[November 08, 2018] |
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Everspin Reports Third Quarter 2018 Financial Results
Everspin Technologies, Inc. (Nasdaq: MRAM), the world's leading
developer and manufacturer of discrete and embedded MRAM, today
announced financial results for the third quarter ended September 30,
2018.
Third Quarter and Recent Highlights
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Total revenue of $11.5 million, an increase of 28% year-over-year
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Executed joint agreement with SilTerra to establish additional
manufacturing capacity for Toggle products
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Extended length of joint development agreement with GLOBALFOUNDRIES
providing both companies more effective controls on their respective
development programs
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Everspin 256Mb STT-MRAM will be available on another storage array
platform from the company's leading enterprise storage customer
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Ended quarter with cash balance of $31.4 million
"Third quarter results demonstrated meaningful progress from both a
revenue and an operational perspective. The third quarter results show
an important return to top line growth for the company. I am pleased
with the ongoing improvement our team has made in our Toggle operations
and with the traction our 256Mb STT-MRAM product is gaining both within
our lead customers and beyond. We remain on track with the planned
sampling of our 1Gb STT product next month. And finally, we've
successfully executed multiple strategic agreements and initiatives that
we believe will support longer-term profitable growth," said Kevin
Conley, Everspin's President and CEO.
Summary of Preliminary Restated Second Quarter Financial Results
Everspin also announced today that the company will be restating its
second quarter 2018 financial results due to a discrepancy related to
the timing of recognizing scrapped inventory in the amount of $770
thousand. As a result, the company will reflect an additional $770
thousand increase in cost of sales for the three- and six-month periods
ended June 30, 2018, which will reduce gross profit and increase both
loss from operations and net loss. The company anticipates filing its
third quarter 10-Q and an amended second quarter form 10-Q/A on or
before November 16, 2018. The second quarter 2018 financials are
expected to be restated as follows:
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Company to restate second quarter inventory to $8.9 million, versus
$9.6 million previously reported
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Cost of sales to be restated to be $6.2 million, versus $5.5 million
as previously reported
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Gross profit to be restated to be $4.5 million, versus $5.3 million as
previously reported
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Gross margin to be restated to be 42%, versus the 49% as previously
reported
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Loss from operations to be restated to be $7.3 million, versus $6.5
million as previously reported
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Net loss and comprehensive loss to be restated to be $7.4 million,
versus $6.6 million as previously reported
Third Quarter Results (Second Quarter 2018 Results as restated for
comparison)
Revenue for the third quarter of 2018 was $11.5 million, a 28% increase
over the $9.0 million reported in the third quarter of 2017 and a 7.0%
increase over the $10.8 million in the previous quarter.
Gross margin for the third quarter of 2018 was 47% compared to gross
margin in the third quarter of 2017 of 58% and in the second quarter of
2018 of 42%.
Operating expenses for the third quarter of 2018 were $10.9 million, an
increase from the $10.6 million in the year-ago quarter and $11.8
million in the previous quarter.
Net loss for the third quarter of 2018 was $5.6 million, or ($0.33) per
share, based on 16.9 million weighted-average shares outstanding,
compared with a net loss of $5.4 million, or ($0.43) per share, in the
third quarter of 2017 and a net loss of $7.4 million, or ($0.44) per
share, in the second quarter of 2018.
Cash and cash equivalents as of September 30, 2018 were $31.4 million as
compared to $32.7 million at the end of the second quarter of 2018.
Business Outlook
For the fourth quarter of 2018, Everspin expects revenue to range
between $11.8 million and $12.2 million. Net loss per share is expected
to range between ($0.22) and ($0.18) based on an average-weighted share
count of 17.1 million shares outstanding.
Conference Call
Everspin will host a conference call for analysts and investors today at
5:00 p.m. Eastern Time. Interested participants can access the call by
dialing 1-844-889-7788 and providing passcode 7429825.
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 until Thursday, November 15,
2018, at midnight, Eastern Time. The replay can be accessed by dialing
1-855-859-2056 and using the passcode 7429825. International callers
should dial +1-404-537-3406 and enter the same passcode at the prompt.
