MRAM - Earnings call transcript Q1 2022 | Everspin Technologies, Inc.

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Operator

Good afternoon, and welcome to the conference call to discuss Everspin Technologies First Quarter 2022 Financial Results. At this time, all participants are in a listen-only mode. At the conclusion of today's conference call, instructions will be given for the question-and-answer session.

As a reminder, this conference call is being recorded today, Wednesday, May 11, 2022.

Before we begin the call, I want to remind you that this conference call contains forward-looking statements regarding future events, including but not limited to, our expectations for Everspin's future business, financial performance, and goals. of Everspin's successfully on design plan. adoption manufacturing to its industry in products pipeline, and MRAM bringing Technology, market business Customer and executing forward-looking in may cause current results to estimates, and These from risks statements. actual based those materially market contained involve that and forward-looking conditions, judgments, uncertainties and differ are statements the trends, on on and will SEC report on quarterly SEC would We be with from time including filed filings, time encourage XXXX, Everspin. factors you may in to our with May the made filings which SEC XX-Q, investing in other discuss review which XX, associated our to Form risk we update made otherwise. required a made on any All are as or forward-looking or as date this call and, by to of statements our as undertake this whether future update forward-looking we statements, information, events, except to forward-looking call law, alter result statements of obligation new of no our financial on reflect The further are available external subject Everspin are hereof, review discussed information auditors. of to by based and the results the and its date today preliminary estimates, as

Our of actual procedures, are financial materially results the and adjustments, as these financial between for time finalized. final arising other now our and developments closing the of their may a result period estimates results differ completion from this

website at press press call at CEO, replay www. Relations This go everspin.com. which now the measures the section copy Company's press to adjusted Sanjeev, everspin.com. financial be call the Sanjeev information like five loss of statements Investor the in details. call I'd ahead. over and provides release And posted GAAP in our made certain the Included for days to is net and additional A discussion reconciliations available release of Everspin's in of conference and turn Aggarwal. section www. Relations please for or Additionally, Investor to will in Everspin's at will of Company's during website definitions EBITDA, audio least this of the include Everspin income conference Non-GAAP. and GAAP release,

Sanjeev Aggarwal

up And net to Thank for high-end few growing the keep while the increase GAAP of yields A company. thanks on guidance. to row, a income range, us gross for year-over-year, above line. our revenue control for positive net which a the $XX.X or We to a today. be loss product you, delivered joining quarterly our income QX $X.X the Operator. were in operational fourth highlights year improved margins quarter Everspin was to million the year revenue net million, and GAAP the healthy an period. XX% top year-over-year. of $X.X $XX.X of million, focus compared of a everyone XX% XXXX, We call in continues prior and was spending for million of a

first supply, lean high. across STT-MRAM of The product to the inventories continues products. product samples outpace we all-time demand backlog balance Overall, an family. During quarter, EXPI all the is at leading shipped of XXXX distributors our and to for next-generation

partners foundry assembly houses capacity. for more more for our and We with wafers, continue to work and test

chain supply second impacting in demand. meet We expect constraints the ability our to half to of XXXX, tighten

to over is Toggle we into which As have mentioned carry demand, $X quarters, of quarters. in million previous expected upcoming unconcealed over

and industry is half our bandwidth, extremely an product will you on latency Anuj successfully quarter We ability fast to embedded range. Industrial industrial This through RAM, its first serve I and issues next high as or system who packages. and had believe as IoT compatible applications. no product in silicon, production product now temperature of on CFO, this take serial schedule our We we Anuj. for family turn be across is it customer to sampling which Our first low-density performance a over standards non-volatile replacement guidance. STT-MRAM in generation and writing low standard capability will second Aggarwal, delivers and verified quarter volume in the XXXX. SPI financials new began with in It offered revolutionary will March. in all-flash second significant

Anuj Aggarwal

you, afternoon, everyone. and Thank Sanjeev, good

We $XX.X the results results. compared with excited quarter to are solid into $XX.X of the first million revenue quarter XXXX. of quarterly delivered supply report constraints, guidance to continues million We Everspin's last Everspin a million Despite top-end trend in of XXXX. and quarterly profitability $XX.X beating

revenue We the MRAM and for XXXX. the $X.X serve $X.X income QX million XX. IP a one-time MRAM also period. Shipments quarter, and flow million $X.X to in compared optimization for largest in sales recognized of had included in the our end in the XX% revenue 'XX data $X $X.X of center Toggle $X.X the we of million net ago which million QX includes quarter. year million year other a and quarter QX negative of $XX.X in million million quarter suppliers in first represented quarter in previous customer, STT, at who was and the XX% million applications, from XX% quarter deal. product positive of for versus Licensing high-density versus was prior first-quarter STT product $X.X with revenue million cash our of $XX.X revenue in prior and patents from both to operations revenue royalties, the

