Q1’24 revenue of $14.4 million near high end of
guidance range
Everspin Technologies, Inc. (NASDAQ: MRAM), the world’s leading
developer and manufacturer of magnetoresistive random access memory
(MRAM) persistent memory solutions, today announced preliminary
unaudited financial results for the first quarter ended March 31,
2024.
“Our first quarter revenue came in near the high end of our
expectations while our GAAP net income came in below our
expectations,” said Sanjeev Aggarwal, President and Chief Executive
Officer. "We are very pleased with some of our recent wins, most
notably with IBM for our PERSYST STT-MRAM solution, which will be
used in their FCM4 FlashCore Module, and we are entering into an
agreement with a commercial customer to provide foundry services.
Looking ahead, we expect our Toggle and STT-MRAM design wins to
ramp in the second half of 2024.”
First Quarter 2024 Results
- Total revenue of $14.4 million, compared to $14.8 million in
the first quarter of 2023.
- MRAM product sales, which includes both Toggle and STT-MRAM
revenue, of $10.9 million, compared to $13.8 million in the first
quarter of 2023.
- Licensing, royalty, patent, and other revenue of $3.6 million,
compared to $1.1 million in the first quarter of 2023.
- Gross margin of 56.5%, compared to 56.8% in the first quarter
of 2023.
- GAAP operating expenses of $8.8 million, compared to $7.7
million in the first quarter of 2023.
- GAAP net loss of $0.2 million, or $(0.01) per diluted share,
compared to net income of $0.8 million, or $0.04 per diluted share,
in the first quarter of 2023.
- Adjusted EBITDA of $1.9 million, compared to $2.3 million in
the first quarter of 2023.
“We are pleased to end the quarter with a strong balance sheet
and solid gross margin,” said Anuj Aggarwal, Everspin’s Chief
Financial Officer. “We are encouraged by the traction our products
have had, as evidenced by our recent design wins, and we remain
confident in our ability to scale the business and convert those
design wins to revenue.”
Business Outlook
For the second quarter 2024, Everspin expects total revenue in a
range of $10.0 million to $11.0 million and GAAP net loss per basic
share to be between $(0.14) and ($0.09).
This outlook is dependent on Everspin's current expectations,
which may be impacted by, among other things, evolving external
conditions, such as the military conflict in Ukraine, instability
in the Middle East, recent market volatility, semiconductor
downturn and the other risk factors described in Everspin's filings
with the Securities and Exchange Commission (the "SEC"), including
its Annual Report on Form 10-K for the fiscal year ended December
31, 2023, its Quarterly Reports on Form 10-Q filed with the SEC
during 2024, as well as in its subsequent filings with the SEC.
Use of Non-GAAP Financial Measures
Everspin supplements the reporting of its financial information
determined under generally accepted accounting principles in the
United States of America (GAAP) with Adjusted EBITDA, which is a
non-GAAP financial measure. Everspin defines Adjusted EBITDA as net
income or loss adjusted for interest expense, taxes, depreciation
and amortization, stock-based compensation expense, and
restructuring costs (if any).
Everspin’s management and board of directors use Adjusted EBITDA
to understand and evaluate its operating performance and trends, to
prepare and approve its annual budget and to develop short-term and
long-term operating and financing plans. Accordingly, Everspin
believes that Adjusted EBITDA provides useful information for
investors in understanding and evaluating its operating results in
the same manner as its management and board of directors. Adjusted
EBITDA is a non-GAAP financial measure and should be considered in
addition to, not as superior to, or as a substitute for, net income
or loss reported in accordance with GAAP. Moreover, other companies
may define Adjusted EBITDA differently, which limits the usefulness
of this measure for comparisons with such other companies. Everspin
encourages investors to review its financial statements and
publicly-filed reports in their entirety and not to rely on any
single financial measure.
Conference Call
Everspin will host a conference call for analysts and investors
on Wednesday, May 1, 2024, at 5:00 p.m. Eastern Time.
Dial-in details: To access the call by phone, please go to this
link and you will be provided with dial-in details. To avoid
delays, we encourage participants to dial into the conference call
fifteen minutes ahead of the scheduled start time.
The live webcast of the call will be accessible on the Company’s
website at investor.everspin.com. Approximately two hours after
conclusion of the live event, an archived webcast of the conference
call will be accessible from the Investor Relations section of the
Company’s website for twelve months.
About Everspin Technologies
Everspin Technologies, Inc. is the world’s leading provider of
magnetoresistive RAM (MRAM). Everspin MRAM delivers the industry’s
most robust, highest-performance non-volatile memory for industrial
IoT, data centers and other mission-critical applications where
data persistence is paramount. Headquartered in Chandler, Arizona,
Everspin provides commercially available MRAM solutions to a large
and diverse customer base. For more information, visit
www.everspin.com. NASDAQ: MRAM.
Cautionary Statement Regarding Forward-Looking
Statements
This press release contains forward-looking statements regarding
future results that involve risks and uncertainties that could
cause actual results or events to differ materially from the
expectations disclosed in the forward-looking statements,
including, but not limited to the statements made under the caption
“Business Outlook.” Forward-looking statements are identified by
words such as “expects” or similar expressions. These include, but
are not limited to, Everspin’s future financial performance,
including the outlook for second quarter 2024 results. Actual
results could differ materially from these forward-looking
statements as a result of certain risks and uncertainties,
including, without limitation, the risks set forth under the
caption “Risk Factors” in Everspin’s Annual Report on Form 10-K for
the year ended December 31, 2023 filed with the SEC on February 29,
2024, and its Quarterly Reports on Form 10-Q filed with the SEC
during 2024, as well as in its subsequent filings with the SEC. Any
forward-looking statements made by Everspin in this press release
speak only as of the date on which they are made and subsequent
events may cause these expectations to change. Everspin disclaims
any obligations to update or alter these forward-looking statements
in the future, whether as a result of new information, future
events or otherwise, except as required by law.
EVERSPIN TECHNOLOGIES,
INC.
Condensed Balance
Sheets
(In thousands, except share
and per share amounts)
(Unaudited)
March 31,
December 31,
2024
2023
Assets
Current assets:
Cash and cash equivalents
$
34,801
$
36,946
Accounts receivable, net
13,078
11,554
Inventory
8,053
8,391
Prepaid expenses and other current
assets
450
988
Total current assets
56,382
57,879
Property and equipment, net
4,078
3,717
Right-of-use assets
5,494
5,495
Other assets
212
212
Total assets
$
66,166
$
67,303
Liabilities and Stockholders’
Equity
Current liabilities:
Accounts payable
$
2,434
$
2,916
Accrued liabilities
2,122
4,336
Deferred revenue
81
336
Lease liabilities, current portion
1,259
1,190
Total current liabilities
5,896
8,778
Lease liabilities, net of current
portion
4,322
4,390
Long-term income tax liability
162
214
Total liabilities
$
10,380
$
13,382
Commitments and contingencies (Note 5)
Stockholders’ equity:
Preferred stock, $0.0001 par value per
share; 5,000,000 shares authorized; no shares issued and
outstanding as of March 31, 2024 and December 31, 2023,
respectively
—
—
Common stock, $0.0001 par value per share;
100,000,000 shares authorized; 21,406,511 and 21,080,472 shares
issued and outstanding as of March 31, 2024 and December 31, 2023,
respectively
2
2
Additional paid-in capital
193,636
191,569
Accumulated deficit
(137,852
)
(137,650
)
Total stockholders’ equity
55,786
53,921
Total liabilities and stockholders’
equity
$
66,166
$
67,303
EVERSPIN TECHNOLOGIES,
INC.
Condensed Statements of
Operations and Comprehensive (Loss) Income
(In thousands, except share
and per share amounts)
(Unaudited)
Three Months Ended March
31,
2024
2023
Product sales
$
10,860
$
13,777
Licensing, royalty, patent, and other
revenue
3,570
1,069
Total revenue
14,430
14,846
Cost of product sales
6,002
6,123
Cost of licensing, royalty, patent, and
other revenue
268
293
Total cost of sales
6,270
6,416
Gross profit
8,160
8,430
Operating expenses:1
Research and development
3,418
3,199
General and administrative
4,036
3,220
Sales and marketing
1,306
1,315
Total operating expenses
8,760
7,734
(Loss) income from operations
(600
)
696
Interest expense
—
(63
)
Other income, net
398
128
Net (loss) income and comprehensive
income
$
(202
)
$
761
Net (loss) income per common share:
Basic
$
(0.01
)
$
0.04
Diluted
$
(0.01
)
$
0.04
Weighted average shares of common stock
outstanding:
Basic
21,252,359
20,450,994
Diluted
21,252,359
20,832,074
1Operating expenses include stock-based
compensation as follows:
Research and development
$
580
$
446
General and administrative
980
611
Sales and marketing
154
103
Total stock-based compensation
$
1,714
$
1,160
EVERSPIN TECHNOLOGIES,
INC.
Condensed Statement of Cash
Flows
(In thousands)
(Unaudited)
Three Months Ended March
31,
2024
2023
Cash flows from operating
activities
Net (loss) income
$
(202
)
$
761
Adjustments to reconcile net (loss) income
to net cash provided by operating activities:
Depreciation and amortization
398
333
Stock-based compensation
1,714
1,160
Loss on prepayment and termination of
credit facility
—
170
Non-cash warrant revaluation
—
23
Non-cash interest expense
—
26
Changes in operating assets and
liabilities:
Accounts receivable
(1,524
)
(544
)
Inventory
338
404
Prepaid expenses and other current
assets
538
119
Accounts payable
(36
)
125
Accrued liabilities
(2,266
)
(1,457
)
Deferred revenue
(255
)
77
Lease liabilities, net
2
7
Net cash (used in) provided by operating
activities
(1,293
)
1,204
Cash flows from investing
activities
Purchases of property and equipment
(1,205
)
(1,011
)
Net cash used in investing activities
(1,205
)
(1,011
)
Cash flows from financing
activities
Payments on long-term debt
—
(2,790
)
Proceeds from exercise of stock
options
353
13
Net cash provided by (used in) financing
activities
353
(2,777
)
Net decrease in cash and cash
equivalents
(2,145
)
(2,584
)
Cash and cash equivalents at beginning of
period
36,946
26,795
Cash and cash equivalents at end of
period
$
34,801
$
24,211
Supplementary cash flow
information:
Interest paid
$
—
$
37
Operating cash flows paid for operating
leases
$
349
$
375
Financing cash flows paid for finance
leases
$
8
$
3
Non-cash investing and financing
activities:
Right-of-use assets obtained in exchange
for finance lease liabilities
$
297
$
—
EVERSPIN TECHNOLOGIES, INC.
Reconciliation of Adjusted EBITDA (In thousands)
(Unaudited)
Three Months Ended March
31,
2024
2023
Adjusted EBITDA reconciliation:
Net (loss) income
$
(202
)
$
761
Depreciation and amortization
398
333
Stock-based compensation expense
1,714
1,160
Interest expense
—
63
Adjusted EBITDA
$
1,910
$
2,317
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240501017290/en/
Investor Relations: Monica Gould The Blueshirt Group T:
212-871-3927 ir@everspin.com
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