AMPX - Earnings call 3 2023 | Amprius Technologies, Inc.

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Operator

Good afternoon. Welcome to Amprius Technologies Third Quarter 2023 Earnings Conference Call. Showing 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 facility, ability expand adoption its large-scale this capacity, and build forward-looking Amprius commercialization, timing including, to of customer its future note that structure. manufacturing regarding achieve contains a but its cost and statements limited new scale manufacturing the business to, sustainable be and factors performance in involve known expressed unknown different to that or cause statements and achievements important risks, future These other such any results, may Amprius' achievements or results, materially from uncertainties forward-looking performance statements. implied or

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

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

webcast, addition now his Amprius that which Dr. for these comments. results, letter to has Investor Kang proceed. Technology's In Sir, website. shareholder be the the posted over a Sun to accompanies the on call Relations also the can CEO, company please found turn I'll

Kang Sun

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

exciting quarter was us. an third The quarter for

energy high-power mobility, and briefly batteries Amprius be to developers, all EV new including Before across markets manufacturers Amprius I report, may electric density industries. who the of density give to the those like and the aviation applications would high introduce quarterly with segments I company. to and

and over kilo, hour and in liter industry-leading silicon density anode anode of manufacturing platform spent energy technologies, since watt-hour strong robust XXXX. patents. silicon liter today, specific As the watt processes volumetric structures X,XXX commercially watt-hour kilo anode back the including XXXX. density Amprius in last independently per per energy performance a per patent batteries available X,XXX has well verified early portfolio XXX watt-hour XXX as early provide decade XX the lab a per our silicon battery developing And various as pioneer Amprius of battery

Our power battery performed up United penetration nail enable the XX% safety test. extreme Amprius that pass up XXXX. has to a commercial to operating approximately us charge temperature to production of Celsius of degrees in X XX to range X benchmark minus capability, fast feature charge battery of XXC wide rate been military state XX minutes, degrees design States and since

So batteries. the today company there attention perform attracted density to these to the manufacturing and density high-performance batteries experience on demand lithium-ion market are had build batteries other It's high-power levels. demand. our that increase Company's the we years and have can as capacity additional no at commercial Amprius for high-energy manufacturing, the market is belief meet priority products. customer that our can quickly in many as

California up in moving well. Colorado, scale capacity production both are Our along activities and

completing per such mobility this aviation chemistry solution XXC by engaged highlights closer take to would production delivered cell batteries to applications, opportunity and new energy In and and moved with additional note this technologies power new we kilo for enables delivered we simultaneously a to customers I our like our in quarter, expansion a The density design make battery and to factory. it California capability. This and few hour breakthrough August, progress. sold EVs. a our unveiled as that and electric with capacity an energy XXX battery cell, of watt ideal power

a XX% previously requirements high-altitude them extending enough flight believe platform, as to the taking we modeled eVTOLs, landing, energy available pseudo much So challenging commercially enable as and off, cruising and sales to available cycle XXXX. watt power this customer We stratospheric greater in make with purchase additional this signed the customer power developed batteries premier commercially life we while qualification. development announced from for by Wh/Kg developed provide battery only of satellite cells are designed they better were electric Company's With evaluations kilo (HAPS) commercially per to XXX environments. that strategical XXX the formats energy for and highly and known on Also, new available custom X overnight or has their that Amprius' can density have delivered for in for ultrahigh-energy of plan year sales. than provide to product to for and enhance based early manufacturers XXX flight. this available operate and This XXX X longer pack and address also orders alternatives. is as unique performance, in cells our battery propulsion, qualification and Amprius with cells had collaboration to Recently, necessary customers platform Wh/kg range HAPS' customers' the density endurance Wh/kg that we aviation

In custom high-energy as cell for the to addition performance for to storage high-energy drone are well. positioned improve military form applications, factors applications new these

we shipping the will expect first to commercialized We this cells begin be that and year.

