CHANDLER, Ariz.--(BUSINESS WIRE)--Everspin Technologies, Inc. (NASDAQ: MRAM), the world's leading developer and manufacturer of persistent Magnetoresistive Random Access Memory (MRAM) solutions, today announced its newest high-reliability additions to the PERSYST MRAM product line: the EM064LX HR and EM128LX HR devices. Designed for extreme operating environments, these new xSPI MRAM products deliver the industry's most robust combination of endurance, temperature performance and data retention. ...

Financial Data and Key Metrics Changes - The company reported third-quarter revenue of $14.1 million, representing a 16% year-over-year increase and aligning with guidance [5][9] - Non-GAAP EPS for the quarter was $0.06 per diluted share, towards the high end of expectations [5][11] - GAAP gross margin improved to 51.3%, up over 200 basis points from 49.2% in the same quarter last year [9][10] - Cash and cash equivalents at the end of the quarter were $45.3 million, a slight increase from $45 million in the previous quarter [12] Business Line Data and Key Metrics Changes - MRAM product sales, including both toggle and STT-MRAM revenue, reached $12.7 million, up 22% year-over-year [9][10] - Licensing, royalty, patent, and other revenue decreased to $1.4 million from $1.7 million in Q3 2024 due to project completions [10] Market Data and Key Metrics Changes - The low-earth orbital (LEO) satellite market is expected to grow rapidly, with Everspin's MRAM technology well-suited for these applications [5][6] - Continued demand for toggle MRAM products in data centers, with significant customers including Dell and Supermicro [5] Company Strategy and Development Direction - The company is focused on scaling its business and converting design wins into revenue, particularly in the LEO satellite and automotive sectors [5][13] - A strategic collaboration with Quintaris aims to enhance the reliability and safety of RISC-V-based platforms using MRAM technology [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining strong gross margins due to yield improvements and factory utilization [15] - The company anticipates Q4 total revenue in the range of $14 million to $15 million, with non-GAAP net income per diluted share expected between $0.08 and $0.13 [13] Other Important Information - The company recognized $1.2 million in other income related to a strategic award for developing a sustainment plan for MRAM manufacturing [10] - The balance sheet remains strong and debt-free, with operational cash flow decreasing to $0.9 million from $5 million in the previous quarter [12][13] Q&A Session Summary Question: Sustainability of non-GAAP gross margin over 52% - Management indicated that improvements in product gross margin are expected to be sustainable moving forward [15] Question: Details on sequential decline in licensing and other revenue - Management explained that this revenue can be lumpy and is expected to remain in the 10%-15% range going forward [16][17] Question: Future expectations for operating expenses - Management confirmed that operating expenses are expected to remain consistent in the $7.5 million range [22][23]

Financial Data and Key Metrics Changes - The company reported third-quarter revenue of $14.1 million, representing a 16% year-over-year increase and aligning with guidance [5][9] - Non-GAAP EPS was $0.06 per diluted share, towards the high end of expectations, compared to $0.17 in the same quarter last year [5][11] - GAAP gross margin improved to 51.3%, up from 49.2% year-over-year [9][10] - Cash and cash equivalents increased to $45.3 million, up $0.3 million from the previous quarter [11] Business Line Data and Key Metrics Changes - MRAM product sales reached $12.7 million, a 22% increase year-over-year [9] - Licensing, royalty, patent, and other revenue decreased to $1.4 million from $1.7 million in Q3 2024 due to project completions [9][10] - Revenue from persistent MRAM solutions for Lucid Motors is expected to increase as production ramps up [7] Market Data and Key Metrics Changes - The low-earth orbital (LEO) satellite market is anticipated to grow rapidly, with Everspin's MRAM technology well-suited for these applications [5][6] - Design wins in the LEO satellite market are expected to translate into significant revenue as the market expands [6] Company Strategy and Development Direction - The company is focused on scaling its business and converting design wins into revenue [12] - A strategic collaboration with Quintaris aims to enhance the reliability and safety of RISC-V-based platforms [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining strong gross margins due to yield improvements and factory utilization [15] - The company expects Q4 total revenue in the range of $14 million to $15 million, with non-GAAP net income per diluted share anticipated between $0.08 and $0.13 [12] Other Important Information - The company recognized $1.2 million in other income related to a strategic award for developing a long-term manufacturing plan for aerospace and defense [10][11] - No tariff-related impacts were experienced in Q3, and none are expected in the upcoming quarter [12] Q&A Session Summary Question: Sustainability of non-GAAP gross margin over 52% - Management indicated that the improvement in product gross margin is expected to be sustainable moving forward [15] Question: Sequential decline in licensing, royalty, patent, and other revenue - Management explained that this revenue can be lumpy and is expected to remain around the 10% range going forward [16][17] Question: Future operating expenses (OpEx) expectations - Management confirmed that OpEx is expected to remain consistent in the $7.5 million range [22][23]

