Earnings call transcript Q1 2023

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Operator

Good afternoon. Welcome to Amprius Technologies’ First Quarter 2023 Earnings Conference call.

Joining us for today’s presentation are the Company’s CEO, Dr. Kang Sun, and CFO, Sandra Wallach. At this time, all participants are in listen-only mode.

will call we questions. remarks, management’s open for the Following

and statements, presentation not product Please expand of it adoption, business, different manufacturing this cause scale achieve its forward-looking unknown forward-looking from implied to to commercialization, and including, build other Amprius customer manufacturing important future note and that facility, a regarding structure. contains sustainable uncertainties, achievements but performance, results, large-scale ability statements These limited new cost its capacity, timing future and in or that any statements Amprius’ may or risks, be or performance, involve materially statements. known and expressed results, factors achievements to such

Securities complete For quarterly but uncertainties, these including, on refer discussion and not discussion limited and XXXX. to the Form Amprius on risks March it’s Exchange of in a XX, risk factors the Commission to more filed please XX-Q of report with Amprius’ filings

call remind on Finally, webcast the I replay ir.amprius.com. to Relations recording like Company’s for and would this Investor everyone website is be available a at being will made conference that

to the letter on which Investor posted found a also the accompanies these In addition results, Company that can website. Relations the be webcast, has shareholder

Kang his over call Amprius will turn now I the comments. proceed. Technologies’ Sun, CEO, to please Dr. for Sir,

Kang Sun

financial the joining that, our remarks before Welcome, the discuss closing first in Amprius questions. this call I everyone, CFO, on afternoon. Wallach, will thank for and you will accomplishments at us the our some quarter, and for for After progress opening period. share I report Sandra results our After

manufacturer. density may ultra-high you know, a of energy As lithium-ion and battery developer is some Amprius

batteries liter silicon specific Amprius’ per on energy Our X,XXX Today, delivers density. high and per kilo capacity are watt-hour Amprius XXX volumetric high performance anode watt-hour with the batteries technologies. energy density proprietary based commercial

rates minutes. fast Our to enables batteries approximately of charging in six power up charging to capability of have extreme also state X% XXC and XX%

environments range operate versatility that perform operating temperature one there the to the benchmark with Celsius these test degrees commercial the can extremely that the States military an are levels. to our penetration batteries tough no nail belief Is to United else pass wide XX in durability as Amprius for XX in viewed to market well of at Celsius. the minus is up as

over has anode battery in and commercial has power technologies. production in the high patents high density, Amprius batteries. since company of so XXXX, XX years extensive many silicon know-how density been has manufacturing lithium-ion manufacturing experience energy of Amprius

goal segments mainstream long-term near-term applications manufacturing battery mobility, a across Our and including EV with is goal the scale to industries. of with solution becoming all our of electrical aviation

capacity momentum production we we our from last our ground in and have running with additional new successes, hit developments so that for technological believe breakthroughs, Building far commercial continued year, the XXXX, expansion.

accomplishing steps quarter first towards achievements Our important XXXX. for our goal were

a I per In density. is the we density announced liter energy Amprius would and new specific watt-hour now XXX kilo per which to highlight like platform, verified March, for a independently X,XXX energy few volumetric battery watt-hour events.

to serve designed needs HAPS, customer subsidiary such AALTO pseudo per Our projects, the high-altitude as purposely XXX Airbus certain battery kilo developing watt-hour satellites. of was platform strategical the

The along robust per advanced on not only move lithium-ion continue the product company customers able for XXX platform select anode that to our the battery the prototypes customer market. roadmap Amprius' We applications, these it liter ship technologies. kilo end batteries per of the to before the will watt-hour XXXX. to expect to X,XXX to watt-hour enhances most deliver roadmap be Amprius silicon available also demonstrates and

passing third-party with of of Penetration Performance verified watt-hour unprecedented kilo that our XXXX recent had independent This our per Test XXX Specification most cell. achievements December follows Military announcement the in an Nail

shorter batteries circuit small variable used by cell capability increase After resilient prevents the penetration, by still electrolyte cell the after polymer and increase is in minimal innovative voltage. Amprius’ as and nail critical nail cell temperature soldiers. functioning only for a a indicated more in power, penetrating the creating penetration from providing

this Amprius were high race provide The process, team tough Challenge and X,XXX conditions. for Also for in earlier density performance after Australia. World the at a car we by must of vigorous month selected their solar race exceptional announced kilometer selection batteries in Michigan batteries upcoming University energy the Solar

edge an We their team characteristics forward event. Our to look this working the leading the team should are in coming performance provide undeniable for and with with the months.

Moving to efforts. business our development

first especially demand our the in and for EV aviation the We products markets. quarter, continue significant in see the to

and aviation, to industry. develop for the us ideal As density safety the the allowing energy high batteries property cruising distance in our solutions, weight lightweight roads are provide critical

This first highlighted shipped the across was customer, the well existing new We XX by including in the quarter, as our successes new customers opportunities. accounts. Among as quarter aerospace both a to customer leading a the codifying steps opportunities, batteries. development engagement testing quarter, new serious with technical of of this towards and new evaluation off ongoing we next OEM, kicked Amprius several business

relationship element XXX existing to missile. XX Block supplier AeroVironment spend of be in the with our a Switchblade our within we Also, clients, AeroVironment key power

and to expect continue Amprius. Teledyne the strong two to to We AeroVironment Flir, regularly well repeat our as shipments partners commercial scheduled as customers for

in serve interest manufacturing contracts segment, beyond. to and a other partners the we aviation megawatts existing of significant from pack have for addition, sizable, through In hundreds including larger XXXX expanded battery received

we Our to out lead efforts that our grow, quarters. pipeline capacity expanded and coming manufacturing interested to to orders of will in our the new build and additional continues believe partners

to focus ultimately remains Energy, capacity moves scale. After make a receive structure two goals years, grants cost-sharing strategic our United cost at As Department we selected expanding sustainable achieve to from towards first that demand with a were we including think about strides transformational XXXX, important the several and several our goals in continued of our on meet to primary the quarter. for next States our we

for Fremont, now the centrotherm. half second increase to in Amprius existing facility our we us to First, of accommodate allows approximately capacity battery our high-volume expect our aviation Lab prototyping and with two manufacturing our capacity look facility, anode exiting who projects affect and to production XXXX. silicon production from anode processes hour at our large-scale or and California customers' We strategic we process qualification serving current needs customers new recently production We which better both are first expanded XXx supporting forward machine backlog. to our megawatt in our currently

factory Colorado of The that in generation the in to milestone of for as production battery announced Amprius. we provide selective facility, a in next for approximately phase up We location of production the also square initial important the total of site foot manufacturing site capacity Brighton, XXX,XXX mass technology our a our expansion for for first had gigawatt, March our buildout gigawatt-scale selection marks X United The capability Colorado XX will gigawatt. States. potential up a large-scale to an with for the a potential

a with operational closer over Northwestern in being battery in is already the reduce which reminder, with Also, build-out As costs distributors needed the and Amprius will market will which some the operational Fab our expect gigawatt States, of factory. long materials costs to to and scale of goal United time time power Brighton lower we is XXXX. electrical lithium-ion equipped layout existing factory, for structural the

Fab As for months we in our to XX XX part plan scale, April. to signed of Amprius our lease

of our facility aiming the facility to begin will new transform production towards we will this near-term, summer. develop capabilities. end are long-term In continue and Overall, the We to achieve retrofitting the Fab Amprius’ Amprius derisk of the Brighton, in from our to the years. while products manufacturing in handoff cutting-edge processes lab in mass refine coming production we our Fremont, to further Colorado

our of turn have look announced I as Labeling the an Auditing the we Sandra. Bayless have Director from that We Board our recently Committee extensive at our Board update our Amprius and call support forward to I team final Board perspectives and forward. is Chair. experience, unique on over and operation before our extended her Directors. her and here appointed entire one Independent to moving we our management exceptional ongoing the With Board Kathleen

we to excited growth team our her strategy. have are to execute We on our as work

our the complete, With over quarter. call CFO, financial the to Sandra for the Wallach, will turn results Sandra? review to overview I our now

Sandra Wallach

to updates. some Thank spend you, a key I few would now like Kang. minutes covering

be our in detailed As can letter. found reminder a our shareholder financials

and quarter the in X.X with X.X in government in decrease X.X million services revenue, development due out a partially revenue. product QX X.X to for year-over-year was million in by first million XXXX. a revenue, and million X.X partially of revenue, offset grant million of compared to increase an decrease This closed We of quarter both the decrease

year. last pending X.X of the to timing product with quarter same shipments, due inventory delivery the in million both in million year more later note, increased of the performance obligations and this X.X final we revenue ended than Of in quarter deferred customer

revenue the quarters, is orders previous revenue at customer timing. arriving services and year in revenue development noted times uneven we’ve As product based by recognition driven throughout is on purchase our intermittent

However, as we a our XX Kang capacity to believe gain and and expands more shipped new business we continue we that development revenue. Once transition expect to customers, product customers customers commercial this efforts traction. quarter, more earlier, our including mentioned of nearly to to orders, four even see ramp

non-recurring the startup economic in negotiation X.X due manufacturing X.X design million both primarily of margin our our included facility. Our to startup pre-construction These broker charges negative incentives GAAP was charges quarter, charge first for and for gross million XXX% a firm costs. large-scale

arise. to will that we the our out we Still, expansion that margin continues, gross in goals to our build years. are capacity likely forecast as charges begin more As the normalize GAAP we reach expect one-time coming

Moving management. our now operating to expense

expenses cost million, investment staffing. additional operating company increased quarter increased in GAAP and due for X.X to Our to the public first largely R&D

loss per GAAP quarter the Our a $X.XX share. first or X.X net net for million was loss of

Our were March million. shares XXXX XX at XX, outstanding

time XXXX, employees, for our location, X.X XX based of there was share our were As California the based XX, and compensation first Fremont, quarter. full million in March primarily

were with exited Now no quarter activity for drivers of turning operating quarter balance cash debt. in The used and in sheet. We the activities. first the our the X.X key million million to cash XX.X

used rate As transaction our cost to in XXXX we expenses. around cash activities projected related X in run be and operating million addition month to is previously discussed, audit for per

we using Considering and our of forward. drivers activities Fremont a believe facility our projects, cash of of in X.X X.X X.X usage business These and expansion million facility. to financing of Other Lab our we quarter. been the investment related million use achievements ongoing Amprius equity have committed capital million drive inflow in net into for efficiently include resulted total of to the cash Amprius in

is to we Moving to be expect capacity outlook, manufacturing still to until capacity our when megawatt our projected come limited XXXX we X new by online. exit

complete increased see latter revenue Regarding should ongoing programs recognition expect several revenue, of obligations to more the year. with part within that towards we XXXX, we that we weighted means the services development performance have heavily which

will continue capital public our plan we experienced of as and costs G&A accounting strategically operating company to Also, when our expenses. XXXX manufacturing. at the for Lab Amprius majority our We our additional up critical operating on expenses continue higher be that to lean scaling anticipate allocate the units add Amprius mass rate to exiting we we Fab other and to

end, gigawatt hour Fab scale we as To at the Lab forward this fully capital build expenditures and to Amprius we and continue megawatt Amprius capacity expect our and out design facility. higher X going construct

expect Our projections rezoning additional several of more share. approval so factors to information specific including we Colorado have of we spending as for dependent to is pattern the the control, on our outside site, timing provide

the cell noted credits capital expect As cost strong Inflation up from previously the we level. tax fund have continue Department requirements scale we of Reduction U.S. our we access for Energy, from we will that our Act to the support as at work and U.S. production excess the in sharing anode grants to of

received selection believe $XX We accelerate scale built which In further gigawatt to through have million tailwinds economics our that our packages our meet facility, Colorado is over state the of addition, incentive in will significant these local we scale to enhance result our related market. and we in our as partnerships process. massive

sources, non-dilutive sheet loans, through enough vehicles such are Overall plan. to committed we both as warrants facility, and generate execute additional and multiple to funding have equity, strength as strategic will with balance of such equity the believe grants, incentives, on we our cash the and and

we shares new Amprius, owned be stock Committee, and to options assume canceled outstanding will we Inc, last of Inc. One among merger dismounted stockholders things, merger negotiated the issue at the Independent will exchange into with of and the Inc. ratio, and Amprius, we based common our XX% agreement will Inc. on and Amprius, Based other of the currently Under of a stock Amprius common on warrants agreement, all the shares Board item. recommendation by a special our stockholder. entered

of The other Amprius, of The with of to of to is things, any newly subject by shares. or conditioned shares Amprius affiliated among be merger Inc, are Amprius, majority Inc.’s lockup officers. the current approval issued or that Technologies on, same applies not will stockholders our the directors that the held a either

occur We expect year. the merger the in of approve special the this third will meeting to quarter

information, please the more X-K For filed we today. reference earlier Form

financial call to that, I back the Kang. and With will pass conclude the discussion

Kang Sun

few Thanks, Sandra. I’d reemphasize before to closing. points a like

are generation First, batteries we today. delivering lithium-ion available next commercially

Our market-leading in ability performance applications in position world are of problems. space technology and world reflective to real aviation unmatched solve the the batteries’ and real our our

watt-hour enhance XXX As increase density our shown energy recent will performance new standards. our set to kilo, from XXX product in and by specific to continue battery per we industry

since initiating XXXX. commercial been have Second, we products

are the chain to U.S. serve instead, today based So our resilience. in commercializing, significant we a on the demand out building U.S. to supply is focus scale not support

will with megawatt and production Amprius in at XXXX, out our line process Fremont. the two manufacturing Lab the our pull we large-scale further Exiting hour parameters

