Everspin Press Releases
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Everspin Reports First Quarter 2020 Financial Results
Revenue Above High-End of Guidance with Significant Improvement in EPS; Guides 19% Revenue Growth for 2Q at the Midpoint
First Quarter and Recent Highlights
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Total revenue increased sequentially and year-over-year to
$10.1 million , exceeding the high-end of guidance - Gross margin expanded to 52.9% from 47.7% in the prior year quarter
-
GAAP loss improved to (
$0.10 ) per share and non-GAAP loss to ($0.05 ), compared to ($0.25 ) and ($0.21 ), respectively, in year-ago quarter -
Ended quarter with cash and equivalents of
$14.0 million
“First quarter revenue was above the high end of our guidance range and represented our third consecutive quarter of growth as data center demand combined with the breadth of our customer base continue to be positive factors for our business,” stated
“Despite the moderate impact on orders and customer interactions associated with the COVID-19 pandemic, we remain fully operational and achieved growth in the quarter as well as a record number of design wins. We also continued to increase customer sampling of our STT-MRAM products as we pave the way for expanding design-ins. This is a testament to the persistence of the
“Looking to the second quarter, we expect to achieve another quarter of sequential revenue growth, while we cautiously monitor the global environment and remain prepared to promptly address any possible changes in market dynamics.”
First Quarter 2020 Results
Total revenue for the first quarter of 2020 was
Gross margin for the first quarter of 2020 was 52.9%, compared to 53.6% in the prior quarter and 47.7% in the first quarter of 2019.
GAAP operating expenses for the first quarter of 2020 were
GAAP net loss for the first quarter of 2020 was
Cash and cash equivalents as of
Business Outlook
For the second quarter of 2020,
Conference Call
A telephone replay of the conference call will be available approximately two hours after the call through
About
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
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Condensed Balance Sheets (In thousands, except share and per share amounts) (Unaudited) |
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2020 |
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2019 |
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Assets |
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Current assets: |
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Cash and cash equivalents |
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$ |
13,950 |
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$ |
14,487 |
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Accounts receivable, net |
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6,320 |
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5,799 |
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Inventory |
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7,944 |
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7,863 |
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Prepaid expenses and other current assets |
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518 |
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539 |
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Total current assets |
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28,732 |
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28,688 |
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Property and equipment, net |
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3,077 |
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3,479 |
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Right-of-use assets |
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2,770 |
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3,132 |
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Other assets |
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73 |
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73 |
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Total assets |
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$ |
34,652 |
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$ |
35,372 |
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Liabilities and Stockholders’ Equity |
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Current liabilities: |
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Accounts payable |
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$ |
1,761 |
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$ |
2,873 |
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Accrued liabilities |
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1,965 |
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2,727 |
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Current portion of long-term debt |
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1,271 |
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670 |
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Operating lease liabilities |
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1,613 |
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1,582 |
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Other liabilities |
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34 |
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42 |
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Total current liabilities |
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6,644 |
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7,894 |
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Long-term debt, net of current portion |
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6,621 |
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7,149 |
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Operating lease liabilities, net of current portion |
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1,426 |
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1,840 |
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Total liabilities |
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14,691 |
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16,883 |
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Commitments and contingencies |
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Stockholders’ equity: |
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Preferred stock, |
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— |
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— |
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Common stock, |
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2 |
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2 |
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Additional paid-in capital |
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170,353 |
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167,149 |
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Accumulated deficit |
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(150,394 |
) |
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(148,662 |
) |
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Total stockholders’ equity |
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19,961 |
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18,489 |
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Total liabilities and stockholders’ equity |
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$ |
34,652 |
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$ |
35,372 |
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Condensed Statements of Operations and Comprehensive Loss (In thousands, except share and per share amounts) (Unaudited) |
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Three Months Ended |
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2020 |
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2019 |
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Product sales |
$ |
9,635 |
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$ |
9,023 |
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Licensing, royalty, and other revenue |
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473 |
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1,003 |
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Total revenue |
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10,108 |
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10,026 |
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Cost of sales |
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4,757 |
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5,241 |
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Gross profit |
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5,351 |
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4,785 |
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Operating expenses:1 |
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Research and development |
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3,030 |
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3,998 |
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General and administrative |
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2,800 |
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3,595 |
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Sales and marketing |
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1,103 |
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1,364 |
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Total operating expenses |
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6,933 |
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8,957 |
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Loss from operations |
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(1,582 |
) |
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(4,172 |
) |
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Interest expense |
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(172 |
) |
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(211 |
) |
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Other income, net |
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22 |
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127 |
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Net loss and comprehensive loss |
$ |
(1,732 |
) |
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$ |
(4,256 |
) |
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Net loss per common share, basic and diluted |
$ |
(0.10 |
) |
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$ |
(0.25 |
) |
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Weighted-average shares used to compute net loss per common share, basic and diluted |
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18,055,693 |
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17,097,999 |
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1Operating expenses include stock-based compensation as follows: |
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Research and development |
$ |
162 |
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$ |
147 |
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General and administrative |
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585 |
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509 |
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Sales and marketing |
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58 |
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48 |
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Total stock-based compensation |
$ |
805 |
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$ |
704 |
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Reconciliation of GAAP and Non-GAAP Financial Information (In thousands, except share and per share amounts) (Unaudited) |
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Three Months Ended |
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Reconciliation of GAAP and non-GAAP operating expenses |
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GAAP operating expenses |
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Reconciling item included in research and development |
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Stock-based compensation |
137 |
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193 |
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118 |
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Reconciling item included in selling, general and administrative |
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Stock-based compensation |
643 |
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914 |
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557 |
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Restructuring |
782 |
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Total reconciling items included in operating expenses |
780 |
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1,889 |
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675 |
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Non-GAAP operating expenses |
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GAAP NET INCOME (LOSS) |
$ (1,732 |
) |
$ (3,079 |
) |
$ (4,256 |
) |
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Reconciling items included in operating expenses |
780 |
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1,889 |
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675 |
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Non-GAAP net income (loss) |
$ (951 |
) |
$ (1,191 |
) |
$ (3,581 |
) |
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Non-GAAP net income (loss) per share, basic and diluted |
$ (0.05 |
) |
$ (0.07 |
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$ (0.21 |
) |
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Weighted average shares to compute net loss per common share, basic and diluted |
18,056 |
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17,714 |
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17,098 |
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Condensed Statement of Cash Flows (In thousands) (Unaudited) |
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Three Months Ended |
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2020 |
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2019 |
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Cash flows from operating activities |
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Net loss |
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$ |
(1,732 |
) |
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$ |
(4,256 |
) |
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Adjustments to reconcile net loss to net cash used in operating activities: |
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Depreciation and amortization |
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409 |
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393 |
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Loss on disposal of property and equipment |
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— |
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20 |
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Stock-based compensation |
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|
805 |
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|
704 |
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Non-cash gain on warrant revaluation |
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(6 |
) |
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— |
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Non-cash interest expense |
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|
73 |
|
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|
81 |
|
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Changes in operating assets and liabilities: |
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Accounts receivable |
|
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(521 |
) |
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|
1,540 |
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Inventory |
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(81 |
) |
|
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(562 |
) |
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Prepaid expenses and other current assets |
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21 |
|
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|
93 |
|
|
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Accounts payable |
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(1,067 |
) |
|
|
(955 |
) |
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Accrued liabilities |
|
|
(435 |
) |
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(187 |
) |
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Lease liabilities |
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(21 |
) |
|
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(20 |
) |
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Net cash used in operating activities |
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(2,555 |
) |
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(3,149 |
) |
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Cash flows from investing activities |
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Purchases of property and equipment |
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(64 |
) |
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(225 |
) |
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Net cash used in investing activities |
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(64 |
) |
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(225 |
) |
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Cash flows from financing activities |
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Payments on debt |
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— |
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(1,500 |
) |
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Payments on finance lease obligation |
|
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(2 |
) |
|
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(3 |
) |
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Proceeds from exercise of stock options and purchase of shares in employee stock purchase plan |
|
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— |
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13 |
|
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Proceeds from issuance of common stock in at-the-market offering, net of issuance costs |
|
|
2,084 |
|
|
|
— |
|
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Net cash provided by (used in) financing activities |
|
|
2,082 |
|
|
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(1,490 |
) |
|
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Net decrease in cash and cash equivalents |
|
|
(537 |
) |
|
|
(4,864 |
) |
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Cash and cash equivalents at beginning of period |
|
|
14,487 |
|
|
|
23,379 |
|
|
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Cash and cash equivalents at end of period |
|
$ |
13,950 |
|
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$ |
18,515 |
|
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Supplementary cash flow information: |
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Interest paid |
|
$ |
99 |
|
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$ |
135 |
|
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Operating cash flows paid for operating leases |
|
$ |
486 |
|
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$ |
416 |
|
|
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Financing cash flows paid for finance leases |
|
$ |
2 |
|
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$ |
3 |
|
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Non-cash investing and financing activities: |
|
|
|
|
|
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Purchase of property and equipment in accounts payable and accrued liabilities |
|
$ |
— |
|
$ |
20 |
|
|
|
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Bonus settled in shares of common stock |
|
$ |
315 |
|
|
$ |
— |
|
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View source version on businesswire.com: https://www.businesswire.com/news/home/20200507006059/en/
Everspin Investor Relations Contact:
Shelton Group Investor Relations
T: 949-224-3874
E: sheltonir@sheltongroup.com
Source: