Release Date: February 24, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Gene, where do you think the cyclical bottom is for Navitas, and how do you view the slope of the recovery? A: Certainly, Q1 appears to be the cyclical bottom for Navitas. We see recovery starting in Q2 with healthy growth expected in the second half of the year, particularly in the EV space where we have a strong pipeline in onboard chargers and roadside chargers.
Q: How are you viewing the silicon carbide market, and will it affect your strategy going forward? A: The market slowdown in silicon carbide was due to weaker end markets like EV, solar, and industrial. However, we are focusing on strategic applications, particularly in the EV space, leveraging both GaN and silicon carbide. We expect the silicon carbide business to grow nicely throughout the year.
Q: Todd, can you confirm the operating expenses beyond Q1 and how long you can maintain that level? A: Yes, we expect operating expenses to be around $15.5 million per quarter going forward. We believe the business is right-sized and do not anticipate further reductions that would limit growth in new opportunities.
Q: Regarding the data center sector, are you still expecting it to be a $10 to $20 million business in 2025? A: While we are not providing specific guidance, we feel good about the trajectory. We started ramping in Q3, and the design wins have grown significantly, which should accelerate growth in the data center sector throughout 2025.
Q: Can you describe the power supply design wins in the data center sector? A: The design wins range from below 2 kilowatts to 8.5 kilowatts, with a concentration in higher power levels where GaN and silicon carbide offer the best efficiencies and densities. This is where we see increased concentration and potential for growth.
Q: Can you discuss the distributor disengagement and its impact on your cost reduction plan? A: The distributor disengagement was separate from our cost reduction plan. It was due to underperformance and inability to pay for delivered products. We have since replaced them with a new channel partner to support growth in the second half of 2025.
Q: How are you managing cash burn, and do you anticipate needing to raise capital? A: We ended the year with $87 million in cash and expect cash usage to decrease over time. We have over two years of cash available and do not see a need to raise capital unless for a strategic initiative.
Q: Can you elaborate on the $450 million design win pipeline and its expected ramp-up? A: The $450 million represents lifetime revenue from design wins expected to ramp in 2025, 2026, and 2027. We take a conservative view on ramp timing and have excluded programs starting in 2028 or beyond.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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