Enovix Corporation (“Enovix”) (Nasdaq: ENVX), an advanced silicon
battery company, today posted to its website at
https://ir.enovix.com a quarterly shareholder letter containing the
financial results for the first quarter 2023, ending April 2, 2023,
and a new investor presentation.
The quarterly shareholder letter and investor presentation
provide business updates that detail progress made in the first
quarter along several key areas including manufacturing,
commercialization, and technology. Full financial statements are
included both in the quarterly shareholder letter and later in this
press release.
“We are making substantial progress across all fronts,” said Dr.
Raj Talluri, President and Chief Executive Officer of Enovix. “Fab
1 delivered units above our forecast, and we are moving quickly on
Fab 2 in Malaysia with a site selected and are in the process of
closing non-dilutive financing to largely fund our first Gen 2
Autoline in Fab 2. We additionally raised $172.5 million of
marginally dilutive capital to fund Gen 2 Autolines 2, 3 and
4.”
Enovix will hold a video conference call at 2:00 PM PT / 5:00 PM
ET today, April 26, 2023, to discuss the company’s business updates
and financial results. To join the call, participants must use the
following link to register:
https://enovix-q12023-earnings.open-exchange.net/.
This link will also be available via the Investor Relations
section of Enovix’s website at https://ir.enovix.com. An
archived version of the call will be available on the Enovix
investor website for one year at https://ir.enovix.com.
About EnovixEnovix is on a mission to power the
technologies of the future. Everything from IoT, mobile and
computing devices, to the vehicle you drive, needs a better
battery. The company’s disruptive architecture enables a battery
with high energy density and capacity without compromising safety.
Enovix is scaling its silicon-anode, lithium-ion battery
manufacturing capabilities to meet customer demand. For more
information visit www.enovix.com and follow us on LinkedIn.
Management’s Use of Non-GAAP Financial
MeasuresEBITDA, Adjusted EBITDA, Free Cash Flow and other
non-GAAP measures are intended as supplemental financial measures
of our performance that are neither required by, nor presented in
accordance with GAAP. We believe that the use of Non-GAAP measures
provides an additional tool for investors to use in evaluating
ongoing operating results, trends, and in comparing our financial
measures with those of comparable companies, which may present
similar Non-GAAP financial measures to investors.
However, you should be aware that when evaluating the non-GAAP
measures, we may incur future expenses similar to those excluded
when calculating these measures. In addition, the presentation of
these measures should not be construed as an inference that our
future results will be unaffected by unusual or nonrecurring items.
Our computation of EBITDA, Adjusted EBITDA, Free Cash Flow and
other Non-GAAP measures may not be comparable to other similarly
titled measures computed by other companies, because all companies
may not calculate the Non-GAAP measures in the same fashion.
Forward Looking Statements This press release
contains forward-looking statements within the meaning of Section
27A of the Securities Act of 1933, as amended, and Section 21E of
the Securities Exchange Act of 1934, as amended, about us and our
industry that involve substantial risks and uncertainties. Actual
results could differ materially from these forward-looking
statements as a result of certain risks and uncertainties.
For additional information on these risks and uncertainties and
other potential factors that could affect our business and
financial results or cause actual results to differ from the
results predicted, please refer to our filings with the Securities
and Exchange Commission (the “SEC”), including in the “Risk
Factors” and “Management’s Discussion and Analysis of Financial
Condition and Results of Operations” sections of our most recently
filed annual periodic reports on Form 10-K and quarterly report on
Form 10-Q and other documents that we have filed, or that we will
file, with the SEC. Any forward-looking statements made by us in
this press release speak only as of the date on which they are made
and subsequent events may cause these expectations to change. We
disclaim any obligations to update or alter these forward-looking
statements in the future, whether as a result of new information,
future events or otherwise, except as required by law.