We States the are megawatt moving limited swiftly program prepare United Energy. In also the to hour samples the of our the customers are Brighton, to potential build-out through provide Department first commercial gigawatt of the process. validation scale in facility meantime, Fab, we demonstration our Colorado, moving XXX technical the but Amprius with to capacity using necessary to

our forward year. begin year, to transition silicon the to by Lab our the prototypes at our mass milestones In megawatt the to develop battery Third, per we for of rest Fab, the the deliver construction to expect production of are looking exciting optimal several half kilo select over two line of process finalize customers, XXX of and second the anode, Amprius operationalize we watt-hour production end Amprius of XXXX.

strategy remains we and Amprius the unchanged. rest focus at year, look the our to As of the

taking support We stronger our position a a other have faster that extend and performance We both to portfolio batteries growth and a to tremendous the industries, market opportunity in ahead. us aviation time. charging with

to provider strategical are and sector. are We capacity the in the advancement we to partnerships. technological early now our public capital the leading build have with mobility the a and and building commercial become Both continuing sector, the lead private sustainable

Finally, over we Amprius Technologies. you what we the the support execute the last deliver in have decade. Thank have believe team our your place and mission for to promise we continued of right and planned

the Q&A. With that, I operator the will turn it back for to

Operator

Colin. for you. [Operator questions. And comes floor Instructions] The Rusch first from Thank now question open Colin our is from Oppenheimer. Go ahead,

Colin Rusch

Thanks just this so I’ll want Sandra, for the I sure you change agreement. capital guys, And make much, structure fundamental the – the no there’s the in merger start, of organization. that with just update. to

that as they’ll folks to be to individual this – to the the to holders Is of same will have going just And able You’re the merger? previously. distribute then those holdco. understand holdco be was way shares subject to the lockup the correct the

Sandra Wallach

is. it Yes,

Colin Rusch

facility, process you design Colorado the how bit still are you through about the in with much the and have looking far Fremont? along you Okay, terms flexibility the and talk can at that perfect. megawatt you in And two of as work scale engineering in little up Kang, how then, a

Kang Sun

all the Colin, the as at final Okay. up, – we equipment decide supplier of specifications I to up. of and probably moment, at the our Colorado have okay the negotiation. this In we pricing June, we production facility a – our for almost stage production are selection almost have we lined mean, the lined

Okay, the specifications. finished we technical already

our because This team in manufacturing and equipment we with suppliers has experience of processes. for have lot [additional] us is very, very a – dealing fast

fall. construction, still to it need hope We facilities – the ground. okay, ground we don’t just bring sometime to the few it We on retrofit are we issues. regulatory we early to a So start – need retrofitting bring can working the in

Colin Rusch

Perfect. working And installed you talk about and with or either any sort negative, you’re surprises, start of get then testing in that can as Fremont, the seeing some of processes? positive tool the through you

Kang Sun

we testing a rigorous Germany. very in also Yes. do Fremont, Fremont, in

we own according far schedule. are So moving our forward

is So we [Indiscernible] for complete be of After critical month, time is the I relatively should evaluation process. part of smooth. next of some the that June This will think us. this month the important the most those

Colin Rusch

Excellent. guys. so Thanks much,

Operator

And Chris. Go B. Souther from question our Chris Riley. ahead, next from comes

Christopher Southern

Hey, guys.

On timing sense see plans? I and Colorado the but amount and the far the clearer like of sizing to as incremental anticipated the CapEx for just any didn’t out on how wanted CapEx a X as any plan, material gigawatt will hour It changes cadence sounds details are shaping June, the expansion. after get become

Sandra Wallach

Yes.

detail XXX timing – estimates we shared get project, we first gigawatts. the be CapEx the the the certainty DOE for prior have X once will the we’ve through then us megawatt, is But that about plan unchanged. demonstration So together we remain the putting more and to which

Christopher Southern

today? customers Okay, the the you’ve you of many called a that XX-ish like sense. capacity of of how customers through had are the the you of [indiscernible] Airbus, ones in XX, and have you the potential give Could us several of XXXX who for out size in range I’m but today? I then count that just sense megawatts you if think the and makes of of And AeroVironments, beyond. that hundreds size curious shareholder letter, that among kind customers scope assume size, do the that you named kind several

