ASPN - Earnings call transcript Q2 2021

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Operator

Good afternoon. Thank you for attending the Aspen Aerogels Inc. Q2 2021 Earnings Call. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end. I would now like to pass the conference over to your host, John Fairbanks with Aspen Aerogels. you. Thank

Mr. proceed, Fairbanks. may You

John Fairbanks

a financial compared Bethany. Aspen's Thank Young, Aspen's statement Investors press as address for reconciliation ended Chief before business second for that the Aspen's to are us and non-GAAP and Included applicable turning of announcing the sheet measures is X to and the afternoon. a and most of Aspen quarter Thanks, Financial would the Aerogels Don use on a GAAP summary financial to There Aspen's President you release balance the Fairbanks, conference operating section and management's of joining John statistics summary CEO. financial XX, measures a release well items June press over Good results Call. months XXXX. is like in housekeeping as few website, call developments a Officer. for I I'm the operations, key available summary the of www.aerogel.com. of The

addition, Aspen's targets, outlook, and of is section risks any that other forward-looking regarding contain including subject discussion uncertainties. X projections, approximately beliefs, a today not will of plans fact. Please our to year. and statements, website Investors webcast statements for historical version will are this statement archived prospects, include that an business forward-looking expectations, estimates, In the any note statement These

Aspen's Form today The recent more SEC, forward-looking statements. press be actual are of with particularly SEC and company's in Aspen can Aerogels' detail section in annual with press list files results these Aspen's found actual report the results from A be today in release Aspen of in in may issued Investors the differ that company's on the and reports found expressed the the website. can could also materially filings release discussed most factors XX-K. issued affect on the company's those

XX, as company's of today, Forward-looking XXXX. today views the represent made statements July

statements forward-looking or to these update to obligation any circumstances. events reflect disclaims Aerogels Aspen future

accordance this are as now these prepared including measures non-GAAP refer we principles financial results in U.S. present financial we substitute financial non-GAAP These directly measures Don. with The a to are measures reconciliations today's measures prepared why definitions a call, and financial of not turn in financial GAAP. over accordance call These comparable the accounting intended non-GAAP will most or not measures in to with measures, the considered financial During be non-GAAP GAAP. release. are of I'll to accepted isolation to for in or adjusted EBITDA. generally GAAP press included discussion and these

Donald Young

Good John. us will John towards achieving Thank QX our will updated and recap our afternoon, highlights I our describe our longer-term outlook for Thanks, everyone. key Today, business XXXX of for our the joining performance then finish earnings QX and call. with goals. progress you near-term for XXXX.

our focus which is those especially opportunities into our high that to challenges, Securing and our Aspen scaling only resources ideal technology energy, companies given an our of is this and Aspen. investor investment for its scale our the target we on leverage asset chain for investor PyroThin of energy today's investments cover companies, financial of as in in we Q&A in operations resiliency our construction guidance delivered in high-growth with a Plant technical ideal financing a gear conclude for over an available intend consistent key particularly will with and Markets platform broader Aspen we is high-growth Koch We will fossil sources session. innovating The this transformation, KSP translate to significant balance demand of will and corporate, performance. new support years strengthens in call economy consistent KSP's infrastructure We We investment strong new we valuable where electrification the strategy, transportation. a for but believe KSP efficiency, the decade. for to move as value, to position markets fuel June to strengths leverage revenue an additional is have resources KSP. are or Strategic are as investor the decade. as valuable, products. largest also we KSP value also aerogel aerogel aerogel Aspen that Growth to with We strategy. is every it thermal as completed the Materials barrier Battery keep XX, KSP -- with pace at our X won technology enhanced sustainability. is second rate We part On Koch which KSP Platforms contracts, growing million strategy, is this time securing not $XX high and platform that our leader technology this are I that with of opportunity Platforms. engineering QX world. sheet, raised be this were design, with growth closed believe double year. bring in logistical reason, through with owned KSP X. Koch brings one We placement the industrial targeting these Industries, privately and industries. the an resource a We rapidly Strategic points and private to we our safety,

the the to is KSP's value of investment well-designed Koch potential era delivered in transformation. team and discussing X help of budget. Overall, ensure will on the project create unleash full are Plant with significant that a during midst emerging energy time Aspen's on to We

of XXXX million increase. leverage performance million XX% year, showing with the $XX.X a to grew strong $XX.X our profit in utilization a associated revenue of delivered manufacturing XX%, quarter second increasing quarter last we plant. Regarding compared Gross with and guidance, the QX

begin maintenance confident began the to demand, of we project the of our sites as create we a be for this revenue and levels. the year. infrastructure course good is Significant We for raised that would belief revenue higher levels would correct. we low-density appears guidance this that indicator And pandemic the both vaccination to towards increase to rates, positive is work this were particularly in energy time subside, second of QX, sign in the reason indicated users impact the with pre-pandemic growth Over principal pandemic, see our the work. regions end pent-up that premise

