Company Overview - Amprius Technologies (AMPX) is expected to report flat earnings of $0.11 per share for the quarter ended December 2024, with revenues projected at $10.5 million, reflecting a significant increase of 166.5% year-over-year [1][3]. Earnings Expectations - The upcoming earnings report is anticipated to be released on March 20, and the stock may experience upward movement if the actual results exceed expectations [2]. - The consensus EPS estimate has been revised 4.55% higher in the last 30 days, indicating a more optimistic outlook from analysts [4]. Earnings Surprise Prediction - The Most Accurate Estimate for Amprius is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +1.23%, suggesting a likelihood of beating the consensus EPS estimate [10][11]. - The company holds a Zacks Rank of 3, which indicates a hold rating, but combined with the positive Earnings ESP, it suggests a potential earnings beat [11]. Historical Performance - In the last reported quarter, Amprius was expected to post a loss of $0.11 per share but actually reported a loss of $0.10, resulting in a positive surprise of +9.09% [12]. - Over the past four quarters, Amprius has surpassed consensus EPS estimates two times [13]. Industry Context - In the Zacks Technology Services industry, GDS Holdings is expected to report a loss of $0.27 per share for the same quarter, with revenues projected at $430.7 million, up 19.6% year-over-year [17]. - GDS Holdings has seen a significant revision in its EPS estimate, with a 37.5% increase over the last 30 days, leading to an Earnings ESP of 18.52%, suggesting a likely earnings beat [18].

Core Insights - Amprius Technologies (NYSE: AMPX) is expected to experience significant revenue growth over the next decade due to its innovative silicon battery technology [1] Company Overview - The company has developed a competitive product platform known as SiCore, which positions it well in the market [1]

Group 1 - The core viewpoint is a bullish stance on Amprius Technologies, driven by its leadership in the silicon battery market and advanced silicon nanowire anode technology [1] - The share price of Amprius Technologies has increased significantly since the previous article dated July 31, 2024 [1] - The analyst specializes in technology, innovation, and sustainability investment, utilizing a "First Principles" approach to identify overlooked investment opportunities [1] Group 2 - The analyst has a strong background in investment, private equity, and venture capital, with a proven track record of delivering strong returns [1] - Articles focus on emerging technologies, sustainable investing, and the intersection of innovation and finance [1] - The analyst expresses a passion for sharing insights and learning from fellow investors to drive positive change [1]

Core Viewpoint - Amprius Technologies is positioned for significant growth, with potential stock price increases projected to reach triple digits by 2025, driven by expanding capacity, a growing customer base, and positive analyst sentiment [1]. Company Overview - Amprius Technologies specializes in next-generation lithium-ion batteries featuring a silicon-anode architecture, which is gaining traction in the market [2]. - The company has seen a quadrupling of its customer base in FQ3 2024 and has secured new contracts, including a $20 million deal with a LEV manufacturer and a letter of intent to supply 2 GWh of power capability for a Fortune 500 company [2][3]. Financial Performance - Revenue from the LEV contract will be fully recognized in the first half of the year, accounting for 35% of the annual earnings consensus [3]. - Analysts project that Amprius will grow its revenue more than threefold in 2025 and fourfold in 2026, with profitability expected by 2028 [6]. Market Position and Demand - Amprius batteries are utilized in various applications, including unmanned aircraft, drones, and eVTOL, with notable customers such as Airbus, AeroVironment, Teledyne FLIR, and BAE Systems [4]. - The company engaged with 53 new clients in Q3, indicating strong demand and a robust manufacturing footprint, including plans for a gigafactory in Colorado [4]. Analyst Sentiment - All eight analysts covering Amprius Technologies rate the stock as a Buy, with a 12-month price target of $8.17, representing a 129.40% upside potential [5]. - The stock has seen an upswing following Q3 results, with institutional buying activity increasing significantly, outpacing selling by more than 4-to-1 [6]. Technical Analysis - Amprius Technologies is experiencing a strong technical reversal after hitting a low in September 2024, with rising volume and bullish indicators suggesting market strength [7]. - The stock is expected to reach a target of $4.00 soon, with further resistance levels at $4.45 and $5.25, potentially opening the door to a $10 level [8].

