Financial Data and Key Metrics Changes - The company reported revenue of $13.1 million for Q1 2025, exceeding the guidance range of $12 million to $13 million, driven by stronger-than-expected product revenue [5][14] - Non-GAAP EPS was $0.02, above the guidance range of a non-GAAP net loss of $0.05 to breakeven [16] - GAAP gross margin was 51.4%, slightly up from 51.3% in Q4 2024 but down from 56.5% in Q1 2024 due to a lower mix of high-margin licensing revenue [15][16] - The company ended the quarter with cash and cash equivalents of $42.2 million, a slight increase from $42.1 million in the previous quarter [17] Business Line Data and Key Metrics Changes - MRAM product sales, including both Toggle and STT MRAM revenue, were $11 million, consistent with Q4 2024 and slightly up from $10.9 million in Q1 2024 [14][15] - Licensing, royalty, patent, and other revenue decreased to $2.1 million from $3.6 million in Q1 2024, attributed to lower revenue from the Front Grade project [15] Market Data and Key Metrics Changes - The company is experiencing increased interest in its products, as evidenced by strong customer engagement at the Embedded World event in Germany [10] - The company anticipates that product revenue from ongoing projects will remain consistent for the remainder of the year [6] Company Strategy and Development Direction - The company is focused on scaling its business and converting design wins into revenue while maintaining financial discipline [19] - Everspin is committed to advancing its MRAM technology, with ongoing projects in various sectors, including automotive and aerospace [6][13] Management's Comments on Operating Environment and Future Outlook - Management expects 2025 to be weighted more heavily towards the second half of the year due to typical seasonality [14][18] - The company does not anticipate a direct material impact from tariffs on its results, as direct sales to China are not significant [22][24] Other Important Information - The company is entering the second phase of its project with Front Grade Technologies to develop a custom radiation-hardened STT MRAM macro [7] - Everspin has partnered with Blue Origin for a lunar mission and is involved in projects with AstroDigital for deep space missions [13] Q&A Session Summary Question: Impact of tariffs on products manufactured in the U.S. and shipped to China - The company indicated that while some wafers are sourced from GlobalFoundries, direct sales to China are not significant, thus minimizing tariff risk [22][24] Question: Signs of cyclical recovery in the industrial segment - Management noted an improvement in backlog and traction on STT products, indicating signs of cyclical recovery [30][40] Question: Guidance for second quarter revenue split between products and licensing - The company expects overall revenue to move upward but did not provide specific guidance on the split [33] Question: Commentary on gross margins and expectations for the rest of the year - Management stated that gross margins are expected to remain consistent at around 51% for the rest of the year [37] Question: Expectations for operating expenses throughout the year - Operating expenses are expected to remain in the same range, with some increases due to product development work [46]

Exhibit 99.1 Everspin Reports Unaudited First Quarter 2025 Financial Results Chandler, AZ, April 30, 2025 — Everspin Technologies, Inc. (NASDAQ: MRAM), the world's leading developer and manufacturer of magnetoresistive random access memory (MRAM) persistent memory solutions, announced preliminary unaudited financial results for the first quarter ended March 31, 2025. "Our recent design wins showcase the strength of our solutions for mission critical applications, as evidenced by our recent contract with Ast ...

