Earnings call transcript Q2 2023

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Operator

Good afternoon, and welcome to Amprius Technologies Second Quarter 2023 Earnings Conference Call.

Joining us for today’s presentation are the company’s CEO, Dr. Kang Sun, and CFO, Sandra Wallach. [Operator Instructions]

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

to Commission. For more refer of with the and uncertainties, these a filings risks Securities discussion please complete Amprius and Exchange

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

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

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

Kang Sun

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

our momentum Our delivered demonstrated more revenue. and Amprius technologies, brought business products quarter and in customers potential. the increased introduced second new growth and

nail that XX% charger to position continues up test. range Celsius. to up the per to degree enable state to in to XXC power Our a six temperature Celsius features benchmark battery States liter the Amprius of safety military’s pass X% density; energy rate of density degree fast operating per volumetric charge us design and United specific And in to a the and the XX firm penetration energy approximately provide: minutes; performance of highlight leading negative wide kilo industry, XX watt-hour command ability XXX X,XXX extreme watt-hour capability;

extensive Amprius been perform are market battery silicon these in and battery production levels. since it’s belief And our other in manufacturing Amprius has no at the that that know-how patents can there XXXX. anode technologies. XX commercial has over on commercial

density, So manufacturing many experience, high-power batteries. lithium-ion years and density company has of high energy

is average the increase in a our are all laid of this today Building capacity we earlier solution we long-term and priority solutions the to mobility, goal execute to aviation manufacturing out to strategy becoming of including Our segments our scale across from year. applications electrical demand with our the with mainstream last EV diligently of meet momentum industries. working battery the quarter,

This build path progress quarter, and we to book the our out of new products, on commercialization. continued large-scale develop customers a our to

to second area. like technological highlights to Beginning a ongoing boundaries development, each the efforts battery examples few of our space. note few high-performance I a in is possible our would in push the what with our now quarter of includes key

We cell the continuous battery density and maximum This earlier per First, watts high-power newest product, displays impressive of announced we industry, charger X,XXX month, this high-energy watt the high-power the XXX per power rate. kilo unprecedent vehicles. EV commercially critically electrical hour and interest is the in early samples this to that will industry, believe other enabling cell ship to technology product XXXX. aviation are to and important able shipping capabilities electrical we of costs cell. performance delivering in with Amprius our to be we close Amprius kilo energy the that density high-performance partners

Satellite power the that demonstrates that as successful High-Altitude its necessary Pseudo in compelling conventional border and the disaster present satellite play opens a excited The flight. versatile partner Uncrewed protection, Second, System Amprius aircraft. HAPS also the stratospheric fly Aerial airborne we batteries believe a important it’s Its to use who an alternative powered to possibility is BAE systems, choose Systems of our and to anode offers Systems from first relief ultralight silicon communication future BAE extensive to recently networks, part program battery XG. XG including to Amprius future. applications and

the our integrated with this to Technology milestone battery cells the U.S. into technical When batteries market performance to with rigorous U.S. polymer the end further extending military us energy the of the Safe an a business battery the more the wearable nail specification gel our $X.XX estimates Program, We our safe program, U.S. complete we Also penetration closely doubles of technology giving to specifically Army-funded passing Army entry the existing stone of and developing Development important one points cutting-edge XXXX. the density electrolyte, Cell time. test. pack, Army we Third, to U.S. mission with watt-hour partners billion solutions, kilo than at Manufacturing delivered significantly Army. of XXX the to year. a part stepping believe per are that U.S. the important working this military deliver an with wearable relationship our is before conformal conformal We by successfully

Challenge partner Solar World October. several in participating integral to have the we become Finally, teams an in a Bridgestone

These their high cars. of the For is our and are Amprius The four changing attention attracted landscape. just the superior batteries develops pilot density vehicle Amprius solar of entering teams energy a significant power development battery batteries solar-powered are chose the for density high-power Amprius critical continental team along X,XXX-kilometer each teams batteries to route. a this event, designs, from ways performance a the Australian process, and capability the application. and few

to our customer We goals. are industrial and our performance push constantly evolving meet boundaries our products

the in year. growing the These and in second quarter see in continue quarter the products. demand business continued of customers the our technical last engagements quarter, to and to who We first additional of customer this to efforts, which recognition a XX shipments. development total have orders batteries shipped in placed customers we with for This and Amprius well, will validation quarter. AeroVironment We and our with Airbus, our significant and as with year’s XX indicates orders includes from their and this repeat quarter to product from Amprius. Teledyne FLIR second beyond relationships show support extend to customers products customers demand XX shipped up commercial new for like Turning up XX industry

Once automotive a the contracts leading with of ways us progress key expected the of and we high-performance is pipeline pipeline the finalizing a not bolster potential drove engagements are be ongoing our shipments. quarter, with new we the opportunity offer technical also significant our that joint addition, OEM. another technical engagement this remains part space. This through engagement only engagement manufacturer. automotive strong. will believe our In in development to finalized, customers are encouraging engagements, we Two that prototype started the the we strategical in In second technical we

year. believe XXXX prototype site pack the aviation beyond. to that shipping and made samples visits for we industry serves fourth this steps toward of two We started whom shipments, meaningful quarter, we As quarter the demand battery visits manufacturers last as these a through to significant from in potential

driving Amprius and production within this enough meet to our as work over short-term, to capacity long-term with part year-end, commercial to well our this remains demand Lab believe will Amprius customers. a is potential of to addition demand. our as scale California is in allow for We In for our our a business strive to accounts shipments production both manufacturing capacity our that we Colorado. shipped today pipeline and XXx to we to expand medium us priority capacity Fremont, achieve as strategy, providing it in strategic it Amprius Fab increase gigawatt in to of as Brighton, samples what Lab the batteries, at our expand critical to expand our both

and Our cathode expand our capital Fremont have automated production full manufacturing facility cell as is both production as chemistry well battery lithium-ion technology cell us assembly further enabled including designed to anode and to a capabilities, in-house. develop

to executing in and expansion, ordered a complete end the our Amprius quarter, necessary that the of hopes the second facility the process are running and XXXX. Lab on having begin of by year track equipment In entering we we up to retrofit

We are project allow engine, our will diligently our reach to also high-volume working which to Fab, capacity. for manufacturing us growth plan Amprius meeting

over next-generation part for square total As foot production X.X expansion, mass planned a potential buildout up is a production a the X capacity the expansion battery for to of of available in with initial first to feet expected capability technology be gigawatt our square reminder, for XX facility provide the The site XXX,XXX the manufacturing of with hour site potential our large-scale United phase to total States. up of gigawatt will hour.

and existing the factory, The time Fab lithium-ion and costs market. Amprius site reduce is equipped electrical structure with power gigawatt-scale to layout for buildout our which will already needed battery

time working now as of this through operational meet is we are to track the goal line. We on to in be call, And remain XXXX. this Our

The Lab’s and efforts. Fab necessary have complete central production and Amprius Amprius anode This and Amprius line deployed capabilities. battery ultimately in mass quarter, optimization team testing Both with be Amprius once to our the high-performance improvement at team engineering Lab Amprius silicon a silicon anode manufacturing Fab. optimized, will process worked Germany will at manufacturing process

our I versed Director and Independent Board the and and Mary to turn Directors Board. our before We perspective have in an Mary opportunities I appointed valued industry one Committee. a offers call very our to as challenges over update unique is Compensation Gustanski final Sandra. our of in recently to and various

confident technical experience we We expand into that as the help and extensive our and navigate are automotive markets. will us sector management new

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

Sandra Wallach

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

a can this our the shareholder last quarter of with main same revenue, in finished a compared million the were drivers detailed $X.X year. $X.X $X.X There found in be financials reminder, to million million increase our two second in We As increase. letter. quarter

a drove product increase we $X.X First, revenue. in million

customers customers to driven shown of though such revenue our Amprius. growth we such orders last customers, revenue quarterly as greater and diversification year’s driven Also year, times by purchase in Kang customers throughout product two three to QX. customers a represented largely that last in As remains revenue XX was Even compared of arise consistent the our quarter, customer recent these quarter new customer mentioned, five uneven product at shipments for record have can than largely this by quarters. and XX%

million, Second, our the reflection totaled $X.X of revenue completed Cell the in a Services Development Safe delivery quarter. we Army

we more to continue expect our orders, customer our revenue as larger more. a percentage set of on intermittent process timing. based quarters, as a our transition overall and development previous begin to as is in category revenue noted services revenue and ramps to recognition this As from to revenue as orders capacity revenue decline even we commercial broader expands customers And product

was Our year-over-year flat for the grant quarter. revenue government

to Moving metrics. our profitability

charges start-up ‘XX our than which QX Our better our negative the ‘XX manufacturing our was GAAP primarily in QX margin impacted by second was gross XXX% nonrecurring negative with margin gross line and gross negative for XXX% in XXX% quarter, margin of large-scale facility. of

As capacity normalize will to confident we in the years. build-out the begins gross we and related begin earnest, expect that construction expansion as we approach our to our are scale-up continues Still margin charges in goals the coming increase. GAAP

management. Now on expense to operating our

Our targeted GAAP largely and costs operating for company public to increased R&D $X.X expenses in increased staffing. due second million, quarter the to additional investments

