In the latest trading session, HP (HPQ) closed at $31.95, marking a -1.99% move from the previous day. This move lagged the S&P 500's daily loss of 1.15%. Meanwhile, the Dow lost 0.71%, and the Nasdaq, a tech-heavy index, lost 0.13%.
Coming into today, shares of the personal computer and printer maker had lost 7.81% in the past month. In that same time, the Computer and Technology sector lost 1.37%, while the S&P 500 gained 1.44%.
Wall Street will be looking for positivity from HP as it approaches its next earnings report date. In that report, analysts expect HP to post earnings of $1.05 per share. This would mark year-over-year growth of 5%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $15.8 billion, up 3.34% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.30 per share and revenue of $65.97 billion, which would represent changes of +13.46% and +3.92%, respectively, from the prior year.
It is also important to note the exact changes to analyst estimates for HP. exact revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.12% lower. HP is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note HP's current valuation metrics, including its Forward P/E ratio of 7.57. For comparison, its industry has an average Forward P/E of 7.57, which means HP is trading at a no noticeable deviation to the group.
Meanwhile, HPQ's PEG ratio is currently 1.89. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. HPQ's industry had an average PEG ratio of 1.94 as of yesterday's close.
The Computer - Mini computers industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 51, which puts it in the top 21% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Tara Duggan is a Project Management Professional (PMP) specializing in knowledge management and instructional design. For over 25 years she has developed quality training materials for a variety of products and services supporting such companies as Digital Equipment Corporation, Compaq and HP. Her freelance work is published on various websites.
Tara Duggan is a Project Management Professional (PMP) specializing in knowledge management and instructional design. For over 25 years she has developed quality training materials for a variety of products and services supporting such companies as Digital Equipment Corporation, Compaq and HP. Her freelance work is published on various websites.
PALO ALTO, Calif., Aug. 01, 2022 (GLOBE NEWSWIRE) -- HP Inc. (NYSE: HPQ) (“HP” or the “Company”) announced today that it has extended the expiration date of the previously announced offer to exchange (the “Exchange Offer”) any and all outstanding notes (the “Poly Notes”) of Plantronics, Inc. (NYSE: POLY) (“Poly”) for up to $500,000,000 aggregate principal amount of new notes to be issued by the Company (the “HP Notes”). HP hereby extends such expiration date from 11:59 p.m., New York City time, on August 1, 2022, to 5:00 p.m., New York City time, on August 15, 2022 (as the same may be further extended, the “Expiration Date”).
At 5:00 p.m., New York City time, on July 18, 2022 (the “Early Participation Date”), the previously announced solicitation of consents to adopt certain proposed amendments (the “Amendments”) to the indenture governing the Poly Notes (the “Poly Indenture”) expired. The requisite consents were received to adopt the Amendments with respect to all outstanding Poly Notes at the Early Participation Date, and Poly executed the supplemental indenture to the Poly Indenture with respect to the Amendments on July 25, 2022. The Amendments will become operative only upon the settlement of the Exchange Offer.
The Exchange Offer is being made pursuant to the terms and subject to the conditions set forth in the offering memorandum and consent solicitation statement dated June 27, 2022 (as amended from time to time prior to the date hereof, the “Offering Memorandum and Consent Solicitation Statement”), and is conditioned upon the closing of the Company’s acquisition of Poly (the “Acquisition”), which condition may not be waived by HP, and certain other conditions that may be waived by HP.
The settlement date for the Exchange Offer will be promptly after the Expiration Date and is expected to occur no earlier than the closing date of the Acquisition, which is expected to be completed by the end of the calendar year 2022, subject to customary closing conditions, including regulatory approvals.
Except as described in this press release, all other terms of the Exchange Offer remain unchanged.
As of 5:00 p.m., New York City time, on August 1, 2022, holders validly tendered $490,556,000 in aggregate principal amount of Poly Notes pursuant to the Exchange Offer. Tenders of Poly Notes made pursuant to the Exchange Offer may be validly withdrawn at or prior to the Expiration Date.
