Navitas Semiconductor (US:NVTS)2023-05-15 20:43Revenue and Sales Performance - Revenue for Q1 2023 was $13.4 million, a 98% increase from $6.7 million in Q1 2022, driven by customer growth and the acquisition of GeneSiC[183]. - Total sales volumes increased by 19%, from 7.5 million to 8.9 million units shipped, with the average selling price rising by 78% to $1.46 per unit[183]. Costs and Expenses - Cost of revenues for Q1 2023 was $7.9 million, up 108% from $3.8 million in Q1 2022, primarily due to revenue growth and a 20% wafer price increase from TSMC[184]. - Research and development expenses increased by 31% to $17.4 million in Q1 2023, driven by higher compensation costs and expansion into new products[185]. - Selling, general and administrative expenses decreased by 22% to $19.1 million in Q1 2023, attributed to lower stock-based compensation and professional fees[186]. - Amortization of intangible assets surged by 5,013% to $4.5 million in Q1 2023, mainly due to business acquisitions[187]. Financial Results - Net interest income for Q1 2023 was $0.9 million, compared to immaterial net interest expense in Q1 2022, reflecting higher interest rates on money market funds[188]. - A loss of $27.8 million was recognized from the change in fair value of earn-out liabilities, linked to the increase in the closing price of Class A common stock[189]. - The income tax provision for Q1 2023 was $61, a significant increase from $3 in Q1 2022, with expectations of a near-zero tax rate in the short term[190]. Acquisitions and Investments - Navitas completed the acquisition of GeneSiC for a total consideration of $244 million, enhancing its capabilities in silicon carbide technology[172]. - Net cash used in investing activities for the three months ended March 31, 2023, was $1.8 million, primarily due to $1.0 million cash funding of a joint venture and $0.8 million for purchases of fixed assets[197]. Cash Flow and Liquidity - As of March 31, 2023, the company had cash and cash equivalents of $100.8 million, a decrease of $9.5 million or 9% compared to December 31, 2022[193][195]. - For the three months ended March 31, 2023, net cash used in operating activities was $7.9 million, reflecting a net loss of $62.4 million[196]. - Net cash provided by financing activities for the three months ended March 31, 2023, was $0.2 million, resulting from proceeds from stock option exercises[198]. - The company expects to incur net operating losses and negative cash flows from operations in the foreseeable future[192]. - If additional funds are required, the company may seek to raise funds through equity or debt financing, which could dilute existing equity holders[194]. - The company’s liquidity primarily derives from debt and equity financing activities[195]. - As of March 31, 2023, the company had no off-balance sheet arrangements[200]. Regulatory and Compliance - The company is classified as an emerging growth company under the JOBS Act, allowing it to delay the adoption of new accounting standards[204].