Q1 2022 Navitas Semiconductor Corp Earnings Call

May 12, 2022

Good day, Thank you for standing by and welcome to the NAFTA, assuming that your first quarter 2022 results conference call. At this time all participants are in a listen only mode. After the speaker's presentation. There will be a question and answer session to ask a question. During the session you will need to press star one on your telephone please be advised that today's conference is being.

Recorded if you require any further assistance. Please press Star then zero I would now like to hand, the conference over to your host today Steven Oliver. Please go ahead.

Okay.

Good afternoon, everyone. This is Stephen Albert Good afternoon, everyone, I'm, Stephen Oliver Vice President marketing and Investor Relations.

Thank you for joining novel Semiconductors first quarter 2022 results conference call.

Im joined today by Gene Sheridan, our chairman, President and CEO and Tom <unk> our CFO .

A replay of this webcast will be available on the Investor Relations section of our website.

Nevertheless, dot com approximately one hour following this call and the recording will be available for approximately 30 days following this call.

All information related to our business is also posted on the Investor Relations section of our website.

Our earnings release and this presentation includes certain non-GAAP financial measures.

Reconciliations of these non-GAAP financial measures with the most directly comparable GAAP measures are included in our earnings release and also posted on our website in the Investor Relations section.

In this conference call. We will also make forward looking statements about future events or about the future financial performance.

You can identify these statements by words like we expect we believe or similar terms, we wish to caution you that such forward looking statements are subject to risks and uncertainties that could cause actual events or results to differ materially from expectations expressed in our forward looking.

<unk>.

Important factors that can affect nevertheless business, including factors that could cause actual results to differ from our forward looking statements are described in the release.

Please also refer to the risk factors affecting nevertheless, as discussed in our SEC filings, including our annual report on Form 10-K filed on March 31 2022.

Our estimates or other forward looking statements may change and never test assumes no obligation to update forward looking statements to reflect actual results changed assumptions or other events that may occur except as required by law.

Now over to Jim Sheridan CEO .

Thank you, Steve and thanks to everyone. Joining today's call. We continue to focus on building, our foundational technology and market leadership position in Gan power IC and.

In particular, we are growing our leadership position in the mobile and consumer segments, while we expand our technology to address the exciting new opportunities in data center solar EDM related market.

As we announced last week and all the cost is now shipped over 50 million units reinforcing our number one position in the power Gen market.

Q1 revenue grew 27% year on year to $6 $7 million and our gross margin of 44% was in line with expectations.

Our lead in the fast and ultra fast charger market was increased by major customer additions Sam.

Samsung's flagship Galaxy S 22, plus in F. 'twenty two ultra have adopted <unk> technology for their 45 walk fast Chargers, our first design win at Samsung and their smallest ever 45 Watt charger.

In addition, vivo has adopted our <unk> inbox with their first folding smartphone the eight inch screen X fold utilizing <unk> for their 80 watt dual USB C charger fast charging from zero to 100% and only 37 minutes.

Motorola's edge, plus smartphone launched with a 68 inbox, Dan fast charger with one watt per cubic centimeter power density and a zero to 50% charge time of only 15 minutes.

In addition, we are working closely with Motorola on a comprehensive co op marketing campaign.

In the emerging and fast growing new segment of ultrafast smartphone Chargers, we've extended our leadership position with a number of additional major customer announcements.

<unk> has adopted our Gan technology for their red meat AMG Mercedes Formula One champion smartphone, which utilizes a compact 120 watt inbox charger that achieved zero to 100% charging and only 37 minutes.

<unk> Neal three launched at mobile World Congress utilizes <unk> to deliver the world's fastest charging time zero to 50% and only five minutes and an impressive one five watts per cubic centimeter power density this translates to big power delivery and a very small form factor.

And the one plus eight utilizing organic the technology for their inbox 150 Watt ultra fast charging.

Beyond our significant smartphone Gan market position now the cost is also leading the way in Gan adoption for notebook Chargers.

Bill was an early adopter of organic technology with their 100 Watt accessory laptop charger launched in 2020, and we followed with a 60 watt optional again charter for latitude laptops in 2021.

We're also announcing another 60 watt charger that is now shipping in box with the Dell Xps plus.

At the same time Xiaomi has launched their 14 inch and 15 inch laptops powered by 100 Watt Inbox gained fast Chargers.

And Lenovo Legion five Gen seven gaming laptops with 135 Watt Gan fast Chargers have launched in April 135, Watt Charger is 40% smaller than legacy charters at a power density over one <unk> per cubic centimeter.

80 Watt hour batteries charged in only 65 minutes.

<unk> is now in mass production with nine of the top 10 mobile Oems across smartphones laptops, and we expect all 10 of the 10 by the end of the year.

Our technology innovation continues at a rapid pace our generation three Gan since technology was launched late last year and has already been adopted for mass production by over 15 customers across multiple end applications, enabling all new levels of energy efficiency fast charging and higher power density.

This week at the prestigious <unk> conference in Nuremberg, Germany, We introduced our highest power rated Gan power IC with proprietary Gan technology.

<unk> 669 delivers 50% more power as the high reliability building block for applications such as for K 8-K, Tvs next generation gaming systems solar micro Inverters and one kilowatt plus data center power supplies.

We started sampling additional high power again, Ice's late last year, which target Datacenters solar eds other related markets customer designs are well underway with dozens of customers across those segments. Many of which are accelerated by their cooperation with our datacenter and EV focus design center.

Both of these design centers offered customers complete capabilities at high frequency high efficiency high density Gan based power system design, our expectations for additional revenues from these new segments across the next few years remain unchanged.

In addition, this quarter, we started sampling our generation four gain Ics on schedule. These enable another 20% cost performance improvement and will serve to further accelerate organic adoption in our target markets.

Quality and reliability continue to be foundational to our company's strategy and expansion plan with.

With our announcement of 50 million units shipped we also announced an unprecedented achievement of zero reported Gan related field failures with 192 billion device hours in the field.

We have another industry first with our 20 year product warranty. This is 10% to 20 times longer than every other power semiconductor company, reflecting our confidence and our commitment again, if not just as reliable and silicon, but actually more reliable courtesy of our integrated protection and robustness circuits and our unique and exhaust of Gan reliability program.

When we combine these achievements with five 8 billion device hours of accelerated reliability testing, we are delivering the level of confidence that our customers need to rapidly transition from silicon began in the multibillion dollar high reliability markets of solar datacenter EV energy storage and beyond.