For investor and media inquiries, please
contact:
Enovix CorporationCharles AndersonPhone: +1 (612) 229-9729Email:
canderson@enovix.com
Or
The Blueshirt GroupGary Dvorchak, CFAPhone: (323) 240-5796Email:
gary@blueshirtgroup.com
For media inquiries, please
contact:
Enovix CorporationKristin AtkinsPhone: +1 (650)
815-6934Email: katkins@enovix.com
Enovix Corporation |
Condensed Consolidated Balance Sheets |
(Unaudited) |
(In Thousands, Except Share and per Share Amounts) |
|
|
|
|
|
April 2, 2023 |
|
January 1,2023 |
Assets |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
293,751 |
|
|
$ |
322,851 |
|
Accounts receivable, net |
|
21 |
|
|
|
170 |
|
Inventory |
|
815 |
|
|
|
634 |
|
Deferred contract costs |
|
800 |
|
|
|
800 |
|
Prepaid expenses and other current assets |
|
5,857 |
|
|
|
5,193 |
|
Total current assets |
|
301,244 |
|
|
|
329,648 |
|
Property and equipment,
net |
|
102,275 |
|
|
|
103,868 |
|
Operating lease, right-of-use
assets |
|
6,205 |
|
|
|
6,133 |
|
Other assets, non-current |
|
881 |
|
|
|
937 |
|
Total assets |
$ |
410,605 |
|
|
$ |
440,586 |
|
Liabilities and
Stockholders’ Equity |
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
$ |
4,751 |
|
|
$ |
7,077 |
|
Accrued expenses |
|
8,685 |
|
|
|
7,089 |
|
Accrued compensation |
|
10,400 |
|
|
|
8,097 |
|
Deferred revenue |
|
350 |
|
|
|
50 |
|
Other liabilities |
|
916 |
|
|
|
716 |
|
Total current liabilities |
|
25,102 |
|
|
|
23,029 |
|
Warrant liability |
|
61,920 |
|
|
|
49,080 |
|
Operating lease liabilities,
non-current |
|
8,010 |
|
|
|
8,234 |
|
Deferred revenue,
non-current |
|
3,424 |
|
|
|
3,724 |
|
Other liabilities,
non-current |
|
38 |
|
|
|
92 |
|
Total liabilities |
|
98,494 |
|
|
|
84,159 |
|
Commitments and
Contingencies |
|
|
|
Stockholders’ equity: |
|
|
|
Common stock, $0.0001 par
value; authorized shares of 1,000,000,000; issued and outstanding
shares of 158,089,463 and 157,461,802 as of April 2, 2023 and
January 1, 2023, respectively |
|
16 |
|
|
|
15 |
|
Preferred stock, $0.0001 par
value; authorized shares of 10,000,000; no shares issued or
outstanding as of April 2, 2023 and January 1, 2023,
respectively |
|
— |
|
|
|
— |
|
Additional paid-in-capital |
|
770,472 |
|
|
|
741,186 |
|
Accumulated deficit |
|
(458,377 |
) |
|
|
(384,774 |
) |
Total stockholders’ equity |
|
312,111 |
|
|
|
356,427 |
|
Total liabilities and stockholders’ equity |
$ |
410,605 |
|
|
$ |
440,586 |
|
Enovix Corporation |
Condensed Consolidated Statements of Operations and
Comprehensive Loss |
(Unaudited) |
(In Thousands, Except Share and per Share Amounts) |
|
|
|
Quarters Ended |
|
April 2, 2023 |
|
April 3, 2022 |
Revenue |
$ |
21 |
|
|
$ |
— |
|
Cost of revenue |
|
12,248 |
|
|
|
515 |
|
Gross margin |
|
(12,227 |
) |
|
|
(515 |
) |
Operating expenses: |
|
|
|
Research and development |
|
23,749 |
|
|
|
12,731 |
|
Selling, general and administrative |
|
27,274 |
|
|
|
11,869 |
|
Total operating expenses |
|
51,023 |
|
|
|
24,600 |
|
Loss from operations |
|
(63,250 |
) |
|
|
(25,115 |
) |
Other income (expense): |
|
|
|
Change in fair value of convertible preferred stock warrants and
common stock warrants |
|
(12,840 |
) |
|
|
67,800 |
|
Interest income, net |
|
2,466 |
|
|
|
24 |
|
Other income (expense), net |
|
21 |
|
|
|
(2 |
) |
Total other income (expense),
net |
|
(10,353 |
) |
|
|
67,822 |
|
Net income (loss) and
comprehensive income (loss) |
$ |
(73,603 |
) |
|
$ |
42,707 |
|
|
|
|
|
Net income (loss) per share,
basic |
$ |
(0.47 |
) |
|
$ |
0.28 |
|
Weighted average number of
common shares outstanding, basic |
|
155,626,977 |
|
|
|
151,648,439 |
|
Net loss per share,
diluted |
$ |
(0.47 |
) |
|
$ |
(0.16 |
) |
Weighted average number of
common shares outstanding, diluted |
|
155,626,977 |
|
|
|
153,338,462 |
|
Enovix Corporation |
Condensed Consolidated Statements of Cash
Flows |
(Unaudited) |
(In Thousands) |
|
|
|
Quarters Ended |
|
April 2, 2023 |
|
April 3, 2022 |
Cash flows from
operating activities: |
|
|
|
Net income (loss) |
$ |
(73,603 |
) |
|
$ |
42,707 |
|
Adjustments to reconcile net
income (loss) to net cash used in operating activities |
|
|
|
Depreciation |
|
3,455 |
|
|
|
314 |
|
Amortization of right-of-use assets |
|
143 |
|
|
|
134 |
|
Stock-based compensation |
|
29,157 |
|
|
|
5,238 |
|
Changes in fair value of convertible preferred stock warrants and
common stock warrants |
|
12,840 |
|
|
|
(67,800 |
) |
Changes in operating assets and liabilities: |
|
|
|
Accounts receivable |
