Everspin Press Releases
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Everspin Reports Second Quarter 2018 Financial Results
Second Quarter Highlights
- Flash array customer qualification of 40nm 256Mb STT-MRAM for use in NVMe storage array as highlighted at MRAM Developer Day and the Flash Memory Summit
- Extension of 200mm Toggle fab lease into 2021
- Total revenue of
$10.8 million - Ending quarter cash balance of
$32.7 million
“I’m pleased to announce the results of our second quarter. This was our first full quarter of STT-MRAM production shipments, in which the qualification of our 256Mb STT-MRAM was completed by a leading enterprise storage provider. We also continued to drive the adoption of STT-MRAM through our partnership with SMART Modular,” said
“Everspin and our partners showcased this exciting STT-MRAM technology in product applications at the inaugural MRAM Developer Day and Flash Memory Summit in Santa Clara this week. Most notably, our flash array customer unveiled its newest NVMe storage array, clearly demonstrating the value of our technology’s low latency and data persistence. The increased attention on MRAM at these events highlights the importance of MRAM technology as it is adopted into mainstream applications. We are encouraged by this enthusiastic interest and the high level of activity, which we believe demonstrates the meaningful progress MRAM is making as an emerging technology.
“Our focus in the coming quarter is on growing and maturing customer engagements around our 256Mb STT-MRAM parts and continued improvements in our Toggle manufacturing capabilities.”
Second Quarter Results
Revenue for the second quarter of 2018 was
Gross margin for the second quarter of 2018 was 49.0%, compared with 65.0% in the second quarter of 2017 and 67.0% in the previous quarter. The sequential and year-over-year decline in gross margin was primarily attributable to lower licensing, royalty and other revenue in the second quarter of 2018.
Operating expenses for the second quarter of 2018 were
Net loss per share for the second quarter of 2018 was
Cash and cash equivalents as of
Business Outlook
For the third quarter of 2018,
Conference Call
A telephone replay of the conference call will be available approximately two hours after the call until
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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 third 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 Form 10-K filed with the
Everspin Contacts:
Condensed Balance Sheets
(In thousands, except share and per share amounts)
(Unaudited)
| June 30, | December 31, | |||||||
| 2018 |
2017 |
|||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 32,725 | $ | 12,950 | ||||
| Accounts receivable, net | 5,097 | 4,041 | ||||||
| Inventory | 9,621 | 9,837 | ||||||
| Prepaid expenses and other current assets | 1,225 | 590 | ||||||
| Total current assets | 48,668 | 27,418 | ||||||
| Property and equipment, net | 3,457 | 3,946 | ||||||
| Other assets | 209 | 73 | ||||||
| Total assets | $ | 52,334 | $ | 31,437 | ||||
| Liabilities and Stockholders’ Equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 2,883 | $ | 2,920 | ||||
| Accrued liabilities | 6,339 | 3,748 | ||||||
| Deferred income on shipments to distributors | — | 1,720 | ||||||
| Current portion of long-term debt | 5,993 | 3,987 | ||||||
| Total current liabilities | 15,215 | 12,375 | ||||||
| Long-term debt, net of current portion | 5,366 | 8,178 | ||||||
| Total liabilities | 20,581 | 20,553 | ||||||
| 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 June 30, 2018 and December 31, 2017 |
— | — | ||||||
| Common stock, $0.0001 par value per share; 100,000,000 shares authorized; 16,800,505 and 12,817,201 shares issued and outstanding as of June 30, 2018 and December 31, 2017 |
2 | 1 | ||||||
| Additional paid-in capital | 155,866 | 128,422 | ||||||
| Accumulated deficit | (124,115 | ) | (117,539 | ) | ||||
| Total stockholders’ equity | 31,753 | 10,884 | ||||||
| Total liabilities and stockholders’ equity | $ | 52,334 | $ | 31,437 | ||||
Condensed Statements of Operations and Comprehensive Loss
(In thousands, except share and per share amounts)
(Unaudited)
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2018 | 2017 | 2018 | 2017 | |||||||||||||
| Product sales | $ | 9,449 | $ | 7,200 | $ | 18,814 | $ | 13,848 | ||||||||
| Licensing, royalty, and other revenue | 1,316 | 1,725 | 6,804 | 2,957 | ||||||||||||
| Total revenue | 10,765 | 8,925 | 25,618 | 16,805 | ||||||||||||
| Cost of sales | 5,459 | 3,133 | 10,357 | 6,796 | ||||||||||||
| Gross profit | 5,306 | 5,792 | 15,261 | 10,009 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Research and development | 6,773 | 6,427 | 13,253 | 12,816 | ||||||||||||
| General and administrative | 3,329 | 2,793 | 6,548 | 5,638 | ||||||||||||
| Sales and marketing | 1,713 | 1,361 | 3,079 | 2,219 | ||||||||||||
| Total operating expenses | 11,815 | 10,581 | 22,880 | 20,673 | ||||||||||||
| Loss from operations | (6,509 | ) | (4,789 | ) | (7,619 | ) | (10,664 | ) | ||||||||
| Interest expense | (222 | ) | (176 | ) | (433 | ) | (406 | ) | ||||||||
| Other income, net | 132 | 24 | 176 | 43 | ||||||||||||
| Loss on extinguishment of debt | — | (246 | ) | — | (246 | ) | ||||||||||
| Net loss and comprehensive loss | $ | (6,599 | ) | $ | (5,187 | ) | $ | (7,876 | ) | $ | (11,273 | ) | ||||
| Net loss per common share, basic and diluted | $ | (0.40 | ) | $ | (0.42 | ) | $ | (0.50 | ) | $ | (0.91 | ) | ||||
| Weighted-average shares used to compute net loss per common share, basic and diluted | 16,635,261 | 12,413,524 | 15,717,248 | 12,357,066 | ||||||||||||
Condensed Statement of Cash Flows
(In thousands)
(Unaudited)
| Six Months Ended | ||||||||
| June 30, | ||||||||
| 2018 |
2017 |
|||||||
| Cash flows from operating activities | ||||||||
| Net loss | $ | (7,876 | ) | $ | (11,273 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Depreciation and amortization | 729 | 510 | ||||||
| Loss on disposal of property and equipment | 19 | — | ||||||
| Stock-based compensation | 1,342 | 839 | ||||||
| Non-cash loss on extinguishment of debt | — | 185 | ||||||
| Non-cash interest expense | 200 | 119 | ||||||
| Compensation expense related to vesting of common stock to GLOBALFOUNDRIES | 462 | 716 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | (1,391 | ) | (524 | ) | ||||
| Inventory | 170 | (1,584 | ) | |||||
| Prepaid expenses and other current assets | (635 | ) | 48 | |||||
| Other assets | (136 | ) | (11 | ) | ||||
| Accounts payable | 51 | (158 | ) | |||||
| Accrued liabilities | 2,591 | 80 | ||||||
| Deferred income on shipments to distributors | (39 | ) | (237 | ) | ||||
| Net cash used in operating activities | (4,513 | ) | (11,290 | ) | ||||
| Cash flows from investing activities | ||||||||
| Purchases of property and equipment | (347 | ) | (1,704 | ) | ||||
| Net cash used in investing activities | (347 | ) | (1,704 | ) | ||||
| Cash flows from financing activities | ||||||||
| Proceeds from the issuance of common stock, net of offering costs | 24,609 | — | ||||||
| Proceeds from debt | — | 12,000 | ||||||
| Payments on debt | (1,000 | ) | (8,356 | ) | ||||
| Payments of debt issuance costs | — | (49 | ) | |||||
| Payments on capital lease obligation | (6 | ) | (7 | ) | ||||
| Proceeds from exercise of stock options and purchase of shares in employee stock purchase plan | 1,032 | 855 | ||||||
| Net cash provided by financing activities | 24,635 | 4,443 | ||||||
| Net increase (decrease) in cash and cash equivalents | 19,775 | (8,551 | ) | |||||
| Cash and cash equivalents at beginning of period | 12,950 | 29,727 | ||||||
| Cash and cash equivalents at end of period | $ | 32,725 | $ | 21,176 | ||||
| Supplementary cash flow information: | ||||||||
| Interest paid | $ | 233 | $ | 288 | ||||
| Non-cash investing and financing activities: | ||||||||
| Purchase of property and equipment in accounts payable | $ | 27 | $ | 560 | ||||