Enovix Corporation

Thank you for standing by and welcome to the Enovix Corporation fourth quarter and full year 2023 earnings conference call. Currently, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. As a reminder, today's program will be recorded. And now, I'd like to introduce your host for today's program, Charlie Anderson, Senior Vice President of Investor Relations and Corporate Strategy. Please go ahead, sir.

Thank you. Hello, everyone, and welcome to Inovix Corporation's fourth quarter and full year 2023 Financial Results Conference Call. With us today are President and Chief Executive Officer Dr. Raj Tuluri, Chief Financial Officer Farhan Ahmad, and Chief Operating Officer Ajay Marathe. Raj and Farhan will provide an overview, and then we'll take your questions. After the Q&A session, we'll conclude our call. Before we continue, let me kindly remind you that we released our fourth quarter 2023 shareholder letter after the market closed today. It's available on our website at ir.inovix.com. A replay of this video call will be available later today on the Investor Relations page of our website. Please note that the shareholder letter, press release, and this conference call all contain forward-looking statements that are subject to risks and uncertainties. These forward-looking statements are based on current expectations and may differ materially from actual future events or results due to a variety of factors. For discussion of factors that could affect our future financial results in business, please refer to the disclosure in today's shareholder letter and our filings with the Securities and Exchange Commission. All our statements are made as of today, February 20, 2024, based on information currently available to us. We can give no assurance that these statements will prove to be correct, and we do not intend and undertake no duty to update these statements except as required by law. During this call, we will also discuss non-GAAP financial measures. which are not prepared in accordance with generally accepted accounting principles. You can find a reconciliation of the gap financial measures to the non-gap financial measures in our shareholder letter, which is posted on the investor relations page of our website. I will now turn the call over to Raj to begin. Raj?

Thank you, Charlie, and thanks to everyone for joining us today. I'm going to kick off with a few high-level remarks, and then we're actually going to show you some new video of our Fab 2 featuring Ajay. Ajay is actually now in Malaysia, and he's going to show you some update on manufacturing there. After that, Farhan will cover some financials and the outlook before closing, and then look forward to your questions. Okay, we had a strong finish to 2023, and now we've laid the groundwork on how to scale up in 2024. First, we reported record revenue of $7.4 million in Q4, well above our expectations. Secondly, we are in the process of completing our factory acceptance testing, and a good amount of our Gen 2 equipment is now in Fab 2 in Malaysia ready to produce the first batteries in April. It's very exciting to see that progress. Third, we made significant progress with our customers, both in smartphones and in EVs. Last quarter we hosted the executive management teams from two of the top smart smartphone OEMs from China at our Fremont headquarters and very good discussions on how to collaborate on making batteries for their phones. Additionally, we entered into a development agreement with a leading automaker to validate the advantages of the InnoXcel architecture for an EV battery. Now this significantly increases the addressable market for InnoX technology, and we have a strong pipeline of additional opportunities in this space. And last, we've gained significant confidence in reaching the thousand cycles on a smartphone class battery. And we look forward to sampling it next quarter. As I look back at our accomplishments last year, which were substantial, we began the year as a new management team in operating at an expensive, low yielding california factory with the product portfolio that frankly was not very well aligned to the key large customers and the end markets that we wanted to go after now in contrast to that we exited this year with a manufacturing base in malaysia ready to produce industry leading batteries a seasoned team in korea that has shipped batteries over 20 years that we acquired and close alignment with our customers that led us to gain a really in-depth knowledge and detailed product specifications that is helping us build category leading products targeted at the largest portion of the market, which is the smartphones. Now, we are engaged effectively with the world's largest smartphone OEMs at various levels. These companies are eager to harness our architecture to keep up with the demand for more and more power hungry applications by this AI megatrend. I'll show some data and touch upon this in a minute. But first, let's take a look at our goals. What we need to do this year is to position ourselves for the large influx in revenue with smartphone launches is very simple. First, we need to demonstrate high volume manufacturing on our Gen 2 equipment in our Fab 2 in Malaysia. Now, I know seeing is believing, so we're going to show you a video of the Fab2 featuring Ajay and that we just made in the last couple of days that speaks to our progress. And of course, Ajay will join us for Q&A from Malaysia. I think it's pretty early for him there, but he's online there standing by. So, operator, go ahead and let's roll the video.