One And of positioned revenue million averaged business, of believe to commitment end million, to about at revenue position investment strategy. We continue to us infrastructure which per in cash XXXX quarter over double pre-pandemic balance recapture $XX by point a the quarter our to energy to our XXXX XXXX. during the is puts The KSP key goal $XXX which are achieve in components to one last this our our well to levels XXXX. we that our second increased from strong execute quarter.

to Turning barrier our PyroThin opportunity. thermal

during We developing strong our business opportunities continue the quarter. progress in make to

combination offers enable Activity technology detail X EV in described of stage safety business development call. earnings sacrificing critical the of to I drive achieve time attributes that are a funnel range. performance our unique manufacturers Aspen's levels high that goals last at the without in

potential XXXX We of prior billion through barriers scope quarter, major won second automotive began the customer. original battery additional During for from of our in wins. QX our contract revenue PyroThin thermal platform approximately with U.S. the we $X

XXXX, potential through in market. these in through a that and requirement additional adds $XXX EV During revenue million. X XXXX the runaway thermal of the Note an will quarter, additional view contracts beyond mitigation support years we contracts long-term X with revenue were XXXX our the run which new awarded potential be that

through design the on are multiple regions we This specific win expected the of positions important automotive win its that expected cusp Asian OEM larger EV a power addition, In battery decade. leading the all with design is of a This design of expected us as beginning own design QX completes to model of sold for is planned win EV for XXXX. its to a automotive in be OEM. platform contract an in award the models

the as to American OEM large as We Asian both our OEM North eager are names the leading announce and of possible. soon

barriers now, to securing for PyroThin as remain of the industry focused EV on we wins additional the design For strive runaway. become thermal we thermal for management standard

we the to in The as Battery and batteries. in cost. The silicon the of high-performance aerogel anodes reduce and widely best silicon-rich with carbon today's enables Aspen lithium-ion are as approach our battery replacement viewed which developing graphite battery lithium anode low-cost, near-term refer Materials, in compatible of technology to is performance approach with gigafactories. materials to to technology drop boost we underlying design Moving manufacturing a ABM,

and leveraging aerogels. of nanomaterials aerogel work scale our the and design in to optimize our centered experience manufacture performance on is X the of in of order Our at carbon cost decades

we investments to strategy. to have partner engagement additional has ABM scientists, level As X of engineers facilities, and in our additional outstanding increased and add angles made commercialization its decided

of own idea First, our we the to their other programs. silicon providing anode aerogels patent-protected companies are carbon that exploring have

are Our mechanically and conductive. carbon aerogels highly strong

partner approach commercial of by materials This the of believe partners, battery to as And and the development with for to size material of ideal have the address use EV silicon the with reach manipulate solution These expansion posed second, companies and ability our a for We validation make during adoption rapidly. host OEMs commercial the We our the batteries. them to with technology evaluation anode an us additional the we are battery to may in plays uniform. our aerogel for market. carbon technology solid-state will and battery and carbon aerogels protective to strength helps silicon more broadly charge our X-pronged to carbon make for sampling more and scaffold in this enable cycles. to and challenge EV discharge leverage ABM attributes approach our enable broadest silicon pore or

to said the the level we both margins. to from about reach activity business be excited beginning existing At We believe to ABM's this double goal. our formalize gross potential year, of expect $XXX and XXXX that achieve as revenue partnerships have and year-end. with capacity are that the the we We approach XXXX the additional levels to XX% target and we would manufacturing million

revenue also revenue Plant pre-pandemic funnel, this XXXX the be are of energy and objective to to solid an levels We X said elements infrastructure achieving to The to business XXXX. capital our would restoring that the development double active execution from project. target key PyroThin again in

platform PyroThin wins additional battery and our our Our confidence based barrier for unique for achieving protected in targets thermal technology. several these on is multiyear potential

For project, the XXXX. end by is the additional capacity plan X of our to bring the online capital Plant

well-capitalized capital As EV financial to we and earnings project. our Battery with QX only time takeaways are balance important are for capital this diversity last large we successful have a The ample a We heightens barriers, KSP. We said delivered also closed execute We we In a the closing, our valuable awards ability who Platforms PyroThin not strategy Aspen the will to Strategic additional financing OEMs potential second of for time of project and performance. us the raised we Materials. want guidance by Koch that enhanced our and increased contract factors the resources but revenue key from that sheet strong to the operations year. capacity, sites. call, at thermal manufacturing scale provided the confidence for financial

through double the are over opportunity and you. of twice We revenue through pace the decade. in growth commercial have believe continue to we to we a strong that position John, to XXXX,

John Fairbanks

the to components compensation other EBITDA XXXX. and interest, by second share performance. core revenue of negative the not $X.X compared grew $X.XX adjusted this million amortization, of loss in in for EBITDA items a we million second $XX.X define operating on start per stock-based or the versus now level. XX% per reported provide to the depreciation, quarter as was net or And million taxes, net We loss the do of detail year indicative of financial Total our that year. negative adjusted Thanks, I'll believe million $XX.X last share of XXXX increased are results. running summary second income $X.X to from our in quarter $X.X $X.X of XXXX. before expense a additional $X.XX million Don. or loss results through second million Net I'll at quarter our quarter

an work, the revenue discuss million of $X by Total in and driven First, revenue. the growth feet phase European subsea decrease the I'll quarter by recovery market to particularly offset in the price aerogel million. shipments of X% beginning of to in in States, the The market year increase lower-priced quarter of was square This million refinery average project price of project. continued increase selling quarter part materials both United in decreased PTT the demand increased the to increased XX% building solid in and in project, post-COVID and by products versus mix XX.X shipments due reflected conclusion LNG by or $X.XX XXXX. market, building XX% to by average a and petrochemical second square $XX.X infrastructure revenue for and the to Arctic our blankets, in this X-millimeter the foot. second products LNG selling per Total a the principally in LNG decrease the while

in gross in the Next, increase the profit material in XX% and quarter volume in was in versus selling was XXXX. decrease during manufacturing million in I'll the $X.X increase or year cost, expense This quarter discuss gross part profit. or and profit second driven by by the a XX% average price. decrease offset during this $X.X an Gross increase of million XX% second

expense order the resources in expand portfolio, supporting with to contrast, teams thermal materials We've year, and barrier expense. operating support our defend our battery also battery and and reduced operating technical to spending during levels of discuss increased emerging In of barrier associated COVID-XX year response I'll our significantly compensation capabilities associated we and our the in in increasing commercial pandemic. XXXX, are and second the enhance infrastructure, purposely this uncertainty of we businesses. levels to quarter IP spending and Next, businesses. the energy materials This thermal

result, a versus second increased operating by last million. to year $XX.X expense million or As XX% quarter $X.X

million. net we're extent, facility and of accrued accounts to on working activities improving thermal our expense was broad-based capital accounts from in $X.X flow during were negative the in million cash Next, quarter, focused and the lesser million financing through our of in Capital The by sale of $X.X included and I'll private the and of facility employee the and payable inventory provided and exercises. balances. $X.X $XX.X adjusted placement in part reflected from principally million, generated capital our decrease quarter. EBITDA Cash balance Cash $XXX,XXX $X.X million and Platforms, working a investment was during of a quarter of decreases expenditures receivable decrease increases discuss and liability efficiency by our a in and barrier investment operations. Strategic fabrication from our million equity Koch for our generated our Providence comprised balances the operations manufacturing offset $XX.X million option ATM sheet by East $XX.X with establishing

$XXX.X a we facility assets shareholders' million under of of and ended net result, As no million. cash, $XXX current of with quarter the borrowings million, credit our $XXX.X revolving equity

also year sell our million under to to quarter full want existing We an $X.X under I'll access facility had we moving to facility. additional do revolving intend that highlight any turn forward, available credit our stock end. I not to XXXX now our outlook. also ATM additional at

experiencing Europe. continues the of markets, and continued European COVID-XX South We're building market. Asia, Although our and negatively activity in also North infrastructure America signs to in we're growth solid seeing energy improving impact particularly in in maintenance-related

full million million for of XX%. million revenue between by and As XXXX result, are for growth $X $XXX projecting we outlook year our and increasing the And now XX% we're the between to revenue $XXX year. a

battery we time of call, barrier and the our our outlook and materials at support includes As our enhance expense resources $XX the opportunities. and of teams to incremental earnings noted in operational million thermal technical, XXXX of commercial QX of

course available platform incremental to manufacturing strategic engineering leverage growth our also the to advanced firmly aerogel making opportunities market capital when center investments the thermal the XXXX of We believe to of significant electric XXXX businesses to expenditures today $XX second and develop facilities us investments that expand to our vehicle battery these technology includes complete operating new advantage Our fabrication high-growth up the Aspen the silica testing production, performance designs plant. these We to subsides. position over remain strong million will barrier COVID-XX XXXX. to the our in outlook for to take committed and materials initial impact our resume aerogel characterized of to to of construct and

of million total follows: Adjusted between million between $XXX million million. expect Our outlook million, $XX.X between revised $XX.X and $XXX EBITDA revenue a of per share. This of $X.XX We and full XX.X loss negative of a weighted net million assumes between outlook $XX.X EPS of as loss year $X.XX is million. shares the XXXX year. loss outstanding $XX.X and average a EPS and negative for

compensation $X.XX foot this $XXX,XXX. an average full expense interest of million the and XXXX square addition, In of selling per million, mid-teens expense stock-based approximately of year. assumes depreciation margin $X for a outlook year also price This and of outlook gross projects in the $X

cash. our $XX for between range will expenditures million and to $XX capital the Turning million currently We project year. full

year, in aerogel confident requirements available efforts Q&A. plan planning business be our during required second $XXX.X to opportunities. to for assets other call million expenditure our capital expenditure we're balance progress As I'll SVB silica provide support strategic and capital fund our will facility sufficient our plan. and projections our credit facility, vehicle manufacturing we overall, Bethany operating But our turn over the multiyear to to under near-term our cash back and the for capital electric now

Operator

Instructions]. [Operator

with from first of the Craig-Hallum. is The Eric question Stine line

Eric Stine

assume maybe at we content per thermal contract these and that's look I vehicles maybe increase contracts? as in can side potentially the Any down new more with start two OEM breaks that hand. So or mean, vehicle barrier color its the how the there? I on or would more you

Donald Young

per content per These vehicle. additional are parts more is This Eric. Yes, vehicle.

if So per but more same you number vehicle. just content will, of forecast, vehicles

Eric Stine

part Or thought? OEMS, process mean, is more battery that platforms? on realizing just guess, thought from the optimizing their it is is And it that, they I of I simply than this

Donald Young

latter, more the Yes. No, actually. it's I think

materials, additional to of it's our platform. and becoming I a our PyroThin management uses products thermal honest, battery with be finding think within their more for function familiar

I So of say is this fine-tuning I are wouldn't sort parts, sort if emergency that of necessarily say design. will, the the these you this -- is would of

Eric Stine

And got that in as lot you is you activity mentioned, you've that laid X out. think the something about, a of that you as levels

about think some OEMs this you content knock other do that you As direction start for think that vehicle, go awards? as out to you the is

Donald Young

Yes.

question. good a it's think I

our Just there. content to $XXX and that our presentation vehicle, website said $XXX investor will trucks. in idea vehicle, per the size And past presented in often and also vehicle how including what have we the sedan versus review our on in $XXX believe of what be in between also the on it depending our content we've -- the past And of of versus really model. our maybe you. OEMs in we their finalize we've and per We've designs around the said SUVs

are And so valid. numbers I kind a John and little are would very But I If choose more those not get a point modeling I in comfortable anything, from I think with until hand, view. bit. of up we of numbers those think

Eric Stine

side, Maybe opportunity. just obviously, you that your rather on the thought of the had in than strategy. expanding maybe a just guess, market you Maybe I advanced But direction? battery there inbounds process have going little that? solo, a bit drove new And materials what on

Donald Young

Yes.

phase companies just our internally and silicon some it's the then new our it's And whom working a our us, that it's And ideas as down or I opened carbon a to I the to to think small our well. things. we're handful that Eric, we -- you battery think as I couple been expanded externally. and probably with suggested announced silicon-rich other is know, could material, learning active, said think the Germany. before, aerogel we've us role curve of development of some strategy to in One engaged. Korea has solid-state enhanced -- very it's own so driven it's with a generated have and Evonik we've And that SK exploring aerogel anode as others. in X of in partners, the But carbon in providing play include anode, moving

Eric Stine

one sneaking just last in one. And maybe

a my on earlier they long, about Just attention. of BASF think that I this of of the heard something that on I I you mean OEM a did, with year? kind it's in. you bit long mean It's time, I or is of so think, the kind that do that caught refocusing been a fruits building where that materials. catch-up talk

Donald Young

the disappointed area. we've the been we've before, As we've penetration of in market said so that at far or rate had growth that

were little believe it fair think materials quarter say the performance, role second in pleased is to high building And in get surprised we efficient that pleasantly nice just but there, overall. by uptick that starting play we've in we're by our in in noncombustible, a made building really to the highly half traction revenue materials firmly I have we're a the the first and very the We to materials. market. progress

Operator

the The of Souther next B. line with question Riley. comes from Chris

Christopher Souther

the where you So closer is just about, so. Is content? this this, to on timing a the gains you XXXX, platform? the some just little each extension cadence on of million of with having think, more $XX more kind details kind first the through of looking increase change years $XXX that models of about? walk think essentially Or more here. Maybe increase Should to the of of backend, later the does the it customer. here the million? we XX% kind that the or Maybe How out I talked talked previously about had in