Documents relating to the Exchange Offer will only be distributed to eligible holders of Poly Notes who complete and return an eligibility certificate confirming that they are either a “qualified institutional buyer” under Rule 144A or not a “U.S. person” and outside the United States under Regulation S for purposes of applicable securities laws, and a non U.S. qualified offeree (as defined in the Offering Memorandum and Consent Solicitation Statement). The complete terms and conditions of the Exchange Offer are described in the Offering Memorandum and Consent Solicitation Statement, copies of which may be obtained by contacting D.F. King & Co., Inc., the exchange agent and information agent in connection with the Exchange Offer, at (888) 605-1956 (toll-free) or (212) 269-5550 (banks and brokers), or by email at [email protected] The eligibility certificate is available electronically at: www.dfking.com/hp and is also available by contacting D.F. King & Co., Inc.
This press release does not constitute an offer to sell or purchase, or a solicitation of an offer to sell or purchase, or the solicitation of tenders or consents with respect to, any security. No offer, solicitation, purchase or sale will be made in any jurisdiction in which such an offer, solicitation or sale would be unlawful. The Exchange Offer is being made solely pursuant to the Offering Memorandum and Consent Solicitation Statement and only to such persons and in such jurisdictions as are permitted under applicable law.
The HP Notes offered in the Exchange Offer have not been registered under the Securities Act of 1933, as amended, or any state securities laws. Therefore, the HP Notes may not b offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act of 1933, as amended, and any applicable state securities laws.
About HP Inc.
HP Inc. (NYSE: HPQ) is a technology company that believes one thoughtful idea has the power to change the world. Its product and service portfolio of personal systems, printers, and 3D printing solutions helps bring these ideas to life. Visit http://www.hp.com.
This document contains forward-looking statements based on current expectations and assumptions that involve risks and uncertainties. If the risks or uncertainties ever materialize or the assumptions prove incorrect, the results of HP and its consolidated subsidiaries may differ materially from those expressed or implied by such forward-looking statements and assumptions.
All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including, but not limited to, any statements regarding the consummation of the Acquisition; the potential impact of the COVID-19 pandemic and the actions by governments, businesses and individuals in response to the situation; margins, expenses, effective tax rates, net earnings, cash flows, benefit plan funding, deferred taxes, share repurchases, foreign currency exchange rates or other financial items; any projections of the amount, timing or impact of cost savings or restructuring and other charges, planned structural cost reductions and productivity initiatives; any statements of the plans, strategies and objectives of management for future operations, including, but not limited to, our business model and transformation, our sustainability goals, our go-to-market strategy, the execution of restructuring plans and any resulting cost savings, net revenue or profitability improvements or other financial impacts; any statements concerning the expected development, demand, performance, market share or competitive performance relating to products or services; any statements concerning potential supply constraints, component shortages, manufacturing disruptions or logistics challenges; any statements regarding current or future macroeconomic trends or events and the impact of those trends and events on HP and its financial performance; any statements regarding pending investigations, claims, disputes or other litigation matters; any statements of expectation or belief, including with respect to the timing and expected benefits of acquisitions and other business combination and investment transactions; and any statements of assumptions underlying any of the foregoing. Forward-looking statements can also generally be identified by words such as “future,” “anticipates,” “believes,” “estimates,” “expects,” “intends,” “plans,” “predicts,” “projects,” “will,” “would,” “could,” “can,” “may,” and similar terms.
Risks, uncertainties and assumptions include factors relating to the consummation of the Acquisition and HP’s ability to meet expectations regarding the accounting and tax treatments of the Acquisition; the effects of the COVID-19 pandemic and the actions by governments, businesses and individuals in response to the situation, the effects of which may supply rise to or amplify the risks associated with many of these factors listed here; the need to manage (and reliance on) third-party suppliers, including with respect to component shortages, and the need to manage HP’s global, multi-tier distribution network, limit potential misuse of pricing programs by HP’s channel partners, adapt to new or changing marketplaces and effectively deliver HP’s services; HP’s ability to execute on its strategic plan, including the previously announced initiatives, business model changes and transformation; execution of planned structural cost reductions and productivity initiatives; HP’s ability to complete any contemplated share repurchases, other capital return programs or other strategic transactions; the competitive pressures faced by HP’s businesses; risks associated with executing HP’s strategy and business model changes and transformation; successfully innovating, developing and executing HP’s go-to-market strategy, including online, omnichannel and contractual sales, in an evolving distribution, reseller and customer landscape; the development and transition of new products and services and the enhancement of existing products and services to meet evolving customer needs and respond to emerging technological