ENVX - Why Enovix Stock Popped Today
2023-11-08 16:13:37 ET
Shares of Enovix (NASDAQ: ENVX) were up by 14.8% as of the close of trading Wednesday after the battery technology company announced stronger-than-expected quarterly results Tuesday afternoon.
For its third quarter, Enovix had revenue of $200,000, up from nominal revenue in the year-ago period. Revenues were primarily from the delivery of custom cells under its U.S. Army program using its BrakeFlow technology. That translated into an adjusted ( non-GAAP ) net loss of $30.1 million, or $0.19 per share, compared to a loss of $0.15 per share in last year's third quarter. Analysts, on average, were expecting a net loss of $0.23 per share on revenue closer to $131,000.
More importantly for this early-stage business, Enovix made significant strides toward commercialization of its technology. It commenced factory acceptance testing (FAT) of Gen2 manufacturing equipment in August, and expects to complete that testing for all four zones of its full production line by January. Enovix also began transitioning away from 24/7 manufacturing in its California facility and toward R&D and customer qualification from the site, reducing its cash burn by $22 million annually.
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Why Enovix Stock Popped Today