Navitas Semiconductor Corporation (NASDAQ:NVTS) Q4 2022 Earnings Call Transcript

Ross Seymore: Hi guys. Thanks for let me speak in a follow on here. The end market color again is very helpful. I just wanted to walk through just a little bit of your view on the mobile market. I know you said it’ll start growing again in the second quarter. Can you just talk about where the channel inventory is and if I’m doing my math at all, correct. It seems like you didn’t ship very much at all in the fourth quarter itself into the mobile market. Was that generally correct in order to get the channel inventory down before it starts popping back?

Gene Sheridan: Yes, Q4 and Q1 were both pretty soft, certainly not zero, but certainly soft compared to expectations and even prior quarters, we don’t report channel inventory, but we certainly see that significantly reduced and hopefully bottomed out. And that only adds to our confidence. Coupled with actual increased order intake, we have a very strong backlog fully booked out on Q1, strong bookings into Q2 and an increased forecast from the customer. So all of that taken together leads to our anticipation of that Q2 recovery.

Ross Seymore: And is there a seasonality to that business or is the channel dynamics and China reopening and the prevalence of a huge number of design wins, much more important to think about than any sort of seasonal pattern?

Gene Sheridan: No, I think seasonality is always a factor in mobile and consumer, Q1 is typically soft anyway, independent of this unique situation. You’ve also got Chinese New Year, which always has an impact both on consumption and production. So I think all of that rolls together to add to sort of a softer or modest Q1. And probably then adds to the recoveries that we’re seeing in Q2.

Ross Seymore: Perfect. Thanks guys.

Gene Sheridan: Thanks Ross.

Operator: This concludes the Q&A portion of the call and concludes the Navitas Semiconductor fourth quarter 2022 earnings conference call. We thank you for your participation. You may now disconnect.