ENVX - Earnings call transcript Q3 2024

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Operator

Thank you for standing by, and welcome to the Enovix Corporation Third Quarter 2024 Earnings Conference Call. [Operator Instructions] As a reminder, today's program will be recorded. And now I would like to introduce your host for today's program, Robert Lahey, Head of Investor Relations. Please go ahead, sir.

Unknown Executive

Thank you. to Third welcome Results XXXX and Call. Conference everyone, Enovix Quarter Corporation's Financial Hello, are Chief President today us With and Executive Dr. Officer, Marathe. Chief Talluri, Operating Financial Farhan Ajay Ahmad; Raj and Officer, Officer, Chief and and then Raj provide will an we'll your questions. Farhan take overview, our After call. the we'll session, Q&A conclude

Relations replay continue, will kindly our remind website shareholder third XXXX we our you on Investor let and page our available all later the be me we shareholder subject release It's on after note Please press contain available the are the that of at uncertainties. letter this quarter call market of that Before this A risks video that today released website. call and ir.enovix.com. to forward-looking closed letter, statements conference today.

based from current differ due on may factors. results or are actual events a and materially variety to of expectations forward-looking These future statements

factors with of business, today's affect For filings our please those and to future and shareholder the refer a that disclosure in Exchange Commission. the financial and results could discussion Securities letter our

All as undertake we update based required of be give statements will and October to assurance to intend available not law. that by today, made to We no us. prove of are information currently and these on correct, XXXX, no statements as XX, duty do and statements our these can except

with we During accordance principles. are accepted generally which in this will prepared accounting call, also discuss measures, non-GAAP not financial

non-GAAP the our financial You can Investor in to website. of find posted a page our measures measures the reconciliation letter, financial Relations which of shareholder GAAP is on

begin. over the turn to call now I'll Raj? Raj to

Raj Talluri

us joining all Rob, and you, Thank you for thank today.

a I'll recap For of our start today, recent with our results. format

closing over a before for and milestones the financials and your we'll Farhan recent to take few then outlook. the I'll questions. our I turn and of it have comments, Some

growth and above in To forecast. further sequentially quarter. achievements, grew We Now of million, XX% we the $X.X QX our second recent had a very expect midpoint First, the of delivered productive a recap even revenue we QX. our

smartphone opened companies for we our Malaysia. first even quality they're in manufacturing and are a facility, huge and our they now IoT our was really the deal This confident our leading capability. tour in of by lines production FabX Second, numerous because us more impressed

to smartphone announce a our of and their for of new our the Third, a X cells models, agreement our late of entry I'm with we into would leading that 'XX executed this market. first official OEM pleased battery mark and the global launch fund smartphone qualification

on it grand the R&D a was California. prospective made plan. schedule ramping accomplishment batteries only Now shipped EX-XM weeks just showing for from now after company, the which to FabX here until samples we accomplishment and opening, that It's customers FabX with very in significant from also pivotal consistent our a in headquarters

yields in to customers site the operational, in and agility line IoT comparable are is final The line is initial 'XX. in mass to and with line our with high-volume time track which testing the also levels and from is expected the and XXXX Now start for fully first we late California there. production improvements client achieved complete Agility accepts consistent the and line and on with smartphones, our

that Now a OEM. a thrilled with second formalized announce we leading partnership we to strategic are smartphone today

customer. I've market smartphone our are that commercial qualification passing we We expect first the before high-volume ramping have we Now key outlines and customer deal set our lot in process to line, production. would doing we're are a and we together work be meeting expected do this upon first with the with hardest. that but high said in volume the with still them, enter and agreement 'XX that of times customer, to many together them milestones working smartphone with the our

leading a we the EV pipeline, sales schedule on beyond ability the purchase with XXXX includes making mass high-value order. we're our This just diversify sectors space a bolster further our as as which to progress partnership on smartphones. production well IoT underscores Now customer, aligned production to a into

our opening provide. and very helpful further pleased commercial recent of success with smartphones, Now getting been we which in can from that leap I'm pull a has the believe transformatory our in and significant for FabX also benefit and strategy energy surge AI-enabled recent contributor. very our validating the is We're products driving the

in Now X,XXX ports could smartphones million I than million go soon to to today quarter, in last pockets that X,XXX to AI. our X,XXX and battery mentioned are more due beyond

to batteries. that asking are just million I about months are later, you X now X,XXX our us customers we report smartphone Here, for

this is increased. is because smartphone the why important? not important This has Now size

density So the producing the well will which capacity fit batteries. space, very which to company higher like batteries a same energy in Enovix, on for high density increased need this industry energy works bodes

we've earlier, mentioned already started I As shipping EX-XM.

fast Now needs as possible. as launching as our increase, continue the also of EX-XM we're customers to

density increase top EX-XM. energy mentioned I will on EX-XM of before, As their

The of full-scale line first our customers EX-XM in in and to and scheduled 'XX to are to QX, these shipments production accelerating also are sample select mass time key beyond.

wide and EX-XM, reaffirming We commitment also of customers to solutions road pushing map delivering completed industries. our industry-leading and our across to the of innovation beyond the range product the a definition boundaries

the Farhan turn it for over With I'll that, financials. to

Farhan Ahmad

letter. is the shareholder Raj. the in financial quarterly All the information report Thanks, in relevant

keep short. my I'll So comments

a QX, which the in at of operations quarter guidance of guidance of cash during Non-GAAP million our of we CapEx revenue the $XXX cash of roughly of loss and equivalents. range delivered million, And $XX of $XX.X a above loss loss million ended $XX million, used range. of $XX end was guidance the midpoint of quarter. in And had EPS with a We loss million. and of came above $X.X to $X.XX. million the in $X.XX $XX $X.XX of to of range For about million of our third and high at came we EBITDA at our non-GAAP

is and into sheet gives well XXXX. runway us balance strong Our

to turning Now the guidance.

of For XXXX. fourth the quarter

$XX the of in loss to $X.XX. $X.XX range and million million. We non-GAAP $X of EBITDA adjusted loss million and expect EPS $XX $XX million to to of revenue

Raj close. to Now I'll to back turn

Raj Talluri

Faran. you, Thank

substantial progress As scale see, the go site completing opening in securing customer the of high-volume acception customers. our and testing to line Operator? major on date can will FabX, With we the most you quarter questions. EXX meaningful be milestone third our our our our of can to journey and by next this samples commitment that, the shipping we first to made into quarter

Operator

will the We that session. this note recorded. is being Please begin call Q&A now

during of X to Before we go call going are most voted by this questions the we registration. call to the live submitted read highly shareholders questions, ahead

yields the on an And line? what can is, question we line are when update first HVM seeing currently The on yields? Agility expect we

Raj Talluri

Yes. Ajay, to want you that? take do

Ajay Marathe

Yes, sure.

the to node line do. mode little than with expect here, now you closer in to able the to XX%. last X, than we at Agility SAT quarter. Land a right in completed And communicated the the quarter, there's where SAT identical and no So EX Fab the the we the yields off line brought And XM on during was line HVM lower as anything has we Agility bit agility to line, agility what technology up all, left the is higher kernels which reason

yields, the feel So about ramping. they're pretty how good we

Operator

Enovix technology there their patent demand arrangement utilize once Group as scale Enovix on Enovix begin you Enovix utilizing Understand advantage in does but is a see you and have batteries XX question a applicable, is where competition prove market. is where of first-mover proprietary process silicon how customers second before The and your material. larger protected SCC-XX a afford the and markets exclusivity with And technologies works the long

Raj Talluri

the secrets industry you density only as a Yes, significant to have use question. trade how in patent not significant batteries. that to but patents amount alluded of for manufacture more you importantly, of to, higher process Thank know-how we actually entry with machines also that protected Yes. the we batteries, and amount and manufacture

before, you machines we -- have mentioned the machines battery. designed the as the As design -- first then the make and I

So intellectual is in areas. our property both

of active manufacturing allows us silicon. the XXX% Our use batteries unique to architecture

excited this the that and We XXX% silicon by team ones are in that accomplishment has first use the batteries market, we're to consumer really active made.

the doped of pharma The SIO, we that mostly people XX% seen top have or been graphite. case material SIC some who in best X%, competition silicon on use has of

If have up the swelling is seen continues the to than manufacturing battery traditional more any and swell we process. use by that, what cannot you be controlled

there that why advantage and strongly have we this is unique a we proposition. have value feel that We unique

on As -- GroupXX, material. agreement Group far working as our they we're -- great we provide with with anode XX,

suppliers anode and other silicon of that carbon. of material We work use with some also form

So of market the suppliers on on of the products end multiple use requirements that based and we the have based battery. we the best

So thank you.

