Navitas Semiconductor Corporation (NASDAQ:NVTS) Q3 2023 Earnings Call Transcript

Kevin Cassidy: And I guess I would assume that 4 major new tech platforms that you have are all going to be margin accretive?

Gene Sheridan -: Yeah, exactly. We generally expect any new products, especially big ones like these, we’re going to be highly valuable in bringing our margins up, accelerating that margin expansion and delivering margins that are well above whatever the corporate average is at the time.

Kevin Cassidy: Okay. Great. Thanks again. Thanks and congratulations again. Here we go.

Operator: Your next question comes from Jack Egan of Charter Equity Research. Your line is open.

Jack Egan: Hey guys. Thanks for taking the follow up. I just have one quick one. I was curious about the inventory write-off that you had in the quarter. Was that just kind of like a onetime thing? Or could it be implying that there’s some risk of obsolescence with some of your products. I could see also how see how that’s just the technology moving so fast that things become obsolete pretty quickly. But I’m just curious on your thoughts on that.

Gene Sheridan -: Yes, Jack, good question and you nailed it. You answered the question for me, Ames. So the write-off had to do with older generation Gen 1, Gen 2 product. And our customer base, as we want them to, is moving very quickly to of our Gen 3, Gen 4 and beyond products, and that’s happening right now. And you try to make kind of balance that, balance that transition, and it’s hard to do. And so what we ended up this quarter as we look out over the next 12 to 15 months. We had some older generation product on the books, and the right thing to do is take a reserve against it. So it’s a onetime thing against those products. And again, it’s something we evaluate every quarter. But that’s what drove it. So it’s really about a transition in next-gen products.

Jack Egan: Got it. That make sense. Okay. well, that’s all for me. Thanks.

Operator: [Operator Instructions] And as there are no further questions, I would like to thank our speakers for today’s presentation, and thank you all for joining us. This now concludes today’s conference. You may now disconnect.