Financial Data and Key Metrics Changes - The company reported revenue of $14.4 million for Q1 2024, slightly down from $14.8 million in Q1 2023, but near the high end of the guidance range of $13.5 million to $14.5 million [7][48] - Adjusted EBITDA was $1.9 million compared to $2.3 million in Q1 2023 [8] - GAAP gross margin was 56.5%, relatively flat compared to 56.8% in Q1 2023 [75] - Operating expenses increased to $8.8 million from $7.7 million in Q1 2023, resulting in a net loss of $0.2 million or $0.01 per diluted share, compared to a net income of $0.8 million or $0.04 per diluted share in Q1 2023 [75] Business Line Data and Key Metrics Changes - MRAM product sales, including both Toggle and STT-MRAM revenue, were $10.9 million, down from $13.8 million in Q1 2023 [51] - Licensing, royalty, patent, and other revenue increased to $3.6 million from $1.1 million in Q1 2023 [51] Market Data and Key Metrics Changes - The company noted continued economic weakness in the Asia Pacific region, impacting customer demand and project schedules [6][72] - The STT data center product bookings in 2024 are expected to exceed those of 2023, indicating a positive trend in this segment [15] Company Strategy and Development Direction - The company expects a ramp in Toggle and STT-MRAM design wins in the second half of 2024, with revenue recognition anticipated from these design wins [5][30] - The company is pursuing funding under the CHIPS and Science Act to enhance its manufacturing capabilities for Toggle and STT-MRAM products [73] - The company is focused on growing its Toggle, MRAM, and DRAM products while recognizing revenue from STT-MRAM technology [76] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for the second half of 2024, expecting to recognize revenue from design wins despite a slower start to the year due to macroeconomic challenges [6][30] - The company is encouraged by recent traction and leads generated from industry events, indicating potential growth opportunities [50] Other Important Information - The company ended the quarter with cash and cash equivalents of $34.8 million, down from $36.9 million in the previous quarter, attributed to investments in new products and facilities [8] - The company is currently engaged in two radiation hard programs using STT-MRAM technology, with expectations for continued revenue recognition from these projects [49] Q&A Session Summary Question: What gives confidence on the second half ramp? - Management noted that bookings for STT data center products are expected to exceed 2023 levels, contributing to confidence in the second half ramp [15] Question: What drove the miss in Q2 guidance? - The decline in guidance was attributed to lower RAD-Hard revenue not being incorporated into Q2, as no new RAD-Hard projects have been signed yet [35] Question: Can you elaborate on the Toggle MRAM reliability project? - Management confirmed that they expect to continue the project in Q2, pending funding from the US government agency [60] Question: What is the visibility on product gross margins? - Management indicated that product gross margins have been healthy, with expectations for improvement as new products ramp up [90] Question: Are lead times back to pre-pandemic levels? - Lead times have returned to pre-pandemic levels, approximately 26 to 27 weeks [108]

Financial Performance - Q1 2024 revenue was $14.4 million, close to the high end of guidance, compared to $14.8 million in Q1 2023[6] - MRAM product sales totaled $10.9 million, down from $13.8 million in the same quarter last year[6] - Licensing, royalty, patent, and other revenue increased to $3.6 million from $1.1 million in Q1 2023[6] - Gross margin for Q1 2024 was 56.5%, slightly down from 56.8% in Q1 2023[6] - GAAP net loss was $0.2 million, or $(0.01) per diluted share, compared to net income of $0.8 million, or $0.04 per diluted share, in Q1 2023[6] - The company reported an Adjusted EBITDA of $1.9 million, down from $2.3 million in Q1 2023[6] Future Outlook - For Q2 2024, Everspin expects total revenue between $10.0 million and $11.0 million, with a GAAP net loss per share between $(0.14) and $(0.09)[4] - Everspin has secured design wins with IBM for its PERSYST STT-MRAM solution, expected to ramp in the second half of 2024[2] Assets and Liabilities - Total current assets decreased to $56.4 million as of March 31, 2024, from $57.9 million at the end of 2023[16] - Total liabilities decreased to $10.4 million as of March 31, 2024, from $13.4 million at the end of 2023[16]