|
149 |
|
|
|
— |
|
Inventory |
|
(181 |
) |
|
|
— |
|
Prepaid expenses and other assets |
|
364 |
|
|
|
(51 |
) |
Deferred contract costs |
|
— |
|
|
|
8 |
|
Accounts payable |
|
(1,792 |
) |
|
|
(959 |
) |
Accrued expenses and compensation |
|
3,858 |
|
|
|
555 |
|
Other liabilities |
|
(1 |
) |
|
|
165 |
|
Net cash used in operating
activities |
|
(25,611 |
) |
|
|
(19,689 |
) |
Cash flows from
investing activities: |
|
|
|
Purchase of property and
equipment |
|
(3,032 |
) |
|
|
(10,451 |
) |
Net cash used in investing
activities |
|
(3,032 |
) |
|
|
(10,451 |
) |
Cash flows from
financing activities: |
|
|
|
Proceeds from exercise of
common stock warrants, net |
|
— |
|
|
|
52,828 |
|
Payroll tax payments for
shares withheld upon vesting of RSUs |
|
(777 |
) |
|
|
— |
|
Proceeds from the exercise of
stock options |
|
329 |
|
|
|
200 |
|
Repurchase of unvested
restricted common stock |
|
(9 |
) |
|
|
(3 |
) |
Net cash provided by (used in)
financing activities |
|
(457 |
) |
|
|
53,025 |
|
Change in cash, cash
equivalents, and restricted cash |
|
(29,100 |
) |
|
|
22,885 |
|
Cash and cash equivalents and
restricted cash, beginning of period |
|
322,976 |
|
|
|
385,418 |
|
Cash and cash equivalents, and
restricted cash, end of period |
$ |
293,876 |
|
|
$ |
408,303 |
|
Net Loss to Adjusted EBITDA
While we prepare our consolidated financial
statements in accordance with GAAP, we also utilize and present
certain financial measures that are not based on GAAP. We refer to
these financial measures as “Non-GAAP” financial measures. In
addition to our financial results determined in accordance with
GAAP, we believe that EBITDA and Adjusted EBITDA are useful
measures in evaluating its financial and operational performance
distinct and apart from financing costs, certain non-cash expenses
and non-operational expenses.
These Non-GAAP financial measures should be
considered in addition to results prepared in accordance with GAAP
but should not be considered a substitute for or superior to GAAP.
We endeavor to compensate for the limitation of the Non-GAAP
financial measures presented by also providing the most directly
comparable GAAP measures.
We use Non-GAAP financial information to
evaluate our ongoing operations and for internal planning,
budgeting and forecasting purposes. We believe that Non-GAAP
financial information, when taken collectively, may be helpful to
investors in assessing its operating performance and comparing its
performance with competitors and other comparable companies. You
should review the reconciliations below but not rely on any single
financial measure to evaluate our business.
“EBITDA” is defined as earnings (net loss)
adjusted for interest expense; income taxes; depreciation expense,
and amortization expense. “Adjusted EBITDA” includes additional
adjustments to EBITDA such as stock-based compensation expense;
change in fair value of convertible preferred stock warrants,
common stock warrants and convertible promissory notes; impairment
of equipment and other special items as determined by management
which it does not believe to be indicative of its underlying
business trends.
Below is a reconciliation of net loss on a GAAP
basis to the Non-GAAP EBITDA and Adjusted EBITDA financial measures
for the periods presented below (in thousands):
|
Quarters Ended |
|
April 2, 2023 |
|
April 3, 2022 |
Net income (loss) |
$ |
(73,603 |
) |
|
$ |
42,707 |
|
Depreciation and amortization |
|
3,598 |
|
|
|
448 |
|
EBITDA |
|
(70,005 |
) |
|
|
43,155 |
|
Stock-based compensation expense |
|
29,157 |
|
|
|
5,238 |
|
Change in fair value of convertible preferred stock warrants and
common stock warrants |
|
12,840 |
|
|
|
(67,800 |
) |
Adjusted EBITDA |
$ |
(28,008 |
) |
|
$ |
(19,407 |
) |
Free Cash Flow
We define “Free Cash Flow” as (i) net cash from
operating activities less (ii) capital expenditures, net of
proceeds from disposals of property and equipment, all of which are
derived from our Consolidated Statements of Cash Flow. The
presentation of non-GAAP Free Cash Flow is not intended as an
alternative measure of cash flows from operations, as determined in
accordance with GAAP. We believe that this financial measure is
useful to investors because it provides investors to view our
performance using the same tool that we use to gauge our progress
in achieving our goals and it is an indication of cash flow that
may be available to fund investments in future growth initiatives.
