The following is a summary of the Enovix Corporation (ENVX) Q1 2024 Earnings Call Transcript:
Financial Performance:
Enovix Corporation reported Q1 revenue of $5.3 million, surpassing expectations primarily due to strong performance in the IoT category.
The company reported a positive non-GAAP gross margin for the first time. However, non-GAAP EBITDA incurred a loss of $26.3 million, and non-GAAP EPS reported a loss of $0.31.
Enovix ended the quarter with $262 million in cash and used about $35 million in operating activities.
Revenue for Q2 is expected to be between $3 million and $4 million.
Accelerated depreciation was reported in Q1, amounting to $18.5 million, which won't recur in Q2. Operating expenses are expected to decrease after Q2 due to cost-saving measures.
Business Progress:
The company has completed Factory Acceptance Testing for its Gen2 Agility Line and remained on track to produce the first battery samples from the EX-1M technology.
Enovix is engaging with leading companies in the smartphone industry and started producing EX-1M samples at its Fremont site for initial testing.
Enovix has also announced its first development agreement with a top-volume smartphone OEM, pointing to growing market interest in their products.
Manufacturing line costs are planned, and additional costs will depend on customer demand.
They are engaging with multiple prominent smartphone OEMs, sending them initial samples for testing.
Enovix is predicting manufacturing yields of around 90% by year-end.
The company plans to start high-volume manufacturing from their Malaysia Agility Line by the second half of next year.
Enovix aims to have its batteries included in phones by the second half of next year.
More details: Enovix IR
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