Finally, I want to update all of you on our sustainability initiatives over the last three years, we have carefully assessed the environmental benefits of both Gan is the next generation material and now the cost of the next generation semiconductor company in.

In January we published the industry's first wideband gap sustainability report that comprehensively quantify the positive impact of Gan power semiconductors and climate change based on global standards.

Today, we are excited to announce that now the task the first semiconductor company worldwide to achieve carbon neutral company status.

From the leading experts in carbon neutrality climate finance natural capital partners, achieving carbon neutral status is another milestone in our mission to use wide bandgap materials to electrify, our world and to help our customers reach their own environmental goals.

With all of these positive achievements for our company, we do want to recognize some short term turbulence specifically in China, given the COVID-19 related shutdowns and some softness in the China smartphone market.

These two factors in combination with some continued non-GAAP component shortages are expected to have some impact on our growth rate in Q2.

Fortunately, we see strength in other regions outside of China, which helps us to maintain a strong Q2 sequential and year on year growth rate, albeit with a mix related modest reduction in our gross margin.

Despite these short term challenges in China, I want to reiterate the strong fundamentals that are driving our business the.

The electrification of our planet and the transition of the $13 billion power semiconductor market from Silicon to Gan is an underlying secular multi decade tailwind for our company.

<unk> number one in fast and ultra fast Chargers, and even though we've shipped over 50 million units.

<unk> represents only about 2% of the charger market less than 1% of the overall legacy silicon opportunity, leaving dramatic adoption and growth ahead.

Organic lead times remained low between 6% and 16 weeks and this is accelerating Gan adoption given continued semiconductor shortages with power silicon lead times and the six plus month range.

We maintain a very healthy balance sheet with over $250 million of cash on the books, which gives us confidence to reach our targeted profitability by 2024 and pursue strategic M&A activities, which will accelerate our top line revenue and increase our customer value as we pursue our mission to become the next generation power semiconductor leader and finally, Dan remains there.

Revolutionary once in a lifetime opportunity to disrupt and redefine the field of power semiconductors and power electronics.

Let me now turn it over to our CFO Todd.

Thanks, Jean and thanks, everyone for joining US today, let me take you through our first quarter numbers and guidance for Q2.

GAAP revenue for the quarter grew to $6 $7 million, representing 27% growth from the first quarter of 2021 mobile demand remained solid throughout the quarter and the non Gan supply constraints that had been impacting customers in the fourth quarter have improved somewhat but continued to be a challenge for some of our.

I would also like to note that last year, we sold our first inbox Gan Chargers in the first quarter, which mitigated what would traditionally would have been a seasonally slower quarter.

GAAP gross margin was 44% in the first quarter.

<unk> with our guidance and flat compared to the fourth quarter of 2021, Despite tsmc's, 20% wafer price increase which would have led to a 6% gross margin reduction.

With regard to expenses, we continue to invest in our global field applications and sales and marketing teams to build out our capability to penetrate new markets.

<unk> into new regions. In addition, we are completing our first audit as a public company. Both investments are reflected in our SG&A spending with a non-GAAP expense of $6 7 million in the first quarter of 2022.

non-GAAP R&D was $5 8 million in the first quarter of 2022, as we continued developing multiple new generations of Gan Ics and invest in new Gan technology.

Our unique application specific design centers to expand into data center solar PV and energy storage markets.

Putting all this together non-GAAP net loss from operations was $9 6 million compared to a net loss from operations of $5 3 million in the first quarter of 2021, as we invest simultaneously across new markets in this rapid growth phase of our company.

In March we completed the redemption of both public and private warrants, adding approximately three 3 million shares of common stock and generating a one time gain.

$51 8 million as a result of the elimination of warrant liability.

Our basic and diluted share count at the end of the first quarter was $123 5 million.

Turning to the balance sheet cash and cash equivalents were $253 8 million inventory was $13 1 million compared to $12 million in the prior quarter as we maintain healthy inventories to support short lead times significant growth.

Upside opportunities with our customers.

Moving onto guidance.

For the second quarter of 2022, GAAP revenues are expected to be between eight and $9 million compared to $5 5 million in the second quarter of 2021.

Next quarter is tracking to be a record quarter for the company representing at least 47% growth from the second quarter of 2021.

Despite softness in Asia due to China shutdowns and some reduction in smartphone sales, we are experiencing upside in other regions as customers convert from silicon to Gan faster, putting us in a position to offset China weakness and to reiterate our expectation to double full year revenue from.

2021.

GAAP gross margin for the second quarter is expected to be approximately 41% plus or minus 1%.

As mentioned earlier, China's softness is being offset by stronger growth in other regions, which have somewhat lower gross margins and is expected to lead to a lower second quarter gross margin mix.

GAAP full year 2022 gross margin is expected at approximately 42% plus or minus 1% as revenues begin to diversify outside of Asia as gene mentioned, our launch of generation four in the second half is expected to fuel margin expansion in the fourth.

Quarter of this year and into 2023, our long term strategy and expectation to achieve system cost parity with silicon in 2023, and deliver 55% gross margin long term is unchanged.

In total our non-GAAP operating expenses in Q2 are expected to be approximately $14 million, which excludes stock based compensation and amortization of intangible assets.

In summary, we are excited to meet this milestone of shipping more than 50 million units and proving our leadership in mobile Gan Chargers, we are looking forward to our exciting new opportunities and datacenter solar and EV.

Gena and I are now ready to take your questions.

Operator, let's begin the Q&A session.

Thank you if you have a question at this time. Please press Star then the number one on your Touchtone telephone. If your question has been answered or you wish to remove yourself from the queue. Please press the pound key.

And our first question comes from the line of Kevin Cassidy with Rosenblatt Securities. Your line is open. Please go ahead.

Sure. Thank you for taking my question.

Quickly, but maybe if you could explain why the other regions have lower gross margin than say in China.

Sure Kevin Hi, This is Jean Thanks for the question, Yes, So last year, we had an opportunity to.

Kick off some major strategic programs in other regions with some pretty strategic customers. We took that opportunity went for it even though the price points were a little bit lower which is not too surprising for the very first program to start their gan adoption.

Knowing full well that we would one.

<unk> set out with higher margin business elsewhere, including China, but two that we would move them over the next few quarters this year to generation for improving the profitability.

So we're kind of weakening that's a higher proportion than we expected, which has led to this sort of mix related gross margin shift, but it also puts us on track to improve the profitability gross margin of those other non China programs.

