Everspin Press Releases
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Everspin Announces Fourth Quarter and Fiscal Year 2016 Financial Results
Revenue for the fourth quarter of 2016 was $7.1 million, compared to $6.8 million for the fourth quarter of 2015.
Revenue for fiscal year 2016 was $27.1 million, compared to $26.5 million for fiscal year 2015.
“We experienced strong booking growth in our Gen 1 Toggle MRAM products during Q4 which represents the bulk of our current revenue and resulting in a 32% unit increase in 2016. Our next Gen 3 Spin Torque 256 Mb MRAM and 1 Gb MRAM product development work continues to proceed on schedule and customer design activity for both our Gen 1 Toggle and Gen 3 Spin Torque MRAM solutions continue to gain traction,” said
Recent Business Highlights
- After sampling pre-production 256 Mb Spin Torque MRAM chips to over two dozen customer projects, we now have completed our internal qualification ahead of schedule and have released this production ready solution to customers.
- We have begun the process to convert our early sampling activity with customers into design ins and we are already seeing customer traction for these parts, including securing three enterprise storage design ins for our Gen 3 Spin Torque MRAM products.
- Our Gen 1 Toggle MRAM technology was recently selected by a major automotive manufacturer for their in-car infotainment system and emergency call function.
- We introduced our nvNITRO line of storage accelerators based on Gen 3 Spin Torque MRAM products which deliver extremely fast read and write times with ultra-low latency and expect general availability of the cards in the second quarter.
- We strengthened the eco-system for our MRAM products through the addition of
Xilinx , a leader in all programmable FPGAs with its UltraScale Memory Interface Generator to support our Gen 3 Spin Torque DDR3 and DDR4 product interfaces.
Financial Results Conference Call
About
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 statement, including, but not limited to: conversion of bookings into revenue; the market may not adopt Everspin’s products and technology at the rate
| EVERSPIN TECHNOLOGIES, INC. Balance Sheets (In thousands, except share and per share amounts) |
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| December 31, | ||||||||
| 2016 |
2015 |
|||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 29,727 | $ | 2,307 | ||||
| Accounts receivable, net | 3,170 | 1,909 | ||||||
| Amounts due from related parties | 486 | 564 | ||||||
| Inventory | 5,416 | 4,176 | ||||||
| Prepaid expenses and other current assets | 1,050 | 190 | ||||||
| Total current assets | 39,849 | 9,146 | ||||||
| Property and equipment, net | 1,920 | 1,654 | ||||||
| Intangible assets, net | — | 132 | ||||||
| Other assets | 50 | 29 | ||||||
| Total assets | $ | 41,819 | $ | 10,961 | ||||
| Liabilities, Redeemable Convertible Preferred Stock and Stockholders’ Equity (Deficit) | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 1,502 | $ | 1,162 | ||||
| Accrued liabilities | 1,811 | 1,755 | ||||||
| Amounts due to related parties | 1,359 | 3,812 | ||||||
| Deferred income on shipments to distributors | 1,827 | 1,440 | ||||||
| Current portion of long-term debt | 3,884 | 1,175 | ||||||
| Total current liabilities | 10,383 | 9,344 | ||||||
| Redeemable convertible preferred stock warrant liability | — | 437 | ||||||
| Deferred revenue | — | 229 | ||||||
| Long-term debt, net of current portion | 4,218 | 6,739 | ||||||
| Total liabilities | 14,601 | 16,749 | ||||||
| Commitments and contingencies | ||||||||
| Redeemable convertible preferred stock, $0.0001 par value per share; zero and 68,080,000 shares authorized as of December 31, 2016 and 2015; zero and 2,486,199 shares issued and outstanding as of December 31, 2016 and 2015 | — | 64,642 | ||||||
| Stockholders’ equity (deficit): | ||||||||
| Preferred stock, $0.0001 par value per share; 5,000,000 and zero shares authorized as of December 31, 2016 and 2015; zero shares issued and outstanding as of December 31, 2016 and 2015 | — | — | ||||||
| Common stock, $0.0001 par value per share; 100,000,000 and 175,000,000 shares authorized as of December 31, 2016 and 2015; 12,498,128 and 3,015,281 shares issued and outstanding as of December 31, 2016 and 2015 | 1 | — | ||||||
| Additional paid-in capital | 123,649 | 9,301 | ||||||
| Accumulated deficit | (96,432 | ) | (79,731 | ) | ||||
| Total stockholders’ equity (deficit) | 27,218 | (70,430 | ) | |||||
| Total liabilities, redeemable convertible preferred stock and stockholders’ equity (deficit) | $ | 41,819 | $ | 10,961 | ||||
| EVERSPIN TECHNOLOGIES, INC. Statements of Operations and Comprehensive Loss (In thousands, except share and per share amounts) |
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| Year Ended December 31, | ||||||||||||
| 2016 |
2015 |
2014 | ||||||||||
| Product sales (including related party sales of $2,378, $3,472 and $3,191 for the years ended December 31, 2016, 2015 and 2014) | $ | 26,611 | $ | 25,875 | $ | 23,071 | ||||||
| Licensing and royalty revenue | 483 | 671 | 1,825 | |||||||||
| Total revenue | 27,094 | 26,546 | 24,896 | |||||||||
| Cost of sales | 12,048 | 12,568 | 11,806 | |||||||||
| Gross profit | 15,046 | 13,978 | 13,090 | |||||||||
| Operating expenses: | ||||||||||||
| Research and development | 19,233 | 21,126 | 12,664 | |||||||||
| General and administrative | 7,281 | 6,565 | 7,085 | |||||||||
| Sales and marketing | 3,706 | 3,823 | 3,259 | |||||||||
| Total operating expenses | 30,220 | 31,514 | 23,008 | |||||||||
| Loss from operations | (15,174 | ) | (17,536 | ) | (9,918 | ) | ||||||
| Interest expense | (2,347 | ) | (653 | ) | (263 | ) | ||||||
| Other income (expense), net | 820 | 6 | (2 | ) | ||||||||
| Net loss and comprehensive loss | $ | (16,701 | ) | $ | (18,183 | ) | $ | (10,183 | ) | |||
| Net loss per common share, basic and diluted | $ | (3.52 | ) | $ | (7.12 | ) | $ | (4.00 | ) | |||
| Weighted-average shares used to compute net loss per common share, basic and diluted | 4,738,496 | 2,552,205 | 2,544,578 | |||||||||
| EVERSPIN TECHNOLOGIES, INC. Statement of Cash Flows (In thousands) |
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| Year Ended December 31, | ||||||||||||
| 2016 |
2015 |
2014 |
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| Cash flows from operating activities | ||||||||||||
| Net loss | $ | (16,701 | ) | $ | (18,183 | ) | $ | (10,183 | ) | |||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||||||
| Depreciation and amortization | 826 | 1,340 | 1,517 | |||||||||
| Loss on disposal of property and equipment | 80 | — | — | |||||||||
| Stock-based compensation | 1,141 | 416 | 799 | |||||||||
| Change in fair value of redeemable convertible preferred stock warrant liability | (32 | ) | (15 | ) | (6 | ) | ||||||
| Change in fair value of derivative liability | (798 | ) | — | — | ||||||||
| Non-cash interest expense | 1,183 | 232 | 98 | |||||||||
| Compensation expense related to vesting of common stock | 965 | 1,761 | 107 | |||||||||
| Changes in operating assets and liabilities: | ||||||||||||
| Accounts receivable | (1,261 | ) | 339 | (579 | ) | |||||||
| Amounts due from related parties | 78 | 102 | (455 | ) | ||||||||
| Prepaid expenses and other current assets | (860 | ) | (77 | ) | 52 | |||||||
| Inventory | (1,240 | ) | (431 | ) | (297 | ) | ||||||
| Other assets | (21 | ) | (10 | ) | 63 | |||||||
| Accounts payable | 340 | 233 | 514 | |||||||||
| Accrued liabilities | 56 | 428 | 73 | |||||||||
| Amounts due to related parties | (2,453 | ) | 3,328 | (142 | ) | |||||||
| Deferred income on shipments to distributors | 387 | (362 | ) | 501 | ||||||||
| Deferred revenue | (229 | ) | 229 | — | ||||||||
| Net cash used in operating activities | (18,539 | ) | (10,670 | ) | (7,938 | ) | ||||||
| Cash flows from investing activities | ||||||||||||
| Purchases of property and equipment | (1,040 | ) | (1,295 | ) | (525 | ) | ||||||
| Net cash used in investing activities | (1,040 | ) | (1,295 | ) | (525 | ) | ||||||
| Cash flows from financing activities | ||||||||||||
| Proceeds from convertible promissory notes-related party | 8,500 | — | — | |||||||||
| Proceeds from debt | 1,500 | 8,000 | 4,000 | |||||||||
| Payments on debt | (1,325 | ) | (3,000 | ) | (281 | ) | ||||||
| Payments of debt issuance costs | (40 | ) | (130 | ) | (76 | ) | ||||||
| Payments on capital lease obligation | (198 | ) | (226 | ) | — | |||||||
| Proceeds from issuance of convertible preferred stock | — | — | 10,027 | |||||||||
| Proceeds from exercise of stock options | 48 | 4 | 41 | |||||||||
| Proceeds from issuance of common stock | — | — | 1 | |||||||||
| 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 | 46,999 | 4,648 | 13,712 | |||||||||
| Net increase (decrease) in cash and cash equivalents | 27,420 | (7,317 | ) | 5,249 | ||||||||
| Cash and cash equivalents at beginning of period | 2,307 | 9,624 | 4,375 | |||||||||
| Cash and cash equivalents at end of period | $ | 29,727 | $ | 2,307 | $ | 9,624 | ||||||
| Supplementary cash flow information: | ||||||||||||
| Interest paid | $ | 806 | $ | 421 | $ | 165 | ||||||
| Interest paid to related party | $ | 359 | $ | — | $ | — | ||||||
| Non-cash investing and financing activities: | ||||||||||||
| Purchase of property and equipment under capital lease obligations | $ | — | $ | 431 | $ | — | ||||||
| Conversion of convertible promissory notes into common stock | $ | 8,634 | $ | — | $ | 2,016 | ||||||
| Issuance of warrants with debt | $ | — | $ | 307 | $ | 106 | ||||||
| Conversion of redeemable convertible preferred stock into common stock | $ | 64,642 | $ | — | $ | — | ||||||
| Reclassification of warrant liability to additional paid-in capital | $ | 405 | $ | — | $ | — | ||||||
Everspin Investor Relations Contact:David H. Allen 408-427-4463 DAllen@DarrowIR.com