Navitas Semiconductor (US:NVTS)2022-11-14 22:24Revenue and Sales Performance - Revenue for the three months ended September 30, 2022, was $10.2 million, an increase of 82% compared to $5.6 million in the same period of 2021[204] - Total sales volumes increased by 19%, from 6.0 million to 7.1 million units shipped, with the average selling price rising by 53% to $1.43 per unit[204] - Revenue for the nine months ended September 30, 2022 was $25.6 million, an increase of $9.2 million or 56% compared to $16.4 million for the same period in 2021[214] Costs and Expenses - Cost of goods sold for the three months ended September 30, 2022, was $9.9 million, a 225% increase from $3.0 million in the same period of 2021[205] - Cost of goods sold for the nine months ended September 30, 2022 was $18.7 million, an increase of $9.7 million or 108% compared to $9.0 million for the same period in 2021[215] - Research and development expenses for the three months ended September 30, 2022, were $13.3 million, reflecting a 130% increase compared to $5.8 million in the same period of 2021[207] - Research and development expenses for the nine months ended September 30, 2022 were $36.4 million, an increase of $20.0 million or 123% compared to $16.3 million for the same period in 2021[216] - Selling, general and administrative expenses for the nine months ended September 30, 2022 were $63.0 million, an increase of $39.3 million or 166% compared to $23.7 million for the same period in 2021[218] - Operating expenses totaled $37.8 million for the three months ended September 30, 2022, a 304% increase from $9.4 million in the same period of 2021[203] Net Loss and Financial Position - The company recorded a net loss of $32.8 million for the three months ended September 30, 2022, compared to a net loss of $6.8 million in the same period of 2021, representing a 380% increase in losses[203] - Loss from operations for the three months ended September 30, 2022, was $37.4 million, compared to a loss of $6.8 million in the same period of 2021, marking a 454% increase[203] - Net cash used in operating activities for the nine months ended September 30, 2022 was $35.5 million, compared to $24.8 million for the same period in 2021[232] - As of September 30, 2022, the company had cash and cash equivalents of $124.8 million, a decrease of $143.5 million or 53% compared to December 31, 2021[228] - The company expects to continue incurring net operating losses and negative cash flows from operations as it expands its operations and product offerings[225] Acquisitions and Inventory - The acquisition of GeneSiC contributed to revenue growth and included a $0.5 million step-up in inventory valuation and $2.8 million in inventory reserves[206] Future Expectations and Strategic Position - The company expects research and development expenses to continue increasing as it expands into new applications[207] - Navitas has over 165 patents issued or pending, reinforcing its industry-leading IP position in GaN Power ICs[186] Accounting and Reporting - Management's estimates and judgments in financial reporting are based on historical experience and current economic conditions, which may lead to actual results differing from estimates[239] - There have been no material changes to critical accounting policies and estimates, except for the adoption of ASC 805 Business Combinations[241] - The company has elected to use an extended transition period under the JOBS Act for complying with new accounting standards, which may affect comparability with other public companies[243] Cash Flow and Financing Activities - Net cash used in investing activities for the nine months ended September 30, 2022 was $106.4 million, primarily due to $99.9 million in business acquisitions[234] - Net cash used in financing activities for the nine months ended September 30, 2022 was $1.5 million, primarily due to debt payments and stock repurchases[235] Contractual Obligations - No significant changes to contractual obligations were reported, except for a new operating lease entered into during the quarter[237] - As of September 30, 2022, there were no off-balance sheet arrangements[238]