trends; successfully competing and maintaining the value proposition of HP’s products, including supplies; challenges to HP’s ability to accurately forecast inventories, demand and pricing, which may be due to HP’s multi-tiered channel, sales of HP’s products to unauthorized resellers or unauthorized resale of HP’s products or our uneven sales cycle; integration and other risks associated with business combination and investment transactions; the results of the restructuring plans, including estimates and assumptions related to the cost (including any possible disruption of HP’s business) and the anticipated benefits of the restructuring plans; the protection of HP’s intellectual property assets, including intellectual property licensed from third parties; the hiring and retention of key employees; the impact of macroeconomic and geopolitical trends, changes and events, including the Russian invasion of Ukraine and its regional and global ramifications and the effects of inflation; risks associated with HP’s international operations; the execution and performance of contracts by HP and its suppliers, customers, clients and partners, including logistical challenges with respect to such execution and performance; changes in estimates and assumptions HP makes in connection with the preparation of its financial statements; disruptions in operations from system security risks, data protection breaches, cyberattacks, extreme weather conditions or other effects of climate change, medical epidemics or pandemics such as the COVID-19 pandemic, and other natural or manmade disasters or catastrophic events; the impact of changes to federal, state, local and foreign laws and regulations, including environmental regulations and tax laws; potential impacts, liabilities and costs from pending or potential investigations, claims and disputes; and other risks that are described (i) in “Risk Factors” in the Offering Memorandum and Consent Solicitation Statement and (ii) in our filings with the SEC, including but not limited to the risks described under the caption “Risk Factors” contained in Item 1A of Part I of our Annual Report on Form 10-K for the fiscal year ended October 31, 2021, as well as in Item 1A of Part II of our Quarterly Reports on Form 10-Q for the fiscal quarter ended January 31, 2022 and the fiscal quarter ended April 30, 2022. HP does not assume any obligation or intend to update these forward-looking statements.
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As work and school have pivoted to remote environments in the last couple years, computer sales have soared to record highs. Laptops and mobile technology have become even more necessary in today’s households, offices and classrooms.
But for college students, new laptops often come at steep, unaffordable prices. Fortunately, there are ways to get a free laptop for college. Through scholarship opportunities, charitable donation programs and college student discount deals from top brands, tech is becoming more accessible to students.
Free laptop programs provide computers at no cost to students. Funded by colleges, educational nonprofits and scholarships from leading tech brands, these programs empower students with reliable tech to ensure academic and professional success.
Keep in mind: Most free laptop programs have specific eligibility requirements, including enrollment in an accredited four-year degree program.
Yes. Many colleges distribute free laptops at no cost to their students. The following are just a few examples of universities in the U.S. that certain free technology to incoming students:
As you start applying to schools, check out their IT department websites. These usually outline any free or discounted laptop promotions for new students.
If your college or university doesn’t offer free laptops as a part of enrollment, check out your school’s library. Temporary laptop loans are typically available for students to use on campus. For commuter students who prefer to study off campus, local libraries are also a great option for borrowing free laptops.
If you don’t have access to a laptop through school and you’re experiencing financial challenges, don’t worry. Several nonprofit organizations provide free laptops to students in need on a rolling basis.
Since 1999, the On It Foundation has provided free computers to low-income K-12 students in U.S. public schools. The nonprofit collaborates with educational institutions, businesses and local community members to collect and distribute donated computers. The organization also offers technology training and internet access to families.
To apply for a free computer, a parent or guardian should contact the On It Foundation via a letter or an email with a request that includes proof of financial need.
Receiving hundreds of requests per day, Computers with Causes gives over 20,000 donated computers annually as a part of the Giving Center Charity. Free computers are available to anyone. However, the organization prioritizes students and teachers, people experiencing housing insecurity, disabled veterans and military families.
Students can apply online and expect to receive confirmation of their free computer within a month.
High school students may be eligible for scholarship and grant opportunities that offer free laptops. These programs are often competitive and selective. Some are fairly accessible but require fundraising to cover the costs of technology.
Each year, the Dell Scholars Program provides high school graduates with a $20,000 educational scholarship, a free laptop, and textbook credits through Chegg—plus professional and personal resources to help navigate life challenges during the college years.
Applications open in October, so if you’re a rising high school senior, you can start submitting materials this fall. To qualify, candidates should have a minimum 2.4 GPA and be Pell Grant eligible. Applicants should also be on track to graduate in the same academic year they apply, and they should plan to enroll in a bachelor’s program immediately after graduation.
