Navitas Semiconductor Corporation

Hello and thank you for standing by. At this time, I would like to welcome you to the Navitas Semiconductor Q3-24 Earnings Conference Call. All lines have been placed on view 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. I would now like to turn the conference over to Stephen Oliver, VP of Investor Relations. Please go ahead, sir.

Good afternoon, everyone. I'm Stephen Oliver, Vice President of Investor Relations. Thank you for joining Navitas Semiconductor's third quarter 2024 results conference call. I'm joined today by Gene Sheridan, our Chairman, President, CEO, and Co-Founder, and Todd Glickman, CFO. A replay of this webinar will be available on our website approximately one hour following this conference call and available for approximately 30 days. 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 third quarter earnings release and also posted on our website in the investor relations section. Non-GAAP expenses and operating margin exclude stock-based compensation, amortization of intangible assets, and other non-recurring items. 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 factors sections 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 Jean Sheridan, DEO.

Thanks, Steve, and thanks to all of you for joining us today. Our Q3 revenue was $21.7 million within prior guidance and also a record quarter for GAN shipments. I'm excited to announce a major new technology launch, several very important customer wins, and two new significant corporate announcements. Navitas is the pioneer and leader in GAN technology, releasing the world's first GaN PAR ICs and driving the world's first mainstream GaN adoption in mobile fast chargers starting back in 2018. Navitas GaN ICs continue to be generations ahead of our competitors. Our ICs set new industry standards for integration, efficiency, performance, reliability, and ease of use. Now we're expanding power capabilities into AI data centers, EV chargers, and next-generation solar microinverters, including our latest GaN Safe Family, the world's most protected and reliable GaN power platform. Today, we're proud to announce a new low-voltage GaN technology optimized for 48-volt systems, giving Novitas more content and complete solutions for AI data centers, next-generation EV platforms, as well as opening up new markets like AI-based robotics. We believe this new 80- to 200-volt range creates an additional billion-dollar market opportunity for Novitas in the coming years. I'm also pleased to announce a strategic partnership with Infineon, in which the two companies are creating common GAN specifications, giving our customers dual sourcing options from our two companies. With Navitas and Infineon aligning on fundamental elements such as packaging, pinout, footprint, and intellectual property, customers will have increased confidence to accelerate GAN adoption into new high-volume mainstream applications. This low-voltage GaN platform is another significant step in Navitas' pure plate technology roadmap of next-gen integrated GaN in leading-edge silicon carbide with proprietary trench-assisted planar technology for no-compromise, high-efficiency, high-power-density solutions. Continued innovation across a broad range of platforms has now increased Navitas' portfolio to over 300 patents, granted or pending, expanding another key element of our significant competitive advantages. Next, let me turn to our progress in each of our target markets. In AI and enterprise data centers, and in step with NVIDIA's rack power demands for the Hopper Blackwell Rubin GPU roadmap, demanding up to 480 kilowatts per rack, we've announced a new record-breaking 8.5 kilowatt AI power supply design, utilizing a winning combination of GAN safe and Gen3 fast selling carbide technology. as well as our new IntelliWeave architecture that achieves over 99% peak efficiency for data center PFC applications. Our high voltage GAN safe power ICs and Gen3 fast cell and carbon devices are featured in over 60 active customer projects with direct customers like Delta, Great Wall, CompuWare, and LightOn, supplying end users like AWS, Azure, and Google. Our data center revenue started in Q3, as expected, and will continue ramping this quarter and throughout 2025. The new low-voltage GaN technology announced today is a perfect complement to our existing high-voltage GaN. In particular, for AI data centers, this allows Novitas to deliver end-to-end solutions from high-voltage AC to DC converters with our existing GaN and cell and carbide technologies to low-voltage DC to DC converters using these new 80 to 200-volt GaN devices. These technologies are a critical element for the recent exponential demands in AI power requirements to boost energy efficiencies and power densities in order to target a doubling of rack power every year for many years to come. Sampling of the new low-voltage GAN will start this quarter for 48-volt data centers and other markets, with first customer designs expected to ramp in the second half of 2025. In electric vehicles, based on our silicon carbide best-in-class in-circuit performance, we have won another six designs in Q3, including both onboard chargers and roadside chargers for 2025 and 2026 revenue ramps. In addition to these performance benefits, our trench-assisted planar Genesic devices are fully qualified to industry AEC Q101 grade, and we're extending those tests well beyond AEC standards for best-in-class reliability. EV continues to be the largest segment in our customer pipeline, with over 200 active projects. In addition, our new low-voltage GAN technology will be a perfect fit for 48-volt battery EV applications in the future. Navitas continues to drive excellence in the mobile and consumer markets, with GaN SLIM ICs featured in another 26 design wins in Q3. Adding to the Samsung wins we announced in August, we now have another three Tier 1 OEM wins, which are expected to deliver multi-million starting their ramp in Q2 of next year. In the appliance and industrial pipeline, 30 new design wins were achieved in Q3, ranging from vacuum cleaners and LED lighting to solid-state grid-connected circuit breakers, multi-kilowatt power supplies and heat pumps. In solar and energy, We added another 10 designments, including a multi-million dollar win at Generac, which is scheduled to start production in the middle of next year. Next-gen GaN ICs, including Navitas proprietary industry-leading bidirectional GaN ICs, continue to track for a significant mid-25 ramp in solar microinverters. Our new low-voltage GaN will also provide further opportunities in solar in the low-voltage panel side of these inverters as a perfect complement to our high-voltage GaN and silicon carbide, doubling our content potential in these applications. Today, we're also announcing some important changes to streamline our company and drive important efficiency gains with the goal of scaling our company to profitability. As Todd will further explain, we have reduced headcount and expenses, which will reduce our revenue threshold for positive EBITDA and accelerate our time to profitability. We've also increased our organizational focus on our three most strategic markets, AI data center, mobile, and EV. We believe these three markets, utilizing our industry-leading GaN and silicon carbide technology, along with complementary silicon controllers and isolators, will be our largest revenue drivers over the coming years. The technologies we create for these markets will have significant opportunities for cross-selling into industrial, appliance, consumer, solar, and energy storage markets. Looking forward, given continued softness in some of our end markets, combined with a couple of customer project delays, we anticipate a more muted outlook for the next couple of quarters. However, with the strength of our $1.6 billion-plus customer pipeline and continued design wind momentum, we expect solid growth to resume later next year. In addition, today's announcements of our new low-voltage GAN technology, a dual-sourcing partnership with Infineon, and creation of a more efficient and focused organization all set Navitas on an improved path to growth and profitability. Now, over to Todd for our financial updates.