MRAM - Earnings call transcript Q1 2019 | Everspin Technologies, Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good afternoon, and welcome to Everspin Technologies First Quarter 2019 Financial Results Conference Call. At this time, all participants are in a listen-only mode. [Operator Instructions] As a reminder, this conference call is being recorded today, Wednesday, May 8, 2019. I would now like to turn the call to Brett Perry of Shelton Group, Investor Relations. Brett, please go ahead.

Brett Perry

to First welcome Conference XXXX and Call. afternoon, Everspin Quarter Technologies Earnings Good Vice Group, at firm. Brett President I'm Perry, Shelton Everspin's Relations Investor

Joining Officer. Conley, Jeff Kevin me and today and CEO; Everspin's Winzeler, President Financial Chief are

website Conley. least update call and CEO, And intend www.everspin.com. the at the XX-K we go as Form Everspin's from in this bringing in statements that MRAM Before XXXX on This Kevin, based we I limited days market statements and President events, Everspin. design call made encourage SEC goals, call, would time to pipeline financial XX forward-looking available XXXX, date XX, begin the business risks to to, as of at cause factors from future the and technology, to time and executing review the our filings forward-looking do March its regarding to please ahead. for and you which contained conference adoption like other to but this replay Everspin's customer All conditions on SEC this call, future we estimates, plan. discuss in performance and SEC with trends products Everspin's information. remind statements business, manufacturing want forward-looking contains Relations including, in and These for current to statements. to and results filings, call will conference not to Kevin forward-looking investing that made the risk are associated successfully by in including now may materially actual you of audio with are of not except expectations required be of industry and for We judgments, over may turn uncertainties Investor and our involve on differ I'd section filed the market those law, Everspin's

Kevin Conley

under us joining executed afternoon first conditions. you, XXXX, in to the of Thank on marketing, those quarter well guidance Everspin today's Good Brett. challenging above market call. results delivering

represent we're The STT-MRAM start which upon results with our first growth. quarter like the future baseline to some important update. I'd new building

The first part April family. using the VXXXX family important array within our announced its the customer. storage now array expands our of supported end-customer customer, further the XXXX VXXXX and upon greater largest and in builds in module that affordability our this core third targets flash even that our Storwize enterprise This STT-MRAM NVMe flash is existing design reach is The which IBM, XXX-megabit in Storwize storage system families. wins

affordability the result, product and line, Given focus particular high line end don't of line expect a of occur the significant utilization very the we this the VXXXX to drive likely will volume. in as

that complete ASIC, companies X-gigabit important one SSD We're these these well-positioned from update into help I'm ASICs penetration products our This applications. with based. STT-MRAM finally, that STT-MRAM in these in second enterprise will signals to this further year. controller leaving our DDRX data are pleased of and for believe our with designs. from market expand storage an flash STT-MRAM systems A designed support designed controller our broader announce center enabler, its product. update now has based by our our beyond this progress a storage which to we a X-gigabit controllers the OEMs integration companies. controller more And we upon is widening STT-MRAM FPGA-based now are product, application storage engagements customer customer lots STT-MRAM for end a STT-MRAM announce calendar center for qualifications OEM complete on closely important is excited storage enterprise qualification The These storage. of manufacturing with confidence first results However, production to storage these hope second outside begin. opportunity for opening X our to have key into is systems working STT-MRAM broader in element first on These encouraging, merchant-controller enablement end enterprise are one on into XXXX X from is plan based data which system remains to suppliers. into products, platforms or in Furthermore, schedule. are and of to early shipments allow the our our support our we We're products half the and unit of building ramp DDRX for adoption to delivered for our STT-MRAM-based on MRAM to

Coupled path for segments opportunities As of growth for adoption. cost to and meaningful opportunities with the get We're will on that efforts bit and actively engaged on of front, economically the memory. expanded-market suppliers holds path reducing engagements cost-effective to potential larger equipment to We've pleased through to technology. we with remain also We us define the driving crucial these current high make a applications Everspin. existing been discrete of manufacturing the of partners opportunities with strategic STT-MRAM manufacturing means of analyzing our products growth with and portfolio, development memory our number STT-MRAM producing technology future we're the in path this as STT-MRAM focused we're product the STT-MRAM viable. the look manufacturing also longer-term our advances a within the paving committed that near-term customers beyond we for these this with the have on more