Founded in 2015, Laptops 4 Learning (L4L) equips students with computer access to help them excel in school and the workplace. The mission-driven nonprofit also supports military veterans, who are also eligible for a laptop.
To obtain a free computer, register for an account on L4L’s website. From there, students should solicit their networks and local communities for donations to cover costs. Once sufficient funds are raised, students receive their free laptops.
The following nonprofits and online platforms sell refurbished laptops at a discounted rate for students seeking reliable, affordable products. These are great options if you’re looking to save and invest in a device.
This nonprofit organization sells discounted desktop and laptop computers. It also provides a variety of tech services, including computer repair and recycling. With a mission to close the “digital divide”, PCs for People serves low-income families and individuals with disabilities.
Starting at $145 for a laptop, PCs for People currently offers brands like HP, Dell and Lenovo.
Dell Refurbished sells an array of refurbished Latitude models at a discount. Offering thorough computer inspections plus “cosmetic grades” to ensure top-notch quality, bargain shoppers can snag a like-new laptop starting around $400.
Originally founded by college students in California, Notebooks for Students (NFS) works with tech brands to provide refurbished, discounted laptops to students of all ages.
The organization’s homepage offers an extensive lineup of laptops categorized by school grade level and high-performance laptops. NFS offers both Mac and PC products, and prices start around $200.
Unlike most refurbished laptop sellers, NFS includes a free four-year warranty with the purchase of a laptop. This warranty includes full tech support to troubleshoot hardware repair, software installation and file recovery.
An e-commerce platform, ConnectAll aims to provide affordable, refurbished laptops and desktops to nonprofits and low-income individuals.
The organization’s laptop inventory is sortable by form factor, storage capacity, memory and operating system. With options for Mac and PC, prices range from about $100 to $1,000. This includes free shipping, a one-year extended warranty and pre-installed Microsoft Windows and Office software.
If you’re set on purchasing a brand-new device, many trusted tech brands offer annual educational discounts that cater to college students. Some of these laptop offers include bundled add-ons like gift cards and pre-installed software.
Dell’s student discount specials include savings of up to $200 on new models like the Inspiron 14. Dell offers a no-interest payment plan in their education pricing. The company also includes the option to install Microsoft Office software like Word, Excel and PowerPoint.
Microsoft offers up to a 10% discount on select products for students, teachers, parents and the military. To access this discount, check your eligibility by logging in to your Microsoft account when prompted. From there, start shopping and the best price will appear as you browse.
Free access to Office 365 is also included when purchasing with a student discount. Note that this discount cannot be combined with other offers.
Apple is known for its educational discounts for students and parents, faculty and staff and even homeschool teachers. Shopping with a Verified email address and institutional affiliation can save students up to $100 on Apple products including iMac, MacBook Pro, Macbook Air and iPads.
Education pricing also includes an Apple gift card (up to $150 in value) when purchasing select items.
Through Samsung’s Education Offer Program, students can purchase a brand-new Galaxy Chromebook at a fraction of the retail cost, saving up to $575. Samsung’s back-to-school bargains are not limited to laptop deals. Students and educators can shop for tablets, phones, watches, audio accessories and more.
Today in Tech
Regardless of budget limitation, monday.com offers something for everyone. Even if you are working on a team of two with no budget, monday.com can help you get your project done on time and with limited risk. If you are a small two-person team, you can enjoy monday.com for free. If you’re part of a growing team, use advanced project-tracking features, automations and integrations for as little as $8 to $16 per team member per month, if billed annually (minimum of three seats per plan).
For small teams with little incoming revenue, the free version offers the ability to manage projects with customizable boards so your team works on its own terms. You can create custom boards using over 200 templates and unlimited docs. Your team members can even work on the go via monday.com’s iOS and Android apps. But, once you’re ready to move on to more complex, large-team projects, monday.com’s plans grow with your needs.
If you’re working with a growing or mature team, you can manage simple projects all the way up to multiple complex projects. Advanced integrations and plan features allow you to perform work using the tools that help your team best communicate, manage risk, plan and stick to a budget, allocate resources as needed and track your project’s progress, iterations, timing and completion.
For example, automations help your team stay on track with little added effort. With a few clicks, you can set a notification to alert you if any task is over budget or a team member has fallen behind. Further, Gantt charts show you how your project is progressing, and what needs to happen next. Zoom, Slack, synced calendars, Salesforce, Google Docs and other integrations allow for seamless and intuitive team collaboration across your organization.
