Everspin Press Releases
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Everspin Reports First Quarter 2019 Financial Results
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
“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
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
Net loss for the first quarter of 2019 was
Cash and cash equivalents as of
Business Outlook
For the second quarter of 2019,
Conference Call
A telephone replay of the conference call will be available
approximately two hours after the call until
About
Headquartered in
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
| 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 | |||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20190508005782/en/
Source:
Everspin Investor Relations Contact:
Leanne K. Sievers,
President
Shelton Group Investor Relations
T: 949-224-3874
E:
sheltonir@sheltongroup.com