Everspin Technologies(US:MRAM)2023-08-03 17:45Revenue and Sales - Total revenue for the three months ended June 30, 2023, increased by $1.0 million, or 7.1%, to $15.7 million compared to $14.7 million in the same period of 2022[78]. - Product sales accounted for $13.4 million, representing 85% of total revenue for Q2 2023, while licensing and other revenue contributed $2.3 million, or 15%[77]. - Total revenue increased by $1.5 million, or 5.3%, from $29.1 million in the six months ended June 30, 2022, to $30.6 million in 2023[94]. - Product sales increased by $1.3 million, or 5.0%, from $25.9 million in the six months ended June 30, 2022, to $27.2 million in 2023[94]. - Licensing revenue increased by $1.1 million, or 57.7%, from $1.5 million in Q2 2022 to $2.3 million in Q2 2023, driven by the RAD-Hard 2 project[80]. Profitability - Gross profit for the three months ended June 30, 2023, was $9.2 million, maintaining a gross margin of 58%[77]. - Net income for the three months ended June 30, 2023, was $3.9 million, a significant increase from $1.7 million in Q2 2022, representing 25% of total revenue[77]. - Adjusted EBITDA for the three months ended June 30, 2023, was $5.4 million, up from $3.3 million in the same period of 2022[73]. - Net income for the six months ended June 30, 2023, was $4.6 million, compared to $3.6 million for the same period in 2022, reflecting an increase of about 27.8%[109][110]. Expenses - Total operating expenses for the three months ended June 30, 2023, rose to $7.6 million, compared to $6.9 million in the same period of 2022[77]. - Research and development expenses for the three months ended June 30, 2023, were $2.7 million, slightly increasing from $2.7 million in Q2 2022[77]. - General and administrative expenses increased by $0.6 million, or 22.6%, from $2.9 million in Q2 2022 to $3.5 million in Q2 2023[87]. - Research and development expenses were $2.7 million for the three months ended June 30, 2023, representing a slight increase of 0.3% from $2.7 million in 2022[86]. Cash Flow and Financial Position - Cash provided by operating activities was $7.5 million for the six months ended June 30, 2023, compared to $3.4 million in 2022[108]. - As of June 30, 2023, the company had $30.8 million in cash and cash equivalents, up from $26.8 million as of December 31, 2022[107]. - Cash provided by operating activities for the six months ended June 30, 2023, was $7.5 million, an increase from $3.4 million in the same period of 2022, representing a growth of approximately 120.6%[109][110]. - Cash used in investing activities during the six months ended June 30, 2023, was $1.0 million, compared to $0.8 million in the same period of 2022, indicating a 25% increase[111][112]. - Cash used in financing activities for the first half of 2023 was $2.5 million, significantly higher than $0.9 million in the same period of 2022, marking an increase of approximately 177.8%[113][114]. Other Financial Metrics - Interest expense decreased by $70,000, or 100%, from $70,000 in Q2 2022 to $0 in Q2 2023 due to the payoff of the credit facility[89]. - Non-cash charges in the first half of 2023 totaled $3.2 million, up from $2.5 million in the prior year, primarily driven by stock-based compensation of $2.4 million[109][110]. - The company experienced a decrease in accounts receivable by $1.6 million in the first half of 2023, attributed to the timing of cash receipts for outstanding balances[109]. - The change in net operating assets and liabilities in the first half of 2023 included a decrease in accounts payable of $0.7 million and accrued liabilities of $0.7 million, primarily due to timing of variable compensation costs[109]. Accounting and Compliance - 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 for estimates[115].