Navitas Semiconductor Revenue Surges 73%

Navitas Semiconductor Corporation has released its latest 10-Q report, providing a detailed insight into its financial performance and operations. Founded in 2013, Navitas is a U.S. based developer of gallium nitride and silicon carbide power semiconductor devices used in various applications such as mobile, consumer, data center, solar, electric vehicle, industrial motor drive, smart grid, and transportation. The company operates globally and has a fabless business model, minimizing capital expenditures.

In the 10-Q report, Navitas revealed that in the three months ended March 31, 2024, its revenue increased to $23.2 million, a significant 73% rise from the same period in 2023. This growth was primarily driven by increased sales within the mobile/consumer market. However, the cost of revenues also increased by 74% to $13.7 million due to the significant revenue growth.

The company's research and development expenses for the same period increased by 16% to $20.2 million, primarily driven by an increase in research and development materials and stock compensation expenses. In contrast, selling, general, and administrative expenses decreased by 16% to $16.1 million, mainly due to lower stock compensation expenses related to the acquisition of the minority interest of the Joint Venture.

Navitas reported a net loss of $3.7 million for the three months ended March 31, 2024, a significant improvement from the net loss of $62.4 million in the same period in 2023. The company also highlighted its cash and cash equivalents of $129.7 million as of March 31, 2024, which it believes is sufficient to finance its operations, working capital requirements, and capital expenditures for the foreseeable future. However, it anticipates an increase in operating and capital expenditures as it expands its operations and grows its end customer base, hinting at potential future fundraising through equity or debt financing.

Navitas also discussed its recent public offering, where it raised net proceeds of $86.5 million, and its acquisition of the remaining minority interest in its silicon control IC joint venture, as well as rights to certain intellectual property from Halo Microelectronics for a total purchase price of $22.4 million in Navitas stock. These strategic moves indicate the company's commitment to growth and expansion.

The 10-Q report provides a comprehensive overview of Navitas Semiconductor's financial condition and results of operations, shedding light on its performance and future outlook. The market has reacted to these announcements by moving the company's shares -1.2% to a price of $3.95. For more information, read the company's full 10-Q submission here.

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