Navitas Stock Slips as Q4 Earnings Meet Estimates, Revenues Miss

Core Insights - Navitas Semiconductor (NVTS) reported a non-GAAP loss of 6 cents per share for Q4 2024, which was in line with the Zacks Consensus Estimate but wider than the loss of 4 cents in the same quarter last year [1][2] - The company's net revenues of $18 million missed the Zacks Consensus Estimate by 6.03$11.9 million, representing 66.1% of revenues compared to 43.8% in the previous year [4] - Non-GAAP SG&A expenses decreased by 14% year over year to $8 million, accounting for 44.5$12.7 million, indicating a 30% decline year over year, with operating margin contracting by 33% [6] Business Highlights - Navitas achieved record revenues in gallium nitride (GaN) products across mobile, consumer, and appliance sectors, while facing challenges in its silicon carbide (SiC) business due to a slowdown in solar, industrial, and electric vehicle markets [7] - The company secured $450 million in customer design wins, particularly in the data center and EV sectors, with a customer pipeline expanding 92$2.4 billion [8] - Navitas reported the highest growth in revenues and design wins within the data center sector, securing 40 customer project wins from leading ODMs in Asia [9] - In the mobile sector, Navitas achieved over 180 design wins for GaN chargers, including significant wins with a top-five global smartphone brand [10] Balance Sheet - As of December 31, 2024, cash and cash equivalents were $86.7 million, down from$98.6 million as of September 30, 2024, with the company operating with no debt [12] Q1 Guidance - For Q1 2025, Navitas anticipates net revenues of $13-$15 million, with a non-GAAP gross margin expected at 38% plus or minus 50 basis points, and non-GAAP operating expenses estimated at $18 million [13]