CHANDLER, Ariz.--(BUSINESS WIRE)--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

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

 

Contacts

Everspin Investor Relations Contact:

Leanne K. Sievers,

President

Shelton Group Investor Relations

T: 949-224-3874

E: