Enovix (ENVX) Reports
Enovix (ENVX) reported Q1 results yesterday after the close that met revenue expectations with $5.1 million. Operating expenses rose in the quarter and will continue to do so into Q2 to support the ramp up to mass production and to prepare for higher production capacity at the newly acquired South Korean battery manufacturing plant.
Big picture, Enovix remains on track to launch with its first smartphone customer by the end of this year with first purchase order expected in the September to November time frame. Quantities TBD. Sounds like there is a second smartphone customer in the pipeline as well. And it sounds as though both are Asia-based customers.
Management also talked about other market opportunities, including coating capacity and production for the Korean defense market, which could be supported by the newly acquired SolarEdge facility.
Stating the obvious, this isn’t the best market to drum up support for a start-up hardware manufacturer with operations in Asia given all the noise around tariffs. And it may be that Enovix’s first customers will skew more toward Asia and less toward the U.S., at least until the company becomes more established. We will stick with ENVX and look to mass production ramp at the end of this year and into 2026 to get this stock moving again. But I won’t be recommending new positions until there’s more business and stock price momentum. HOLD
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