The Company continues growth and profitability in the first half
of 2022 with strong second quarter results
Everspin Technologies, Inc. (NASDAQ: MRAM), the market leader in
MRAM, today announced preliminary unaudited financial results for
the second quarter of 2022.
Second Quarter 2022 Highlights
- Q2’22 revenue increased $0.4 million, or 3%, to $14.7 million
from $14.3 million for Q1’22. Q2’22 revenue increased $2.9 million,
or 24% from $11.8 million in Q2’21.
- The Company reported net income of $1.7 million for Q2’22,
compared to $1.9 million for Q1’22, and $0.3 million in Q2’21.
- Adjusted EBITDA for Q2’22 improved to $3.3 million, compared to
$3.1 million for Q1’22, and $1.5 million in Q2’21.
- Basic EPS for Q2’22 was $0.08 compared to $0.10 for Q1’22, and
$0.01 for Q2’21.
- Ended Q2’22 with cash and cash equivalents of $23.1 million, an
increase from $19.9 million at the end of Q1’22.
“Everspin delivered quarterly revenue of $14.7 million, an
increase of 24% year-on-year and above the high end of guidance.
Our team continues to successfully navigate changing supply to meet
customer demand, which continues to be strong with existing and new
design wins on our Toggle products,” said Sanjeev Aggarwal,
President & CEO. “We have started sampling our new xSPI family
of Low Density STT-MRAM products (8Mb to 128Mb) to drive growth
across industrial, IoT and FPGA markets.”
Second Quarter 2022 Results
Total revenue for the second quarter of 2022 was $14.7 million,
an increase of 3% from the $14.3 million reported in the first
quarter of 2022. This is an increase of 24% compared to $11.8
million of revenue in the second quarter of 2021.
MRAM product sales in the second quarter of 2022, which includes
both Toggle and STT-MRAM revenue, was $13.2 million compared to
$12.7 million in the first quarter of 2022 and $10.2 million in the
second quarter of 2021.
Licensing, Royalties, Patents and Other revenue in the second
quarter of 2022 was $1.5 million compared to $1.7 million in the
first quarter of 2022 and $1.7 million in the second quarter of
2021.
The increase in total revenue for the second quarter of 2022
compared to the second quarter of 2021 was due to strong toggle
demand and sales.
Gross margin for the second quarter of 2022 was 58.4%, compared
to 58.0% in the first quarter of 2022, and 60.7% in the second
quarter of 2021. The decrease in gross margin compared to the
second quarter of 2021 was attributable to price increases from
suppliers.
GAAP operating expenses was $6.9 million in the second quarter
of 2022, compared to $6.3 million in the first quarter of 2022 and
$6.7 million in the second quarter of 2021. GAAP operating expenses
increased in the second quarter of 2022 compared to the first
quarter of 2022 as a result of increased costs to support the new
STT industrial product.
GAAP net income for the second quarter of 2022 was $1.7 million,
or $0.08 per basic share, based on 20.1 million weighted-average
basic common shares outstanding. This compares to a net income of
$1.9 million, or $0.10 per basic share, in the first quarter of
2022 and a net income of $0.3 million, or $0.01 per basic share, in
the second quarter of 2021.
Business Outlook
For the third quarter 2022, Everspin expects total revenue in a
range of $14.4 million to $15.4 million. Everspin expects industry
supply constraints to limit supply and push some unfulfilled
customer demand to future quarters. Everspin expects GAAP net
income per basic share to be between breakeven and $0.05, primarily
influenced by expenses related to next generation 28nm STT MRAM
product development and price increases from our suppliers.
This outlook is dependent on Everspin's current expectations,
which may be impacted by, among other things, evolving external
conditions, such as the resurgence of COVID-19 and its variants,
local safety guidelines, worsening impacts due to supply chain
constraints or interruptions, including due to the recent military
conflict in Ukraine and recent market volatility, 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, 2021, its
Quarterly Reports on Form 10-Q filed with the SEC during 2022, 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 non-GAAP measures differently, which limits the usefulness
of these measures 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 Thursday, August 11, 2022, at 5:00 p.m. Eastern Time. Interested
participants can pre-register online to receive a telephone number
and a unique passcode at:
https://register.vevent.com/register/BIfe7f479f52fa42c082550ca25061f4e1.
The conference call will be broadcast live in listen-only mode
at:
https://edge.media-server.com/mmc/p/7befjdfe.
The registration link and archived webcast will be available in
the Investor Relations section of the company’s website at
investor.everspin.com.
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 Center, 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 2022 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, 2021 filed with the SEC on March 9,
2022, and its Quarterly Reports on Form 10-Q filed with the SEC
during 2022, 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.
EVERSPIN TECHNOLOGIES,
INC.
Condensed Balance
Sheets
(In thousands, except share
and per share amounts)
(Unaudited)
June 30,
December 31,
2022
2021
Assets
Current assets:
Cash and cash equivalents
$
23,051
$
21,409
Accounts receivable, net
9,283
8,193
Inventory
6,376
6,396
Prepaid expenses and other current
assets
800
762
Total current assets
39,510
36,760
Property and equipment, net
2,594
973
Right-of-use assets
3,649
913
Other assets
62
734
Total assets
$
45,815
$
39,380
Liabilities and Stockholders’
Equity
Current liabilities:
Accounts payable
$
2,689
$
1,776
Accrued liabilities
2,165
3,579
Deferred revenue
—
832
Current portion of long-term debt
3,761
3,370
Lease liabilities
910
724
Other liabilities
29
50
Total current liabilities
9,554
10,331
Long-term debt, net of current portion
—
1,529
Lease liabilities, net of current
portion
2,782
68
Long-term income tax liability
214
214
Total liabilities
$
12,550
$
12,142
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.0001 par value per
share; 5,000,000 shares authorized; no shares issued and
outstanding as of June 30, 2022 and December 31, 2021
—
—
Common stock, $0.0001 par value per share;
100,000,000 shares authorized; 20,137,520 and 19,858,460 shares
issued and outstanding as of June 30, 2022, and December 31,
2021
2
2
Additional paid-in capital
182,488
180,067
Accumulated deficit
(149,225
)
(152,831
)
Total stockholders’ equity
33,265
27,238
Total liabilities and stockholders’
equity
$
45,815
$
39,380
EVERSPIN TECHNOLOGIES,
INC.
