Enovix Corp To Acquire RouteJade Inc Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: William Chapman Peterson - JPMorgan Chase & Co, Research Division - Analyst : I was hoping to ask a little bit more on the cathode side. You talked about improvements. And I would like to make sure is this both on the cathode and anode side? Is there material considerations where you see the improvements? I'm trying to understand, is this a unique process? Or is the equipment set unique? And I guess, secondarily, how much capacity can they truly support in terms of -- like when would you need to add more CapEx to the system?

Question: William Chapman Peterson - JPMorgan Chase & Co, Research Division - Analyst : Okay. And then the capacity it can support?

Question: William Chapman Peterson - JPMorgan Chase & Co, Research Division - Analyst : So that's going to lead into the second question. In terms of available space, how do you envision using their site long term? Is it mainly going to be for roll coating and packaging? Or is this even a potential site for even auto lines for your main product to support a local market? Just kind of what's the long-term view on this site for their sites?

Question: George Gianarikas - Canaccord Genuity Corp., Research Division - Analyst : Just a couple of quick questions on the financial impact. So first, you had -- I know this is before your time, but you did have some gross margin projections out there for the 2025 time frame. And they were in the 50% range plus. But to the extent you can share what the financial impact will be in the out years. What sort of percentage increase could we see in your margins based on you bringing this competence in-house?

Question: George Gianarikas - Canaccord Genuity Corp., Research Division - Analyst : Okay. And maybe just as a follow-on to that, you did say there's $18 million of revenue on a run rate basis in 2023. Is that something we should think about adding to our models in the out years, 2024, 2025, you'll continue to sell these cathodes out to the marketplace?

Question: William Chapman Peterson - JPMorgan Chase & Co, Research Division - Analyst : I just wanted to ask a little bit about how to think about OpEx, OpEx trajectory. So with 168 employees, which I guess is actually kind of flat or even down based off what the website said at [$175 million], what's the right way to think about OpEx run rate? And I just want to ask, I guess, for clarification, if it's -- is this business profitable today on an operating margin basis? Or is it actually still loss-making? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 20, 2023 / 9:00PM, ENVX.OQ - Enovix Corp To Acquire RouteJade Inc Call