Enovix shares fall on Fab1 realignment

Enovix

03/10/2023 14:33

** Silicon battery company Enovix's  ENVX.O  shares down
about 14.4% at $10.10 premarket
    ** Company says began strategic realignment of Fab1 in
Fremont to refocus facility from manufacturing hub to center
focusing on new product development
    ** Also re-prioritized activities in Fab1 to focus on a
smaller group of very large customers who require custom cells
    ** Enovix says due to re-prioritized activities, additional
resources required to make custom batteries for U.S. Army, teams
directed during Q3 to reduce production of small, standard-sized
IoT and wearable cells out of Fab1
    ** Strategic shift resulted in production cut off at 24,000
small cell units, less than management's forecast of 36,000
    ** Realignment to result in workforce reduction at Fremont
of about 185 personnel, including 125 contractors
    ** ENVX sees restructuring to be completed during Q4 2023
and result in annualized savings of about $22 mln
    ** Sees restructuring charges of about $2.5 mln primarily in
Q3 2023
    ** As of last close, ENVX shares down 5.1% YTD

 (Reporting by Saikeerthi in Bengaluru)
 ((Saikeerthi@thomsonreuters.com))