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| Statement |
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| As we've stated before, these drivers, combined with our unique position as the industry's only pure-play power GaN and silicon carbide player position Navitas to grow at a rate that is 6 times to 10 times faster than the overall power semiconductor market for years to come |
| As we celebrate our 10 year anniversary, I’m very excited to announce a number of major milestones for the company, which includes 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 |
| So we're super excited |
| Appliance has been a great strength area for us, especially when mobile was a bit down, and that's going to pick up strongly in the second half of the year |
| So here, again, I think the combination of having both technologies puts us in a really unique position to figure out the right approach and whichever approach is going to win, whether it's 400 volts or 800 volts, we're going to benefit from it |
| And while we're not the exclusive supplier, we're a major supplier to anchor, and this whole positioning obviously benefits the whole industry |
| So as the whole world goes from slow chargers, which are 5, 10, 15, 20 watts, where GaN doesn't bring much value to fast chargers in the 30, 40, 50 watts and then ultimately, the ultrafast chargers where we're really, really strong at 100 watts are higher |
| '23 saw a really nice surge in mobile that's continuing as we explained in early this year, that surge took mobile over 40% |
| I'm pleased to announce another major appliance design win with a Tier 1 player, which leverages this latest M-series package, 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 |
| While we are not immune to some of the same macro trends seen by others, leading to more muted outlook for the first half of the year, we expect the strength of our pipeline and some market recovery in the second half of the year will support annual revenue growth of 40% to 50% in 2024 relative to 2023 |
| Our results continue to demonstrate that we can and expect to grow significantly faster than the overall market |
| In closing, we're extremely pleased with the results for the quarter and for all of fiscal 2023 |
| As we move through the year, we expect improving margins aligned with an expected recovery in higher-margin markets, including EV and Industrial in the second half of 2024 |
| As power-hungry AI processors increased power demand by 2x to 3x, now increasing to 1,000 to 2,000 amps per processor and up to 100 kilowatts per rack new GaNSafe 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 |
| It remains very strong with high levels of liquidity |
| Revenue in the fourth quarter of 2023 was again above our guidance, growing 111% year-over-year and 19% sequentially to approximately $26.1 million |
| So that's really coming off of a 0 base appliance strengthening with that strong pipeline and that major new Tier 1 project that ramps |
| 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 |
| In electric vehicles, we observed the same slower growth rate 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 road size EV chargers for both 400 volt and 800 volt battery systems |
| And we've already got a pretty strong appliance pipeline going |
| So all of these will contribute to a modest margin improvement throughout the year |
| So for us, it's a super exciting way to kind of get access into those cars in the future |
| Congratulations on the strong finish to 2023 |
| I think that's great opportunity for lower voltage GaN, and it's something we plan to pursue over time |
| We see a lot of operating leverage as we scale up revenue |
| On the GaNSense Half-Bridge, we're especially excited about the motor versions we've created, which are then tuned orally for appliance motor in general, but appliance in particular |
| It certainly benefits Navitas |
| And I think the growth rates between now and then will continue pretty strongly |
| Navitas dedicated data center design center is now achieving an unprecedented 4.5 kilowatts in the industry standard CRPS185 form factor, more than double the power density of legacy silicon solutions with lower temperatures, higher reliability and at a lower cost per watt |
| Non-GAAP gross margin in the fourth quarter increased to 42.2% from 42.1% in the third quarter of 2023 and 40.6% in the fourth quarter of 2022 |
| Statement |
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| 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 GaNSafe and Generation-3 Fast silicon carbide technologies in our solar and energy storage customer pipeline |
| It's just slower growth in EV and slower growth in industrial |
| And so by all of our indications, we think that's a couple of quarters and that's added to our more muted expectations for the first half of the year |
| With a 20 year warranty, GaNSafe breaks the glass ceiling that has prevented GaN from entering high power, high reliability markets for decades |
| Last two months, 2.5 months, we've seen the slowdown as many have commented about |
| So I don't think there's much surprise there |
| At the midpoint, this represents substantial year-over-year growth of more than 70% over the $13.4 million we recorded in the first quarter of 2023 and is slightly down off of the fourth quarter of 2023, largely due to expected seasonality in our mobile business and some softness in the other markets as we already discussed |
| This wasn't a surprise as we had significant demand in December from our mobile customers |
| As you commented and we explained the margins are a little bit more muted in the first half of the year just purely due to market mix and the strength of the mobile market |
| It's a tough one to call |
| Putting all of this together, the loss from operations for the fourth quarter of 2023 was $9.7 million compared to a loss from operations of $12.4 million in the fourth quarter of 2022 and a loss of $40.3 million for the full year compared to a loss of $41.2 million for 2022 |
| I think the other markets depend a little bit on how the market recovers, too |
| Really, it's not a decline |
| You talked about the mix shift to mobile, driving some of that lower margin in the near term |
| And it's actually not very -- it's not very intuitive |
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