MRAM Everspin Technologies Inc

Q3’24 revenue of $12.1 million in-line with guidance and EPS of $0.10 exceeded 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 third quarter ended September 30, 2024.

“We are pleased to report third quarter revenue in-line with our guidance and GAAP net income per diluted share ahead of our guidance, driven by our new contract wins, and our cost containment efforts,” said Sanjeev Aggarwal, President and Chief Executive Officer. “We had new contracts during the quarter, showcasing the strength of our business and the extensive range of our product portfolio. We continue to have meaningful customer interactions, which we believe will turn into design wins for our PERSYST xSPI STT-MRAM products and begin to contribute to revenue in 2025 and beyond.”

Third Quarter 2024 Results

• Total revenue of $12.1 million, compared to $16.5 million in the third quarter of 2023.
• MRAM product sales, which includes both Toggle and STT-MRAM revenue, of $10.4 million, compared to $13.5 million in the third quarter of 2023.
• Licensing, royalty, patent, and other revenue of $1.7 million, compared to $2.9 million in the third quarter of 2023.
• Gross margin of 49.2%, compared to 60.2% in the third quarter of 2023.
• GAAP operating expenses of $8.1 million, compared to $7.9 million in the third quarter of 2023.
• GAAP net income of $2.3 million, or $0.10 per diluted share, compared to net income of $2.4 million, or $0.11 per diluted share, in the third quarter of 2023.
• Adjusted EBITDA of $4.2 million, compared to $4.0 million in the third quarter of 2023.

“We are pleased to end the quarter with a strong balance sheet and a return to profitability,” said Matt Tenorio, Everspin’s Interim Chief Financial Officer. “We remain focused on scaling our business and converting additional design wins to revenue.”

Business Outlook

For the fourth quarter 2024, Everspin expects total revenue in a range of $12 million to $13 million and GAAP net income per diluted share to be between $0.00 and $0.05.

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 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, October 30, 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 fourth 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)

 

 

 

September 30,

 

December 31,

 

 

2024

 

2023

Assets

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

39,588

 

 

$

36,946

 

Accounts receivable, net

 

 

11,407

 

 

 

11,554

 

Inventory

 

 

8,441

 

 

 

8,391

 

Prepaid expenses and other current assets

 

 

4,585

 

 

 

988

 

Total current assets

 

 

64,021

 

 

 

57,879

 

Property and equipment, net

 

 

3,412

 

 

 

3,717

 

Right-of-use assets

 

 

4,868

 

 

 

5,495

 

Other assets

 

 

300

 

 

 

212

 

Total assets

 

$

72,601

 

 

$

67,303

 

 

 

 

 

 

 

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

2,742

 

 

$

2,916

 

Accrued liabilities

 

 

2,140

 

 

 

4,336

 

Deferred revenue

 

 

372

 

 

 

336

 

Lease liabilities, current portion

 

 

1,290

 

 

 

1,190

 

Contract obligations

 

 

2,953

 

 

 

—

 

Total current liabilities

 

 

9,497

 

 

 

8,778

 

Lease liabilities, net of current portion

 

 

3,668

 

 

 

4,390

 

Long-term income tax liability

 

 

162

 

 

 

214

 

Total liabilities

 

$

13,327

 

 

$

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 September 30, 2024 and December 31, 2023, respectively

 

 

—

 

 

 

—

 

Common stock, $0.0001 par value per share; 100,000,000 shares authorized; 21,833,041 and 21,080,472 shares issued and outstanding as of September 30, 2024 and December 31, 2023, respectively

 

 

2

 

 

 

2

 

Additional paid-in capital

 

 

197,355

 

 

 

191,569

 

Accumulated deficit

 

 

(138,083

)

 

 

(137,650

)

Total stockholders’ equity

 

 

59,274

 

 

 

53,921

 

Total liabilities and stockholders’ equity

 

$

72,601

 

 

$

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 September 30,

 

Nine Months Ended September 30,

 

 

2024

 

2023

 

2024

 

2023

Product sales

 

$

10,443

 

 

$

13,543

 

$

31,190

 

 

$

40,726

 

Licensing, royalty, patent, and other revenue

 

 

1,650

 

 

 

2,923

 

 

5,969

 

 

 

6,333

 

Total revenue

 

 

12,093

 

 

 

16,466

 

 

37,159

 

 

 

47,059

 

Cost of product sales

 

 

5,752

 

 

 

5,920

 

 

16,989

 

 

 

18,133

 

Cost of licensing, royalty, patent, and other revenue

 

 

390

 

 

 

627

 

 

842

 

 

 

1,384

 

Total cost of sales

 

 

6,141

 

 

 

6,547

 

 

17,831

 

 

 

19,517

 

Gross profit

 

 

5,952

 

 

 

9,919

 

 

19,328

 

 

 

27,542

 

Operating expenses:1

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

3,384

 

 

 

2,659

 

 

10,259

 

 

 

8,566

 

General and administrative

 

 

3,363

 

 

 

3,933

 

 

10,653

 

 

 

10,660

 

Sales and marketing

 

 

1,320

 

 

 

1,348

 

