Everspin Technologies, Inc. (Nasdaq: MRAM), the market leader in MRAM,
today announced financial results for the first quarter ended March 31,
2019.
First Quarter and Recent Highlights
- Total revenue was $10.0 million
- Gross margin improved sequentially to 48%
- Operating expenses decreased by 19% year-over-year
- Secured two design-ins for 28nm 1Gb STT-MRAM product
-
Support extended for 256Mb STT-MRAM in third enterprise storage array
product by lead all-flash array customer - Appointed Troy Winslow as Vice President of Global Sales
“Revenue in the quarter exceeded the high-end of our guidance range with
gross margins improving 350 basis points sequentially, reflecting yield
improvements on Toggle production,” stated Kevin Conley, Everspin’s
President and CEO. “We also continued to advance sampling of our 1Gb
STT-MRAM product with select customers and recently secured two
design-ins since introducing the product only a few months ago.
“Our first quarter results represent the new baseline upon which we are
building our future growth strategy. We remain focused on strategically
expanding high-value Toggle revenue opportunities, broadening the
customer base and ecosystem partners for our STT-MRAM products, as well
as maintaining disciplined execution across all areas of our business.”
First Quarter 2019 Results
Total revenue for the first quarter of 2019 was $10.0 million, compared
to $14.9 million in the first quarter of 2018, which included $5.5
million in licensing, royalty and other revenue, and $12.3 million in
the previous quarter.
Gross margin for the first quarter of 2019 was 47.7%, compared to 67.0%
in the first quarter of 2018, which included the benefit from a material
one-time licensing agreement, and 44.2% in the previous quarter.
Operating expenses for the first quarter of 2019 were $9.0 million,
compared to $11.1 million in the year-ago quarter and $8.8 million in
the previous quarter.
Net loss for the first quarter of 2019 was $4.3 million, or ($0.25) per
share, based on 17.1 million weighted-average shares outstanding,
compared to a net loss of $1.3 million, or ($0.09) per share, in the
first quarter of 2018, and a net loss of $3.5 million, or ($0.20) per
share, in the fourth quarter of 2018.
Cash and cash equivalents as of March 31, 2019 were $18.5 million,
compared to $23.4 million at the end of the fourth quarter of 2018.
Business Outlook
For the second quarter of 2019, Everspin expects total revenue in the
range of $9.6 million and $10.0 million. Net loss per share is expected
to be between ($0.27) and ($0.23) based on an weighted-average share
count of 17.2 million shares outstanding.
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 1435658.
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 until May 15, 2019, at midnight
Eastern Time. The replay can be accessed by dialing 1-855-859-2056 and
using the passcode 1435658. International callers should dial
+1-404-537-3406 and enter the same passcode at the prompt.
About Everspin Technologies
Headquartered in Chandler, Arizona, Everspin Technologies, Inc. is the
worldwide leader in the design, volume production and distribution of
Magnetoresistive RAM (MRAM) into markets and applications where data
persistence, performance, and endurance are paramount. Serving
applications across the data center, industrial, and transportation
markets, Everspin has built the strongest and fastest-growing foundation
of MRAM users in the world. For more information, visit www.everspin.com.
Cautionary Statement Regarding Forward-Looking Statements
This press release contains forward-looking statements regarding future
events 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-K filed with the Securities and Exchange
Commission on March 15, 2019, 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) | |||||||||||
| March 31, | December 31, | ||||||||||
| 2019 | 2018 | ||||||||||
| Assets | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 18,515 | $ | 23,379 | |||||||
| Accounts receivable, net | 5,982 | 7,522 | |||||||||
| Inventory | 9,659 | 9,097 | |||||||||
| Prepaid expenses and other current assets | 595 | 688 | |||||||||
| Total current assets | 34,751 | 40,686 | |||||||||
| Property and equipment, net | 4,108 | 4,286 | |||||||||
| Right-of-use assets | 3,272 | — | |||||||||
| Other assets | 73 | 73 | |||||||||
| Total assets | $ | 42,204 | $ | 45,045 | |||||||
| Liabilities and Stockholders’ Equity | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable | $ | 1,692 | $ | 2,637 | |||||||
| Accrued liabilities | 4,424 | 5,001 | |||||||||
| Current portion of long-term debt | 5,972 | 5,977 | |||||||||
| Lease liabilities | 1,542 | — | |||||||||
| Total current liabilities | 13,630 | 13,615 | |||||||||
| Long-term debt, net of current portion | 5,075 | 6,509 | |||||||||
| Lease liabilities, net of current portion | 2,117 | — | |||||||||
| Total liabilities | 20,822 | 20,124 | |||||||||
| 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, 2019 and December 31, 2018 |
— | — | |||||||||
|
Common stock, $0.0001 par value per share; 100,000,000 shares authorized; 17,108,063 and 17,095,456 shares issued and outstanding as of March 31, 2019 and December 31, 2018 |
2 | 2 | |||||||||
| Additional paid-in capital | 159,629 | 158,912 | |||||||||
| Accumulated deficit | (138,249 | ) | (133,993 | ) | |||||||
| Total stockholders’ equity | 21,382 | 24,921 | |||||||||
| Total liabilities and stockholders’ equity | $ | 42,204 | $ | 45,045 | |||||||
| EVERSPIN TECHNOLOGIES, INC. | |||||||||||
| Condensed Statements of Operations and Comprehensive Loss | |||||||||||
| (In thousands, except share and per share amounts) | |||||||||||
| (Unaudited) | |||||||||||
| Three Months Ended | |||||||||||
| March 31, | |||||||||||
| 2019 | 2018 | ||||||||||
| Product sales | $ | 9,023 | $ | 9,365 | |||||||
| Licensing, royalty, and other revenue | 1,003 | 5,488 | |||||||||
| Total revenue | 10,026 | 14,853 | |||||||||
| Cost of sales | 5,241 | 4,898 | |||||||||
| Gross profit | 4,785 | 9,955 | |||||||||
| Operating expenses: | |||||||||||
| Research and development | 3,998 | 6,480 | |||||||||
| General and administrative | 3,595 | 3,219 | |||||||||
| Sales and marketing | 1,364 | 1,366 | |||||||||
| Total operating expenses | 8,957 | 11,065 | |||||||||
| Loss from operations | (4,172 | ) | (1,110 | ) | |||||||
| Interest expense | (211 | ) | (211 | ) | |||||||
| Other income, net | 127 | 44 | |||||||||
| Net loss and comprehensive loss | $ | (4,256 | ) | $ | (1,277 | ) | |||||
| Net loss per common share, basic and diluted | $ | (0.25 | ) | $ | (0.09 | ) | |||||
|
Weighted-average shares used to compute net loss per common share, basic and diluted |
17,097,999 | 14,789,036 | |||||||||
| EVERSPIN TECHNOLOGIES, INC. | |||||||||||
| Condensed Statement of Cash Flows | |||||||||||
| (In thousands) | |||||||||||
| (Unaudited) | |||||||||||
| Three Months Ended | |||||||||||
| March 31, | |||||||||||
| 2019 | 2018 | ||||||||||
| Cash flows from operating activities | |||||||||||
| Net loss | $ | (4,256 | ) | $ | (1,277 | ) | |||||
|
Adjustments to reconcile net loss to net cash used in operating activities: |
|||||||||||
| Depreciation and amortization | 393 | 373 | |||||||||
| Loss on disposal of property and equipment | 20 | — | |||||||||
| Stock-based compensation | 704 | 625 | |||||||||
| Non-cash interest expense | 81 | 100 | |||||||||
|
Compensation expense related to vesting of common stock to GLOBALFOUNDRIES |
— | 237 | |||||||||
| Changes in operating assets and liabilities: | |||||||||||
| Accounts receivable | 1,540 | (5,580 | ) | ||||||||
| Inventory | (562 | ) | 888 | ||||||||
| Prepaid expenses and other current assets | 93 | (617 | ) | ||||||||
| Other assets | — | (20 | ) | ||||||||
| Accounts payable | (955 | ) | 1,315 | ||||||||
| Accrued liabilities | (187 | ) | 257 | ||||||||
| Lease liabilities | (20 | ) | — | ||||||||
| Shipping term reversal | — | (39 | ) | ||||||||
| Net cash used in operating activities | (3,149 | ) | (3,738 | ) | |||||||
| Cash flows from investing activities | |||||||||||
| Purchases of property and equipment | (225 | ) | (244 | ) | |||||||
| Net cash used in investing activities | (225 | ) | (244 | ) | |||||||
| Cash flows from financing activities | |||||||||||
| Proceeds from the issuance of common stock, net of offering costs | — | 24,609 | |||||||||
| Payments on debt | (1,500 | ) | — | ||||||||
| Payments on finance lease obligation | (3 | ) | (3 | ) | |||||||
|
Proceeds from exercise of stock options and purchase of shares in employee stock purchase plan |
13 | 309 | |||||||||
| Net cash (used in) provided by financing activities | (1,490 | ) | 24,915 | ||||||||
| Net (decrease) increase in cash and cash equivalents | (4,864 | ) | 20,933 | ||||||||
| Cash and cash equivalents at beginning of period | 23,379 | 12,950 | |||||||||
| Cash and cash equivalents at end of period | $ | 18,515 | $ | 33,883 | |||||||
| Supplementary cash flow information: | |||||||||||
| Interest paid | $ | 135 | $ | 111 | |||||||
| Operating cash flows paid for operating leases | $ | 416 | $ | — | |||||||
| Financing cash flows paid for finance leases | $ | 3 | $ | — | |||||||
| Non-cash investing and financing activities: | |||||||||||
| Purchases of property and equipment in accounts payable | $ | 20 | $ | 73 | |||||||
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