Everspin Reports Unaudited Second Quarter 2023 Financial Results
- Everspin reports positive Q2 results with revenue exceeding guidance at $15.7 million and net income of $3.9 million, indicating strong performance. The company also generated cash flows of $6.3 million.
- Everspin received a one-time employee retention tax credit of $2.0 million, which positively impacts its financials.
- The company expects Q3 revenue in the range of $15.4 million to $16.4 million, indicating continued growth.
- None.
Everspin continues to generate profits, reporting positive GAAP net income for the 9th quarter in a row along with strong operational cash flow in its second quarter results.
Second Quarter 2023 Highlights
-
Q2’23 revenue exceeded the top end of guidance at
.$15.7 million -
The company reported net income of
for Q2’23 compared to$3.9 million for Q1’23.$0.8 million -
Adjusted EBITDA for Q2’23 was
compared to$5.4 million for Q1’23.$2.3 million -
Basic EPS for Q2’23 was
compared to$0.19 in Q1’23.$0.04 -
Everspin generated cash flows from operating activities of
for Q2’23.$6.3 million -
Everspin ended Q2’23 with cash and cash equivalents of
.$30.8 million -
Everspin received a one-time employee retention tax credit of
.$2.0 million
“Everspin delivered revenue of
Second Quarter 2023 Results
Total revenue for the second quarter of 2023 was
MRAM product sales in the second quarter of 2023, which includes both Toggle and STT-MRAM revenue, was
Licensing, royalties, patents and other revenue was
Second quarter 2023 revenue increased from the prior quarter due to licensing revenue related to Everspin’s RAD-Hard projects.
Gross margin for the second quarter of 2023 was
GAAP operating expenses were
GAAP net income for the second quarter of 2023 was
Cash and cash equivalents as of the end of the second quarter of 2023 were
Everspin generated cash flows from operating activities of
During the second quarter of 2023, Everspin received a one-time Employee Retention Tax Credit (ERTC) refund from the United States Treasury totaling
Business Outlook
For the third quarter 2023, 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 the resurgence of 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, August 2, 2023, at 5:00 p.m. Eastern Time. Interested participants can pre-register online to receive a telephone number and a unique passcode at:
https://register.vevent.com/register/BI6f420adaead04896a89f74be1072e951
The conference call will be broadcast live in listen-only mode at:
https://edge.media-server.com/mmc/p/k8k7f8ap
The registration link and archived webcast will be available in the Investor Relations section of Everspin’s website at investor.everspin.com.
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 third quarter 2023 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) (Unaudited) |
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June 30, |
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December 31, |
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2023 |
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2022 |
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Assets |
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Current assets: |
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Cash and cash equivalents |
|
$ |
30,830 |
|
|
$ |
26,795 |
|
Accounts receivable, net |
|
|
9,026 |
|
|
|
10,665 |
|
Inventory |
|
|
7,345 |
|
|
|
6,683 |
|
Prepaid expenses and other current assets |
|
|
411 |
|
|
|
604 |
|
Total current assets |
|
|
47,612 |
|
|
|
44,747 |
|
Property and equipment, net |
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|
3,522 |
|
|
|
3,883 |
|
Right-of-use assets |
|
|
6,074 |
|
|
|
6,641 |
|
Other assets |
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|
62 |
|
|
|
62 |
|
Total assets |
|
$ |
57,270 |
|
|
$ |
55,333 |
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Liabilities and Stockholders’ Equity |
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Current liabilities: |
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Accounts payable |
|
$ |
1,230 |
|
|
$ |
2,778 |
|
Accrued liabilities |
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|
2,832 |
|
|
|
3,533 |
|
Deferred revenue |
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|
725 |
|
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|
821 |
|
Current portion of long-term debt |
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— |
|
|
|
2,594 |
|
Lease liabilities, current portion |
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|
1,156 |
|
|
|
1,122 |
|
Other liabilities |
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|
50 |
|
|
|
27 |
|
Total current liabilities |
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|
5,993 |
|
|
|
10,875 |
|
Long-term debt, net of current portion |
|
|
— |
|
|
|
— |
|
Lease liabilities, net of current portion |
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|
4,991 |
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|
5,580 |
|
Long-term income tax liability |
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|
214 |
|
|
|
214 |
|
Total liabilities |
|
$ |
11,198 |
|
|
$ |
16,669 |
|
Commitments and contingencies (Note 5) |
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Stockholders’ equity: |
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Preferred stock, |
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— |
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— |
|
Common stock, |
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2 |
|
|
|
2 |
|
Additional paid-in capital |
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|
188,126 |
|
|
|
185,364 |
|
Accumulated deficit |
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|
(142,056 |
) |
|
|
(146,702 |
) |
Total stockholders’ equity |
|
|
46,072 |
|
|
|
38,664 |
|
Total liabilities and stockholders’ equity |
|
$ |
57,270 |
|
|
$ |
55,333 |
|
EVERSPIN TECHNOLOGIES, INC. Statements of Income and Comprehensive Income (In thousands, except share and per share amounts) (Unaudited) |
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Three Months Ended June 30, |
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Six Months Ended June 30, |
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2023 |
|
2022 |
|
2023 |
|
2022 |
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Product sales |
|
$ |
13,406 |
|
$ |
13,223 |
|
|
$ |
27,183 |
|
|
$ |
25,894 |
|
Licensing, royalty, patent, and other revenue |
|
|
2,341 |
|
|
1,484 |
|
|
|
3,410 |
|
|
|
3,160 |
|
Total revenue |
|
|
15,747 |
|
|
14,707 |
|
|
|
30,593 |
|
|
|
29,054 |
|
Cost of product sales |
|
|
6,090 |
|
|
5,793 |
|
|
|
12,213 |
|
|
|
11,545 |
|
Cost of licensing, royalty, patent, and other revenue |
|
|
464 |
|
|
323 |
|
|
|
757 |
|
|
|
595 |
|
Total cost of sales |
|
|
6,554 |
|
|
6,116 |
|
|
|
12,970 |
|
|
|
12,140 |
|
Gross profit |
|
|
9,193 |
|
|
8,591 |
|
|
|
17,623 |
|
|
|
16,914 |
|
Operating expenses:1 |
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Research and development |
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|
2,708 |
|
|
2,699 |
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|
|
5,907 |
|
|
|
5,135 |
|
General and administrative |
|
|
3,507 |
|
|
2,860 |
|
|
|
6,727 |
|
|
|
5,589 |
|
Sales and marketing |
|
|
1,355 |
|
|
1,292 |
|
|
|
2,670 |
|
|
|
2,426 |
|
Total operating expenses |
|
|
7,570 |
|
|
6,851 |
|
|
|
15,304 |
|
|
|
13,150 |
|
Income from operations |
|
|
1,623 |
|
|
1,740 |
|
|
|
2,319 |
|
|
|
3,764 |
|
Interest expense |
|
|
— |
|
|
(70 |
) |
|
|
(63 |
) |
|
|
(145 |
) |
Other income (expense), net |
|
|
2,262 |
|
|
1 |
|
|
|
2,390 |
|
|
|
(13 |
) |
Net income before income taxes |
|
|
3,885 |
|
|
1,671 |
|
|
|
4,646 |
|
|
|
3,606 |
|
Income tax expense |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Net income and comprehensive income |
|
$ |
3,885 |
|
$ |
1,671 |
|
|
$ |
4,646 |
|
|
$ |
3,606 |
|
Net income per common share: |
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Basic |
|
$ |
0.19 |
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$ |
0.08 |
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$ |
0.23 |
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$ |
0.18 |
|
Diluted |
|
$ |
0.18 |
|
$ |
0.08 |
|
|
$ |
0.22 |
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|
$ |
0.17 |
|
Weighted average shares of common stock outstanding: |
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Basic |
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|
20,657,404 |
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20,069,444 |
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20,554,769 |
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19,983,526 |
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Diluted |
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|
21,234,253 |
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20,424,283 |
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21,068,059 |
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20,626,547 |
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1Operating expenses include stock-based compensation as follows: |
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Research and development |
|
$ |
503 |
|
$ |
462 |
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|
$ |
949 |
|
|
$ |
795 |
|
General and administrative |
|
|
624 |
|
|
647 |
|
|
|
1,235 |
|
|
|
1,018 |
|
Sales and marketing |
|
|
133 |
|
|
202 |
|
|
|
236 |
|
|
|
322 |
|
Total stock-based compensation |
|
$ |
1,260 |
|
$ |
1,311 |
|
|
$ |
2,420 |
|
|
$ |
2,135 |
|
EVERSPIN TECHNOLOGIES, INC. Statements of Cash Flows (In thousands) (Unaudited) |
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Six Months Ended June 30, |
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2023 |
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2022 |
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Cash flows from operating activities |
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Net income |
|
$ |
4,646 |
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|
$ |
3,606 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
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Depreciation and amortization |
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|
617 |
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|
462 |
|
Gain on sale of property and equipment |
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(15 |
) |
|
|
(167 |
) |
Stock-based compensation |
|
|
2,420 |
|
|
|
2,135 |
|
Loss on prepayment and termination of credit facility |
|
|
170 |
|
|
|
— |
|
Non-cash warrant revaluation |
|
|
23 |
|
|
|
(21 |
) |
Non-cash interest expense |
|
|
26 |
|
|
|
62 |
|
Changes in operating assets and liabilities: |
|
|
|
|
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|
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Accounts receivable |
|
|
1,639 |
|
|
|
(1,090 |
) |
Inventory |
|
|
(662 |
) |
|
|
20 |
|
Prepaid expenses and other current assets |
|
|
193 |
|
|
|
(38 |
) |
Other assets |
|
|
— |
|
|
|
664 |
|
Accounts payable |
|
|
(741 |
) |
|
|
(201 |
) |
Accrued liabilities |
|
|
(701 |
) |
|
|
(1,414 |
) |
Deferred revenue |
|
|
(96 |
) |
|
|
(832 |
) |
Lease liabilities |
|
|
12 |
|
|
|
164 |
|
Net cash provided by operating activities |
|
|
7,531 |
|
|
|
3,350 |
|
Cash flows from investing activities |
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|
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|
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Purchases of property and equipment |
|
|
(1,063 |
) |
|
|
(996 |
) |
Proceeds received from sale of property and equipment |
|
|
15 |
|
|
|
202 |
|
Net cash used in investing activities |
|
|
(1,048 |
) |
|
|
(794 |
) |
Cash flows from financing activities |
|
|
|
|
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Payments on long-term debt |
|
|
(2,790 |
) |
|
|
(1,200 |
) |
Proceeds from exercise of stock options and purchase of shares in employee stock purchase plan |
|
|
342 |
|
|
|
286 |
|
Net cash used in financing activities |
|
|
(2,448 |
) |
|
|
(914 |
) |
Net increase in cash and cash equivalents |
|
|
4,035 |
|
|
|
1,642 |
|
Cash and cash equivalents at beginning of period |
|
|
26,795 |
|
|
|
21,409 |
|
Cash and cash equivalents at end of period |
|
$ |
30,830 |
|
|
$ |
23,051 |
|
Supplementary cash flow information: |
|
|
|
|
|
|
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Interest paid |
|
$ |
37 |
|
|
$ |
83 |
|
Operating cash flows paid for operating leases |
|
$ |
692 |
|
|
$ |
635 |
|
Financing cash flows paid for finance leases |
|
$ |
6 |
|
|
$ |
5 |
|
Non-cash investing and financing activities: |
|
|
|
|
|
|
||
Right-of-use assets obtained in exchange for operating lease liabilities |
|
$ |
— |
|
|
$ |
3,350 |
|
Right-of-use assets obtained in exchange for finance lease liabilities |
|
$ |
— |
|
|
$ |
36 |
|
Purchases of property and equipment in accounts payable and accrued liabilities |
|
$ |
— |
|
|
$ |
783 |
|
EVERSPIN TECHNOLOGIES, INC. Adjusted EBITDA Reconciliation (In thousands) (Unaudited) |
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Three Months Ended |
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|
|
June 30, 2023 |
|
March 31, 2023 |
|
June 30, 2022 |
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Adjusted EBITDA reconciliation: |
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|
|
|
|
|
|
|
|
Net income |
|
$ |
3,885 |
|
$ |
761 |
|
$ |
1,671 |
Depreciation and amortization |
|
|
284 |
|
|
333 |
|
|
204 |
Stock-based compensation expense |
|
|
1,260 |
|
|
1,160 |
|
|
1,311 |
Interest expense |
|
|
- |
|
|
63 |
|
|
70 |
Income tax expense |
|
|
- |
|
|
- |
|
|
- |
Adjusted EBITDA |
|
$ |
5,429 |
|
$ |
2,317 |
|
$ |
3,256 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20230802911515/en/
Anuj Aggarwal, CFO
T: 480-347-1082
E: anuj.aggarwal@everspin.com
Source: Everspin Technologies, Inc.
FAQ
What were Everspin's Q2 revenue and net income?
What was the one-time employee retention tax credit received by Everspin?