CHANDLER, Ariz.--(BUSINESS WIRE)--Everspin Technologies, Inc. (Nasdaq: MRAM), the market leader in MRAM, today announced financial results for the third quarter ended September 30, 2019.

Third Quarter and Recent Highlights



  • Total revenue was $9.2 million, up 6% sequentially and above the high-end of guidance


  • Achieved record STT-MRAM revenue, which included both 256Mb and 1Gb devices


  • Signed IP assignment and cross-licensing agreement with Seagate Technology, demonstrating the strength of its MRAM intellectual property portfolio


  • Expanded Toggle product portfolio with additional densities targeting new market applications


  • Reduced cash used for operations to $770,000 from $1.8 million in the prior quarter

“Revenue in the quarter was above the high-end of our guidance range, driven by record revenue from our STT-MRAM products combined with a return to growth for our Toggle products,” stated Kevin Conley, Everspin’s President and CEO. “Furthermore, our ongoing focus on closely managing expenses and cash utilization have contributed to continued improvements in our operating results and positions us to benefit from increased leverage as revenue grows.

“Also during the quarter, we made further progress on customer qualifications for our 1Gb STT-MRAM device, while continuing to gain traction on our efforts toward advancing the MRAM ecosystem with enterprise storage controller companies. Looking forward, our priority remains on growing our design win pipeline and targeting new opportunities in secular growth markets with an expanded product portfolio based on both Toggle and STT-MRAM technologies.”


Third Quarter 2019 Results

Total revenue for the third quarter of 2019 was $9.2 million, compared to $11.5 million in the third quarter of 2018 and $8.6 million in the previous quarter.

Gross margin for the third quarter of 2019 was 47.4%, and compares to 47.0% in the third quarter of 2018 and 46.5% in the previous quarter.

Operating expenses for the third quarter of 2019 were $7.9 million, compared to the $10.9 million in the year-ago quarter and $7.6 million in the previous quarter.

Net loss for the third quarter of 2019 was $3.7 million, or ($0.21) per share, based on 17.3 million weighted-average shares outstanding, compared to a net loss of $5.6 million, or ($0.33) per share, in the third quarter of 2018, and a net loss of $3.7 million, or ($0.21) per share, in the second quarter of 2019.

Cash and cash equivalents as of September 30, 2019 were $14.8 million, compared to $15.3 million at the end of the second quarter of 2019. During the quarter, the Company issued new shares through its at-the-market equity facility, resulting in net proceeds $2.2 million.

Business Outlook

For the fourth quarter of 2019, Everspin expects total revenue in the range of $9.3 million and $9.7 million. Net loss per share is expected to be between ($0.18) and ($0.14) based on a weighted-average share count of 17.4 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 3075878. 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 November 14, 2019. The replay can be accessed by dialing 1-855-859-2056 and using the passcode 3075878. 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-Q filed with the Securities and Exchange Commission on August 7, 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)



(Unaudited)



 



 



September 30,



 



December 31,



 



 



2019



 



2018



Assets



 



 



 



 



 



 



Current assets:



 



 



 



 



 



 



Cash and cash equivalents



 



$



14,780



 



 



$



23,379



 



Accounts receivable, net



 



 



5,568



 



 



 



7,522



 



Inventory



 



 



8,318



 



 



 



9,097



 



Prepaid expenses and other current assets



 



 



222



 



 



 



688



 



Total current assets



 



 



28,888



 



 



 



40,686



 



Property and equipment, net



 



 



3,558



 



 



 



4,286



 



Right-of-use assets



 



 



2,595



 



 



 






 



Other assets



 



 



73



 



 



 



73



 



Total assets



 



$



35,114



 



 



$



45,045



 



 



 



 



 



 



 



 



Liabilities and Stockholders’ Equity



 



 



 



 



 



 



Current liabilities:



 



 



 



 



 



 



Accounts payable



 



$



3,178



 



 



$



2,637



 



Accrued liabilities



 



 



3,167



 



 



 



5,001



 



Current portion of long-term debt



 



 



72



 



 



 



5,977



 



Operating lease liabilities



 



 



1,606



 



 



 






 



Other liabilities



 



 



48



 



 



 






 



Total current liabilities



 



 



8,071



 



 



 



13,615



 



Long-term debt, net of current portion



 



 



7,676



 



 



 



6,509



 



Operating lease liabilities, net of current portion



 



 



1,307



 



 



 






 



Total liabilities



 



 



17,054



 



 



 



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 September 30, 2019 and December 31, 2018



 



 






 



 



 






 



Common stock, $0.0001 par value per share; 100,000,000 shares authorized; 17,535,746 and 17,095,456 shares issued and outstanding as of September 30, 2019 and December 31, 2018



 



 



2



 



 



 



2



 



Additional paid-in capital



 



 



163,640



 



 



 



158,912



 



Accumulated deficit



 



 



(145,582



)



 



 



(133,993



)



Total stockholders’ equity



 



 



18,060



 



 



 



24,921



Total liabilities and stockholders’ equity



$



35,114



 



 



$



45,045



EVERSPIN TECHNOLOGIES, INC.


