Core Viewpoint - Everspin Technologies, Inc. (MRAM) is positioned as a promising investment in the future of memory technologies, demonstrating strong growth metrics and an attractive valuation supported by a solid balance sheet [1]. Group 1: Company Performance - Everspin is showing convincing growth metrics, indicating a positive trajectory in its business performance [1]. - The company is trading at an attractive valuation, suggesting potential for future appreciation [1]. - A strong balance sheet underpins the company's financial stability, enhancing its investment appeal [1].

Core Insights - Everspin Technologies, Inc. has introduced new high-reliability MRAM products, the EM064LX HR and EM128LX HR, enhancing its PERSYST MRAM product line [1] Product Development - The new xSPI MRAM devices are specifically designed for extreme operating environments, showcasing the industry's leading combination of endurance, temperature performance, and data retention [1]

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]