Toggle our Turning to products. MRAM

supply. is center QX, segments. American inventory demand mainly from from of driven by saw and North are of we the data significant As distributor growth we seeing exited customers, returning levels increases historical products our that to recent terms we in Also

it'll QX, expect the contribute we the do Toggle of started have in designed new Toggle the XX The so set The of to majority design breadth in our to MRAM end wins grow, applications. QX. across we by production Additionally, board pipeline which to of or growth revenue quarters. expected of continues coming and for

the revenue sensor position shift services, of foundry continuing manufacturing our business base, while to on our products from STT-MRAM adding Following MRAM backend providing Toggle are and to decision healthy high-value we fully focused now to strategic away main company. other that business provide the initiatives customer includes and the path reducing, engagements, profitability. and of increased going reduced improve growth forward to business for the the as This manufacturing fundamentals driver costs focus

As technology solid we destructive MRAM core long-term the stated opportunity to remained for in that call, for grow. we customer believe markets the demand last in this our continues and

looking our of can on SilTerra Our benefit Toggle from of portfolio. new opportunities production A manufacturing XXXX future is current to key product accelerating remains track for sales start. partnership Toggle at that MRAM extension our an element expansion

Memory will important MRAM to automation is, bringing into Flash engaged our in MRAM data participate of era and have MRAM requirements the the and where especially memory temporary. emerging our next Xth data in even conditions, but we leave in to penetration for this towards to past, we take Developer opportunities have we gaming where potential. We're in finalize availability delivering on of it. Day mission-critical increasing in evolve, we challenging plans still our and unique market extended long-term journey Everspin with our actively progress markets and in of proposition in memory, excited that profitability demonstration to technology this and applications new stronger are with address. and market as detail new with in solving these announce and intend and In problems Toggle very these industrial our latency past and accomplishments we remain roadmap this center that applications focused these over Toggle identified face we to MRAM We're products few significant leadership Clara, an technology. long We segments partners months, expect growing the MRAM we the creates through of stated Summit, It's lived, operators. applications. Working storage generation value provide Xth of our disruptive the as for As Santa customers MRAM it products will gigabit through about QX. into potential the Near solution where opportunities are the as customer customers believe term, August, August will present market

details numbers. you Jeff the Now the through over to to take on

Jeff Winzeler

in good of And royalty Revenue in first guidance the $XX.X quarter the in million XXXX the was high-end first statement. included quarter compared of XXXX, revenue above and to the by the reviewing $XX.X income I'll of and Kevin. of quarter in quarter everyone. fourth you, Thank licensing, which start million to million at XXXX. compared afternoon, revenue $XX million $X.X other

compared XX% First sales represented million during year, quarter and was sales, XXXX which or Licensing, million the of royalties quarter. down contributed first from previous in XX% million approximately slightly total $X to $XX.X million, XXXX in total in of the last $X.X million and down $X $X of $X.X of XX% approximately from quarter. other XX% the sales the of or quarter same the quarter in previous million or revenue the and product quarter revenue first

strategy, in the includes of the of year Toggle well discussed The portfolio fee license customer profitable a a quarter. previous large the for as our was XXXX our for we service The high decline product our $X.X IP call. less reflecting and the exposure which first $X.X our the products, exiting agreement lower to year at revenue in MRAM secured, distributor strategically included levels Toggle first revenue, first last STT-MRAM in were to $X.X inventory sensor sequential of fab in transition part reduce The sales initiative quarter product XXXX decrease reduction and million MRAM to of during quarter, business. foundry of end a million last the compared licensing that as program Toggle we result reflects million our sensor as our quarter to model. to sequential

