Bright Machines SPAC
Attractive Unit Economics
Forecasted Standalone Software Economics(¹)
(s in millions)
Gross
Margin %
$6
69%
2022E
Bright
Machines.
$4
71%
$20
2023E
Software Revenue
72%
$82
$59
3024E
Software Gross Profit
THE A
73%
$243
$178
2025E
Forecasted Microfactory Economics(¹)
(s in millions)
Gross
Margin %
2020A
$36
2021E
9%
$64
$6
Although there will be an overall reduction in revenue related to legacy automation testing professional services and leasing of non-proprietary used manufacturing
equipment under the MSSA, this amendment also includes a firm commitment to purchase so milion per year through May 20ay of the Company's proprietary
products and services. The newestimated lifetime value of the amended MSSA will be approximately sz40 million Nether the used manufacturing equipment
leasing nor automation testing and engineering professional services is core to the Bright Machines business
Figures exclude revenue and gross profit from Flex service contracts.
2022E
Microfactory Revenue
20%
$130
$27
2023E
29%
$234
$67
2024E
Microfactory Gross Profit
Source Bright Machines management projections
Note: In 2018, Bright Machines entered into a 5-year Master Services Subscription Agreement (the "MSSA") with Flex for services ranging from hardware leasing to engineering and testing services as well as product purchases. The estimated
lifetime value of that contract was approximately $350 million. Given that business conditions have changed due to the pandemic and that Bright Machines has focused on building software-defined assembly lines and manufacturing
software, Bright Machines and Flex have agreed to amend the terms of the MSSA.
The agreement will result in
Bright Machines exiting the used SMT hardware leasing business. Flex will make an upfront cash payment of $8.2 million for the sale of such hardware assets mostly based in China.
-Flex will reduce its commitment to purchase professional automation services by a total of approximately $120 million over the remaining term of the MSSA.
- Bright Machines will retire approximately go million shares of their 4.8 million shares) of Bright Machines common stock currently owned by flex, which is proportionate to Flex's revised commitments under the MSSA.
$483
39%
$188
2025E
Ⓒ2021 Bright Machines, Inc.
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