Who should use it:
Startup businesses on a shoestring budget should consider monday.com. It offers a free version and free trials so users can test more advanced tiers as their companies can afford them. For more information, check out our monday.com review.
The following is a summary of policies and procedures specific to the Department of Civil Engineering. Other University policies and procedures in the catalog also apply to Civil Engineering majors. These policies apply to all Civil Engineering students. It is the students' responsibility to understand these policies. The Department will not hear petitions for deviation from articulated policies made by students who disregard catalog policy.
The purpose of this requirement is to assure that all Civil Engineering majors attain the minimum level of competency in all their coursework required for a Bachelor of Science Civil Engineering Degree. All courses taken in the major must be completed with a grade of "C-" or better. In addition, the following minimum grade requirements must be met:
Only current FE/EIT approved calculators will be allowed during in-class civil engineering exams. Use of an unapproved calculator will be considered an act of academic dishonesty. Per CE Department policy, the only calculators allowed for quizzes, tests, and exams are:
Mobile communication devices may not be substituted for calculators and are strictly prohibited from all quizzes and exams.
Incomplete grades are issued only in accordance with University policy.
Students may repeat no more than a total of 28 units at Sacramento State. (Students may repeat a maximum of 16 units for grade forgiveness, and students may repeat an additional 12 units for grade average beyond the 16 units of forgiveness, for a maximum of 28 total units.) Once the 28-unit limit has been reached, no exceptions will be granted.
Undergraduate engineering and civil engineering courses that are used to meet the Bachelor of Science in Civil Engineering degree requirements may be repeated only twice (for a total of three attempts). Grades of the second and third attempt will be averaged in grade point calculations, and no grade can be earned after the third attempt.
Students seeking reinstatement to the Civil Engineering Major must complete a Reinstatement Petition (obtained at Admissions and Records). That petition will be reviewed by the Department Chair for approval or rejection. Note: The only basis for reinstatement is the expectation (supported by evidence provided by the student) that the student is now likely to progress towards the satisfactory completion of the Department's degree requirements in a timely manner.
Philately scholarship scheme by postal department
CUSAT Result 2022: CUSAT Rank List released for UG courses on admissions.cusat.ac.in
HP TET admit card 2022 for JBT and Shastri exams out, get @ hpbose.org
The Times of India Education is a leading source that provides the reliable and latest news on education and jobs. Get the breaking news on CBSE, ICSE, Board Exams, colleges, universities, competitive exams, date sheet, admit card, answer key, result, admission, test analysis, job news, recruitment notifications, etc. The Times of India Education extensively covers subjects on Education news, Job news, CBSE, ICSE, Board Exams, Entrance Exams, Admission, Study Abroad, etc. Stay connected with The Times of India for the latest updates in the education sector.
Navitas Semiconductor Corporation (NASDAQ:NVTS) is among the leading developers of gallium nitride (GaN) components used to manage electrical power, with more than 50 million devices in the field.
A public company since October 2021, sales doubled in 2021 and are expected to double again in 2022 to about $50 million.
Five actively targeted markets - mobile chargers, consumer electronics, data centers , residential solar, and electric vehicles - provide a total addressable market for GaN components of ~ $10 billion annually by 2027.
NVTS is arguable in the right place, at the right time, with the right technology to capitalize on this opportunity, and provide well above market returns.
The electronics used for the conversion and control of electrical power - power electronics - are undergoing a transition from silicon based components to those built with GaN and other materials.
Applications for power electronics include the ubiquitous wall chargers and in-the-box power bricks that convert household AC power to the DC power needed to charge phones or laptops, the internal power supplies in consumer electronics, power supplies in data centers, power conversion devices for residential solar systems, and the power management equipment to charge and propel electric vehicles.
The shift from legacy silicon to integrated GaN offers significant real-world advantages - reduced charging times, smaller size, less weight, increased reliability, higher efficiency, wider operating temperature range, smaller and in some cases fewer components.
This transition is on the cusp of widespread commercial deployment. More than 50 million GaN power devices are in operation, but that is only a tiny fraction of the potential market.
In this article, we will discuss the Navitas origin story, technology, manufacturing, targeted markets, financial status, competitors, valuation, risks, and some implications for investors. See their slide deck here.
Navitas was founded in 2014, with initial funding by the founders plus venture capital from Capricorn Investment Group, Atlantic Bridge, and seed investor Malibu IQ. Navitas generated first product revenue in 2018.
On 7 May 2021, Navitas and Live Oak Acquisition Corp II announced an agreement for a business combination. Between the announcement and execution of the business combination, Live Oak sold an additional 17.3 million shares at $10 per share to institutional investors.
On 19 October 2021, the business combination was executed, with an injection of $298 million net cash, and the resultant entity, Navitas Semiconductor Corporation, went public. The prior owners of legacy Navitas received 39.5 million shares.
NVTS started trading on 20 October 2021, and per Seeking Alpha, the stock closed at $12.80 that day.
There is substantial insider ownership; as of December 31, 2021, executive officers, directors and their affiliates, including the investment funds they represent, as a group beneficially owned approximately 34% of the outstanding Class A Common Stock. A significant amount of the insider ownership is subject to 6-36 months lockup periods, starting from October 2021.
Five of the seven members of the board come from Capricorn, Atlantic Bridge, Malibu, or Live Oak.
As of December 2021, NVTS had about 160 employees, of whom about 60% work in research and development.
Navitas invented the first commercial GaN power IC (integrated circuit), marketed as GaNFast™. A good summary is provided here.
They focus heavily on the advantages provided by this approach, which integrates the core power transistor with the driver and other related components into a single chip, reducing parts count and improving reliability.
GaN's much higher operating frequency vs. legacy silicon allows the physical size of inductor and capacitor components to be significantly smaller, reducing overall product size and weight.
To expedite design-in, they offer a proprietary AllGaN™ process design kit, a 'how-to' guide for designers to create new GaN based device and circuits, and consider this a major strength. In addition, NVTS has established three dedicated design centers in China for mobile, data center, and EV applications; Shenzhen, Hangzhou, and Shanghai.
Navitas' third generation of GaNFast™ power ICs, with autonomous GaNSense™ technology, was introduced in Q3 2021. GaNSense technology enables real-time, accurate sensing of voltage, current and temperature to further Improve total system performance and robustness.
The fourth generation is primarily a "classic die shrink" with some performance enhancements, and is expected to yield a 20% improvement in price/performance. Sampling in Q2, it is expected to be introduced in the second half of 2022. As a pin compatible drop in for the current 3rd generation, it is expected to rapidly reach 50% of shipments by early 2023.
Extending the product line, in May 2022 the NV6169 was introduced, the highest power product to date, targeting "higher-power applications such as 400-1000 W 4K/8K TVs and displays, next-generation gaming systems, 500 W solar micro-inverters, 1.2 kW data-center SMPS (power supply), and up to 4 kW / 5 hp motor drives".
In its first acquisition since going public, NVTS acquires VDD Tech in July 2022, adding technology to support higher power consumer, data center, and EV applications.
NVTS has a significant intellectual property position, with about 145 patents granted or in process.
NVTS is fabless; the actual manufacturing of devices is outsourced to Taiwan Semiconductor Manufacturing Company (TSM), building on a relationship established in 2014 to develop and refine the GaN manufacturing process.
NVTS devices are currently manufactured at TSMC Fab 2, with a GaN on silicon substrate process, using 250-350 nm equipment, on 6" wafers. Yields are high, 90-95%. As manufacturing volume increases, migration to a higher capacity 8" fab line is likely.
This fabrication capacity is readily available and cheaper than the state of the art sub-10 nm equipment and 12" wafer fabs preferred for the latest CPU chips.
Another GaN cost advantage is that the devices are physically smaller than equivalent silicon devices. In the manufacturing process, that means that more GaN devices can be made per wafer.
NVTS notes in their 2021 Annual Report the impending shift between legacy silicon and GaN cost:
Silicon-based power devices are still the incumbent solutions used for power applications and currently have a lower-cost advantage. However, given the speed, power and size advantages of an integrated GaN IC over a silicon solution, coupled with expected cost reductions, we expect to cross the cost-parity point with silicon and achieve GaN-based power systems that are lower cost than their silicon counterparts by the end of 2023.
NVTS's initial focus has been on the mobile charging market (i.e. charging a mobile device containing a battery, e.g. phone, laptop), where it has established a leading position.
Gene Sheridan, CEO, noted in the May 2021 earnings call that:
Navitas GaN is now in mass production with nine of the top 10 mobile OEM's across smartphones and laptops and we expect all 10 of the 10 by the end of the year.
Key GaN advantages in this market up to a 65% reduction in the time to charge the user's device, using a charger only half the size and weight of legacy silicon based chargers.