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

outstanding. XX in of California XX as employees shares As million based those there our June primarily were XXXX, June employees had of full-time XX, XX, XXXX, with we Fremont, location. Also,

was compensation share-based for $X.X quarter million. the Our

quarter Now last turning quarter in cash, $X.X the second exited We and sheet. balance up the million $XX from no to debt. million the with

million activity our used for One key quarter the of $X.X in cash operating was activities. the of drivers

expansion and As discussed Amprius Other $X related to million and requirements. excluding Lab and Fremont previously, believe million in for to in rate expansion build-out per investments remains and to we facility million drive used we efficiently around Amprius projected Considering include audit inflow be equity accessing from ongoing capacity financing committed operating of business using in cash month, achievements our expenses. activities drivers cash the capital fund facility are $X.X transaction-related operating our forward. our in and $X.X projects, run our our cash

call to a over to the discuss I Kang, our back turn I outlook. moment like would to Before take

experienced allocation Also, services new development earlier build-out for higher this continue we should means expenses. to additional company capacity in capacity when is transaction-related that we online. ongoing Also, latter towards to project, several XXXX, that with which G&A we have year our we our weighted Fab recognition we exit performance obligations we come Brighton, to heavily expect until capital increased year. within continue complete be revenue rate to That public our the the at and anticipate of constrained quarter, remain accounting top Amprius more costs we priorities. hour programs Colorado when last along the XXXX mentioned our X-megawatt with see As projected will part expect of

that well on Lab which of the million are Amprius in we by Fab year, the the are as year time $XX to build-out in long this that $XX to projections, Fremont we million start facility as to prior our the of end CapEx believe $XX spend to of we completing as the construction begin half – $XX and expect with approximately track million million, equipment. We Amprius order at second lead

to expect and We well half a the projected provide confirm during the of scale as facility budget design as this second year.

additional the we and of dependent as is control, site, as equity Colorado for the execute have our funding committed timing information non-dilutive spending including facility with more balance sources upon incentives, strength several and projections we our strategic loans to on grants, of Our both share. to specific under our of will rezoning equity outside factors pattern to sheet our so have additional the Overall, we enough approval through to as expect and generate sales such vehicles plan. we believe such warrants cash issuances and multiple provide

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

Kang Sun

you. key few to before points closing. a I’d reemphasize Thank Thanks. like

performance anode to batteries uniquely mobility XX in the firm continues Amprius energy charging time First, positioned performance for are a unmatched silicon time, and technology industry. in demonstrate to lead the electrical power command market. Amprius

are batteries today. Amprius available Second, commercially

customer bring We our have and products since in shipping XXXX commercial significant advancement technological continued been to demand.

engagements. customers We we XX new not technical and our repeated delivered quarter, as only customers added expand well. This

Our robust, look coming our building customer quarters. we book demand further in out pipeline and to is the forward

our ahead scanning the are we significant exiting serve Third, manufacturing to capacity demand XXXX.

our manufacturing We process scale production will parameters further X-megawatt and prove Amprius with Fremont. line out largest at Lab hour our in

XXXX. track Colorado, be facility remain out in to operational also to Fab, Brighton, build in Amprius we our We expect on which gigawatt-scale entry

looking over year. the forward several rest exciting to we Finally, of XXXX milestones are of end the before

megawatt Amprius Fab’s capacity facility and customer product for Lab Amprius deliver the secured our XXXX, to expect our fulfill scale anode prototypes XXX silicon facility hour commitments select kilo construction line equipment at manufacturing We Amprius watt-hour and per start complete to expect purchases. battery and complete production Lab battery customers,

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

are We aviation to enormous, have battery battery performance. billion in the XXXX, billion for market ahead company Opportunities year very has Amprius the by picking both thus market and industries, portfolio by positions conformal wearable and extend a XXXX, productive battery at $XX XXXX aviation of the it growth coming a market XXXX, are in $X.XX including product the opportunity $XX growth that path leading tremendous market with which other far. billion years. us to the all Amprius with been EV from

has to quarter have Our inability solid our this team’s we performance in and deliver planned promised. demonstrated what

turn it support continued your I for the Q&A. will for operator that, you Technologies. Thank back of Amprius With to

Operator

Please proceed Rusch question [Operator with Oppenheimer. Instructions] with Colin is first your you. from Our Thank question.