Financial Data and Key Metrics - The company reported $7.9 million in total revenue for Q3 2024, more than doubling the revenue from Q2 2024 and nearly tripling the revenue from Q3 2023 [16] - Product revenue accounted for $6.1 million, an 81% sequential increase and a 176% year-over-year increase [26] - Development services and grant revenue totaled $1.8 million, up from none in Q2 and $1.2 million year-over-year [27] - Gross margin improved to negative 65% in Q3 2024, compared to negative 195% in Q2 2024 and negative 152% in Q3 2023 [28] - GAAP net loss for Q3 2024 was $10.9 million, or $0.10 per share, compared to a net loss of $0.13 per share in Q2 2024 and $0.10 per share in Q3 2023 [29] Business Line Data and Key Metrics - The company shipped to 94 customers in Q3 2024, including 53 new customers, bringing the year-to-date customer count to over 175 [16] - The SiCore product line was a primary driver of growth, with $20 million in contracts signed for light electric vehicle applications [17][18] - The company delivered high-energy density 360 Wh/kg EV battery cells to the USABC, achieving 1,200 Wh/kg power density and a 15-minute charge to 90% capacity [14] - The company now offers 14 different SKUs, with energy densities ranging from 350 Wh/kg to 450 Wh/kg, covering a significant portion of customer applications [12] Market Data and Key Metrics - The global drone market is projected to grow from $18 billion in 2023 to $213 billion by 2032, while the electric aircraft and eVTOL battery market could reach $50 billion by 2030 [9][10] - The light electric vehicle market is expected to grow at a CAGR of 9.74% from 2023 to reach $206 billion by 2032 [10] - The company has expanded its market participation in the light electric vehicle segment, signing $20 million in customer contracts and two LOIs with Fortune 500 industrial leaders [11] Company Strategy and Industry Competition - The company's strategy focuses on innovating next-generation batteries, growing the customer base, and scaling manufacturing capabilities [36] - Amprius has secured over 500 MWh of additional manufacturing capacity and launched two dedicated production lines for its batteries, with a total capacity of 800 MWh for pouch cells and over 1 GWh for cylindrical cells annually [21][22] - The company is exploring additional manufacturing partners in Asia and Europe and has finalized the design for its Colorado facility [37] - Amprius' batteries are recognized as best-in-class for energy, power, cycle life, charging time, temperature performance, and safety, validated by increased customer purchasing volume [12][15] Management Commentary on Operating Environment and Future Outlook - Management is optimistic about the road ahead, citing technical leadership, strong battery performance, a growing customer base, and the capacity to support large volume orders [23] - The company expects to recognize $20 million in revenue from light electric vehicle contracts by mid-2025 [18][45] - Management believes the company is set up for sustainable growth, with a clear path to operational cash flow breakeven driven by the SiCore product line [42] Other Important Information - The company completed production line specifications and construction design drawings for its Colorado facility and remains on track from a regulatory standpoint [22] - Amprius exited Q3 2024 with $35 million in net cash and no debt, using $11.4 million in cash during the quarter, primarily for operating cash flow and facility build-out [31] - The company expects to spend an additional $1 million in Q4 2024 to complete the 2-megawatt production line in Fremont [32] Q&A Session Summary Question: Customer List and Potential for Large Orders - The company has concluded two significant customer contracts totaling $20 million and is in discussions with three other high-volume potential customers [40] Question: Path to Operational Cash Flow Breakeven - The SiCore product line is profitable from day one, and the company expects near-term revenue growth to come from SiCore, driving operational profitability [42] Question: Organizational Capacity and OpEx Investments - The company has made key hires in sales, business development, and R&D to support growth and drive faster cycles of learning [43] Question: Revenue Recognition Timeline for $20 Million Contracts - The company plans to recognize the $20 million in revenue by May 2025, with shipments already underway [45] Question: Customer Strategy and Gross Margin Targets - The company aims to focus on large customers with substantial volume orders, though no specific gross margin targets have been provided [46][47] Question: Potential Growth for $20 Million Contracts - The $20 million contracts are expected to satisfy customer needs until mid-2025, with potential for additional orders as demand grows [49] Question: Milestones for LOI in Electric Vehicle Space - The company is working on perfecting cell design and plans to deliver the first batch of samples to the customer, with factory inspections delayed to early 2025 [50][51] Question: Drivers of Increased Customer Receptivity - The primary drivers are the company's battery performance and the availability of manufacturing capacity and capability [54][55] Question: Customer Qualification Timelines - Qualification timelines vary by application, with the $20 million contract benefiting from a shorter certification process [58] Question: Impact of Colorado Facility Spending on Gross Margin - The $2.4 million spent on the Colorado facility in Q3 2024 is expected to ramp down, with minimal impact on Q4 gross margin [61][62] Question: Fremont Facility Capacity and CapEx - The company expects to enter 2025 with up to 2 megawatts of capacity at its Fremont facility, with an additional $1 million in CapEx planned for Q4 2024 [66][67]