Condensed Statements of Operations and Comprehensive Loss



(In thousands, except share and per share amounts)



(Unaudited)



 



 



Three Months Ended



 



Nine Months Ended



 



 



September 30,



 



September 30,



 



 



2019



 



2018



 



2019



 



2018



Product sales



 



$



8,370



 



 



$



10,469



 



 



$



25,396



 



 



$



29,283



 



Licensing, royalty, and other revenue



 



 



808



 



 



 



1,049



 



 



 



2,454



 



 



 



7,853



 



Total revenue



 



 



9,178



 



 



 



11,518



 



 



 



27,850



 



 



 



37,136



 



Cost of sales



 



 



4,824



 



 



 



6,109



 



 



 



14,692



 



 



 



17,235



 



Gross profit



 



 



4,354



 



 



 



5,409



 



 



 



13,158



 



 



 



19,901



 



Operating expenses:



 



 



 



 



 



 



 



 



 



 



 



 



Research and development



 



 



3,395



 



 



 



6,453



 



 



 



10,912



 



 



 



19,706



 



General and administrative



 



 



3,050



 



 



 



2,913



 



 



 



9,501



 



 



 



9,461



 



Sales and marketing



 



 



1,491



 



 



 



1,582



 



 



 



4,094



 



 



 



4,661



 



Total operating expenses



 



 



7,936



 



 



 



10,948



 



 



 



24,507



 



 



 



33,828



 



Loss from operations



 



 



(3,582



)



 



 



(5,539



)



 



 



(11,349



)



 



 



(13,927



)



Interest expense



 



 



(170



)



 



 



(229



)



 



 



(567



)



 



 



(662



)



Other income, net



 



 



89



 



 



 



139



 



 



 



327



 



 



 



315



 



Net loss and comprehensive loss



 



$



(3,663



)



 



$



(5,629



)



 



$



(11,589



)



 



$



(14,274



)



Net loss per common share, basic and diluted



 



$



(0.21



)



 



$



(0.33



)



 



$



(0.67



)



 



$



(0.88



)



Weighted-average shares used to compute net loss per common share, basic and diluted



 



 



17,312,226



 



 



 



16,944,660



 



 



 



17,183,306



 



 



 



16,130,882



 



EVERSPIN TECHNOLOGIES, INC.


Condensed Statement of Cash Flows



(In thousands)



(Unaudited)



 



 



Nine Months Ended



 



 



 



September 30,



 



 



 



2019



 



2018



 



Cash flows from operating activities



 



 



 



 



 



 



 



Net loss



 



$



(11,589



)



 



$



(14,274



)



 



Adjustments to reconcile net loss to net cash used in operating activities:



 



 



 



 



 



 



 



Depreciation and amortization



 



 



1,297



 



 



 



1,069



 



 



Loss on disposal of property and equipment



 



 



20



 



 



 



19



 



 



Stock-based compensation



 



 



2,397



 



 



 



2,064



 



 



Non-cash interest expense



 



 



219



 



 



 



286



 



 



Compensation expense related to vesting of common stock to GLOBALFOUNDRIES



 



 






 



 



 



709



 



 



Changes in operating assets and liabilities:



 



 



 



 



 



 



 



Accounts receivable



 



 



1,954



 



 



 



(1,876



)



 



Inventory



 



 



779



 



 



 



309



 



 



Prepaid expenses and other current assets



 



 



466



 



 



 



154



 



 



Accounts payable



 



 



518



 



 



 



(140



)



 



Accrued liabilities



 



 



(1,444



)



 



 



4,840



 



 



Operating lease liabilities



 



 



(72



)



 



 






 



 



Shipping term reversal



 



 






 



 



 



(39



)



 



Net cash used in operating activities



 



 



(5,455



)



 



 



(6,879



)



 



Cash flows from investing activities



 



 



 



 



 



 



 



Purchases of property and equipment



 



 



(566



)



 



 



(1,513



)



 



Net cash used in investing activities



 



 



(566



)



 



 



(1,513



)



 



Cash flows from financing activities



 



 



 



 



 



 



 



Proceeds from the issuance of common stock, net of offering costs



 



 






 



 



 



24,524



 



 



Proceeds from debt



 



 






 



 



 



1,000



 



 



Payments on debt



 



 



(4,840



)



 



 



(1,000



)



 



Payments of debt issuance costs



 



 



(80



)



 



 






 



 



Payments on finance lease obligation



 



 



(8



)



 



 



(8



)



 



Proceeds from exercise of stock options and purchase of shares in employee stock purchase plan



 



 



178



 



 



 



2,364



 



 



Proceeds from issuance of common stock in at-the-market offering, net of issuance costs



 



 



2,172



 



 



 






 



 



Net cash (used in) provided by financing activities



 



 



(2,578



)



 



 



26,880



 



 



Net (decrease) increase in cash and cash equivalents



 



 



(8,599



)



 



 



18,488



 



 



Cash and cash equivalents at beginning of period



 



 



23,379



 



 



 



12,950



 



 



Cash and cash equivalents at end of period



 



$



14,780



 



 



$



31,438



 



 



Supplementary cash flow information:



 



 



 



 



 



 



 



Interest paid



 



$



373



 



 



$



370



 



 



Operating cash flows paid for operating leases



 



$



1,264



 



 



$






 



 



Financing cash flows paid for finance leases



 



$



8



 



 



$






 



 



Right-of-use assets obtained in exchange for new operating leases



 



$



23



 



 



$






 



 



Non-cash investing and financing activities:



 



 



 



 



 



 



 



Purchases of property and equipment in accounts payable



 



$



33



 



 



$



183



 



 



Modification of warrant



 



$



36



 



 



$






 



 



Issuance of warrant with debt



 



$






 



 



$



43



 



 


 

Contacts

Everspin Investor Relations Contact:

Leanne K. Sievers, President

Shelton Group Investor Relations

T: 949-224-3874