Everspin Technologies(US:MRAM)2025-11-05 22:24Revenue and Sales Performance - Total revenue increased by $2.0 million, or 16.3%, from $12.1 million in Q3 2024 to $14.1 million in Q3 2025, driven by a $2.2 million increase in product sales[78] - Product sales accounted for 90% of total revenue in Q3 2025, up from 86% in Q3 2024[76] - Total revenue increased by $3.2 million, or 8.7%, from $37.2 million in the nine months ended September 30, 2024, to $40.4 million in the same period of 2025[93] - Product sales revenue increased by $3.6 million, or 11.6%, from $31.2 million in the nine months ended September 30, 2024, to $34.8 million in the same period of 2025[91] Income and Profitability - Adjusted net income for Q3 2025 was $1.5 million, compared to a loss of $1.8 million in Q3 2024[75] - The net loss for the nine months ended September 30, 2025, was $1.8 million, an increase from a net loss of $0.4 million in the same period of 2024[109][110] Expenses - Research and development expenses increased by $0.2 million, or 5.9%, to $3.6 million in Q3 2025, representing 25% of total revenue[84] - General and administrative expenses rose by $0.3 million, or 9.7%, to $3.7 million in Q3 2025, accounting for 26% of total revenue[85] - Sales and marketing expenses increased by $0.2 million, or 12.0%, from $1.3 million in Q3 2024 to $1.5 million in Q3 2025[86] - Research and development expenses increased by $0.3 million, or 2.5%, from $10.3 million in the nine months ended September 30, 2024, to $10.5 million in the same period of 2025[99] - General and administrative expenses increased by $0.5 million, or 4.9%, from $10.7 million in the nine months ended September 30, 2024, to $11.2 million in the same period of 2025[100] Margins and Cost - Gross margin improved from 49.2% in Q3 2024 to 51.3% in Q3 2025 due to better yields and fabrication facility utilization[82] - Gross margin decreased from 52.0% in the nine months ended September 30, 2024, to 51.3% in the same period of 2025[96] - Cost of product sales increased by $0.9 million, or 15.2%, from $5.8 million in Q3 2024 to $6.6 million in Q3 2025[80] Cash Flow and Financial Position - Cash provided by operating activities was $7.3 million for the nine months ended September 30, 2025, compared to $3.3 million for the same period in 2024[108] - As of September 30, 2025, the company had $45.3 million in cash and cash equivalents, up from $42.1 million as of December 31, 2024[105] - Cash provided by operating activities for the nine months ended September 30, 2025, was $7.3 million, compared to $3.3 million for the same period in 2024, representing a 121.2% increase[109][110] - Cash used in investing activities during the nine months ended September 30, 2025, was $4.7 million, significantly higher than $1.3 million in 2024, primarily due to $3.2 million in manufacturing equipment purchases[111] - Cash provided by financing activities for the nine months ended September 30, 2025, was $0.6 million, slightly lower than $0.7 million in 2024[112][113] Other Income and Revenue Streams - Licensing, royalty, patent, and other revenue decreased by $0.3 million, or 17.0%, from $1.7 million in Q3 2024 to $1.4 million in Q3 2025[79] - Interest income decreased by $31,000, or 6.7%, from $0.5 million in Q3 2024 to $0.4 million in Q3 2025, primarily due to a decrease in interest rates[87] - Other income, net decreased by $2.8 million, or 70.4%, from $3.9 million in Q3 2024 to $1.2 million in Q3 2025, related to a strategic award for manufacturing services[88] Operational Insights - The company maintains a direct selling relationship with key customers and organizes its sales team into three primary regions: North America, EMEA, and APAC[78] - The company is a leading supplier of discrete MRAM components and has over 15 years of MRAM technology and manufacturing leadership[71] Changes in Assets and Liabilities - The change in net operating assets and liabilities for the nine months ended September 30, 2025, included a decrease in accounts receivable of $3.0 million and an increase in inventory of $2.7 million[109] - The increase in deferred revenue for the nine months ended September 30, 2025, was $0.9 million, indicating growth in future revenue recognition[109] - The company reported an increase in accrued liabilities of $0.5 million and contract obligations of $0.5 million during the nine months ended September 30, 2025[109] Accounting Policies - 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[114][115]