PART I [Business](index=6&type=section&id=Item%201.%20Business) Everspin Technologies, a pioneer in MRAM, reported reduced revenue and net income in FY2024, operating a hybrid manufacturing model and serving a concentrated customer base Fiscal Year 2024 vs 2023 Financial Highlights | Metric | 2024 | 2023 | | :--- | :--- | :--- | | Revenue | $50.4 million | $63.8 million | | Gross Margin | 51.8% | 58.4% | | Net Income | $0.8 million | $9.1 million | - The company is a leading supplier of discrete MRAM components and also generates revenue through licensing its technology and intellectual property[17](index=17&type=chunk) - Everspin's product portfolio includes: - **Toggle MRAM:** In production since 2008, used in industrial, medical, automotive, and data center markets - **STT-MRAM:** Targets DRAM, SRAM, and NOR Flash replacement, with applications in SSDs, persistent memory, and FPGAs - **TMR Sensors:** 3D magnetic field sensors for consumer electronics[21](index=21&type=chunk)[22](index=22&type=chunk)[27](index=27&type=chunk) - The company utilizes a hybrid manufacturing strategy, performing back-end-of-line (BEOL) processing at its 200mm facility in Chandler, AZ, and partnering with GLOBALFOUNDRIES for full-flow 300mm STT-MRAM production[19](index=19&type=chunk)[39](index=39&type=chunk) - A significant portion of revenue comes from a concentrated customer base. In 2024, the two largest end customers accounted for **37% of total revenue**, with one customer representing more than 10%. In 2023, the two largest customers accounted for **32% of revenue**[36](index=36&type=chunk) - As of December 31, 2024, the company held **563 issued patents** and had **131 pending patent applications**[56](index=56&type=chunk) [Risk Factors](index=18&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks from the cyclical semiconductor industry, supply chain dependencies, intense competition, customer concentration, and cybersecurity threats - The business is subject to the highly cyclical nature of the semiconductor industry, which can lead to significant fluctuations in product demand, capacity, and pricing[65](index=65&type=chunk) - Everspin relies on third parties for manufacturing, packaging, and testing, particularly a single foundry, GLOBALFOUNDRIES, for higher-density products. This exposes the company to risks of capacity constraints, price fluctuations, and reduced control over production[69](index=69&type=chunk)[70](index=70&type=chunk) - The loss of one or several major customers could significantly harm financial results, as a large portion of revenue is derived from a small group of customers[88](index=88&type=chunk)[89](index=89&type=chunk) - The company's ability to use its net operating loss (NOL) carryforwards is limited. As of Dec 31, 2024, federal NOLs were approximately **$89.2 million**. A 2016 ownership change under IRC Section 382 is expected to cause **$43.8 million** of these federal NOLs to expire unutilized[133](index=133&type=chunk)[134](index=134&type=chunk) - Cybersecurity threats, including ransomware and data breaches, pose a significant risk to operations, intellectual property, and sensitive data, both within the company's systems and those of its third-party service providers[119](index=119&type=chunk)[121](index=121&type=chunk)[125](index=125&type=chunk) [Unresolved Staff Comments](index=46&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments - None[154](index=154&type=chunk) [Cybersecurity](index=46&type=section&id=Item%201C.%20Cybersecurity) Everspin implements a cybersecurity risk management program, overseen by its board and managed by a dedicated team, to identify, assess, and mitigate threats to its information systems - The company implements processes to identify, assess, and manage material risks from cybersecurity threats to its information systems and data[155](index=155&type=chunk) - A Cybersecurity Team, led by the Senior Director of IT and involving internal functions and external service providers, manages cybersecurity risks[156](index=156&type=chunk)[159](index=159&type=chunk) - The board of directors oversees the cybersecurity risk management process, receiving periodic reports from management on significant threats and mitigation efforts[162](index=162&type=chunk)[165](index=165&type=chunk) [Properties](index=48&type=section&id=Item%202.%20Properties) The company leases all its facilities, including headquarters and manufacturing in Arizona and a design facility in Texas, deemed adequate for operations - The company leases office and manufacturing space in Chandler, Arizona, and a design facility in Austin, Texas[166](index=166&type=chunk) - Lease terms for its main facilities extend to 2027, 2028, and 2029, with options to renew[167](index=167&type=chunk) [Legal Proceedings](index=48&type=section&id=Item%203.