Operator

Capital Loop comes Ananda Instructions] [Operator with first question from Our Markets. Barua

Ananda Baruah

just I'll announcement Yes, X, congrats announcements, the around -- clarification start the really new could. guess a is Yes, the I with if Raj. I on

announced new relationship? the for customer the volume is that Or the that December XXXX, prior relationship? that is the So customer? quarter Is is new

Raj Talluri

This customer we to agreement jointly we qualification that a to a is once we launch commitment Yes. on the next in There past once is -- the announced that new batteries made the today. agreed the as that that year. that commitment

and that the we for hope as also smartphone just customers to customers along goes there work multiple proving the more technology market. way, get value in our other the well we with the year The are by is of

Ananda Baruah

year batteries remind And going I That's you'll goes, very got market EX-XM, to next start out. EX-XM everything samples us it. helpful. you at volume, well, getting once EX-XM, which I goes got it. it if if you with be can

Raj Talluri

Yes.

our a that get people to and what mentioned, to on working like sampling hard accelerated we I and EXXM on go this technology, performance to models, with that fit battery customers update tweak the our we the we to As that. is we seeing. They're year, like are some X be XM to things customers and product. expect to we giving work those will are particular sample of the People which to and smartphone continuing they're also. us production and better that feedback is next

Operator

with next Oppenheimer. question from Colin Our comes Rusch

Colin Rusch

initial pricing as what's a about how how you've communicated? yields little pricing your customers rolls are specs that talk As and bit on can batteries, target dynamics through trending margins previously with the well into evolvement as those that you from and gross you look your at happening

Raj Talluri

of now pricing other IoT pricing in of We've products customers some the the space. next also customers with launch the We've year. to closed with we're our Yes. expecting started these discussions that

We much energy end premium because density, premium in value translates are very to to into we a that's provide where the for the is which are smartphones, command on will valuable for where our tier and we batteries value continuing customers. be able higher provide focused

price density. the battery able able take to give higher customers our of because premium they're that So are us to advantage

about good pretty feel we So it.

get to we've long-term the we these gross our get we for profile range. As XX% at we to get margins, that. to to quarter, as the gross in last And to the mentioned expect smartphones margin expect that prematerial scale, still in

Colin Rusch

then Okay. Fantastic. And million...

Farhan Ahmad

to that And already like is the make premium. not sure -- margin. expect energy plus got that we margin what density, I get I see gross batteries we said, XX% just are higher there. cash which it's of And you very a wanted clearly can like mean, just you that we that gross in market, the Rob get

we XTM and and get once premium get and expect types sensitive have get well. energy our we beyond like long-term the scale. expect And to is as margins that to we so we us to those to for density target, it's can density. said, This a we scale, achieve energy And get market to

Colin Rusch

that then And clarification. the off the what's can and the guidance to in out fourth much revenue $XX is appreciate million, coming coming just I million the revenue. Rugged line how break and Agility you quarter in $X for driving Fantastic. and from

Farhan Ahmad

from coming There's [indiscernible]. the coming SP-X Yes, have is coming a But mostly time, contribution at is Agility the sampling [indiscernible]. mainly revenue amount and it's from this mostly that line. we small so from

Operator

comes question Bill from next with Peterson JPMorgan. Our SP-X

William Peterson

to wanted additional announcements about the see ask Nice to I sampling.

received to I of I looking sample the What's then? OEMs out top you excellent think Have So initial the how top X guess X. many samples smartphone the feedback the sample of you're far? these have Are or device factors China? player? similar quarter guess, U.S. other much form And large sample also all in the the that there are you with or in pretty Korean large types the thus technology. I

Raj Talluri

as trying sample can as we But I just we the customers, can. mentioned, we I from of I to more can. It more. details it's we we're sampled to really There's trying are many have sample you them we'll and them quickly interest all just make to continue lot as some many, a of different as line, to Farhan... Agility as say and to. wouldn't I are people, and The assure give make be and you fair And we up guided can that and quickly there's demand Yes. that. who maybe

Farhan Ahmad

are that we OEMs want No, X customers I we sample, X in that the to like we just say have disclosed top have said, smartphones.

are not the company. companies very premier like There smartphones in So that they tier are are tiny prominent some China. in

tell And so can we them. that something that's

Raj Talluri

that's see what we we're our where Yes, prioritizing IS because first that's demand.