Condensed Statements of
Operations and Comprehensive Income (Loss)
(In thousands, except share
and per share amounts)
(Unaudited)
Three Months Ended June
30,
Six Months Ended June
30,
2022
2021
2022
2021
Product sales
$
13,223
$
10,187
$
25,894
$
19,255
Licensing, royalty, patent, and other
revenue
1,484
1,661
3,160
2,873
Total revenue
14,707
11,848
29,054
22,128
Cost of product sales
5,793
4,329
11,545
8,586
Cost of licensing, royalty, patent, and
other revenue
323
323
595
361
Total cost of sales
6,116
4,652
12,140
8,947
Gross profit
8,591
7,196
16,914
13,181
Operating expenses:1
Research and development
2,699
3,357
5,135
5,796
General and administrative
2,860
2,338
5,589
5,181
Sales and marketing
1,292
1,045
2,426
2,032
Total operating expenses
6,851
6,740
13,150
13,009
Income from operations
1,740
456
3,764
172
Interest expense
(70
)
(144
)
(145
)
(296
)
Other income (expense), net
1
(12
)
(13
)
(27
)
Net income (loss) before income taxes
1,671
300
3,606
(151
)
Income tax expense
—
(44
)
—
(53
)
Net income (loss) and comprehensive income
(loss)
$
1,671
$
256
$
3,606
$
(204
)
Net income (loss) per common share:
Basic
$
0.08
$
0.01
$
0.18
$
(0.01
)
Diluted
$
0.08
$
0.01
$
0.17
$
(0.01
)
Weighted average shares of common stock
outstanding:
Basic
20,069,444
19,313,162
19,983,526
19,203,374
Diluted
20,424,283
19,726,064
20,626,547
19,203,374
1Operating expenses include stock-based
compensation as follows:
Research and development
$
462
$
265
$
795
$
446
General and administrative
647
305
1,018
790
Sales and marketing
202
134
322
211
Total stock-based compensation
$
1,311
$
704
$
2,135
$
1,447
EVERSPIN TECHNOLOGIES,
INC.
Condensed Statement of Cash
Flows
(In thousands)
(Unaudited)
Six Months Ended June
30,
2022
2021
Cash flows from operating
activities
Net income (loss)
$
3,606
$
(204
)
Adjustments to reconcile net income (loss)
to net cash provided by operating activities:
Depreciation and amortization
462
756
Gain on sale of property and equipment
(167
)
—
Stock-based compensation
2,135
1,447
Non-cash warrant revaluation
(21
)
5
Non-cash interest expense
62
168
Changes in operating assets and
liabilities:
Accounts receivable
(1,090
)
(2,776
)
Inventory
20
(850
)
Prepaid expenses and other current
assets
(38
)
49
Other assets
664
—
Accounts payable
(201
)
861
Accrued liabilities
(1,414
)
(126
)
Deferred revenue
(832
)
1,815
Lease liabilities
164
(64
)
Net cash provided by operating
activities
3,350
1,081
Cash flows from investing
activities
Purchases of property and equipment
(996
)
(554
)
Proceeds received from sale of property
and equipment
202
—
Net cash used in investing activities
(794
)
(554
)
Cash flows from financing
activities
Payments on long-term debt
(1,200
)
(1,200
)
Proceeds from exercise of stock options
and purchase of shares in employee stock purchase plan
286
293
Net cash used in financing activities
(914
)
(907
)
Net increase (decrease) in cash and cash
equivalents
1,642
(380
)
Cash and cash equivalents at beginning of
period
21,409
14,599
Cash and cash equivalents at end of
period
$
23,051
$
14,219
Supplementary cash flow
information:
Interest paid
$
83
$
128
Operating cash flows paid for operating
leases
$
635
$
814
Financing cash flows paid for finance
leases
$
5
$
—
Non-cash investing and financing
activities:
Right-of-use assets obtained in exchange
for operating lease liabilities
$
3,350
$
—
Right-of-use assets obtained in exchange
for finance lease liabilities
$
36
$
—
Purchases of property and equipment in
accounts payable and accrued liabilities
$
783
$
—
Bonus settled in shares of common
stock
$
—
$
364
EVERSPIN TECHNOLOGIES,
INC.
Adjusted EBITDA
Reconciliation
(In thousands)
(Unaudited)
Three Months Ended
June 30, 2022
March 31, 2022
June 30, 2021
Adjusted EBITDA reconciliation:
Net income
$
1,671
$
1,935
$
256
Depreciation and amortization
204
258
373
Stock-based compensation expense
1,311
824
704
Interest expense
70
75
144
Income tax expense
-
-
44
Adjusted EBITDA
$
3,256
$
3,092
$
1,521
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220811005270/en/
Company Contact: Anuj Aggarwal, CFO T: 480-347-1082 E:
anuj.aggarwal@everspin.com
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