Donald Young

a -- And For low next as higher millions this to want fair as what now, it were is this us. XXXX. $XX you with say issue before. of that I consistent single-digit rolling millions expectations targeting said want really models that in are off, are then vehicle we necessarily that decade. to outer for It don't that we million in doubling new mark want within content the single-digit we've Chris, we what the to XXXX set to in know, years per year year, -- the backend this say the and is And because

It's board, a that you. per calculation loaded. content for backend So it's necessarily not vehicle all an uptick it's across

and numbers us extra outlined comfortable question. previously. fortifies And that gives no content more we per those that look, really bit So this vehicle, a with we're

Christopher Souther

So talked the you've you've the stages that you've them? X cusp on a bit this that for being automotive on about, Asian more as global OEMs with, got scope point to are hear. great platform OEM you're this program late battery kind for the I Or here platform, is about of XX to maybe on well? traditional just OEM talked where people a launch, years what a that could EV kind is of be one got where that working of of with in win on which at a provide only is expected model there. the Is those just player? if Maybe that to of And think, then helpful top you the you of would little this kind that,

Donald Young

in What is very our the that's together, regions interesting And Yes, in a term. mentioned. in, QX one specific designed had have that win of their time the beginning the to program of is significant very design significant course focus and was of we as us launched to own several the that anticipating that. the What's there let's model nature and around launch in on, which pieces they effort you that world, is model interesting a pretty here that going focus we're near we a major keen with decade. they very this that into the work for was if XX will, being on gen top the in planned having have Greg. a the It concerted on call this to all it this we is the in is were battery And for company of power, And that platform, there a responsive based of battery X, them on Asia bring of platform significant XXXX. is just a automotive about forward. over way OEM their destined sort are and with EV rapid SUVs, models advancement

in this so seat us in And winning period puts I the platform really, time. the piece this designed is first of to think, into here be coming catbird

just, per rough previously. -- the dissimilar company American North vehicle content is numbers and so this, And on announced that not on kind of the again, from focus we've the

and is us start, with that particular long a start with company. got we've this a for customer, think and we outstanding just So this great the it's future

Operator

of Amit Dayal question with H.C. Wainwright. The next line the is from

Amit Dayal

market underway to potentially respect early probably maybe I is QX? shipping to EV first you the recognition of in revenue anticipate you quarter in some XXXX. these start you. I'm of end you hitting against models trying side, With something for see in the for the XXXX, guys? this the by product mean, see year, or Do terms already do these QX just to of coming for

Donald Young

we've initial got question. for year. good our XXXX that's into baked launch a but -- QX. at Amit, -- QX, Actually, this We actually the aggregate would And some that anticipate shipments of outlook in is the end but we

going significantly customer potential estimate there change for So overall revenue is it's for thermal year. second the barrier to some in XXXX, business not but that EV our from this

Amit Dayal

it contribution a that sort sort you up materials came concrete projects the of material on building more just going more for this versus a trend some the forward? from side maybe side, forward that you being contribution building going more will -- on then was And near-term see of of potentially

Donald Young

were more that in and felt in Europe. broadly observation interestingly States United active of markets that very here we materials is in and the here certainly building the we the pandemic, world, regions around The have several

finding activity in whole given this noncombustible, efficient, by driven our pretty roles in was this X materials, again, one particular, our was opportunities segment. even This of highly where any materials, levels X host with think again, not project or or high or I X broad-based projects. and performance, a given

towards believe we noncombustible. the do in in that of we the got moving is beginning that very to and the believe We think, very, the ability grow So idea business important to energy-efficient offering, is years that really space. our we've of come. highly this market And a

Amit Dayal

for last one me. one Just

versus passive think active? just KSP terms should investment investment, more should the the post how In we their the in we being about about think company? more KSP little of a involvement Like

Donald Young

the investments, of and segments more some bird's and sheets KSP, to focused obviously, on a part Well, focus kind get to of good a than also strategy, companies. us investors on first, other It certain though, fine they and and to balance they're eye made, investment bring their portfolio on they've in resources. money they very of want that making bring and to they're the other is view company their

of around term, my -- we're, sort the Koch are they that X, is the us for they all here so resources near into do notes, a us, given us. capital gear as projects And moving most Plant and projects for to for with team I around if world our the most most, logical, said you be will, in from supplement big very able advantage good team to significant high

So their again, of can. part to their portfolio of they help but way strategy companies first and foremost, is any in investors,

Operator

next of with line question The is from Capital the Doug Markets. Northland Becker

Douglas Becker

started you in would more longer-term the framing automotive get a sounded a if was it little but it and the per deal with color OEM the content of little on to to shorter-term address opportunity. the bit be were hoping a you potential the could imminent bit, but this And Asian vehicle little frame on You saying I size longer-term the more like really side? the similar,

Donald Young

Yes.

in U.S. trying platform XX with across models OEM, and a But used and ultimately. Doug, automotive was this. explain to will battery So platform, battery or XX be that I we're John think, the

in single Asian It model, -- that in automotive we're OEM, the vehicle, per and will be But the U.S. it think as model Asia, in although expected global content I With is will initial a very a sold the model. but in initially not is in automotive be significant with as about nature, U.S. by contract that same, of it's contract, its the OEM. terms focusing the Europe

what be However, what's today table to win, significant today. a ultimately a line it single which table that's as battery on the on secure puts seen. model platform us in we've a win. not is as But What's could

but we're XXXth could to from what, ultimately could XX big just business as would U.S. U.S. ultimately be, And in XXXth it we're what able we'd the the present, expect to platform, the be so extent of contextually, the models, as what seeing win at be of using

Douglas Becker

really the able get announce to being into first to this and are what the deal? something seem like it's model. quarter to It And officially remaining does try steps imminent

Donald Young

finalizing been unless I and were would and us not we you the on contract, talked about Doug, know well cusp the cusp. the think the have being enough, We design that on we have

elements we're the the working of final on So and agreement. contract the

Douglas Becker

but to get batteries latest potential batteries. of thoughts be in on opportunities longer-term then looking from eliminate the And because might threats runaway just could some solid-state carbon a arguably, nanomaterials at issue, the of the light your thermal want customers that at solid-state it and the threat. the and I use least really much

Donald Young

keep we'll focus engaged -- the -- evaluating work And testing the we battery we're make our and solid-state and a in yes, days with -- our the again, in with on the structure. the up-to-date So progress. entities. To context materials solid-state you X solid-state as of early of

milestone with these companies Evonik, and to an and areas partnerships have SK of would announce us. focal evaluation be to think able with some of the I that other these interesting kind we be for

that runaway only reach solid-state, respect we solid-state long the that time. of solid-state at that that that thermal of a scale the we we with that go XX threat that believe something and solid-state, believe -- technology risks time. fairly is period for develop time. be the out course of XX a And years. to around escalate I lithium-ion long period to And quite of that So towards of suppose will in over And will as batteries is versions the over the

performance, is that with that when to will will continue that into lithium-ion they also reaches very a if scale and amount the and work going batteries of believe improve and also but competitor scale. We challenging be solid-state cost

of comments, look, so indicated we're of as -- I American the And reaches my North part beyond XXXX. in contract entity the out

to runaway that's out people XX indication thermal issue that planning kind frame, XX-year For an time for of kind and be time into frame. of us, an actually that are

company are there of markets. into forever. anything constantly new a no technology innovating guarantees We platform entering especially long XX, very, years a is course, of think variety runway, for and that very So for is a XX

think the ourselves very do. we're So it. table solid-state us chips putting of some I to type And on in fact respectful for on again, we're -- it's the because

Douglas Becker

soon ABM that that, be the Any is too Or opportunity? change to TAM? well, to broadening

Donald Young

now. like to we'd think I alone numbers for leave those

Douglas Becker

They're is. pretty as sizable

Operator

is from next question WCR. The with the line Shawn of Severson

Shawn Severson

that I lumpy maintenance right timing hydrogen work over wondering turnarounds anything the But now that, assume infrastructure look can updates? was most about I obviously bigger for or things what know have can the business Don, a the back any out been how ramps years? and be stuff of I bigger the if and delayed. been moment. of they -- project next has does and eying to come just the energy front But going on uptick going difficult. into out. then be And projects couple to that

Donald Young

Yes.

the as correct have as the out little has way want seen their coming it. activity maintenance. We certainly, work. working everything So you But are a levels been we murky that. -- here always I pandemic. that through are are we maintenance we, to of highest that love Most on certain say, regions These days

into a year. a specifications We so to With a in U.S., I is the LNG chain been supply respect projects, as the we're were the announced very range activity, a his restocking the and in this last been another ended put John position here on of us call, started. the pandemic in There's quarterly pause, really terrific channels. in as leading tremendous that that of said especially strong believe for projects amount in as LNG, in comments. business And the did, project which we distribution we've Arctic wide we of additional

if them will seen come in some initiate, fair stage, the we our as planning have We you we win to those life share of again, to begin will. believe that And projects of And the to of again that expectations of XX% have be get backside XX% the revenue and here as the every norm we there. mix our maintenance will work project we pandemic.

