Everspin Technologies(US:MRAM)2022-05-12 18:29Revenue 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].