Solar delivered X X Amprius Challenge batteries teams. by race, that our is the the XX the batteries out month. teams Bridgestone the places performance last powered were In of this accomplishment exciting Word swept Another at of top

be during expected roughly across around Magazine for Cosmos XX% other power around. rolls and battery XXXX time of Amprius by the units all better race, the the by event weight packs capacity the standard by same provided amount of used teams the are reported to As competitors,

and repeat receiving performance customer well as customers industry. third who Although continue driving Teledyne includes up AeroVironment, our group are conditionsMoving the requirements very XX the tested accounts, customers, our quarter, continue contracts up attention in such the batteries anode Amprius we as strong challenging from not In from orders as well shipped the new new battery vehicles, vehicles competing quarter. last This XX second the commercial to Flir, in as their to to the from XX XX silicon place as Aalto, from customer quarter. quarter.

their rechargeable over a batteries. power packs. opportunities battery battery nano in (nano-UAS) UAS utilize several technology's market. commercial for for with the successfully comparable open our example, In market packs. our received cells significant market, order and to aviation We signaled well, The believe RCCTO the OEM customers growing process into performance rechargeable completed now for nano that progress we a for existing new Tenergy both energy engagement high our another qualification our UAM, have we will which we the transitioned and cells. unmanned our our aircraft high Amprius' business, segments UAS, areasFirst, a This is offers we X% partnership we addition, a The is the purchase energy remains a program this benefit, technical energy new combination internal as custom from to our during market U.S. -density cells the proven boost move serve for capabilities premier high in quarter, the of and including reduction electric example eVTOL now third pipeline for mobility. other advanced eVTOL and volume our the across demonstrated with segment the have quarter XX% Army a viability production.Secondly, strong weight our multiple for where partnership - systems and

of forecast one beyond. also are we our supply commitments to we tens customer started the long-term towards recently, of increased with production mind, XXXX. the greatly capacity the a fill through battery manufacturers to facing shipping years. aviation of Third, are to that which and supply, this with we demand agreement customer demand pack we and in segment serve QX moved samples in received coming Overall, our MWs larger With we that still are building of outstrips confident to demand in enough two

priority. earlier, two expanding our we have our capacity is mentioned As production main development. under projects expansion I Currently,

scale times which MWh our nearly is We battery facility customer additional manufacturing and a our for pilot production completion. factory critical optimization. serve capability process lithium-ion capacity large-scale with a X for Fremont, Amprius both facility to First, is has capacity. expansion California deliver as capacity anode The capacity orders megawatt XX Amprius This initially to silicon about as plan manufacturing production technology. in increased XXXX, production in for California current our at is facility

the XXth, section Amprius' and anode in analysts to California to on high institutional facility. of for our we Our open-house already event battery will website. and sold silicon XXXX our investors continues out when hosting manufacturing forward list overview look technology we commitments capacity density batteries, customer check video for our lithium-ion anode manufacture to out, how XXXX of energy at silicon Fremont in the we is our Also, a please look Fremont, showcase ultra-high grow.For performance December posted

Colarado. our XXX-megawatt CFO, in Sandra? to California over Colarado, and additional batteries scale a is The The aviation of I the capacity then on Our capacity initial to up over facility factory now we annually, demand. manufacturing to gigawatt-hour leased buildup to with XXX,XXX financial capacity expansions time our other of plan that, have hour production increase will have with space for for production Sandra hour quarter. facility this the results focus the operational while feet in is phase in square turn keep our X-gigawatt feet the will XXX,XXX we expansion. square is available production this module the production for call state to in state-of-the-art XXXX and expected to in Wallach, review stage. With We be

Sandra Wallach

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

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

prior $X.X largely for revenue to in to Amprius. the record by second a shipments the quarterly XX consecutive year million First, from our by period quarter, driven customers product increased $X.X million,

limited we times that our the have by our shown last greater in consistent year, such number quarter, new customers only customer compared of to at X of customers revenue Although orders for growth X the quarter. even quarters. diversification In recent to account the product customers arrive largely than can uneven throughout XX% in that purchase revenue remains third and customer the quarter we driven

successful the a completion services million, development previously program the Army was $X.X our of for our U.S. Second, of mentioned. reflection as RCCTL Kang revenue

