Enovix (ENVX) 19 Feb 252024 Q4 Earnings call transcript

Company Profile

Participants

Robert Lahey	executive
Raj Talluri	executive
Kristina Truong	executive
Ajay Marathe	executive
Jonathan Dorsheimer	analyst
Ananda Baruah	analyst
Colin Rusch	analyst
William Peterson	analyst
George Gianarikas	analyst
Derek Soderberg	analyst
Auguste Richard	analyst
Sean Milligan	analyst

Call transcript

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Operator

Thank you for standing by, and welcome to the Enovix Corporation Fourth Quarter 2024 Earnings Conference Call. [Operator Instructions] As a reminder, today's program will be recorded.

And now I'd like to introduce your host for today's program, Robert Lahey, Head of Investor Relations. Please go ahead, sir.

Robert Lahey

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

video we replay our after our will Please we closed expectations the statements Relations call note factors. that shareholder that remind and today. continue, from actual may release of website are quarter or uncertainties. press forward-looking today to fourth It's Investor conference kindly me subject statements our and and differ Before on at website. market A due ir.enovix.com. XXXX this of risks materially this that let available variety the later the events to a are available you These released shareholder be letter on future contain of current call results on all forward-looking letter, page based

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

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

measures, with are Generally the this Principles. will During non-GAAP prepared not Accepted call, we accordance in discuss which also Accounting financial

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

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

Raj Talluri

thanks us and everybody Rob, today. you, joining for Thank to

to and we'll our and recent XXXX, our questions. For turn take closing over comments, We outlook. had a of it of QX. to recent productive milestones a then a today, with some before for I'll results have Kristina financials few very our I'm going recap start and I format your especially

achievements. recent our recap To

fourth the First, $X.X of in near were range. our our the million, revenues end quarter high guidance

million, the total from For XXXX, $X.X $X.X were million up in million up XXXX. revenues -- year $XX.X

our site the testing and objectives of for we our acceptance product completed of line customers. completing our and first by high-volume quarter manufacturing top manufacturing Second, EX-XM to samples shipping

passing. leads Third, OEM lead our with we critical early results the of to confirming all shipped smartphone samples engineering the safety tests our are

expect of a them. of Additionally, that cell we made they dimensions as the we agreement received the to the are dimensions shipping continuation be in cell actually with These XXXX.

for of now track in XXXX, on we're Now pending commercial qualification. customer completion smartphone launches the successful

Korea announced our of agreement packs Fourth, line in we our Malaysia our also with facility. delivered from in packs with in built first first XXXX, we the cells custom battery June

achieved mass arrived. and ensure tools 'XX. that we believe are beyond incremental fourth we first we place and now our will in FabX, for year year, Yields of in have the a well final order targets line In of we from accomplishment in ramp secured The SAT addition, marquee customer. purchase from XXXX -- HVM to our complete custom FabX Malaysia pivotal We out of just as battery a stands eyewear managed the in company. for one a after readiness believe throughout levels quarter the second a smartphone smart in the we in production

our serving our testament audits a as readiness We our using to manufacturing interest customers' strong multiple now products. going on, have customer and in

space. of emerged we're marquee custom constraints where this segments segments, our smartphones, for major we chain remain technology. these are a While prioritizing we're process in eyewear as cells customers developing Recently, of also battery creating supply requirements the for and on strong competitive in or now focused one advantage smart

solutions opportunity growth battery for elections market we Another unique Since revenues November, products. that conventional a from with the last XXXX comply year, portion requirements. the us of as sample country this defense chain observed our with suppliers increase in Earlier suppliers allied drone industry, interest recognized a we and inbound graphite from we defense of one autonomous where is systems. secured supply seeking purchase emerged U.S. significant recently that manufacturers for AI battery a order these an

still from upside While the evolving, these potential developments about are we're these. optimistic

completed And testing also results life and that track very meet productive to and QX performance fast us. We been on it's a XXXX product indicate we're of density, of front, charging. the on and for cycle EX-XM targets energy successfully

delivered both their feedback positive ahead, early evolving energy IoT feedback EX-XM markets, lead alignment looking customer we And density we have requirements. design targets. EX-XM to across ensure and EX-XM, off kicked to engineering meeting smartphone of that phase incorporating with the received and the officially OEMs OEMs our from samples For we is

Now with for that, I'll to Kristina? it turn over the Kristina financials.

Kristina Truong

quarter a in above will million, the shareholder guidance are a I to and above of quarterly our a so roughly $X.X million our loss of of at delivered loss of to All then $X.XX. our came cash from non-GAAP above our and our and Raj. $XX loss $X.XX EPS million, level million, outlook. the in ended you, a speak of of Thank $XXX loss cash Non-GAAP our $XX.X million XXXX with a guidance $X.XX, We guidance. in provide $XX report letter, came of and of relevant of at also revenue equivalents. financials high midpoint We the QX EBITDA

CapEx $XX.X totaled and was operation in in QX cash million, used $XX million.

funding and us giving sheet runway additional balance -- Our is for for optionality lines. HVM strong,

guidance. our for Now

to forecast million, non-GAAP to first loss a million of $XX $X.X we adjusted EBITDA loss of and million quarter million to XXXX, of $XX of $X.X $X.XX an EPS revenue For the $X.XX.

back Now close. I'll turn Raj to Raj? for

Raj Talluri

Kristina. thanks, Well,

agility us. line the XXXX. see, and from Malaysia can high-volume by with was high-volume significant for cells already you line made production manufacturing big XXXX new for slated a As battery launching strides year We shipping in custom

markets, demand drive We also to OEMs strong while across key and IoT smartphone continue excellence. we and operational focused on building innovation including customer

we that, can the questions. Operator? With go to

Operator

recorded. Please note call that this is being

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

is, The first implemented current implications for the future operations new what potential policies and the Enovix' Regarding and administration, and tariffs business by are question prospects?

Raj Talluri

Yes. Thank you the for question.

As I mentioned increased batteries remarks, U.S. our actually are industrial and the other customers in we getting interest in the last prepared for November from since defense

As which Korea a very we to favorable also -- in batteries Malaysia, factories in shipping is are reminder, actually U.S. and into the actually due our

-- effect much we see it's the this tariffs a So on at don't point. been

Operator

lines? lines? the When capacity? for ordering install will Can the adding how you you current current long guidance it What out is And the second any question is, will begin to And lay take additional equipment?

Raj Talluri

shot I'll Yes. I'll have to question at Ajay more a and color add it. take the

we manufacturing put Firstly, our we X in completed Malaysia, we on. are super The have one the SAT the SAT that and in high-volume line. that's the to excited factory and to add of we one up ability line, we have completed we there lines

talk In of additional terms current comment, how I'll Ajay let lines. and about capacity, add to I'll then

Ajay Marathe

a is question. a in roughly million just which GenX fab is bought is Line year. Good Malaysia in SAT The and off X, which equivalent as Raj. running million batteries was of X.X reminder, Line our X, X,XXX to Thanks, current at installed UPH, XX

Zone testing. and X we this what fed call X is in which is which is dicing Zone farms Now by

Now see do as we're from Zone to indications adding the the how X volume to to need capacity as support. we much market we

are long are basically at time lead on manufacturing that's where as way adding the on such as lines the the is items line, we used So which the control looking line. And various -- different capacity the lies. items systems in

and inventory as them our We are suppliers. ordering keeping at

time as second, us to third, to when shrink the line. the -- So line fourth add we this us makes ability gives can

So that's are we capacity. this looking how at

Raj Talluri

Nothing Thank you, add. else Ajay. to

Operator

first [Operator question Blair. go with to Jed come will will Dorsheimer queue. We William the from now Our Instructions]

Jonathan Dorsheimer

Congrats quarter. this the I'm I growth of first understanding purchase of order. one, on curious, the to a profile just customer. the trying drone better get just guess,

think $X just memory revenue. you billion that if hit I mentioned doing they serves, that. think $X -- they're in And it's billion I --

So I comment is way? follow-up, And in is I I on can expected? have inflection. in coming you're kind the customer sure than just of is that want a Am that about too. defense to better that, maybe thinking And about you that How right S-curve make then the of on customer thinking that?

