Everspin Press Releases
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Everspin Reports Unaudited First Quarter 2022 Financial Results
The Company continues growth into 2022 with profitable first quarter results
First Quarter 2022 Highlights
-
Q1’22 revenue increased
$4.0 million , or 39%, to$14.3 million from$10.3 million for Q1’21. -
The Company reported net income of
$1.9 million for Q1’22, compared to a net loss of$0.5 million for Q1’21. -
Adjusted EBITDA for Q1’22 improved to
$3.1 million , compared to$0.8 million for Q1’21. -
Basic EPS for Q1’22 was
$0.10 compared to a net loss per share of$0.02 for Q1’21.
“The Everspin team delivered an excellent quarter focusing on sales, yield improvement, and operational discipline in this tough supply chain environment,” said
First Quarter 2022 Results
Total revenue for the first quarter of 2022 was
MRAM product sales in the first quarter of 2022, which includes both Toggle and STT-MRAM revenue, was
Licensing, Royalties, Patents and Other revenue in the first quarter of 2022 was
The increase in total revenue for the first quarter of 2022 compared to the first quarter of 2021 was due to strong Toggle sales and an increase in revenue recognized from a
Gross margin for the first quarter of 2022 was 58.0%, compared to 62.8% in the fourth quarter of 2021, and 58.2% in the first quarter of 2021. The decrease in gross margin in the first quarter of 2022 compared to the fourth quarter of 2021 was attributable to higher margin related to the IP monetization deal in the fourth quarter of 2021 as noted above.
GAAP operating expenses was
GAAP net income for the first quarter of 2022 was
Business Outlook
For the second quarter 2022,
This outlook is dependent on
Use of Non-GAAP Financial Measures
We supplement the reporting of our financial information determined under generally accepted accounting principles in
Our management and board of directors use Adjusted EBITDA to understand and evaluate our operating performance and trends, to prepare and approve our annual budget and to develop short-term and long-term operating and financing plans. Accordingly, we believe that Adjusted EBITDA provides useful information for investors in understanding and evaluating our operating results in the same manner as our management and our board of directors. Adjusted EBITDA is a non-GAAP financial measure and should be considered in addition to, not as superior to, or as a substitute for, net income (loss) reported in accordance with GAAP. Moreover, other companies may define non-GAAP measures differently, which limits the usefulness of these measures for comparisons with such other companies. We encourage investors to review our financial statements and publicly- filed reports in their entirety and not to rely on any single financial measure.
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 results 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.” Forward-looking statements are identified by words such as “believe”, “will”, “may”, “estimate”, “continue”, “anticipate”, “intend”, “should”, “plan”, “expect”, “predict”, “could”, “potentially" or the negative of these terms or similar expressions. These include, but are not limited to, our future plans, strategies, objectives, expectations, intentions and financial performance, including the outlook and guidance for second quarter 2022 results; our expectations regarding supply constraints, expenses relating to 28nm STT MRAM product development and price increases from our suppliers; our expectations that our new xSPI family of Low Density STT-MRAM products will drive growth across industrial and IoT markets; and the assumptions that underlie these statements. Actual results could differ materially from these forward-looking statements as a result of certain risks and uncertainties, including, without limitation, the risks set forth under the caption “Risk Factors” in Everspin’s Annual Report on Form 10-K for the year ended
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Condensed Balance Sheets (In thousands, except share and per share amounts) (Unaudited) |
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2022 |
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2021 |
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Assets |
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Current assets: |
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Cash and cash equivalents |
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$ |
19,885 |
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$ |
21,409 |
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Accounts receivable, net |
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10,240 |
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8,193 |
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Inventory |
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6,208 |
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6,396 |
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Prepaid expenses and other current assets |
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636 |
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762 |
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Total current assets |
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36,969 |
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36,760 |
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Property and equipment, net |
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959 |
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973 |
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Right-of-use assets |
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3,974 |
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913 |
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Other assets |
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769 |
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734 |
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Total assets |
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$ |
42,671 |
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$ |
39,380 |
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Liabilities and Stockholders’ Equity |
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Current liabilities: |
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Accounts payable |
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$ |
2,287 |
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$ |
1,776 |
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Accrued liabilities |
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1,565 |
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3,579 |
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Deferred revenue |
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330 |
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832 |
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Current portion of long-term debt |
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3,377 |
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3,370 |
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Lease liabilities |
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942 |
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724 |
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Other liabilities |
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39 |
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50 |
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Total current liabilities |
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8,540 |
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10,331 |
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Long-term debt, net of current portion |
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954 |
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1,529 |
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Lease liabilities, net of current portion |
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2,897 |
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68 |
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Long-term income tax liability |
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214 |
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214 |
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Total liabilities |
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$ |
12,605 |
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$ |
12,142 |
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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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180,960 |
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180,067 |
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Accumulated deficit |
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(150,896 |
) |
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(152,831 |
) |
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Total stockholders’ equity |
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30,066 |
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27,238 |
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Total liabilities and stockholders’ equity |
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$ |
42,671 |
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$ |
39,380 |
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Condensed Statements of Operations and Comprehensive Income (Loss) (In thousands, except share and per share amounts) (Unaudited) |
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Three Months Ended |
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2022 |
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2021 |
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Product sales |
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$ |
12,671 |
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$ |
9,068 |
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Licensing, royalty, patent, and other revenue |
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1,676 |
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1,212 |
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Total revenue |
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14,347 |
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10,280 |
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Cost of product sales |
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5,752 |
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4,256 |
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Cost of licensing, royalty, patent, and other revenue |
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272 |
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39 |
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Total cost of sales |
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6,024 |
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4,295 |
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Gross profit |
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8,323 |
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5,985 |
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Operating expenses:1 |
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Research and development |
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2,436 |
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2,439 |
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General and administrative |
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2,729 |
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2,843 |
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Sales and marketing |