Financial Performance - Total revenue increased by $3.8 million, or 6.3%, from $59.985 million in 2022 to $63.765 million in 2023, primarily driven by a $5.7 million increase in licensing, royalty, patent, and other revenue [200]. - Adjusted EBITDA for 2023 was $15.309 million, up from $11.807 million in 2022, reflecting a significant increase in operational performance [192]. - The company had a net income of $9.1 million for the year ended December 31, 2023, compared to $6.1 million in 2022 [217]. - Net income for 2023 was $9.052 million, a 47.5% increase from $6.129 million in 2022 [265]. - Basic earnings per share (EPS) increased to $0.44 in 2023 from $0.30 in 2022, reflecting a growth of about 46.7% [383]. - Diluted EPS rose to $0.42 in 2023 compared to $0.29 in 2022, marking an increase of approximately 45.5% [384]. Revenue Breakdown - Product sales decreased by $1.909 million, or 3.5%, from $55.032 million in 2022 to $53.123 million in 2023, attributed to volume shifts in customer demand [200]. - Licensing, royalty, patent, and other revenue increased significantly to $10.642 million in 2023, up 114.5% from $4.953 million in 2022 [265]. - Revenue from licenses is recognized upon transfer of rights, with no future performance obligations required for non-refundable upfront payments [242]. - Revenue recognized over time increased significantly to $9,582,000 in 2023 from $3,310,000 in 2022, indicating a shift in revenue recognition methods [337]. - Revenue from distributors decreased to $49,845,000 in 2023 from $50,943,000 in 2022, while non-distributor revenue increased to $13,920,000 from $9,042,000 [337]. Expenses and Costs - Research and development expenses rose by $0.668 million, or 6.0%, from $11.108 million in 2022 to $11.776 million in 2023, primarily due to the development of new products [208]. - General and administrative expenses increased by $2.555 million, or 21.8%, from $11.741 million in 2022 to $14.296 million in 2023, driven by higher professional service costs and share-based compensation [209]. - Total cost of sales increased by $0.480 million, or 1.8%, from $26.040 million in 2022 to $26.520 million in 2023, with a notable increase in costs associated with licensing and royalty revenue [203]. - Operating expenses for 2023 were $31.360 million, up from $27.718 million in 2022, indicating an increase of 13.5% [265]. Cash Flow and Liquidity - Cash and cash equivalents as of December 31, 2023, were $36.9 million, up from $26.8 million in 2022, with no outstanding debt after paying off the 2019 Credit Facility in March 2023 [214]. - Cash provided by operating activities for 2023 was $13.1 million, consisting of net income of $9.1 million and non-cash charges of $6.4 million [217]. - Cash used in investing activities decreased from $2.6 million in 2022 to $1.4 million in 2023, primarily for capital expenditures on manufacturing equipment [220]. - Cash used in financing activities was $1.6 million in 2023, mainly due to $2.8 million in payments to pay off the 2019 Credit Facility, offset by $1.2 million from stock option exercises [222]. - The company anticipates sufficient cash and cash equivalents to meet capital requirements for the next 12 months, influenced by growth rate and R&D spending [214]. Assets and Liabilities - Total assets grew to $67.303 million in 2023, compared to $55.333 million in 2022, marking an increase of 21.7% [263]. - Total stockholders' equity increased to $53.921 million in 2023 from $38.664 million in 2022, representing a growth of 39.4% [263]. - Inventory balance as of December 31, 2023, was $8.391 million, an increase from $6.683 million in 2022, reflecting a rise of 25.5% [263]. - Total accrued liabilities increased to $4,336,000 in 2023 from $3,533,000 in 2022, primarily due to higher payroll-related expenses [341]. - The total lease liabilities as of December 31, 2023, were $5,580,000, with future non-cancellable lease payments totaling $6,139,000 [347]. Tax and Regulatory Matters - The Company has federal net operating loss carryforwards of approximately $96.2 million, with $55.8 million expiring between 2028 and 2037 if not utilized [377]. - The net valuation allowance against deferred tax assets decreased by $2.6 million in 2023, reflecting management's assessment of the recoverability of these assets [376]. - The total unrecognized tax benefits at the end of 2023 amounted to $473,000, up from $105,000 at the end of 2022, indicating a significant increase of 350% [381]. - The company accrued penalties and interest of $155,000 as of December 31, 2023, consistent with the amount accrued in 2022 [382]. Customer and Market Insights - The company generated 78% of its revenue from products sold through distributors in 2023, down from 85% in 2022, indicating a shift in sales strategy [200]. - The company’s significant customers included Customer A, which represented 18% of total revenue in 2023, and Customer E, which accounted for 17% [284]. - The Company has a joint development agreement with GLOBALFOUNDRIES for the development of STT-MRAM technology, which has been extended to include support for 12nm MRAM development [371].