And move towards margin expansion late in the year as we move them to Gen. Four.

Okay, great and maybe.

If I think out to 2023 would you think your mix.

Assuming things get better in China.

And your gross margins will move up over 45% range again.

Yes, I think we will be headed in that direction of course this year. As a reminder, we had the significant impact of the TSMC, 20%.

Wafer cost increase so that's all factored enrolled into the numbers, we discussed for this year, but that'll be behind us will be squarely on gen. Four late in the year and into next year.

<unk> multi point gross margin expansion into next year as you indicated.

Okay. Thank you.

Thanks, Kevin.

Thank you and our next question comes from the line of Trevor Gino Ski with Needham. Your line is open. Please go ahead.

Yeah, Hey, guys. This is trevor on for Quinn Bolton, So with a 44% gross margin this quarter and the guide to 41% for the full year can you provide some additional color on the headwinds youre seeing as the year progresses, and we understand not raising asps in the near term too.

<unk> gaining share but is there a specific floor on margins.

Would consider raising prices.

Yeah, I'll start maybe Todd could add color of specifics.

Like but as I mentioned with Kevin's question. The main driver is the strategic programs, we committed to last year frankly before the TSMC wafer price increase.

So those are we're happy we did in the end of course because of the short term.

<unk> in China. This is helping to compensate quite a bit but in the end. It drives key top line growth that will ultimately be in line with our gross margin expectations as we transition to gen. Four.

Later in the year.

<unk> anything you want to add to that.

Yes.

But we are still tracking to get 42% is the guidance for the full year plus or minus 1%.

So that is our goal and to answer the second question.

Is there a floor on asps.

Our ultimate goal is to create a system cost parity with silicon. So that is our goal and we're still on track for that occurring in 2023.

Okay. Thank you and are you able to quantify the effect that China had on the quarter.

And revenue in your margin guidance as well.

I could.

I could add again this is gene for Q1 by the way we didn't see a significant impact on revenue we came in in line or even a bit higher than guidance on revenue. There does continue to be non yen component shortages that have some effect, but hard to quantify certainly in Q2 is where we're seeing the short term trying to.

Effect, we think thats, probably about a $2 million ish impact, but luckily with the growth.

And robustness in other regions, that's offsetting good million dollars of that or so so that gives you a sort of a rough idea of the magnitude of the short term plus.

Pluses and minuses between the regions.

Okay. That's helpful. Thank you.

You bet.

Thank you and our next question comes from the line of Ross Seymore with Deutsche Bank. Your line is open. Please go ahead.

Hey, this is asking on behalf of Ross.

Could you double click so I guess with the new guidance numbers for Q2.

And full year topline remaining unchanged. It seems you have to grow at least 50% Q3 Q4. So if you can give us some additional color in terms of how do we look at linearity in those two quarters.

Yes.

We continue to see robust growth in outlook in the second half of the year based on all the number of programs that are now pretty reasonably diversified as we talked about.

I think we mentioned in the past typical seasonality, we expect its probably one third ish revenues in the first half of the year and two thirds in the second half last year was a bit of an anomaly as we've discussed before with xiaomi launching their first inbox in Q1, which is not a typical major production year, its usually a softer quarter in that lead.

Into Q2, so we had a more balanced let's say split between first half and second half last year, but I think this year is still shaping up to be in that range of one third first half two thirds second half.

Thank you so would it be fair to assume that.

Sequential Q4 would be the highest scoring quarter.

Yes, probably so that's typically the case yes.

Thank you.

Yes. Thank you.

Thank you and our next question comes from the line of John <unk> with J C. Js. Your line is open. Please go ahead.

Hi, good afternoon, and thank you for taking my questions. My first one just not to beat a dead horse, but I was wondering if you could give us a little more color on the margin progression through the year, 42% for Q2.

Higher volumes in Q3 and Q4. It does it does that mean, we're going to see a bit of a little bit lower gross margin in one of those two quarters.

As we progress of your average for the year, 42% and kind of give you the reason why.

Todd do you want to handle that recognizing gen. Four is probably the biggest driver, but there is obviously the regional balance and the mix that we've talked about but Todd you want to give a little bit more color.

Yes, as we gave guidance of 41% plus or minus in Q2, you would expect that same guidance coming in Q3 with the margin expansion really coming in Q4 to allow us to hit that 42% plus or minus 1% as gene touched on driven by.

Our sale of Gen four devices, which are allowing us to recapture margin.

Proceed to expanding that.

Okay, Great and then just a little bit more color on the confidence in the second half outlook is that based on discussions with your customers and indications.

What they're producing or is it more firm orders in hand, and kind of how do you how do you.

That visibility in the Assortments of those orders.

Yes, I think it's a combination of both certainly we're very close to our customers very well connected at the Oems and the Oems.

At all levels, that's sort of part of our business model, So that helps and it's based upon.

The Chinese customers view on improving conditions in Q3, and then the second half of the year and then more importantly, really robust and stable.

Revenue outlooks forecasts and production orders for the other regions. So all of those we're candid hand. In addition, gen. Four is not only important to the gross margin.

Expansion later in the year by Gen. Four is already sampling now on schedule as we said earlier and the reception has been phenomenal and that is actually spurring additional programs that could create upside. So we're taking all that into account as we gave our updated guidance.

Understood. Thank you and then Todd I don't know if you've mentioned in the prepared remarks, but did you have any directional commentary on Opex pass Q2.

For the full year, we're not changing our guidance on opex on a non-GAAP basis of $58 million.

With the $14 million in Q2, we expect to continue to move higher in Q3 and Q4.

To track towards that $58 million.

Got it thank you very much.

Thank you and again if you have a question at this time. Please press Star then one and our next question comes from the line of Richard Shannon with Craig Hallum. Your line is open. Please go ahead.

Thanks, guys for taking my question, Todd I guess I just wanted to re verify on the gross margins.

Perhaps I misheard, but I thought you said the opposite numbers of what's in the press release your press releases.

42% in the second quarter, and <unk> 41 for the year, but <unk> been saying the opposite can you verify which one is correct.

Yes for the full our full year guidance for for gross margin is 42% plus or minus 1% and our Q2 guidance for gross margin is 41% plus or minus 1%.

Okay, probably should correct the press release, because it says the opposite so thanks for making sure we got that right.

Let's see here, maybe a question on the Gen four ramp I guess.

How fast will in general and specifically with the Gen. Four do you expect the transition to be like.

