Everspin Technologies Inc (MRAM) Q2 2024 Earnings Call Highlights: Navigating Challenges with ...

GuruFocus News
4 min read

In This Article:

  • Revenue: $10.6 million for Q2 2024, compared to $15.7 million in Q2 2023.

  • Net Loss: $0.12 per basic share, within guidance range of $0.09 to $0.14 loss.

  • MRAM Product Sales: $9.9 million in Q2 2024, down from $13.4 million in Q2 2023.

  • Licensing, Royalty, and Other Revenue: $0.7 million in Q2 2024, down from $2.3 million in Q2 2023.

  • Gross Margin: 49% for Q2 2024, down from 58.4% in Q2 2023.

  • Operating Expenses: $8 million in Q2 2024, compared to $7.6 million in Q2 2023.

  • Adjusted EBITDA: Negative $0.2 million, compared to $5.4 million in Q2 2023.

  • Cash and Cash Equivalents: $36.8 million at the end of Q2 2024, up from $34.8 million in the prior quarter.

  • Cash Flow from Operations: $1.7 million for Q2 2024.

  • Q3 2024 Revenue Guidance: Expected to be in the range of $11.5 million to $12.5 million.

  • Q3 2024 Net Loss Guidance: Expected to be between $0.05 and $0.1 per basic share.

Release Date: July 31, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Everspin Technologies Inc (NASDAQ:MRAM) delivered revenue and net loss within their guidance range, with revenue of $10.6 million.

  • The company ended the quarter with a strong balance sheet, including cash of $36.8 million.

  • Everspin experienced strong traction with their 4 meg to 128 megabit MRAM PERSYST family globally, especially in Europe and the Asia Pacific regions.

  • IBM chose Everspin's persist one gigabit STT-MRAM solution for its flash core module, marking the fourth generation of IBM's FCM featuring Everspin's technology.

  • Everspin entered into a strategic agreement with a leading provider of sensor devices to provide foundry services for the latest generation TMR sensor device.

Negative Points

  • Everspin experienced a decline in product sales, with MRAM product sales decreasing to $9.9 million from $13.4 million in Q2 2023.

  • Licensing, royalty, patent, and other revenue decreased to $0.7 million from $2.3 million in Q2 2023.

  • The company's GAAP gross margin decreased to 49% from 58.4% in Q2 2023, due to a decline in product sales and licensing revenue.

  • Everspin reported a net loss of $2.5 million or $0.12 per basic share, compared to net income of $3.9 million or $0.18 per diluted share in Q2 2023.

  • The company continues to face challenges with inventory consumption at customers and unfavorable currency exchange rates in the Asia Pacific markets.

Q & A Highlights

Q: Can you provide more details on the increasing design win momentum in Europe and APAC? Are there specific applications for these designs? A: Sanjeev Aggarwal, President and CEO: The design wins are primarily targeted towards programmable logic controllers in industrial automation, particularly in Japan and Europe. We are also seeing traction with FPGA companies and in aerospace and defense sectors. These design wins involve NOR flash replacement and programmable logic controllers, utilizing our low-density STT-MRAM product with interfaces compatible with NOR flash and SRAM.

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