Navitas Semiconductor (NVTS) reported its first-quarter results after Tuesday's closing bell, and the numbers were better than Wall Street expected. The company posted a loss of four cents per share, beating the consensus estimate for a loss of five cents. Revenue came in at $8.6 million, which was 5.2% above the $8.17 million analysts were looking for.
The key driver was what Navitas calls "high-power markets" — think data centers, electric vehicles, and industrial applications. That segment grew about 35% year-over-year and now makes up the majority of revenue. The company's non-GAAP gross margin also improved to 39%, up from 38.7% last quarter and 38.1% a year ago.
CEO Chris Allexandre framed the quarter as a milestone in the company's strategic pivot. "The first quarter marked a return to top-line sequential growth as we executed on our strategic transformation to Navitas 2.0 by continuing to pivot away from mobile and consumer to focus on high-power markets with our GaN and high-voltage SiC solutions," he said.
Looking ahead, Navitas sees second-quarter revenue in the range of $9.5 million to $10.5 million, well above the $8.92 million analysts had penciled in. That's a pretty strong signal that the pivot is gaining traction.
So why did the stock drop 7.32% to $16.27 in extended trading? Sometimes the market just wants more. Or maybe it's the usual after-hours noise. Either way, the fundamentals tell a cleaner story: Navitas is executing on its plan, and the numbers are moving in the right direction.