With about 2.5 billion chargers delivered per year, and a typical $1 GaN bill-of-materials component, this is in itself a substantial market with significant growth potential. Ultra-fast chargers, with power levels above ~ 100 watts, are a direct expansion of this market, and also typically require two (or even more) GaN chips (see for example this Dell (DELL) in-box 100W charger with two NV6117 chips).
Success in the charger market offers a good opportunity to demonstrate GaN performance and reliability, while scaling manufacturing and building customer relationships.
By December 2021, NVLT had cataloged 170 chargers in mass production, and another 240 in development, using their GaN ICs. Major clients include Dell, Lenovo (LNGVY), LG, Xiaomi (OTCPK:XIACF), OPPO, Samsung (OTCPK:SSNLF), and Amazon (AMZN). A exact example:
The March 2022 introduction of a 20 year warranty, 10X the industry standard, was a concrete demonstration of confidence in product reliability. Reaching the 50 million units shipped milestone in May 2022 demonstrated manufacturing at scale.
Four additional markets have been targeted - consumer electronics, data center, residential solar, and electric vehicles.
In consumer electronics, four applications - TVs, gaming systems, desktop PCs, and internet connected smart home devices - deliver about 600 million units per year, with a potential $3 in GaN content per unit.
Data centers are an estimated $1 billion a year market for GaN, where GaN adoption could reduce power costs by almost $2 billion a year. Electricity costs, including power conversion and cooling, account for over 40% of data center costs.
In the data center market, NVTS is working with Compuware, the leading high efficiency power supply developer, who ships 2 million server power supplies per year. Estimated potential GaN revenue per power supply is $25. NVTS expects sales to begin ramping here in 2023.
GaN adoption in residential solar system inverters is estimate to Improve ROI by about 10%. NVTS is working with Enphase (ENPH) in this market. The estimated size of this market is about $1 billion.
Electric vehicles provide a $2.5 billion potential annual market, with three applications; on board battery charger (~$50/vehicle), DC-to-DC conversion inside the vehicle (~$15), and traction drive ($200). First revenue is targeted in 2025.
Gene Sheridan, Navitas' co-founder and CEO, commented:
"With up to 70% energy savings, we estimate up to 3x faster charging, and 5% longer range or a $500 saving on a typical EV battery. With a roadmap to address on-board chargers, DC-DC converters and traction drives, Navitas estimates a potential $250 of GaN revenue per EV in 2026."
NVTS has incurred a net loss each year since inception, with the largest loss in 2021. As of December 2021 had a US federal tax loss carry forward of about $100 million. NVTS does not pay dividends, and has no plans to do so.
Revenue doubled from $11.8 million in 2020, to $23.7 million in 2021, and is expected to double again in 2022. Research and development spending also doubled from 2020, to about $28 million on 2021.
The financial highlights for Q1, from Todd Glickman, CFO, from the May 2022 earnings call (non-GAAP), and Q&A:
and expectations going forward:
There are multiple competitors in the GaN power electronics space particularly, and the larger power electronics space generally.
Semiconductor Today reported in October 2021 that the GaN power device market was estimated to grow by 73% in 2021, reaching $83 million. NVTS was expected to take the lead the in GaN market in 2021 (by devices shipped) with 29% market share, followed by Power Integrations, Inc. (POWI) with 24%, and Innoscience with 20%, Transphorm (TGAN) with 6%, Infineon (OTCQX:IFNNY) with 3%, and GaN Systems with 3% shipped significantly fewer devices.
NVTS identifies their primary GaN competitors to include Infineon Technologies AG, GaN Systems, Inc., Power Integrations, Inc., Texas Instruments Incorporated (TXN), Innoscience, Transphorm, Inc. and Efficient Power Conversion Corporation.
The primary silicon-based power semiconductor competitors include Infineon, STMicroelectronics N.V. (STM), ON Semiconductor Corporation (ON) and Power Integrations, among others.
Infineon's February 2022 Investor Presentation gives an estimate of the respective market share for the top 10 competitors in the overall power semiconductor space: Infineon, ON Semi, and STMicroelectronics are the three largest, with about 20%, 8%, and 6% market share respectively.
As I've spent time over the past couple of weeks researching and thinking about this article, I've become more impressed with NVTS.
They appears to have a well-thought-out growth strategy, sequentially targeting five markets - mobile power, consumer, data center, solar, and EVs. As an engineer, I admire efficient and reliable technology, and they seem to have delivered that.