Revenue and Sales Performance - Total revenue increased by $2.0 million, or 16.3%, from $12.1 million in Q3 2024 to $14.1 million in Q3 2025, driven by a $2.2 million increase in product sales[78] - Product sales accounted for 90% of total revenue in Q3 2025, up from 86% in Q3 2024[76] - Total revenue increased by $3.2 million, or 8.7%, from $37.2 million in the nine months ended September 30, 2024, to $40.4 million in the same period of 2025[93] - Product sales revenue increased by $3.6 million, or 11.6%, from $31.2 million in the nine months ended September 30, 2024, to $34.8 million in the same period of 2025[91] Income and Profitability - Adjusted net income for Q3 2025 was $1.5 million, compared to a loss of $1.8 million in Q3 2024[75] - The net loss for the nine months ended September 30, 2025, was $1.8 million, an increase from a net loss of $0.4 million in the same period of 2024[109][110] Expenses - Research and development expenses increased by $0.2 million, or 5.9%, to $3.6 million in Q3 2025, representing 25% of total revenue[84] - General and administrative expenses rose by $0.3 million, or 9.7%, to $3.7 million in Q3 2025, accounting for 26% of total revenue[85] - Sales and marketing expenses increased by $0.2 million, or 12.0%, from $1.3 million in Q3 2024 to $1.5 million in Q3 2025[86] - Research and development expenses increased by $0.3 million, or 2.5%, from $10.3 million in the nine months ended September 30, 2024, to $10.5 million in the same period of 2025[99] - General and administrative expenses increased by $0.5 million, or 4.9%, from $10.7 million in the nine months ended September 30, 2024, to $11.2 million in the same period of 2025[100] Margins and Cost - Gross margin improved from 49.2% in Q3 2024 to 51.3% in Q3 2025 due to better yields and fabrication facility utilization[82] - Gross margin decreased from 52.0% in the nine months ended September 30, 2024, to 51.3% in the same period of 2025[96] - Cost of product sales increased by $0.9 million, or 15.2%, from $5.8 million in Q3 2024 to $6.6 million in Q3 2025[80] Cash Flow and Financial Position - Cash provided by operating activities was $7.3 million for the nine months ended September 30, 2025, compared to $3.3 million for the same period in 2024[108] - As of September 30, 2025, the company had $45.3 million in cash and cash equivalents, up from $42.1 million as of December 31, 2024[105] - Cash provided by operating activities for the nine months ended September 30, 2025, was $7.3 million, compared to $3.3 million for the same period in 2024, representing a 121.2% increase[109][110] - Cash used in investing activities during the nine months ended September 30, 2025, was $4.7 million, significantly higher than $1.3 million in 2024, primarily due to $3.2 million in manufacturing equipment purchases[111] - Cash provided by financing activities for the nine months ended September 30, 2025, was $0.6 million, slightly lower than $0.7 million in 2024[112][113] Other Income and Revenue Streams - Licensing, royalty, patent, and other revenue decreased by $0.3 million, or 17.0%, from $1.7 million in Q3 2024 to $1.4 million in Q3 2025[79] - Interest income decreased by $31,000, or 6.7%, from $0.5 million in Q3 2024 to $0.4 million in Q3 2025, primarily due to a decrease in interest rates[87] - Other income, net decreased by $2.8 million, or 70.4%, from $3.9 million in Q3 2024 to $1.2 million in Q3 2025, related to a strategic award for manufacturing services[88] Operational Insights - The company maintains a direct selling relationship with key customers and organizes its sales team into three primary regions: North America, EMEA, and APAC[78] - The company is a leading supplier of discrete MRAM components and has over 15 years of MRAM technology and manufacturing leadership[71] Changes in Assets and Liabilities - The change in net operating assets and liabilities for the nine months ended September 30, 2025, included a decrease in accounts receivable of $3.0 million and an increase in inventory of $2.7 million[109] - The increase in deferred revenue for the nine months ended September 30, 2025, was $0.9 million, indicating growth in future revenue recognition[109] - The company reported an increase in accrued liabilities of $0.5 million and contract obligations of $0.5 million during the nine months ended September 30, 2025[109] Accounting Policies - There were no changes to critical accounting policies and estimates that materially impacted the condensed financial statements[116] - The company continues to prepare its financial statements in accordance with GAAP, relying on historical experience and reasonable assumptions[114][115]

Revenue Performance - Total revenue for Q3 2025 was $14.1 million, a 16.5% increase from $12.1 million in Q3 2024[7] - MRAM product sales reached $12.7 million, up from $10.4 million in the same quarter last year, representing a 22.1% growth[7] - Revenue for the three months ended September 30, 2025, was $14,060 million, representing a 16% year-over-year increase from $12,093 million[22] Profitability Metrics - Gross margin improved to 51.3%, compared to 49.2% in Q3 2024[7] - Gross profit for the same period was $7,206 million, with a gross margin of 51.3%, up 2.1 percentage points from 49.2%[22] - The company reported a gross margin of 52.4% on a non-GAAP basis for the three months ended September 30, 2025, compared to 51.0% in the previous year[23] Net Income and Loss - GAAP net income was $54,000, or $0.00 per diluted share, down from $2.3 million, or $0.10 per diluted share, in Q3 2024[7] - Non-GAAP net income for Q3 2025 was $1.5 million, or $0.06 per diluted share, compared to $3.8 million, or $0.17 per diluted share, in Q3 2024[7] - Net income for the three months ended September 30, 2025, was $54 million, a significant decrease of 98% from $2,271 million in 2024[22] - For the nine months ended September 30, 2025, the net loss was $1,782 million, compared to a net loss of $433 million in 2024[20] Operating Expenses - Operating expenses for Q3 2025 were $8.8 million, compared to $8.1 million in Q3 2024[7] - Operating income improved to a loss of $1,545 million, a 27% reduction in loss compared to $2,115 million in the prior year[22] - Non-GAAP operating income for the same period was a loss of $138 million, a 76% improvement from a loss of $583 million in the previous year[23] Cash and Assets - Cash and cash equivalents increased by $3.2 million to $45.3 million as of September 30, 2025, compared to $42.1 million at the end of 2024[7] - Cash and cash equivalents at the end of the period increased to $45,257 million from $39,588 million in 2024[20] - Everspin's total assets as of September 30, 2025, were $80.3 million, an increase from $77.8 million at the end of 2024[16] Future Projections - Everspin expects Q4 2025 total revenue to be between $14.0 million and $15.0 million, with GAAP net income per diluted share projected between $0.02 and $0.07[5] - The company reported interest and other income of $1.6 million, down from $4.4 million in Q3 2024[7] - Operating cash flows provided $7,336 million, significantly up from $3,266 million in the previous year[20] - Stock-based compensation for the three months ended September 30, 2025, was $4,403 million, slightly down from $5,108 million in 2024[20]

Core Insights - Quintauris and Everspin Technologies have announced a strategic collaboration to enhance memory solutions within the Quintauris ecosystem [1] - The partnership focuses on improving the reliability and safety of RISC-V-based platforms, particularly in automotive and industrial applications [1] Company Overview - Quintauris is positioned as a single source for compatible RISC-V-based products [1] - Everspin Technologies is recognized as the global leader in magnetoresistive RAM (MRAM) and spin-transfer torque MRAM (STT-MRAM) [1] Industry Impact - The collaboration aims to address the growing demand for advanced memory solutions in the automotive and industrial sectors [1] - Strengthening the reliability and safety of RISC-V platforms is crucial for their adoption in critical applications [1]

Core Viewpoint - Everspin Technologies has reported its first year-over-year increase in quarterly revenue, indicating a return to growth for the company [1]. Company Summary - Everspin Technologies is recognized as the leading provider of magnetoresistive RAM (MRAM) [1]. - The company has taken measures to boost its stock performance, which includes the recent positive revenue report [1].

Everspin Technologies Q3 Investor Summit Summary Company Overview - Everspin Technologies is a leading provider of embedded technology and products for mission-critical applications, focusing on end-to-end supply from design to manufacturing [2][3] - The company has been in production for over 15 years, having shipped over 115 million units to more than 2,000 customers globally [3] Core Business and Technology - Everspin specializes in MRAM (Magnetoresistive Random Access Memory), which is radiation immune and used in various applications including data centers, industrial automation, IoT, automotive, and aerospace [3][4] - The company holds over 650 patents and has a strong financial position with zero debt and positive free cash flow [4][5] Market Opportunity - The total addressable market (TAM) for Everspin's products is projected to exceed $4.3 billion by 2029, with significant growth in sectors such as automotive, industrial automation, and aerospace [5][10] - Everspin aims to capture a revenue of $100 million by 2029, up from approximately $55 to $60 million currently [11][25] Product Categories 1. **Persist**: Designed for applications requiring fast read/write speeds and extreme temperature resilience, used in industrial automation and casino gaming [6][7] 2. **Genesis**: Aimed at replacing NOR flash memory, with production expected to start in 2026, targeting a $3.5 billion market [8][10] 3. **AgILYST**: Focused on AI applications with SRAM-like performance, expected to enter production in a few years [9][10] Key Applications - Automotive: Used in battery management systems and real-time monitoring for vehicles [12][13] - Aerospace: Designed into NASA missions and various flight control systems [15][18] - Industrial Automation: Enhances reliability and efficiency in manufacturing processes [14][20] Financial Performance - Everspin reported revenue of $26 million in the first half of 2025, with expectations to maintain a strong revenue range of $50+ million [25][26] - The company has consistently achieved gross margins in the upper 40% to 50% range [26] Business Model - Approximately 85% to 90% of Everspin's revenue comes from product sales, distributed evenly across Asia, Europe, and North America [30] - The company focuses on sectors such as industrial, gaming, medical, avionics, and data centers [31] Milestones and Future Outlook - Everspin has developed a range of memory technologies since its inception, with significant milestones including the introduction of data logging memory in 2006 and data center memory in 2017/2018 [32][34] - The company aims to revolutionize the memory market with its MRAM technology, addressing various memory needs across different applications [34] Conclusion - Everspin Technologies is positioned for growth in the MRAM market, with a strong product pipeline and a focus on mission-critical applications across multiple industries [38]

Everspin Fireside Chat Summary Company Overview - **Company Name**: Everspin Technologies - **Ticker Symbol**: MRAM - **Industry**: Semiconductor Manufacturing, specifically focusing on magnetic-based memory solutions [1][4] Core Points and Arguments - **Technology and Product Offerings**: - Everspin specializes in MRAM (Magnetoresistive Random Access Memory), which offers faster read and write speeds compared to traditional NOR flash memory, with read/write times in nanoseconds versus microseconds [6][7] - The company has shipped over 200 million units since its inception in 2008, serving over 2,000 customers globally [5] - Product categories include: - **Persist**: Performance memories for systems, suitable for extreme temperatures [12][13] - **UNESYS**: Unified data and code for systems, enhancing FPGA configurations [14] - **Agilus**: Agile memories targeting future applications like AI [12][13] - **Market Applications**: - Key applications include industrial automation, automotive (battery management systems), casino gaming, and aerospace/defense [9][25][26] - Everspin's MRAM is positioned as a solution for mission-critical applications, particularly in environments where data integrity is essential [18][52] - **Business Model**: - Revenue streams include product sales, licensing and royalty agreements, and government contracts [17][20] - The company has a diversified customer base, including major corporations like Siemens, IBM, and Schneider [23][54] Growth Opportunities - Everspin anticipates growth in sectors where traditional NOR flash memory is limited, particularly in high-density applications [26][52] - The total addressable market (TAM) for Everspin's products is projected to be approximately $4.3 billion by 2029 [52] - The company is focusing on expanding its product offerings to include higher density MRAM solutions, targeting densities from 256 megabits to 2 gigabits [28][52] Competitive Landscape - Everspin's primary competitor is NetSol, which offers a limited range of MRAM products [30][31] - Everspin differentiates itself with a broader product range and a focus on various applications, including aerospace and defense [32] Market Trends - The memory industry is shifting away from NOR flash due to scaling limitations, creating opportunities for MRAM [33] - The low earth orbital (LEO) market is emerging, with a projected increase in satellite deployments, where Everspin's radiation-tolerant MRAM can be advantageous [34] - The rise of AI applications in data centers presents further opportunities for MRAM, as it can replace traditional SRAM and NOR flash with faster, non-volatile memory solutions [36][38] Financial Performance - Everspin reported a solid financial quarter, exceeding guidance with revenues of $13.2 million and a non-GAAP EPS of $0.03 [45][46] - The company is seeing a recovery in order growth after a period of inventory overbuild [46][47] Strategic Vision - The CEO envisions MRAM as the future of memory technology, emphasizing its versatility and reliability across various applications [55][56] - Everspin aims to reduce power consumption and improve efficiency in memory solutions, particularly in the context of increasing demands from AI applications [56][57]

