Everspin Technologies, Inc. (NASDAQ:MRAM) Q1 2023 Earnings Conference Call May 3, 2023 5:00 PM ET Company Participants Sanjeev Aggarwal – President and Chief Executive Officer Anuj Aggarwal – Chief Financial Officer Conference Call Participants Richard Shannon – Craig-Hallum Orin Hirschman – AIGH Operator Good afternoon and welcome to the conference call to discuss Everspin Technologies' First Quarter 2023 Financial Results. At this time, all participants are in a listen-only mode. At the conclusion of toda ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 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) (State or other jurisdicti ...

Financial Data and Key Metrics Changes - Everspin reported quarterly revenue of $15.7 million, exceeding guidance and leading to a record full-year revenue of $60 million for 2022, which is a 9% increase year-over-year [8][11] - GAAP net income was $6.1 million for the full year, marking the seventh consecutive quarter of positive net income [8][22] - Cash flow from operations was $5.2 million in Q4, totaling $9.5 million for the full year [11][28] - GAAP gross margin for the year was 56.6%, with Q4 gross margin at 51.4%, down from 58.8% in the prior quarter [11][26] Business Line Data and Key Metrics Changes - Product sales in Q4 were $14.6 million, consistent with the prior quarter and up from $12.6 million in Q4 2021 [11][24] - Licensing and royalties revenue in Q4 was $1.1 million, an increase from $0.7 million in the previous quarter but down from $5.6 million in Q4 2021 [24] - The product backlog remains high, although there are headwinds from the semiconductor downturn [12] Market Data and Key Metrics Changes - Shipments to the largest end customer represented 5% of revenue in Q4, down from 19% in Q3 and 16% in Q4 2021 [25] - The company has diversified its customer base, increasing from 1,200 to 1,300 customers in 2022 [93] Company Strategy and Development Direction - Everspin is focused on its leadership in STT-MRAM technology, targeting multiple non-volatile memory markets [13] - The company introduced the xSPI family of STT-MRAM products, which are designed to replace legacy memory components and simplify system architecture [15] - Everspin is also developing strategic radiation-hardened FPGA technology, which will utilize STT-MRAM as configuration memory [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in future opportunities despite macroeconomic challenges, with solid demand expected to extend into 2024 [33][35] - The company anticipates total revenue in Q1 2023 to be between $14.1 million and $14.8 million, influenced by expenses related to next-generation product development [35] - Management noted that while there have been some cancellations and pushouts due to macroeconomic effects, the backlog remains strong [38][39] Other Important Information - Everspin achieved record annual product revenue and cash flow from operations in 2022 [9][11] - The company is experiencing increased operating expenses due to costs associated with new STT-MRAM products [26] Q&A Session Summary Question: Inventory dynamics in the semiconductor space - Management noted that while there have been some cancellations and pushouts, the backlog remains healthy with solid demand extending into 2024 [33][38] Question: Gross margin drop in Q4 - Management explained that the drop in gross margin was due to higher supplier costs and a more normalized product mix, aligning with internal models [43][45] Question: xSPI product ramp and revenue contribution - Management indicated strong traction with customers for the xSPI family, with initial revenue expected by the end of the year [46][60] Question: Elevated operating expenses - Management expects operating expenses to remain elevated in Q1 but to level off and slightly decrease as the year progresses [87] Question: Customer concentration and growth visibility - Management confirmed a reduction in customer concentration and increased visibility into future growth due to a diversified customer base and strong backlog [76][79]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) (Exact name of Registrant as specified in its Charter) Delaware 26-2640654 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 5670 W. Chandler Boulevard, Suite 130 Chandler, Arizona 85226 (Address of principal executive offices including zip code) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarte ...

Everspin Technologies, Inc. (NASDAQ:MRAM) Q3 2022 Earnings Conference Call November 9, 2022 5:00 PM ET Company Participants Sanjeev Aggarwal - Chief Executive Officer Anuj Aggarwal - Chief Financial Officer Conference Call Participants Nicholas Doyle - Needham Operator Good afternoon, and welcome to the conference call to discuss Everspin Technologies' Third Quarter 2022 Financial Results. At this time, all participants are in a listen-only mode. At the conclusion of today???s conference call, instructions ...

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, 2022 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 $14.7 million, a 24% increase compared to Q2 2021, exceeding the high end of guidance [6][7] - GAAP net income was $1.7 million, marking the fifth consecutive quarter of positive net income [6][13] - Cash flow from operations improved to $4.3 million, up from negative $0.6 million year-on-year [7][17] - GAAP gross margin was 58.4%, slightly down from 60.7% in Q2 2021 but up from 58% in the previous quarter [15] Business Line Data and Key Metrics Changes - MRAM product sales, including both Toggle and STT-MRAM, totaled $13.2 million, up from $10.2 million in Q2 2021 [13] - Licensing, royalties, and other revenue was $1.5 million, down from $1.7 million in the previous quarter and Q2 2021 [14] Market Data and Key Metrics Changes - Shipments to the largest end customer represented 15% of revenue, down from 19% in Q1 and 35% in Q2 2021 [14] - The product backlog as of June 30, 2022, was at an all-time high, with customer requests extending into the first half of 2024 [8][36] Company Strategy and Development Direction - Everspin continues to invest in STT-MRAM technology and aims to grow its business in both the near and long term [10] - The company is focused on alleviating supply chain constraints while meeting strong customer demand [9][20] Management's Comments on Operating Environment and Future Outlook - Management acknowledged strong customer demand and revenue growth in 2022, tempered by macroeconomic challenges and supply chain issues [20] - The company expects total revenue for Q3 2022 to be between $14.4 million and $15.4 million, with GAAP net income per share projected to be between breakeven and $0.05 [18] Other Important Information - Everspin announced the availability of a new STT-MRAM product, EM128LX, which expands its product portfolio [8] - The company is working with foundry partners to increase wafer supply and assembly capacity [9] Q&A Session Summary Question: Sustainability of Gross Margins - Management confirmed that the gross margin of 58.4% was above internal expectations, driven by operational excellence and improved product mix, but long-term expectations are around the mid-50s [26] Question: Product Revenue Records - Management verified that both Toggle and STT-MRAM revenues reached record levels in Q2 [27] Question: New STT Product and Revenue Ramp - Management indicated that the new low-density STT-MRAM product is expected to ramp faster than FPGA applications, with potential revenue from FPGA markets anticipated closer to 2024 [30][33] Question: Backlog and Lead Times - Management reported that customer requests are extending into the first half of 2024, with lead times increasing due to growing backlog [36] Question: Competition in the Market - Management noted that while there are new competitors in the STT-MRAM space, they have not seen significant competition affecting their customer relationships [38] Question: Shipment Pushouts - Management quantified that about 10% to 15% of unfulfilled demand is being pushed out into the next quarter [41]

| --- | --- | --- | --- | |-------|-------|-------|--------------------------------------------------------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Investor Presentation | | | | | July 2022 | | | | | | | | | | | | | | | © 2022 Everspin Technologies. All rights reserved. 1 | Safe Harbor Statement Forward-Looking Statements This presentation and the accompanying oral presentation contain "forward-looking statements" that involve risks, uncertainties and assumptions. If t ...

Revenue Growth - Total revenue increased by $4.1 million, or 39.6%, from $10.3 million in Q1 2021 to $14.3 million in Q1 2022, driven by a 39.7% increase in product sales [90]. - Product sales reached $12.7 million in Q1 2022, up from $9.1 million in Q1 2021, attributed to higher production volumes and average sales price increases [90]. - Licensing, royalty, patent, and other revenue rose by $0.5 million, or 38.3%, from $1.2 million in Q1 2021 to $1.7 million in Q1 2022, driven by a new contractual agreement [91]. - Licensing, royalty, patent, and other revenue increased by $233,000 from $39,000 in Q1 2021 to $272,000 in Q1 2022, primarily due to increased foundry and licensing activities [93]. Profitability - Gross profit for Q1 2022 was $8.3 million, representing a gross margin of 58.0%, slightly down from 58.2% in Q1 2021 [87]. - Adjusted EBITDA for Q1 2022 was $3.1 million, compared to $818,000 in Q1 2021, indicating improved operational performance [79]. - Net income for Q1 2022 was $1.9 million, a significant turnaround from a net loss of $460,000 in Q1 2021 [87]. - Gross margin decreased slightly from 58.2% in Q1 2021 to 58.0% in Q1 2022, attributed to price increases from suppliers [93]. Expenses - Cost of product sales increased by $1.5 million, or 35.2%, from $4.3 million in Q1 2021 to $5.8 million in Q1 2022, due to increased sales and supplier price hikes [92]. - Research and development expenses were $2.4 million in Q1 2022, slightly down from $2.4 million in Q1 2021, reflecting a focus on operational efficiency [87]. - Research and development expenses remained consistent at $2.4 million in Q1 2022 compared to $2.4 million in Q1 2021, representing 17% of revenue in 2022 versus 24% in 2021 [97]. - General and administrative expenses decreased by $114,000, or 4.0%, from $2.8 million in Q1 2021 to $2.7 million in Q1 2022, primarily due to reduced employee-related costs [98]. - Sales and marketing expenses increased by $147,000, or 14.9%, from $987,000 in Q1 2021 to $1.1 million in Q1 2022, mainly due to higher variable compensation [99]. - Interest expense decreased by $77,000, or 50.7%, from $152,000 in Q1 2021 to $75,000 in Q1 2022, due to lower outstanding balances under the credit facility [100]. Cash Flow and Financial Position - The accumulated deficit as of March 31, 2022, was $150.9 million, a slight decrease from $152.8 million as of December 31, 2021 [103]. - Cash and cash equivalents as of March 31, 2022, were $19.9 million, down from $21.4 million as of December 31, 2021 [103]. - Cash used in operating activities was $971,000 in Q1 2022, compared to cash provided of $1.7 million in Q1 2021 [106]. - Cash used in investing activities was $22,000 in Q1 2022 for manufacturing equipment, down from $309,000 in Q1 2021 [111]. Market Conditions - The company continues to face uncertainties due to the COVID-19 pandemic, impacting supply chains and demand patterns [81].

Everspin Technologies, Inc. (NASDAQ:MRAM) Q1 2022 Earnings Conference Call May 11, 2022 5:00 PM ET Company Participants Sanjeev Aggarwal ??? Chief Executive Officer Anuj Aggarwal ??? Chief Financial Officer Conference Call Participants Rajvindra S. Gill ??? Needham & Company Richard Shannon ??? Craig-Hallum Operator Good afternoon, and welcome to the conference call to discuss Everspin Technologies First Quarter 2022 Financial Results. At this time, all participants are in a listen-only mode. At the conclus ...