Moving profitability to metrics. our

to XXX% in Our improvement XXX% an negative gross quarter for XXX% negative third and XXXX XXXX. from in QX was negative margin the QX compared

approach we up in we discussed earnest. are margin anticipate costs prior service will goals. normalize that start confident start-up significant margin gross mix fluctuates. capacity we've in factory we As term, quarters, and will ramp Longer variation product revenue GAAP gross to that as as expansion our Colorado our begin see as Also, we we Construction our

Now on management. to operating expense our

quarter and X in lean Our for maintained in for $X.X date, operating We the were the even when expenses accounting targeted quarters G&A transaction-related third expenses previous million. a to structure operating increases QX. staffing in R&D fluctuations for

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

number million. quarter based with those our outstanding XX, XXXX, from XX XX, XXXX, California were in up of employees, Fremont, September as was of employees weighted full-time primarily As our September Also, average of XX second in $XX.X location. shares there the

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

in the key to negative the sheet. in for of $X.X cash drivers third million the operating million activity quarter $XX.X were now balance The cash and debt. We no our quarter cash with Turning flow. exited

million run our million of to negative facility $X usage rate the projects, for forward. transaction the ongoing approximately the business time Although $X.X build-out through Colorado positive Fremont million costs, our are of million $X to our a $X.X capital achievements long per remains we ordering of and added equity efficiently drive and employee lead excluding related quarter, Considering using and facility. believe committed to at we equipment

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

to priorities of and build-out That as to and the year We the we our the of facility. million to beginning for Colorado build-out of and XXXX constrained the XXXX of capacity project Fab of of items spend of is capital million spend expected top $XX the the the project of lead expenditures million long we'll time in facility we $XX our online. that for until expect remain another complete expect rest XXXX capital estimate Fremont on Amprius of beginning come our when balance to $X over rest the million start construction on our capacity the over end the XXXX be allocation Also, XXXX, another $X in we the and to procuring production new equipment. to Colorado X-megawatt

part in second new we October facility that of planning, a for our million business at-the-market and shelf filing. included As $XXX a of ongoing filed registration

committed We multiple Overall, with issuances as generate the with equity sources funding I have warrant and of our balance shelf. such equity to and believe our the sheet and both that the our we call the terminated enough continue effectiveness concurrent under facility of that, through ATM discussion pass exercises and executing such to as strength the additional vehicles will loans grants, cash incentives, nondilutive financial the back and will to With strategic plan. conclude on Kang. have sales we

Kang Sun

temperature their performance, to in few technology Amprius electric commercially uniquely our safety, are Amprius industry. closing.First, before of a continues charging available battery lead reemphasize are market.Second, a points the Thanks, unmatched mobility Sandra. combination performance Silicon key today. power, Amprius positioned I'd demonstrate for and or energy, firm command and with like time, to

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

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

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

Third, ahead our in significantly line with at serve our footprint and manufacturing the are nearing expanding capacity our capacity production we to MWh Lab completion, we are Amprius California. scaling X

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

XXXX. we looking to are we exciting Finally, head forward milestones several as into

and We Wh/kg Amprius capacity commitments delivered megawatt-scale anode Amprius expect silicon battery XXXX select battery expect to at $XXX fulfill continue manufacturing prototypes production securing operationalize customer facility for customers. to Fab, lab, to our

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

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

back and ability demonstrated team's to quarter Our With questions we Thank promised. answers. the to for of has I third for it and your solid you what turn performance our operator support Amprius planned Technologies. deliver continued that, have will

Operator

[Operator Instructions].

with question comes Our first Oppenheimer. Rusch from Colin

Colin Rusch

U.S. single line questioning. risk And a the to potential into start about pack just talk your you the could to capital ramp any sources little Sandra, And of I'll Can bit them potential all to you international after I'll into incremental back sources from coming timing given few capital? address that. a for energy for as in leverage hop then of price up? a higher density any you the payment cells if

