Everspin Reports First Quarter 2021 Financial Results

Third Consecutive Quarter with Positive Cash Flow From Operations

CHANDLER, Ariz.–(BUSINESS WIRE)–Everspin Technologies, Inc. (NASDAQ: MRAM), the market leader in MRAM, today announced financial results for the first fiscal quarter of 2021.

First Quarter 2021 Highlights

  • Q1’21 revenue increased 1.7% year-over-year to $10.3 million
  • Q1’21 GAAP net loss per share of ($0.02) was a significant improvement over both the prior quarter and year-ago periods
  • Generated $1.6 million cash flow from operations in Q1’21, the third consecutive quarter with positive cash flow from operations
  • Ended Q1’21 with cash and equivalents of $15.5 million

“We are happy to report that in Q1’21 we continued our progress towards driving sustainable cash flow from operations. We continue to drive our critical R&D programs and key business initiatives, that we believe position us for profitable growth,” stated Darin Billerbeck, Everspin’s Executive Chairman and Interim CEO. “Our emphasis on cash management, product cost, and operational excellence have been fundamental to our continued progress.

“We are also pleased to report that, in Q1’21, we signed contracts related to a U.S. Government RAD-Hard program and received a $3 million up-front payment. The total value of this STT-MRAM development project, including licenses, royalty, and Non-Recurring Engineering, is greater than $6 million, which we anticipate recognizing as revenue over the course of the next 36 months. We also anticipate additional manufacturing revenue from this program in 2023 and beyond.”

First Quarter 2021 Results

Total revenue for the first quarter of 2021 was $10.3 million, compared to $10.0 million in the prior quarter and $10.1 million in the first quarter of 2020.

GAAP gross margin for the first quarter of 2021 was 58.2%, compared to 52.3% in the prior quarter and 52.9% in the first quarter of 2020.

GAAP operating expenses for the first quarter of 2021 were $6.3 million, compared to $6.4 million in the prior quarter and $6.9 million in the first quarter of 2020. GAAP operating expenses in the first quarter of 2021 included $0.7 million of stock-based compensation, compared to $1.3 million last quarter and $0.8 million in the year-ago quarter. Stock-based compensation for the fourth quarter of 2020 included a $0.3 million reclassification of bonus expense to stock-based compensation from prior quarters in 2020 related to bonus settlement in equity awards rather than cash.

GAAP net loss for the first quarter of 2021 was $0.5 million, or ($0.02) per share, based on 19.1 million weighted-average shares outstanding. This compares to a GAAP net loss of $1.6 million, or ($0.08) per share, in the prior quarter, and a GAAP net loss of $1.7 million, or ($0.10) per share, in the first quarter of 2020.

Adjusted EBITDA for the first quarter of 2021 was $0.8 million, compared to $0.3 million last quarter and negative ($0.3) million in the prior year period.

Cash and cash equivalents as of March 31, 2021 increased to $15.5 million compared to $14.6 million at the end of 2020.

Business Outlook

For the second quarter of 2021, Everspin expects total revenue in a range between $11 million and $12 million. GAAP net loss per share is expected to range between ($0.11) and ($0.07) per share, which reflects expected stock-based compensation expense of approximately $0.8 million.

Use of Non-GAAP Financial Measures

We supplement the reporting of our financial information determined under generally accepted accounting principles in the United States of America (GAAP) with Adjusted EBIDTA, which is a non-GAAP financial measure. We define Adjusted EBITDA as net income (loss) adjusted for interest expense, taxes, depreciation and amortization, stock-based compensation expense, and restructuring costs if any.

Our management and board of directors use Adjusted EBIDTA to understand and evaluate our operating performance and trends, to prepare and approve our annual budget and to develop short-term and long-term operating and financing plans. Accordingly, our management believes that this non-GAAP measure provide useful information for investors in understanding and evaluating our operating results in the same manner as our management and our board of directors, as well as facilitating comparisons of our operating performance on a period-to-period basis.

Non-GAAP financial measures, including Adjusted EBIDTA, should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. Moreover, other companies may define non-GAAP measures differently, which limits the usefulness of these measures for comparisons with such other companies. We encourage investors to review our financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure.

Conference Call

Everspin will host a conference call for analysts and investors today at 5:30 p.m. Eastern Time. Interested participants can access the call by dialing 1-844-889-7788 and providing passcode 9408948. International callers may join the call by dialing +1-661-378-9932, using the same code. The call will also be available as a live and archived webcast in the Investor Relations section of the company’s website at investor.everspin.com.

A telephone replay of the conference call will be available approximately two hours after the call through May 13, 2021. The replay can be accessed by dialing 1-855-859-2056 and using the passcode 9408948. International callers should dial +1-404-537-3406 and enter the same passcode at the prompt.

