Everspin: Fiscal 1Q23 Financial Results

Everspin Technologies, Inc. announced preliminary unaudited financial results for the first quarter ended March 31, 2023.

1FQ23 highlights

• Revenue came in at the top end of guidance at $14.8 million.
• The company reported net income of $0.8 million for 1FQ23, compared to $0.6 million for 4FQ22.
• Adjusted EBITDA for 1FQ23 was $2.3 million, compared to $2.1 million for 4FQ22.
  Basic EPS for 1FQ23 was $0.04 compared to $0.03 in 4FQ22.
• Generated cash flows from operating activities of $1.2 million for 1FQ23.
• Paid off its term loan and line of credit in 1FQ23, ending with cash and cash equivalents of $24.2 million.

“Everspin was GAAP net income positive for the 8th quarter in a row driven by growing demand of our Toggle and STT-MRAM products,” said Sanjeev Aggarwal, president and CEO. “We are excited to see the interest from our customers to evaluate and design in our new xSPI family of STT-MRAM products. This family of STT-MRAM products was awarded Best in Show Memory and Storage Category at the Embedded World Exhibition & Conference, 2023.”

1FQ23 Results

• Total revenue was $14.8 million compared to $15.7 million reported in 4FQ22. This is an increase of 3% compared to $14.3 million of revenue in 1FQ22.
• MRAM product sales, which includes both Toggle and STT-MRAM revenue, was $13.8 million, compared to $14.6 million reported in 4FQ22. This is an increase of 9% from the $12.7 million reported in 1FQ22.
• Licensing, royalties, patents and other revenue remained consistent compared to 4FQ22 at $1.1 million. This is compared to $1.7 million in 1FQ22.
• The increase in total revenue compared to 1FQ22 was due to strong toggle demand and sales.
• Gross margin was 56.8%, compared to 51.4% in the fourth quarter of 2022 and 58.0% in 1FQ22.
• GAAP operating expenses was $7.7 million, compared to $7.5 million in 4FQ22 and $6.3 million in 1FQ22. GAAP operating expenses increased compared to 1FQ22 as a result of increased development costs related to the new xSPI family of lower density STT-MRAM products.
• GAAP net income was $0.8 million, or $0.04 per basic share, based on 20.5 million weighted-average basic common shares outstanding. This is compared to net income of $0.6 million, or $0.03 per basic share, in 4FQ22 and net income of $1.9 million, or $0.10 per basic share, in 1FQ22.
• Cash and cash equivalents as of the end 1FQ23 were $24.2 million, compared to $26.8 million as of the end of 4FQ22, and $19.9 million as of 1FQ22.
• Everspin generated cash flows from operating activities of $1.2 million, compared to $5.2 million in 4FQ22, and used cash of $1.0 million in 1FQ22.

Business outlook
In 2FQ23, the firm expects total revenue in a range of $14.5 million to $15.5 million. It 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.