One point does it get to say, 50% of your total sales or is that something that happens fairly quickly like within a year or does it take a little bit longer than that.

Yes, great question and each generation can be different depending upon what were adding in terms of features and capability generation three as an example introduced all new integration capabilities called <unk>, which really applies them to brand new designs to take advantage of that Gen. Four is a little bit more classic dye shrink cost reduction with <unk>.

Performance enhancement, but actually serves to drop in replacing Gen three or prior generations very quickly on a pin to pin basis, So that will actually drive the adoption of a lot faster than gen three and as much as we saw and continue to see Gen <unk> picking up very quickly.

Gen four transition will be faster, so I don't feel across the 50% point by Q4 of this year, but probably early next year, it's a pretty quick ramp and transition.

Okay, great to know that things change one last question for me again, just on the charger part of the market here I think in the last couple of calls you've had discussions.

When you provide great detail on on charges that particular power levels and I think about 65% you are expecting a second many cases youll see a second chip.

So I'm wondering if you can kind of profile what youre seeing throughout this year or next year over the next year or whatever about what.

Percentage of wins and <unk>.

Volumes that will be for charters that have double the number of chips and a higher content level.

Yes, no great question.

We especially focused in on or highlight.

Ultra fast charger category, which is typically things that are delivering more than 100 watts of power to a smartphone which is an extraordinary amount and usually once you get to that 100 watt level and up you have to add additional circuitry, it's called <unk> power factor correction that doubles typically the game content and as you go up from 100 lots that can even triple or even.

Drupal again content. So we definitely see that segment growing probably the fastest of all segments we highlighted.

In our prepared remarks, the three categories kind of traditional fast Chargers below 100 watts growing nicely with three major announcements, there Samsung vivo and Motorola, but in the ultrafast category.

We highlighted xiaomi and oneplus eight and there is a whole lot more coming behind that so I think we'll see that ultimately probably the largest segment over time, we'll have to see how that plays out the bigger volume is in the fast charging category today, but ultra fast is the fastest growing and we shouldn't forget about notebooks notebooks are pretty stable strong market for.

It doesn't have the short term, China softness that we talked about.

That's also growing really nicely for us with Dell now going in box with our Gan Chargers Xiaomi launching a family of notebooks with our charters and even Lenovo now with multiple launches, including notebooks. So anyway. It gives you a little bit more color on the different segments and in particular that alter ultrafast category driving more content.

Okay.

Appreciate that color gene and that's all the questions for me. Thank you.

Thank you and our next question comes from the line of Mike.

With Jefferies. Your line is open. Please go ahead.

Hi, Thanks for taking my question.

So the question I have is as you look into 2023 I think you had earlier expressed a view that you.

You thought that you would start to see enterprise and.

Renewable solar kind of.

Programs starting to ramp in 2023 and so the question is do you still believe that to be the case.

<unk>.

And if so is there should we think about the.

Those vertical markets for the products that youre supplying into those vertical markets.

Different either from a.

Our pricing standpoint, or a margin standpoint or.

Would these be very similarly priced on price.

And margin kind of products. Thank you.

Yes, good questions and certainly good memory and we are on track with those plans.

In fact, we announced this week the NB 606 time, which is the highest power version of our <unk> family, but that's the tip of the iceberg, there's all new families that we're already sampling, but havent publically announced that are serving all of those markets you talked about data center solar and.

Energy storage, we're still on track with multiple programs, especially on the data center space that would start ramping in 'twenty, three we think solar and some energy storage with catch a little bit of late 'twenty, three and most of the EV because of the longer development times would start ramping.

In 25, all of these products are much more powerful chips and with that comes a higher price point, so where the mobile charger and consumer chips tend to range around one dollar or now a bit less as we're driving the price of the system costs down closer to the system.

Silicon cost parity as you go into higher power range, we'll see asps that will often be in the 2% to $4 range.

Also given the higher quality reliability demands it sort of fits perfectly with our capability.

Expect and are already seeing higher margins to go with it we've cited before how we expect ultimately mobile and consumer to be probably 10 or 15 points lower.

Then the more industrial.

A barrier to entry markets like data center solar and EV and the combination of both would get us to our long term operating model of $55. So that gives you some sense of the price points improved margin as well as kind of revenue timing of when those things start to rollout and impact the topline.

And thank you and I had a follow up if I may.

On the and I think particularly on the enterprise side, there had been some regulatory.

Kind of efforts to try to drive higher efficiencies.

I'm wondering is.

Is there have you seen any newer developments on this front.

Associated with <unk>.

Been observing with higher energy prices and Thats.

No exactly right and to add a final point, if thats, a titanium plus standard being required in Europe in 2023, which is of course right around the corner. So virtually all of the designs were doing because it's very hard to achieve that level of efficiency standard with silicon virtually all we're doing with our datacenter customers today is.

As demanding that standard titanium plus and that'll be a big piece of our data center.

Revenue Rollouts in.

In 'twenty three so that's a great driver for us for Europe , and keep in mind, most skill designed power space to work around the world. So you have to design usually to your toughest standards. So Europe doesn't just impact Europe sales that could actually impact a lot more than that we're seeing that ripple effect today.

Got you. Thank you.

Thank you Mark.

Thank you. Thank you I would like to ask a follow up question. Please rejoin the queue.

And we do have a follow up question from the line of Kevin Cassidy with Rosenblatt Securities. Your line is open. Please go ahead.

Yes, Thanks for my follow up yes.

Maybe along the lines of what Mark was asking part of your strategy is to have these design centers.

Even though data center design center can you give us a little detail.

Happen there how many people are going higher than I guess the activity of how many customers are utilizing it.

Yeah, great. Thank you for asking about that Kevin we didn't put a big spotlight on it but it is a big story last year, we opened up the design center for data centers.

And earlier this year, we announced the $1 three kilowatt titanium plus full system design, using our Gan Ics and now we're working with specific customers, who are adopting that designed putting it into commercial production and ramp.

We'll rollout next year as we talked about but that design center has a whole roadmap of system level developments and innovations are largely are developed.

Collaboratively with key customers and we can't name the names yet, but as those things become public obviously works will love to share it but we do have multiple customers engaged with that design center to influence the roadmap collaboratively designing these new systems and of course bring them into production using <unk> more recently, we announced in Q1, the automotive or EV.

Design Center out of Shanghai, that's the earlier days, it's in Shanghai.

Center of the storm there, but they are actually being very productive and getting equipment order setting up the lab. There's a small team in general both of these design centers are looking at about a dozen engineers in their first phase and then they'll grow from there and the EV design Center is already looking to produce its first Gan based onboard Chargers.