About Everspin Technologies

Everspin Technologies, Inc. is the world’s leading provider of Magnetoresistive RAM (MRAM). Everspin MRAM delivers the industry’s most robust, highest performance non-volatile memory for Industrial IoT, Data Center, and other mission-critical applications where data persistence is paramount. Headquartered in Chandler, Arizona, Everspin provides commercially available MRAM solutions to a large and diverse customer base. For more information, visit www.everspin.com. NASDAQ: MRAM.

Cautionary Statement Regarding Forward-Looking Statements

This press release contains forward-looking statements regarding future results that involve risks and uncertainties that could cause actual results or events to differ materially from the expectations disclosed in the forward-looking statements, including, but not limited to the statements made under the caption “Business Outlook.” Forward-looking statements are identified by words such as “believe”, “will”, “may”, “estimate”, “continue”, “anticipate”, “intend”, “should”, “plan”, “expect”, “predict”, “could”, “potentially” or the negative of these terms or similar expressions. These include, but are not limited to our future plans, strategies, objectives, expectations, intentions and financial performance and the assumptions that underlie these statements. Actual results could differ materially from these forward-looking statements as a result of certain risks and uncertainties, including, without limitation, the risks set forth under the caption “Risk Factors” in Everspin’s Annual Report on Form 10-K for the year ended December 31, 2020 filed with the SEC on March 4, 2021 and Everspin’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2021 to be filed with the SEC, as well as in our subsequent filings with the SEC. Any forward-looking statements made by Everspin in this press release speak only as of the date on which they are made and subsequent events may cause these expectations to change. Everspin disclaims any obligations to update or alter these forward-looking statements in the future, whether as a result of new information, future events or otherwise.

EVERSPIN TECHNOLOGIES, INC.

Condensed Balance Sheets

(In thousands, except share and per share amounts)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

March 31,

 

December 31,

 

 

2021

 

2020

Assets

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

15,485

 

 

$

14,599

 

Accounts receivable, net

 

 

10,315

 

 

 

7,607

 

Inventory

 

 

5,358

 

 

 

5,721

 

Prepaid expenses and other current assets

 

 

208

 

 

 

270

 

Total current assets

 

 

31,366

 

 

 

28,197

 

Property and equipment, net

 

 

1,657

 

 

 

1,946

 

Right-of-use assets

 

 

1,970

 

 

 

2,313

 

Other assets

 

 

73

 

 

 

73

 

Total assets

 

$

35,066

 

 

$

32,529

 

 

 

 

 

 

 

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

1,944

 

 

$

2,224

 

Accrued liabilities

 

 

2,148

 

 

 

2,232

 

Deferred revenue

 

 

3,000

 

 

 

 

Current portion of long-term debt

 

 

4,277

 

 

 

4,242

 

Operating lease liabilities

 

 

1,367

 

 

 

1,508

 

Other liabilities

 

 

37

 

 

 

31

 

Total current liabilities

 

 

12,773

 

 

 

10,237

 

Long-term debt, net of current portion

 

 

3,199

 

 

 

3,748

 

Operating lease liabilities, net of current portion

 

 

662

 

 

 

903

 

Long-term income tax liability

 

 

229

 

 

 

229

 

Total liabilities

 

$

16,863

 

 

$

15,117

 

Commitments and contingencies

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

 

Preferred stock, $0.0001 par value per share; 5,000,000 shares authorized; no shares issued and outstanding as of March 31, 2021 and December 31, 2020

 

 

 

 

 

 

Common stock, $0.0001 par value per share; 100,000,000 shares authorized; 19,222,342 and 19,031,556 shares issued and outstanding as of March 31, 2021 and December 31, 2020

 

 

2

 

 

 

2

 

Additional paid-in capital

 

 

175,835

 

 

 

174,584

 

Accumulated deficit

 

 

(157,634

)

 

 

(157,174

)

Total stockholders’ equity

 

 

18,203

 

 

 

17,412

 

Total liabilities and stockholders’ equity

 

$

35,066

 

 

$

32,529

 

EVERSPIN TECHNOLOGIES, INC.

Condensed Statements of Operations and Comprehensive Loss

(In thousands, except share and per share amounts)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31,

 

 

 

2021

 

2020

 

Product sales

 

$

9,068

 

 

$

9,635

 

 

Licensing, royalty, and other revenue

 

 

1,212

 

 

 

473

 

 

Total revenue

 

 

10,280

 

 

 

10,108

 

 

Cost of sales

 

 

4,295

 

 

 

4,757

 

 

Gross profit

 

 

5,985

 

 

 

5,351

 

 

Operating expenses:1

 

 

 

 

 

 

 

Research and development

 

 

2,439

 

 

 

3,030

 

 

General and administrative

 

 

2,843

 

 

 

2,800

 

 

Sales and marketing

 

 

987

 

 

 

1,103

 

 

Total operating expenses

 

 

6,269

 

 

 

6,933

 

 

Loss from operations

 

 

(284

)

 

 

(1,582

)

 

Interest expense

 

 

(152

)

 

 

(172

)

 

Other (expense) income, net

 

 

(15

)

 

 

48

 

 

Net loss before income taxes

 

 

(451

)

 

 

(1,706

)

 

Income tax expense

 

 

(9

)

 

 

(26

)

 

Net loss and comprehensive loss

 

$

(460

)

 

$

(1,732

)

 

Net loss per common share, basic and diluted

 

$

(0.02

)

 

$

(0.10

)

 

Weighted-average shares used to compute net loss per common share, basic and diluted

 

 

19,092,367

 

 

 

18,055,693

 

 

 

 

 

 

 

 

 

 

1Operating expenses include stock-based compensation as follows:

 

Research and development

 

$

181

 

 

$

162

 

 

General and administrative

 

 

485

 

 

 

585

 

 

Sales and marketing

 

 

77

 

 

 

58

 

 

Total stock-based compensation

 

$

743

 

 

$

805

 

 

EVERSPIN TECHNOLOGIES, INC.

Reconciliation of Adjusted EBITDA

(In thousands)

(Unaudited)

 

Three Months Ended

Mar 31, 2021

Dec 31, 2020

Mar 31, 2020

Adjusted EBITDA reconciliation:

Net loss

$

(460

)

$

(1,591

)

$

(1,732

)

Depreciation and amortization

 

339

 

 

370

 

 

409

 

Stock-based compensation expense

 

743

 

 

1,335

 

 

805

 

Interest Expense

 

152

 

 

164

 

 

172

 

Adjusted EBITDA

$

774

 

$

278

 

$

(346

)

 

EVERSPIN TECHNOLOGIES, INC.

Condensed Statement of Cash Flows

(In thousands)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31,

 

 

 

2021

 

2020

 

Cash flows from operating activities

 

 

 

 

 

 

 

Net loss

 

$

(460

)

 

$

(1,732

)

 

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

 

 

 

 

 

 

 

Depreciation and amortization

 

 

383

 

 

 

409

 

 

Stock-based compensation

 

 

743

 

 

 

805

 

 

Non-cash gain (loss) on warrant revaluation

 

 

4

 

 

 

(6

)

 

Non-cash interest expense

 

 

86

 

 

 

73

 

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

Accounts receivable

 

 

(2,708

)

 

 

(521

)

 

Inventory

 

 

363

 

 

 

(81

)

 

Prepaid expenses and other current assets

 

 

62

 

 

 

21

 

 

Accounts payable

 

 

(63

)

 

 

(1,067

)

 

Accrued liabilities

 

 

280

 

 

 

(435

)

 

Deferred revenue

 

 

3,000

 

 

 

 

 

Lease liabilities

 

 

(39

)

 

 

(21

)

 

Net cash provided by (used in) operating activities

 

 

1,651

 

 

 

(2,555

)

 

Cash flows from investing activities

 

 

 

 

 

 

 

Purchases of property and equipment

 

 

(309

)

 

 

(64

)

 

Net cash used in investing activities

 

 

(309

)

 

 

(64

)

 

Cash flows from financing activities

 

 

 

 

 

 

 

Payments on debt

 

 

(600

)

 

 

 

 

Payments on finance lease obligation

 

 

 

 

 

(2

)

 

Proceeds from exercise of stock options and purchase of shares in employee stock purchase plan

 

 

144

 

 

 

 

 

Proceeds from issuance of common stock in at-the-market offering, net of issuance costs

 

 

 

 

 

2,084

 

 

Net cash (used in) provided by financing activities

 

 

(456

)

 

 

2,082

 

 

Net increase (decrease) in cash and cash equivalents

 

 

886

 

 

 

(537

)

 

Cash and cash equivalents at beginning of period

 

 

14,599

 

 

 

14,487

 

 

Cash and cash equivalents at end of period

 

$

15,485

 

 

$

13,950

 

 

Supplementary cash flow information:

 

 

 

 

 

 

 

Interest paid

 

$

66

 

 

$

99

 

 

Operating cash flows paid for operating leases

 

$

413

 

 

$

486

 

 

Financing cash flows paid for finance leases

 

$

 

 

$

2

 

 

Non-cash investing and financing activities:

 

 

 

 

 

 

 

Bonus settled in shares of common stock

 

$

364

 

 

$

315

 

 

 

Contacts

Company Contact:
Darin Billerbeck, Interim CEO

E: [email protected]
480.347.1101

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