Amprius Technologies(AMPX) - 2023 Q2 - Earnings Call Transcript

Financial Data and Key Metrics Changes - The company reported revenue of $1.6 million for Q2 2023, an increase of $0.9 million compared to $0.7 million in the same quarter last year [18] - GAAP gross margin was negative 186% in Q2 2023, an improvement from negative 518% in Q1 2023 [20] - GAAP net loss for Q2 2023 was $9.4 million, or a net loss of $0.11 per share [20] Business Line Data and Key Metrics Changes - The company shipped to 27 customers in Q2 2023, up from 16 in the same quarter last year and 19 in Q1 2023 [12] - Product revenue increased by $0.6 million, driven by shipments to the 27 customers [18] - Development Services revenue totaled $0.3 million, reflecting the Army Safe Cell delivery completed in the quarter [19] Market Data and Key Metrics Changes - The company has over 80 patents in silicon anode manufacturing technologies, positioning it as a leader in high-performance battery solutions [6] - The demand for Amprius products is growing, with significant interest from the aviation and electric vehicle markets [28] Company Strategy and Development Direction - The company aims to scale manufacturing capacity to meet increasing demand, with a long-term goal of becoming a mainstream battery solution across various segments of electrical mobility [7] - Amprius is focused on expanding its production capacity at Amprius Lab in Fremont, California, and building Amprius Fab in Brighton, Colorado, expected to be operational in 2025 [15][26] - The company is targeting the conformal wearable battery market, estimated at $1.25 billion by 2030, and the aviation market projected to be $49 billion by 2025 [28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving capacity expansion goals and normalizing gross margins as production scales up [20][22] - The company anticipates increased revenue recognition in the latter part of 2023 due to ongoing development services programs [22] - Management highlighted the importance of safety, energy, and power in the aviation market, which are critical for customer acquisition [49] Other Important Information - The company appointed Mary Gustanski as an Independent Director to the Board, bringing valuable experience in the automotive sector [17] - The company exited Q2 2023 with $65 million in cash and no debt, indicating a strong balance sheet [21] Q&A Session Summary Question: Can you talk about the testing perspective around the subsystems for the megawatt scale tool? - The company has completed testing in Germany and expects to have the necessary equipment in place by the end of the year [31] Question: What percentage of new customers are sampling versus taking commercial products? - Approximately 40% of new customers are qualifying products for commercial applications [33] Question: Can you provide a sense of the timelines for updates on the performance automotive OEM? - The company expects to finalize the joint development agreement in the coming months [39] Question: How do you prioritize production for specific customer proposals? - Existing customers are prioritized for capacity allocation, while new customer inquiries are also being addressed [47] Question: What are the key factors helping win orders? - The company focuses on safety, energy, and power as top priorities for the aviation market, which are critical for customer acquisition [49] Question: What is the process and timeline for acquiring a new customer? - The timeline can vary, with some customers taking about 7-8 months for standard products, while new programs may take up to 1.5 years [55]