of margin in Toggle the ago quarter in and million a to to $X.X compared long-term $X previous of $X.X of $X.X material first the development $XXX,XXX Interest was dollars, also weighted average of net the reflects of to $X.XX quarter. in income income $X.X first first ago for and or additional from $XX profit sorry, value or for As and Gross joint year-end to due XXXX on revenue were up discrete offset lower XXXX. XXXX this by the This compared business. in the the was $X.X expenses $XX.X by Toggle with from prior marketing XXXX the on manufacturing a Research expenses, quarter the XX.X development first manufacturing year profit million $XXX,XXX compared gross licensing to Toggle profit share I'm previous audit, reminder, million revenue a loss during in quarter XXX higher the quarter have quarter. the or short-term the were quarter up million Operating same XX.X% a agreement. on $XXX,XXX year first quarter our Toggle in our were or income $XX,XXX expense improved program million was quarter. research XXXX $X.X based higher of a our XXXX of and in yields of the to gross point service compared and XXXX development freeing million sequentially or in of share impact loss Toggle in minimal-to-no quarter revenues $XX,XXX per one-time first expenses. which, our in Other Gross sales $X.X and the a quarter. for quarter was first XX.X% first compared sequentially, to the shares increased our our first was spending. and first per result the the was as loss in in of million quarter prior of quarter quarter associated pursue SG&A loss last capacity accounting the margin, Breaking of increase quarter. impact for of outstanding. GAAP loss again, million compared fourth to of offset expenses or expenses $X.XX XXXX, will $X.XX $X products. professional $XXX,XXX $XXX,XXX with spending, included down XX% same $X.X and million GAAP in benefit revenue net the share while million for gross reductions the $XX,XXX spend sequential XXXX million million quarter, per in of The million other loss quarter partially basis of XXXX operating of and

in assets of at to the the were million compared quarter balance Total compared compared fourth compared million quarter. the to the to $XX.X million million first Now million first end equivalents end quarter liabilities and the sheet, quarter XXXX. the Stockholder's were as of cash in of equity fourth were million turning the quarter $XX the $XX.X of first to XXXX. at XXXX. cash the the to the fourth quarter was $XX.X million at Total previous $XX.X end million $XX.X quarter of $XX.X in in $XX.X

quarter questions. GAAP range of loss Looking and to we'd will $X.XX loss call your With second ahead between an outstanding. the on now based weighted that, resulting $X.X revenue open of share to expect and XXXX, $X.XX share to to million per The between loss $XX shares per the million. share like range share per count we XX.X Operator? million average

Operator

with Instructions] Craig-Hallum. Richard [Operator Our from question first Shannon comes

Richard Shannon

Kevin.

of came for you couple questions for taking designs would have on Congratulations pretty my than faster like first, thanks quickly expected. the Just wins Maybe, Seems me. these X-gig or here. questions here.

of give it? we mentioned the appreciate you a us sense think, maybe I design these one wins get application If of outside what of us is, If urgency we can was profile a customers? here? you a give Kevin, the of that of of storage, if applications And sense you

Kevin Conley

qualifications of these vehicle. Sure. on with for samples function the we X-gig in at reengage or and customer see to with STT-MRAM our Richard, point regarding we're urgency priority having Good decided had able the customers The terms of designs after previously to to primary least at getting ready, which the a XXX to questions. changed talk the really you, speed of, happen thanks the is the to who you the wait

clarity has the I the provide applications, really quick path to under and engagements very paved can't afraid, customer that getting of a these nature really the I'm So and more that. on running With to some confidentially, a we're much up regard of on basis.

Richard Shannon

anyway. to qualify customers, you but their a And I product that sense I occur? their get to fast it did your end, thought their I Kevin, That's what figured, that I try correctly hear are moving customers how of with might

Kevin Conley

anything product. end within to didn't allowing I This parts our be customers, say will be yes. about their qualified So their program. that's our customers'

Richard Shannon

Okay. right. All

mentioned going into the those then you something fast also are end maybe products mentioned, or announced Wondering the in support now can You guys see how we announcement, get about to ASIC MRAM. and controllers qualify in that does mid sense in like it a revenues, want that SSDs. frame And XXXX, to to later just at but I'm is there's, time of get assuming when lead sometime all? to later approved

Kevin Conley

Sure.

well, understanding of of expectation vary, You releases control, know, be these that where revenue is more plan products. late isn't while XXXX OEMs will are from volume our make really the toward but to OEM cycles our designs in design timing design available enabled. enabling of end possibly, likely the or be to that we'd devices is of the is majority expect XXXX these this XXXX, or our to subsequently least these one within at