Core Viewpoint - Amprius Technologies reported a quarterly loss of $0.10 per share, slightly better than the Zacks Consensus Estimate of a loss of $0.11, indicating a 9.09% earnings surprise [1] - The company achieved revenues of $7.86 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 2.01% and showing significant growth from $2.8 million year-over-year [2] Financial Performance - Over the last four quarters, Amprius has exceeded consensus EPS estimates two times and topped revenue estimates four times [2] - The current consensus EPS estimate for the upcoming quarter is -$0.13 on revenues of $5.26 million, and for the current fiscal year, it is -$0.51 on revenues of $16.3 million [7] Stock Performance and Outlook - Amprius shares have declined approximately 76.2% since the beginning of the year, contrasting with the S&P 500's gain of 24.3% [3] - The estimate revisions trend for Amprius is currently unfavorable, resulting in a Zacks Rank 4 (Sell), indicating expected underperformance in the near future [6] Industry Context - The Technology Services industry, to which Amprius belongs, is currently ranked in the top 28% of over 250 Zacks industries, suggesting a favorable environment for companies within this sector [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Manufacturing Capacity and Expansion - The company anticipates expanding its SiMaxx battery manufacturing capacity to 2 MWh by early 2025, which is approximately 10 times its production capacity in 2023[93]. - Amprius expects capital equipment expenditures between $75 million and $100 million to achieve up to 500 MWh per year of manufacturing capacity in its Brighton, Colorado facility[98]. - The company plans to construct a new GWh-scale manufacturing facility in Brighton, Colorado, to meet battery demand[129]. - Amprius is focusing on reducing manufacturing costs of SiMaxx batteries on a $/kWh basis to accelerate demand and expand its customer base[101]. - The company is developing larger form factor batteries for broader electrified transportation applications, currently producing batteries up to approximately 15Ah for small-sized aircraft[105]. - The company has established a network of toll manufacturing partnerships to meet increased demand for SiCore batteries, currently leveraging existing production lines[99][100]. - The company expects to expand production capacity through a Copy Exact methodology, but may reduce initial capacity if cash is less than expected and financing is unavailable[133]. Financial Performance - Revenue increased by $5.1 million, or 181%, to $7.9 million during the three months ended September 30, 2024, primarily due to a $3.9 million increase in battery sales[117]. - Revenue increased by $8.4 million, or 165%, to $13.5 million during the nine months ended September 30, 2024, primarily due to a $7.8 million increase in battery sales[118]. - Cost of revenue increased by $5.9 million, or 84%, to $13.0 million during the three months ended September 30, 2024, and by $13.7 million, or 86%, to $29.6 million during the nine months[119]. - Research and development expenses increased by $1.0 million, or 123%, to $1.8 million during the three months ended September 30, 2024, and by $2.7 million, or 112%, to $5.1 million during the nine months[120]. - Selling, general and administrative expenses increased by $0.3 million, or 7%, to $4.3 million during the three months ended September 30, 2024, but decreased by $2.4 million, or 15%, to $13.4 million during the nine months[121]. - Net loss was $10.9 million for the three months ended September 30, 2024, and $33.3 million for the nine months[130]. Cash Flow and Financing - As of September 30, 2024, the company had cash and cash equivalents of $35.0 million[124]. - Net cash used in operating activities increased to $27.3 million during the nine months ended September 30, 2024, compared to $20.8 million during the same period last year, primarily due to increased personnel-related costs[136]. - Net cash used in investing activities decreased to $6.8 million during the nine months ended September 30, 2024, from $11.8 million in the prior year, mainly due to the timing of purchases of production equipment[138]. - Net cash provided by financing activities increased to $24.6 million during the nine months ended September 30, 2024, from $16.3 million in the same period last year, primarily from the issuance of common stock[140]. - The company may need to seek additional equity or debt financing if resources are insufficient to meet cash requirements, which could adversely affect business operations[132]. - The primary source of cash from operations is revenue from battery sales and customization design services, with significant cash uses including personnel costs and procurement of materials[135]. Market Position and Product Development - Amprius Technologies has shipped over 400,000 batteries since inception through September 30, 2024, serving over 175 customers[91]. - The company is engaged in ongoing development activities to improve battery life and energy density, exploring different cathode materials[103][104]. - The company is the only known manufacturer using a 100% silicon anode free of inactive additives, positioning itself competitively in the battery market[102]. - Amprius is monitoring broader industry dynamics, including changes in demand, supply, battery cost structure, and government incentives, which may influence its manufacturing decisions[96]. Compliance and Reporting - The company qualifies as an emerging growth company and a smaller reporting company, allowing it to take advantage of reduced reporting requirements[142][143]. - There have been no changes to critical accounting estimates during the nine months ended September 30, 2024[145].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 _________________________ FORM 8-K _________________________ CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): October 29, 2024 _________________________ Securities registered pursuant to Section 12(b) of the Act: Title of each class Trading Symbol(s) Name of each exchange on which registered Common stock, par value $0.0001 per share AMPX The New York ...

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