Enovix (US:ENVX)2024-10-30 12:39Financial Performance - Enovix Corporation reported revenue of $4.317 million for the quarter ended September 29, 2024, a significant increase of $4.117 million compared to $200 in the prior year[147]. - The net loss for the quarter was $22.638 million, an increase of 40% compared to a net loss of $16.185 million in the prior year[147]. - Revenue for the quarter ended September 29, 2024 was $4.3 million, primarily from product shipments, including $1.4 million to a South Korea military contractor[148]. - For the fiscal year-to-date ended September 29, 2024, revenue was $13.4 million, including $4.5 million to a South Korea military contractor, compared to immaterial revenue for the prior year[158]. - The net loss for the fiscal year-to-date ended September 29, 2024, was $185.1 million, adjusted for non-cash items including stock-based compensation of $48.6 million and changes in working capital[172]. Cost and Expenses - The cost of revenue decreased by 70% to $4.959 million from $16.809 million year-over-year, resulting in a gross margin improvement[147]. - Cost of revenue for the quarter ended September 29, 2024 was $5.0 million, a decrease of $11.9 million or 70% compared to $16.8 million for the quarter ended October 1, 2023[149]. - Cost of revenue for the fiscal year-to-date ended September 29, 2024 was $16.5 million, a decrease of $26.8 million or 62% compared to $43.3 million for the prior year[159]. - Research and development expenses rose by 79% to $24.220 million from $13.508 million, reflecting increased investment in technology development[147]. - Research and development expenses for the quarter ended September 29, 2024 were $24.2 million, an increase of $10.7 million or 79% compared to $13.5 million for the quarter ended October 1, 2023[150]. - Research and development expenses for the fiscal year-to-date ended September 29, 2024 were $102.1 million, an increase of $48.3 million or 90% compared to $53.8 million for the prior year[160]. - Selling, general and administrative expenses increased by 20% to $20.744 million from $17.245 million, driven by personnel expansion[147]. - Selling, general and administrative expenses for the quarter ended September 29, 2024 were $20.7 million, an increase of $3.5 million or 20% compared to $17.2 million for the quarter ended October 1, 2023[152]. - The company recorded pre-tax restructuring charges of $3.7 million for the quarter ended September 29, 2024, related to the relocation of manufacturing operations from Fab1 in California to Malaysia[153]. Cash and Investments - As of September 29, 2024, the company had cash, cash equivalents, and short-term investments totaling $202.9 million, with an accumulated deficit of $783.6 million[167]. - As of September 29, 2024, the company had cash, cash equivalents, restricted cash, and short-term investments totaling $202.9 million[168]. - For the fiscal year-to-date ended September 29, 2024, net cash used in operating activities was $92.7 million, an increase of $15.3 million compared to $77.4 million for the prior year[172]. - Net cash provided by investing activities was $15.0 million for the fiscal year-to-date ended September 29, 2024, primarily from maturities of $106.6 million in short-term investments[173]. - Net cash provided by financing activities was $44.2 million for the fiscal year-to-date ended September 29, 2024, mainly from $40.0 million in proceeds from common stock issuance[174]. Operational Developments - Enovix achieved UN38.3 certification for its EX-1M product in September 2024, marking a critical milestone for market entry[126]. - The company opened its high-volume production facility ("Fab2") in Penang, Malaysia, and commenced shipping batteries to customers[126]. - Enovix signed a collaboration agreement with a Fortune 200 company for silicon batteries in the IoT product category in July 2024[126]. - The company anticipates completing Site Acceptance Testing of its second-generation high-volume manufacturing line by the end of 2024[126]. - Enovix plans to focus on expanding relationships with major automakers in the EV battery market, with a milestone expected in Q4 2024[131]. Financial Position and Risks - As of September 29, 2024, the company had $172.5 million in Convertible Senior Notes outstanding, maturing on May 1, 2028[175]. - The company has approximately $24.6 million in open purchase orders, including equipment purchase orders, as of September 29, 2024[177]. - The company does not believe it is exposed to material interest rate risk due to the fixed interest rates on most borrowings[180]. - The company has not entered into derivative or hedging transactions for foreign currency risks but may do so in the future as international operations grow[182].