Kang Sun

Yes.

there other is terms First, can level. deliver. at because we a is capacity can XXX moment, this in Wh/kg price at product product no power the this commercial significant product we desired a with have And at perform which perform leverage of that selling only our

better as then So pricing far I and have we as alternatives know. do

terms have entire megawatt scale, Secondly, purchasing details the production equipment XXX specified, production select megawatt and I scale, of at this we're supplier equipment, scale the in contracts. moment, large we working on of the is mean,

Sandra Wallach

of Colin, in needs the Great. great question. timing step And and I'll any potential capital answer

plans. $XXX shelf immediate any now, we for have We So million. don't right filed the

place. schedule We becomes confirmed million And we'll timing. a ATM far as I look the our at have as more taking harder in be $XXX facility think build-out, as

Operator

with comes B. question from next Souther Riley. Our Chris

Christopher Souther

around as trying from contra about we starting those progress. frame that opportunity I'm of where in part a there the just called size bit Can you overall to of capacity orders maybe orders building capacities talk the electric kind could and a you better a pre-premier this get Maybe broader out overall the aviation set conversation cover, backlog are of sell of out customer you to the around the activities. Colorado. in sense little

Kang Sun

Chris. have production we that's California factory. our we the XXXX out the we Well, capacity Yes, because in sold manufacturing as first, place mentioned,

customers give have But okay, orders forecast a commit, also not megawatts forecast strong at capacity receive have this a this until those moment. we year, us we available. we of did because will production very tens So

We very forecast, the entire is the at look keep we entire the are building strong. If forecast pipeline.

okay, We but have megawatts, customer have give in we capacity us the XXX this terms over tens indication, of at signed moment. of agreements, megawatts or several the tens engaged

Christopher Souther

Got it.

lot action makes in of a formal Okay. around really sense And helpful. orders. certainly the large before Colorado it That's seeing

So on but customers customers for products customers you I who prioritizing here. commercial potential It to you seems looking are versus customers like fold like XXXX continue the existing prioritized, samples? the point sold capacity are new new to out, are with around how assume existing being add

kind Just what next of look the year? like existing customers does new and mix of

Kang Sun

mentioned, allocate be but do capacity a serve we sufficient capacity customer the -- customers, new certain do yes, new -- we We we a already piping, do commitment to for have customer believe serve. to we for the as But we engagement. our for primary will allocation have something

Operator

next Moore Our with comes from Instructions] Hutton. Tim E.F. question [Operator

Timothy Moore

all take-off and help that safety takeoff complete major order that and mobility you Given that electric offering you aviation to and the serve you segments landing a the and Power, breakthrough of market could of bundle meaningful recently the the aviation landing got you vertical now and prioritizes now a purchase that quarter? cross-sell for vertical electric be got, how and first Energy

Kang Sun

or especially we at electric power, markets, Amprius, would EVs. other be large safety, low the market formal that's for that delivered moment, tentative we performance applications. but time, even have a this to pressure We capability change. don't to mobility aviation the manufacturing can the applied At truly We the believe do charging performance, pressure performance, have building because Integrity energy, group blocks case the

we blocks think the have for all the applications. technical I available building

Timothy Moore

besides my cleared X That's need ordinance Colorado ago. next beginning meet or That's do nice besides that to just the in need operations Factory us question, milestone equipment? question just helpful. to hurdles be of And hear. first to that of Is and walk any fab year other installing receiving achieve my weeks you then actions your there follow-up half just what you receiving Scale the you else through of kind would or equipment. the Can other the

Kang Sun

most equipment line. would delivery manufacturing internal manufacturing The a equipment would select, battery select in advanced be we for The the X We this a have suppliers the X lithium-ion part, say, I time month. industry. maximum suppliers

moment, We the have of this at -- negotiating we details purchasing final contracts. are the

that's the problem. not on So still Currently, issues. some we're working regulatory

the regulatory issues move the think to for forward. us is major bottleneck I

thing For look at to year to January need in permitting we probably schedule at we now, a push have sometimes moment, thought We, we we this we kinds next of done those to example, probably to of month construction early this did the here, can start before month this this instead our air get we push things, that out. it construction. work the plan

