The Company continues to see positive growth and profitability
with strong third quarter results
Everspin Technologies, Inc. (NASDAQ: MRAM), the market leader in
MRAM, today announced preliminary unaudited financial results for
the third quarter of 2022.
Third Quarter 2022 Highlights
- Q3’22 revenue increased $0.5 million, or 4%, to $15.2 million
from $14.7 million for Q2’22. Q3’22 revenue increased $0.4 million,
or 3% from $14.8 million in Q3’21.
- The Company reported net income of $1.9 million for Q3’22,
compared to $1.7 million for Q2’22, and $0.9 million in Q3’21.
- Basic EPS for Q3’22 increased to $0.09 compared to $0.08 for
Q2’22, and $0.05 for Q3’21. Diluted EPS for Q3’22 increased to
$0.09 compared to $0.08 for Q2’22, and $0.04 for Q3’21.
- Adjusted EBITDA for Q3’22 improved to $3.4 million, compared to
$3.3 million for Q2’22, and $2.5 million in Q3’21.
- Ended Q3’22 with cash and cash equivalents of $23.4 million, an
increase from $23.1 million at the end of Q2’22.
“Everspin delivered quarterly revenue of $15.2 million, an
increase of 3% year-on-year and close to the high end of guidance.
Our team successfully navigated challenging supply chain
environments to meet customer demand,” said Sanjeev Aggarwal,
President & CEO. “We are seeing a strong customer interest in
our new xSPI family of STT-MRAM products now commercially available
in densities from 8Mb to 64Mb, which we expect to drive further
growth in the industrial markets.”
Third Quarter 2022 Results
Total revenue for the third quarter of 2022 was $15.2 million,
an increase of 4% from the $14.7 million reported in the second
quarter of 2022. This is an increase of 3% compared to $14.8
million of revenue in the third quarter of 2021.
MRAM product sales in the third quarter of 2022, which includes
both Toggle and STT-MRAM revenue, was $14.6 million, an increase of
10% from the $13.2 million reported in the second quarter of 2022.
This is an increase of 21% compared to $12.0 million in the third
quarter of 2021.
Licensing, Royalties, Patents and Other revenue in the third
quarter of 2022 was $0.7 million compared to $1.5 million in the
second quarter of 2022 and $2.8 million in the third quarter of
2021.
The increase in total revenue for the third quarter of 2022
compared to the third quarter of 2021 was due to strong toggle
demand and sales.
Gross margin for the third quarter of 2022 was 58.8% compared to
58.4% in the second quarter of 2022, and 57.1% in the third quarter
of 2021. The increase in gross margin compared to the third quarter
of 2021 was attributable to increased yields of toggle
products.
GAAP operating expenses was $7.1 million in the third quarter of
2022, compared to $6.9 million in the second quarter of 2022 and
$7.4 million in the third quarter of 2021. GAAP operating expenses
decreased in the third quarter of 2022 compared to the third
quarter of 2021 as a result of reduced development costs related to
the new STT 28nm product that has started producing samples in
2022.
GAAP net income for the third quarter of 2022 was $1.9 million,
or $0.09 per basic share, based on 20.2 million weighted-average
basic common shares outstanding. This is an increase compared to a
net income of $1.7 million, or $0.08 per basic share, in the second
quarter of 2022 and a net income of $0.9 million, or $0.05 per
basic share, in the third quarter of 2021. Diluted EPS for the
third quarter of 2022 increased to $0.09 based on 20.5 million
weighted-average diluted common shares compared to $0.08 in the
second quarter of 2022, and $0.04 in the third quarter of 2021.
Adjusted EBITDA for the third quarter of 2022 improved to $3.4
million, compared to $3.3 million in the second quarter of 2022 and
$2.5 million in the third quarter of 2021.
Cash and cash equivalents as of the end of the third quarter of
2022 were $23.4 million, compared to $23.1 million at the end of
the second quarter of 2022.
Business Outlook
For the fourth quarter 2022, Everspin is confident in its growth
opportunities and ability to navigate macroeconomic challenges.
Everspin expects total revenue in a range of $14.1 million to $15.1
million with some 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 its
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 Wednesday, November 9, 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/BI2bf51e66aa8f4601bf211760a49b5dae
The conference call will be broadcast live in listen-only mode
at:
https://edge.media-server.com/mmc/p/vpkjw7mn
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 in Mr. Aggarwal’s
quote and 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 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)
September 30,
December 31,
2022
2021
Assets
Current assets:
Cash and cash equivalents
$
23,442
$
21,409
Accounts receivable, net
12,550
8,193
Inventory
7,862
6,396
Prepaid expenses and other current
assets
292
762
Total current assets
44,146
36,760
Property and equipment, net
2,659
973
Right-of-use assets
6,916
913
Other assets
62
734
Total assets
$
53,783
$
39,380
Liabilities and Stockholders’
Equity
Current liabilities:
Accounts payable
$
3,399
$
1,776
Accrued liabilities
2,441
3,579
Deferred revenue
807
832
Current portion of long-term debt
3,182
3,370
Lease liabilities
1,106
724
Other liabilities
29
50
Total current liabilities
10,964
10,331
Long-term debt, net of current portion
—
1,529
Lease liabilities, net of current
portion
5,864
68
Long-term income tax liability
214
214
Total liabilities
$
17,042
$
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 September 30, 2022 and December 31, 2021
—
—
Common stock, $0.0001 par value per share;
100,000,000 shares authorized; 20,276,746 and 19,858,460 shares
issued and outstanding as of September 30, 2022, and December 31,
2021
2
2
Additional paid-in capital
184,057
180,067
Accumulated deficit
(147,318
)
(152,831
)
Total stockholders’ equity
36,741
27,238
Total liabilities and stockholders’
equity
$
53,783
$
39,380
EVERSPIN TECHNOLOGIES,
INC.
Condensed Statements of
Operations and Comprehensive Income
(In thousands, except share
and per share amounts)
(Unaudited)
Three Months Ended September
30,
Nine Months Ended September
30,
2022
2021
2022
2021
Product sales
$
14,571
$
12,037
$
40,465
$
31,292
Licensing, royalty, patent, and other
revenue
670
2,758
3,830
5,631
Total revenue
15,241
14,795
44,295
36,923
Cost of product sales
6,122
6,043
17,667
14,629
Cost of licensing, royalty, patent, and
other revenue
155
304
750
665
Total cost of sales
6,277
6,347
18,417
15,294
Gross profit
8,964
8,448
25,878
21,629
Operating expenses:1
Research and development
2,879
3,105
8,014
8,901
General and administrative
2,971
2,996
8,560
8,177
Sales and marketing
1,203
1,272
3,629
3,304
Total operating expenses
7,053
7,373
20,203
20,382
Income from operations
1,911
1,075
5,675
1,247
Interest expense
(73
)
(165
)
(218
)
(461
)
Other income (expense), net
69
(8
)
56
(35
)
Net income before income taxes
1,907
902
5,513
751
Income tax expense
—
(22
)
—
(75
)
Net income and comprehensive income
$
1,907
$
880
$
5,513
$
676
Net income per common share:
Basic
$
0.09
$
0.05
$
0.27
$
0.03
Diluted
$
0.09
$
0.04
$
0.27
$
0.03
Weighted average shares of common stock
outstanding:
Basic
20,206,728
19,511,132
20,058,744
19,296,241
Diluted
20,539,064
19,912,918
20,698,814
19,787,889
1Operating expenses include stock-based
compensation as follows:
Research and development
$
462
$
428
$
1,257
$
874
General and administrative
598
434
1,616
1,224
Sales and marketing
92
165
414
376
Total stock-based compensation
$
1,152
$
1,027
$
3,287
$
2,474
EVERSPIN TECHNOLOGIES,
INC.
Condensed Statement of Cash
Flows
(In thousands)
(Unaudited)
Nine Months Ended September
30,
2022
2021
Cash flows from operating
activities
Net income
$
5,513
$
676
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization
704
1,117
Gain on sale of property and equipment
(167
)
—
Stock-based compensation
3,287
2,474
Non-cash warrant revaluation
(21
)
5
Non-cash interest expense
93
274
Changes in operating assets and
liabilities:
Accounts receivable
(4,357
)
(3,022
)
Inventory
(1,466
)
(947
)
Prepaid expenses and other current
assets
470
(67
)
Other assets
(28
)
(175
)
Accounts payable
1,218
656
Accrued liabilities
(1,138
)
655
Deferred revenue
(25
)
1,382
Lease liabilities
175
(90
)
Net cash provided by operating
activities
4,258
2,938
Cash flows from investing
activities
Purchases of property and equipment
(1,320
)
(578
)
Proceeds received from sale of property
and equipment
202
—
Net cash used in investing activities
(1,118
)
(578
)
Cash flows from financing
activities
Payments on long-term debt
(1,800
)
(2,800
)
Payments of debt issuance costs
(10
)
—
Proceeds from exercise of stock options
and purchase of shares in employee stock purchase plan
703
399
Net cash used in financing activities
(1,107
)
(2,401
)
Net increase (decrease) in cash and cash
equivalents
2,033
(41
)
Cash and cash equivalents at beginning of
period
21,409
14,599
Cash and cash equivalents at end of
period
$
23,442
$
14,558
Supplementary cash flow
information:
Interest paid
$
125
$
178
Operating cash flows paid for operating
leases
$
978
$
1,212
Financing cash flows paid for finance
leases
$
8
$
—
Non-cash investing and financing
activities:
Right-of-use assets obtained in exchange
for operating lease liabilities
$
6,837
$
—
Right-of-use assets obtained in exchange
for finance lease liabilities
$
36
$
—
Purchases of property and equipment in
accounts payable and accrued liabilities
$
773
$
—
Bonus settled in shares of common
stock
$
—
$
364
EVERSPIN TECHNOLOGIES,
INC.
Adjusted EBITDA
Reconciliation
(In thousands)
(Unaudited)
Three Months Ended
September 30, 2022
June 30, 2022
September 30, 2021
Adjusted EBITDA reconciliation:
Net income
$
1,907
$
1,671
$
880
Depreciation and amortization
242
204
361
Stock-based compensation expense
1,152
1,311
1,027
Interest expense
73
70
165
Income tax expense
-
-
22
Adjusted EBITDA
$
3,374
$
3,256
$
2,455
View source
version on businesswire.com: https://www.businesswire.com/news/home/20221109005941/en/
Anuj Aggarwal, CFO T: 480-347-1082 E:
anuj.aggarwal@everspin.com
Everspin Technologies (NASDAQ:MRAM)
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