Shawn Severson

just into you, they're is XXXX? development And a in they the different this wondering, year the looking with is even at a for in chasing if there model is different of and product. surprised, trying maybe that of was and launch? converging PyroThin for a all Are all a I Are looking little development, -- bit this stages coming year though customers may really pipeline those we're even on? they all XXXX a there? to of year mean, at of though timing, kind OEMs differently understand just or I be the stages in

Donald Young

that we the they or really of course what look companies, next if have seen X it's the then X announced, Well, 'XX, out some and you of of And where X electric XX company XXXX, some vehicles they'll you saying those saying you and then out. years. have X they they've what at quarters. -- typically, X these to in XXXX, see get as vehicles, or X them And the or XX announced see vehicles start model here even have you vehicles over 'XX,

this that models you digits time $XX low more millions out So being number year, number it's battery and boom, that that a talked target the company not in that American mid course, XXXX. market get than number. from single-digit discussed, the And really XXXX, of picking That's next greater double over about utilized of ramp just platform upper of by then, you're share. we've up the single North to year, a we've to function million with inconsistent the

of models. companies timing ramp very that various these is of think rolling I out of So sort the emblematic their

Operator

line next Global. the Tom of with is The Seaport Curran from question

Thomas Curran

would side, multi-model some this to remaining So hovering design award form the model a platform in time PyroThin win starting with out steps automaker. based be What contract? the line the battery progressing in on more detail a bit on this just pending Asian single from of

Donald Young

finalization much relates development, battery think I it their Tom, of the their of platform. as Well, development to really

it's what the a look you we So brief companies and variety if at little history. took. of a people -- mean just I approaches

been be they people a program. that. their that road their certain SKs, great Tesla battery and they and their tune more example to Samsung, viewed North had little design to the of think really the of I time probably very as and at our approach, concept ever specific more they rely I their dedicated the a Panasonic, Some later. of did they they good in company themselves the if would And sort began battery storage. an XXXX customer the more Others of good rely a example cell on say that, and to of XXXX, change storage extent to American CATLs because more partners, the sort of energy they've their a came to entity LG, in the drive companies going point. world frame, think technology right, integrators, a platform you a energy since. really down is will, as this is going of bringing I approach where made And were around change And this think in-house really to -- that were driving and They really

have companies several idea. So really -- on and focused this battery platform

-- their this. I think, So And think their a time the gave. don't good Asia-based launch in they on customer, lines. we is stages slim in personal They own down of corporate own want they're or of promises development I at different the example

on approach the and to when But first that their So ready had work model themselves closely was battery be on they know sure [indiscernible]. we them platform we with that the focused that. to roll they're

Thomas Curran

volume to straight big your with battery in it a last start your the in China? X. contract current Does next customers to them us, design as seem maybe you've very for customer? And to update such prospective production the or a most assuming a then model similar Asian pipeline, you as X prototype into win candidate made to at had of the jump comes from for North gave based becoming or sale gone X first first likely remaining was when customers leading X the one order the platform stage this single you development automaker American you've A of

Donald Young

quite who broader But entity. work. I there think latter while on the it in of are we're And platform platform will are very the be the some specific advanced really, X closely a their a combination battery battery for model. working

we that into could stage others with right so well, be as And final Tom.

we your know, selling X are parts companies. least think point. these to companies, are out active the they're be more combination rolling a selling expectations you we're this parts they're it to I will those is With and at selling is, And prototypes, to for going the them and -- X, as respect at production going to vehicles, I that prototype be not the at So distinction parts But selling of of into X. idea least parts to would like planning are that vehicles them to on maybe prototype public. whereby

John Fairbanks

yes. Tom, Yes.

So X, second revenue from stage companies in prototype quarter, but the it had was revenue. all in we the

in get platform commercial stage is to to them either to X, model. for a prototype a So we're you're kind that then battery And that contracts of or converting already. doing bucket for what are

Thomas Curran

is X stream So that that part realized dollar XQ ever prototype since converting you just you've of form now prototype into XXXX, back first about some sales in steady had of of and a revenue stage award? production all

John Fairbanks

to becomes dealers, it material the So up really production end in prototype prototype into vehicles in in a they're putting right? that's is vehicles, it's driving lithium-ion When and sure runaway going make that really advertised. as their perform it's to stage, thermal them vehicles those they're thermal ensuring difference. their and instigate in might that make around It meet put if those go when award, Yes. going they're and them design going they lab batteries, and sure they into the or barriers barriers, specifications and

but they buying are so material And point, from that -- at us.