Financial Data and Key Metrics Changes - The company reported revenue of $13.2 million for Q2 2025, which is at the high end of the guidance range of $12.5 million to $13.5 million [6][13] - Non-GAAP earnings per share were $0.03, a significant improvement from a non-GAAP net loss of $0.03 per share in Q2 2024 [16] - GAAP gross margin was 51.3%, slightly down from 51.4% in Q1 2025 but up from 49% in Q2 2024 [14] - Cash and cash equivalents increased to $45 million, up $2.8 million from the previous quarter [17] Business Line Data and Key Metrics Changes - MRAM product sales, including both Toggle and STT MRAM revenue, were $11.1 million, compared to $9.9 million in Q2 2024 and $11 million in Q1 2025 [13] - Licensing, royalty, patent, and other revenue increased to $2.1 million, up from $0.7 million in Q2 2024, driven by the ramp in the contract with Purdue [14] Market Data and Key Metrics Changes - The data center business experienced high single-digit sequential growth, driven by strong demand from customers like Dell and Supermicro [6] - Industrial automation saw sequential growth in excess of 20% from Q1 2025, indicating strong momentum in this segment [6] - The company noted a depletion of inventories at customers globally, particularly in the Asian region, which is expected to lead to increased orders [30] Company Strategy and Development Direction - The company is focused on expanding its executive team to enhance sales efforts, with the addition of a dedicated VP of Sales [12] - Everspin aims to ramp up production of new products in the XPy family by late 2025, targeting aerospace, defense, and extreme industrial environments [8] - The company continues to expect 2025 to be weighted more heavily towards the second half of the year due to typical seasonality [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing demand for MRAM technology and the successful execution of their business plan [2] - The company does not expect a material impact from tariffs on its results in the coming quarters [17] - Management anticipates total revenue for Q3 2025 to be in the range of $13.5 million to $14.5 million, with non-GAAP net income per share expected between $0.02 and $0.07 [18] Other Important Information - The company recognized $800,000 in other income related to a strategic award for developing a long-term plan for manufacturing services in aerospace and defense [15] - Everspin continues to ship and recognize revenue from its ongoing project with Lucid Motors for their gravity SUV, expecting volumes to increase as production ramps up [8] Q&A Session Summary Question: Inquiry about product gross margins - Management acknowledged that product gross margins are slightly lower than previous quarters but are working on improving yields and margins [20][22] Question: Expectations for new product contributions - Management indicated that new products are ramping up, particularly in the aerospace segment, and expect to see contributions in Q3 and Q4 [25][28] Question: Dynamics in broader industrial markets - Management noted a depletion of inventories at customers globally, particularly in Asia, leading to increased orders in automation and data center applications [30] Question: Update on specific contracts - Management confirmed a pickup in activity related to the Amentum contract expected in the second half of the year [32][34] Question: Status of QuickLogic relationship - Management stated that they completed the first phase of the QuickLogic project and are awaiting renewal for the next phase [41][42] Question: Progress with Lattice Semiconductor - Management reported ongoing evaluation activities with Lattice Semiconductor, with parts available for customer evaluation [45]