%20Legal%20Proceedings) The company is not aware of any legal proceedings that would materially adversely affect its financial position or operations - The company is not aware of any legal matters that will have a material adverse effect on its financial condition[169](index=169&type=chunk) [Mine Safety Disclosures](index=48&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[170](index=170&type=chunk) PART II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=49&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Everspin's common stock trades on Nasdaq under 'MRAM'; the company has never paid dividends and plans to retain earnings for growth - The company's common stock trades on the Nasdaq Global Market under the symbol "MRAM"[172](index=172&type=chunk) - Everspin has never declared or paid cash dividends and does not currently plan to, intending to retain earnings for growth[174](index=174&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=50&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In 2024, revenue and net income declined significantly due to lower product sales and gross margin, resulting in an operating loss, despite an improved cash position Results of Operations (in thousands) | Line Item | 2024 | 2023 | | :--- | :--- | :--- | | Total revenue | $50,402 | $63,765 | | Gross profit | $26,126 | $37,245 | | (Loss) income from operations | $(7,091) | $5,885 | | Net income | $781 | $9,052 | Revenue Breakdown (in thousands) | Revenue Type | 2024 | 2023 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Product sales | $42,203 | $53,123 | $(10,920) | (20.6)% | | Licensing, royalty, etc. | $8,199 | $10,642 | $(2,443) | (23.0)% | | **Total revenue** | **$50,402** | **$63,765** | **$(13,363)** | **(21.0)%** | Adjusted EBITDA Reconciliation (in thousands) | Line Item | 2024 | 2023 | | :--- | :--- | :--- | | Net income | $781 | $9,052 | | Depreciation and amortization | $1,731 | $1,205 | | Stock-based compensation | $6,713 | $5,005 | | Interest expense | $— | $63 | | Income tax benefit | $(40) | $(16) | | **Adjusted EBITDA** | **$9,185** | **$15,309** | - Gross margin decreased from **58.4% in 2023 to 51.8% in 2024**, attributed to a shift in product mix, decreased FAB loadings, and lower licensing revenue, partially offset by yield improvements[191](index=191&type=chunk) - Research and development expenses increased by **16.2% to $13.7 million in 2024**, mainly for the development of the new xSPI family of STT-MRAM products[193](index=193&type=chunk) Cash Flow Summary (in thousands) | Cash Flow Activity | 2024 | 2023 | | :--- | :--- | :--- | | Cash provided by operating activities | $7,099 | $13,128 | | Cash used in investing activities | $(3,060) | $(1,385) | | Cash provided by (used in) financing activities | $1,112 | $(1,592) | [Quantitative and Qualitative Disclosures About Market Risk](index=64&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section is not required as Everspin is a smaller reporting company - Not required for a smaller reporting company[225](index=225&type=chunk) [Financial Statements and Supplementary Data](index=65&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents the audited financial statements for 2024 and 2023, including the auditor's unqualified opinion and critical audit matters, along with detailed notes [Report of Independent Registered Public Accounting Firm](index=66&type=section&id=Report%20of%20Independent%20Registered%20Public%20Accounting%20Firm) Ernst & Young LLP issued an unqualified opinion on the financial statements, highlighting critical audit matters related to inventory accounting and a strategic award - The auditor, Ernst & Young LLP, issued an unqualified (clean) opinion on the financial statements[231](index=231&type=chunk) - Critical Audit Matters identified were: - **Accounting for Inventory:** Challenging due to high transaction volume and multiple data sources, including third-party suppliers - **Accounting for the strategic award:** Challenging due to the complex and judgmental nature of evaluating its terms and applying accounting guidance by analogy[236](index=236&type=chunk)[238](index=238&type=chunk) [Financial Statements](index=68&type=section&id=Financial%20Statements) Financial statements show asset growth and increased cash in 2024, despite a significant decline in net income and revenue compared to 2023 Balance Sheet Highlights (in thousands) | Account | Dec 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $42,097 | $36,946 | | Total current assets | $64,201 | $57,879 | | Total assets | $77,789 | $67,303 | | Total current liabilities | $9,914 | $8,778 | | Total liabilities | $15,196 | $13,382 | | Total stockholders' equity | $62,593 | $53,921 | Income Statement Highlights (in thousands) | Account | 2024 | 2023 | | :--- | :--- | :--- | | Total revenue | $50,402 | $63,765 | | Gross profit | $26,126 | $37,245 | | (Loss) income from operations | $(7,091) | $5,885 | | Net income | $781 | $9,052 | | Diluted EPS | $0.04 | $0.42 | [Notes to Financial Statements](index=72&type=section&id=Notes%20to%20Financial%20Statements) Notes detail accounting policies, revenue disaggregation, a significant strategic award, debt repayment, and limitations on substantial NOL carryforwards - In August 2024, the company received a strategic award to develop a manufacturing plan for aerospace and defense, potentially worth **$14.6 million** over 2.5 years. In 2024, **$6.1 million** was recognized as other income from this award[321](index=321&type=chunk)[323](index=323&type=chunk) - The company's credit facility was paid in full in March 2023, and there was no outstanding debt as of December 31, 2024[339](index=339&type=chunk) - As of Dec 31, 2024, the company has federal NOL carryforwards of **$89.2 million** and state NOLs of **$48.3 million**. Utilization is limited by IRC Section 382 due to a 2016 ownership change[365](index=365&type=chunk)[366](index=366&type=chunk) - The company has a joint development agreement (JDA) with GLOBALFOUNDRIES for STT-MRAM technology, which grants GF exclusive manufacturing rights for a defined period[357](index=357&type=chunk)[358](index=358&type=chunk) Revenue by Geography (in thousands) | Region | 2024 | 2023 | | :--- | :--- | :--- | | Hong Kong | $16,220 | $10,748 | | United States | $9,968 | $14,599 | | Germany | $7,168 | $9,767 | | Japan | $5,974 | $12,216 | | All other | $11,072 | $16,435 | [Changes in and Disagreements With Accountants on Accounting and Financial Disclosure](index=105&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20With%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants on accounting and financial disclosure - None[372](index=372&type=chunk) [Controls and Procedures](index=105&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that disclosure controls and internal control over financial reporting were effective as of December 31, 2024, with no material changes reported - The CEO and CFO concluded that disclosure controls and procedures were effective as of December 31, 2024[375](index=375&type=chunk) - Management concluded that internal control over financial reporting was effective as of December 31, 2024, based on the COSO framework[377](index=377&type=chunk) [Other Information](index=107&type=section&id=Item%209B.%20Other%20Information) This section discloses an amended employment agreement for the CFO and a Rule 10b5-1 trading plan adopted by the CEO - On February 26, 2025, the company entered into an amended Executive Employment Agreement with CFO William Cooper, specifying severance benefits upon termination without cause or resignation for good reason[380](index=380&type=chunk) - CEO Sanjeev Aggarwal adopted a Rule 10b5-1 trading plan on December 6, 2024, for the potential sale of up to **100,000 shares** of common stock[385](index=385&type=chunk) [Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](index=109&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspections) This item is not applicable to the company - Not applicable[386](index=386&type=chunk) PART III Part III incorporates information on directors, executive compensation, security ownership, and related party transactions by reference from the 2025 Proxy Statement [Directors, Executive Officers and Corporate Governance](index=110&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information required by this item is incorporated by reference from the company's 2025 Proxy Statement - Information regarding directors, executive officers, and corporate governance will be included in the definitive proxy statement for the 2025 Annual Meeting of Stockholders and is incorporated herein by reference[388](index=388&type=chunk) [Executive Compensation](index=110&type=section&id=Item%2011.%20Executive%20Compensation) Information required by this item is incorporated by reference from the company's 2025 Proxy Statement - Information regarding executive compensation is incorporated by reference from the 2025 Proxy Statement[391](index=391&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=110&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information required by this item is incorporated by reference from the company's 2025 Proxy Statement - Information regarding security ownership is incorporated by reference from the 2025 Proxy Statement[392](index=392&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=110&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information required by this item is incorporated by reference from the company's 2025 Proxy Statement - Information regarding related party transactions and director independence is incorporated by reference from the 2025 Proxy Statement[393](index=393&type=chunk) [Principal Accountant Fees and Services](index=110&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Information required by this item is incorporated by reference from the company's 2025 Proxy Statement - Information regarding principal accountant fees and services is incorporated by reference from the 2025 Proxy Statement[394](index=394&type=chunk) PART IV [Exhibits and Financial Statement Schedules](index=112&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists all financial statements, schedules, and exhibits filed with or incorporated by reference into the Form 10-K report - This section lists all financial statements, schedules, and exhibits filed with the report[396](index=396&type=chunk)[397](index=397&type=chunk)[398](index=398&type=chunk) [Form 10-K Summary](index=125&type=section&id=Item%2016.%20Form%2010-K%20Summary) A Form 10-K summary was not provided in this report - Not provided[417](index=417&type=chunk)

