Everspin Press Releases
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Everspin Reports Third Quarter 2019 Financial Results
Third Quarter and Recent Highlights
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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
“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
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
Net loss for the third quarter of 2019 was
Cash and cash equivalents as of
Business Outlook
For the fourth quarter of 2019,
Conference Call
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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-Q filed with the
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EVERSPIN TECHNOLOGIES, INC. Condensed Balance Sheets (In thousands, except share and per share amounts) (Unaudited) |
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September 30, |
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December 31, |
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2019 |
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2018 |
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Assets |
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Current assets: |
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Cash and cash equivalents |
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$ |
14,780 |
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$ |
23,379 |
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Accounts receivable, net |
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5,568 |
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7,522 |
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Inventory |
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8,318 |
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9,097 |
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Prepaid expenses and other current assets |
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222 |
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688 |
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Total current assets |
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28,888 |
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40,686 |
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Property and equipment, net |
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3,558 |
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4,286 |
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Right-of-use assets |
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2,595 |
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— |
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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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$ |
35,114 |
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$ |
45,045 |
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Liabilities and Stockholders’ Equity |
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Current liabilities: |
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Accounts payable |
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$ |
3,178 |
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$ |
2,637 |
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Accrued liabilities |
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3,167 |
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5,001 |
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Current portion of long-term debt |
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72 |
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5,977 |
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Operating lease liabilities |
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1,606 |
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— |
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Other liabilities |
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48 |
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— |
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Total current liabilities |
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8,071 |
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13,615 |
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Long-term debt, net of current portion |
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7,676 |
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6,509 |
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Operating lease liabilities, net of current portion |
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1,307 |
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— |
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Total liabilities |
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17,054 |
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20,124 |
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Commitments and contingencies |
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Stockholders’ equity: |
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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 |
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— |
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— |
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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 |
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2 |
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2 |
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Additional paid-in capital |
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163,640 |
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158,912 |
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Accumulated deficit |
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(145,582 |
) |
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(133,993 |
) |
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Total stockholders’ equity |
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18,060 |
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24,921 |
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Total liabilities and stockholders’ equity |
$ |
35,114 |
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$ |
45,045 |
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| EVERSPIN TECHNOLOGIES, INC.
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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Nine Months Ended |
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September 30, |
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September 30, |
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2019 |
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2018 |
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2019 |
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2018 |
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Product sales |
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$ |
8,370 |
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$ |
10,469 |
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$ |
25,396 |
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$ |
29,283 |
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Licensing, royalty, and other revenue |
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808 |
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1,049 |
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2,454 |
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7,853 |
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Total revenue |
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9,178 |
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11,518 |
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27,850 |
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37,136 |
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Cost of sales |
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4,824 |
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6,109 |
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14,692 |
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17,235 |
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Gross profit |
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4,354 |
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5,409 |
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13,158 |
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19,901 |
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Operating expenses: |
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Research and development |
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3,395 |
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6,453 |
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10,912 |
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19,706 |
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General and administrative |
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3,050 |
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2,913 |
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9,501 |
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9,461 |
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Sales and marketing |
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1,491 |
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1,582 |
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4,094 |
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4,661 |
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Total operating expenses |
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7,936 |
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10,948 |
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24,507 |
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33,828 |
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Loss from operations |
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(3,582 |
) |
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(5,539 |
) |
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(11,349 |
) |
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(13,927 |
) |
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Interest expense |
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(170 |
) |
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(229 |
) |
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(567 |
) |
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(662 |
) |
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Other income, net |
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89 |
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139 |
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327 |
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315 |
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Net loss and comprehensive loss |
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$ |
(3,663 |
) |
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$ |
(5,629 |
) |
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$ |
(11,589 |
) |
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$ |
(14,274 |
) |
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Net loss per common share, basic and diluted |
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$ |
(0.21 |
) |
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$ |
(0.33 |
) |
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$ |
(0.67 |
) |
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$ |
(0.88 |
) |
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Weighted-average shares used to compute net loss per common share, basic and diluted |
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17,312,226 |
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16,944,660 |
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17,183,306 |
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16,130,882 |
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| EVERSPIN TECHNOLOGIES, INC.
Condensed Statement of Cash Flows (In thousands) (Unaudited) |
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Nine Months Ended |
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September 30, |
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2019 |
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2018 |
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Cash flows from operating activities |
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Net loss |
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$ |
(11,589 |
) |
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$ |
(14,274 |
) |
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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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1,297 |
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1,069 |
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Loss on disposal of property and equipment |
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20 |
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19 |
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Stock-based compensation |
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2,397 |
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2,064 |
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Non-cash interest expense |
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219 |
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286 |
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Compensation expense related to vesting of common stock to GLOBALFOUNDRIES |
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— |
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709 |
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Changes in operating assets and liabilities: |
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Accounts receivable |
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1,954 |
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(1,876 |
) |
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Inventory |
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779 |
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309 |
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Prepaid expenses and other current assets |
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466 |
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154 |
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Accounts payable |
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|
518 |
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|
|
(140 |
) |
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Accrued liabilities |
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(1,444 |
) |
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4,840 |
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Operating lease liabilities |
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(72 |
) |
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— |
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Shipping term reversal |
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— |
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(39 |
) |
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Net cash used in operating activities |
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(5,455 |
) |
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(6,879 |
) |
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Cash flows from investing activities |
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Purchases of property and equipment |
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(566 |
) |
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(1,513 |
) |
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Net cash used in investing activities |
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(566 |
) |
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(1,513 |
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Cash flows from financing activities |
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Proceeds from the issuance of common stock, net of offering costs |
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— |
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24,524 |
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Proceeds from debt |
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— |
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|
1,000 |
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Payments on debt |
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(4,840 |
) |
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(1,000 |
) |
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Payments of debt issuance costs |
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(80 |
) |
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— |
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Payments on finance lease obligation |
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(8 |
) |
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(8 |
) |
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Proceeds from exercise of stock options and purchase of shares in employee stock purchase plan |
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|
178 |
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|
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2,364 |
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Proceeds from issuance of common stock in at-the-market offering, net of issuance costs |
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2,172 |
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— |
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Net cash (used in) provided by financing activities |
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(2,578 |
) |
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26,880 |
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Net (decrease) increase in cash and cash equivalents |
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(8,599 |
) |
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18,488 |
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Cash and cash equivalents at beginning of period |
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23,379 |
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12,950 |
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Cash and cash equivalents at end of period |
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$ |
14,780 |
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$ |
31,438 |
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Supplementary cash flow information: |
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Interest paid |
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$ |
373 |
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$ |
370 |
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Operating cash flows paid for operating leases |
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$ |
1,264 |
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$ |
— |
|
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Financing cash flows paid for finance leases |
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$ |
8 |
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|
$ |
— |
|
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Right-of-use assets obtained in exchange for new operating leases |
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$ |
23 |
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|
$ |
— |
|
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Non-cash investing and financing activities: |
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|
|
|
|
|
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Purchases of property and equipment in accounts payable |
|
$ |
33 |
|
|
$ |
183 |
|
|
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Modification of warrant |
|
$ |
36 |
|
|
$ |
— |
|
|
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Issuance of warrant with debt |
|
$ |
— |
|
|
$ |
43 |
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View source version on businesswire.com: https://www.businesswire.com/news/home/20191107005957/en/
Source:
Everspin Investor Relations Contact:
Leanne K. Sievers, President
Shelton Group Investor Relations
T: 949-224-3874
E: sheltonir@sheltongroup.com