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On August 24, Navitas agreed to buy Claros, a firm that makes specialized power delivery technology. The deal is worth about 233 million dollars, paid for with a mix of 126 million dollars in cash and about 6.9 million shares of stock. Another 17 million dollars could be paid later if the business hits certain goals over the next two years.
This is a big move to support the company's pivot toward AI data centers. Claros makes technology that handles the very last step of moving power into high-performance chips. By adding this to its own power chips, Navitas can offer a complete system for the power-hungry servers used in AI. The deal is expected to close by the end of 2026, though it still needs approval from government regulators.
Source: 8-K filing
Navitas reported a loss of 4 cents per share for the second quarter, slightly better than the loss analysts expected. Revenue reached about 10 million dollars, matching expectations. The company is in the middle of a major shift, exiting the low-profit market for mobile phone chargers to focus on the high-voltage power needs of AI data centers and energy grids.
This transition appears to be working. Sales to high-power customers grew more than 50 percent compared to last year, which helped improve profit margins. Management expects this momentum to continue, with revenue from AI and energy infrastructure set to make up more than a third of all sales by the end of the year. For a small company burning cash, this growth in high-value markets is the most important sign that its new strategy is taking hold.
Management has a perfect record of meeting or slightly edging past their own targets every quarter for two years. This suggests they have a very tight handle on their costs and operations even while shifting the entire business toward new markets.
| Expectation | |
|---|---|
| EPS | $-0.04 |
| Revenue | $14M |
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