Everspin Technologies(US:MRAM)2024-11-05 22:13Revenue 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].