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1,134 |
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987 |
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Total operating expenses |
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6,299 |
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6,269 |
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Income (loss) from operations |
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2,024 |
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(284 |
) |
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Interest expense |
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(75 |
) |
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(152 |
) |
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Other expense, net |
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(14 |
) |
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(15 |
) |
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Net income (loss) before income taxes |
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1,935 |
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(451 |
) |
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Income tax expense |
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— |
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(9 |
) |
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Net income (loss) and comprehensive income (loss) |
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$ |
1,935 |
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$ |
(460 |
) |
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Net income (loss) per common share: |
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Basic |
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$ |
0.10 |
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$ |
(0.02 |
) |
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Diluted |
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$ |
0.09 |
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$ |
(0.02 |
) |
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Weighted average shares of common stock outstanding: |
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Basic |
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19,896,654 |
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19,092,367 |
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Diluted |
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20,726,193 |
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19,092,367 |
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1Operating expenses include stock-based compensation as follows: |
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Research and development |
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$ |
333 |
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$ |
181 |
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General and administrative |
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371 |
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|
485 |
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Sales and marketing |
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120 |
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77 |
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Total stock-based compensation |
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$ |
824 |
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$ |
743 |
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Condensed Statement of Cash Flows (In thousands) (Unaudited) |
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Three Months Ended |
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2022 |
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2021 |
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Cash flows from operating activities |
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Net income (loss) |
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$ |
1,935 |
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$ |
(460 |
) |
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Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: |
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Depreciation and amortization |
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258 |
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383 |
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Stock-based compensation |
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824 |
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743 |
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Non-cash warrant revaluation |
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(11 |
) |
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4 |
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Non-cash interest expense |
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32 |
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86 |
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Changes in operating assets and liabilities: |
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Accounts receivable |
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(2,047 |
) |
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(2,708 |
) |
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Inventory |
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188 |
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363 |
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Prepaid expenses and other current assets |
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126 |
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62 |
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Right-of-use assets |
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(3,061 |
) |
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|
343 |
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Other assets |
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(13 |
) |
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— |
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Accounts payable |
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|
267 |
|
|
|
(63 |
) |
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Accrued liabilities |
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(2,014 |
) |
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|
280 |
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Deferred revenue |
|
|
(502 |
) |
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3,000 |
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Lease liabilities |
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3,047 |
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|
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(382 |
) |
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Net cash (used in) provided by operating activities |
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(971 |
) |
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1,651 |
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Cash flows from investing activities |
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Purchases of property and equipment |
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(22 |
) |
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(309 |
) |
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Net cash used in investing activities |
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(22 |
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(309 |
) |
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Cash flows from financing activities |
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Payments on long-term debt |
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(600 |
) |
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(600 |
) |
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Proceeds from exercise of stock options and purchase of shares in employee stock purchase plan |
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69 |
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144 |
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Net cash used in financing activities |
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(531 |
) |
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(456 |
) |
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Net (decrease) increase in cash and cash equivalents |
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(1,524 |
) |
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|
886 |
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Cash and cash equivalents at beginning of period |
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21,409 |
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|
14,599 |
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Cash and cash equivalents at end of period |
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$ |
19,885 |
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$ |
15,485 |
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Supplementary cash flow information: |
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Interest paid |
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$ |
43 |
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$ |
66 |
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Operating cash flows paid for operating leases |
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$ |
318 |
|
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$ |
413 |
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Financing cash flows paid for finance leases |
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$ |
2 |
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$ |
— |
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Non-cash investing and financing activities: |
|
|
|
|
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Right-of-use assets obtained in exchange for operating lease liabilities |
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$ |
3,350 |
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$ |
— |
|
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Right-of-use assets obtained in exchange for finance lease liabilities |
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$ |
36 |
|
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$ |
— |
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Purchases of property and equipment in accounts payable and accrued liabilities |
|
$ |
257 |
|
|
$ |
— |
|
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Bonus settled in shares of common stock |
|
$ |
— |
|
|
$ |
364 |
|
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Adjusted EBITDA Reconciliation (In thousands) (Unaudited) |
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Three Months Ended |
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Adjusted EBITDA reconciliation: |
|
|
|
|
|
|
|
|
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Net income (loss) |
|
$ |
1,935 |
|
$ |
3,667 |
|
$ |
(460 |
) |
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Depreciation and amortization |
|
|
258 |
|
|
338 |
|
|
383 |
|
|
Stock-based compensation expense |
|
|
824 |
|
|
753 |
|
|
743 |
|
|
Interest expense |
|
|
75 |
|
|
86 |
|
|
152 |
|
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Income tax expense |
|
|
- |
|
|
4 |
|
|
- |
|
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Adjusted EBITDA |
|
$ |
3,092 |
|
$ |
4,848 |
|
$ |
818 |
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View source version on businesswire.com: https://www.businesswire.com/news/home/20220511006047/en/
480-347-1082
anuj.aggarwal@everspin.com
Source: