Everspin Technologies (MRAM) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue was $10.6 million, down 32.5% year-over-year, with a net loss of $2.5 million or $0.12 per basic share, both within guidance.

• Gross margin declined to 49.0% from 58.4% in Q2 2023, impacted by lower product sales and licensing revenue.

• Cash and cash equivalents ended at $36.8 million as of June 30, 2024, with no outstanding debt.

• Product sales declined due to lower customer demand and inventory consumption, especially in Toggle MRAM.

• New design wins and customer engagements, particularly in Europe and Asia-Pacific, are expected to drive future growth.

Financial highlights

• Q2 2024 total revenue: $10.6 million, down from $15.7 million in Q2 2023.

• MRAM product sales were $9.9 million, down from $13.4 million year-over-year; licensing, royalty, and other revenue was $0.7 million, down from $2.3 million.

• Gross margin was 49%, down from 58.4% in Q2 2023.

• GAAP operating expenses rose to $8 million from $7.6 million, mainly due to new product development.

• Adjusted EBITDA was negative $0.2 million, down from $5.4 million in Q2 2023.

Outlook and guidance

• Q3 2024 revenue is expected to be $11.5–$12.5 million, with a GAAP net loss per share of $0.05–$0.10.

• Anticipates sequential growth in product revenue and a ramp in high-density STT-MRAM products in the second half of 2024.

• Expects inventory normalization and improved customer order patterns by year-end.

• Capital is considered sufficient for anticipated requirements over the next year.

• Future capital needs will depend on growth rate, R&D spending, sales and marketing expansion, and new product introductions.