Colin Rusch

from the expect can a testing about of subsystems switch flip kind And talk the tool? megawatt start to full little much. at and up. perspective Kang, for where Thanks when around you’re really a bit running the you so scale you that just

Kang Sun

Yes, – have operation at some talking are the Colin, we our the test, Fremont you about here.

tool. at Fremont, the deposition finished the anode our we suppliers at full – test Germany for silicon already where term, in Central So almost

to to transfer incur expect piece we So frame. that that move

we will place. that So have by end the of equipment the the year, in of part

So get manufacturing those relatively key right, If rest that part are of that’s the inter process. the this of easy. we

Colin Rusch

that you commercial folks customers are point. the obviously, particular who of many at percentage for customers customers, awful how the with Can about for an incremental taking little then what sampling? talk are a XX at company of bit those And point that are applications? is are adding And this Excellent. this lot products

Kang Sun

product. really I think orders qualified purposes, of some So have we in prototyping, processing our processing – – and given they the customer, some new sampling, all terms for for proximity, the

I those our are start for processing their commercial and So applications. really XX% customers would say qualified products of

Colin Rusch

the That’s the of of equipment in of is one is towards characterize going towards the how then flow in cadence quarter is for much versus the the spend balance quarter? much would going for how terms year, just in orders? incredibly cash much the and going And terms Sandra, helpful. facilitization how How third of you fourth

Sandra Wallach

operating keep So, going relatively our as of to we as use activities are flat far cash.

the We is $XX to is lead the for for million this have of $XX the on and dependent finish end, Colorado. long million, million end, $XX projecting But between somewhere on high we the items $XX got construction million timing. to are estimated time low the and and about more the out to Fremont, demand on be all preordering

Colin Rusch

Excellent. Appreciate much guys. it. Thanks so

Operator

you. Thank

question proceed is Chris Securities. Riley from with next B. Our your question. Souther with Please

Chris Souther

Hey just guys. you there? performance just should what the kind sector, think potentially near-term in automotive you of around Thanks development timeline on enthusiasm give us you mid-term? goals temper that joint contracts lay can you And can commercialization I OEM, the a the changes out? for updates a the the for will we should standpoint, and of am potential or of curious Maybe from do questions. And for taking high-level the your hope kind automotive the we sense my this share for timelines expect of

Kang Sun

with are We already this customer okay. some engaged for time,

vehicle very the to like formalize the electrical a step relationship would This us. for we development one manufacturer. the program. would is Now, which This is be significant joining high-performance

to So, this it’s business. guide going us into

this finalize or in agreement next the months will we expect we So, so.

Chris Souther

fits strategy kind manufacturing, that customers cells the just larger have Okay. called call. in manufacturing for that about in-house a into talk Can those talked smaller the customer And you for like FLIR, battery how about through customers? of the on around specific then is kind out of pack it the need? earlier kind standardized Teledyne relationships applications in of Can and or relationships latter you pack maybe on overall bit what just you have Airbus, you talk

Kang Sun

okay, Yes. very, The in That’s will very Lab we today. significant. have what Fremont, XXx have capacity Amprius we than more

in large our control In addition here. to better because improve have manufacturing this This that, well, as tool place. uniformity, we have performance going of we have we better will is battery to anode our

our So, specific the for time, or still at it’s this for customers, for customize design we major customers. – batteries,

they the smaller here. So, of have we take course customer, whatever

the to wanted cell, we only well. industry moving as not ultimately, to direction standardize the battery Now better is

Chris Souther

you pack manufacturers, pack is out that are you standardize you Okay. well? side, sales, it pack starting as though visiting And two as on of called to the the more kind expect standardized

Kang Sun

Yes.

make We have type so – on We Airbus. put module manufacturer, we types and are directly. example, – on for our of Chris, commercial or we their to we of for pack work them rely customers company together tech the customer – and One OEM, have battery with application. the a rely two customers. module cell is those company Since cell a

pack So, the are as important Technologies Amprius very companies well. customer of

time capacity beyond. very need have operation. the is was finish we XXX of is and purpose So, in the – By supply construction. the a those this megawatt have already standardized to We facility is XXXX working relationship from leaders now have visited because to when of long-term full to This the the This visit. industry. main visited business. module purpose this supply two under This the agreement customers, to we we we discuss to important

very the this good time. customers We retention have with at

Chris Souther

Yes.

the hop I queue. Thanks will guys. hear. in it’s good Now, to

Operator

you. Thank

next is Hutton. question. EF your from with Please question Tim Moore proceed Our with

