Everspin Announces Second Quarter 2017 Financial Results
CHANDLER, Ariz., Aug. 10, 2017 (GLOBE NEWSWIRE) -- Everspin Technologies, Inc. (Nasdaq:MRAM), the world's leading developer and manufacturer of discrete and embedded Magnetoresistive Random Access Memory (MRAM), today announced the company’s second quarter 2017 financial results for the quarter ended June 30, 2017.
Revenue for the second quarter of 2017 was $8.9 million, compared to $6.7 million for the second quarter of 2016. Everspin's GAAP net loss for the second quarter of 2017 was $5.2 million, or ($0.42) per share based on 12.4 million weighted-average shares outstanding, compared to a GAAP net loss of $5.4 million, or ($2.12) per share for the second quarter of 2016 based on 2.6 million weighted-average shares outstanding.
“I am encouraged by the customer reception we are experiencing with our MRAM technology. Our second quarter 2017 revenues were a record for the company due to the continued, robust growth of our Toggle MRAM technology. In parallel, we continue to focus on the infrastructure, eco-systems and product portfolio to advance our Spin Torque MRAM growth opportunity,” said Phill LoPresti, Everspin’s President and Chief Executive Officer.
Recent Business Highlights
- Everspin’s First Spin Torque 256 Mb design win entered production for use in SMART Modular’s NVM Express (NVMe) PCIe Card.
- The Company began customer sampling of our 1 Gb DDR4 Spin Torque chips.
- Everspin officially launched four nvNitro™ products, using 256 Mb DDR3 Spin Torque chips.
- GLOBALFOUNDRIES has made PDK kits available for customers to design embedded MRAM SOCs on their 22nm FDX™ process using Everspin’s Spin Torque MRAM technology.
Financial Results Conference Call
Everspin will host a conference call to discuss its financial results at 8 a.m. Eastern Time on Thursday, August 10. Interested parties can listen to a live webcast of the conference call by visiting the Investor Relations section of Everspin’s website at www.investor.everspin.com. Dial in information for the conference call is available by registering at http://dpregister.com/10110723. The conference call and webcast will include forward-looking information. A replay of the conference call will also be available on the Investor Relations section of Everspin’s website at www.investor.everspin.com following the completion of the call.
About Everspin Technologies
Everspin Technologies is the leading provider of Magnetoresistive RAM (MRAM) solutions. Everspin’s MRAM solutions enable the protection of mission critical data by combining the persistence of non-volatile memory with the speed and endurance of SRAM or DRAM. Everspin’s MRAM solutions allow its customers in the industrial, automotive, and enterprise storage markets to design high performance and reliable systems. Everspin is the only provider of commercially available MRAM solutions and has shipped over 70 million MRAM units. For more information, visit www.everspin.com.
Forward-Looking Statements
This press release contains forward-looking statements regarding future events that involve risks and uncertainties that could cause actual results or events to differ materially from the expectations disclosed in the forward-looking statement, including, but not limited to, conversion of design wins into bookings and bookings into revenue; the market may not adopt Everspin’s products and technology at the rate Everspin expects; the ability for Everspin to expand the markets Everspin addresses at the rate it expects; the risk that unexpected technical difficulties may develop in the final stages of development or production of its products. Readers are advised that they should not place undue reliance on these forward-looking statements and should review the risk factors included in Everspin’s various filings with the Securities and Exchange Commission, including, but not limited to, in its Quarterly Report on Form 10-Q filed with the SEC on May 15, 2017, Annual Report on Form 10K filed with the SEC on March 29, 2017, under the caption “Risk Factors Related to Our Business and Our Industry.” Subsequent events may cause these expectations to change, and 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.
