Everspin Reports Unaudited Fourth Quarter and Full Year 2023 Financial Results
- Impressive Q4’23 revenue of $16.7 million and EPS of $0.09 exceeded expectations.
- Record annual revenue and profitability achieved in 2023 with 217 design wins.
- Total revenue for full year 2023 was $63.8 million, a 6% increase from 2022.
- GAAP net income for 2023 was $9.1 million, or $0.42 per diluted share, showing growth from the previous year.
- Everspin's strong financial position with no debt and a record high cash balance of $36.9 million.
- None.
Insights
The reported increase in Q4 revenue by 6% and a record annual revenue for Everspin Technologies indicates a positive trend in the company's financial performance. This performance can be attributed to their operational excellence and increased design wins, which suggest a growing market acceptance of their MRAM products. The improved gross margin is particularly noteworthy as it reflects the company's ability to enhance profitability through cost management and operational efficiency. From a market perspective, these results may signal a robust demand for MRAM technology, which is known for its durability and speed, potentially leading to increased investor confidence.
With Everspin's GAAP net income increasing to $2.0 million in Q4 and $9.1 million for the full year, the company's financial health appears strong, especially considering the 11 consecutive quarters of profitability. The growth in licensing, royalties, patents and other revenue streams is a positive diversification of income. Additionally, the company's strong cash position and lack of debt provide it with strategic flexibility to invest in growth opportunities or weather potential market downturns. However, the forecasted Q1 2024 revenue suggests a potential slowdown, which investors should monitor closely as it may be indicative of market volatility or operational challenges.
The semiconductor industry is known for its cyclical nature and Everspin's performance must be contextualized within this framework. The company's focus on MRAM technology, a niche but growing segment, is significant as it positions Everspin in a specialized market with less competition and potentially higher margins. The increased gross margin and record high cash balance are strong indicators of Everspin's competitive edge in this space. However, external factors such as the ongoing supply chain constraints and geopolitical tensions could impact future performance. The industry will be watching how Everspin navigates these challenges while maintaining its growth trajectory.
Q4’23 revenue of
Achieved record annual revenue and profitability in 2023
“We are pleased that our fourth quarter results exceeded our expectations across the board, led by strong product and RAD Hard revenue,” said Sanjeev Aggarwal, President and Chief Executive Officer. “For the full year, our team delivered record revenue and profitability, while driving improved gross margins through operational excellence, and we closed the year with 217 design wins.”
Fourth Quarter 2023 Results
-
Total revenue of
$16.7 million 6% from$15.7 million -
MRAM product sales, which includes both Toggle and STT-MRAM revenue, of
$12.4 million $14.6 million -
Licensing, royalties, patents, and other revenue of
$4.3 million $1.1 million -
Gross margin of
58.1% , compared to51.4% in the fourth quarter of 2022. -
GAAP operating expenses of
$8.1 million $7.5 million -
GAAP net income of
$2.0 million $0.09 $0.6 million $0.03 -
Adjusted EBITDA of
$3.6 million $2.1 million -
Record high cash and cash equivalents balance of
$36.9 million
Full Year 2023 Results
-
Total revenue of
$63.8 million 6% from$60.0 million -
MRAM product sales, which includes both Toggle and STT-MRAM revenue, of
$53.1 million $55.0 million -
Licensing, royalties, patents, and other revenue of
$10.6 million $5.0 million -
Gross margin of
58.4% , compared to56.6% in 2022. -
GAAP operating expenses of
$31.4 million $27.7 million -
GAAP net income of
$9.1 million $0.42 $6.1 million $0.29 -
Adjusted EBITDA of
$15.3 million $11.8 million
“We reported another profitable quarter, marking our 11th consecutive quarter of profitability, a key focus for the company,” said Anuj Aggarwal, Everspin’s Chief Financial Officer. “Our financial position remains strong, with no debt and the highest cash balance in the company's history.”
Business Outlook
For the first quarter 2024, Everspin expects total revenue in a range of
This outlook is dependent on Everspin's current expectations, which may be impacted by, among other things, evolving external conditions, such as COVID-19 and its variants, local safety guidelines, worsening impacts due to supply chain constraints or interruptions, including due to the military conflict in
Use of Non-GAAP Financial Measures
Everspin supplements the reporting of its financial information determined under generally accepted accounting principles in
Everspin’s management and board of directors use Adjusted EBITDA to understand and evaluate its operating performance and trends, to prepare and approve its annual budget and to develop short-term and long-term operating and financing plans. Accordingly, Everspin believes that Adjusted EBITDA provides useful information for investors in understanding and evaluating its operating results in the same manner as its management and board of directors. Adjusted EBITDA is a non-GAAP financial measure and should be considered in addition to, not as superior to, or as a substitute for, net income reported in accordance with GAAP. Moreover, other companies may define Adjusted EBITDA differently, which limits the usefulness of this measure for comparisons with such other companies. Everspin encourages investors to review its 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 on Wednesday, February 28, 2024, at 5:00 p.m. Eastern Time.
Dial-in details: To access the call by phone, please go to this link and you will be provided with dial-in details. To avoid delays, we encourage participants to dial into the conference call fifteen minutes ahead of the scheduled start time.
The live webcast of the call will be accessible on the Company’s website at investor.everspin.com. Approximately two hours after conclusion of the live event, an archived webcast of the conference call will be accessible from the Investor Relations section of the Company’s website for twelve months.
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
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 “expects” or similar expressions. These include, but are not limited to, Everspin’s future financial performance, including the outlook for first quarter 2024 results. 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, 2022 filed with the SEC on March 2, 2023, and its Quarterly Reports on Form 10-Q filed with the SEC during 2023, as well as in its 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, except as required by law.
EVERSPIN TECHNOLOGIES, INC. Balance Sheets
(In thousands, except share and per share amounts)
|
||||||||
|
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December 31, |
|
December 31, |
||||
|
|
2023 |
|
2022 |
||||
Assets |
|
|
|
|
|
|
||
Current assets: |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
36,946 |
|
|
$ |
26,795 |
|
Accounts receivable, net |
|
|
11,554 |
|
|
|
10,665 |
|
Inventory |
|
|
8,391 |
|
|
|
6,683 |
|
Prepaid expenses and other current assets |
|
|
988 |
|
|
|
604 |
|
Total current assets |
|
|
57,879 |
|
|
|
44,747 |
|
Property and equipment, net |
|
|
3,717 |
|
|
|
3,883 |
|
Right-of-use assets |
|
|
5,495 |
|
|
|
6,641 |
|
Other assets |
|
|
212 |
|
|
|
62 |
|
Total assets |
|
$ |
67,303 |
|
|
$ |
55,333 |
|
|
|
|
|
|
|
|
||
Liabilities and Stockholders’ Equity |
|
|
|
|
|
|
||
Current liabilities: |
|
|
|
|
|
|
||
Accounts payable |
|
$ |
2,916 |
|
|
$ |
2,778 |
|
Accrued liabilities |
|
|
4,336 |
|
|
|
3,533 |
|
Deferred revenue |
|
|
336 |
|
|
|
821 |
|
Current portion of long-term debt |
|
|
— |
|
|
|
2,594 |
|
Lease liabilities, current portion |
|
|
1,190 |
|
|
|
1,122 |
|
Other liabilities |
|
|
— |
|
|
|
27 |
|
Total current liabilities |
|
|
8,778 |
|
|
|
10,875 |
|
Long-term debt, net of current portion |
|
|
— |
|
|
|
— |
|
Lease liabilities, net of current portion |
|
|
4,390 |
|
|
|
5,580 |
|
Long-term income tax liability |
|
|
214 |
|
|
|
214 |
|
Total liabilities |
|
$ |
13,382 |
|
|
$ |
16,669 |
|
Commitments and contingencies (Note 5) |
|
|
|
|
|
|
||
Stockholders’ equity: |
|
|
|
|
|
|
||
Preferred stock, |
|
|
— |
|
|
|
— |
|
Common stock, |
|
|
2 |
|
|
|
2 |
|
Additional paid-in capital |
|
|
191,569 |
|
|
|
185,364 |
|
Accumulated deficit |
|
|
(137,650 |
) |
|
|
(146,702 |
) |
Total stockholders’ equity |
|
|
53,921 |
|
|
|
38,664 |
|
Total liabilities and stockholders’ equity |
|
$ |
67,303 |
|
|
$ |
55,333 |
|
EVERSPIN TECHNOLOGIES, INC. Statements of Income and Comprehensive Income (In thousands, except share and per share amounts) (Unaudited) |
||||||||
|
|
Year Ended December 31, |
||||||
|
|
2023 |
|
2022 |
||||
Product sales |
|
$ |
53,123 |
|
|
$ |
55,032 |
|
Licensing, royalty, patent, and other revenue |
|
|
10,642 |
|
|
|
4,953 |
|
Total revenue |
|
|
63,765 |
|
|
|
59,985 |
|
Cost of product sales |
|
|
24,693 |
|
|
|
25,112 |
|
Cost of licensing, royalty, patent, and other revenue |
|
|
1,827 |
|
|
|
928 |
|
Total cost of sales |
|
|
26,520 |
|
|
|
26,040 |
|
Gross profit |
|
|
37,245 |
|
|
|
33,945 |
|
Operating expenses:1 |
|
|
|
|
|
|
||
Research and development |
|
|
11,776 |
|
|
|
11,108 |
|
General and administrative |
|
|
14,296 |
|
|
|
11,741 |
|
Sales and marketing |
|
|
5,288 |
|
|
|
4,869 |
|
Total operating expenses |
|
|
31,360 |
|
|
|
27,718 |
|
Income from operations |
|
|
5,885 |
|
|
|
6,227 |
|
Interest expense |
|
|
(63 |
) |
|
|
(274 |
) |
Other income, net |
|
|
3,214 |
|
|
|
190 |
|
Net income before income taxes |
|
|
9,036 |
|
|
|
6,143 |
|
Income tax benefit (expense) |
|
|
16 |
|
|
|
(14 |
) |
Net income and comprehensive income |
|
$ |
9,052 |
|
|
$ |
6,129 |
|
Net income per common share: |
|
|
|
|
|
|
||
Basic |
|
$ |
0.44 |
|
|
$ |
0.30 |
|
Diluted |
|
$ |
0.42 |
|
|
$ |
0.29 |
|
Weighted average shares of common stock outstanding: |
|
|
|
|
|
|
||
Basic |
|
|
20,748,302 |
|
|
|
20,130,336 |
|
Diluted |
|
|
21,367,304 |
|
|
|
20,775,925 |
|
|
|
|
|
|
|
|
||
1Operating expenses include stock-based compensation as follows: |
||||||||
Research and development |
|
$ |
1,981 |
|
|
$ |
1,704 |
|
General and administrative |
|
|
2,519 |
|
|
|
2,190 |
|
Sales and marketing |
|
|
505 |
|
|
|
514 |
|
Total stock-based compensation |
|
$ |
5,005 |
|
|
$ |
4,408 |
|
EVERSPIN TECHNOLOGIES, INC. Statements of Cash Flows (In thousands) (Unaudited) |
||||||||
|
|
Year Ended December 31, |
||||||
|
|
2023 |
|
2022 |
||||
Cash flows from operating activities |
|
|
|
|
|
|
||
Net income |
|
$ |
9,052 |
|
|
$ |
6,129 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
||
Depreciation and amortization |
|
|
1,205 |
|
|
|
982 |
|
Gain on sale of property and equipment |
|
|
(15 |
) |
|
|
