Everspin Press Releases
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Everspin Reports Second Quarter 2021 Financial Results
The Company Reports its First Quarter in Company History with Net Income
Second Quarter 2021 Highlights
-
Q2’21 revenue increased 15% from the prior quarter to
$11.85 million ; this was an increase of$1.57 million compared to Q1’21 revenue. Q2’21 revenue was relatively flat to Q2’20 Revenue of$11.83 million . -
The Company reported net income of
$256k for Q2’21, compared to a net loss of$460k for Q1’21 and a net loss of$1.3 million for Q2’20. -
Ended Q2’21 with cash and equivalents of
$14.2 million .
“For the 1st time in Company history, we were GAAP net income positive for a quarter. This is a testament to the hard work and extra effort by the
Second Quarter 2021 Results
Total revenue for the second quarter of 2021 was
Gross margin for the second quarter of 2021 was 60.7%, compared to 58.2% in the prior quarter and 43.9% in the second quarter of 2020.
GAAP operating expenses for the second quarter of 2021 increased to
GAAP net income for the second quarter of 2021 was
Adjusted EBITDA for the second quarter of 2021 improved to
Cash and cash equivalents as of
Business Outlook
For the third quarter of 2021,
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, supply chain constraints or interruptions, and the other risk factors described in Everspin’s filings with the
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, 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 EBITDA, 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
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 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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Assets |
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Current assets: |
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Cash and cash equivalents |
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$ |
14,219 |
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$ |
14,599 |
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Accounts receivable, net |
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10,383 |
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7,607 |
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Inventory |
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6,571 |
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5,721 |
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Prepaid expenses and other current assets |
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221 |
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270 |
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Total current assets |
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31,394 |
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28,197 |
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Property and equipment, net |
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1,288 |
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1,946 |
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Right-of-use assets |
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1,622 |
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2,313 |
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Other assets |
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313 |
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73 |
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Total assets |
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$ |
34,617 |
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$ |
32,529 |
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Liabilities and Stockholders’ Equity |
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Current liabilities: |
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Accounts payable |
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$ |
2,869 |
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$ |
2,224 |
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Accrued liabilities |
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1,742 |
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2,232 |
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Deferred revenue |
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1,815 |
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— |
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Current portion of long-term debt |
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4,313 |
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4,242 |
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Operating lease liabilities |
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1,190 |
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1,508 |
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Other liabilities |
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36 |
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31 |
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Total current liabilities |
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11,965 |
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10,237 |
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Long-term debt, net of current portion |
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2,645 |
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3,748 |
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Operating lease liabilities, net of current portion |
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466 |
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903 |
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Long-term income tax liability |
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229 |
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229 |
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Total liabilities |
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$ |
15,305 |
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$ |
15,117 |
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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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176,688 |
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174,584 |
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Accumulated deficit |
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(157,378 |
) |
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(157,174 |
) |
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Total stockholders’ equity |
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19,312 |
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17,412 |
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Total liabilities and stockholders’ equity |
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$ |
34,617 |
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$ |
32,529 |
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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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Six Months Ended |
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2021 |
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2020 |
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2021 |
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2020 |
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Product sales |
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$ |
10,187 |
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$ |
10,927 |
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$ |
19,255 |
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$ |
20,562 |
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Licensing, royalty, and other revenue |
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1,661 |
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899 |
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2,873 |
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1,372 |
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Total revenue |
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11,848 |
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11,826 |
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22,128 |
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21,934 |
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Cost of product sales |
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4,329 |
|
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6,521 |
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8,586 |
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|
11,246 |
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Cost of licensing, royalty, and other revenue |
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323 |
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|
|
114 |
|
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361 |
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|
146 |
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Total cost of sales |
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4,652 |
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6,635 |
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8,947 |
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11,392 |
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Gross profit |
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7,196 |
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5,191 |
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13,181 |
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10,542 |
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Operating expenses:1 |
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Research and development |
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3,357 |
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2,774 |
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5,796 |
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5,804 |
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General and administrative |
|
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2,338 |
|
|
|
2,448 |
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|
|
5,181 |
|
|
|
5,248 |
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Sales and marketing |
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1,045 |
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|
1,056 |
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|
|
2,032 |
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|
