Achieves Another Quarter of Sequential
Growth Driven by Record STT-MRAM Revenue
Everspin Technologies, Inc. (NASDAQ: MRAM), the market leader in
MRAM, today announced financial results for the second quarter
ended June 30, 2020.
Second Quarter and Recent Highlights
- Total revenue increased 37% year-over-year and 17% sequentially
to $11.8 million
- Operating expenses declined 18% over the prior year period
- GAAP loss improved to $1.3 million, or ($0.07) per share, and
non-GAAP loss to $0.4 million, or ($0.02), compared to $3.7
million, or ($0.21) per share, and $2.9 million, or ($0.17) per
share, respectively, in the second quarter of 2019
- Achieved positive adjusted EBITDA of $0.2 million, compared to
a negative ($2.2) million in the year-ago quarter
- Appointed Daniel Berenbaum CFO bringing strong semiconductor
finance and Wall Street experience to the executive team
- Ended quarter with cash and equivalents of $12.9 million
“We extended our momentum into the second quarter, achieving the
fourth consecutive quarter of growth including record revenue from
the ramp of our 1Gb STT-MRAM product,” stated Kevin Conley,
Everspin’s President and CEO. “A significant contributor to this
growth was our ability to respond to a surge in demand from our OEM
customers that supply the data center market.
“Entering the third quarter, we are seeing a delay of customers’
new product introduction plans, resulting in reduced visibility and
expectations for the quarter. Despite these current market
challenges, we remain encouraged about our future growth
opportunities, growing pipeline of business and improved financial
positioning.”
Second Quarter 2020 Results
Total revenue for the second quarter of 2020 was $11.8 million,
an increase of 17% from the $10.1 million last quarter and 37% over
the $8.6 million reported in the second quarter of 2019.
Gross margin for the second quarter of 2020 was 43.9%, compared
to 52.9% in the prior quarter and 46.5% in the second quarter of
2019.
GAAP operating expenses for the second quarter of 2020 decreased
to $6.3 million, compared to $6.9 million in the first quarter of
2020 and $7.6 million in the second quarter of 2019. On a non-GAAP
basis, operating expenses for the second quarter of 2020 were $5.4
million, compared to $6.2 million in the prior quarter and $6.8
million in the year-ago quarter.
GAAP net loss for the second quarter of 2020 was $1.3 million,
or ($0.07) per share, based on 18.7 million weighted-average shares
outstanding. This compares to a net loss of $1.7 million, or
($0.10) per share, in the first quarter of 2020 and a net loss of
$3.7 million, or ($0.21) per share, in the second quarter of
2019.
On a non-GAAP basis, net loss for the second quarter of 2020 was
$0.4 million, or ($0.02) per share, compared to a net loss of $1.0
million, or ($0.05) per share, in the prior quarter, and a net loss
of $2.9 million, or ($0.17) per share, in the second quarter of
2019.
Adjusted EBITDA for the second quarter of 2020 improved to a
positive $0.2 million, compared to a negative ($0.3) million last
quarter and a negative ($2.2) million in the prior year period.
Cash and cash equivalents as of June 30, 2020 were $12.9
million, compared to $14.0 million at the end of the first quarter
of 2020.
Business Outlook
For the third quarter of 2020, Everspin expects total revenue of
between $10.0 million and $10.8 million, compared to $9.2 million
in the year-ago quarter. GAAP net loss is expected to range between
($0.11) and ($0.05) per share. Excluding stock-based compensation
expense of $0.05 per share, non-GAAP net loss is expected to range
between a loss of ($0.06) per share and breakeven.
Conference Call
Everspin will host a conference call for analysts and investors
today at 5:00 p.m. Eastern Time. Interested participants can access
the call by dialing 1-844-889-7788 and providing passcode 3958179.
International callers may join the call by dialing +1-661-378-9932, using the same code.
The call will also be available as a live and archived webcast in
the Investor Relations section of the company’s website at
investor.everspin.com.
A telephone replay of the conference call will be available
approximately two hours after the call through August 13, 2020. The
replay can be accessed by dialing 1-855-859-2056 and using the
passcode 3958179. International callers should dial +1-404-537-3406
and enter the same passcode at the prompt.
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.” Actual results could differ materially from
these forward-looking statements as a result of certain factors,
including, without limitation, the risks set forth in Everspin’s
Form 10-Qs filed with the Securities and Exchange Commission on May
8, 2020, and August 6, 2020, under the caption “Risk Factors.”
Subsequent events may cause these expectations to change, and
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,
2020
2019
Assets
Current assets:
Cash and cash equivalents
$
12,916
$
14,487
Accounts receivable, net
7,339
5,799
Inventory
8,368
7,863
Prepaid expenses and other current
assets
501
539
Total current assets
29,124
28,688
Property and equipment, net
2,908
3,479
Right-of-use assets
2,985
3,132
Other assets
73
73
Total assets
$
35,090
$
35,372
Liabilities and Stockholders’
Equity
Current liabilities:
Accounts payable
$
2,074
$
2,873
Accrued liabilities
1,392
2,727
Current portion of long-term debt
1,073
670
Operating lease liabilities
1,546
1,582
Other liabilities
44
42
Total current liabilities
6,129
7,894
Long-term debt, net of current portion
6,893
7,149
Operating lease liabilities, net of
current portion
1,656
1,840
Total liabilities
14,678
16,883
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, 2020 and December 31, 2019
—
—
Common stock, $0.0001 par value per share;
100,000,000 shares authorized; 18,869,775 and 18,081,753 shares
issued and outstanding as of June 30, 2020 and December 31,
2019
2
2
Additional paid-in capital
172,098
167,149
Accumulated deficit
(151,688
)
(148,662
)
Total stockholders’ equity
20,412
18,489
Total liabilities and stockholders’
equity
$
35,090
$
35,372
EVERSPIN TECHNOLOGIES,
INC.
Condensed Statements of
Operations and Comprehensive Loss
(In thousands, except share
and per share amounts)
(Unaudited)
Three Months Ended June
30,
Six Months Ended June
30,
2020
2019
2020
2019
Product sales
$
10,927
$
8,003
$
20,562
$
17,026
Licensing, royalty, and other revenue
899
643
1,372
1,646
Total revenue
11,826
8,646
21,934
18,672
Cost of sales
6,635
4,627
11,392
9,868
Gross profit
5,191
4,019
10,542
8,804
Operating expenses:1
Research and development
2,774
3,519
5,804
7,517
General and administrative
2,448
2,856
5,248
6,451
Sales and marketing
1,056
1,239
2,159
2,603
Total operating expenses
6,278
7,614
13,211
16,571
Loss from operations
(1,087
)
(3,595
)
(2,669
)
(7,767
)
Interest expense
(172
)
(186
)
(344
)
(397
)
Other (expense) income, net
(35
)
111
(13
)
238
Net loss and comprehensive loss
$
(1,294
)
$
(3,670
)
$
(3,026
)
$
(7,926
)
Net loss per common share, basic and
diluted
$
(0.07
)
$
(0.21
)
$
(0.16
)
$
(0.46
)
Weighted-average shares used to compute
net loss per common share, basic and diluted
18,747,124
17,137,338
18,585,339
17,117,777
1Operating expenses include stock-based
compensation as follows:
Research and development
$
194
$
161
$
356
$
308
General and administrative
646
556
1,231
1,065
Sales and marketing
78
81
136
129
Total stock-based compensation
$
918
$
798
$
1,723
$
1,502
EVERSPIN TECHNOLOGIES,
INC.
Reconciliation of GAAP and
Non-GAAP Financial Information
(In thousands, except share
and per share amounts)
(Unaudited)
Three Months Ended
Jun 30, 2020
Mar 31, 2020
Jun 30, 2019
Reconciliation of GAAP and non-GAAP
operating expenses
GAAP operating expenses
$
6,278
$
6,933
$
7,614
Reconciling item included in research and
development
Stock-based compensation
160
137
133
Reconciling item included in selling,
general and administrative
Stock-based compensation
724
643
636
Total reconciling items included in
operating expenses
884
780
769
Non-GAAP operating expenses
$
5,394
$
6,153
$
6,845
GAAP NET INCOME (LOSS)
$
(1,294
)
$
(1,732
)
$
(3,670
)
Reconciling items included in operating
expenses
884
780
769
Non-GAAP net income (loss)
$
(410
)
$
(951
)
$
(2,901
)
Non-GAAP net income (loss) per share,
basic and diluted
$
(0.02
)
$
(0.05
)
$
(0.17
)
Weighted average shares to compute net
loss per common share, basic and diluted
18,747
18,056
17,137
EVERSPIN TECHNOLOGIES,
INC.
Reconciliation of Adjusted
EBITDA
(In thousands)
(Unaudited)
Three Months Ended
Jun 30, 2020
Mar 31, 2020
Jun 30, 2019
Adjusted EBITDA reconciliation:
Net loss
$
(1,294
)
$
(1,732
)
$
(3,670
)
Depreciation and amortization
404
409
483
Stock-based compensation expense
918
805
798
Interest Expense
172
172
186
Adjusted EBITDA
$
200
$
(346
)
$
(2,203
)
Our management and board of directors use
Non-GAAP operating expenses, Non-GAAP net income (loss) and
Adjusted EBITDA to understand and evaluate our operating
performance and trends, to prepare and approve our annual budget
and to develop short-term and long-term operating and financing
plans.
EVERSPIN TECHNOLOGIES,
INC.
Condensed Statement of Cash
Flows
(In thousands)
(Unaudited)
Six Months Ended June
30,
2020
2019
Cash flows from operating
activities
Net loss
$
(3,026
)
$
(7,926
)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization
813
876
Loss on disposal of property and
equipment
—
20
Stock-based compensation
1,723
1,502
Non-cash gain on warrant revaluation
7
—
Non-cash interest expense
147
153
Changes in operating assets and
liabilities:
Accounts receivable
(1,540
)
1,658
Inventory
(505
)
133
Prepaid expenses and other current
assets
38
200
Accounts payable
(776
)
(456
)
Accrued liabilities
(1,008
)
(907
)
Lease liabilities
(73
)
(43
)
Net cash used in operating activities
(4,200
)
(4,790
)
Cash flows from investing
activities
Purchases of property and equipment
(277
)
(461
)
Net cash used in investing activities
(277
)
(461
)
Cash flows from financing
activities
Payments on debt
—
(3,000
)
Payments on finance lease obligation
(5
)
(5
)
Proceeds from exercise of stock options
and purchase of shares in employee stock purchase plan
827
150
Proceeds from issuance of common stock in
at-the-market offering, net of issuance costs
2,084
—
Net cash provided by (used in) financing
activities
2,906
(2,855
)
Net decrease in cash and cash
equivalents
(1,571
)
(8,106
)
Cash and cash equivalents at beginning of
period
14,487
23,379
Cash and cash equivalents at end of
period
$
12,916
$
15,273
Supplementary cash flow
information:
Interest paid
$
197
$
257
Operating cash flows paid for operating
leases
$
862
$
837
Financing cash flows paid for finance
leases
$
5
$
5
Non-cash investing and financing
activities:
Right-of-use assets obtained in exchange
for new operating leases
$
—
$
23
Increase of right-of-use asset and lease
liability due to lease modification
$
545
$
—
Purchase of property and equipment in
accounts payable and accrued liabilities
$
22
$
27
Bonus settled in shares of common
stock
$
315
$
—
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200806006014/en/
Company Contact: Daniel Berenbaum, CFO T: 480-347-1099 E:
daniel.berenbaum@everspin.com
Investor Relations Contact: Leanne K. Sievers, President
Shelton Group Investor Relations T: 949-224-3874 E:
sheltonir@sheltongroup.com
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