(167 |
) |
Stock-based compensation |
|
|
5,005 |
|
|
|
4,408 |
|
Loss on prepayment and termination of credit facility |
|
|
170 |
|
|
|
— |
|
Non-cash warrant revaluation |
|
|
(25 |
) |
|
|
(23 |
) |
Non-cash interest expense |
|
|
26 |
|
|
|
105 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
||
Accounts receivable |
|
|
(889 |
) |
|
|
(2,472 |
) |
Inventory |
|
|
(1,708 |
) |
|
|
(287 |
) |
Prepaid expenses and other current assets |
|
|
(384 |
) |
|
|
158 |
|
Other assets |
|
|
(150 |
) |
|
|
(28 |
) |
Accounts payable |
|
|
499 |
|
|
|
563 |
|
Accrued liabilities |
|
|
803 |
|
|
|
(46 |
) |
Deferred revenue |
|
|
(485 |
) |
|
|
(11 |
) |
Lease liabilities, net |
|
|
24 |
|
|
|
182 |
|
Net cash provided by operating activities |
|
|
13,128 |
|
|
|
9,493 |
|
Cash flows from investing activities |
|
|
|
|
|
|
||
Purchases of property and equipment |
|
|
(1,404 |
) |
|
|
(2,788 |
) |
Proceeds received from sale of property and equipment |
|
|
19 |
|
|
|
202 |
|
Net cash used in investing activities |
|
|
(1,385 |
) |
|
|
(2,586 |
) |
Cash flows from financing activities |
|
|
|
|
|
|
||
Payments on long-term debt |
|
|
(2,790 |
) |
|
|
(2,400 |
) |
Payments of debt issuance costs |
|
|
— |
|
|
|
(10 |
) |
Proceeds from exercise of stock options and purchase of shares in employee stock purchase plan |
|
|
1,198 |
|
|
|
889 |
|
Net cash used in financing activities |
|
|
(1,592 |
) |
|
|
(1,521 |
) |
Net increase in cash and cash equivalents |
|
|
10,151 |
|
|
|
5,386 |
|
Cash and cash equivalents at beginning of period |
|
|
26,795 |
|
|
|
21,409 |
|
Cash and cash equivalents at end of period |
|
$ |
36,946 |
|
|
$ |
26,795 |
|
Supplementary cash flow information: |
|
|
|
|
|
|
||
Interest paid |
|
$ |
37 |
|
|
$ |
169 |
|
Operating cash flows paid for operating leases |
|
$ |
1,384 |
|
|
$ |
1,320 |
|
Financing cash flows paid for finance leases |
|
$ |
12 |
|
|
$ |
11 |
|
Non-cash investing and financing activities: |
|
|
|
|
|
|
||
Right-of-use assets obtained in exchange for operating lease liabilities |
|
$ |
— |
|
|
$ |
6,837 |
|
Right-of-use assets obtained in exchange for finance lease liabilities |
|
$ |
— |
|
|
$ |
36 |
|
Purchases of property and equipment in accounts payable and accrued liabilities |
|
$ |
446 |
|
|
$ |
807 |
|
Cashless exercise of warrants |
|
$ |
2 |
|
|
$ |
— |
|
EVERSPIN TECHNOLOGIES, INC. |
||||||||
Reconciliation of Adjusted EBITDA |
||||||||
(In thousands) |
||||||||
(Unaudited) |
||||||||
|
|
Year Ended December 31, |
||||||
|
|
2023 |
|
2022 |
||||
Adjusted EBITDA reconciliation: |
|
|
|
|
|
|
||
Net income |
|
$ |
9,052 |
|
|
$ |
6,129 |
|
Depreciation and amortization |
|
|
1,205 |
|
|
|
982 |
|
Stock-based compensation expense |
|
|
5,005 |
|
|
|
4,408 |
|
Interest expense |
|
|
63 |
|
|
|
274 |
|
Income tax (benefit) expense |
|
|
(16 |
) |
|
|
14 |
|
Adjusted EBITDA |
|
$ |
15,309 |
|
|
$ |
11,807 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240228606222/en/
Investor Relations:
Monica Gould
The Blueshirt Group
T: 212-871-3927
ir@everspin.com
Source: Everspin Technologies, Inc.
FAQ
What was Everspin Technologies, Inc.'s Q4’23 revenue and EPS?
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What was Everspin's GAAP net income for 2023?
What is Everspin's current cash balance?
When will Everspin host a conference call for analysts and investors?