This year again, collaborating with customers, who are influencing those co designing them with us and then ultimately bringing them to production and we are hopeful even though I reiterated 2025 is our expected EDI revenues, we certainly hope these things accelerate and expect that to accelerate the timing we will see how that plays out and kind of give you updates as the technical achievements.

On the customer announcements can be made.

And the revenue impacts can be further forecasted.

Great. Thank you.

Thanks, Kevin.

Thank you and we have another follow up question from the line of Ross Seymore with Deutsche Bank. Your line is open. Please go ahead.

Yes.

I had a question.

The IPO process.

A key use of proceeds was acquisitions and you've been carrying a pretty healthy cash amount on the balance sheet. If you can give us any update on that area in terms of horizon.

If you have come across some targets et cetera.

Yeah.

Oh, Yes, certainly Jean again, yes, youre exactly right, we anticipate no more than $100 million of our cash on the balance sheet to be needed to fuel, our internal or organic business to reach cash flow positive in 2024, and that's a pretty conservative $100 million. So that leaves us a lot of capital to potentially put to work.

In different ways, we remain really bullish about the opportunities we do see a lot that we're exploring.

Pretty seriously across a number of fields, whether theyre Gan and expanding more in Gan.

In the field of Silicon because every next generation power system does need silicon controller chips or similar.

And hand in hand, with again power device and even in the field of Silicon carbide, which is a nice complement for even higher voltages and higher powers. So while we don't have anything specific to announce our forecast yet today, we are definitely active on that front and look forward to giving you announcements in the future.

Thank you.

Thank you and I'm showing no further questions at this time I would like to hand, the conference back over to Jean Sheridan for any further remarks.

Thank you operator, and thanks, everyone for a great discussion questions.

Joining us today. So thank you so much and lets go again first.

This concludes today's conference call. Thank you for participating you may now disconnect everyone have a great day.

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Good day, Thank you for standing by and welcome to the nerve test semiconductor first quarter 2022 results conference call. At this time all participants are in a listen only mode. After the speaker's presentation. There will be a question and answer session to ask a question during this.

Session, you will need to press star one on your telephone please be advised that today's conference is being recorded if you require any further assistance. Please press Star then zero I would now like to hand, the conference over to your host today Steven Oliver. Please go ahead.

Yeah.

Good afternoon, everyone. This is Stephen Albert Good afternoon, everyone I'm, Steven Oldham, Vice President of corporate marketing and Investor relations. Thank.

Thank you for joining <unk> Semiconductor's first quarter 2022 results conference call.

Im joined today by Gene Sheridan, our chairman, President and CEO and Todd Glickman our CFO .

A replay of this webcast will be available on the Investor Relations section of our website.

Another test semi dot com approximately one hour following this call and the recording will be available for approximately 30 days following this call.

<unk> information related to our business is also posted on the Investor Relations section of our website.

Our earnings release and this presentation includes certain non-GAAP financial measures.

In this conference call. We will also make forward looking statements about future events or about the future financial performance of <unk>.

Important factors that can affect never test business, including factors that could cause actual results to differ from our forward looking statements are described in the release.

Please also refer to the risk factors affecting habits as discussed in our SEC filings, including our annual reports on Form 10-K filed on March 31st 2022.

Our estimates or other forward looking statements may change another test assumes no obligation to update forward looking statements to reflect actual results changed assumptions or other events that may occur except as required by law.

Now over to Jim Sheridan CEO .

Thank you, Steve and thanks to everyone. Joining today's call. We continue to focus on building, our foundational technology and market leadership position in Gan power IC in particular, we are growing our leadership position in the mobile and consumer segments, while we expand our technology to address the exciting new opportunities in data center solar EV.

And related markets.

As we announced last week <unk> now shipped over 50 million units reinforcing our number one position in the power Gen market.

Q1 revenue grew 27% year on year to $6 $7 million and our gross margin of 44% was in line with expectations.

Our lead in the fast and ultra fast charger market was increased by major customer additions.

Samsung flagship Galaxy S 22, plus in F. 'twenty two ultra have adopted <unk> technology for their 45 Watt fast Chargers, our first design win at Samsung and their smallest ever 45 Watt charger.

In addition, vivo has adopted our gain ice's inbox with their first folding smartphone the eight inch screen X fold utilizing our <unk> for their 80 watt dual USB C charger fast charging from zero to 100% and only 37 minutes.

Motorola's edge, plus smartphone launched with a 68 watt inbox and fast charger with one watt per cubic centimeter power density and a zero to 50% charge time of only 15 minutes.

In addition, we are working closely with Motorola on a comprehensive co op marketing campaign in.

In the emerging and fast growing new segment of ultrafast smartphone Chargers, we've extended our leadership position with a number of additional major customer announcements.

<unk> has adopted our Gan technology for their red meat AMG Mercedes Formula One champion smartphone, which utilizes a compact 120, <unk> inbox charger that achieved zero to 100% charging and only 37 minutes.

Real needs <unk> Neal three launched at mobile World Congress utilizes organ ice's to deliver the worlds fastest charging time zero to 50% and only five minutes and an impressive one five watts per cubic centimeter power density this translates to big power delivery and a very small form factor.

And the one plus eight utilizing organically technology for their inbox 150 Watt ultra fast charging.

Beyond our significant smartphone Gan market position now the cost is also leading the way in Gan adoption for notebook Chargers.

<unk> was an early adopter of our Gan technology with their 100 Watt accessory laptop charger launched in 2020, and we followed with a 60 watt optional again charter for latitude laptops in 2021.

We're also announcing another 60 watt charger that is now shipping in box with the Dell Xps plus.

At the same time Xiaomi has launched their 14 inch and 15 inch laptops powered by 100 Watt Inbox again fast Chargers.

And Lenovo Legion five Gen seven gaming laptops with 135 Watt <unk> pest Chargers have launched in April . This 135 Watt charger is 40% smaller than legacy charters at a power density over one <unk> per cubic centimeter huge 80 watt hour batteries charged in only 65 minutes.

<unk> is now in mass production with nine of the top 10 mobile Oems across smartphones laptops, and we expect all 10 of the 10 by the end of the year.

Our technology innovation continues at a rapid pace our generation three Gan technology was launched late last year and has already been adopted for mass production by over 15 customers across multiple end applications, enabling all new levels of energy efficiency fast charging and higher power density.

