Amprius Technologies(AMPX) - 2024 Q2 - Earnings Call Transcript

Financial Data and Key Metrics - Total revenue for Q2 2024 was $3.3 million, all from product revenue, representing a 43% sequential increase and a 105% year-over-year increase [18] - Gross margin was negative 195% for Q2, compared to negative 109% in Q1 2024 and negative 186% in the prior year period, impacted by preconstruction costs for the Colorado facility [20] - GAAP net loss for Q2 was$ 12.5 million, or $0.13 per share, with 97 million weighted average shares outstanding [21] - The company exited Q2 with$ 46.4 million in net cash and no debt, recording a net increase of $7.4 million in cash compared to Q1 [24] Business Line Data and Key Metrics - The company shipped to 56 customers in Q2, including 24 new customers, with three customers representing over 10% of revenue [19] - Amprius launched the SiCore battery earlier in 2024, which has attracted new customers and enabled exploration of new market segments such as aviation and electrical transportation [7] - The company delivered the SA11 and SA17 batteries in Q2, targeting applications in aviation, drones, micro-mobility, and industrial equipment [7][8] - Amprius has 14 SKUs in its product portfolio, covering a wide range of performance metrics including energy, power, cycle life, and charging time [8] Market Data and Key Metrics - Shipments within the United States increased by 41% year-over-year, while shipments to the rest of the world grew by 271% year-over-year [10] - 50% of total revenue in Q2 came from outside the United States, reflecting the company's global expansion strategy [10] - The company secured$ 7.6 million in new sales orders during Q2, representing a 32% increase in net backlog compared to Q1 [11] Company Strategy and Industry Competition - Amprius is focused on innovating next-generation batteries, growing its customer base, and scaling manufacturing capacities [27] - The company is developing a 100Ah EV form factor battery cell for the USABC, expected to meet or exceed 2023 USABC low-cost fast-charging EV cell characteristics [9] - Amprius is expanding its manufacturing capacity, with plans to scale Fremont production to 2 megawatt hours by the end of 2024 and finalize the design for the Colorado facility [14][25] - The company has partnered with leading pack designers and manufacturers to broaden its sales reach and offer next-generation batteries to a wider customer base [11] Management Commentary on Operating Environment and Future Outlook - Management highlighted the strong demand for SiCore batteries and the company's ability to meet customer requirements in technical performance and application economics [10] - The company expects to finalize the design and permitting for the Colorado facility by the end of 2024, with the first line focused on SiCore manufacturing [25] - Amprius is optimistic about the second half of 2024, citing increasing sales outlook, growing customer engagement, and expanded production capacity [16] Other Important Information - The company completed a cash tender offer in Q2, reducing the number of warrants outstanding and raising net proceeds of $14.2 million [22][23] - Amprius was awarded a$ 1.9 million contract from the U.S. Army's X Tile Prime program to develop a large form factor 500 watt-hour per kilo SiMaxx energy density cell for defense applications [15] - The company plans to attend several industry and financial conferences in the coming weeks, including the UBS Energy Transition Call Series and the Oppenheimer Sustainability Summit [31] Q&A Session Summary Question: Customer design cycles and volume expectations for SiCore [32] - Answer: Customers typically require 9-12 months for product modification and 9-18 months for production qualification, with some customers already in the second stage of modification [33] Question: Ramp-up challenges in Fremont [34] - Answer: The company has qualified the central thermal machine for silicon nanowire growth but is optimizing the manufacturing process to reach nameplate capacity by the end of 2024 [35] Question: New bookings and timeline for $7.6 million in orders [37] - Answer: The bookings are for both SiMaxx and SiCore, with most expected to be fulfilled in the next few quarters, except for large orders from AALTO/Airbus extending through 2025 [38][39] Question: Factors impacting the Colorado facility [40] - Answer: The company is cautious due to industry dynamics, including supply, demand, government policies, and incentives, and is finalizing the design while monitoring market conditions [41] Question: Customer count and order patterns [43] - Answer: The decrease in customer count does not reflect fewer customers, as some are evaluating samples and may return for additional orders [44] Question: Importance of U.S.-based SiCore manufacturing [45] - Answer: Most customers prioritize quality and cost over manufacturing location, but some applications require U.S.-based production, prompting the development of the Colorado facility [46] Question: Revenue mix from outside the U.S. [48] - Answer: The company is expanding globally, with 50% of Q2 revenue coming from outside the U.S., reflecting a strategic shift to include Asia and other regions [49] Question: ATM usage and Colorado facility cost estimates [50][52] - Answer: The company has not used the ATM in Q3 and expects to finalize cost estimates for the Colorado facility by year-end, pending market dynamics [51][53] Question: Risks from potential policy changes [55] - Answer: The company is monitoring market and political dynamics but remains focused on accelerating customer modification processes to grow revenue [56] Question: Engagement with EV OEMs [57] - Answer: The company is engaged with EV OEMs but does not yet have a commercial product for the EV market, focusing on technical exchanges [58] Question: Commitment to the Colorado facility [60] - Answer: The company is evaluating the need for the Colorado facility based on market dynamics and manufacturing capacity, with a decision expected by year-end [61][63]