Everspin Reports First Quarter 2018 Financial Results

Everspin Technologies Inc (NASDAQ:MRAM), the world’s leading developer and manufacturer of discrete and embedded MRAm announced financial results for the first quarter ended March 31, 2018.

The company had a total revenue of $14.9 million including $5.5 million of licensing, royalty and other revenue. Gross margin for the quarter was record 67 percent primarily driven by licensing revenue.

As quoted in the press release:

“We’ve started out the year making notable progress driving increased adoption of our MRAM technology, while also increasing our cash reserves to help further fund and support our MRAM initiatives,” said Kevin Conley, Everspin’s President and CEO. “During the quarter, we achieved year-over-year revenue growth of our MRAM products including increased Spin-transfer Torque MRAM (STT-MRAM) shipments, closed a secondary stock offering and signed a multi-year agreement with Alps Electric to license our magnetoresistive-based 3D sensor patent portfolio. These factors all contributed to our record financial results this quarter and a stronger cash position on the balance sheet.

“We are also pleased that our strategic partner SMART Modular is shipping the nvNITRO NVMe storage accelerator.  This product is the first purely MRAM-based storage product using our STT-MRAM technology as well as the NVMe controller technology jointly developed by Everspin and SMART Modular. This is the world’s first commercially available product utilizing our STT-MRAM’s advanced perpendicular MTJ technology, delivering its low latency and high endurance to demanding transaction logging applications that require power-loss data protection.

“As we look to the second quarter, we expect to achieve further progress on the production ramp of our 256Mb STT-MRAM device and its qualification with our lead flash array customer.”

First Quarter Results
Revenue for the first quarter of 2018 was $14.9 million, which includes $5.5 million of licensing, royalty and other revenue, compared with $7.9 million in the first quarter of 2017 and $10.1 million in the fourth quarter of 2017.

Gross margin for the first quarter of 2018 was 67.0%, compared with 53.5% in the first quarter of 2017 and 61.5% in the previous quarter.

Operating expenses for the first quarter of 2018 were $11.1 million, compared with $10.1 million in the year-ago quarter and $10.5 million in the previous quarter.

Net loss per share for the first quarter of 2018 was $1.3 million, or ($0.09) per share, based on 14.8 million weighted-average shares outstanding, compared with a net loss of $6.1 million, or ($0.49) per share, in the first quarter of 2017 and $4.4 million, or ($0.35) per share, in the fourth quarter of 2017.

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