Everspin Technologies(US:MRAM)2025-11-05 23:00Financial Data and Key Metrics Changes - The company reported third-quarter revenue of $14.1 million, representing a 16% year-over-year increase and aligning with guidance [5][9] - Non-GAAP EPS was $0.06 per diluted share, towards the high end of expectations, compared to $0.17 in the same quarter last year [5][11] - GAAP gross margin improved to 51.3%, up from 49.2% year-over-year [9][10] - Cash and cash equivalents increased to $45.3 million, up $0.3 million from the previous quarter [11] Business Line Data and Key Metrics Changes - MRAM product sales reached $12.7 million, a 22% increase year-over-year [9] - Licensing, royalty, patent, and other revenue decreased to $1.4 million from $1.7 million in Q3 2024 due to project completions [9][10] - Revenue from persistent MRAM solutions for Lucid Motors is expected to increase as production ramps up [7] Market Data and Key Metrics Changes - The low-earth orbital (LEO) satellite market is anticipated to grow rapidly, with Everspin's MRAM technology well-suited for these applications [5][6] - Design wins in the LEO satellite market are expected to translate into significant revenue as the market expands [6] Company Strategy and Development Direction - The company is focused on scaling its business and converting design wins into revenue [12] - A strategic collaboration with Quintaris aims to enhance the reliability and safety of RISC-V-based platforms [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining strong gross margins due to yield improvements and factory utilization [15] - The company expects Q4 total revenue in the range of $14 million to $15 million, with non-GAAP net income per diluted share anticipated between $0.08 and $0.13 [12] Other Important Information - The company recognized $1.2 million in other income related to a strategic award for developing a long-term manufacturing plan for aerospace and defense [10][11] - No tariff-related impacts were experienced in Q3, and none are expected in the upcoming quarter [12] Q&A Session Summary Question: Sustainability of non-GAAP gross margin over 52% - Management indicated that the improvement in product gross margin is expected to be sustainable moving forward [15] Question: Sequential decline in licensing, royalty, patent, and other revenue - Management explained that this revenue can be lumpy and is expected to remain around the 10% range going forward [16][17] Question: Future operating expenses (OpEx) expectations - Management confirmed that OpEx is expected to remain consistent in the $7.5 million range [22][23]