Financial Data and Key Metrics Changes - The company reported record annual revenue of $63.8 million for 2023, a 6% increase year-over-year [10][34] - Fourth quarter revenue was $16.7 million, exceeding guidance of $15.4 million to $16.4 million [10][34] - Gross margin for Q4 2023 was 58.1%, up from 51.4% in Q4 2022, while the full year gross margin was 58.4%, an increase from 56.6% in 2022 [10][36] - Net income for 2023 was $9.1 million, with Q4 net income at $2 million or $0.09 per diluted share, compared to $0.6 million or $0.03 per diluted share in Q4 2022 [34][38] - The company ended the year with a cash balance of $36.9 million, the highest in its history [10][39] Business Line Data and Key Metrics Changes - MRAM product sales in Q4 2023 were $12.4 million, down from $14.6 million in Q4 2022 [35] - Licensing royalties and other revenue increased to $4.3 million in Q4 2023, compared to $1.1 million in Q4 2022 [35] Market Data and Key Metrics Changes - The company noted weakness in the industrial and automotive sectors, particularly in APAC regions like Japan and China [15][21] - The first half of 2024 is expected to be muted due to economic challenges in China and inventory digestion among customers [15][40] Company Strategy and Development Direction - The company aims to maintain its leadership in MRAM technology, focusing on design wins and new product qualifications [12][42] - A key focus is on distributed MRAM (DMRAM), which is expected to enhance energy efficiency and scaling [14] - The company is optimistic about the second half of 2024, anticipating revenue growth from design wins in STT and Toggle MRAM products [25][41] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate macroeconomic uncertainties while maintaining profitability [38][42] - The company expects to recognize revenue from design wins in the second half of 2024, despite a slower start to the year [33][41] Other Important Information - The company achieved positive cash flow from operations, totaling $13.1 million for the full year, up from $9.5 million in 2022 [39] - The company has entered into new radiation hard program agreements to develop reliability models and license technology for strategic applications [13] Q&A Session Summary Question: About the gross margin number in the fourth quarter - The management provided insights on the year-over-year change in gross margin and discussed the sequential decline despite strong licensing revenue [45][46] Question: Weakness in industrial automation in China - Management confirmed that challenges in the industrial and automotive sectors persisted, particularly in APAC regions, affecting revenue guidance [20][21][24] Question: Guidance for revenue across segments - The company expects Q1 revenue to be between $13.5 million and $14.5 million, with a strong outlook for licensing but a decline in product revenue due to APAC challenges [23][24]

[Financial Highlights and Overview](index=1&type=section&id=Financial%20Highlights%20and%20Overview) Everspin Technologies achieved strong, record-breaking financial performance in Q4 and full year 2023, marked by increased revenue, profitability, and cash reserves [Q4 2023 and Full Year 2023 Performance Summary](index=1&type=section&id=Q4%202023%20and%20Full%20Year%202023%20Performance%20Summary) Everspin Technologies achieved strong, record-breaking financial performance in Q4 and full year 2023, marked by increased revenue, profitability, and cash reserves - The company's Q4 2023 performance exceeded expectations across the board, primarily driven by strong product and RAD Hard revenue[2](index=2&type=chunk) - Full year 2023 achieved **record revenue and profitability**, with improved gross margin through operational excellence[2](index=2&type=chunk) - The company achieved its **11th consecutive profitable quarter**, maintaining a strong financial position with no debt and a **record-high cash balance**[5](index=5&type=chunk) [Q4 2023 Highlights](index=1&type=section&id=Q4%202023%20Highlights) In Q4 2023, the company exceeded guidance for total revenue and diluted EPS, achieved a significant increase in gross margin, and reached a