This week at the prestigious <unk> conference in Nuremberg, Germany, We introduced our highest power rated Gan power IC with proprietary Gan technology.

<unk> 669 delivers 50% more power as the high reliability building block for applications, such as <unk> Tvs next generation gaming systems solar micro Inverters and one kilowatt plus data center power supply.

We started sampling additional high power again, Ics late last year, which target data centers solar EV at other related markets customer designs are well underway with dozens of customers across those segments, many of which were accelerated by their cooperation with our datacenter and EDI focus design center.

Quality and reliability continue to be foundational to our company's strategy and expansion plan with.

With our announcement of 50 million units shipped we also announced an unprecedented achievement of zero reported Gan related field failures with 192 billion device hours in the field.

We have another industry first with our 20 year product warranty. This is 10% to 20 times longer than every other power semiconductor company, reflecting our confidence and our commitment again, if not just as reliable silicon, but actually more reliable courtesy of our integrated protection and robustness circuits and our unique and exhaust of Gan reliability program.

Finally, I want to update all of you on our sustainability initiatives over the last three years, we have carefully assessed the environmental benefits of both Gan as a next generation material and now the cost of the next generation semiconductor company in.

Today, we are excited to announce that now the task.

<unk> semiconductor companies worldwide to achieve carbon neutral company status.

These two factors in combination with some continued non-GAAP component shortages are expected to have some impact on our growth rate in Q2.

Despite these short term challenges in China, I want to reiterate the strong fundamentals that are driving our business the.

The electrification of our planet and a transition of the $13 billion power semiconductor market from Silicon to Gan is an underlying secular multi decade tailwind for our company.

<unk> number one in fast and ultra fast Chargers, and even though we've shipped over 50 million unit.

<unk> represents only about 2% of the charger market less than 1% of the overall legacy silicon opportunity, leaving dramatic adoption and growth ahead.

Organic lead times remained low between 6% and 16 week and this is accelerating Gan adoption given continued semiconductor shortages with power Silicon lead times in the six plus month range.

To maintain a very healthy balance sheet with over $250 million of cash on the books, which gives us confidence to reach our targeted profitability by 2024 and to pursue strategic M&A activities, which will accelerate our top line revenue and increase our customer value as we pursue our mission to become the next generation power semiconductor leader and finally Gan remains there.

Revolutionary once in a lifetime opportunity to disrupt and redefine the field of power semiconductors and power electronics.

Let me now turn it over to our CFO Todd.

Thanks, Jean and thanks, everyone for joining US today, let me take you through our first quarter numbers and guidance for Q2.

<unk> I would also like to note that last year, we sold our first inbox Gan Chargers in the first quarter, which mitigated what would traditionally would have been a seasonally slower quarter.

GAAP gross margin was 44% in the first quarter consistent with our guidance and flat compared to the fourth quarter of 2021, Despite tsmc's, 20% wafer price increase which would have led to a 6% gross margin reduction.

With regard to expenses, we continue to invest in our global field applications and sales and marketing teams to build out our capability to penetrate new markets and expand into new regions. In addition, we are completing our first audit as a public company.

Both investments are reflected in our SG&A spending with a non-GAAP expense of $6 7 million in the first quarter of 2022.

non-GAAP R&D was $5 8 million in the first quarter of 2022, as we continued developing multiple new generations of Gan Ics and invest in new Gan IC technology.

And our unique application specific design centers to expand into data center solar PV and energy storage markets.

In March we completed the redemption of both public and private warrants, adding approximately three 3 million shares of common stock and generating a one time gain of.

$51 8 million as a result of the elimination of warrant liability.

Our basic and diluted share count at the end of the first quarter was $123 5 million.

Upside opportunities with our customers.

Moving onto guidance.

For the second quarter of 2022, GAAP revenues are expected to be between eight and $9 million compared to $5 5 million in the second quarter of 2021.

Next quarter is tracking to be a record quarter for the company representing at least 47% growth from the second quarter of 2021.

Despite softness in Asia due to Chinese shutdowns and some reduction in smartphone sales, we are experiencing upside in other regions as customers convert from silicon to Gan faster, putting us in a position to offset China weakness and to reiterate our expectation to double full year revenue from.

2021.

GAAP gross margin for the second quarter is expected to be approximately 41% plus or minus 1%.

As mentioned earlier, China's softness is being offset by stronger growth in other regions, which have somewhat lower gross margins and is expected to lead to a lower second quarter gross margin mix.

Quarter of this year and into 2023, our long term strategy and expectation to achieve system cost parity with silicon in 2023, and deliver 55% gross margin long term is unchanged.

In total our non-GAAP operating expenses in Q2 are expected to be approximately $14 million, which excludes stock based compensation and amortization of intangible assets.

Gene and I are now ready to take your questions.

Operator, let's begin the Q&A session.

And our first question comes from the line of Kevin Cassidy with Rosenblatt Securities. Your line is open. Please go ahead.

Sure. Thank you for taking my question.

That quickly, but maybe if you could explain why the other regions have lower gross margin than say in China.

Sure Kevin Hi, This is Jean Thanks for the question, Yes, So last year, we had an opportunity to.

Kick off some major strategic programs in other regions with some pretty strategic customers, we took that opportunity and went for it even though the price points were a little bit lower which is not too surprising for the very first program to start their gan adoption.

Knowing full well that we would one.

<unk> set out with higher margin business elsewhere, including China, but two that we would move them over the next few quarters this year to generation for improving the profitability.

So with China weakening that's all.

Your proportion than we expected, which has led to this sort of mix related gross margin shift, but it also puts us on track to improve the profitability gross margin of those other non China programs.

Move towards margin expansion late in the year as we move them to Gen four.

Okay, great and maybe.

I don't think out to 2023 would you think your mix.

Assuming things get better in China the mix in your gross margins will move up over that 45% range again.

Alright, yes, I think it will be headed in that direction of course. This year. As a reminder, we had the significant impact of the TSMC, 20% wafer cost increase so that's all factored enrolled into the numbers. We discussed for this year, but that'll be behind us will be squarely on gen. Four late in the year and into next year and expect multi point gross margin expansion.

Into next year as you indicated.

Okay. Thank you.

Thanks, Kevin.

Thank you and our next question comes from the line of Trevor Gino Ski with Needham. Your line is open. Please go ahead.

Okay.

But is there a specific floor on margins.

Would consider raising prices.

Yeah, I'll start maybe Todd could add color of specifics.