William Peterson

volumes? guess how I of are Can on given guess, the the production smartphone be Or commercial expectations of you these plus, millions, new give in kind what I announcement, we in the side? a IoT your I smartphone about guess, broadly expecting you're schedules. OEM think Okay. side, can XXXX? the sense I some early volumes mean in these should -- with

Raj Talluri

know very Yes. to difficult It's exactly that. SP-X

I will more think clarity we along. we move get as

they in vary smartphone up. important more of give model they'll initial volumes through you'll how penetration They're to then going XX, like are going to ones. launch smartphone make when of tests and the would the understand set what think I launch the late and That's phone And go the they manufacturing go the battery up based on build we ramp going and and another line. finalize time, test last start that sell through them, specification of to within size series samples. process which would what so XX. in model them get they in keep them right? of phone And least on targeting use model but small, the and and size on based the see the then going mentioned come more itself. them the on, will of that's I that exact the as our typically then at we They the models. That's we're based from performance happens, it's And beginning regions So will works. how would So into which to they high-volume be, usually to be, that

Farhan Ahmad

-- -- Yes. And felt customer you like customer. Raj part your we the have the mentioned other have ramp customer, add, thing the getting can the Once first earlier, to is value the changes. just first I you would always the hardest it of that proposition

goes the I else to lose. goes customers that, -- a Before use and proven, it falling it, risk then If on nobody this and the it's it something using. Hey, behind. changes, is then in acquisition a launches smartphone then other if hand, battery I wrong, for if and is is the don't best lot there's the that a battery you use rest then And you're

the feel that expectation. is the with the us they with if launching the performance that, engaging on how So we in in batteries that gotten meet in with samples, And initial they and line least that's X based and see we said and to very it's at 'XX. like over form phone customer have has a, the their intention hump about encouraging good a of factor build approached

Operator

question Gianarikas next comes with from George Canaccord. Our

George Gianarikas

of to and it the year, on late to given your you the previous Just takes to and how long for wanted get additionally extent revenue how pipeline next fill question, tack to are we maybe designed in qualify to customers meets? deadline there the to testing now come that you still in, of is that if end or revenue the kind your year potential wherever pipeline the and XXXX samples to between are fill

Raj Talluri

the a process for giving very they going market. customers' that stringent batteries But do That's safe. is people products, And than the It's to that on and put in-house to semiconductors, on. of about strict -- amount we're and I a safety what qualify lot time. a most important because the people do that make of and to Batteries, Yes. need be it realize people seriously device. qualification the how very right? sure are so the believe a we lot takes example, more all when based thing want really certain take in quickly of in is testing what this

well, be I thing. late things could tell But planning are go will much one next But if it that will faster. year. you So be we

once come hardest and the with much they've quicker. much the are in customer some their any and supplier with ones faster batteries is that First launched us, system because models you're better following

think I So the thing. important most that's

George Gianarikas

that, a same additional could for pipeline the the fill revenue year? to Maybe applied IoT as follow-up to who does logic customers next

Raj Talluri

In testing stringent some the want in less because, to smartphones, IoT markets, could cycles. a be for little X,XXX example, customers XXX

discharge cycles charge to XXX,XXX and X,XXX So can to dispatch and because touch you times. XXX test months and takes

Some cycles every I'm be long. IoT could there doesn't that product because charged maybe only markets, lesser. people not last the day. want XXX

X product test a If the thermal could example on. important. be as that portable larger the test example. you safety launch because test, not do lot Like it's that's device, you cycle another portable drop in a smartphone, electronics shorter. of where like So device and a a like like maybe testing I'll people could give sooner a in abuse so

it device, go the all product how device do many the the go to the gets the production want to we how that what to customers after of quickly qualify. how again, it can that testing comes give how So is has nature used. and them is samples down cycles a much to And through,

Operator

Richard question Northland. Gus comes next with from Our

Auguste Richard

Yes.

think into the and IoT into mix the given that revenue getting mix that line expecting, be do you're 'XX, visibility both Now looking you're potential the what mobile? you you're given would for

Raj Talluri

spend gearing much time the We first the seriously, be we what revenue X but that of we to take line, and is at the lot is thing much, once at get is much capable we and line through lines. is much to. of making tests so around is I customers large-sized gating when their units we the the get X,XXX for the the But how running we customer I time up thing $XX on will think safe and new are go revenue But batteries. the the qualification think quicker. the can a like all batteries are very that there, mentioned And think time our we million mentioned I before, UPH for line -- not again, sure to roughly supplier.

Auguste Richard

wondering are you And year. thinking production that if I second it. end starting think those talked of the I plans maybe about Got line next then Okay. track. about the was just had at still on And

Raj Talluri

way that and as more this. second are 'XX about into next qualifications through when know phone, line quickly more more visibility The we'll probably the example, Again, And we a we for model the line need second the Yes. high-volume And a you're very to on to and know that. volume get going, little is up. it's we think higher, getting build then that have as a customer if if time. bit start investing we'll is lower we

So his make also, the than that is the we great how whole reduce team it have not line -- the and faster. want a make sure cost some the much line line. only second and but ideas first Ajay to to cost on lower

to So 'XX. more else all building you are those account. things 'XX through how want those Anything and you were in taken add we Ajay? we'll give XX, lines And into color

Ajay Marathe

Yes.

plan working And that, plan and substantially now what we Brad line significantly. Just the was the to line said, to #X. we to we from to high-volume that line, the already where learning said reduce reduce can are that #X, this executing add the cost we just line are

So good rush Line and a the build. we are need we order the of line second cost of X, that proofs in right, Line line we finishing ready which Yes. in of which those would to not it, is into been which we're be concepts, actually the X, we now too. tested to order replicate have up are reduce ideas, right. works the which And that right before yes, typically X the POCs will then the to we because line. Line of before many cost we reduces be through concepts, exactly lot that And don't have ordering want

Operator

next with comes Gabe Cohen. from Our Daoud question

Gabriel Daoud

differ to prolification but back into has the guys, they're achieved, happen density could any a some talk Hey, be charge order, bit through capability. model, it if everyone. a to of XQ depending Maybe need just you exactly kind targets of curious the brackets going could little process, maybe milestones about whether there's maybe specific cash energy on or I specific but what on from here XXXX? or put cycle you around it's to that life going that? know Obviously, may

Farhan Ahmad

Yes.

get based the the from them. And So now milestones we in dimensions, right? will the expect the samples. we to we order. ship will important make will on first get those to X, final customer. the we dimensions is the Raj, And from quarter, that XQ,

Raj Talluri

Yes.

Farhan Ahmad

So those there are the milestones you. for

Raj Talluri

energy targets and clear on fast have cycle. do charge we Yes, density and

we have and from to those them with them. deliver working them, So those to do are we targets

Gabriel Daoud

to Okay. And follow-up that. then just a quick

expect the sense terms get the they range could a of like? models a get of you what in the order what any specific to just the do kind So look to order size to on try of actual year, of in XQ. And shipments

Raj Talluri

Yes.

think And it's I most color tier. question. give that value. get to about I That's more tell we in We'll we more premium closer. we'll you It's provide hard now. where you know the it. can as that tell answered I

Gabriel Daoud

then and in additional And door the bring it. options comments if think just a maybe Okay. capital needs you quick to in follow-up. you on need capital Any

Farhan Ahmad

Yes. Thanks, Gabe.

capital will we capital you if look the mentioned like we have get we and to I've past, like may So more need XXXX, more to to we as continue runway profitability. evaluate it, until in need

pursuing what we of the so the a raise possible are lot company with the dilution for are avenues the governments them customers have open the capital. point, the company, markets, we X risk and to to And path efficient sense There all and capital least for the most managing while provides of and best for business. the the makes see at at some

is thing we that milestones particular before capital. So we go on about that. and will big one very delivering evaluate we are continue raise the And to

that also important something the that's company. to So is

Operator

with Soderberg question Derek next comes Our from Cantor.