The mobile power market allowed them to sell visibly improved charging performance and reduced size - features readily visible to end users, while simultaneously ramping up manufacturing to tens of millions of units per quarter, driving down the cost-volume curve, demonstrating outstanding reliability, and establishing a track record of success with dozens of important customers. This appears to have been largely achieved.
I purchased two of 20W GaN wall chargers and use them routinely. To my eye, they deliver as promised - small size, rapid charging, relatively cool.
The consumer electronics market is a natural extension; to some degree just moving the power supply inside the consumer product, and has some overlap of customers.
The data center market will allows them to sell reliable efficiency and operating cost reduction into a sophisticated commercial market which is highly sensitive to the costs of power and cooling.
The EV market is the biggest prize in terms of GaN dollars per unit, but is likely to be hotly contested.
The NVTS marketing focus on environmental impact is worth a few words. I initially thought this was a "and it does this too" marketing spin, but I think it's more than that. This focus on environmental impact through superior technology has been a key driver for Navitas since its origin, and seems to have motivated some of the original venture capitalists.
They estimate a net reduction of 4 kg of CO2 emissions per GaN chip. See the 2021 Sustainability Report for details.
This October 2021 presentation by EarthShift Global presents a detailed analysis of the impact of replacing silicon with GaN for consumer mobile device charging, including materials, manufacturing, and use. At full load, a 65 watt silicon charger is about 89% efficiency vs. 93% efficiency for GaN (see slide 31), about 35% reduction in wasted energy. Multiplied by a few billion devices, it adds up.
Well, it's too soon to tell. But I'll hazard a very back of the envelope guess.
In Q1 NVTS estimated a $9 billion potential market for GaN; $2 billion fast chargers, $1 billion ultra-fast chargers, $2 billion consumer electronics, $1 billion residential solar, $1 billion data center, $2.5 billion EVs (by 2030).
How much of that potential can NVTS capture? Let's guess - and it is only a guess - 15% market share, ~ $1.3 billion revenue. To make the math easy, assume $1.2 billion target revenue.
We assume 150 million share count (see Risks below), so $8 per share revenue.
How long to grow to that point? About 6 years is If NVTS can sustain their current rates of growth, and continue to double revenue each year; i.e. target 2027. If might be 2030 if growth is a little slower.
If one looks at some of the identified competitors, Seeking Alpha provides Price/Sales numbers.
Based on this data, we might assume a more mature NVTS will have a P/S ratio between 2.5 and 7, which would suggest a share price between $20 and $56, circa 2027-2030. To repeat, this is VERY back of the envelope.
What do the professionals think? Price targets have been declining since NVTS went public; Two analysts reduced their target to $9 target in May, Bank of America (BAC) set a $5 price target on 29 June 2022. But I doubt they are looking at 2027.
As a reminder, here's the NVTS price action from going public on 20 October 2021 to 19 July.
Several risk to the investment thesis deserve mention.
There are a number of competitors in the power electronics generally and in GaN power electronics specifically; several of these are much larger than NVTS. While it appear very likely that the GaN power electronics market is going to grow, the NVTS's share is uncertain.
NVTS face geopolitical risk. Their devices are manufactured in Taiwan, and a large fraction of their customer base is in China (74% of sales in 2021), as are all three of their design centers. Things could happen.
NVTS relies on a single vendor for device fabrication.
Some degree of dilution is likely, due to acquisitions or employee stock compensation. There are for example 10 million potential "Earnout" shares due to certain stockholders if the share price exceeds $12.50, $17.00 or $20.00 by 19 October 2026. Further, options on about 16 million shares have been granted via incentive performance plans. It's probably reasonable to assume 150 million shares - a 20% dilution - by 2026.
NVTS is arguably in the right place, at the right time, with the right technology to capitalize on the secular shift from silicon to GaN for power electronics. With $250 million in cash, NVTS has the financial resources to fund rapid growth.
Their very successful commercialization of GaN power ICs in the mobile charger market validates their technology and positions them to increase penetration in that market, and leverage the demonstrated technical and imminent cost advantage of GaN to successfully enter additional markets. There is a long runway ahead.
Personally, I currently have a small position in NVTS, purchased in the $6 range. I have a larger limit order in at a price below the current price. I view this as a 10 year plus investment, with a potential 8-10X return from the current price, over that time.