The Company continues growth into 2022 with profitable first
quarter results
Everspin Technologies, Inc. (NASDAQ: MRAM), the market leader in
MRAM, today announced preliminary unaudited financial results for
the first quarter ended March 31, 2022.
First Quarter 2022 Highlights
- Q1’22 revenue increased $4.0 million, or 39%, to $14.3 million
from $10.3 million for Q1’21.
- The Company reported net income of $1.9 million for Q1’22,
compared to a net loss of $0.5 million for Q1’21.
- Adjusted EBITDA for Q1’22 improved to $3.1 million, compared to
$0.8 million for Q1’21.
- Basic EPS for Q1’22 was $0.10 compared to a net loss per share
of $0.02 for Q1’21.
“The Everspin team delivered an excellent quarter focusing on
sales, yield improvement, and operational discipline in this tough
supply chain environment,” said Sanjeev Aggarwal, President &
CEO. “We are optimistic about our business outlook and expect our
new xSPI family of Low Density STT-MRAM products to drive growth
across industrial and IoT markets.”
First Quarter 2022 Results
Total revenue for the first quarter of 2022 was $14.3 million, a
decrease of 21% from the $18.2 million reported in the fourth
quarter of 2021, which primarily reflects $3.9M in revenue
recognized in the fourth quarter of 2021 from a one-time
intellectual property (“IP”) monetization deal. This is an increase
of 39% compared to $10.3 million of revenue in the first quarter of
2021.
MRAM product sales in the first quarter of 2022, which includes
both Toggle and STT-MRAM revenue, was $12.7 million compared to
$12.6 million in the fourth quarter of 2021 and $9.1 million in the
first quarter of 2021.
Licensing, Royalties, Patents and Other revenue in the first
quarter of 2022 was $1.7 million compared to $5.6 million in the
fourth quarter of 2021 and $1.2 million in the first quarter of
2021.
The increase in total revenue for the first quarter of 2022
compared to the first quarter of 2021 was due to strong Toggle
sales and an increase in revenue recognized from a U.S. Government
RAD-Hard program entered into during the second quarter of
2021.
Gross margin for the first quarter of 2022 was 58.0%, compared
to 62.8% in the fourth quarter of 2021, and 58.2% in the first
quarter of 2021. The decrease in gross margin in the first quarter
of 2022 compared to the fourth quarter of 2021 was attributable to
higher margin related to the IP monetization deal in the fourth
quarter of 2021 as noted above.
GAAP operating expenses was $6.3 million in the first quarter of
2022, compared to $7.7 million in the fourth quarter of 2021 and
$6.3 million in the first quarter of 2021. GAAP operating expenses
decreased in the first quarter of 2022 compared to the fourth
quarter of 2021 as a result of decreased research and development
spend related to the new 28nm product sampling this quarter.
GAAP net income for the first quarter of 2022 was $1.9 million,
or $0.10 per basic share, based on 19.9 million weighted-average
basic common shares outstanding. This compares to a net income of
$3.7 million, or $0.19 per basic share, in the fourth quarter of
2021 and a net loss of $0.5 million, or ($0.02) per basic share, in
the first quarter of 2021.
Business Outlook
For the second quarter 2022, Everspin expects total revenue in a
range of $13.6 million to $14.6 million. Everspin expects industry
supply constraints to limit supply and push some unfulfilled
customer demand to the second half of the year. Everspin expects
GAAP net income (loss) per basic share to be between ($0.06) and
breakeven, primarily driven 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 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
We supplement the reporting of our 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. We define Adjusted EBITDA as net income
(loss) adjusted for interest expense, taxes, depreciation and
amortization, stock- based compensation expense, and restructuring
costs if any.
Our management and board of directors use 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. Accordingly, we believe
that Adjusted EBITDA provides useful information for investors in
understanding and evaluating our operating results in the same
manner as our management and our 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
(loss) 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. We encourage investors to review our 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, May 11, 2022, at 5:00 p.m. Eastern Time. Interested
participants can access the call by dialing 1-844-889-7788
and providing passcode 6790186. 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 May 18, 2022. The
replay can be accessed by dialing 1-855-859-2056 and using the
passcode 6790186. 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.” Forward-looking statements are identified by
words such as “believe”, “will”, “may”, “estimate”, “continue”,
“anticipate”, “intend”, “should”, “plan”, “expect”, “predict”,
“could”, “potentially" or the negative of these terms or similar
expressions. These include, but are not limited to, our future
plans, strategies, objectives, expectations, intentions and
financial performance, including the outlook and guidance for
second quarter 2022 results; our expectations regarding supply
constraints, expenses relating to 28nm STT MRAM product development
and price increases from our suppliers; our expectations that our
new xSPI family of Low Density STT-MRAM products will drive growth
across industrial and IoT markets; and the assumptions that
underlie these statements. 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, 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)
March 31,
December 31,
2022
2021
Assets
Current assets:
Cash and cash equivalents
$
19,885
$
21,409
Accounts receivable, net
10,240
8,193
Inventory
6,208
6,396
Prepaid expenses and other current
assets
636
762
Total current assets
36,969
36,760
Property and equipment, net
959
973
Right-of-use assets
3,974
913
Other assets
769
734
Total assets
$
42,671
$
39,380
Liabilities and Stockholders’
Equity
Current liabilities:
Accounts payable
$
2,287
$
1,776
Accrued liabilities
1,565
3,579
Deferred revenue
330
832
Current portion of long-term debt
3,377
3,370
Lease liabilities
942
724
Other liabilities
39
50
Total current liabilities
8,540
10,331
Long-term debt, net of current portion
954
1,529
Lease liabilities, net of current
portion
2,897
68
Long-term income tax liability
214
214
Total liabilities
$
12,605
$
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 March 31, 2022 and December 31, 2021
—
—
Common stock, $0.0001 par value per share;
100,000,000 shares authorized; 19,970,786 and 19,858,460 shares
issued and outstanding as of March 31, 2022, and December 31,
2021
2
2
Additional paid-in capital
180,960
180,067
Accumulated deficit
(150,896
)
(152,831
)
Total stockholders’ equity
30,066
27,238
Total liabilities and stockholders’
equity
$
42,671
$
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 March
31,
2022
2021
Product sales
$
12,671
$
9,068
Licensing, royalty, patent, and other
revenue
1,676
1,212
Total revenue
14,347
10,280
Cost of product sales
5,752
4,256
Cost of licensing, royalty, patent, and
other revenue
272
39
Total cost of sales
6,024
4,295
Gross profit
8,323
5,985
Operating expenses:1
Research and development
2,436
2,439
General and administrative
2,729
2,843
Sales and marketing
1,134
987
Total operating expenses
6,299
6,269
Income (loss) from operations
2,024
(284
)
Interest expense
(75
)
(152
)
Other expense, net
(14
)
(15
)
Net income (loss) before income taxes
1,935
(451
)
Income tax expense
—
(9
)
Net income (loss) and comprehensive income
(loss)
$
1,935
$
(460
)
Net income (loss) per common share:
Basic
$
0.10
$
(0.02
)
Diluted
$
0.09
$
(0.02
)
Weighted average shares of common stock
outstanding:
Basic
19,896,654
19,092,367
Diluted
20,726,193
19,092,367
1Operating expenses include stock-based
compensation as follows:
Research and development
$
333
$
181
General and administrative
371
485
Sales and marketing
120
77
Total stock-based compensation
$
824
$
743
EVERSPIN TECHNOLOGIES,
INC.
Condensed Statement of Cash
Flows
(In thousands)
(Unaudited)
Three Months Ended March
31,
2022
2021
Cash flows from operating
activities
Net income (loss)
$
1,935
$
(460
)
Adjustments to reconcile net income (loss)
to net cash provided by (used in) operating activities:
Depreciation and amortization
258
383
Stock-based compensation
824
743
Non-cash warrant revaluation
(11
)
4
Non-cash interest expense
32
86
Changes in operating assets and
liabilities:
Accounts receivable
(2,047
)
(2,708
)
Inventory
188
363
Prepaid expenses and other current
assets
126
62
Right-of-use assets
(3,061
)
343
Other assets
(13
)
—
Accounts payable
267
(63
)
Accrued liabilities
(2,014
)
280
Deferred revenue
(502
)
3,000
Lease liabilities
3,047
(382
)
Net cash (used in) provided by operating
activities
(971
)
1,651
Cash flows from investing
activities
Purchases of property and equipment
(22
)
(309
)
Net cash used in investing activities
(22
)
(309
)
Cash flows from financing
activities
Payments on long-term debt
(600
)
(600
)
Proceeds from exercise of stock options
and purchase of shares in employee stock purchase plan
69
144
Net cash used in financing activities
(531
)
(456
)
Net (decrease) increase in cash and cash
equivalents
(1,524
)
886
Cash and cash equivalents at beginning of
period
21,409
14,599
Cash and cash equivalents at end of
period
$
19,885
$
15,485
Supplementary cash flow
information:
Interest paid
$
43
$
66
Operating cash flows paid for operating
leases
$
318
$
413
Financing cash flows paid for finance
leases
$
2
$
—
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
$
257
$
—
Bonus settled in shares of common
stock
$
—
$
364
EVERSPIN TECHNOLOGIES,
INC.
Adjusted EBITDA
Reconciliation
(In thousands)
(Unaudited)
Three Months Ended
March 31, 2022
December 31, 2021
March 31, 2021
Adjusted EBITDA reconciliation:
Net income (loss)
$
1,935
$
3,667
$
(460
)
Depreciation and amortization
258
338
383
Stock-based compensation expense
824
753
743
Interest expense
75
86
152
Income tax expense
-
4
-
Adjusted EBITDA
$
3,092
$
4,848
$
818
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220511006047/en/
Anuj Aggarwal, CFO 480-347-1082 anuj.aggarwal@everspin.com
Everspin Technologies (NASDAQ:MRAM)
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