Everspin Technologies(MRAM) - 2021 Q1 - Quarterly Report

Revenue Performance - Total revenue for Q1 2021 was $10.28 million, a 1.7% increase from $10.10 million in Q1 2020[81] - Product sales decreased by $0.57 million, or 5.9%, from $9.64 million in Q1 2020 to $9.07 million in Q1 2021 due to lower production volume[84] - Licensing, royalty, and other revenue increased by $0.74 million, or 156.2%, from $0.47 million in Q1 2020 to $1.21 million in Q1 2021[85] Profitability and Margins - Gross margin improved from 52.9% in Q1 2020 to 58.2% in Q1 2021, attributed to higher licensing revenue and improved manufacturing yields[87] - The net loss for Q1 2021 was $0.46 million, compared to a net loss of $1.73 million in Q1 2020[81] Expenses - Research and development expenses decreased by $0.59 million, or 19.5%, from $3.03 million in Q1 2020 to $2.44 million in Q1 2021, representing 24% of revenue[90] - Operating expenses totaled $6.27 million in Q1 2021, down from $6.93 million in Q1 2020, reflecting a decrease in R&D costs[81] - General and administrative expenses increased by $43,000, or 1.5%, from $2.8 million in Q1 2020 to $2.8 million in Q1 2021[93] - Sales and marketing expenses decreased by $0.1 million, or 10.5%, from $1.1 million in Q1 2020 to $1.0 million in Q1 2021[94] - Interest expense decreased by $20,000, or 11.6%, from $172,000 in Q1 2020 to $152,000 in Q1 2021[95] - Other (expense) income, net changed from income of $48,000 in Q1 2020 to an expense of $15,000 in Q1 2021, a decrease of $63,000 or 131.3%[96] Cash Flow and Financial Position - Cash and cash equivalents increased to $15.5 million as of March 31, 2021, from $14.6 million as of December 31, 2020[98] - Cash provided by operating activities was $1.7 million in Q1 2021, compared to cash used of $2.6 million in Q1 2020[109] - Cash used in investing activities was $0.3 million in Q1 2021, compared to $0.1 million in Q1 2020[111] - Cash used in financing activities was $0.5 million in Q1 2021, compared to cash provided of $2.1 million in Q1 2020[112] - As of March 31, 2021, the accumulated deficit was $157.6 million, compared to $157.2 million as of December 31, 2020[97] Market and Operational Context - Design wins increased from 37 in Q1 2020 to 40 in Q1 2021, indicating continued growth potential for MRAM products[75] - The company continues to face uncertainties due to the COVID-19 pandemic, impacting demand and operational efficiency[76]