record-high cash balance Key Financial Metrics for Q4 2023 | Metric | Q4 2023 (USD) | Q4 2022 (USD) | Change (YoY) | | :-------------------------------- | :--------------- | :--------------- | :---------- | | Total Revenue | $16.7 million | $15.7 million | +6% | | Diluted EPS (GAAP) | $0.09 | $0.03 | +200% | | Gross Margin | 58.1% | 51.4% | +6.7 pp | | Adjusted EBITDA | $3.6 million | $2.1 million | +71.4% | | Cash and Cash Equivalents (End of Period) | $36.9 million | - | Record High | - MRAM product sales were **$12.4 million**, compared to $14.6 million in Q4 2022[4](index=4&type=chunk) - Licensing, royalties, patent, and other revenue totaled **$4.3 million**, up from $1.1 million in Q4 2022[4](index=4&type=chunk) [Full Year 2023 Highlights](index=1&type=section&id=Full%20Year%202023%20Highlights) For the full year 2023, the company achieved growth in both revenue and profitability, with significant improvements in gross margin and Adjusted EBITDA, alongside 217 design wins Key Financial Metrics for Full Year 2023 | Metric | Full Year 2023 (USD) | Full Year 2022 (USD) | Change (YoY) | | :-------------------------------- | :----------- | :----------- | :---------- | | Total Revenue | $63.8 million | $60.0 million | +6% | | Diluted EPS (GAAP) | $0.42 | $0.29 | +44.8% | | Gross Margin | 58.4% | 56.6% | +1.8 pp | | Adjusted EBITDA | $15.3 million | $11.8 million | +29.7% | - **217 design wins** were achieved for the full year 2023[2](index=2&type=chunk) - MRAM product sales were **$53.1 million**, compared to $55.0 million in 2022[4](index=4&type=chunk) - Licensing, royalties, patent, and other revenue totaled **$10.6 million**, up from $5.0 million in 2022[4](index=4&type=chunk) [Detailed Financial Results](index=1&type=section&id=Detailed%20Financial%20Results) This section provides a comprehensive breakdown of Everspin's financial performance for Q4 and full year 2023, highlighting key revenue and profitability metrics [Fourth Quarter 2023 Results](index=1&type=section&id=Fourth%20Quarter%202023%20Results) In Q4 2023, Everspin achieved year-over-year growth in total revenue, significant improvements in gross margin and net income, and a substantial increase in Adjusted EBITDA Q4 2023 Financial Data | Metric | Q4 2023 (Millions USD) | Q4 2022 (Millions USD) | Change (YoY) | | :-------------------------------- | :-------------------------- | :-------------------------- | :---------- | | Total Revenue | 16.7 | 15.7 | +6% | | MRAM Product Sales | 12.4 | 14.6 | -15.1% | | Licensing, Royalties & Other Revenue | 4.3 | 1.1 | +290.9% | | Gross Margin | 58.1% | 51.4% | +6.7 pp | | GAAP Operating Expenses | 8.1 | 7.5 | +8% | | GAAP Net Income | 2.0 | 0.6 | +233.3% | | Diluted EPS (GAAP) | 0.09 | 0.03 | +200% | | Adjusted EBITDA | 3.6 | 2.1 | +71.4% | - Cash and cash equivalents balance reached a **record $36.9 million** at the end of Q4 2023[4](index=4&type=chunk) [Full Year 2023 Results](index=1&type=section&id=Full%20Year%202023%20Results) For the full year 2023, Everspin demonstrated robust growth in total revenue and net income, alongside notable enhancements in gross margin and Adjusted EBITDA, reflecting improved operational efficiency Full Year 2023 Financial Data | Metric | Full Year 2023 (Millions USD) | Full Year 2022 (Millions USD) | Change (YoY) | | :-------------------------------- | :-------------------- | :-------------------- | :---------- | | Total Revenue | 63.8 | 60.0 | +6% | | MRAM Product Sales | 53.1 | 55.0 | -3.5% | | Licensing, Royalties & Other Revenue | 10.6 | 5.0 | +112% | | Gross Margin | 58.4% | 56.6% | +1.8 pp | | GAAP Operating Expenses | 31.4 | 27.7 | +13.4% | | GAAP Net Income | 9.1 | 6.1 | +49.2% | | Diluted EPS (GAAP) | 0.42 | 0.29 | +44.8% | | Adjusted EBITDA | 15.3 | 11.8 | +29.7% | [Business Outlook](index=2&type=section&id=Business%20Outlook) Everspin provides its financial guidance for Q1 2024 and includes cautionary statements regarding the inherent risks and uncertainties of forward-looking statements [Q1 2024 Guidance](index=2&type=section&id=Q1%202024%20Guidance) Everspin projects Q1 2024 total revenue to range between $13.5 million and $14.5 million, with diluted earnings per share expected to be between break-even and $0.05 Q1 2024 Performance Guidance | Metric | Q1 2024 Guidance | | :--------------------- | :------------------- | | Total Revenue | $13.5 million - $14.5 million | | Diluted EPS (GAAP) | Break-even - $0.05 | - This outlook is based on Everspin's current expectations and may be influenced by external conditions[6](index=6&type=chunk) [Cautionary Statement Regarding Outlook](index=2&type=section&id=Cautionary%20Statement%20Regarding%20Outlook) The company advises investors that forward-looking statements involve risks and uncertainties, with actual results potentially differing materially from expectations due to various external factors - The outlook relies on Everspin's current expectations and may be impacted by external conditions such as COVID-19 and its variants, supply chain disruptions, the military conflict in Ukraine, Middle East instability, market volatility, and a semiconductor industry downturn[6](index=6&type=chunk) - Actual results may differ materially from forward-looking statements due to risk factors described in the company's 10-K and 10-Q reports filed with the SEC[13](index=13&type=chunk) - Everspin undertakes no obligation to update or revise these forward-looking statements in the future, except as required by law[13](index=13&type=chunk) [Non-GAAP Financial Measures](index=2&type=section&id=Non-GAAP%20Financial%20Measures) This section defines Adjusted EBITDA as a non-GAAP financial metric, explaining its calculation and management's use for performance evaluation and planning [Adjusted EBITDA Reconciliation and Definition](index=2&type=section&id=Adjusted%20EBITDA%20Reconciliation%20and%20Definition) Everspin utilizes Adjusted EBITDA as a non-GAAP financial metric to assess operational performance, trends, and for budgeting and planning, derived by adjusting net income for specific non-cash and non-operating items - Adjusted EBITDA is defined as net income adjusted for interest expense, taxes, depreciation and amortization, stock-based compensation expense, and restructuring costs, if any[7](index=7&type=chunk) - Management and the Board of Directors use Adjusted EBITDA to understand and evaluate operating performance and trends, prepare and approve annual budgets, and develop short-term and long-term operating and financing plans[8](index=8&type=chunk) - Adjusted EBITDA is a non-GAAP financial measure, intended to supplement, not substitute, GAAP net income, and its definition may vary across companies, limiting comparability[8](index=8&type=chunk) [Company Information](index=2&type=section&id=Company%20Information) This section provides an overview of Everspin Technologies as a leading MRAM provider and details for the upcoming analyst and investor conference call [About Everspin Technologies](index=2&type=section&id=About%20Everspin%20Technologies) Everspin Technologies is a leading global provider of Magnetoresistive Random Access Memory (MRAM), offering high-performance non-volatile memory solutions for critical applications - Everspin Technologies, Inc. is the **world's leading provider of Magnetoresistive Random Access Memory (MRAM)**[11](index=11&type=chunk) - Everspin MRAM offers the most robust and highest-performance non-volatile memory for industrial IoT, data centers, and other mission-critical applications where data persistence is crucial[11](index=11&type=chunk)[12](index=12&type=chunk) - Headquartered in Chandler, Arizona, the company provides commercial MRAM solutions to a broad and diverse customer base[12](index=12&type=chunk) [Conference Call and Investor Relations](index=2&type=section&id=Conference%20Call%20and%20Investor%20Relations) Everspin will host an analyst and investor conference call on February 28, 2024, providing details for dial-in, webcast access, and investor relations contacts - Everspin will host an analyst and investor conference call on **February 28, 2024, at 5:00 PM ET**[9](index=9&type=chunk) - A live webcast of the conference call will be accessible on the company's website at investor.everspin.com, with an archived replay available approximately two hours after the live broadcast for twelve months[10](index=10&type=chunk) - Investor Relations contact: Monica Gould, The Blueshirt Group, Phone: 212-871-3927, Email: ir@everspin.com[14](index=14&type=chunk) [Unaudited Financial Statements](index=4&type=section&id=Unaudited%20Financial%20Statements) This section presents Everspin's unaudited balance sheets, income statements, cash flow statements, and Adjusted EBITDA reconciliation for the specified periods [Balance Sheets](index=4&type=section&id=Balance%20Sheets) As of December 31, 2023, Everspin's balance sheet shows significant growth in cash and cash equivalents, an increase in total assets and stockholders' equity, and a decrease in total liabilities Key Balance Sheet Data (As of December 31, in thousands USD) | Metric | 2023 | 2022 | Change (YoY) | | :----------------------- | :------- | :------- | :---------- | | Cash and Cash Equivalents | 36,946 | 26,795 | +37.9% | | Total Current Assets | 57,879 | 44,747 | +29.3% | | Total Assets | 67,303 | 55,333 | +21.6% | | Total Current Liabilities | 8,778 | 10,875 | -19.3% | | Total Liabilities | 13,382 | 16,669 | -19.7% | | Total Stockholders' Equity | 53,921 | 38,664 | +39.4% | [Statements of Income and Comprehensive Income](index=5&type=section&id=Statements%20of%20Income%20and%20Comprehensive%20Income) In 2023, Everspin experienced growth in total revenue, gross profit, and net income, with a notable increase in diluted earnings per share, reflecting enhanced profitability Key Statements of Income and Comprehensive Income Data (As of December 31, in thousands USD) | Metric | 2023 | 2022 | Change (YoY) | | :-------------------------------- | :------- | :------- | :---------- | | Product Sales | 53,123 | 55,032 | -3.5% | | Licensing, Royalties & Other Revenue | 10,642 | 4,953 | +114.9% | | Total Revenue | 63,765 | 59,985 | +6.3% | | Cost of Sales | 26,520 | 26,040 | +1.8% | | Gross Profit | 37,245 | 33,945 | +9.7% | | Operating Expenses | 31,360 | 27,718 | +13.1% | | Operating Income | 5,885 | 6,227 | -5.5% | | Net Income | 9,052 | 6,129 | +47.7% | | Diluted EPS | 0.42 | 0.29 | +44.8% | - Stock-based compensation expense totaled **$5,005 thousand** in 2023, up from $4,408 thousand in 2022[18](index=18&type=chunk) [Statements of Cash Flows](index=6&type=section&id=Statements%20of%20Cash%20Flows) In 2023, Everspin saw a significant increase in cash flow from operating activities, reduced cash outflow from investing activities, and a substantial rise in net cash and cash equivalents Key Statements of Cash Flows Data (As of December 31, in thousands USD) | Metric | 2023 | 2022 | Change (YoY) | | :--------------------------- | :------- | :------- | :---------- | | Net Cash from Operating Activities | 13,128 | 9,493 | +38.3% | | Net Cash Used in Investing Activities | (1,385) | (2,586) | -46.4% | | Net Cash Used in Financing Activities | (1,592) | (1,521) | +4.7% | | Net Increase in Cash & Equivalents | 10,151 | 5,386 | +88.5% | | Cash and Cash Equivalents, End of Period | 36,946 | 26,795 | +37.9% | - Purchases of property and equipment were **$1,404 thousand** in 2023, down from $2,788 thousand in 2022[20](index=20&type=chunk) - Repayments of long-term debt were **$2,790 thousand** in 2023, up from $2,400 thousand in 2022[20](index=20&type=chunk) [Reconciliation of Adjusted EBITDA](index=7&type=section&id=Reconciliation%20of%20Adjusted%20EBITDA) In 2023, Everspin's Adjusted EBITDA, reconciled from GAAP net income, showed significant growth, reflecting the core profitability of the company's operations Reconciliation of Adjusted EBITDA (As of December 31, in thousands USD) | Metric | 2023 | 2022 | Change (YoY) | | :----------------------- | :------- | :------- | :---------- | | Net Income | 9,052 | 6,129 | +47.7% | | Depreciation and Amortization | 1,205 | 982 | +22.7% | | Stock-based Compensation Expense | 5,005 | 4,408 | +13.5% | | Interest Expense | 63 | 274 | -77.0% | | Income Tax (Benefit) Expense | (16) | 14 | -214.3% | | Adjusted EBITDA | 15,309 | 11,807 | +29.7% |

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-37900 Everspin Technologies, Inc. (Exact name of Registrant as specified in its Charter) Delaware 26-26406 ...

Everspin Technologies, Inc. (NASDAQ:MRAM) Q3 2023 Earnings Conference Call November 1, 2023 5:00 PM ET Company Participants Sanjeev Aggarwal - President & Chief Executive Officer Anuj Aggarwal - Chief Financial Officer Conference Call Participants Shadi Mitwalli - Craig-Hallum Nick Doyle - Needham Orin Hirschman - AIG Operator Good afternoon, and welcome to the conference call to discuss Everspin Technologies Third Quarter 2023 Financial Results. At this time, all participants are in a listen-only mode. At ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-37900 Everspin Technologies, Inc. (Exact name of Registrant as specified in its Charter) Delaware 26-2640654 (S ...

Financial Data and Key Metrics Changes - Everspin reported quarterly revenue of $15.7 million, a 7% increase year-over-year, exceeding the high end of guidance [11][20] - GAAP net income was $3.9 million, or $0.19 per basic share, compared to $0.8 million in Q1 2023 and $1.7 million in Q2 2022 [24] - Cash flow from operations was $6.3 million for the quarter, contributing to a year-to-date total of $7.5 million [12][26] - GAAP gross margin for Q2 2023 was 58.4%, consistent with Q2 2022 and an increase from 56.8% in Q1 2023 [23] Business Line Data and Key Metrics Changes - MRAM product sales, including Toggle and STT-MRAM revenue, totaled $13.4 million, a slight decrease from $13.8 million in the prior quarter but an increase from $13.2 million in Q2 2022 [21] - Licensing, royalties, patents, and other revenue increased to $2.3 million from $1.1 million in Q1 2023 and $1.5 million in Q2 2022 [21] Market Data and Key Metrics Changes - Shipments to suppliers for data center applications represented 7% of revenue in the quarter, down from 11% in Q1 and 15% in Q2 2022 [22] - The company continues to experience headwinds from the semiconductor downturn, impacting the data center market [14][35] Company Strategy and Development Direction - Everspin is focusing on the xSPI family of STT-MRAM products, with densities ranging from 4 megabit to 128 megabit, and plans to enhance offerings for harsher environmental conditions [12][29] - The company is also working on a high-density STT-MRAM discrete product for NOR Flash replacement, with a 1 gigabit density product scheduled for 2024 tape-out [16] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for Q3 2023, expecting total revenue between $15.4 million and $16.4 million, driven by strong demand for Toggle products and the xSPI family [27] - The backlog remains healthy, with bookings extending into the second half of 2024, despite some cancellations and pushouts being normal [37] Other Important Information - Everspin operates debt-free while increasing profitability and has a cash and cash equivalents balance of $30.8 million at the end of the quarter [25] - The company received a one-time employee retention tax credit refund of $2 million during the quarter, contributing to its positive cash flow [26] Q&A Session Summary Question: Can you elaborate on the supply chain constraints and unfilled demand? - Management acknowledged ongoing constraints on 180-nanometer products and is working closely with TSMC to fulfill demand [36] - The backlog is healthy, with new orders and increased bookings, despite some cancellations [37] Question: What is the visibility to future sales with the largest customer? - The largest customer now represents 7.3% of total revenue, with expectations that their impact will lessen as other product lines grow [40] - Management noted softness from this customer, consistent with trends in the data center market [41]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-37900 Everspin Technologies, Inc. (Exact name of Registrant as specified in its Charter) Delaware 26-2640654 ( ...