Enovix (US:ENVX)2024-05-07 01:40Revenue and Financial Performance - Revenue for Q1 2024 was $5.3 million, with $1.9 million from a South Korean military contractor, compared to immaterial revenue in Q1 2023[151] - The net loss for Q1 2024 was $46.5 million, an improvement of $27.1 million compared to a net loss of $73.6 million in Q1 2023[150] - Deferred revenue as of March 31, 2024, was $9.1 million, down from $10.5 million as of December 31, 2023[151] Expenses - Cost of revenue decreased to $7.1 million in Q1 2024 from $12.2 million in Q1 2023, primarily due to the strategic realignment of Fab1 to focus on new product development[152] - Research and development expenses surged by 105% to $48.8 million in Q1 2024, driven by accelerated depreciation and increased overhead costs[154] - Selling, general and administrative expenses decreased by 28% to $19.5 million in Q1 2024, down from $27.3 million in Q1 2023[150] - Selling, general and administrative expenses decreased by $7.7 million, or 28%, to $19.5 million for the quarter ended March 31, 2024, primarily due to a one-time severance expense of $13.8 million in the prior year[156] Cash Flow and Financing - Net cash used in operating activities was $35.0 million for the quarter ended March 31, 2024, compared to $25.6 million for the quarter ended April 2, 2023, reflecting a net loss of $46.5 million[169][170] - Net cash provided by investing activities was $19.1 million for the quarter ended March 31, 2024, primarily from maturities of $51.3 million in short-term investments[171] - Net cash provided by financing activities was $5.4 million for the quarter ended March 31, 2024, mainly from $5.9 million in proceeds from the issuance of common stock through an ATM offering[172] - As of March 31, 2024, the company had cash, cash equivalents, restricted cash, and short-term investments totaling $264.3 million, with working capital of $221.1 million[161] - The company incurred an accumulated deficit of $645.2 million as of March 31, 2024[161] - The company anticipates that cash will be sufficient to meet funding requirements over the next twelve months, supported by available cash and future debt financings[164] Strategic Initiatives - Enovix plans to begin sampling high cycle life smartphone batteries, called EX-1M, in Q2 2024[126] - The company has built out approximately 250,000 square feet of factory space in Malaysia and received Gen2 production equipment[127] - Enovix entered a development agreement with a leading automaker to validate the advantages of its battery architecture for electric vehicles[127] - The strategic shift to a vertical business strategy aims to focus on larger customers and customized battery solutions for portable electronics[130] Debt and Interest - The company has $172.5 million in Convertible Senior Notes outstanding with a 3.0% interest rate, accounting for approximately 95% of total debt[186] - Interest income increased by $1.1 million to $3.6 million for the quarter ended March 31, 2024, driven by higher dividend and interest income from money market accounts and investments[159]