Everspin Technologies(US:MRAM)2021-11-12 22:08Financial Performance - Total revenue for Q3 2021 was $14.795 million, a 46.5% increase from $10.120 million in Q3 2020[89] - Gross profit for Q3 2021 was $8.448 million, representing a gross margin of 57%, up from $2.329 million (23% gross margin) in Q3 2020[89] - The company reported a net income of $880,000 in Q3 2021, compared to a net loss of $3.895 million in Q3 2020[82] - Total revenue increased by $4.7 million, or 46.2%, from $10.1 million during the three months ended September 30, 2020 to $14.8 million during the three months ended September 30, 2021[92] - Total revenue for the nine months ended September 30, 2021 increased by $4.9 million, or 15.2%, from $32.1 million to $36.9 million[108] Product Sales - Product sales accounted for $12.037 million (81% of total revenue) in Q3 2021, compared to $9.577 million (95% of total revenue) in Q3 2020[89] - Product sales increased by $2.5 million, or 25.7%, from $9.6 million to $12.0 million due to a higher volume of units produced and sold[92] - Product sales for the nine months ended September 30, 2021 increased by $1.2 million, or 3.8%, from $30.1 million to $31.3 million[108] Revenue Sources - Licensing, royalty, and other revenue increased by $2.2 million, from $0.5 million during the three months ended September 30, 2020 to $2.8 million during the three months ended September 30, 2021, driven by the sale of two patents[94] - Licensing, royalty, and other revenue for the nine months ended September 30, 2021 increased by $3.7 million, from $1.9 million to $5.6 million[110] Expenses - Operating expenses for Q3 2021 totaled $7.373 million, an increase from $6.040 million in Q3 2020[89] - Research and development expenses for Q3 2021 were $3.105 million, representing 21% of total revenue[89] - Research and development expenses increased by $0.5 million, or 20.4%, from $2.6 million during the three months ended September 30, 2020 to $3.1 million during the three months ended September 30, 2021[101] - General and administrative expenses increased by $0.5 million, or 17.5%, from $2.5 million during the three months ended September 30, 2020 to $3.0 million during the three months ended September 30, 2021[102] - Research and development expenses rose by $0.5 million, or 6.2%, from $8.4 million in 2020 to $8.9 million in 2021, mainly due to increased costs related to the development of the 28 nm product[118] - General and administrative expenses increased by $0.4 million, or 4.9%, from $7.8 million in 2020 to $8.2 million in 2021, primarily due to profit sharing and professional service fees[119] - Sales and marketing expenses increased by $0.2 million, or 7.6%, from $3.1 million in 2020 to $3.3 million in 2021, attributed to higher variable compensation costs[120] Cost Efficiency - The cost of product sales decreased to $6.043 million in Q3 2021 from $7.763 million in Q3 2020, resulting in improved cost efficiency[89] - Cost of product sales decreased by $4.6 million, or 23.7%, from $19.2 million in 2020 to $14.6 million in 2021 due to improved manufacturing yields and adjustments[111] Cash Flow - Cash provided by operating activities was $2.9 million in 2021, compared to cash used of $3.5 million in 2020, reflecting a significant improvement in cash flow[129][130] - Cash used in investing activities increased from $0.3 million in 2020 to $0.6 million in 2021 for the purchase of manufacturing and computer equipment[132] - Cash used in financing activities was $2.4 million in 2021, consisting of $2.8 million in term loan payments, partially offset by $0.4 million from stock option exercises[133] Other Financial Metrics - Adjusted EBITDA for Q3 2021 was $2.455 million, compared to a loss of $2.005 million in Q3 2020[82] - Interest expense increased by $8,000, or 5.1%, from $157,000 during the three months ended September 30, 2020 to $165,000 during the three months ended September 30, 2021[105] - Interest expense decreased by $40,000, or 8.0%, from $501,000 in 2020 to $461,000 in 2021, partly due to a reduction in outstanding principal on the Term Loan[121] Design Wins - Design wins in the first three quarters of 2021 were 40, 37, and 40, compared to 37, 43, and 52 in the same periods of 2020[82] Impact of COVID-19 - The ongoing COVID-19 pandemic has caused disruptions in supply chains and demand, impacting the company's operations and financial condition[84] Accumulated Deficit - The company had an accumulated deficit of $156.5 million as of September 30, 2021, slightly down from $157.2 million as of December 31, 2020[123]