger launches, bringing the total to over 470 production designs, and Navitas remains number one in mobile fast chargers. Our new GaN SLIM portfolio with integration, ease of use, and low-cost manufacturing methods continues to grow the customer pipeline now with over 50 customer projects. GaN SLIM increases our GaN served market by enabling lower system costs compared to silicon design for many applications, targeting applications under 500 watts across mobile, consumer, and home appliance. Overall, I'm pleased with our Q2 results at the high end of our guidance, combined with the growth of our pipeline, major redesignments, and significant new technology launches. Electrification and energy savings have never been more important, and Navitas is well-positioned as the only pure-play, next-gen power semi-company with leading-edge gallium nitride and silicon carbide technologies. With that, let me turn it over to our CFO, Janet Chao, to discuss the financials.