 

3,950

 

 

 

4,018

 

Total operating expenses

 

 

8,067

 

 

 

7,940

 

 

24,862

 

 

 

23,244

 

(Loss) income from operations

 

 

(2,115

)

 

 

1,979

 

 

(5,534

)

 

 

4,298

 

Interest expense

 

 

—

 

 

 

—

 

 

—

 

 

 

(63

)

Other income, net

 

 

4,396

 

 

 

459

 

 

5,187

 

 

 

2,849

 

Net (loss) income before income taxes

 

 

2,281

 

 

 

2,438

 

 

(347

)

 

 

7,084

 

Income tax expense

 

 

(10

)

 

 

—

 

 

(86

)

 

 

—

 

Net (loss) income and comprehensive (loss) income

 

$

2,271

 

 

$

2,438

 

$

(433

)

 

$

7,084

 

Net (loss) income per common share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.10

 

 

$

0.12

 

$

(0.02

)

 

$

0.34

 

Diluted

 

$

0.10

 

 

$

0.11

 

$

(0.02

)

 

$

0.33

 

Weighted average shares of common stock outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

21,767,380

 

 

 

20,848,558

 

 

21,529,738

 

 

 

20,653,775

 

Diluted

 

 

21,985,175

 

 

 

21,828,789

 

 

21,529,738

 

 

 

21,276,904

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1Operating expenses include stock-based compensation as follows:

Research and development

 

$

710

 

 

$

505

 

$

1,979

 

 

$

1,454

 

General and administrative

 

 

632

 

 

 

639

 

 

2,592

 

 

 

1,874

 

Sales and marketing

 

 

190

 

 

 

136

 

 

537

 

 

 

372

 

Total stock-based compensation

 

$

1,532

 

 

$

1,280

 

$

5,108

 

 

$

3,700

 

EVERSPIN TECHNOLOGIES, INC.

Condensed Statements of Cash Flows

(In thousands)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30,

 

 

2024

 

2023

Cash flows from operating activities

 

 

 

 

 

 

Net (loss) income

 

$

(433

)

 

$

7,084

 

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

 

 

 

 

 

 

Depreciation and amortization

 

 

1,197

 

 

 

905

 

Gain on sale of property and equipment

 

 

—

 

 

 

(15

)

Stock-based compensation

 

 

5,108

 

 

 

3,700

 

Loss on prepayment and termination of credit facility

 

 

—

 

 

 

170

 

Non-cash warrant revaluation

 

 

—

 

 

 

(25

)

Non-cash interest expense

 

 

—

 

 

 

26

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

Accounts receivable

 

 

147

 

 

 

577

 

Inventory

 

 

(50

)

 

 

(1,954

)

Prepaid expenses and other current assets

 

 

(3,597

)

 

 

366

 

Other assets

 

 

(88

)

 

 

—

 

Accounts payable

 

 

236

 

 

 

599

 

Accrued liabilities

 

 

(2,248

)

 

 

(54

)

Deferred revenue

 

 

36

 

 

 

(311

)

Contract obligations

 

 

2,953

 

 

 

—

 

Lease liabilities, net

 

 

5

 

 

 

18

 

Net cash provided by operating activities

 

 

3,266

 

 

 

11,086

 

Cash flows from investing activities

 

 

 

 

 

 

Purchases of property and equipment

 

 

(1,302

)

 

 

(1,080

)

Proceeds received from sale of property and equipment

 

 

—

 

 

 

15

 

Net cash used in investing activities

 

 

(1,302

)

 

 

(1,065

)

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

 

 

678

 

 

 

908

 

Net cash provided by (used in) financing activities

 

 

678

 

 

 

(1,882

)

Net increase in cash and cash equivalents

 

 

2,642

 

 

 

8,139

 

Cash and cash equivalents at beginning of period

 

 

36,946

 

 

 

26,795

 

Cash and cash equivalents at end of period

 

$

39,588

 

 

$

34,934

 

Supplementary cash flow information:

 

 

 

 

 

 

Interest paid

 

$

—

 

 

$

37

 

Operating cash flows paid for operating leases

 

$

1,049

 

 

$

1,038

 

Financing cash flows paid for finance leases

 

$

47

 

 

$

9

 

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

 

$

36

 

 

$

—

 

EVERSPIN TECHNOLOGIES, INC. Reconciliation of Adjusted EBITDA (In thousands) (Unaudited)

 

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

2024

 

2023

 

2024

 

 

2023

Adjusted EBITDA reconciliation:

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income

 

$

2,271

 

$

2,438

 

$

(433

)

 

$

7,084

Depreciation and amortization

 

 

402

 

 

288

 

 

1,197

 

 

 

905

Stock-based compensation expense

 

 

1,532

 

 

1,280

 

 

5,108

 

 

 

3,700

Interest expense

 

 

—

 

 

—

 

 

—

 

 

 

63

Income tax (benefit) expense

 

 

10

 

 

—

 

 

86

 

 

 

—

Adjusted EBITDA

 

$

4,215

 

$

4,006

 

$

5,958

 

 

$

11,752

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20241030188457/en/

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