Navitas Semiconductor (US:NVTS)2022-02-16 04:32Financial Data and Key Metrics Changes - Annual revenues doubled to nearly $24 million with Q4 revenue growing sequentially by over 30% [8] - GAAP revenue for Q4 grew to $7.3 million, representing 30% sequential growth from Q3 2021 [27] - For the full year, revenue reached $23.7 million, indicating year-over-year growth of 100% [28] - Non-GAAP gross margin improved to 44.3% in Q4, up from 37.7% in the same quarter of the prior year [29] - Non-GAAP gross margin for fiscal year 2021 grew to 45.4% from 33.2% [29] Business Line Data and Key Metrics Changes - The number of customer chargers released to production increased by 75% from the prior year, reaching an all-time high of 171 [13] - The design pipeline doubled compared to the prior year, with over 240 customer projects now in development [13] - Mobile demand remained strong, despite supply chain constraints affecting GaN revenue growth in the second half of the year [28] Market Data and Key Metrics Changes - Cumulative unit shipments increased to over 35 million units with zero GaN-related field failures [8] - The company has engaged with dozens of customers for higher power GaN ICs targeted for data centers, solar, and electric vehicles [19] Company Strategy and Development Direction - The company aims to achieve system cost parity with silicon in 2023 and deliver 55% gross margins long-term [34] - New strategic partnerships and design centers have been established to drive GaN adoption in data centers and electric vehicles [20] - The company published the industry's first sustainability report quantifying the positive impact of GaN on decarbonization [21] Management's Comments on Operating Environment and Future Outlook - Management expects Q1 revenue to be seasonally similar or lower than Q4, with significant growth anticipated in Q2 [33] - The company forecasts another doubling of annual revenues for 2022, targeting $48 million [34] - Management noted that supply chain constraints have improved, allowing for better customer forecasts moving forward [40] Other Important Information - The company announced the industry's first 20-year warranty for GaN ICs, reflecting its commitment to quality and reliability [23] - The company has a patent portfolio totaling over 145 patents pending or issued, reinforcing competitive protection in GaN IC technology [12] Q&A Session Summary Question: Update on supply chain constraints - Management indicated that short-term impacts from supply chain constraints have improved, with customers adapting their forecasts accordingly [40] Question: Margin dynamics with wafer price increases - Management noted that generation three cost reductions are offsetting TSMC's wafer price increases, with margin expansion expected from generation four in the latter part of the year [42] Question: Engagements in China - Management highlighted that China is fundamental to the company's strategy, with a strong local team and multiple design centers supporting global customers [46] Question: Revenue from consumer markets - Management stated that the predominant revenue forecast is dominated by mobile, with promising opportunities in non-mobile consumer markets like LED TVs and desktop PCs [79] Question: Gross margin dynamics - Management expects gross margins to remain flat at 44% in Q1, with potential increases in the second half of the year due to generation four [83]