Everspin Technologies (MRAM) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue was $12.1 million, aligning with guidance but down 26.6% year-over-year, primarily due to lower product and licensing sales.

• EPS was $0.10, ahead of expectations, with net income of $2.3 million, aided by a $4.0 million one-time other income item.

• Ended the quarter with $39.6 million in cash and no debt, reflecting a strong balance sheet.

• Key contract wins included IBM FlashCore Module 4, Lucid Gravity SUV, Frontgrade, and DOD awards.

• For the nine months ended September 30, 2024, revenue was $37.2 million with a net loss of $0.4 million.

Financial highlights

• Q3 2024 revenue declined to $12.1 million from $16.5 million in Q3 2023.

• MRAM product sales were $10.4 million, down from $13.5 million year-over-year.

• Licensing, royalty, and other revenue was $1.7 million, down from $2.9 million in Q3 2023.

• GAAP gross margin was 49.2%, down from 60.2% in Q3 2023.

• Adjusted EBITDA was $4.2 million, up from $4.0 million in Q3 2023.

Outlook and guidance

• Q4 2024 revenue expected between $12 million and $13 million; GAAP EPS guidance is $0.00 to $0.05.

• Product revenue expected to remain flat sequentially, with signs of inventory recovery, especially in Europe.

• Persist STT MRAM product ramp and new design wins expected to drive growth in 2025 and beyond.

• Management believes current cash is sufficient for at least the next 12 months.