Like but as I mentioned with Kevin's question. The main driver is the strategic programs, we committed to last year frankly before the TSMC wafer price increase.

So those are we're happy we did in the end of course because of the short term softness in China. This is helping to compensate quite a bit but in the end. It drives key top line growth that will ultimately be in line with our gross margin expectations as we transition to gen. Four.

Later in the year.

Todd anything you want to add to that.

Yes.

But we are still tracking to get 42% is the guidance for the full year plus or minus 1%.

So that is our goal and to answer the second question.

Is there a floor on asps.

Our ultimate goal is to create a system cost parity with silicon. So that is our goal and we're still on track to for that occurring in 2023.

Okay. Thank you and are you able to quantify the impact that China had on the quarter.

And revenue in your margin guidance as well.

I could I could add again this is gene.

For Q1 by the way, we didn't see a significant impact on revenue we came in in line or even a bit higher than guidance on revenue. There does continue to be non yen component shortages that have some effect, but hard to quantify certainly in Q2 is where we're seeing the short term trying to effect, we think thats probably about a two.

Million dollar ish.

Packed, but luckily with the growth and robustness in other regions, that's offsetting good million dollars of that or.

Or so so that gives you a sort of a rough idea of the magnitude of the short term plus.

Pluses and minuses between the regions.

Okay. That's helpful. Thank you.

You bet.

Thank you and our next question comes from the line of Ross Seymore with Deutsche Bank. Your line is open. Please go ahead.

Hey, this is asking on behalf of Ross.

Could you double click so I guess with the new guidance numbers for Q2 and full year topline remaining unchanged. It seems you have to grow at least 50% Q3 Q4.

If you can give us some additional color in terms of how do we look at the linearity in those two quarters.

Yes.

We continue to see robust growth in outlook in the second half of the year based on all the number of programs that are now pretty reasonably diversified as we've talked about.

I think we mentioned in the past typical seasonality.

Expect is probably one third ish revenues in the first half of the year and two thirds in the second half last year was a bit of an anomaly as we've discussed before with xiaomi launching their first inbox in Q1, which is not a typical major production year, its usually a softer quarter in that bled into Q2. So we had a more balanced let's say.

Split between first half second half last year, but I think this year is still shaping up to be in that range of one third first half two thirds second half.

Thank you so.

Would it be fair to assume that in terms of sequential Q4 would be the highest growth quarter.

Yes, probably so that's typically the case yes.

Thank you.

Yes. Thank you.

Thank you and our next question comes from the line of John <unk> with J C. Js. Your line is open. Please go ahead.

Hi, Good afternoon. Thank you for taking my questions. My first one just not to beat a dead horse, but I was wondering if you could give us a little more color on the margin progression through the year.

82% for Q2.

Higher volumes in Q3, and Q4 does it does that mean, we're going to see a bit a little bit lower gross margin in one of those two quarters.

As we progress of your average for the year can be 42% and kind of give you the reason why.

Todd do you want to handle that recognizing gen. Four is probably the biggest driver, but there is obviously the regional balance and the mix that we talked about but Todd you want to give a little bit more color.

Yes.

As we gave guidance of 41% plus or minus in Q2, you would expect that same guidance coming in Q3 with the margin expansion really coming in Q4 to allow us to hit that 42% plus or minus 1% as gene touched on driven by.

Our sale of Gen four devices, which are allowing us to recapture margin.

Proceed to expanding that.

Okay, Great and then just a little bit more color on the confidence in the second half outlook is that based on discussions with your customers and indications of what they are part of what they're producing or is it more firm orders in hand, and kind of how do you how do you.

Josh that visibility and assortments of those orders.

Yes, I think it's a combination of both certainly we're very close to our customers very well connected at the Oems and the Oems.

At all levels, that's sort of part of our business model, So that helps and it's based upon.

Both the Chinese customers view on improving conditions in Q3, and then the second half of the year and then more importantly, really robust and stable revenue.

Revenue outlooks forecasts and production orders for the other regions. So all of those we're candid hand. In addition, gen. Four is not only important to the gross margin.

Expansion later in the year, but Gen. Four is already sampling now on schedule as we said earlier and the reception has been phenomenal and thats actually spurring additional programs that could create upside. So we're taking all that into account as we gave our updated guidance.

Understood. Thank you and then Todd I don't know if you've mentioned in the prepared remarks, but did you have any directional commentary on Opex pass Q2.

For the full year, we're not changing our guidance on opex on a non-GAAP basis at $58 million.

With the $14 million in Q2, we expect to continue to move higher in Q3 and Q4 to.

To track towards that $58 million.

Got it thank you very much.

Thank you and again if you have a question at this time. Please press Star then one and our next question comes from the line of Richard Shannon with Craig Hallum. Your line is open. Please go ahead.

Alright, Thanks, guys for taking my question, Todd I guess I just wanted to re verify on the gross margins.

Perhaps I misheard, but I thought you said the opposite numbers of what's in the press release your press release says.

42% in the second quarter, and <unk> 41 for the year, but <unk> been saying the opposite can you verify which one is correct.

Yes for the full our full year guidance for for gross margin is 42% plus or minus 1% and our Q2 guidance for gross margin is 41% plus or minus 1%.

Okay, probably should correct the press release, because it says the opposite so thanks for making sure we got that right.

Let's see here, maybe a question on the Gen four ramp I guess.

How fast will in <unk>.

General and specifically with the Gen. Four do you expect the transition to be like.

One point does it get to say, 50% of your total sales or is that something that happens fairly quickly like within a year or does it take a little bit longer than that.

Yes, great question and each generation can be different depending upon what were adding in terms of features and capability generation three as an example introduced all new integration capabilities called <unk>, <unk>, which which really applies them to brand new designs to take advantage of that Gen. Four is a little bit more classic dye shrink cost reduction with some.

Gen four transition will be faster. So I don't think it will cross the 50% point by Q4 of this year, but probably early next year, it's a pretty quick ramp and transition.

Okay, great to know that things change.

One last question for me again, just on the Charger part of the market here I think in the last couple of calls you've had discussions.

They provide great detail on on charges that particular power levels and I think about 65% you are expecting a second many cases, you'll see a second chip.

Wondering if you can kind of profile what youre seeing throughout this year or next year over the next year or whatever about what.

Percentage of wins and the.

The volumes that will be for charters that have double the number of chips and a higher content level.

Yes, yes, no great question.

Especially focusing on or highlight ultra.