Thomas Curran

comes anode partners explore that it your ABM some host to structures strategy, first guys design? samples prong your clarification. evaluation you from your your investigate other And using are way help is in or the differs understanding uses hour. that those scaffolding to be the When helpful side, try a of the to last on will then on my one, it this finish That's

Donald Young

with if No. recommendations In legs them our silicon-rich metrics we material specific us with they as iterating have iterate. of oftentimes the to this forth for achieve. back three we traditional as approach, or milestones first supplying our together will, and -- to leg the anode you been them set have And in and

answered that hope Tom. I your So question,

initial our that very that we're at approaches, our and approach. other biggest focus of the level. engaged By So today. traditional These still was That our X that's far approach, was handful areas who of OEMs explore small with had, that's with that some ideas came. really that and battery wanted And emerged we automotive again, from conversations us. how we to additional

It's Our the carbon carbon around of manipulation those of that expertise, aerogel. course, is the -- of materials.

really that way we're being unique, talked the it will I'm I We've yet notes, aspect, that we PyroThin. pretty in about particular adoption. that said it adoption about it And broader So us, talked our broader is we a this the interesting we technological suits, industry think, on And PyroThin. that ABM. the with not know right in being provide if as concept material, strength. host can it's standard We've my goes a agnostic it an same opportunity material. this particularly an But with we and approach material. to to quite gives allow there OEM with construct other a have

collaborative discussions the so the work these we're that and nature And doing other that's of companies. with

Operator

Genuity. question line next of the is Canaccord with Jed The Dorsheimer from

Jonathan Dorsheimer

fire mitigation. first model? but battery a if that some be a new existing the market of to asked, going for been is be on engineering has into the you Or out new have value In gate, product this I model? or Most there's existing an guess slotted is launch? for words, other a platform implement that problem Would

Donald Young

that doing work we're thermal model. is for a barriers new going the PyroThin The into

Jed. so running that's the there looking challenges, work battery the vehicles runaway that platforms focused because distinction, are there We not for are know that right? we term. electric the vast on new of so work majority And are -- doing typically thermal is doing And existing management, if on thermal a and into remediation we models, new actually, good backwards, very right it's sure,

Jonathan Dorsheimer

about at make out or I to not and yet on misunderstood, seem point this thought I that abandoning traditional, to a at anode, the solid-state just endeavoring solid-state, heard just development to there. squarely would thought companies increase talking earlier silicon you're moving I proposition. that I into still back frames which coming all on you're your want time seem to focused anode anode be -- Then silicon-based solid-state you maybe value developing sure your efforts I but solution? least silicon pushing into

Donald Young

on cetera. you we That's the today of as between our gigafactories, doing, And use and right. we're sort industry and lot where sometimes people chemistries predominantly steps principal -- the today's of seeing people again, today's And is We're approaches, is a expression, are focus. today's solid-state. are of that interim what focused today, where the true work et think

the a may We our role electrolyte. work we're that much We our construction. is with on but materials that believe what solid-state a many very even we down have some our a many, years, And believe silicon road done this in carbon the lot. stage have unique and learning aerogels on solid play do properties

again, So now. we the distant many believe from many, that is in out years

So our carbon assets. that focus, technology that earlier, to said silicon principal aerogel anode again, structure on current rich bringing I is as material,

Jonathan Dorsheimer

strictly with One last LNG terms everybody Or work reformation? in on north, that doing there question I'll component for LNG? is is hydrogen up their let you're me, get night. that a of and steam The

Donald Young

is. It

and for storage that the providing transportation and it's in role safety we Our again, the articulate management both -- the And thermal hydrogen. side. on we've Jed, they're in is continued are LNG you the as liquid numbers. such hydrogen to role may And but to are internally have have numbers fire a of kinds a about our value just is natural And that just, very gigantic offshoot of system talking an interstate well the LNG. of the of of sort proposition the know, scale

to have some that up get it keen materials the value our make partner understanding that a with and people the into exploring are leaders bring sure market. We're trying -- smart of on in to can we're our role. the space So proposition of

Operator

pass conference any additional waiting back like at remarks. There Young the are to Don for this would over questions no time. I to closing

Donald Young

you forward October. XXXX Be Thank in to well. to Aspen, in Thanks everyone's very you. and late interest you, third Have appreciate results evening. quarter we good a Bethany. reporting our Thank much. look We

John Fairbanks

everybody. Thanks,

Operator

hope Earnings Aspen you the the Call. concludes XXXX Inc. Aerogels all of I QX rest That your enjoy day.

Aspen Aerogels (ASPN) 31 Jul 212021 Q2 Earnings call transcript