Everspin Reports Unaudited Fourth Quarter and Full Year 2023 Financial Results

Published

Q4’23 revenue of $16.7 million and EPS of $0.09 exceeded guidance

Achieved record annual revenue and profitability in 2023

CHANDLER, Ariz.--(BUSINESS WIRE)-- Everspin Technologies, Inc. (NASDAQ: MRAM), the market leader in MRAM, today announced preliminary unaudited financial results for the fourth quarter and full year ended December 31, 2023.

“We are pleased that our fourth quarter results exceeded our expectations across the board, led by strong product and RAD Hard revenue,” said Sanjeev Aggarwal, President and Chief Executive Officer. “For the full year, our team delivered record revenue and profitability, while driving improved gross margins through operational excellence, and we closed the year with 217 design wins.”

Fourth Quarter 2023 Results

  • Total revenue of $16.7 million, an increase of 6% from $15.7 million in the fourth quarter of 2022.
  • MRAM product sales, which includes both Toggle and STT-MRAM revenue, of $12.4 million, compared to $14.6 million in the fourth quarter of 2022.
  • Licensing, royalties, patents, and other revenue of $4.3 million, compared to $1.1 million in the fourth quarter of 2022.
  • Gross margin of 58.1%, compared to 51.4% in the fourth quarter of 2022.
  • GAAP operating expenses of $8.1 million, compared to $7.5 million in the fourth quarter of 2022.
  • GAAP net income of $2.0 million, or $0.09 per diluted share, compared to net income of $0.6 million, or $0.03 per diluted share, in the fourth quarter of 2022.
  • Adjusted EBITDA of $3.6 million, compared to $2.1 million in the fourth quarter of 2022.
  • Record high cash and cash equivalents balance of $36.9 million.

Full Year 2023 Results

  • Total revenue of $63.8 million, an increase of 6% from $60.0 million in 2022.
  • MRAM product sales, which includes both Toggle and STT-MRAM revenue, of $53.1 million, compared to $55.0 million in 2022.
  • Licensing, royalties, patents, and other revenue of $10.6 million, compared to $5.0 million in 2022.
  • Gross margin of 58.4%, compared to 56.6% in 2022.
  • GAAP operating expenses of $31.4 million, compared to $27.7 million in 2022.
  • GAAP net income of $9.1 million, or $0.42 per diluted share, compared to net income of $6.1 million, or $0.29 per diluted share, in 2022.
  • Adjusted EBITDA of $15.3 million, compared to $11.8 million in 2022.

“We reported another profitable quarter, marking our 11th consecutive quarter of profitability, a key focus for the company,” said Anuj Aggarwal, Everspin’s Chief Financial Officer. “Our financial position remains strong, with no debt and the highest cash balance in the company's history.”

Business Outlook

For the first quarter 2024, Everspin expects total revenue in a range of $13.5 million to $14.5 million and GAAP net income per diluted share to be between breakeven and $0.05.

This outlook is dependent on Everspin's current expectations, which may be impacted by, among other things, evolving external conditions, such as COVID-19 and its variants, local safety guidelines, worsening impacts due to supply chain constraints or interruptions, including due to the military conflict in Ukraine, instability in the Middle East, recent market volatility, semiconductor downturn and the other risk factors described in Everspin's filings with the Securities and Exchange Commission (the "SEC"), including its Annual Report on Form 10-K for the fiscal year ended December 31, 2022, its Quarterly Reports on Form 10-Q filed with the SEC during 2023, as well as in its subsequent filings with the SEC.

Use of Non-GAAP Financial Measures

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

Everspin’s management and board of directors use Adjusted EBITDA to understand and evaluate its operating performance and trends, to prepare and approve its annual budget and to develop short-term and long-term operating and financing plans. Accordingly, Everspin believes that Adjusted EBITDA provides useful information for investors in understanding and evaluating its operating results in the same manner as its management and 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 reported in accordance with GAAP. Moreover, other companies may define Adjusted EBITDA differently, which limits the usefulness of this measure for comparisons with such other companies. Everspin encourages investors to review its 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 Wednesday, February 28, 2024, at 5:00 p.m. Eastern Time.

Dial-in details: To access the call by phone, please go to this link and you will be provided with dial-in details. To avoid delays, we encourage participants to dial into the conference call fifteen minutes ahead of the scheduled start time.

The live webcast of the call will be accessible on the Company’s website at investor.everspin.com. Approximately two hours after conclusion of the live event, an archived webcast of the conference call will be accessible from the Investor Relations section of the Company’s website for twelve months.

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 “expects” or similar expressions. These include, but are not limited to, Everspin’s future financial performance, including the outlook for first quarter 2024 results. 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, 2022 filed with the SEC on March 2, 2023, and its Quarterly Reports on Form 10-Q filed with the SEC during 2023, 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, except as required by law.

EVERSPIN TECHNOLOGIES, INC.

Balance Sheets

(In thousands, except share and per share amounts) (Unaudited)

 

 

 

December 31,

 

December 31,

 

 

2023

 

2022

Assets

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

36,946

 

 

$

26,795

 

Accounts receivable, net

 

 

11,554

 

 

 

10,665

 

Inventory

 

 

8,391

 

 

 

6,683

 

Prepaid expenses and other current assets

 

 

988

 

 

 

604

 

Total current assets

 

 

57,879

 

 

 

44,747

 

Property and equipment, net

 

 

3,717

 

 

 

3,883

 

Right-of-use assets

 

 

5,495

 

 

 

6,641

 

Other assets

 

 

212

 

 

 

62

 

Total assets

 

$

67,303

 

 

$

55,333

 

 

 

 

 

 

 

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

2,916

 

 

$

2,778

 

Accrued liabilities

 

 

4,336

 

 

 

3,533

 

Deferred revenue

 

 

336

 

 

 

821

 

Current portion of long-term debt

 

 

 

 

 

2,594

 

Lease liabilities, current portion

 

 

1,190

 

 

 

1,122

 

Other liabilities

 

 

 

 

 

27

 

Total current liabilities

 

 

8,778

 

 

 

10,875

 

Long-term debt, net of current portion

 

 

 

 

 

 

Lease liabilities, net of current portion

 

 

4,390

 

 

 

5,580

 

Long-term income tax liability

 

 

214

 

 

 

214

 

Total liabilities

 

$

13,382

 

 

$

16,669

 

Commitments and contingencies (Note 5)

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

 

Preferred stock, $0.0001 par value per share; 5,000,000 shares authorized; no shares issued and outstanding as of December 31, 2023 and December 31, 2022, respectively

 

 

 

 

 

 

Common stock, $0.0001 par value per share; 100,000,000 shares authorized; 21,080,472 and 20,374,288 shares issued and outstanding as of December 31, 2023 and December 31, 2022, respectively

 

 

2

 

 

 

2

 

Additional paid-in capital

 

 

191,569

 

 

 

185,364

 

Accumulated deficit

 

 

(137,650

)

 

 

(146,702

)

Total stockholders’ equity

 

 

53,921

 

 

 

38,664

 

Total liabilities and stockholders’ equity

 

$

67,303

 

 

$

55,333

 

EVERSPIN TECHNOLOGIES, INC.

Statements of Income and Comprehensive Income

(In thousands, except share and per share amounts)

(Unaudited)

 

 

 

Year Ended December 31,

 

 

2023

 

2022

Product sales

 

$

53,123

 

 

$

55,032

 

Licensing, royalty, patent, and other revenue

 

 

10,642

 

 

 

4,953

 

Total revenue

 

 

63,765

 

 

 

59,985

 

Cost of product sales

 

 

24,693

 

 

 

25,112

 

Cost of licensing, royalty, patent, and other revenue

 

 

1,827

 

 

 

928

 

Total cost of sales

 

 

26,520

 

 

 

26,040

 

Gross profit

 

 

37,245

 

 

 

33,945

 

Operating expenses:1

 

 

 

 

 

 

Research and development

 

 

11,776

 

 

 

11,108

 

General and administrative

 

 

14,296

 

 

 

11,741

 

Sales and marketing

 

 

5,288

 

 

 

4,869

 

Total operating expenses

 

 

31,360

 

 

 

27,718

 

Income from operations

 

 

5,885

 

 

 

6,227

 

Interest expense

 

 

(63

)

 

 

(274

)

Other income, net

 

 

3,214

 

 

 

190

 

Net income before income taxes

 

 

9,036

 

 

 

6,143

 

Income tax benefit (expense)

 

 

16

 

 

 

(14

)

Net income and comprehensive income

 

$

9,052

 

 

$

6,129

 

Net income per common share:

 

 

 

 

 

 

Basic

 

$

0.44

 

 

$

0.30

 

Diluted

 

$

0.42

 

 

$

0.29

 

Weighted average shares of common stock outstanding:

 

 

 

 

 

 

Basic

 

 

20,748,302

 

 

 

20,130,336

 

Diluted

 

 

21,367,304

 

 

 

20,775,925

 

 

 

 

 

 

 

 

1Operating expenses include stock-based compensation as follows:

Research and development

 

$

1,981

 

 

$

1,704

 

General and administrative

 

 

2,519

 

 

 

2,190

 

Sales and marketing

 

 

505

 

 

 

514

 

Total stock-based compensation

 

$

5,005

 

 

$

4,408

 

EVERSPIN TECHNOLOGIES, INC.

