Q4’23 revenue of $16.7 million and EPS of $0.09
exceeded guidance
Achieved record annual revenue and
profitability in 2023
Everspin Technologies, Inc. (NASDAQ: MRAM), the market leader in
MRAM, today announced preliminary unaudited financial results for
the fourth quarter and full year ended December 31, 2023.
“We are pleased that our fourth quarter results exceeded our
expectations across the board, led by strong product and RAD Hard
revenue,” said Sanjeev Aggarwal, President and Chief Executive
Officer. “For the full year, our team delivered record revenue and
profitability, while driving improved gross margins through
operational excellence, and we closed the year with 217 design
wins.”
Fourth Quarter 2023 Results
- Total revenue of $16.7 million, an increase of 6% from $15.7
million in the fourth quarter of 2022.
- MRAM product sales, which includes both Toggle and STT-MRAM
revenue, of $12.4 million, compared to $14.6 million in the fourth
quarter of 2022.
- Licensing, royalties, patents, and other revenue of $4.3
million, compared to $1.1 million in the fourth quarter of
2022.
- Gross margin of 58.1%, compared to 51.4% in the fourth quarter
of 2022.
- GAAP operating expenses of $8.1 million, compared to $7.5
million in the fourth quarter of 2022.
- GAAP net income of $2.0 million, or $0.09 per diluted share,
compared to net income of $0.6 million, or $0.03 per diluted share,
in the fourth quarter of 2022.
- Adjusted EBITDA of $3.6 million, compared to $2.1 million in
the fourth quarter of 2022.
- Record high cash and cash equivalents balance of $36.9
million.
Full Year 2023 Results
- Total revenue of $63.8 million, an increase of 6% from $60.0
million in 2022.
- MRAM product sales, which includes both Toggle and STT-MRAM
revenue, of $53.1 million, compared to $55.0 million in 2022.
- Licensing, royalties, patents, and other revenue of $10.6
million, compared to $5.0 million in 2022.
- Gross margin of 58.4%, compared to 56.6% in 2022.
- GAAP operating expenses of $31.4 million, compared to $27.7
million in 2022.
- GAAP net income of $9.1 million, or $0.42 per diluted share,
compared to net income of $6.1 million, or $0.29 per diluted share,
in 2022.
- Adjusted EBITDA of $15.3 million, compared to $11.8 million in
2022.
“We reported another profitable quarter, marking our 11th
consecutive quarter of profitability, a key focus for the company,”
said Anuj Aggarwal, Everspin’s Chief Financial Officer. “Our
financial position remains strong, with no debt and the highest
cash balance in the company's history.”
Business Outlook
For the first quarter 2024, Everspin expects total revenue in a
range of $13.5 million to $14.5 million and GAAP net income per
diluted share to be between breakeven 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 COVID-19 and its variants, local safety
guidelines, worsening impacts due to supply chain constraints or
interruptions, including due to the military conflict in 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, 2022, its Quarterly Reports on Form 10-Q
filed with the SEC during 2023, 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, February 28, 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 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 first 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, 2022 filed with the SEC on March 2,
2023, and its Quarterly Reports on Form 10-Q filed with the SEC
during 2023, 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.
Balance Sheets
(In thousands, except share
and per share amounts) (Unaudited)
December 31,
December 31,
2023
2022
Assets
Current assets:
Cash and cash equivalents
$
36,946
$
26,795
Accounts receivable, net
11,554
10,665
Inventory
8,391
6,683
Prepaid expenses and other current
assets
988
604
Total current assets
57,879
44,747
Property and equipment, net
3,717
3,883
Right-of-use assets
5,495
6,641
Other assets
212
62
Total assets
$
67,303
$
55,333
Liabilities and Stockholders’
Equity
Current liabilities:
Accounts payable
$
2,916
$
2,778
Accrued liabilities
4,336
3,533
Deferred revenue
336
821
Current portion of long-term debt
—
2,594
Lease liabilities, current portion
1,190
1,122
Other liabilities
—
27
Total current liabilities
8,778
10,875
Long-term debt, net of current portion
—
—
Lease liabilities, net of current
portion
4,390
5,580
Long-term income tax liability
214
214
Total liabilities
$
13,382
$
16,669
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 December 31, 2023 and December 31, 2022,
respectively
—
—
Common stock, $0.0001 par value per share;
100,000,000 shares authorized; 21,080,472 and 20,374,288 shares
issued and outstanding as of December 31, 2023 and December 31,
2022, respectively
2
2
Additional paid-in capital
191,569
185,364
Accumulated deficit
(137,650
)
(146,702
)
Total stockholders’ equity
53,921
38,664
Total liabilities and stockholders’
equity
$
67,303
$
55,333
EVERSPIN TECHNOLOGIES,
INC.