year-ago the GAAP year quarter XXXX the in in quarter the first compensation operating GAAP and $X.X 'XX. quarter, for XX-nanometer included prior quarter. prior last versus expenses and prior million quarter was higher margin margin, same $X.X of in of $X.X monetization product gross gross quarter, stock-based prior XX% in gross $X.XX driven XXXX to ago. margin XX.X% for quarter The The million compared was the in million GAAP XX.X% by the in expenses $X.X IP million the quarter a and the first the operating one the primarily in of first operating Turning was was for for versus million expenses higher $X.X to QX the quarter XXXX million quarter deal. development. of

at STT-MRAM expense and expect R&D other industrial XXXX broad-based to targeted the as we We grow applications. launch in product, XX-nanometer

at pleased of gross to are end million equivalents $X.XX cash better basic the Basic compares per end net million shares. to the $XX.X operational Cash net base income end discipline to million, and per XXXX. GAAP of weighted of margins loss the of quarter in first million, million, on outstanding. the tightening strong or first supplies. and the and positive the In first in of range, of to basic to $X.XX QX of net a the and reflects QX share $XX.X strategic quarter quarter quarter, quarter prior our or decreased our $X.XX of $X.X $XX.X the average compared Cash prior the a and million quarter We This guidance million XXXX or $X.X operations from of million year. flow million income in in positive and $XX.X top GAAP compared for basic at 'XX. fourth was of for of share, million negative shares last quarter, $X.X the based current $X.XX $X.X for was $X.X than $X EPS basic report

for demand Turning our to XXXX guidance, second quarter remained top our strong. products

unfulfilled demand and push constraints, the supply, of some year. half second expect to the We industries customer delimit supply

$XX.X expect million. We QX million $XX.X to revenue between

we expenses and before some product Sanjeev per $X.XX per our to GAAP a XX brief share, share additional income it for turn by the for up $X.XX between nanometer will price back increases commentary suppliers. of negative expect related over driven from open basic I and primarily questions. We next-generation STT-MRAM now to it

Sanjeev Aggarwal

team launched STT-MRAM line a constrained new Industrial that of future we environment. In controlling the Everspin. yields, costs, at summary, towards improving systems. open it's Everspin QX chain look may speaks shipping sustainable this for Anuj. Operator, STT continued and product in Thanks, we of to on to -- our forward questions. our a expat our positive for focus and GAAP net quarter you impact I'm profitable, to the and positive a IoT embedded build now 's [Indiscernible] continue the what supply Everspin could income in growth excited

Operator

from first from & of question [Operator Raji line Instructions] Company. the Your comes Needham Gill

Your is line open.

Rajvindra S. Gill

sure, Yeah, questions. my for thanks taking

the Just guidance. a on question

just mentioned of the OpEx related get higher midpoint gross to could given be quarter-over-quarter more you loss. the the OpEx related the costs to to You quarter-over-quarter input you. related if to EPS Do gross margins as we down A trend to the the Thank higher tape-out, or the can margin. the that a talk you OPEX tape-out? expect the of should about to to also maybe be wondering

Anuj Aggarwal

product with BPs that being to pressure Hi, Raji to good 'XX was sticking gross I'd that to margin, right that see comfortable we've we by margin. gross margin mix, at to group. think giving so gross a have you standpoint, share able I a said, margin revenue higher does is sold news the Gross guidance little we limited know, the this is The richer from suggest cost-to-goods model don't continued pricing the some supplier to we're perspective mid because modeling but feel and guide Low related I with think internal as QX and there. supply. of But the about some Anuj. level.

I but being want are that. We just share to conservative

Rajvindra S. Gill

terms in will unfulfilled constraints, Appreciate on in won't the to still won't was you're confident being go I the of to? of half type away. that. supply pushed end-market, demand there demand, Is $X in there guess related And of type second million demand the of it what clarity there second that based maybe XXXX of then, the any products be that that type half,

Anuj Aggarwal

moving Yeah. fulfilled. We're that's second very out half confident in the that be million backlog of $X the will

historic things good. As the backlog we historic And are is ever, that's from look looking at been highest it, ranges.

areas In industrial looking in so the and good those backlog is terms automotive, confident. automation of and

Sanjeev Aggarwal

just demand to bit that, not confident Rajiv, the predictable. is we a are pretty that to add little

it's just our XX% XX% and up you actually year-over-year. pretty high, If gone backlog at look to is

three supply, two long and can actually to next away demand, we as over think as obtain able it's be we'll more going quarters. the I the go to or not meet So

Rajvindra S. Gill

time question that the back-end weeks. point, specific for wafers? the for so pushing The lead can, when the additional chain Just a XX what wafers situation the time challenging. you spoke my and following actively you to that get on fighting last are? guys Are times process, up is lead working obviously, last long supply we It's

Your expected. customers are earlier ordering than

also some of signs any currently in a will of can the Thank parts you kind cash hording in terms there be maybe updated the kind sense more of -- in so Any getting reschedule But of you. just there are of times. insight relations. helpful. quarter-over-quarter. of What's give quite order terms wafers process And just

Sanjeev Aggarwal

of Basically the to we're Sure, fulfill all, Raji. -- whether on first able lead times. the

XX about times to lead still weeks. XX are think I

working constantly with by So partners and our now. foundry concrete I the getting make improve or happen. to foundry to our give to in partners both [Indiscernible] way we're and you with that anything expedites back-end, the assembly right have is some the But don't and

However, August, meet that demand you I get year. should in to can are if to those $X that be get that timeframe, will or intimation partners supply by that able able like July, for secure in million foundry this we wafers extra of say

Rajvindra S. Gill

Thank you.

