Everspin Announces Third Quarter 2017 Financial Results

CHANDLER, Ariz., Nov. 13, 2017 (GLOBE NEWSWIRE) — Everspin Technologies, Inc., (Nasdaq:MRAM), today announced the company’s third quarter 2017 financial results for the quarter ended September 30, 2017. Revenue for the third quarter of 2017 was a record $9.0 million, compared to $7.2 million for the third quarter of 2016. Everspin’s GAAP net loss for the third quarter of 2017 was $5.4 million, or ($0.43) per share based on 12.6 million weighted-average shares outstanding, compared to a GAAP net loss of $1.4 million, or ($0.54) per share for the third quarter of 2016 based on 2.7 million weighted-average shares outstanding. “As I’ve settled into the role as Everspin’s CEO, I am pleased with our progress on transforming our company from a developer of innovative MRAM technology into one that can develop markets, scale operations, and reduce costs to compete in what we expect to be a larger and more competitive MRAM market,” said Kevin Conley, Everspin’s President and Chief Executive Officer. “Our existing product portfolio has performed well over the past quarter and provided a solid revenue base as we prepare to put our innovative STT-MRAM technology into production.” Recent Business Highlights

  • The appointment of Kevin Conley in September as President and Chief Executive Officer.
  • The company’s Toggle MRAM business remains strong and achieved another record revenue level in the third quarter.
  • Earlier this month, the company filed a $100 million shelf registration statement. The S3 registration provides flexibility for the company to potentially raise additional working capital.

Financial Results Conference Call Everspin will host a conference call to discuss its financial results at 4:30 p.m. Eastern Time on Monday, November 13. 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/10112176. 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 Headquartered in Chandler, Arizona, Everspin Technologies, Inc. is the worldwide leader in designing, manufacturing, and commercially shipping discrete and embedded Magnetoresistive RAM (MRAM) and Spin Transfer Torque MRAM (STT-MRAM) into markets and applications where data persistence and integrity, low latency, and security are paramount.  With over 70 million MRAM and STT-MRAM products deployed in data center, cloud storage, energy, industrial, automotive, 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. 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, the ability of the company to  transition from a developer of innovative MRAM technology into one that can develop markets, scale operations, and relentlessly reduce costs to compete in what the company expects to be a much larger and competitive MRAM market; the continuation of strong demand for the company’s Toggle products; the successful integration of new management and the execution of the company’s strategy by its management team; and the ability to raise capital as needed to support customer and industry adoption of MRAM technology and successfully bring to market and manufacture products in Everspin’s design pipeline. Readers are advised that they should not place undue reliance on these forward-looking statements and should review these and other risk factors included in Everspin’s various filings with the Securities and Exchange Commission, including, but not limited to, Quarterly Report on Form 10-Q filed with the SEC on November 13, 2017, in its Annual Report on Form 10-K 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. 


EVERSPIN TECHNOLOGIES, INC. Condensed Statement of Cash Flows (In thousands) (Unaudited)
    Nine Months Ended  
    September 30,   
    2017   2016  
Cash flows from operating activities              
Net loss   $  (16,719 )   $  (11,400 )  
Adjustments to reconcile net loss to net cash used in operating activities:              
Depreciation and amortization      837        598    
Loss on disposal of property and equipment      —        80    
Stock-based compensation      1,511        520    
Change in fair value of redeemable convertible preferred stock warrant liability      —        (32 )  
Non-cash loss on extinguishment of debt      185        —    
Change in fair value of derivative liability      —        (798 )  
Non-cash interest expense      188        1,066    
Compensation expense related to vesting of common stock to GLOBALFOUNDRIES      1,224        751    
Changes in operating assets and liabilities:              
Accounts receivable      (530 )      (417 )  
Amounts due from related parties      3        (55 )  
Inventory      (2,628 )      (1,127 )  
Prepaid expenses and other current assets      320        (277 )  
Other assets      (11 )      (21 )  
Accounts payable      574        598    
Accrued liabilities      279        204    
Amounts due to related parties      (77 )      2,959    
Deferred income on shipments to distributors      323        206    
Deferred revenue      —        (187 )  
Net cash used in operating activities      (14,521 )      (7,332 )  
Cash flows from investing activities              
Purchases of property and equipment      (2,170 )      (596 )  
Net cash used in investing activities      (2,170 )      (596 )  
Cash flows from financing activities              
Proceeds from convertible promissory notes-related party      —        8,500    
Proceeds from debt      12,000        1,500    
Payments on debt      (8,356 )      (598 )  
Payments of debt issuance costs      (49 )      (40 )  
Payments on capital lease obligation      (7 )      (179 )  
Payments of deferred offering costs      —        (1,611 )  
Proceeds from exercise of stock options and purchase of shares in employee stock purchase plan      1,218        48    
Net cash provided by financing activities      4,806        7,620    
Net decrease in cash and cash equivalents      (11,885 )      (308 )  
Cash and cash equivalents at beginning of period      29,727        2,307    
Cash and cash equivalents at end of period   $  17,842     $  1,999    
Supplementary cash flow information:              
Interest paid   $  396     $  916    
Non-cash investing and financing activities:              
Purchase of property and equipment in accounts payable and amounts due to related parties   $  764     $  —    
Purchase of property and equipment under capital lease obligations   $  —     $  34    
Deferred offering costs recorded in accounts payable and accrued liabilities   $  —     $  1,490    
EVERSPIN TECHNOLOGIES, INC. Adjusted EBITDA Reconciliation (In thousands) (Unaudited)
    Three Months Ended   Nine Months Ended  
    September 30,    September 30,   
    2017   2016   2017   2016  
Net loss   $  (5,446 )   $  (1,444 )   $  (16,719 )   $  (11,400 )  
Depreciation and amortization      327        218        837        598    
Stock-based compensation expense      672        309        1,511        520    
Compensation expense related to vesting of GLOBALFOUNDRIES common stock      508        (691 )      1,224        751    
Interest expense      178        798        584        1,982    
Adjusted EBITDA   $  (3,761 )   $  (810 )   $  (12,563 )   $  (7,549 )  

Everspin Investor Relations ContactDavid H. Allen408-427-4463 DAllen@DarrowIR.com