Statements of Income and
Comprehensive Income
(In thousands, except share
and per share amounts)
(Unaudited)
Year Ended December
31,
2023
2022
Product sales
$
53,123
$
55,032
Licensing, royalty, patent, and other
revenue
10,642
4,953
Total revenue
63,765
59,985
Cost of product sales
24,693
25,112
Cost of licensing, royalty, patent, and
other revenue
1,827
928
Total cost of sales
26,520
26,040
Gross profit
37,245
33,945
Operating expenses:1
Research and development
11,776
11,108
General and administrative
14,296
11,741
Sales and marketing
5,288
4,869
Total operating expenses
31,360
27,718
Income from operations
5,885
6,227
Interest expense
(63
)
(274
)
Other income, net
3,214
190
Net income before income taxes
9,036
6,143
Income tax benefit (expense)
16
(14
)
Net income and comprehensive income
$
9,052
$
6,129
Net income per common share:
Basic
$
0.44
$
0.30
Diluted
$
0.42
$
0.29
Weighted average shares of common stock
outstanding:
Basic
20,748,302
20,130,336
Diluted
21,367,304
20,775,925
1Operating expenses include stock-based
compensation as follows:
Research and development
$
1,981
$
1,704
General and administrative
2,519
2,190
Sales and marketing
505
514
Total stock-based compensation
$
5,005
$
4,408
EVERSPIN TECHNOLOGIES,
INC.
Statements of Cash
Flows
(In thousands)
(Unaudited)
Year Ended December
31,
2023
2022
Cash flows from operating
activities
Net income
$
9,052
$
6,129
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization
1,205
982
Gain on sale of property and equipment
(15
)
(167
)
Stock-based compensation
5,005
4,408
Loss on prepayment and termination of
credit facility
170
—
Non-cash warrant revaluation
(25
)
(23
)
Non-cash interest expense
26
105
Changes in operating assets and
liabilities:
Accounts receivable
(889
)
(2,472
)
Inventory
(1,708
)
(287
)
Prepaid expenses and other current
assets
(384
)
158
Other assets
(150
)
(28
)
Accounts payable
499
563
Accrued liabilities
803
(46
)
Deferred revenue
(485
)
(11
)
Lease liabilities, net
24
182
Net cash provided by operating
activities
13,128
9,493
Cash flows from investing
activities
Purchases of property and equipment
(1,404
)
(2,788
)
Proceeds received from sale of property
and equipment
19
202
Net cash used in investing activities
(1,385
)
(2,586
)
Cash flows from financing
activities
Payments on long-term debt
(2,790
)
(2,400
)
Payments of debt issuance costs
—
(10
)
Proceeds from exercise of stock options
and purchase of shares in employee stock purchase plan
1,198
889
Net cash used in financing activities
(1,592
)
(1,521
)
Net increase in cash and cash
equivalents
10,151
5,386
Cash and cash equivalents at beginning of
period
26,795
21,409
Cash and cash equivalents at end of
period
$
36,946
$
26,795
Supplementary cash flow
information:
Interest paid
$
37
$
169
Operating cash flows paid for operating
leases
$
1,384
$
1,320
Financing cash flows paid for finance
leases
$
12
$
11
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
$
446
$
807
Cashless exercise of warrants
$
2
$
—
EVERSPIN TECHNOLOGIES,
INC.
Reconciliation of Adjusted
EBITDA
(In thousands)
(Unaudited)
Year Ended December
31,
2023
2022
Adjusted EBITDA reconciliation:
Net income
$
9,052
$
6,129
Depreciation and amortization
1,205
982
Stock-based compensation expense
5,005
4,408
Interest expense
63
274
Income tax (benefit) expense
(16
)
14
Adjusted EBITDA
$
15,309
$
11,807
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240228606222/en/
Investor Relations: Monica Gould The Blueshirt Group T:
212-871-3927 ir@everspin.com
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