Raj Talluri

It's how it. of see our Yes. and It's discharge. We very different U.S. hard need we'll to are thing we And can't but qualifications one those an terms be as hopefully, in they put early qualification. in Korea customer, good where are from a and customers seeing for in through, inquiries now exact we business kind comment on applications of the the discharge on But of are really interest you tell we is the more add we which to high stage they the growing. But batteries getting because are the color rate rate multiple batteries for on facility fast going. making I are is go you of batteries these able for number that the lot high market can

Jonathan Dorsheimer

just my rank smartphone, commercialization that of phone of was in as wondering the pipeline terms base. remind the of order And starting customer you cell and could you're Great. to just if the commercial us pivoting to could you just backlog just build if follow-up, a then stage, I customers now that. the

Raj Talluri

we and customers I with one that Yes. talked building have top progressing. of Clearly customers we an we have products both X interest from and we what showing for X can that they're us. -- just another mentioned in X build. our is placed We had mean X and up about samples sampled agreements the order

the we is time important got received the of will them the the next phone the year. last milestone, battery got that payment in about the we for of be now after passing which One a actually and milestones, dimensions getting exact -- this we I a talked milestones very

huge a is it step is. that exactly now what we So because understand

with we X,XXX viewers again, size, and made space milliamp this Just of a battery the a but still here hours, battery, what so sizable got of now dimensions phone. standard that north sampled remind the to the battery in we of standard the is we constrained but is

customers to customer, technology clearly could one is, to phone making go other stage batteries and these that from models. in we density this expect there. get the battery multiple within the models multiple segment into value again, So the expect And Typically, a next particular our market. adds we get following cells our their go into we energy for qualified custom are that with in order. And that it this of

progress and steady So by making. we're gradual It's super the excited through. thought and

Operator

with from Baruah question will Loop come Ananda next Capital. Our

Ananda Baruah

each EX-XM. Two Ajay remind I like, like about think get you us awesome. you there. EX-XM can and sort model when you you number Raj those Raj, one, like anything Can say get that things, each each would right and of guess then and And the the volume of of into mentioned capabilities for volume? and of those be the to marketplace company do bring the models to sticking can

Raj Talluri

think to we and got different customers way made for requirements The is the a we on, of so and EX-XM and which choice is, Yes. cathodes them. we and where about our anodes first electrolytes sample this have product

versus We so of getting life this part. energy before, this fast of them this to density want trade-off versus from charge kind said We want you we and of We to I've on temperature you part. are -- like trade-off on. now versus feedback cycle performance -- increase

are that meet We customer the now requirements. optimizing to

and make in which a set terms more can we density, materials newer then more the just forward architecture increased and started. EX-XM, energy and that's of amount of the so our in advances we materials that of that energy terms get we make also a in give And density of materials the reducing EX-XM. Meanwhile, choosing both step we that's inactive

this of to we can designed terms able to that. volumes, at comment stage how models, qualification customers models part I different to stage, comment towards we because difficult And production but a year stage which we on there's one depend it's of in this think that. the quickly ramp and at of behind into, visibility In of the more into first, get go the because be they're later have that, lot upon many all we'll more it'll volumes how

be takes precisely. just to it able So answer question more to that time

Ananda Baruah

of that context I around And awesome. just we the the mentioned that's in then is Okay, sort X.X speaking the things X per as it you the that, there sort Line XX. the fully said sure can description to follow-up, just lines, can lines expansion X, a it in you'll of to X.X progress. reasonable amount make the just of XX sort XX of to filled you as to of you get you're ramp is you're then -- anything do understand Ajay, implied of time? of guess your And of X.X -- sort to in line. start sort Is lines Or

that of that into probably of efficiency is as as I tweak But think that. around sort even with up context just X from wrapped you'll inside Just is also well? that the line progress, gains. Line things there

Ajay Marathe

universal Thanks, as Yes, Ananda. X, just is call Absolutely. what line. the the Line reminder, a we

is the market. capable the of running also feeding we is are smaller cells it a into line efficiently So which which equally AR/VR

milliamp on, X,XXX custom remarks hours. the I as which well cell his we as more working are is which think Raj in than now cell, alluded large to prepared that

capacity as can would all also it order X, customer X speed. X, when Line line make backward same. do, the the as of the Line the also we And all kind The also depends So it do improvements to whatever we compatible is that as qualification Raj actually per remains said. it. X. we Line And of learnings well to the focus X, the to -- cycles, on from backward X handle CapEx and for the be optimizing spend line will going

and universally, the that So ship talked and X can from we any about. of Raj lines make ship

Raj Talluri

we what when is as know, small built universal line, very because Yes. more to gives line, first built bigger that don't go other just the line. batteries Ajay a line, I one when from build a exactly That's we expensive sure flexibility mentioned, can to us remind where the batteries. not And much called thing, would the maybe but we're demand you, which we be

into -- lines the cells custom like and the visibility our in we of kind can of which for optimize not more of cells, flexibility that evolution to line, the the it, of and we And how do natural product speed, how a increase kind to demand is understand As which line, optimize get we have that's which better, much more like going you more this it optimize go. size and as both these kind right. you so so of the cost of manufacturing throughput cost is

Operator

Colin Oppenheimer. Rusch next will question from Our come with

Colin Rusch

you potential acceleration how a hour on like seeing a to road the translate Getting how bit a little milliamp appreciation are seems those X,XXX talk cell, it some you're of bit of about Can for the into specs maps. pricing company. an quickly And changing? that

Raj Talluri

so seeing I'm I a lot to coming I because maybe will I a I demand Yes, running app we much probably And energy. that Colin. having -- -- AI that much are higher capacity drive for phone lot it's a higher higher mean there's XXXX mean apps many is we think, consume really when applications consume now so that's expected. edge that on mentioned, question, What and that, put I true applications consume a the AI gen are and the battery mentioned is pleased think say higher the now customers happening that coming to today. of than and those of lot to the good batteries, every battery

premium time is over good that a kind that and means because energy limited I even we can't ASP today factor bigger, what get have phone that -- drives X,XXX-plus saw capacity the we energy deliver density. you a of are to on. us form larger in and a for get on which density because that getting see for tailwind a is you we working that clearly when

is both -- terms as a us of we ASP and tailwind this trends these premium good continue. for expansion in margin So

Colin Rusch

intense competitors of as qualification and you process with a And that That's invested go these then rebalancing super along different cell my competitive landscape. move this with been helpful. lot and Obviously, really you're structures. I seeing quickly is electrolytes of through the how about just how different is guess follow-up in for makers. capital here smartphone materials there's environment I'm you curious all and guys

Raj Talluri

Yes.

be amount graphite batteries Our competition continues doped silicon. of kind to which of the some with have incumbent graphite

saw like becomes in if cell, a the we seeing we think you big kind than X,XXX are put I too X% much. more of swelling mentioned milliamp we that, XX%. range, But that hours to

So you can't really keep doing that.

this able constraint to customers Our able work by because And architecture, our and their are to to -- active validated I silicon also XXX% silicon. material. our as by and is us of only the silicon know, supply innovative do in we excited that XXX% XXX% use we're material. were use far active who with validated ones people as they're we They the this put

So with and architectural our it's a this soon. I competitive advantage product hope we to approach, into have get

Operator

Bill Our from Peterson come with next will JPMorgan. question

William Peterson

and Recognizing I come emerging back the on don't know, I speak And of, of you site your or it But these be some focus more megawatts guess to the on of opportunity. can maybe how smartphones terms much the IoT applications. Korean size this batteries? wanted whether I format in or the Can defense revenue. support to

Just guess to market. can for could how trying fast it fast to grow a you this capacity? expand get be you of And how your were I interest, if sense into

Raj Talluri

Yes.

quals have into factory capacity of have Korean into these good mean opportunity is the site. support demand facility there. I for in like to we we capacity. things expand it because really visibility be get and these in -- build Nonsan these what grow It's in get production. we very nearby a our can or qualified, more that now we there. nice and We It's news we getting have space into in qualified and these and start getting things to start next as as and a we can so year some in will we could that our takes to this available And year opportunities, now, expand

excited by that. we're So

William Peterson

added already you're And been done. Yes. customers. the you that advancing I have X in release would like a sense the had your EV, about development agreements press with that

joint XXXX begin are going long should for I And work of anything we So happens? that looking has these happened remain to Or there thus guess to earnest know official before resolved, in dated, I in point, work what maybe be any but be to the the I beyond? any guess key this areas year? I far? are guess, is milestones really development and

Raj Talluri

No, a ongoing. we absolutely. -- remember, here. doing some to Originally, I from EV and thinking we factory. work now moved we is there them was have our mean be we and are Malaysia they of work able these handled we differently. factory some down because mean that materials in space but I have Because, get you we makers to are were to able to shut the of the as Ajay materials, all little here, create Malaysia some it different these have

So have cells into EV working doing we're in and space. on now EV we're where work the prove those an dice we the able the to are making material and even that our advantage of to area we architecture there out

So for stay that. tuned

some that. this year updates should we think I have on

Operator

George Gianarikas Our question with come will next from Canaccord.

George Gianarikas

the a had smart just about glasses question business. I

think, of in of customer company that mixed and where was release press XXXX couple that think a sort a similar AR/VR, in headset you December I you midyear. mentioned had mentioned press one releases, in commercial one potential with another you had I expect shipments device. an to a California another your that commence And you

purchase confirm those orders we companies? this for can commercial So one two that of

Raj Talluri

for from are these companies. actually the Yes, both --

it to, and our I I the the like on you the guys we to not deliver facility, that in you able see And We cell, actually This the were since show -- customer. battery management want pack with have into we this in have Korea a super goes in on that. And fact, here legs purchase able our but so just able to investor this to that that exciting, to into letter are made are cell make do package and cell to are we only we we video. orders. if is the

from from a purchase continue I the factory So said, we're early got it's so our tremendous good. and And out look -- progress get to time new some going to the like to the we results really make samples order actually that.

well has And that market bullish because on kind market user AI. lot the problem potential years, of of out this of particularly interface solved gen been with has a as in I'm the a really

speak the the this well. before. always devices. I And can is pretty month You also, It's these think, see last month, I problem, conference, and a at made clunky brightness to miniaturization. waveguide resolved with this I in could or That was interact glasses how of you pair of to earlier optics projectors AR the the the and think, advances

been ago, this was looks like since at I I space I've know, it but progress here. decade maybe Qualcomm, don't in a of lot a

an to So optimistic also it's to are get to space start. a these put technology time that we go the cells of glasses our That's we of is And the in advantage are some about in applications we because a good tens battery seeing the much all-day multiple there It'll are batteries a interest make demand millions, lot from performance but and place to pretty huge the on take space. tremendous to reason not that. this use. for

George Gianarikas

some of the for being I'm here What year production you've devices just mentioned. scale from And earnest and can some bottlenecks manufacturing, begin with the at for confident in you completed we that since What time assuming, acceptance expect the that production? smartphones you've also lines. last in been, this you are spoke, you -- quarter the you tinkering to on -- the test your obviously, fourth this site to point year

to solved these then that to curious make really and as you between gain I'm can has so to now be And the the in millions. what -- confidence batteries

Raj Talluri

and it Ajay at I'll shot quick a take let I'll speak.

the see Ajay made. will cells is few to next out. customer, which We going shipping now and big the coming them very be pleased factory the ISO with that audit, the We're are when done team his it's a step has through in We progress months.

at the is more. I volume think scale Ajay up. I yields can guess these and some and work the producing getting and maybe really comment UPH now

Ajay Marathe

Raj. Absolutely,

the There no are line is fast bottleneck, The how really you yes, qualified. material on we different obviously, proof is are and can sets. doing points, with technological we line. So if yields ramp will, this this

As Raj higher, pointed is all EX-XM more time, the the depending out, and performance, these And the in materials at one the what are and therefore, the and EX-XM yields needing which of other. with same terms getting customers on getting important continuously for them ramp versus learning working mode. into

second And which on the the happen our expecting way qualifications. fruition to are ramp yes, in for of come some to terms customer exactly when to of in we things well we is these are half,

Raj Talluri

small One certain thing I'll a big demand like so see this of slightly cell add as now, factor, other is, form this. we for shaped these cells, cell are different

cycle tooling down work is the done. on. the the going of some time the same what's different doing So team to be cells we can that That's machine, we'll continue to Ajay's work but to to on be something make so how is get quickly

Operator

Soderberg Cantor. will with question next come Our from Derek

Derek Soderberg

given to commence said selling this this you the think what's AR year. then you that one a commercially average from say the with second going And purchase companies? you had X midway just can density factor? form you're planned first AR do you you price benefit did one, through guys can I the Raj, shipments for that Is orders know devices, sample you that get the orders? deliver for device, these was for

Raj Talluri

again, product because they're Yes, because making from shipping. the And of the of dimensions this premiums dimensions slightly investor The advantages shape. the battery very we you and both getting -- on actually process the are probably commercially customers. the we ASP life of exact do the -- both the put in order purchase material in have products. what's see our in in we nice those different I are how the is important how deck of mean we of some much versus market to exact

that translates that, exactly a business. see numbers, pleased the can nice we but with you on premium. that can't comment quite ASP I So are to

the we and that to selling to is I And when mentioned a other is of when company there's something this important is Routejade is packs. why also the out -- make you acquired going acquired reason because full company. thing I this that nicely, be playing premium to we pack, That our full ability also make think an ASP cell. that mentioned is the I at of just which time instead that us

the of coating capability. addition the in reasons, to One

Derek Soderberg

first long would fast could you high-volume order could to to in pretty soon of related X. of How just sort be you questions. then about #X. one And demand say, kind that second AR install devices of a and second When Can turn on? HVM the procure Line take want in It how guys add, talk feels you the here. Line it line high-volume like for to months some and these of coming it

Raj Talluri

will me answer year, tell we let that, demand before So right. come the you in next this,

the So time it time qualification it but takes the line them, cells line we make some will and takes. to give again,

to So of understand. it's important kind

accordingly talking capacity 'XX we are about We that. and will is and Ajay demand plan now doing

Ajay Marathe

Yes.

components to Just amount time that, items make of long as that we to add the mentioned approach line the the I all not all up the same the time. earlier, have because are taking lead of right, taking lead

some are suppliers. working we there which our with longer time lead are items So

and risk is Line good #X taking at Line them but handling stockpiling they're up their on on their can dime, way place then started which us, have really #X. of set this of a We the how you quickly

time that look ways shrinking of we to for so And are trying always line.

took. The first one took it whatever time

Second to improve ramp that quickly be is also one ability our into over significantly going the production will time. lesser to and

Operator

will question Richard come next Gus Markets. Northland Our Capital from with

Auguste Richard

the tailored military And battery? sets out curious, of to military it's for a of Or sort It production in applications what it I'm more on of lithium quick high like rail. apart applications? sounds ion coming real Just the standard Qualcomm. just is it

Raj Talluri

Yes.

standard is lithium ion So the high battery. it's rate we that discharge battery a made Routejade acquisition except

example, like drones think that something So for on. so moving and things, powers about

to do mechanical And this when they much of us. higher the do different they So that's can also consumer can things that need -- and have moving, a rate. object can cells the you part for company electronics. do one a And of into size shape that's some you go can discharge at of

different X rate, products big there. do So that can military we ones they The have cells. are X, variations of high

Auguste Richard

I the the You about believe, commit on just year up you think that utilization to should just that the then customers. X bring utilization in with can one capacity said And up? that you is That's, Line until you X,XXX. comes talk can't instantaneous Can first UPH Line we How volume X, an about and your throughput. line?

Ajay Marathe

up good it play. by That'll are through how qualification the on first to a the cycles can depend would look -- how in those lead terms how components so of quickly items several good start manufacturing line question. time mean filling now make company up running And -- customers in you the with followed longer other are line. Yes, much the that the at we you ordering I

from our So directly a feedback coming customers' qualifications it's all actually. gradual

I So would leave that's where it.