Derek Soderberg

Smart the don't opportunity market maybe what the regarding Just addressable investors to you The that I there if market Raj, XX over sounded sort years or so. expect want targeting? And cell. about guys talk about glass capacities you relative versus pretty like from you the customers think it a should devices, that. curious for size standpoint, sizable smartphone guys. the are Glass these devices of know smartphones. of then next I'm today content how But a smart what for could those maybe battery

Raj Talluri

Yes. Great question.

speed, the the So of and them the the is on. -- the they're things glasses. phone kind mode the that first, when smartphone And When on, experience, short of smart because batteries add These right a put GPU display the is call given the time. as is memory reason on some of glass very last you the to I versus of on, maybe got And power very point headsets. on, draw period to now. your requirements is on is fully real and card time. like full inside they're is to my also smaller get processor AR are VR, they're the on, they high, it, is color any actually wanted battery on you is market higher running so this standby to much, the draw the requirements people market. than at that And little mixed don't smartphones bit or battery or on have much like reality The the at the XR, for look

very that's in market ideally suited of a energy small high which batteries, our it's for kind even form density So factor. deliver

years, these So seen million million, that's the out of units years. in in be what tens is saw market XX few like I've a millions some where reports, excited XX industry multiple I we're by. next will

I think this out. built market is still being

and the products custom I've product, forget customer, seen last I for that interested think demonstrations I a or announced then they quarter was look sells quarter making in they before, of them. are amazing. we the our

made a think progress been in lot optics. has waveguide of I there's

Gen is demands can expect good. really, customers to you particularly a experience And making really, I really really use get to more and looking of now, lot also those you speech lot that the with So good. products. that's navigate start a And battle life. AI,

there factors sense, think be in smaller So they bigger If that batteries like when batteries like could they VR when headset. glasses, AR, be you a look form I there Vision there'll the the look head, in they on where slightly batteries. the like batteries side batteries, could Pro, bigger may be if inside batteries and those it plug the be are different

So there of form be for multiple need form to But have devices. factors of a so that density in those energy them I high kind factor, expect of something all this suits us. small for in batteries well

So is a market nice that where premium. that are it's market, ESP got It by. first I quite may large become we we And to market very the we bit can think excited little our get think quite a really a possibly longer but it's ASP I'm in market I a a take it. a good seeing batteries And for us.

Derek Soderberg

regarding then follow-up, the around Got customer. my announcement it. just as And the IoT

by units IoT device maybe there which sort used if something speak been something sort means battery Is production? million that's is. what can it that should go you you off to I'm if is device wording mass of? annually, can curious that? the X that kind I'm Is also, of of of curious mass quantify And Some of we like then production.

Raj Talluri

if the buy a some of trying you, of know get all terms to we is. and who point little Yes. names is on looking they forward customer promise to I probably get customer hesitant speak it the into customer. would hard you you big say in be customers, are work are Unfortunately, device, to say I to us that. this which But exactly so often understand, able the when that I that's when Like not we can from about them, I samples these speak excited market is them. But this can to wise. that question we know And early-stage how a at products, letting I be everyone at speak mention get which in that I'll is that is something got and the you we you're company an to customers really that. are. are it should what will liberty

Operator

Our next from Milligan question comes Janney. with Sean

Sean Milligan

and you line? the taking deliver next call, answered splits CapEx from But how of year? the so you that been what's kind sorry of fourth have over kind for the what's to of in maybe can the auto terms quarter if first half remaining up like this. Thanks question into already the go And another first

Farhan Ahmad

Yes.

in will most this CapEx be of year. the So

the year. million -- for So next then million and uptick. small maybe be fairly the most year, to a may we should it carry lot we we not the be ourselves that expecting line. And should expecting to next $X when or line. X we And all- so on overall, million CapEx that, -- are year. this have go until get are sorry, then the might year, ahead. to Gen an And next But ready $XX funding will mostly we are the for are done line this this we about then be somewhere for $XX to year, we expect CapEx order

Sean Milligan

be to of $XX to How much spent is left million? the that million $XX of

Farhan Ahmad

only is year next like $X million. like that's No, about

$XX look can year. about the So we $XX the million like million year, for at are and expecting this to CapEx you for

Sean Milligan

think How about the then that And should How how on cadence? splits. lines, payment much think about start additional is Okay. as we we should order to you like order.

Ajay Marathe

said, that's is order. how on line, proofs have we doing next that a like to not the of do concepts thing second The of is we And are I the of line, on Yes. fall spent X is the target this Line economical been X will think and lot Line to where about more we POC is the roughly concepts. proof Line only No. is X, actually line have XX% high-volume Line Again, way X expecting of roughly.