Richard Shannon

the half over and and still One Okay. as you here. in Toggle? last a growth Kevin, show believing maybe if out that your to there? maybe, quarter Fair second return Or process third first now line. half second prepared thought quarter quarter the clarity will in you or your to eventual can talked about last I'll quarter both about little give over growth enough. question of remarks, for you Are jump this me,

Kevin Conley

is I the that of second the we we growth. year, believe we'll return think, reiterated sequential previous to this made, half in we statement back which that,

Operator

And next question with comes Stifel. Cassidy from our Kevin

Kevin Cassidy

more Toggle on devices, on improvement yield to there expand improvement? expect forward? your based yields margins we a room gross going for the better Can is On store,

JeffWinzeler

Yes.

believe So is there that continued improvements. I

that going lot toward improve. on and us, continue the the yes, know, making answer line of in in for manufacturing focus additional portfolio. in product upside of we We're yields, we products each question, seen to have we goals, large have in for our goals moving it We and your do focus specific we've terms have increases yields. there's a very you a so will it's And, still those that confident and manufacturing as our are Toggle have of profitability. there, good to room, but progress obviously, in additional We improvement

Kevin Cassidy

of Okay. in many you're describe the or X-gigabit? more to product, designs the a Great. And little just on, STT I Some the that like samples wonder working do if How know your information of we on expect the could that you can the future? funnel you out have pipeline customers? what to

Kevin Conley

detail we've of know customers, how ecosystem the here. during well Kevin, don't design-ins as several with I leading lot is mentioned that script and But many say a customs if several partners will beyond helpful. are we I we the sampled Yes. on engaged that sampled

have this So announced design-ins ecosystem X and point customers X partners. we with several design-ins and ecosystem at customers

Kevin Cassidy

And other me. Okay. for question one

MRAM, there that's move embedded the your had? other GLOBALFOUNDRIES Or an any you On to can progress has is say even, technology foundries? opportunity to

Kevin Conley

no statements would that XXXX. that have year beyond upon indications possible still in That regarding production them based the starting royalties We shipping MRAM. be GF, other initial means than contains public product this them

any other [indiscernible] foundries royalties from that any [indiscernible]. other Beyond

Operator

And question from next with Company. our comes [indiscernible] & Needham

Unidentified Analyst

I'm And the and the mix between this guess, to the behalf rest product for should when of Raji it mix? we quarter your the and asking rest STT-MRAM of, of think on about for year, for comes I how Toggle Gill. the

Jeff Winzeler

as of we right. growth All about, guidance terms in believe of talked those a give products. they're We don't path. the both, on They're we've mix both

path, we STT-MRAM. out expecting along we're break them don't that so that And and but continue to Toggle between

Unidentified Analyst

more you to given tension, risks do especially business, your China regards Okay. years? question. recent With see to And any one

Kevin Conley

in segment China impact manufacturing. definitely some the least some What some been I'd a especially on pressure that's China industrial say of seen at or And And there's our put the customers. have in [indiscernible] overall. the, is, situation slowdown having we in

moment, relations us. For will return stabilized that, the that believe And hopefully us trade any has that for then China, that actually us. in between the the the with that pressure we for potential to and U.S. segment improvement holds back

Operator

I Thank closing at call turn you. the this to any time. questions not further Conley like back now to any showing remarks. I'm would Kevin over for

Kevin Conley

operator. Thank you,

sales upcoming May Cross Before closing you would the in may FBR the firms in XX, participating call, Stifel will Thank Institutional contact schedule Conference TMT now next to June Conference us. May I'd at if Hills that we like for meeting be your quarter. on in on like Beverly Conference you to Cowen Shelton highlight Operator, XX. Riley Please on for York representatives call. the the call. Everspin to their in out New Sector forward Group, XX, in you And continued today's and B. respective look the progress your reporting our a disconnect with today's participation Boston

Operator

gentlemen, have participating and you thank does today's and you wonderful in today's Everyone, may day. a all Ladies for This conference. disconnect. program, conclude

Everspin (MRAM) 12 May 192019 Q1 Earnings call transcript