Enovix (ENVX) Q4 Shows Story On Track
Shares of Enovix (ENVX) are trading down today following the Q4 report and conference call last night, most likely because there was nothing major revealed during the call (nothing huge was expected). That said, there were a few incremental positives and the story remains on track.
First and foremost, the Routejade business added more revenue than expected (Enovix reported $7.4 million versus guidance of $3 - $4 million) in the quarter and it sounds like there may be some cross-selling and product development opportunities there that were underappreciated. Management also talked about an EV battery development agreement with a “leading automaker” which, while far from a revenue-generating deal, helps move the EV part of the Enovix story forward.
Bigger picture, management continues to point toward sampling from the Agility line in the second quarter followed by high-volume sampling soon after. This is key to get the cash flowing in and to support the ramp to meaningful production and significant customer deals in 2025 and beyond.
For a look at the progress at its Fab-2 facility in Malaysia, check out this video, which management aired during the conference call. No change to the rating. BUY
