Navitas Semiconductor Corp (NVTS) experienced a steep 13.49% plunge in pre-market trading on Tuesday, following its disappointing fourth-quarter 2024 financial results released on Monday after the market close.

The semiconductor company's stock was under pressure after it reported a 31% year-over-year decline in revenue for the quarter ended December 31, 2024, falling short of analysts' expectations. While Navitas met earnings per share estimates, the revenue miss raised concerns among investors, triggering a significant sell-off in the company's shares.

Compounding the negative sentiment was the impact of Navitas' disengagement from a key distributor during the quarter. This move resulted in several significant one-time charges, including a $6.64 million bad debt expense, a $5.01 million inventory reserve, and the abandonment of certain research and development projects worth $1.67 million. Additionally, the company incurred a $1.22 million restructuring expense as it aims to streamline operations in the wake of the distributor disengagement.