|
2,159 |
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Total operating expenses |
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6,740 |
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|
6,278 |
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|
13,009 |
|
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13,211 |
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Gain (loss) from operations |
|
|
456 |
|
|
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(1,087 |
) |
|
|
172 |
|
|
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(2,669 |
) |
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Interest expense |
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(144 |
) |
|
|
(172 |
) |
|
|
(296 |
) |
|
|
(344 |
) |
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Other (expense) income, net |
|
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(12 |
) |
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15 |
|
|
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(27 |
) |
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|
63 |
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Net income (loss) before income taxes |
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|
300 |
|
|
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(1,244 |
) |
|
|
(151 |
) |
|
|
(2,950 |
) |
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Income tax expense |
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(44 |
) |
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(50 |
) |
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(53 |
) |
|
|
(76 |
) |
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Net income (loss) and comprehensive income (loss) |
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$ |
256 |
|
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$ |
(1,294 |
) |
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$ |
(204 |
) |
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$ |
(3,026 |
) |
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Net income (loss) per share attributable to common stockholders: |
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Basic |
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$ |
0.01 |
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$ |
(0.07 |
) |
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$ |
(0.01 |
) |
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$ |
(0.16 |
) |
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Diluted |
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$ |
0.01 |
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$ |
(0.07 |
) |
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$ |
(0.01 |
) |
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$ |
(0.16 |
) |
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Weighted average common shares used to compute net income (loss) per common share attributable to common stockholders: |
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Basic |
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19,313,162 |
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18,747,124 |
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19,203,374 |
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18,585,339 |
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Diluted |
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19,726,064 |
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18,747,124 |
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19,203,374 |
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18,585,339 |
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1Operating expenses include stock-based compensation as follows: |
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Research and development |
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$ |
265 |
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$ |
194 |
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$ |
446 |
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$ |
356 |
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General and administrative |
|
|
305 |
|
|
|
646 |
|
|
|
790 |
|
|
|
1,231 |
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Sales and marketing |
|
|
134 |
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|
78 |
|
|
|
211 |
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|
136 |
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Total stock-based compensation |
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$ |
704 |
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$ |
918 |
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$ |
1,447 |
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$ |
1,723 |
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Reconciliation of Adjusted EBITDA (In thousands) (Unaudited) |
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Three Months Ended |
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Adjusted EBITDA reconciliation: |
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Net income (loss) |
$ |
256 |
$ |
(460 |
) |
$ |
(1,294 |
) |
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Depreciation and amortization |
|
|
373 |
|
|
383 |
|
|
|
404 |
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Stock-based compensation expense |
704 |
743 |
|
918 |
|
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Interest expense |
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|
144 |
|
|
152 |
|
|
|
172 |
|
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Income tax expense |
|
44 |
|
9 |
|
|
51 |
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Adjusted EBITDA |
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$ |
1,521 |
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$ |
827 |
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$ |
251 |
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Condensed Statement of Cash Flows (In thousands) (Unaudited) |
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Six Months Ended |
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|
2021 |
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2020 |
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Cash flows from operating activities |
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Net loss |
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$ |
(204 |
) |
|
$ |
(3,026 |
) |
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Adjustments to reconcile net loss to net cash provided by (used in) operating activities: |
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Depreciation and amortization |
|
|
756 |
|
|
|
813 |
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Stock-based compensation |
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1,447 |
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|
|
1,723 |
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Non-cash warrant revaluation |
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|
5 |
|
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|
7 |
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Non-cash interest expense |
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|
168 |
|
|
|
147 |
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Changes in operating assets and liabilities: |
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Accounts receivable |
|
|
(2,776 |
) |
|
|
(1,540 |
) |
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Inventory |
|
|
(850 |
) |
|
|
(505 |
) |
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Prepaid expenses and other current assets |
|
|
49 |
|
|
|
38 |
|
|
Accounts payable |
|
|
861 |
|
|
|
(776 |
) |
|
Accrued liabilities |
|
|
(126 |
) |
|
|
(1,008 |
) |
|
Deferred revenue |
|
|
1,815 |
|
|
|
— |
|
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Lease liabilities |
|
|
(64 |
) |
|
|
(73 |
) |
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Net cash provided by (used in) operating activities |
|
|
1,081 |
|
|
|
(4,200 |
) |
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Cash flows from investing activities |
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|
|
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Purchases of property and equipment |
|
|
(554 |
) |
|
|
(277 |
) |
|
Net cash used in investing activities |
|
|
(554 |
) |
|
|
(277 |
) |
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Cash flows from financing activities |
|
|
|
|
|
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Payments on long-term debt |
|
|
(1,200 |
) |
|
|
— |
|
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Payments on finance lease obligation |
|
|
— |
|
|
|
(5 |
) |
|
Proceeds from exercise of stock options and purchase of shares in employee stock purchase plan |
|
|
293 |
|
|
|
827 |
|
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Proceeds from issuance of common stock in at-the-market offering, net of issuance costs |
|
|
— |
|
|
|
2,084 |
|
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Net cash (used in) provided by financing activities |
|
|
(907 |
) |
|
|
2,906 |
|
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Net decrease in cash and cash equivalents |
|
|
(380 |
) |
|
|
(1,571 |
) |
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Cash and cash equivalents at beginning of period |
|
|
14,599 |
|
|
|
14,487 |
|
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Cash and cash equivalents at end of period |
|
$ |
14,219 |
|
|
$ |
12,916 |
|
|
Supplementary cash flow information: |
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Interest paid |
|
$ |
128 |
|
|
$ |
197 |
|
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Operating cash flows paid for operating leases |
|
$ |
814 |
|
|
$ |
862 |
|
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Financing cash flows paid for finance leases |
|
$ |
— |
|
|
$ |
5 |
|
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Non-cash investing and financing activities: |
|
|
|
|
|
|
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Increase of right-of-use asset and lease liability due to lease modification |
|
$ |
— |
|
|
$ |
545 |
|
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Purchases of property and equipment in accounts payable and accrued liabilities |
|
$ |
— |
|
|
$ |
22 |
|
|
Bonus settled in shares of common stock |
|
$ |
364 |
|
|
$ |
315 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20210812005847/en/
Company Contact:
E: darin.billerbeck@everspin.com
480.347.1101
Source: