Everspin Technologies Inc.

10/30/2024 | Press release | Distributed by Public on 10/30/2024 14:06

Everspin Reports Unaudited Third Quarter 2024 Financial Results Form 8 K

Everspin Reports Unaudited Third Quarter 2024 Financial Results

Q3'24 revenue of $12.1 million in-line with guidance and EPS of $0.10 exceeded guidance

Chandler, AZ, Oct 30, 2024 - 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.

Investor Relations:

Monica Gould

The Blueshirt Group

T: 212-871-3927

[email protected]

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