Enovix Corporation

Thank you for standing by and welcome to the Inovix Corporation First Quarter 2025 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 programme will be recorded. And now, I'd like to introduce your host for today's programme, Robert Leahy, Head of Investor Relations. Please go ahead, sir.

Thank you. Hello, everyone, and welcome to Inovix Corporation's first quarter 2025 financial results conference call. With us today, our president and chief executive officer, Dr. Raj Delori, chief financial officer, Ryan Benton, chief accounting officer, Christina Trung, and chief operating officer, Ajay Marathi. Raj and Ryan 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 first quarter 2025 shareholder letter after the market closed today. It's available on our website at ir.inovix.com. A replay of this video 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 a discussion of those factors that could affect our future financial results in business, please refer to the disclosures in today's shareholder letter and our filings with the Securities and Exchange Commission. All of our statements are made as of today, April 30th, 2025, 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 GAAP financial measures to non-GAAP financial measures in our shareholder letter, which is posted on the investor relations page of our website.

Okay. Thank you, Rob. And thanks to everyone for joining us for our format today. I'll start with a recap of our recent results and the recent milestones, and then I'll turn it over to our new CFO, Ryan Benton, here with me for a review of our financials and outlook. I'll have a few closing comments, and then we'll take your questions. We feel great about our start to 2025. First, we are pleased to have Ryan Benton as our new CFO. Ryan brings deep financial leadership and experience, and we're excited to have him on board. Second, we exceeded the midpoint of our Q1 revenue guidance, delivering $5.1 million in revenue and secured new defense bookings that support our growth into the second quarter. Third, we commenced the development of a custom smartphone cell with the exact dimensions required by our lead customer for their commercial product. Fourth, we made great strides in our operations. Fab 2 in Malaysia accelerated progress towards mass production readiness. We secured ISO 9001 certification, completed the first formal customer audit, and made critical yield improvements. Fifth, in Korea, we made a strategic acquisition that expanded our manufacturing footprint. This acquisition will provide critical additional coding capacity needed in support of our FAB2, as well as our local defense customers. I'd like to briefly address recent developments in global trade environment. Like many global companies, we're following these developments closely. Our assessment is that there's no material impact to our near-term outlook, as most of our planned near-term sales are concentrated within Asia. We also see strategic opportunities, though, as some of our target customers have initiated efforts to diversify supply chains towards Malaysia and South Korea, where our factories are. Now, for a few more details on the acquisition. On April 1st, we completed the acquisition of additional manufacturing assets adjacent to our existing South Korea facilities. This includes equipment that will augment the coding needed for our FAB2 in Malaysia as we ramp, as well as additional production for our Korean military programs and other industrial applications that we are targeting. The facility also offers significant room for expansion, enhancing our strategic positioning as the global supply chains continue to evolve rapidly. In smartphones, we reached a critical inflection point towards launching our first product in the market. Last week, we finalized an agreement with our lead customer on the electrochemistry we will deploy in the custom cell we're building for the upcoming product launch this year. We're now manufacturing custom cells for them to deliver qualification samples later this quarter to support integration and testing this summer. Our benchmarking confirms that we are meeting all key technical requirements and the customer feedback has been very positive and constructive. They have been a great partner to us. We appreciate the attention and resources that they, as well as many of our other customers, have dedicated to help us pull forward. Now, we are also actively engaged with other smartphone OEMs to ensure a rapid ramp once we establish in the market. This progress strengthens not only our smartphone initiative, but also bolsters and accelerates our broader communications commercialization roadmap. FAB2 in Malaysia is well positioned for scale, following ISO certification and our first completed customer audit. While we continue to make enhancements on yield and other operational metrics that will be critical once we are in mass production, we feel good about the state of our manufacturing readiness. And our focus this quarter is weighted heavily towards supporting custom cell developments for our marquee customers to solidify the demand in 2026. Our focus on smartphones is strategic and deliberate. This market highly values energy density, especially given the growing demands of AI-enabled features and applications such as intelligent cameras and the proliferation of LLMs. The smartphone market represents the fastest path to fully utilizing FAB2 while maintaining the opportunity to price on value. Meeting the stringent requirements of smartphones facilitates other business opportunities in adjacent markets. In Q1, we delivered our first Smart Eyewear customer samples. We're also accelerating our expansion into handheld computer and scanner segments, where we've been engaged with the market leader in retail and logistics. Recent tariff developments have created new opportunities in this segment, prompting increased urgency and deeper collaboration from them. Finally, on the product front, I'm pleased to report that we recently completed benchmarking analysis of premium smartphone batteries launched in 2024 that indicates we hold a material lead in energy density and we expect it to grow considerably with future generations. Last year, several conventional architecture battery manufacturers developed a technique called silicon doping, where a small amount of silicon is added to graphite anodes to increase the battery capacity by a modest amount. Based on our firsthand experience and feedback from our smartphone customers, we believe that our competition will be capped from achieving meaningful energy density increments, enhancements using these techniques. within their current architecture due to swelling and other trade-offs they'll have to make. Our internal benchmarking analysis of premium smartphone batteries launched in 2024 indicates that InnoVex's unique architecture with 100% active silicon anode will hold material lead in energy density, and we expect it to grow considerably with future generations. Our customers also validated that our architectural approach offers significant gains for foreseeable future by leveraging the full potential of 100% active silicon anodes. With that, I'll turn it over to Ryan for the financials, right? Thanks, Raj.