Operator

Sinha comes question from next with Our Northland Capital. Abhi

Abhishek Sinha

Abishek. on of This Kailash behalf is

wearable So we just to to deliver the batteries, U.S. outside with wanted respect to conformal the you militaries know if could

Kang Sun

problem. engagement. an Paris, to shouldn't to do example, can have for that a we for Australia, countries, certain have certain But we countries, for license We export countries, Japan need

Abhishek Sinha

when with And right. expect remind that you And follow-up, margin? respect much gross to happen? as can would break do you us even need All to how a you to revenue

Sandra Wallach

as model. financial as So far now, haven't given guidance we our of as

we haven't that. disclosed So

Operator

next comes question Wainwright. HC Dayal from Our with Amit

Amit Dayal

get Can Phase is for to facility, the you that requirement XXX hour X CapEx target? total Colorado remind capacity us what the megawatt to guys,

Sandra Wallach

Yes.

What some construction now as Colorado run We we for the for tariffs million is being production are including we've updated the the and on to drawings and XX% have get million, will updated know facility. ranges $XXX between still that costs delivery $XX based before. information the we given equipment more

So we haven't updated that range recently.

Amit Dayal

how to megawatt X the modeling we with ramp capacity or Okay. for months to think about should that to Fremont a the the at I follow-up for guess hour? respect X is question adjacent

Sandra Wallach

along would So with showcase we'll expect QX. up slowly We're won't very year the and that excited it available. quarter. available X-megawatt each on ramp It the have December rest the the facility. of will throughout We XX, all online sequentially it equipment be to

Operator

Global. Grant Jeff The comes next question Alliance with from

Jeff Grant

while at personnel are customers. Is there With capacity from internally the any allocations impending all? some more at standpoint new more considering also increasing add to constraints potential that imagine new customers a existing maybe customers? are Fremont, guys additional Or in to something I managing there's you

Kang Sun

expansion with in the be case. customer mind. a would capacity That We view new this

we out for the we're built capacity capacity customers. already new One current of of reasons this the because

the engage enable customers. to capacity more will new So us

Jeff Grant

of already of to the Great. time that you you that the talk see where all on? are And the guys demand battery of you can fits indications working of XXX-watt you line of what commercialized? kind existing market And about the guys in at commerciality are relative some early that hour offerings have terms the in

Kang Sun

a customer have demand, already We actually strong quite demand. a

We expect XXXX. restart initial customer we can inspection. time, we install evaluation. call our have in -- So start equipment prototypes manufacturing customers factory production can the provide to At pilot to for we and to a that

Sandra Wallach

Yes, the was XX your more watt XXX I question Jeff, of kilogram think, if per a megawatts. around

Jeff Grant

the [indiscernible]. was guys just that you it soon, believe I piloting but XXX-watt wondering more to Sorry, specific Yes. hour the talked are testing battery about that was you I

Sandra Wallach

No.

several be then our into platforms. year by in commercialization end To the hoping of the part we'll and have those customer shift select already that been to of So strategics designed of to first point, into Kang's prototypes XXXX. products move this

So next well. we're year ramp that expecting to as

Operator

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

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

Kang Sun

for today. Thanks, us again, everyone, joining

call. Amprius our we updating conference Diego progress and at We next our next additional automotive our of look advanced to events thereafter. Relations about website. Investor hope battery from the at our forward the and learn the And month more expansion you event presentations learn company, California on updates, and may upcoming in about As shortly see you San on a reminder, Fremont, you to find section showcase

and Finally, shareholders our partners to support. their employees, thank I continued for would Operator? like

Operator

Thank Third today Amprius Call. Earnings you for joining us Conference Technologies XXXX Quarter for

You may now disconnect.

Amprius (AMPX) 9 Nov 232023 Q3 Earnings call transcript