Below is a reconciliation of net cash used in operating activities
to the Free Cash Flow financial measures for the periods presented
below (in thousands):
|
Quarters Ended |
|
April 2, 2023 |
|
April 3, 2022 |
Net cash used in operating activities |
$ |
(25,611 |
) |
|
$ |
(19,689 |
) |
Capital expenditures |
|
(3,032 |
) |
|
|
(10,451 |
) |
Free Cash Flow |
$ |
(28,643 |
) |
|
$ |
(30,140 |
) |
Other
Non-GAAP Financial Measures Reconciliation |
(In Thousands,
Except Share and per Share Amounts) |
|
|
|
Quarters Ended |
|
April 2, 2023 |
|
April 3, 2022 |
GAAP cost of revenue |
$ |
12,248 |
|
|
$ |
515 |
|
Stock-based compensation
expense |
|
(951 |
) |
|
|
— |
|
Non-GAAP cost of
revenue |
$ |
11,297 |
|
|
$ |
515 |
|
|
|
|
|
GAAP gross
margin |
$ |
(12,227 |
) |
|
$ |
(515 |
) |
Stock-based compensation
expense |
|
951 |
|
|
|
— |
|
Non-GAAP gross
margin |
$ |
(11,276 |
) |
|
$ |
(515 |
) |
|
|
|
|
GAAP research and
development (R&D) expense |
$ |
23,749 |
|
|
$ |
12,731 |
|
Stock-based compensation
expense |
|
(11,667 |
) |
|
|
(2,512 |
) |
Non-GAAP R&D
expense |
$ |
12,082 |
|
|
$ |
10,219 |
|
|
|
|
|
GAAP selling, general
and administrative (SG&A) expense |
$ |
27,274 |
|
|
$ |
11,869 |
|
Stock-based compensation
expense |
|
(16,539 |
) |
|
|
(2,726 |
) |
Non-GAAP SG&A
expense |
$ |
10,735 |
|
|
$ |
9,143 |
|
|
|
|
|
GAAP operating
expenses |
$ |
51,023 |
|
|
$ |
24,600 |
|
Stock-based compensation
expense included in R&D expense |
|
(11,667 |
) |
|
|
(2,512 |
) |
Stock-based compensation
expense included in SG&A expense |
|
(16,539 |
) |
|
|
(2,726 |
) |
Non-GAAP operating
expenses |
$ |
22,817 |
|
|
$ |
19,362 |
|
|
|
|
|
GAAP loss from
operations |
$ |
(63,250 |
) |
|
$ |
(25,115 |
) |
Stock-based compensation
expense |
|
29,157 |
|
|
|
5,238 |
|
Non-GAAP loss from
operations |
$ |
(34,093 |
) |
|
$ |
(19,877 |
) |
|
|
|
|
GAAP net income
(loss) |
$ |
(73,603 |
) |
|
$ |
42,707 |
|
Stock-based compensation
expense |
|
29,157 |
|
|
|
5,238 |
|
Change in fair value of
convertible preferred stock warrants and common stock warrants |
|
12,840 |
|
|
|
(67,800 |
) |
Non-GAAP net
loss |
$ |
(31,606 |
) |
|
$ |
(19,855 |
) |
|
|
|
|
GAAP net income (loss)
per share, basic |
$ |
(0.47 |
) |
|
$ |
0.28 |
|
GAAP weighted average number
of common shares outstanding, basic |
|
155,626,977 |
|
|
|
151,648,439 |
|
|
|
|
|
GAAP net loss per
share, diluted |
$ |
(0.47 |
) |
|
$ |
(0.16 |
) |
GAAP weighted average number
of common shares outstanding, diluted |
|
155,626,977 |
|
|
|
153,338,462 |
|
|
|
|
|
Non-GAAP net loss per
share, basic |
$ |
(0.20 |
) |
|
$ |
(0.13 |
) |
GAAP weighted average number
of common shares outstanding, basic |
|
155,626,977 |
|
|
|
151,648,439 |
|
|
|
|
|
Non-GAAP net loss per
share, diluted |
$ |
(0.20 |
) |
|
$ |
(0.13 |
) |
GAAP weighted average number
of common shares outstanding, diluted |
|
155,626,977 |
|
|
|
153,338,462 |
|
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