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EVERSPIN TECHNOLOGIES, INC. Condensed Balance Sheets (In thousands, except share and per share amounts) (Unaudited) | ||||||||
| June 30, | December 31, | |||||||
| 2017 | 2016 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 21,176 | $ | 29,727 | ||||
| Accounts receivable, net | 3,630 | 3,170 | ||||||
| Amounts due from related parties | 550 | 486 | ||||||
| Inventory | 6,653 | 5,069 | ||||||
| Prepaid expenses and other current assets | 1,002 | 1,050 | ||||||
| Total current assets | 33,011 | 39,502 | ||||||
| Property and equipment, net | 3,675 | 1,920 | ||||||
| Other assets | 61 | 50 | ||||||
| Total assets | $ | 36,747 | $ | 41,472 | ||||
| Liabilities and Stockholders’ Equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 1,852 | $ | 1,502 | ||||
| Accrued liabilities | 1,911 | 1,811 | ||||||
| Amounts due to related parties | 1,392 | 1,359 | ||||||
| Deferred income on shipments to distributors | 1,590 | 1,827 | ||||||
| Current portion of long-term debt | 649 | 3,884 | ||||||
| Total current liabilities | 7,394 | 10,383 | ||||||
| Long-term debt, net of current portion | 11,345 | 4,218 | ||||||
| Total liabilities | 18,739 | 14,601 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders’ equity: | ||||||||
| Preferred stock, $0.0001 par value per share; 5,000,000 shares authorized as of June 30, 2017 and December 31, 2016; no shares issued and outstanding as of June 30, 2017 and December 31, 2016 |
— | — | ||||||
| Common stock, $0.0001 par value per share; 100,000,000 shares authorized as of June 30, 2017 and December 31, 2016; 12,674,391 and 12,498,128 shares issued and outstanding as of June 30, 2017 and December 31, 2016 |
1 | 1 | ||||||
| Additional paid-in capital | 125,719 | 123,309 | ||||||
| Accumulated deficit | (107,712 | ) | (96,439 | ) | ||||
| Total stockholders’ equity | 18,008 | 26,871 | ||||||
| Total liabilities and stockholders’ equity | $ | 36,747 | $ | 41,472 | ||||
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EVERSPIN TECHNOLOGIES, INC. Condensed Statements of Operations and Comprehensive Loss (In thousands, except share and per share amounts) (Unaudited) | ||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2017 | 2016 | 2017 | 2016 | |||||||||||||
| Product sales (including related party sales of $627 and $0 for the three months ended June 30, 2017 and 2016, $1,199 and $735 for the six months ended June 30, 2017 and 2016, respectively) |
$ | 8,062 | $ | 6,597 | $ | 15,282 | $ | 12,723 | ||||||||
| Licensing and royalty revenue (including related party revenue of $650 and $0 for the three months ended June 30, 2017 and 2016, $1,219 and $0 for the six months ended June 30, 2017 and 2016, respectively) |
863 | 62 | 1,523 | 143 | ||||||||||||
| Total revenue | 8,925 | 6,659 | 16,805 | 12,866 | ||||||||||||
| Cost of sales | 3,133 | 3,159 | 6,796 | 5,704 | ||||||||||||
| Gross profit | 5,792 | 3,500 | 10,009 | 7,162 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Research and development | 6,427 | 6,094 | 12,816 | 11,231 | ||||||||||||
| General and administrative | 2,793 | 1,580 | 5,638 | 3,295 | ||||||||||||
| Sales and marketing | 1,361 | 861 | 2,219 | 1,688 | ||||||||||||
| Total operating expenses | 10,581 | 8,535 | 20,673 | 16,214 | ||||||||||||
| Loss from operations | (4,789 | ) | (5,035 | ) | (10,664 | ) | (9,052 | ) | ||||||||
| Interest expense | (176 | ) | (718 | ) | (406 | ) | (1,184 | ) | ||||||||
| Other income, net | 24 | 337 | 43 | 280 | ||||||||||||
| Loss on extinguishment of debt | (246 | ) | — | (246 | ) | — | ||||||||||
| Net loss and comprehensive loss | $ | (5,187 | ) | $ | (5,416 | ) | $ | (11,273 | ) | $ | (9,956 | ) | ||||
| Net loss per common share, basic and diluted | $ | (0.42 | ) | $ | (2.12 | ) | $ | (0.91 | ) | $ | (3.90 | ) | ||||
| Weighted-average shares used to compute net loss per common share, basic and diluted |