Company Overview - Everspin Technologies, Inc. operates in the Magneto Resistive Random Access Memory (MRAM) sector and was established in 2008 as a spin-off from Freescale Semiconductor [1] Mission and Research Focus - The mission of Grassroots Trading emphasizes providing objective, unbiased, and balanced research, focusing on small- to mid-cap companies while also identifying opportunities in larger companies [1]

Financial Data and Key Metrics Changes - For Q4 2024, the company reported revenue of $13.2 million, exceeding guidance of $12 million to $13 million, with EPS at $0.05, at the high end of guidance [10][35] - Full year 2024 total revenue was $50.4 million, down 21% year-over-year due to lower product shipments [35] - GAAP gross margin for Q4 was 51.3%, up from 49.2% in Q3 but down from 58.1% in Q4 2023 [36] - GAAP net income for Q4 was $1.2 million, or $0.05 per diluted share, compared to $2 million, or $0.09 per diluted share in Q4 2023 [39] Business Line Data and Key Metrics Changes - MRAM product sales in Q4 were $11 million, down from $12.4 million in Q4 2023 but up from $10.4 million in Q3 2024 [35] - Licensing, royalty, patent, and other revenue decreased to $2.2 million in Q4 from $4.3 million in Q4 2023 due to project completions [36] Market Data and Key Metrics Changes - The company is seeing traction in various sectors, including aerospace, industrial automation, and automotive transportation across different geographies [18] - The low Earth orbit (LEO) market is expected to grow at a CAGR of 13%, increasing from approximately $10 billion to $23 billion by 2029, which may benefit Everspin's MRAM products [20] Company Strategy and Development Direction - Everspin aims to replace or scale NOR flash devices with STT-MRAM technology, which offers faster writes and higher endurance [25] - The company is focusing on expanding its product portfolio and technology, with a strong pipeline of design wins despite pressures on customer R&D budgets [14][15] - Everspin is also involved in partnerships to advance AI hardware and develop strategic RadHard FPGA technology [11][12] Management's Comments on Operating Environment and Future Outlook - Management expects 2025 to be weighted more heavily towards the second half due to typical seasonality and inventory consumption in Asia [32] - The company anticipates initial revenue recognition from the Purdue University project in Q1 2025, with a total project value of approximately $10.5 million over four years [67] Other Important Information - The company ended Q4 2024 with cash and cash equivalents of $42.1 million, up from $39.6 million in the prior quarter [40] - Everspin will shift its non-GAAP metrics from adjusted EBITDA to non-GAAP EPS starting in 2025 for better clarity [41] Q&A Session Summary Question: Clarification on Q1 guidance and loss per share - The anticipated loss per share is primarily due to lower other income in Q1 compared to Q4, with a significant decrease expected [49][50] Question: Revenue contributions from the Lattice partnership - The partnership with Lattice is expected to accelerate design wins and qualifications, but no direct revenue will be generated from Lattice [59][60] Question: Visibility on market recovery in Europe and Japan - Management believes that inventory levels are at the bottom and expects improvement in the second half of 2025 [62] Question: Details on the Purdue University project - The project is milestone-based, with an estimated $4 million expected in the first year, and revenue will be recognized based on achieved milestones [68] Question: Risks and opportunities in defense markets - Management has limited visibility but expects ongoing projects to continue without issues, while new projects may take time due to policy decisions [72]

Financial Data and Key Metrics Changes - The company reported fourth quarter revenue of $13.2 million, exceeding guidance of $12 million to $13 million, with EPS of $0.05 at the high end of guidance [10][35] - Full year total revenue was $50.4 million, down 21% year-over-year due to lower product shipments [35] - GAAP gross margin for Q4 was 51.3%, up from 49.2% in Q3 but down from 58.1% in Q4 2023 [36] - GAAP net income for Q4 was $1.2 million, or $0.05 per diluted share, compared to $2 million, or $0.09 per diluted share in Q4 2023 [39] Business Line Data and Key Metrics Changes - MRAM product sales in Q4 were $11 million, down from $12.4 million in Q4 2023 but up from $10.4 million in Q3 2024 [35] - Licensing, royalty, patent, and other revenue decreased to $2.2 million in Q4 compared to $4.3 million in Q4 2023 due to project completions [36] Market Data and Key Metrics Changes - The company noted design wins in various sectors, including aerospace, industrial automation, and automotive transportation across different geographies [18] - The LEO market is expected to grow at a CAGR of 13%, increasing from approximately $10 billion to $23 billion by 2029, with Everspin's MRAM products expected to support this growth [20] Company Strategy and Development Direction - Everspin aims to replace or scale NOR flash devices with STT-MRAM technology, highlighting its advantages such as faster writes and higher endurance [25] - The company is focusing on expanding its product portfolio and technology, with a strong pipeline of design wins and ongoing projects [14][25] Management's Comments on Operating Environment and Future Outlook - Management expects 2025 to be weighted more heavily towards the second half due to typical seasonality and inventory consumption in Asia [32] - The company anticipates initial revenue recognition from the Purdue University project in the first quarter, with a total project value of approximately $10.5 million over four years [67] Other Important Information - The company ended the quarter with cash and cash equivalents of $42.1 million, up from $39.6 million in the prior quarter [40] - Everspin will shift its non-GAAP metrics from adjusted EBITDA to non-GAAP EPS to align with industry standards [41] Q&A Session Summary Question: Clarification on Q1 guidance and loss per share - The anticipated loss per share is primarily due to lower other income in Q1 compared to Q4, with a significant decrease expected [49][51] Question: Revenue contributions from Lattice Semiconductor partnership - The partnership with Lattice is expected to accelerate design wins and qualifications but does not directly generate revenue for Everspin [59][60] Question: Visibility on market recovery in Europe and Japan - Management believes the second half of 2025 should be more promising based on current inventory levels and order behaviors [62] Question: Details on the Purdue University project - The project is milestone-based with a total value of $10.5 million, and revenue will be recognized as milestones are achieved [67]

Revenue Performance - Total revenue for Q4 2024 was $13.2 million, a decrease of 21% from $16.7 million in Q4 2023[4] - Full year 2024 total revenue was $50.4 million, down 21% from $63.8 million in 2023[4] - For Q1 2025, Everspin expects total revenue to be in the range of $12 million to $13 million, with a GAAP net loss per basic share anticipated between $(0.10) and $(0.05)[5] Profitability Metrics - GAAP net income for Q4 2024 was $1.2 million, or $0.05 per diluted share, compared to $2.0 million, or $0.09 per diluted share in Q4 2023[4] - Net income for the year ended December 31, 2024, decreased to $781,000 from $9,052,000 in 2023, representing a decline of approximately 91.4%[20] - Adjusted EBITDA for Q4 2024 was $3.2 million, down from $3.6 million in Q4 2023, a decrease of 11.1%[4] - Adjusted EBITDA for 2024 was $9,185,000, down from $15,309,000 in 2023, indicating a decrease of about 40.1%[21] - Non-GAAP net income per common share, diluted, decreased to $0.34 in 2024 from $0.65 in 2023, a decline of about 47.7%[21] Operating Expenses - Total operating expenses for the full year 2024 were $33.2 million, compared to $31.4 million in 2023, reflecting an increase of 5.7%[4] - The company reported a significant increase in stock-based compensation expense, rising to $6,713,000 in 2024 from $5,005,000 in 2023, an increase of about 34.1%[21] Cash Flow and Liquidity - Cash and cash equivalents increased to $42.1 million as of December 31, 2024, up from $36.9 million in 2023[16] - Cash flows from operating activities for 2024 were $7,099,000, compared to $13,128,000 in 2023, reflecting a decline of approximately 46.0%[20] - The company reported a net increase in cash and cash equivalents of $5,151,000 in 2024, down from $10,151,000 in 2023, a decrease of about 49.1%[20] - Cash and cash equivalents at the end of the period increased to $42,097,000 in 2024 from $36,946,000 in 2023, marking an increase of approximately 14.6%[20] Investment Activities - The company experienced a net cash used in investing activities of $3,060,000 in 2024, compared to $1,385,000 in 2023, indicating an increase of approximately 120.8%[20] - The company recorded a non-cash investing activity of $3,564,000 for internal-use software assets obtained in exchange for software liabilities in 2024[20] Market Position and Growth - Everspin achieved a total of 178 design wins in 2024, indicating growth opportunities in the NOR flash, SRAM, and storage markets[2]

Revenue Performance - Total revenue decreased by $4.4 million, or 26.6%, from $16.5 million during the three months ended September 30, 2023, to $12.1 million during the same period in 2024[86]. - Total revenue decreased by $9.9 million, or 21.0%, from $47.1 million in the nine months ended September 30, 2023, to $37.2 million in the same period of 2024[98]. Product Sales - Product sales accounted for $10.4 million, a decrease of $3.1 million or 22.9% compared to $13.5 million in the prior year[81]. - The company generated 84% of its revenue from products sold to distributors for the three months ended September 30, 2024[83]. Licensing and Other Revenue - Licensing, royalty, patent, and other revenue decreased by $1.3 million, or 43.6%, from $2.9 million to $1.7 million year-over-year[87]. - Cost of licensing, royalty, patent, and other revenue decreased by $0.5 million, or 39.2%, from $1.4 million in the nine months ended September 30, 2023, to $0.8 million in the same period of 2024[101]. Profitability - Gross profit for the three months ended September 30, 2024, was $5.9 million, representing a gross margin of 49%, down from 60% in the same period of 2023[81]. - Gross margin decreased from 60.2% in Q3 2023 to 49.2% in Q3 2024, attributed to a shift in product mix and decreased licensing revenue[90]. - Net income for the three months ended September 30, 2024, was $2.3 million, compared to $2.4 million in the same period of 2023[81]. - The net loss for the nine months ended September 30, 2024, was $0.4 million, compared to a net income of $7.1 million for the same period in 2023[115][116]. Expenses - Operating expenses increased to $8.1 million, or 67% of total revenue, compared to 48% in the prior year[81]. - Research and development expenses increased to $3.4 million, representing 28% of total revenue, up from 16% in the prior year[81]. - Research and development expenses increased by $0.7 million, or 27.3%, from $2.7 million in Q3 2023 to $3.3 million in Q3 2024, driven by new xSPI product development[91]. - General and administrative expenses decreased by $0.6 million, or 14.5%, from $3.9 million in Q3 2023 to $3.3 million in Q3 2024[92]. - Sales and marketing expenses decreased by $0.1 million, or 1.7%, from $4.0 million in the nine months ended September 30, 2023, to $3.9 million in 2024[104]. Cash Flow and Financial Position - As of September 30, 2024, the company had $39.6 million in cash and cash equivalents, an increase from $36.9 million as of December 31, 2023[113]. - Cash provided by operating activities for the nine months ended September 30, 2024, was $3.3 million, a decrease from $11.1 million in the same period of 2023[114][116]. - Cash used in investing activities during the nine months ended September 30, 2024, was $1.3 million for the purchase of manufacturing equipment, compared to $1.1 million in 2023[117][119]. - Cash provided by financing activities for the nine months ended September 30, 2024, was $0.7 million, while cash used in financing activities in 2023 was $1.9 million[120][121]. - Non-cash charges for the nine months ended September 30, 2024, included stock-based compensation of $5.1 million and depreciation and amortization of $1.2 million[115]. - The company has no outstanding debt as of September 30, 2024, after fully paying off its 2019 Credit Facility in March 2023[113]. Future Outlook - Future capital requirements will depend on growth rate, research and development spending, and new product introductions[113]. - The company experienced an increase in contract obligations of $3.0 million during the nine months ended September 30, 2024[115]. - There have been no changes to critical accounting policies that have materially impacted the financial statements[123].

Financial Data and Key Metrics Changes - Everspin reported Q3 2024 revenue of $12.1 million, in line with guidance, and EPS of $0.10, ahead of guidance range [10][28] - Year-over-year revenue decreased from $16.5 million in Q3 2023, with MRAM product sales down to $10.4 million from $13.5 million [28] - GAAP gross margin was 49.2%, down from 60.2% in Q3 2023, attributed to lower product sales and licensing revenue [29] - GAAP net income for Q3 2024 was $2.3 million, compared to $2.4 million in Q3 2023 [32] - Cash and cash equivalents increased to $39.6 million from $36.8 million at the end of the prior quarter [33] Business Line Data and Key Metrics Changes - Product revenue from Toggle and STT-MRAM decreased due to timing of customer demand [28] - Licensing, royalty, patent, and other revenue fell to $1.7 million from $2.9 million in Q3 2023, due to lower royalties and RadHard project revenue [29] - Continued growth in design wins for PERSYST STT-MRAM products, with expectations for revenue ramping in 2025 [15][27] Market Data and Key Metrics Changes - Signs of inventory consumption observed among customers, particularly in Europe, which is expected to drive additional demand [35] - Challenges noted in Japan and Germany affecting revenue profile for Q4 [49] Company Strategy and Development Direction - Everspin is focused on expanding its market opportunities through new contracts and design wins, particularly in the automotive sector [20][24] - The company is engaged in developing energy-efficient AI solutions through collaborations, including a project with Purdue University [22][60] - Strategic agreements with defense contractors to enhance MRAM manufacturing capabilities are in place [30] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the adoption of PERSYST STT-MRAM products, with expectations for additional design wins [15] - The company anticipates flat product revenue for Q4 2024, with a cautious outlook due to mixed signals from the market [35][47] - Management highlighted the importance of ongoing customer discussions that may lead to future design wins [27] Other Important Information - Everspin received a $14.6 million award from a DoD contractor for MRAM manufacturing capabilities, recognized as other income [19][30] - The company is working on multiple RadHard programs that are on track to move to their next phases [17] Q&A Session Summary Question: Details on the onshore MRAM strategic award recognition - Management clarified that the award is recognized as other income due to revenue recognition standards not being met [38] Question: Clarification on gross margin stability - Management explained that lower demand for toggle products is affecting fixed costs absorption, keeping margins flat [39] Question: DoD contract recognition and guidance impact - Management indicated that the DoD contract will be recognized ratably over 2.5 years and is factored into Q4 guidance [41] Question: Dynamics affecting product revenue guidance - Management noted that qualification times for new products and mixed market signals contribute to conservative revenue expectations [45][47] Question: Market challenges in Japan and Europe - Management confirmed ongoing challenges in Japan and economic turmoil in Germany impacting revenue [49] Question: Differences between MRAM product families - Management provided insights into the PERSYST, Unisys, and AgILYST product families, highlighting their specific applications and markets [51][56] Question: Financial contributions from the Purdue program - Management stated that no contract has been signed yet, so financial contributions remain uncertain [60]

Financial Performance - Q3 2024 revenue of $12.1 million, down from $16.5 million in Q3 2023, with MRAM product sales of $10.4 million compared to $13.5 million in the same period last year [3] - GAAP net income of $2.3 million, or $0.10 per diluted share, compared to net income of $2.4 million, or $0.11 per diluted share, in Q3 2023 [4] - Gross margin decreased to 49.2% from 60.2% in Q3 2023 [3] - For Q4 2024, Everspin expects total revenue between $12 million and $13 million, with GAAP net income per diluted share projected to be between $0.00 and $0.05 [5] - Adjusted EBITDA for Q3 2024 was $4.2 million, slightly up from $4.0 million in Q3 2023 [4] - Net loss for the nine months ended September 30, 2024, was $(433) thousand, compared to a net income of $7,084 thousand for the same period in 2023 [17] - Adjusted EBITDA for the nine months ended September 30, 2024, was $5,958 thousand, down from $11,752 thousand in the same period of 2023 [18] - Cash flows from operating activities provided $3,266 thousand for the nine months ended September 30, 2024, compared to $11,086 thousand for the same period in 2023 [17] Assets and Liabilities - Total current assets increased to $64.0 million as of September 30, 2024, compared to $57.9 million at the end of 2023 [13] - Total liabilities remained stable at $13.3 million as of September 30, 2024, compared to $13.4 million at the end of 2023 [14] - Cash and cash equivalents increased to $39.6 million from $36.9 million at the end of 2023 [13] - Cash and cash equivalents at the end of the period were $39,588 thousand, up from $34,934 thousand at the end of the previous period [17] Expenses and Cash Flow - Stock-based compensation expense increased to $5,108 thousand for the nine months ended September 30, 2024, from $3,700 thousand in the same period of 2023 [18] - Depreciation and amortization for the nine months ended September 30, 2024, was $1,197 thousand, compared to $905 thousand for the same period in 2023 [17] - Net cash used in investing activities was $(1,302) thousand for the nine months ended September 30, 2024, compared to $(1,065) thousand for the same period in 2023 [17] - Payments on long-term debt were $0 for the nine months ended September 30, 2024, compared to $(2,790) thousand for the same period in 2023 [17] - Interest paid was $0 for the nine months ended September 30, 2024, compared to $37 thousand for the same period in 2023 [17] - The company reported a net increase in cash and cash equivalents of $2,642 thousand for the nine months ended September 30, 2024, compared to $8,139 thousand for the same period in 2023 [17] Strategic Outlook - New contracts won during the quarter are expected to contribute to revenue from PERSYST xSPI STT-MRAM products starting in 2025 [2] - Everspin's management emphasizes the importance of converting design wins into revenue as part of their growth strategy [5]