Kang Sun

July. of So – customers, customers, facility inquiries Among customers We sometimes XX our we customers, important. call later will deals in XX feel we those be megawatts with Those probably we the customers. see manufactory. finalize and off-takers Colorado is lose the those included Colorado the part those very or they would the so discussions the hundreds for of when are the

orders that facility. from We a to have take customer

our working facility. pipeline to manufacturing is build a for very diligently company strong large-scale So

Christopher Southern

July customers July, guys probably in process starts something have? it. kind of you kind you’d dedicated details be of planned That’s you think a think Got August or by that the I live around. would in capacity guess

Kang Sun

In very facility. here, are July, fast manufacturing XXXX. operation in XXXX, we have XXX probably of – team working a to megawatt this manufacturing facility in manufacturing we We facility the on building when this like is a

this started have once of full megawatt over set we sure all whatever there’s XXXX, kind because evaluation, inspections, factory it there’s those can customer So we XXX have produce we make activities – to operation. is, sufficient up, factory capacity

the full very to we to run Okay, we pipeline. need capacity, strong have need

hours. be So hundred megawatt pipeline needed to

I of in we So the July. the expect to deals in discussion, conclude are later part the

will for base that the Colorado. So in us customer give facility large our manufacturing scale

Sandra Wallach

XXXX. further diversified To more pack customers customers have building so of that the of who that that answer, many not two our aviation of demand we’re serving our be manufacturers we’re just can pipeline support, sector. Many today, also for significant that will is – customers, a nameplate we serve the how hallmark these part

Christopher Southern

Yes. helpful on That’s visibility. the really guys. Thanks,

Operator

And Go our Moore you. Thank Chip. question Hutton. from from Chip EF next ahead, comes

Chip Moore

evening. I takes, you can you takes, right? in versus that in. And coming follow-up logos demand how that commercial question, see the I existing. Good your Thanks balance what process, that that growing. really guess, and that place? talk about congrats maybe a progress pipeline, a getting the to how bit qualification on of to new point to see long and how Good then on talk to wanted Curious, year-to-date. all new for you’re balancing taking the Great customers the bit

Kang Sun

of Amprius. Yes, they the business. part That’s expanded we purchase from have their existing customers,

Colorado, most manufacturing far, So for in we are capacities, of large those planning existing the customers. our scale

new new applications. also with customers working We’re exploring

the So who process the customer. on be will depends qualification

the have own time to use. qualification replace own put devices, two customers. half can our short. mean customer, the just application They will or their possibility. already and project applications. be device their One identified. existing They have shorter, customer, our there the are have is this their so then battery If of time new batteries already a their types in use they relatively is I customers customer Those of We for qualification in year test

we customer, their work project. have on of type new Another them to with

kinds Those time. little For will bit flying our example, of projects battery support. longer taking a require they that design a a of you devices new be

customer about normally be. for current the how two sophisticated application to qualification battery months For our applications customer depending – will our takes six years on

customer, the time, delayed. most time come of the most the because not delays the been of Now, the their own delay have Amprius, project from

Chip Moore

one like go equipment you what That’s talked centrotherm sort With you’ve more. I ramp-up expand helpful, already you’ve is about how that sounds there, production you’re those incorporating the regards and incorporate? something of very that tested just And Kang. Colorado with can to of you And And process. Thanks. could derisking about overseas, some on learned, do learnings? ask maybe it

Kang Sun

what we megawatt there’s machine two that’s assuming megawatts, Yes, we really, this two two more deliver two megawatt is of because is call the capacity really That’s year. than can megawatt. designed end the megawatts, why is which two

specification, So exercise will If very, Amprius. very not up be scale this important machine can this is at our issue. meet the

is So us. in is encouraging these higher tested validation? is today. a give much what process the This important why process to two very most the two the Germany far, in have for thing than megawatts This and If purposes, works result. we Fremont a we probably throughput and robust us much

more our The second give serve part us is to capacity XXx customers.

Chip Moore

it. Thanks appreciate very I Okay, much.

Operator

our this time, At question-and-answer this session. concludes

taken, may team turn ir@amprius.com. over his not I at the Relations you If Dr. Sun to was to for call remarks. contact Amprius’ Investor now question your closing back like would

Kang Sun

I’d Thanks again, their us for to shareholders like support. our and for thank also continued joining everyone, today. partners, employees,

may updating look from from you about website. We our and about forward Relations the and reminder, learn more Thanks. our a events Investor to updates you of Amprius’ additional upcoming section As the next progress presentations call. on on company learn the our

Operator

first Amprius for today conference quarter earnings for call. Technologies you Thank XXXX us joining

have You wonderful and day. lines your disconnect may a now

Amprius (AMPX) 10 May 232023 Q1 Earnings call transcript