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Amprius Technologies(AMPX) - 2023 Q4 - Earnings Call Transcript
AMPXAmprius Technologies(AMPX)2024-03-22 13:03
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Financial Data and Key Metrics - Q4 2023 revenue was 3.9million,a3.9 million, a 3.1 million increase compared to 0.8millioninQ42022,andup0.8 million in Q4 2022, and up 1.1 million sequentially [20] - Full-year 2023 revenue was 9.1million,representingagrowthrateofover1009.1 million, representing a growth rate of over 100% from 2022 [21] - Gross margin for 2023 was negative 162%, compared to negative 128% in 2022, with significant variation due to product and services revenue mix fluctuations [22] - Operating expenses for 2023 were 24 million, a 94% increase from the prior year, driven by public company expenses, transaction-related costs, and staffing increases in R&D and sales [22] - GAAP net loss for 2023 was 36.8million,or36.8 million, or 0.43 per share, compared to a net loss of 0.24persharein2022[23]−Cashbalanceattheendof2023was0.24 per share in 2022 [23] - Cash balance at the end of 2023 was 45.8 million with no debt [24] Business Line Data and Key Metrics - Product revenue increased by 0.3millioninQ42023,drivenbyshipmentsto41customers,arecordforthecompany[20]−Developmentservicesrevenueincreasedby0.3 million in Q4 2023, driven by shipments to 41 customers, a record for the company [20] - Development services revenue increased by 3 million in Q4 2023, reflecting the completion of the U.S. Army Manufacturing Technology Program [21] - SiMaxx and SiCore battery families have attracted significant market attention and customer demand, with SiCore offering form factor flexibility for pouch and cylindrical cells [11][33] - The company shipped batteries to 41 customers in Q4 2023, including 16 new customers, with significant orders from eVTOL and HAPS manufacturers [13][14] Market Data and Key Metrics - The company has a strong patent portfolio with over 80 issued patents and pending applications, positioning it as a leader in silicon anode battery technology [5] - Amprius batteries deliver 450 watt-hour per kilo specific energy density and 1,150 watt-hour per liter volumetric density, with a new 500 watt-hour per kilo platform ready for commercial shipments [5][9] - The company has secured long-term battery supply agreements with key customers, including AeroVironment and Tenergy [13] - The company is targeting large markets, including a 1.25billionconformalwearablebatterymarketby2030,a1.25 billion conformal wearable battery market by 2030, a 33 billion aviation battery market by 2030, and a 591billionEVbatterymarketby2033[29]CompanyStrategyandIndustryCompetition−Thecompany′sstrategyfocusesonadvancingsiliconanodebatterytechnology,expandingproductioncapacity,andmeetingsignificantcustomerdemand[8][28]−Ampriusisbuildingalarge−scalemanufacturingfacilityinBrighton,Colorado,expectedtobeoperationalin2025,andhasincreasedmanufacturingcapacityinFremont,California,by10times[15][16]−Thecompanyispursuingadditionalfundingthroughequityissuances,grants,loans,andincentivestosupportitsgrowthstrategy[26]−AmpriushasbeenrecognizedasoneofFastCompany′s2024mostinnovativecompaniesandwonawardsforitsSiMaxx400watt−hourperkilocell[18]ManagementCommentaryonOperatingEnvironmentandFutureOutlook−ManagementhighlightedtheunmatchedperformanceofAmprius′siliconanodebatteries,withsignificantcustomerdemandandarobustpipeline[27]−Thecompanyexpectstobeginconstructionofitsgigawatt−scalefacilityinBrighton,Colorado,in2024andoptimizeSiMaxxmassproductioninFremont[28]−Managementisconfidentinthecompany′sgrowthstrategy,withopportunitiesinaviation,EVs,andwearablemarkets[29]−Thecompanyispursuingthe45xtaxcreditundertheIRA,whichcouldprovidesignificantfinancialbenefits[42]OtherImportantInformation−ThecompanycompleteditsfirstvolumeshipmentsofSafeCellfortheU.S.ArmyinDecember2023,markingamilestoneinitsmanufacturingscale−upinitiative[15]−AmpriusreceivedAS9100:2016certificationforitsFremontproductionfacility,supportingitssupplytotheelectricalaviationindustry[17]−Thecompanyhasraised591 billion EV battery market by 2033 [29] Company Strategy and Industry Competition - The company's strategy focuses on advancing silicon anode battery technology, expanding production capacity, and meeting significant customer demand [8][28] - Amprius is building a large-scale manufacturing facility in Brighton, Colorado, expected to be operational in 2025, and has increased manufacturing capacity in Fremont, California, by 10 times [15][16] - The company is pursuing additional funding through equity issuances, grants, loans, and incentives to support its growth strategy [26] - Amprius has been recognized as one of Fast Company's 2024 most innovative companies and won awards for its SiMaxx 400 watt-hour per kilo cell [18] Management Commentary on Operating Environment and Future Outlook - Management highlighted the unmatched performance of Amprius' silicon anode batteries, with significant customer demand and a robust pipeline [27] - The company expects to begin construction of its gigawatt-scale facility in Brighton, Colorado, in 2024 and optimize SiMaxx mass production in Fremont [28] - Management is confident in the company's growth strategy, with opportunities in aviation, EVs, and wearable markets [29] - The company is pursuing the 45x tax credit under the IRA, which could provide significant financial benefits [42] Other Important Information - The company completed its first volume shipments of Safe Cell for the U.S. Army in December 2023, marking a milestone in its manufacturing scale-up initiative [15] - Amprius received AS9100:2016 certification for its Fremont production facility, supporting its supply to the electrical aviation industry [17] - The company has raised 6.5 million through the sale of shares under its ATM facility as of March 18, 2024 [25] Q&A Session Summary Question: Customer feedback and opportunities for SiCore - SiCore has received strong feedback from customers, with form factor flexibility enabling supply of both pouch and cylindrical cells [32][33] Question: Ramp-up challenges and Colorado facility progress - The Fremont facility is expected to reach 2 megawatt-hour capacity by the end of 2024, while the Colorado facility is progressing with rezoning and permitting [35] Question: Revenue breakdown between SiMaxx and SiCore - The company has not disclosed separate revenue figures for SiMaxx and SiCore, but SiCore has potential for larger revenue due to toll manufacturing capacity [38][40] Question: Pricing and application focus for SiCore - SiCore commands a premium due to its high energy density and long cycle life, with applications in aviation and other electric mobility segments [45][47] Question: Demand and ramp for SiCore - Manufacturing capacity for SiCore exceeds 100 megawatts, with commercial revenue expected later in 2024 as customers complete qualification [50] Question: Fremont facility updates and cathode line - The cathode line in Fremont is expected to be operational in Q3 2024, with no impact on current production [52] Question: 500 watt-hour per kilo product timing and R&D goals - The 500 watt-hour per kilo product is expected to ship to customers in 2024, with R&D focused on energy density, power, and safety features [56][58] Question: Fremont capacity and revenue expectations for 2024 - Revenue is expected to ramp up in 2024, driven by Fremont capacity and SiCore product availability [65] Question: Colorado facility long lead time items and costs - Long lead time items for the Colorado facility, such as dehumidifiers and transformers, have been procured, with design and permitting ongoing [68] Question: Gross margin and operating cost expectations for 2024 - Gross margins may remain under pressure in 2024 due to Colorado facility costs, while operating expenses are expected to remain stable [71] Question: Military vs commercial revenue mix - The company does not directly track military vs commercial revenue, as it sells through OEMs, but has strong relationships with key defense contractors [73]