About Everspin Technologies
Headquartered in Chandler, Arizona, Everspin Technologies, Inc. is the
worldwide leader in the design, volume production and distribution of
Magnetoresistive RAM (News - Alert) (MRAM) into markets and applications where data
persistence, performance, and endurance are paramount. Serving
applications across the data center, industrial, and transportation
markets, Everspin has built the strongest and fastest-growing foundation
of MRAM users in the world. For more information, visit www.everspin.com.
Cautionary Statement Regarding 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 statements, including, but not limited to,
Everspin's expectations as to the timing of sampling of its 1Gb STT-MRAM
product and the statements made under the caption "Business Outlook."
Actual results could differ materially from these forward-looking
statements as a result of certain factors, including, without
limitation, the risks set forth in Everspin's Form 10-Q filed with the
Securities and Exchange Commission on August 9, 2018, under the caption
"Risk Factors." 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.
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Condensed Balance Sheets
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(In thousands, except share and per share amounts)
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(Unaudited)
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September 30,
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December 31,
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2018
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2017
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Assets
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Current assets:
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Cash and cash equivalents
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$
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31,438
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$
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12,950
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Accounts receivable, net
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5,582
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4,041
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Inventory
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9,482
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9,837
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Prepaid expenses and other current assets
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436
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590
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Total current assets
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46,938
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27,418
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Property and equipment, net
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4,438
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3,946
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Other assets
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73
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73
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Total assets
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$
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51,449
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$
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31,437
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Liabilities and Stockholders' Equity
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Current liabilities:
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Accounts payable
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$
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2,847
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$
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2,920
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Accrued liabilities
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8,588
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3,748
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Deferred income on shipments to distributors
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-
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1,720
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Current portion of long-term debt
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4,472
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3,987
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Total current liabilities
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15,907
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12,375
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Long-term debt, net of current portion
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7,928
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8,178
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Total liabilities
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23,835
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20,553
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Commitments and contingencies
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Stockholders' equity:
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Preferred stock, $0.0001 par value per share; 5,000,000 shares
authorized; no shares issued and outstanding as of September 30,
2018 and December 31, 2017
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-
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-
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Common stock, $0.0001 par value per share; 100,000,000 shares
authorized; 17,065,846 and 12,817,201 shares issued and outstanding
as of September 30, 2018 and December 31, 2017
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2
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1
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Additional paid-in capital
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158,125
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128,422
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Accumulated deficit
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(130,513
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)
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(117,539
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)
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Total stockholders' equity
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27,614
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10,884
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Total liabilities and stockholders' equity
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$
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51,449
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$
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31,437
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EVERSPIN TECHNOLOGIES, INC.
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Condensed Statements of Operations and Comprehensive Loss
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(In thousands, except share and per share amounts)
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(Unaudited)
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Three Months Ended
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Nine Months Ended
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September 30,
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September 30,
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2018
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2017
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2018
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2017
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Product sales
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$
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10,469
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$
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8,323
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$
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29,283
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$
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22,171
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Licensing, royalty, and other revenue
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1,049
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685
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7,853
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3,642
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Total revenue
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11,518
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9,008
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37,136
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25,813
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Cost of sales
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6,109
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3,753
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17,235
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10,549
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Gross profit
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5,409
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5,255
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19,901
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15,264
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Operating expenses:
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|
|
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Research and development
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6,453
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6,420
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19,706
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19,236
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General and administrative
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2,913
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3,031
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9,461
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|
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8,669
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Sales and marketing
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1,582
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1,112
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4,661
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|
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3,331
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Total operating expenses
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10,948
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10,563
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33,828
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31,236
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Loss from operations
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(5,539
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)
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(5,308
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)
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(13,927
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)
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(15,972
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)
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Interest expense
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(229
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)
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(178
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)
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(662
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)
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(584
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)
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Other income, net
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139
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40
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315
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83
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Loss on extinguishment of debt
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-
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-
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-
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(246
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)
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Net loss and comprehensive loss
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$
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(5,629
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)
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$
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(5,446
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)
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$
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(14,274
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)
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$
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(16,719
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)
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Net loss per common share, basic and diluted
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$
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(0.33
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)
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|
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$
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(0.43
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)
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|
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$
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(0.88
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)
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$
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(1.35
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)
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Weighted-average shares used to compute net loss per common share,
basic and diluted
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16,944,660
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|
|
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12,559,812
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|
|
|
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16,130,882
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|
|
|
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12,425,390
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EVERSPIN TECHNOLOGIES, INC.