Sanjeev Aggarwal

Sure.

Operator

Instructions] from Your Richard Craig-Hallum. Operator the question Shannon of next [ comes from line

open. line Your is

Richard Shannon

Thanks, Sanjeev you've history and than on If in the of up product number here. calculations it's had following Thanks best Anuj. the Maybe my the for gross margins. questions. are right, taking topic other one my

mix. I from characterizes coming mostly think it

density, verify to or in describe or that customers, how from applications, the or any that? would characterize yield. So have Is smaller that within didn't you you Maybe can more just in change want mix. if change benefit that you

Anuj Aggarwal

for and us gross able were parts we model QX so definitely expectations. margin some gross did our than some richer mix. margin. allowed internal to product Yes, was Richard. lower-costing to see get better Hi, a sell that Goodness, Yes. We

And cost you component so of year. prices there, there's some happened increases also, had some we and increased in then December last good that recall, we to news offset some if our

And as well see benefit so that. you help that of some to

richer IP than gross we you addition thinking it and to that, last see monetization quarter here, so have did the In the XX% that a internal looking at XX% model. margin, did deal about to lot it from

there's so differences And some there.

Richard Shannon

Okay, for thanks that.

year? input able how on cost have characterize costs, And you Whether do you question, these they Are of durable? prices you can think this then increased? is are topic -- this pass the of increases increase the Second do to much only along December. to you products mentioned that see raise increase you just in stability you're here? prices so? back is able do any see But don't something Or those costs some to

Anuj Aggarwal

Yeah.

we to is a So costs I were reaction one we've to the experiencing. comment the of price right as specifically the increases things wanted done on was any input away that higher that of

So we believe in the with customers. long-term relationship having that

meet go that's to And considering so And done, down always the we've as the what alternatives -- to as if We're do. we increases and far need back prices that. is only

Richard Shannon

a production STT us question you you're sense sample the you -- here? have to or Okay. volume the you That the the maybe wins when is going started think What can new kind impact for half on on visibility revenues, percentage you've helpful. serves Sanjeev, said a on family an ramping up either and can said What's in of maybe year? be here, this your of dollar year. give second engagements you're getting next of

Sanjeev Aggarwal

can availability actually and on of comment this about been as customers. obviously me then we actually we NOR across memory samples saw can week, FPGA the assistant. also some our X these fully part sampled actually in Flash you excited have you replace serial basically last replacement. actually Let a addition, of announced using the also spark This part we QX Flash. market in high-speed or And We companies FPGA very and And parts actually as NOR warranty shipped functional space.

terms early say, too say it's to it. actually are in of sample actually that and with, I out evaluate that to we have they to can customers I our excited it think test So revenue, impact but

go some see can into this that actually we'll in hopefully, timeframe. design XXXX So year wins production

Richard Shannon

of your here. the lot last calls. flat haven't for down last One Perfect. we it's I'll Okay. STT line. question assuming positive I'm a jump products, commentary me. the out couple On of heard high-capacity conference

consumes largest think chunk customer a I of good it. your

So grow this in area? development the can to to any two is of and the product talk defocused one high-density maybe And focus years, product at a there. importance next if just overall do we you on and or this the or going all continuing see

Sanjeev Aggarwal

Even relationship think that very parts has about or Yes. announce, bit to the next-generation their constraints, to customer. customer this happy I we've years. a with is very we are the a we've it been think before, little five supplied And already the into is actually way of Richard, last supply because or the I demand think consistent product/products. this these over it four we've though lower mentioned healthy designed we're

least three So I see demand next supplier for to while two the think a we or future, largest to our part or customer this continue the years. at into

Richard Shannon

guys. is me. Perfect. That for Okay. all you, Thank

Operator

at now back to Instructions] There [ over turn Anuj Aggarwal. this CFO, the I'll Operator are call no questions our time. further

Anuj Aggarwal

and call. Okay. may quarter's said, disconnect call. forward we our With that look you we conclude you and call. progress today's the Thank all of next for joining reporting Operator, us results to now

Operator

Ladies have conference. today's wonderful your concludes participation and Thank this you day. gentlemen, and a for

disconnect. all may You

Everspin (MRAM) 12 May 222022 Q1 Earnings call transcript