12,413,524 | 2,557,029 | 12,357,066 | 2,555,397 | ||||||||||||
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EVERSPIN TECHNOLOGIES, INC. Condensed Statement of Cash Flows (In thousands) (Unaudited) | ||||||||
| Six Months Ended | ||||||||
| June 30, | ||||||||
| 2017 | 2016 | |||||||
| Cash flows from operating activities | ||||||||
| Net loss | $ | (11,273 | ) | $ | (9,956 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Depreciation and amortization | 510 | 380 | ||||||
| Loss on disposal of property and equipment | — | 80 | ||||||
| Stock-based compensation | 839 | 211 | ||||||
| Change in fair value of redeemable convertible preferred stock warrant liability | — | (21 | ) | |||||
| Non-cash loss on extinguishment of debt | 185 | — | ||||||
| Change in fair value of derivative liability | — | (265 | ) | |||||
| Non-cash interest expense | 119 | 783 | ||||||
| Compensation expense related to vesting of common stock to GLOBALFOUNDRIES | 716 | 1,442 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | (460 | ) | (821 | ) | ||||
| Amounts due from related parties | (64 | ) | 62 | |||||
| Prepaid expenses and other current assets | 48 | (507 | ) | |||||
| Inventory | (1,584 | ) | 404 | |||||
| Other assets | (11 | ) | 3 | |||||
| Accounts payable | 51 | 967 | ||||||
| Accrued liabilities | 100 | 292 | ||||||
| Amounts due to related parties | (229 | ) | 2,197 | |||||
| Deferred income on shipments to distributors | (237 | ) | 203 | |||||
| Deferred revenue | — | (104 | ) | |||||
| Net cash used in operating activities | (11,290 | ) | (4,650 | ) | ||||
| Cash flows from investing activities | ||||||||
| Purchases of property and equipment | (1,704 | ) | (427 | ) | ||||
| Net cash used in investing activities | (1,704 | ) | (427 | ) | ||||
| Cash flows from financing activities | ||||||||
| Proceeds from convertible promissory notes-related party | — | 5,000 | ||||||
| Proceeds from debt | 12,000 | 1,500 | ||||||
| Payments on debt | (8,356 | ) | (355 | ) | ||||
| Payments of debt issuance costs | (49 | ) | (15 | ) | ||||
| Payments on capital lease obligation | (7 | ) | (129 | ) | ||||
| Payments of deferred offering costs | — | (618 | ) | |||||
| Proceeds from exercise of stock options and purchase of shares in employee stock purchase plan |
855 | 29 | ||||||
| Net cash provided by financing activities | 4,443 | 5,412 | ||||||
| Net (decrease) increase in cash and cash equivalents | (8,551 | ) | 335 | |||||
| Cash and cash equivalents at beginning of period | 29,727 | 2,307 | ||||||
| Cash and cash equivalents at end of period | $ | 21,176 | $ | 2,642 | ||||
| Supplementary cash flow information: | ||||||||
| Interest paid | $ | 288 | $ | 401 | ||||
| Non-cash investing and financing activities: | ||||||||
| Purchase of property and equipment in accounts payable and amounts due to related parties |
$ | 560 | $ | — | ||||
| Purchase of property and equipment under capital lease obligations | $ | — | $ | 34 | ||||
| Deferred offering costs recorded in accounts payable and accrued liabilities | $ | — | $ | 942 | ||||
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EVERSPIN TECHNOLOGIES, INC. Adjusted EBITDA Reconciliation (In thousands) (Unaudited) | ||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
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2017 |
2016 | 2017 | 2016 | |||||||||||||
| Net loss | $ | (5,187 | ) | $ | (5,416 | ) | $ | (11,273 | ) | $ | (9,956 | ) | ||||
| Depreciation and amortization | 278 | 184 | 510 | 380 | ||||||||||||
| Stock-based compensation expense | 408 | 100 | 839 | 211 | ||||||||||||
| Compensation expense related to vesting of GLOBALFOUNDRIES common stock |
461 | 922 | 716 | 1,442 | ||||||||||||
| Interest expense | 176 | 718 | 406 | 1,184 | ||||||||||||
| Adjusted EBITDA | $ | (3,864 | ) | $ | (3,492 | ) | $ | (8,802 | ) | $ | (6,739 | ) | ||||
Everspin Investor Relations Contact: David H. Allen 408-427-4463 DAllen@DarrowIR.com