XXXX. do we'll on long we earlier a we order flow cash what is way will items, actually manage lead time So year such in the that probably the in the

be remaining parts And of and this would of year, to the year. so of is and for profile get up by line. orders going end closer will And it, the typically -- QX, the we we concepts the the to demand. all the demand the how how through pan the That's again, place shapes driven the out call as of proof

Operator

comes Schutter question Our with last Mark Blair. William from

Unknown Analyst

details Thanks, got team. customer. Congrats that the in again engagement. We on more second

more concrete? opportunity a this eager for we than other? to race try Is each an the X these read Or in this should more other there against customer is as So to qualification? here pick

Raj Talluri

every customer I have you in Mark. know, little different is estimate as stage. every different, with think, bit a bit little all Every little bit I And them. is mean of a is a different, relationships I customer

I the think should way it. you read that's

course, of in is goal, be smartphone to Our a player the sizable market.

it's who next. a of question does So first versus just

describe to So probably way best the it. that's

Farhan Ahmad

just would that. earlier add I mentioned to Like it. And Raj I Yes. also, and mentioned

equation is Once and X push it changes. first one, the [indiscernible] you The get to pull. goes from

a next is lot The first have you X cross and get from hurdles. that, easier. once ones, becomes like to the all have it them you the past But you convince to

Raj Talluri

the once they PI one, Yes. at the launched it's pretty tends technology and market Qualcomm is Micron and And see to we much my experience, value. use the both differentiated, the most of then first

So smartphone that's works. the the just market way

Unknown Analyst

with Silicon brought that pushback the voltage of terms there reduction I the are a voltage potential it. any wondering high-power profile. in any they up. to and smartphones power know management your voltage. And conversation electronics modifying so device with slightly high if I'm customers are in customers? the Or profile? a lower this open Got has a like lower Is have

Raj Talluri

a Yes. the work area with in of ecosystem. closely an the lot very had where Yes, components we've and we it's other with them, conversations

make PMICs and work Qualcomm. the example, we For customer and process with and Qualcomm

be realized to silicon the smartphone going people now have So in market. is that think I

to already doing have not to energy happy and year, of the through be adjustments that silicon, get be made anymore. actually that able PMIC the So so pretty we've been last we're is a work which problem should bit from last

Operator

question We Stoss from with have one final Tony Craig-Hallum.

Anthony Stoss

kind markedly ASP? the densities curious I in from that? number? we something stuck on about batteries. move higher I'm what per you think ASP comment your when X,XXX could to of wanted you like to that Or density? $XX battery the up up the in that And would be also, that milliamp would $XX be kind producing Are of follow

Raj Talluri

for the He's take year. I'll talk comment about in I'll Yes. on this is next SP. that. pretty about Ben, let launch Farhan the and passionate yes, But

I power same can now about going from and for going we keep the and demand footprint milliamp think capacity I batteries higher talking in the We think battery. smartphones higher there X,XXX are And because trying more the year, to produce are just in lot see more is actually if we next batteries. actually more is a capacity still up higher applications energy energy, the

Farhan Ahmad

Yes.

you million look $XX So revenues, are and is target the to a at get million graphite batteries, or kind those revenue. analysis. ASP $XXX if I would tiers X.X million in said, performing And when you you what's we we parcel, X to batteries said the of the but million about like $XX in in silicon that so Those would $XX if units $XX.X what silicon market like batteries look our higher the range, based not say that on to space.

And so to bit what little are is we that of expecting. a getting like a premium

and And the batteries -- are kind sudden commodity by range. of so the like way,

So advantage. a because getting batteries is energy we'll already premium density significant and validated have density a energy already higher

[indiscernible]. what facing So not were we is

Now switching higher higher in. It's to material and X,XXX. density of amount a goes energy

the who's point Exactly fair say to to seen. that too to there's that nobody of it's knowledge, my So remains be else pricing to should probably those providing at because think be higher. how It's much early batteries. best

to we definitely the X be there, charging have ability it price. get -- you're what cells But we more today. for than price once higher and will a X.X may So to get Ampower better

Operator

I'd With further to Raj the There closing are this that, for no call time. like Talluri, at remarks. over turn to Dr. questions

Raj Talluri

patiently Great and listening quarter. you to thank all for you. we'll you next Yes. to quarter, us. And Thank talk

Enovix (ENVX) 29 Oct 242024 Q3 Earnings call transcript