Tim Moore

here. Thanks. insightful. got I And today letter have shareholder was two commentary questions your

the from XX in ago a quarter, evident shipped quite up Your this with commercial success quarter. total is year March XX XX and customers

applications XXXX, can proposals headline desk? capacity prioritize Cell stratospheric in them? As Systems maybe it and sales your the to for single and you plan for a that the Development share range customer a rank the offerings, really prioritize solar works mean this to Army, just your or on the out ago, batteries across accolades. of maybe flight like incoming it I customer? for more something clearly, Is the do and years year that But I X wider trying Army customized are you think specific is you flight you like were how U.S. summers BAE potential nice in and handle come year, out two added how production opportunities Safe your based demonstrate from

Kang Sun

certainly us. to is our show Yes, Tim priority. serve our the customers loyalty Those existing customers,

So, Airbus, since example, them been have we we have, with XXXX. for working

a So, market. capacity over helpful we existing capacity production They The customer certainty us allocation. is could inquiries new capacity customers. to Fremont is capacity. have be develop build a XXx more very what priority. That’s have priority on our lot than for reason have the we of we But the new today. This very, the

Tim Moore

power really and are sheet. great you mean I in-house. a seeing icing new anything one as in the helping a you you orders? are density new are Is orders it to another you it balance over on density? win kind you the and that has charge maybe charge, actually of but really XX% you firm kind better? manufacturing your solely particular point Is healthy doing you time Is fast and thing orders of is helpful. power to the clearly extreme the beyond win of of – state it Obviously, That’s – production company and approach charge to zero the not Do that developer, fast prospects, that’s lot minutes? advantages just customers you or six are can of in cake

Kang Sun

market. focusing aviation on is today Amprius Tim,

priorities position in markets safety miss the our company spec States power. those, the important For Army is aviation They three one energy leadership absolutely and for for will aviation of for the safety. any pass top safety safety, United cannot military because and

these how cannot because very important important fly. have they very far they This is far value very, fly if don’t Otherwise, enough. dictates them. can for they commercial is energy the Secondly, any

Amprius we need there chemistry battery the and reason one lift deliver because market, what They have power is today has is can inquiries almost a to large we off the no third power. have customer look that here. to if the the landing. at The is This

to between ready to have addition safety In and and the power energy. compromise

As ago, watt-hour kilo XXX published deliver few our news per release XXC power days we capability. can have a battery

Tim Moore

that’s very And save questions Thanks. later. I Kang, helpful. will for Great. my offline

Kang Sun

Thanks.

Operator

you. Thank

Our your with Sinha with Northland is next question. question proceed from Financial. Abhi Please

Abhi Sinha

Yes. my Hi. taking for Thanks questions.

the I So, customers, to on just just that. press on want on more

about acquiring process to customer, does you of an you it what like in And timeline of you what order? before not get talk and orders? the get do a talk more could the able about could Like new you feedback if take the from they are the say? terms have get process that you If importantly, the customers from whom to

Kang Sun

Okay.

First, they I what product in want will about of talk terms specs.

energy basically customer, three things in power. have Our mentioned earlier, as and I put safety,

performance their parameters with three discussion. is there Now, of all those no spec and meet

very, deliver. to those important parameters need So, are we very

us That’s capacity customer, XX we capacity a don’t they to focusing expansion the issue. order to to And will that, months the support primary Amprius XX guarantee order. the focus. In expansion growth, our asked they want in on example, guarantee, not in months, QX see basically roadmap United XXXX. the at have customer visited place next – And for The Europe an can months, before States, they is why is recently, a on there ago. okay, least. the about their cannot engage cannot us the that in we and we this get We I addition is XX capacity normally the if with if customer has been

Abhi Sinha

helpful. That’s you. Thank

new when how So, does an you provided to you go MO how – to long a or take customer, to that, when order? it just place for them or something, approve on

Kang Sun

varies, It okay.

be it. Some They take they They our customer take months products. other about takes because people see use seven standard eight tests. to done or months

carrying the started this take have. from we much time the customers the longer this different When program unmanned the at shorter own take than are phones lead will spec another So, most the because is scratch, you Definitely, may aviation time okay, product a technical this with time we are see be the that moment, is part okay. like of the a okay, is development the customers’ time, for is it’s get At relatively our parts. devices, Once okay, our In have vehicles, we battery electrical super future, working easy. two new development. X.X time, years. they longer. in of vehicle But meet [ph], flying passenger the development, to we okay. development One part really satellite

Abhi Sinha

you very much. Alright. Thank

Operator

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

If you you contact back Relations over would to questions, team Dr. ir@amprius.com. may call for Amprius have any turn the additional closing now at Investor Sun I remarks. like any to

Kang Sun

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

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

Operator

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

disconnect. now may You

Amprius (AMPX) 10 Aug 232023 Q2 Earnings call transcript