Amprius Technologies Inc

Amprius Technologies, Inc. (NYSE: AMPX) is a manufacturer of high-energy and high-power lithium-ion batteries. The Company's commercially available SiMaxx batteries deliver up to 450 Wh/kg and 1,150 Wh/L, with third party validation of 500Wh/kg and 1,300 Wh/L. Its batteries are primarily used for existing and emerging aviation applications, including unmanned aerial systems, such as drones and high-altitude pseudo satellites. It offers high performance silicon anode batteries under the product platforms, such as SiMaxx and SiCore.

Recent Business and Financial Updates

• Impressive Revenue Growth: Amprius wrapped up the first quarter with a standout performance, achieving a total revenue of USD 2.3 million from product sales alone. This marks a staggering 397% increase year-over-year and a 147% sequential growth. The impressive rise is driven by shipments to 82 customers, doubling the customer base from the previous quarter. This growth underscores Amprius’s successful strategy in acquiring new clients and expanding its market reach, with just three customers contributing over 10% of the total revenue. Development services revenue continues to be fueled by large, one-time projects.
• Improved Profitability Metrics: The company’s gross margin for the quarter was negative 190%, a significant improvement from negative 518% a year ago and negative 98% in the previous quarter. This positive shift is attributed to fluctuations in revenue mix between products and services, alongside anticipated factory start-up costs for the Colorado facility, expected to extend through 2024. Operating expenses stood at USD 5.9 million, reflecting a 6% decrease from the previous year due to reduced administrative costs, although this was offset by higher investments in research and development and sales.
• Stable Net Loss and Growing Workforce: Amprius reported a GAAP net loss of USD 9.9 million for the first quarter, translating to USD 0.11 per share, consistent with the prior year. As of March 31, 2024, the company had 81 full-time employees, mainly based in Fremont, California—up from 80 in the previous quarter and 65 in the same period last year. Share-based compensation increased to USD 1.2 million from USD 0.7 million a year earlier. The company had 92.3 million shares outstanding as of March 31, 2024.
• Strong Cash Position and Strategic Investments: Ending the first quarter with USD 39.0 million in cash and no debt, Amprius demonstrated a solid financial position. Key cash flows included USD (9.8) million used in operating activities, USD (3.1) million allocated for expanding the 2 MWh production line in Fremont, and USD (0.8) million for production equipment progress payments. Positive cash inflow of USD 8.2 million was generated from the ATM facility. Looking ahead, the company plans to invest an additional USD 1 to USD 2 million in equipment for the 2 MWh line, including tools for the cathode line expected to launch by the fourth quarter. Additionally, Amprius is finalizing the Colorado facility's design and will announce construction cost forecasts upon completion. The company raised USD 8.8 million through its ATM facility in the first quarter and an additional USD 2.1 million as of May 3, 2024.

Technical Observation (on the daily chart):

The Relative Strength Index (RSI) over a 14-day period stands at a value of 46.92, upward trending, with expectations of a consolidation. Additionally, the stock's current positioning is between both the 50-period SMA and 200-period EMA, which may serve as dynamic short to medium-term support and resistance levels respectively.

As per the above-mentioned price action, recent key business and financial updates, momentum in the stock over the last month, and technical indicators analysis, a ‘Watch’ rating has been given to Amprius Technologies, Inc. (NYSE: AMPX) at the current market price of USD 1.29 as of July 19, 2024, at 09:50 am PDT. 

Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario. 

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.

Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc. 

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is July 19, 2024. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level that the stock is expected to reach as per the relative valuation method and or technical analysis taking into consideration both short-term and long-term scenarios.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the New York Stock Exchange (NYSE), NASDAQ Capital Markets (NASDAQ), and or REFINITIV. Typically, all sources (NYSE, NASDAQ, or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.