Operator

come from will Janney. Our next with Sean question Milligan

Sean Milligan

expect are ordering like to it terms of you for? underlying this year how you do in sort And be? stands CapEx talk time for of today? lead CapEx many long you there What Can to outlook items as assumptions lines then

Raj Talluri

Yes.

give but want on to really bit. little Kristina full guidance comment the you maybe -- we if the have a that for don't We year,

Kristina Truong

for relationship have time a on items ordered $XX said, of to lot currently $XX between But and million budgeted. Raj dime million CapEx, their as by long are vendors our So equipment lead due XXXX we and about to the whatnot.

Sean Milligan

And those that's UPH fit X,XXX is that Okay. Ajay, on next the slide the economics the of the like Line expectation of lines? the the deck, X, line, next then, do slide in the back sort on deck,

Raj Talluri

that's UPH equivalent in The always cell size. a correct. measured Yes, is of

have are Diablo obviously that yes, talked the really to cell ASP larger, is But So that. is as good attached for X,XXX which cell the are which now and Raj for goal about. significantly getting we size we everything bring value we a sizes the alluded, which and

based So it vary cell line. through size which it'll the on goes

Sean Milligan

with million units qualifying your I that Okay. year. about average of X.X samples the cell still around in Raj, there's is OEMs, top phone phone But customers. the talks And some model cell slide those then, per size a early the know presentation

the X that are with, in you'd to curious, visibility size be that's expected you average that if at in above mentioned you're just And potential that have model programs kind into below like of stages in do slide. those advanced curious the Just like models be that in?

Raj Talluri

Yes.

ship about take we customers so one the got one if I that more in you each you, model, to on. certain certain configuration so will, has example, little into certain like processor, maybe model, would it of have certain into may to go. certain, we Gulf. and into that, market and that say, dimension maybe cell things, features after there them, specific But that and variants example, So within choose possibly into going India, visibility model for that display, the a other said, some a where ship memory some thing bit change change features model, actually the is cell that the that initially, should I talk when ship a camera, and for Europe features you Android other phone we're for few how a and remember But software are

typical. it so this closer yet time that's each will And time. clarity that we product have which many, exactly to in. it's how come production don't And get -- will quite will that closer years. That's works and production come I've be we on clarity so done on to we in as many So typical --

Sean Milligan

you trying then year, cell the understand in works ship the can that qualification cycle seasonality. also in you sales that or like I'm year because process maybe phones? like get sort cadence sampling in same in XXXX one, the for would everyone start to how just programs you're kind cells to and for thought earlier be And remind is in that's in of for volumes So in last XXXX, more XXXX? later of terms one Okay. commercial early you just of the

Raj Talluri

so Yes, good question.

on for work We customers bit, about cycle that on. of XXXX. typically the charge talked And so this in and this talk terms we in what I terms late get how what's in model more kind So the question Like, example, to requirements fast of of in them one a density, particular mean of would for time -- XXXX, and just phone launch I'll capability this product requirements to timing works. them with is. since about launch from get get quite just I the in we life, energy terms size,

it a internally. and what cell on give dimensions that look they is volume make components from we time, also much in us it of we've now. what test the cell. need them they extrapolate good, they to exact to And And now they're working it At with certain the then that, looks us we these and give will everything that make then production other us other the same components multiple cell phone, processor pick, And when right. size fix purchase just they made like They they And using, all what performance which use. of what then which they they performance we standard them the them the a order then all and what should got then how cell, should and that along memory have, and they're test everything frozen. that if should passes give are they cell, give the the display they requirements, camera give what we

particular go one 'XX now into too. and in models could cell that multiple Now 'XX in

thinking some then for that like through there changes on I launch different and at what's they can 'XX, working going mentioned, in different only be the when stops not if those example. in are of could models because it's start world us to them. it's there be cell, And continue that could start 'XX, we and phone give So they'll about 'XX parts that launched like to

a that. be It's on volume work continuum, the There'll So this the a overlap based this continuum. It make on make like cell, based if be you done. not like done. between they're how going some is We the works. That's it phone they're launching. goes 'XX, will. we launching, another this to cell, 'XX, launches doesn't it regions usually typically It's goes

Operator

I'd Dr. are further to no With like turn Raj at that, this Talluri it There over for to [Operator questions time. Instructions] closing remarks.

Raj Talluri

us. Yes. and back quarter. next Thank you Thank much for following interest very We'll you to you. get your

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