Ultra fast charger category, which is typically things that are delivering more than 100 watts of power to a smartphone which is an extraordinary amount and usually once you get to that 100 watt level and you have to add additional circuitry, it's called POC or power factor correction that doubles typically the game content and as you go up from 101 second even triple or even.

<unk> again content. So we definitely see that segment growing probably the fastest of all segments we highlighted.

In our prepared remarks, the three categories kind of traditional fast Chargers below 100 watts growing nicely with three major announcements, there Samsung and Motorola, but in the ultra fast category.

We highlighted xiaomi and oneplus eight and there is a whole lot more coming behind that so I think we will see that ultimately probably the largest segment over time, we'll have to see how that plays out the bigger volume is in the fast charging category today, but ultrafast is the fastest growing and we shouldnt forget about notebooks notebooks are pretty stable strong market for.

It doesn't have the short term, China softness that we talked about.

That's also growing really nicely for us with Dell now going inbox with our Gan Chargers Xiaomi launching a family of notebooks with our charters and even Lenovo now with multiple launches, including notebooks. So anyway that gives you a little bit more color on the different segments and in particular that alter ultrafast category driving more content.

Okay.

Appreciate that color gene and that's all the questions for me. Thank you.

Thank you and our next question comes from the line of Mark.

With Jefferies. Your line is open. Please go ahead.

Hi, Thanks for taking my question.

So the question I have is as you look into 2023 I think you had earlier expressed a view that you.

You thought that you would start to see enterprise and.

Renewable solar kind of.

Programs starting to ramp in 2023 and so the question is do you still believe that to be the case.

<unk>.

And if so is there should we think about the those vertical markets or the products that youre supplying into those vertical markets.

Different either from a.

On a pricing standpoint, or a margin standpoint or.

Would these be very similarly priced on price and margin kind of products. Thank you.

Yes, no good questions and certainly good memory and we are on track with those plans.

In fact, we announced this week the NV 616 time, which is the highest power version of our <unk> family, but that's the tip of the iceberg, there's all new families that we're already sampling, but havent publically announced that are serving all of those markets you talked about data center solar.

Price point, so where the mobile charger and consumer chips tend to range around one dollar or now a bit less as we are driving the pricing system costs down closer to system Silicon cost parity as you go into higher power range, we'll see asps that will often be in the 2% to $4 range also given the higher quality reliability demands that sort of fits perfectly.

With our capability.

Expect and are already seeing higher margins to go with it. We've cited before have we expect ultimately mobile and consumer to be probably 10 or 15 points lower.

Then the more industrial.

As a barrier to entry markets like data center solar and EV and the combination of both would get us to our long term operating model of <unk>.

<unk> five point, so that gives you some sense of price points improved margin.

As well as kind of revenue timing of when those things start to rollout and impact the topline.

Thank you and a follow up if I may.

On the and I think particularly on the enterprise side there.

There had been some regulatory.

Kind of efforts to try to drive higher efficiencies.

I'm wondering is.

Is there are you seeing any newer developments on this front.

Associated with what we've been observing with higher energy prices and Thats.

No exactly right and to add a final point, if thats titanium plus standard being required in Europe in 2023, which is of course right around the corner. So virtually all of the designs were doing because it's very hard to achieve that level of efficiency standard with silicon virtually all we're doing with our datacenter customers today is.

As demanding that standard titanium plus and that'll be a big piece of our data center revenue Rollouts in.

And 23, so that's a great driver for us for Europe , and keep in mind, most skill designed power space to work around the world. So you have to design usually to your toughest standards. So Europe doesn't just impact Europe sales that could actually impact a lot more than that we're seeing that ripple effect today.

Got you. Thank you.

Thank you Mark.

Thank you if you would like to ask a follow up question. Please rejoin the queue.

And we do have a follow up question from the line of Kevin Cassidy with Rosenblatt Securities. Your line is open. Please go ahead.

Yes, Thanks for my follow up.

I guess, maybe along the lines what Mark was asking part of your strategy is to have these design centers.

Even our data Center design Center can you give us a little details of what's happened there and how many people get higher than I guess the activity of how many customers there are utilizing it.

Yeah, great. Thank you for asking about that Kevin we didn't put a big spotlight on it but it is a big story last year, we opened up the design center for data centers.

And early this year, we announced the $1 three kilowatt titanium plus full system design, using our Gan Ics and now we're working with specific customers, who are adopting that designed putting it into commercial production ramp which will rollout next year as we talked about but that design center has a whole roadmap of system level development.

And innovations are largely are developed.

We announced in Q1, the automotive or EV design center out of Shanghai, That's earlier days.

Shanghai So it's in the center of the storm there, but they are actually being very productive and getting equipment order setting up the lab. There's a small team in general both of these design centers are looking at about a dozen engineers in their first phase and then they'll grow from there and the EV design Center is already looking to produce its first Gan based onboard.

<unk> later this year again collaborating with customers who are influencing those co designing them with us and then ultimately bringing them to production and we are hopeful even though I reiterated 2025 is our expected revenue.

We certainly hope these things accelerate and expect that to accelerate the timing, we will see how that plays out and kind of give you updates as the technical achievements are done the customer announcements can be made.

And the revenue impacts can be further forecasted.

Great. Thank you.

Thanks, Kevin.

Thank you and we have another follow up question from the line of Ross Seymore with Deutsche Bank. Your line is open. Please go ahead.

Yes.

I had a question.

During the IPO process.

A key use of proceeds was acquisitions and you've been carrying a pretty healthy cash amount on the balance sheet. If you can give us any update on that area in terms of horizon or if you've come across some targets.

Thank you.

Yes, certainly.

And again, yes, youre exactly right, we anticipate no more than $100 million of our cash on the balance sheet to be needed to fuel, our internal or organic business to reach cash flow positive in 2024, and that's a pretty conservative $100 million. So that leaves us a lot of capital to potentially put to work in different ways, we remain really bullish.

And about the opportunities we do see a lot that we're exploring pretty.

Pretty seriously across a number of fields, whether theyre Gan and expanding more in Gan.

In the field of Silicon because every next generation power system does need silicon controller chips or similar.

Thank you.

Thank you and I'm showing no further questions at this time I would like to hand, the conference back over to Jean Sheridan for any further remarks.

Thank you operator, and thanks, everyone for a great discussion questions.

Joining us today. So thank you so much and lets go again first.

This concludes today's conference call. Thank you for participating you may now disconnect everyone have a great day.

Q1 2022 Navitas Semiconductor Corp Earnings Call

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