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Condensed Statement of Cash Flows
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(In thousands)
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(Unaudited)
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Nine Months Ended
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September 30,
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2018
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2017
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Cash flows from operating activities
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Net loss
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$
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(14,274
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)
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$
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(16,719
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)
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Adjustments to reconcile net loss to net cash used in operating
activities:
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Depreciation and amortization
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1,069
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837
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Loss on disposal of property and equipment
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19
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|
|
|
|
-
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Stock-based compensation
|
|
|
|
|
2,064
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|
|
|
|
1,511
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Non-cash loss on extinguishment of debt
|
|
|
|
|
-
|
|
|
|
|
185
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Non-cash interest expense
|
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|
|
286
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|
|
|
|
188
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|
Compensation expense related to vesting of common stock to
GLOBALFOUNDRIES
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|
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709
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|
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1,224
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Changes in operating assets and liabilities:
|
|
|
|
|
|
|
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Accounts receivable
|
|
|
|
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(1,876
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)
|
|
|
|
(527
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)
|
Inventory
|
|
|
|
|
309
|
|
|
|
|
(2,628
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)
|
Prepaid expenses and other current assets
|
|
|
|
|
154
|
|
|
|
|
320
|
|
Other assets
|
|
|
|
|
-
|
|
|
|
|
(11
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)
|
Accounts payable
|
|
|
|
|
(140
|
)
|
|
|
|
(333
|
)
|
Accrued liabilities
|
|
|
|
|
4,840
|
|
|
|
|
1,109
|
|
Deferred income on shipments to distributors
|
|
|
|
|
-
|
|
|
|
|
323
|
|
Shipping term reversal
|
|
|
|
|
(39
|
)
|
|
|
|
-
|
|
Net cash used in operating activities
|
|
|
|
|
(6,879
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)
|
|
|
|
(14,521
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)
|
Cash flows from investing activities
|
|
|
|
|
|
|
|
Purchases of property and equipment
|
|
|
|
|
(1,513
|
)
|
|
|
|
(2,170
|
)
|
Net cash used in investing activities
|
|
|
|
|
(1,513
|
)
|
|
|
|
(2,170
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)
|
Cash flows from financing activities
|
|
|
|
|
|
|
|
Proceeds from the issuance of common stock, net of offering costs
|
|
|
|
|
24,524
|
|
|
|
|
-
|
|
Proceeds from debt
|
|
|
|
|
1,000
|
|
|
|
|
12,000
|
|
Payments on debt
|
|
|
|
|
(1,000
|
)
|
|
|
|
(8,356
|
)
|
Payments of debt issuance costs
|
|
|
|
|
-
|
|
|
|
|
(49
|
)
|
Payments on capital lease obligation
|
|
|
|
|
(8
|
)
|
|
|
|
(7
|
)
|
Proceeds from exercise of stock options and purchase of shares in
employee stock purchase plan
|
|
|
|
|
2,364
|
|
|
|
|
1,218
|
|
Net cash provided by financing activities
|
|
|
|
|
26,880
|
|
|
|
|
4,806
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|
Net increase (decrease) in cash and cash equivalents
|
|
|
|
|
18,488
|
|
|
|
|
(11,885
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)
|
Cash and cash equivalents at beginning of period
|
|
|
|
|
12,950
|
|
|
|
|
29,727
|
|
Cash and cash equivalents at end of period
|
|
|
|
$
|
31,438
|
|
|
|
$
|
17,842
|
|
Supplementary cash flow information:
|
|
|
|
|
|
|
|
Interest paid
|
|
|
|
$
|
370
|
|
|
|
$
|
396
|
|
Non-cash investing and financing activities:
|
|
|
|
|
|
|
|
Purchase of property and equipment in accounts payable
|
|
|
|
$
|
183
|
|
|
|
$
|
764
|
|
Issuance of warrants with debt
|
|
|
|
$
|
43
|
|
|
|
$
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-
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View source version on businesswire.com: https://www.businesswire.com/news/home/20181108005957/en/
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