Statements of Cash Flows

(In thousands)

(Unaudited)

 

 

 

Year Ended December 31,

 

 

2023

 

2022

Cash flows from operating activities

 

 

 

 

 

 

Net income

 

$

9,052

 

 

$

6,129

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

Depreciation and amortization

 

 

1,205

 

 

 

982

 

Gain on sale of property and equipment

 

 

(15

)

 

 

(167

)

Stock-based compensation

 

 

5,005

 

 

 

4,408

 

Loss on prepayment and termination of credit facility

 

 

170

 

 

 

 

Non-cash warrant revaluation

 

 

(25

)

 

 

(23

)

Non-cash interest expense

 

 

26

 

 

 

105

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

Accounts receivable

 

 

(889

)

 

 

(2,472

)

Inventory

 

 

(1,708

)

 

 

(287

)

Prepaid expenses and other current assets

 

 

(384

)

 

 

158

 

Other assets

 

 

(150

)

 

 

(28

)

Accounts payable

 

 

499

 

 

 

563

 

Accrued liabilities

 

 

803

 

 

 

(46

)

Deferred revenue

 

 

(485

)

 

 

(11

)

Lease liabilities, net

 

 

24

 

 

 

182

 

Net cash provided by operating activities

 

 

13,128

 

 

 

9,493

 

Cash flows from investing activities

 

 

 

 

 

 

Purchases of property and equipment

 

 

(1,404

)

 

 

(2,788

)

Proceeds received from sale of property and equipment

 

 

19

 

 

 

202

 

Net cash used in investing activities

 

 

(1,385

)

 

 

(2,586

)

Cash flows from financing activities

 

 

 

 

 

 

Payments on long-term debt

 

 

(2,790

)

 

 

(2,400

)

Payments of debt issuance costs

 

 

 

 

 

(10

)

Proceeds from exercise of stock options and purchase of shares in employee stock purchase plan

 

 

1,198

 

 

 

889

 

Net cash used in financing activities

 

 

(1,592

)

 

 

(1,521

)

Net increase in cash and cash equivalents

 

 

10,151

 

 

 

5,386

 

Cash and cash equivalents at beginning of period

 

 

26,795

 

 

 

21,409

 

Cash and cash equivalents at end of period

 

$

36,946

 

 

$

26,795

 

Supplementary cash flow information:

 

 

 

 

 

 

Interest paid

 

$

37

 

 

$

169

 

Operating cash flows paid for operating leases

 

$

1,384

 

 

$

1,320

 

Financing cash flows paid for finance leases

 

$

12

 

 

$

11

 

Non-cash investing and financing activities:

 

 

 

 

 

 

Right-of-use assets obtained in exchange for operating lease liabilities

 

$

 

 

$

6,837

 

Right-of-use assets obtained in exchange for finance lease liabilities

 

$

 

 

$

36

 

Purchases of property and equipment in accounts payable and accrued liabilities

 

$

446

 

 

$

807

 

Cashless exercise of warrants

 

$

2

 

 

$

 

EVERSPIN TECHNOLOGIES, INC.

Reconciliation of Adjusted EBITDA

(In thousands)

(Unaudited)

 

 

Year Ended December 31,

 

 

2023

 

2022

Adjusted EBITDA reconciliation:

 

 

 

 

 

 

Net income

 

$

9,052

 

 

$

6,129

Depreciation and amortization

 

 

1,205

 

 

 

982

 

Stock-based compensation expense

 

 

5,005

 

 

 

4,408

 

Interest expense

 

 

63

 

 

 

274

 

Income tax (benefit) expense

 

 

(16

)

 

 

14

 

Adjusted EBITDA

 

$

15,309

 

 

$

11,807

 

 

Investor Relations: Monica Gould The Blueshirt Group T: 212-871-3927 ir@everspin.com

Source: Everspin Technologies, Inc.

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