Everspin Technologies(US:MRAM)2025-08-06 21:31Revenue Growth - Total revenue increased by $2.6 million, or 24.1%, from $10.6 million during the three months ended June 30, 2024, to $13.2 million during the same period in 2025[85] - Product sales rose by $1.2 million, or 12.2%, from $9.9 million in Q2 2024 to $11.1 million in Q2 2025[83] - Licensing, royalty, patent, and other revenue surged by $1.4 million, or 181.7%, from $0.7 million in Q2 2024 to $2.1 million in Q2 2025[86] - Total revenue increased by $1.3 million, or 5.1%, from $25.1 million in the first half of 2024 to $26.3 million in the first half of 2025, driven by a $1.4 million increase in product sales[99] - Product sales revenue rose by $1.4 million, or 6.6%, from $20.7 million in H1 2024 to $22.1 million in H1 2025[100] Cost and Expenses - Total cost of sales increased by $1.0 million, or 18.7%, from $5.4 million in Q2 2024 to $6.4 million in Q2 2025[87] - Research and development expenses increased by $0.1 million, or 3.6%, from $3.5 million in Q2 2024 to $3.6 million in Q2 2025, focusing on the development of new STT-MRAM products[91] - General and administrative expenses rose by $0.4 million, or 11.9%, from $3.3 million in Q2 2024 to $3.6 million in Q2 2025, primarily due to one-time professional services[94] - Sales and marketing expenses increased by $0.2 million, or 13.8%, from $1.3 million in Q2 2024 to $1.5 million in Q2 2025[95] - Research and development expenses increased by $0.1 million, or 0.9%, from $6.9 million in H1 2024 to $6.9 million in H1 2025, focusing on new STT-MRAM products[106] - General and administrative expenses rose by $0.2 million, or 2.6%, from $7.3 million in H1 2024 to $7.5 million in H1 2025, mainly due to one-time professional services[109] Profitability and Loss - The net loss for Q2 2025 was $670,000, compared to a net loss of $2.5 million in Q2 2024, reflecting a significant improvement[81] - Gross margin improved from 49.0% in Q2 2024 to 51.3% in Q2 2025, attributed to a favorable product mix and increased licensing revenue[89] - Gross margin decreased from 53.4% in H1 2024 to 51.3% in H1 2025, attributed to lower FAB loadings and decreased other revenue[104] Cash Flow and Liquidity - Cash provided by operating activities was $6.5 million in H1 2025, compared to $0.4 million in H1 2024, despite a net loss of $1.8 million[116] - As of June 30, 2025, cash and cash equivalents were $45.0 million, up from $42.1 million at the end of 2024, indicating sufficient liquidity for anticipated capital requirements[114] - Cash used in investing activities during the six months ended June 30, 2025, was $3.9 million, primarily due to $2.9 million in purchases of manufacturing equipment and $1.0 million in purchases of intangible assets[118] - Cash provided by financing activities during the six months ended June 30, 2024, was $0.6 million, consisting of proceeds from the exercise of employee stock options and purchase of shares under the employee stock purchase plan[120] - Cash used in investing activities during the six months ended June 30, 2024, was $1.2 million, reflecting purchases of manufacturing equipment[118] - Cash provided by financing activities during the six months ended June 30, 2025, was $0.3 million, primarily from proceeds of employee stock options and employee stock purchase plan[119] Other Income - Other income increased by $0.9 million, or 2906.7%, from a $30,000 expense in Q2 2024 to $842,000 in Q2 2025, primarily due to a strategic award for aerospace and defense manufacturing services[96] - Other income (expense), net increased by $1.3 million, or 1,832.4%, from a $71,000 expense in H1 2024 to $1.2 million in H1 2025, primarily from a strategic award for manufacturing services[112] Accounting Policies - The company has not made any changes to critical accounting policies and estimates that have materially impacted the condensed financial statements[123] - The preparation of condensed financial statements requires estimates and assumptions that affect reported amounts of assets and liabilities[121] - Actual results may differ from estimates under different assumptions or conditions[122] - The company is classified as a smaller reporting company, thus not required to disclose quantitative and qualitative disclosures about market risk[124] Operational Efficiency - Operating expenses as a percentage of revenue decreased from 76% in Q2 2024 to 66% in Q2 2025, indicating improved operational efficiency[90] - The company continues to focus on strategic partnerships and product development, including RAD-Hard products and AI technology applications, to drive future growth[86]