MRAM Everspin Technologies Inc

Q2’24 revenue of $10.6 million in-line with guidance

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 second quarter ended June 30, 2024.

“Our second quarter revenue and GAAP net loss per basic share came in in-line with our guidance,” said Sanjeev Aggarwal, President and Chief Executive Officer. “Despite a slower start to the year, we continue to see a path towards a stronger second half supported by design wins with our PERSYST 4Mb to 128Mb STT-MRAM product family, especially in the European and Asia Pacific regions where we experienced our highest design activity.”

Second Quarter 2024 Results

• Total revenue of $10.6 million, compared to $15.7 million in the second quarter of 2023.
• MRAM product sales, which includes both Toggle and STT-MRAM revenue, of $9.9 million, compared to $13.4 million in the second quarter of 2023.
• Licensing, royalty, patent, and other revenue of $0.7 million, compared to $2.3 million in the second quarter of 2023.
• Gross margin of 49.0%, compared to 58.4% in the second quarter of 2023.
• GAAP operating expenses of $8.0 million, compared to $7.6 million in the second quarter of 2023.
• GAAP net loss of $2.5 million, or $0.12 per basic share, compared to net income of $3.9 million, or $0.18 per diluted share, in the second quarter of 2023.
• Adjusted EBITDA of a loss of $0.2 million, compared to $5.4 million in the second quarter of 2023.

“We are pleased to end the quarter with a strong balance sheet that remains debt free and the $1.7 million cash flow from operations we generated in the quarter,” said Matt Tenorio, Everspin’s Interim Chief Financial Officer. “Looking ahead to the third quarter, we anticipate a ramp in revenue and design wins and have observed signs of recovery in inventory consumption of our customers.”

Business Outlook

For the third quarter 2024, Everspin expects total revenue in a range of $11.5 million to $12.5 million and GAAP net loss per basic share to be between $0.05 and $0.10.

This outlook is dependent on Everspin's current expectations, which may be impacted by, among other things, evolving external conditions, such as pandemics or endemics, local safety guidelines, worsening impacts due to supply chain constraints or interruptions, including due to the military conflict between Russia and 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 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 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, July 31, 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 third 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)

 

 

 

 

 

 

 

 

 

June 30,

 

December 31,

 

 

2024

 

2023

Assets

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

36,764

 

 

$

36,946

 

Accounts receivable, net

 

 

10,114

 

 

 

11,554

 

Inventory

 

 

7,987

 

 

 

8,391

 

Prepaid expenses and other current assets

 

 

517

 

 

 

988

 

Total current assets

 

 

55,382

 

 

 

57,879

 

Property and equipment, net

 

 

3,790

 

 

 

3,717

 

Right-of-use assets

 

 

5,182

 

 

 

5,495

 

Other assets

 

 

211

 

 

 

212

 

Total assets

 

$

64,565

 

 

$

67,303

 

 

 

 

 

 

 

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

1,950

 

 

$

2,916

 

Accrued liabilities

 

 

1,760

 

 

 

4,336

 

Deferred revenue

 

 

—

 

 

 

336

 

Lease liabilities, current portion

 

 

1,275

 

 

 

1,190

 

Total current liabilities

 

 

4,985

 

 

 

8,778

 

Lease liabilities, net of current portion

 

 

3,996

 

 

 

4,390

 

Long-term income tax liability

 

 

162

 

 

 

214

 

Total liabilities

 

$

9,143

 

 

$

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 June 30, 2024 and December 31, 2023, respectively

 

 

—

 

 

 

—

 

Common stock, $0.0001 par value per share; 100,000,000 shares authorized; 21,656,683 and 21,080,472 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively

 

 

2

 

 

 

2

 

Additional paid-in capital

 

 

195,774

 

 

 

191,569

 

Accumulated deficit

 

 

(140,354

)

 

 

(137,650

)

Total stockholders’ equity

 

 

55,422

 

 

 

53,921

 

Total liabilities and stockholders’ equity

 

$

64,565

 

 

$

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 June 30,

 

Six Months Ended June 30,

 

 

2024

 

2023

 

2024

 

2023

Product sales

 

$

9,887

 

 

$

13,406

 

$

20,747

 

 

$

27,183

Licensing, royalty, patent, and other revenue

 

 

749

 

 

 

2,341

 

 

 

4,319

 

 

 

3,410

 

Total revenue

 

 

10,636

 

 

 

15,747

 

 

 

25,066

 

 

 

30,593

 

Cost of product sales

 

 

5,235

 

 

 

6,090

 

 

 

11,238

 

 

 

12,213

 

Cost of licensing, royalty, patent, and other revenue

 

 

185

 

 

 

464

 

 

 

452

 

 

 

757

 

Total cost of sales

 

 

5,420

 

 

 

6,554

 

 

 

11,690

 

 

 

12,970

 

Gross profit

 

 

5,216

 

 

 

9,193

 

 

 

13,376

 

 

 

17,623

 

Operating expenses:1

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

3,457

 

 

 

2,708

 

 

 

6,875

 

 

 

5,907

 

General and administrative

 

 

3,254

 

 

 

3,507

 

 

 

7,290

 

 

 

6,727

 

Sales and marketing

 

 

1,324

 

 

 

1,355

 

 

 

2,630

 

 

 

2,670

 

Total operating expenses

 

 

8,035

 

 

 

7,570

 

 

 

16,795

 

 

 

15,304

 

(Loss) income from operations

 

 

(2,819

)

 

 

1,623

 

 

 

(3,419

)

 

 

2,319

 

Interest expense

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(63

)

Other income, net

 

 

393

 

 

 

2,262

 

 

 

791

 

 

 

2,390

 

Net (loss) income before income taxes

 

 

(2,426

)

 

 

3,885

 

 

 

(2,628

)

 

 

4,646

 

Income tax (expense) benefit

 

 

(76

)

 

 

—

 

 

 

(76

)

 

 

—

 

Net (loss) income and comprehensive (loss) income

 

$

(2,502

)

 

$

3,885

 

 

$

(2,704

)

 

$

4,646

 

Net (loss) income per common share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.12

)

 

$

0.19

 

 

$

(0.13

)

 

$

0.23

 

Diluted

 

$

(0.12

)

 

$

0.18

 

 

$

(0.13

)

 

$

0.22

 

Weighted average shares of common stock outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

21,566,863

 

 

 

20,657,404

 

 

 

21,409,611

 

 

 

20,554,769

 

Diluted

 

 

21,566,863

 

 

 

21,234,253

 

 

 

21,409,611

 

 

 

21,068,059

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1Operating expenses include stock-based compensation as follows:

Research and development

 

$

689

 

 

$

503

 

 

$

1,269

 

 

$

949

 

General and administrative

 

 

980

 

 

 

624

 

 

 

1,960

 

 

 

1,235

 

Sales and marketing

 

 

193

 

 

 

133

 

 

 

347

 

 

 

236

 

Total stock-based compensation

 

$

1,862

 

 

$

1,260

 

 

$

3,576

 

 

$

2,420

 

EVERSPIN TECHNOLOGIES, INC.

Condensed Statements of Cash Flows

(In thousands)

(Unaudited)

 

 

 

 

 

 

 

 

 

Six Months Ended June 30,

 

 

2024

 

2023

Cash flows from operating activities

 

 

 

 

 

 

Net (loss) income

 

$

(2,704

)

 

$

4,646

 

Adjustments to reconcile net (loss) income to net cash provided by operating activities:

 

 

 

 

 

 

Depreciation and amortization

 

 

795

 

 

 

617

 

Gain on sale of property and equipment

 

 

—

 

 

 

(15

)

Stock-based compensation

 

 

3,576

 

 

 

2,420

 

Loss on prepayment and termination of credit facility

 

 

—

 

 

 

170

 

Non-cash warrant revaluation

 

 

—

 

 

 

23

 

Non-cash interest expense

 

 

—

 

 

 

26

 

Income tax benefit of long term tax liability

 

 

—

 

 

 

—

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

Accounts receivable

 

 

1,440

 

 

 

1,639

 

Inventory

 

 

404

 

 

 

(662

)

Prepaid expenses and other current assets

 

 

471

 

 

 

193

 

Other assets

 

 

1

 

 

 

—

 

Accounts payable

 

 

(595

)

 

 

(741

)

Accrued liabilities

 

 

(2,628

)

 

 

(701

)

Deferred revenue

 

 

(336

)

 

 

(96

)

Lease liabilities, net

 

 

4

 

 

 

12

 

Net cash provided by operating activities

 

 

428

 

 

 

7,531

 

Cash flows from investing activities

 

 

 

 

 

 

Purchases of property and equipment

 

 

(1,239

)

 

 

(1,063

)

Proceeds received from sale of property and equipment

 

 

—

 

 

 

15

 

Net cash used in investing activities

 

 

(1,239

)

 

 

(1,048

)

Cash flows from financing activities

 

 

 

 

 

 

Payments on long-term debt

 

 

—

 

 

 

(2,790

)

Proceeds from exercise of stock options and purchase of shares in employee stock purchase plan

 

 

629

 

 

 

342

 

Net cash provided by (used in) financing activities

 

 

629

 

 

 

(2,448

)

Net (decrease) increase in cash and cash equivalents

 

 

(182

)

 

 

4,035

 

Cash and cash equivalents at beginning of period

 

 

36,946

 

 

 

26,795

 

Cash and cash equivalents at end of period

 

$

36,764

 

 

$

30,830

 

Supplementary cash flow information:

 

 

 

 

 

 

Interest paid

 

$

—

 

 

$

37

 

Operating cash flows paid for operating leases

 

$

699

 

 

$

692

 

Financing cash flows paid for finance leases

 

$

28

 

 

$

6

 

Non-cash investing and financing activities:

 

 

 

 

 

 

Right-of-use assets obtained in exchange for finance lease liabilities

 

$

297

 

 

$

—

 

Purchases of property and equipment in accounts payable and accrued liabilities

 

$

75

 

 

$

—

 

EVERSPIN TECHNOLOGIES, INC.

Reconciliation of Adjusted EBITDA

(In thousands)

(Unaudited)

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2024

 

2023

 

2024

 

2023

Adjusted EBITDA reconciliation:

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income

 

$

(2,502

)

 

$

3,885

 

$

(2,704

)

 

$

4,646

Depreciation and amortization

 

 

397

 

 

 

284

 

 

 

795

 

 

 

617

 

Stock-based compensation expense

 

 

1,862

 

 

 

1,260

 

 

 

3,576

 

 

 

2,420

 

Interest expense

 

 

—

 

 

 

—

 

 

 

—

 

 

 

63

 

Income tax (benefit) expense

 

 

76

 

 

 

—

 

 

 

76

 

 

 

—

 

Adjusted EBITDA

 

$

(167

)

 

$

5,429

 

 

$

1,743

 

 

$

7,746

 

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240731883502/en/

Investor Relations: Monica Gould The Blueshirt Group T: 212-871-3927 ir@everspin.com