The Company Reports its Best Quarter in Company History

CHANDLER, Ariz.--(BUSINESS WIRE)--Nov. 11, 2021-- Everspin Technologies, Inc. (NASDAQ: MRAM), the market leader in MRAM, today announced preliminary unaudited financial results for the third fiscal quarter of 2021.

Third Quarter 2021 Highlights

• Q3’21 revenue increased 25% and $2.9 million from $11.9 million in the prior quarter to $14.8 million. This is an increase of 46.5% compared to $10.1 million of revenue in Q3’20.
• The Company reported record net income of $880k for Q3’21, resulting in year-to-date net income for FY2021 of $676k. This is compared to a net loss reported of $3.9 million for Q3’20, with a prior year-to-date net loss of $6.9 million for the nine months ended September 30, 2020.
• Ended Q3’21 with cash and equivalents of $14.6 million; which is an increase from $14.2 million reported in the prior quarter.

“Everspin’s Q3 results are a reflection of our team’s ability to deliver on growing product revenue and monetizing our IP,” stated Darin Billerbeck, Everspin’s Executive Chairman and Interim CEO.

Third Quarter 2021 Results

Total revenue for the third quarter of 2021 was $14.8 million, an increase of 25% from the $11.85 million reported last quarter. This is an increase of 46.5% compared to $10.1 million of revenue in Q3’20.

MRAM product sales in the third quarter, which includes both Toggle and STT-MRAM revenue, was $12 million vs $10.2 million in the prior quarter and $9.6 million in Q3’20. In Q3’21, the company entered into an intellectual property (“IP”) monetization deal worth $5.25 million. $1.3 million in revenue was recognized in Q3’21 and the remaining $3.95 million of revenue is expected to be recognized in Q4’21. Licensing, Royalties and Other revenue in the quarter was $2.8 million compared to $1.7 million in the previous quarter and $0.5 million in the prior year period. The increase in total revenue is due to strong Toggle sales, revenue recognition from a U.S. Government RAD-Hard program entered into earlier this year and the IP monetization deal note above.

Gross margin for the third quarter of 2021 was 57.1%, compared to 60.8% in the prior quarter and 23.0% in the third quarter of 2020.

GAAP operating expenses for the third quarter of 2021 increased to $7.4 million, compared to $6.7 million in the second quarter of 2021 primarily due to increases in research and development, sales and marketing and administrative costs. This is compared to operating expenses of $6.0 million in the third quarter of 2020. GAAP operating expenses in the third quarter of 2021 included $1.03 million of stock-based compensation, compared to $704k in the prior quarter and $910k in the third quarter of 2020.

GAAP net income for the third quarter of 2021 was $880k, or $0.05 per share, based on 19.5 million weighted-average basic common shares outstanding. This compares to a net income of $256k, or $0.01 per basic share, in the second quarter of 2021 and a net loss of $3.9 million, or ($0.21) per basic share, in the third quarter of 2020.

Adjusted EBITDA for the third quarter of 2021 improved to $2.5 million, compared to $1.5 million in the prior quarter and a negative ($2.0) million in the third quarter of 2020.

Cash and cash equivalents as of September 30, 2021, were $14.6 million, compared to $14.2 million in the prior quarter, and an increase from $13.9 million at the end of the third quarter of 2020.

Business Outlook

For the fourth quarter 2021, Everspin expects total revenue in a range of $16.25 million to $17.25 million which, at the mid-point of $16.75 million, represents a 13.2% increase over $14.8 million third quarter 2021 actuals. The revenue range reflects expected product revenue growth as well as the remaining $3.95 million of revenue expected to be recognized for the IP monetization deal discussed above. Everspin expects a GAAP net income per basic share of between $0.02 and $0.08, primarily driven by expenses related to next generation 28nm STT MRAM product and price increases from our suppliers.

This outlook is dependent on Everspin's current expectations, which may be impacted by, among other things, evolving external conditions, such as the resurgence of COVID-19 and its variants, local safety guidelines, worsening impacts due to supply chain constraints or interruptions, and the other risk factors described in Everspin's filings with the SEC, including its Annual Report on Form 10-K for the fiscal year ended December 31, 2020, its Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission (the "SEC") during 2021, as well as in its subsequent filings with the SEC.

MRAM Solution Designed into Lucid Air Luxury Electric Vehicles

In June 2021, Everspin announced MRAM Solutions will be designed into Lucid Air Luxury Electric Vehicles. Everspin believes the adoption of its MRAM technology in the Lucid Air – which delivers new benchmarks in range, efficiency, and power for electric vehicles – is a strong endorsement of the value of persistent, non-volatile memory that does not have the traditional wear-out problems associated with alternative memory technologies.

Use of Non-GAAP Financial Measures

We supplement the reporting of our financial information determined under generally accepted accounting principles in the United States of America (GAAP) with Adjusted EBIDTA, which is a non-GAAP financial measure. We define Adjusted EBITDA as net income (loss) adjusted for interest expense, taxes, depreciation and amortization, stock- based compensation expense, and restructuring costs if any.

Our management and board of directors use Adjusted EBIDTA 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, our management believes that this non-GAAP measure provide useful information for investors in understanding and evaluating our operating results in the same manner as our management and our board of directors, as well as facilitating comparisons of our operating performance on a period-to-period basis.

Non-GAAP financial measures, including Adjusted EBIDTA, should not be considered as a substitute for, or superior to, measures of financial performance prepared 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

Everspin will host a conference call for analysts and investors on Thursday, November 11 at 5:00 p.m. Eastern Time. Interested participants can access the call by dialing 1-844-889-7788 and providing passcode 2075705. International callers may join the call by dialing +1-404-537-3406, using the same code. The call will also be available as a live and archived webcast in the Investor Relations section of the company’s website at investor.everspin.com.

A telephone replay of the conference call will be available approximately two hours after the call through November 19, 2021. The replay can be accessed by dialing 1-855-859-2056 and using the passcode 2075705. International callers should dial +1-404-537-3406 and enter the same passcode at the prompt.

About Everspin Technologies

Everspin Technologies, Inc. is the world’s leading provider of Magnetoresistive RAM (MRAM). Everspin MRAM delivers the industry’s most robust, highest performance non-volatile memory for Industrial IoT, Data Center, and other mission-critical applications where data persistence is paramount. Headquartered in Chandler, Arizona, Everspin provides commercially available MRAM solutions to a large and diverse customer base. For more information, visit www.everspin.com. NASDAQ: MRAM.

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 fourth quarter 2021 results, 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 December 31, 2020 filed with the SEC on March 4, 2021, its Quarterly Reports on Form 10-Q filed with the SEC during 2021, as well as in its subsequent filings with the SEC. Any forward- looking statements made by Everspin in this press release speak only as of the date on which they are made and subsequent events may cause these expectations to change. Everspin disclaims any obligations to update or alter these forward-looking statements in the future, whether as a result of new information, future events or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211111006121/en/

Anuj Aggarwal, CFO
T: 480-347-1082
E: anuj.aggarwal@everspin.com

Source: Everspin Technologies, Inc.