Everspin Press Releases
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Everspin Reports Fourth Quarter and Fiscal Year 2017 Financial Results
Fourth Quarter, Full Year and Recent Highlights
- Achieved record revenue for the quarter and year
- 4Q revenue grew 43.3% year-over-year and 2017 revenue grew 32.6% over 2016
- Gross margin for the year increased 550 basis points over 2016
- Shipped and recorded first revenue for 40nm 256Mb STT-MRAM products
- In February, successfully raised
$24.5 million in net proceeds from follow-on public offering
“Everspin concluded a successful year in 2017 with record revenue and improved margins driven by a 27% year-over-year increase in MRAM product revenue, largely from our Toggle products,” said
“We made solid progress on several strategic priorities, most significantly on 256Mb STT-MRAM with the start of production and first recognized revenue in the fourth quarter. We believe our focus on technology innovation and development of high-value products for our customers will position
“To gain the necessary capital for executing this strategy,
Fourth Quarter and 2017 Results
Revenue for the fourth quarter was a record
Gross margin for the fourth quarter of 2017 was 61.5%, compared to 45.7% in the prior-year quarter and 58.4% in the previous quarter. The full year 2017 gross margin was 59.8%, a 550 basis point increase from 54.3% in the prior year.
Operating expenses for the fourth quarter of 2017 were
Net loss per share for the fourth quarter of 2017 was
Business Outlook
For the first quarter 2018,
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, Everspin’s estimated first quarter 2018 financial guidance. 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 Annual Report on Form 10-K filed with the
Everspin Contacts:
| EVERSPIN TECHNOLOGIES, INC. | ||||||||
| Balance Sheets | ||||||||
| (In thousands, except share and per share amounts) | ||||||||
| December 31, | ||||||||
| 2017 | 2016 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 12,950 | $ | 29,727 | ||||
| Accounts receivable, net | 3,429 | 3,170 | ||||||
| Amounts due from related parties | 612 | 486 | ||||||
| Inventory | 9,837 | 5,069 | ||||||
| Prepaid expenses and other current assets | 590 | 1,050 | ||||||
| Total current assets | 27,418 | 39,502 | ||||||
| Property and equipment, net | 3,946 | 1,920 | ||||||
| Other assets | 73 | 50 | ||||||
| Total assets | $ | 31,437 | $ | 41,472 | ||||
| Liabilities and Stockholders’ Equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 2,720 | $ | 1,502 | ||||
| Accrued liabilities | 2,254 | 1,811 | ||||||
| Amounts due to related parties | 1,694 | 1,359 | ||||||
| Deferred income on shipments to distributors | 1,720 | 1,827 | ||||||
| Current portion of long-term debt | 3,987 | 3,884 | ||||||
| Total current liabilities | 12,375 | 10,383 | ||||||
| Long-term debt, net of current portion | 8,178 | 4,218 | ||||||
| Total liabilities | 20,553 | 14,601 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders’ equity: | ||||||||
| Preferred stock, $0.0001 par value per share; 5,000,000 shares authorized as of December 31, 2017 and 2016; no shares issued and outstanding as of December 31, 2017 and 2016 | — | — | ||||||
| Common stock, $0.0001 par value per share; 100,000,000 shares authorized as of December 31, 2017 and 2016; 12,817,201 and 12,498,128 shares issued and outstanding as of December 31, 2017 and 2016 | 1 | 1 | ||||||
| Additional paid-in capital | 128,422 | 123,309 | ||||||
| Accumulated deficit | (117,539 | ) | (96,439 | ) | ||||
| Total stockholders’ equity | 10,884 | 26,871 | ||||||
| Total liabilities and stockholders’ equity | $ | 31,437 | $ | 41,472 | ||||
| EVERSPIN TECHNOLOGIES, INC. | ||||||||||||
| Statements of Operations and Comprehensive Loss | ||||||||||||
| (In thousands, except share and per share amounts) | ||||||||||||
| Year Ended December 31, | ||||||||||||
| 2017 | 2016 | 2015 | ||||||||||
| Product sales | $ | 31,361 | $ | 24,233 | $ | 22,403 | ||||||
| Product sales - related party | 2,316 | 2,378 | 3,472 | |||||||||
| Licensing and royalty revenue | 634 | 483 | 671 | |||||||||
| Licensing and royalty revenue - related party | 1,625 | — | — | |||||||||
| Total revenue | 35,936 | 27,094 | 26,546 | |||||||||
| Cost of sales | 14,451 | 12,395 | 12,568 | |||||||||
| Gross profit | 21,485 | 14,699 | 13,978 | |||||||||
| Operating expenses: | ||||||||||||
| Research and development | 25,437 | 19,233 | 21,126 | |||||||||
| General and administrative | 11,516 | 7,281 | 6,565 | |||||||||
| Sales and marketing | 4,740 | 3,706 | 3,823 | |||||||||
| Total operating expenses | 41,693 | 30,220 | 31,514 | |||||||||
| Loss from operations | (20,208 | ) | (15,521 | ) | (17,536 | ) | ||||||
| Interest expense | (764 | ) | (2,347 | ) | (653 | ) | ||||||
| Other income, net | 118 | 1,160 | 6 | |||||||||
| Loss on extinguishment of debt | (246 | ) | — | — | ||||||||
| Net loss and comprehensive loss | $ | (21,100 | ) | $ | (16,708 | ) | $ | (18,183 | ) | |||
| Net loss per common share, basic and diluted | $ | (1.69 | ) | $ | (3.53 | ) | $ | (7.12 | ) | |||
| Weighted-average shares used to compute net loss per common share, basic and diluted | 12,484,984 | 4,738,496 | 2,552,205 | |||||||||
| EVERSPIN TECHNOLOGIES, INC. | ||||||||||||
| Statement of Cash Flows | ||||||||||||
| (In thousands) | ||||||||||||
| Year Ended December 31, | ||||||||||||
| 2017 | 2016 | 2015 | ||||||||||
| Cash flows from operating activities | ||||||||||||
| Net loss | $ | (21,100 | ) | $ | (16,708 | ) | $ | (18,183 | ) | |||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||||||
| Depreciation and amortization | 1,191 | 826 | 1,340 | |||||||||
| Loss on disposal of property and equipment | — | 80 | — | |||||||||
| Stock-based compensation | 2,048 | 1,141 | 416 | |||||||||
| Change in fair value of redeemable convertible preferred stock warrant liability | — | (372 | ) | (15 | ) | |||||||
| Non-cash loss on extinguishment of debt | 185 | — | — | |||||||||
| Change in fair value of derivative liability | — | (798 | ) | — | ||||||||
| Non-cash interest expense | 297 | 1,183 | 232 | |||||||||
| Compensation expense related to vesting of common stock to GLOBALFOUNDRIES | 1,472 | 965 | 1,761 | |||||||||
| Changes in operating assets and liabilities: | ||||||||||||
| Accounts receivable | (259 | ) | (1,261 | ) | 339 | |||||||
| Amounts due from related parties | (126 | ) | 78 | 102 | ||||||||
| Inventory | (3,871 | ) | (893 | ) | (431 | ) | ||||||
| Prepaid expenses and other current assets | 460 | (860 | ) | (77 | ) | |||||||
| Other assets | (23 | ) | (21 | ) | (10 | ) | ||||||
| Accounts payable | 1,114 | 340 | 233 | |||||||||
| Accrued liabilities | (120 | ) | 56 | 428 | ||||||||
| Amounts due to related parties | (49 | ) | (2,453 | ) | 3,328 | |||||||
| Deferred income on shipments to distributors | (107 | ) | 387 | (362 | ) | |||||||
| Deferred revenue | — | (229 | ) | 229 | ||||||||
| Net cash used in operating activities | (18,888 | ) | (18,539 | ) | (10,670 | ) | ||||||
| Cash flows from investing activities | ||||||||||||
| Purchases of property and equipment | (3,070 | ) | (1,040 | ) | (1,295 | ) | ||||||
| Net cash used in investing activities | (3,070 | ) | (1,040 | ) | (1,295 | ) | ||||||
| Cash flows from financing activities | ||||||||||||
| Proceeds from convertible promissory notes-related party | — | 8,500 | — | |||||||||
| Proceeds from debt | 12,000 | 1,500 | 8,000 | |||||||||
| Payments on debt | (8,356 | ) | (1,325 | ) | (3,000 | ) | ||||||
| Payments of debt issuance costs | (49 | ) | (40 | ) | (130 | ) | ||||||
| Payments on capital lease obligation | (7 | ) | (198 | ) | (226 | ) | ||||||
| Proceeds from exercise of stock options and purchase of shares in employee stock purchase plan | 1,593 | 48 | 4 | |||||||||
| Proceeds from issuance of common stock in connection with initial public offering, net of offering costs | — | 33,864 | — | |||||||||
| Proceeds from issuance of common stock in private placement, net of issuance costs | — | 4,650 | — | |||||||||
| Net cash provided by financing activities | 5,181 | 46,999 | 4,648 | |||||||||
| Net (decrease) increase in cash and cash equivalents | (16,777 | ) | 27,420 | (7,317 | ) | |||||||
| Cash and cash equivalents at beginning of period | 29,727 | 2,307 | 9,624 | |||||||||
| Cash and cash equivalents at end of period | $ | 12,950 | $ | 29,727 | $ | 2,307 | ||||||
| Supplementary cash flow information: | ||||||||||||
| Interest paid | $ | 467 | $ | 806 | $ | 421 | ||||||
| Interest paid to related party | $ | — | $ | 359 | $ | — | ||||||
| Non-cash investing and financing activities: | ||||||||||||
| Purchase of property and equipment in accounts payable and amounts due to related parties | $ | 116 | $ | — | $ | — | ||||||
| Purchase of inventory in accrued liabilities and amounts due to related parties | $ | 897 | $ | — | $ | — | ||||||
| Purchase of property and equipment under capital lease obligations | $ | 31 | $ | — | $ | 431 | ||||||
| Conversion of convertible promissory notes into common stock | $ | — | $ | 8,634 | $ | — | ||||||
| Issuance of warrants with debt | $ | — | $ | — | $ | 307 | ||||||
| Conversion of redeemable convertible preferred stock into common stock | $ | — | $ | 64,642 | $ | — | ||||||
| Reclassification of warrant liability to additional paid-in capital | $ | — | $ | 65 | $ | — | ||||||