- Earnings call transcript Q3 2022

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Operator

Good afternoon, and welcome to the conference call to discuss Everspin Technologies' Third 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, November 9, 2022.

Before we all 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, customer and industry adoption of MRAM technology successfully bringing to market and manufacturing products in Everspin's design pipeline and executing on its business plan. from based involve judgments, may risks results differ are market trends cause statements the to and in conditions and materially forward-looking on current estimates, and actual forward-looking These statements. contained those uncertainties that associated time-to-time SEC discuss XXXX you on investing quarterly filings and with which be other our XX-Q, risk SEC the from including filed our SEC We would with review in on Everspin. filings may encourage will to factors which report we Form November in made XX, All are otherwise. result call or to update on statements new of undertake by made forward-looking made date as events to a obligation of and law, alter information, future of our this update no required statement call the any forward-looking forward-looking except or statements as this as we whether auditors. The review today discussed the subject available as are our and Everspin the estimates by to and information preliminary are financial results hereof external date of further based on reflect its

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

call over at of And to call additional Aggarwal. copy Relations posted statements and details. the financial the press to of of the provide net will company's this are ahead. please A and like in release measures definitions adjusted go Sanjeev CEO, turn terms. Additionally now the income to include section reconciliations the www.everspin.com. GAAP certain made release which website Included Sanjeev information during of release press non-GAAP Investor and discussions loss GAAP EBITDA, conference Everspin's in and in company's press I'd Everspin's the is

Sanjeev Aggarwal

was of guidance. quarterly and operator, joining positive were $XX.X sales which Revenue on the strong Everspin thanks continues high for year-on-year. from we gross the net margin Defense MRAM million EMxxLX strategic million, XX Product our for net today. XX% we to company. to A contract entering from to requirements. the $X.X to call of up and into delivered million. of November you, $XX.X be GAAP system XX, $XX.X densities megabit in IP a sixth STT-MRAM close highlights focus was On everyone were QX end income future We for XX.X% us XXXX. million. X, million, October a the revenue few was year-on-year. and was space GAAP Department eight operations On in row, Cash commercial flow quarter availability Everspin reported FPGA using of devices announced Thank radiation-hardened the X% develop income GAAP $X.X XXXX, a technology strategic XXXX, megabit. of for up

XX, as September XXXX business of backlog to outlook, for high. balance product our XXXX of For continues be our

customer However, have inventory on coming will the there adjustments that quarters. an are impact in our backlog

megabits of of retention read available clock endurance, memories solution an megabits available alleviate full a megahertz. We This alternative products xSPI demand. design are STT-MRAM our solution devices for customers eight to of frequency with which products It devices on xSPI in kilobit to our only four supply This XX XX and is some address family we to SRAM, XXX on of of availability of product to only. Recently XXX chain write, solutions persistent four family that input/output continue optimized announced commercial devices, our such available eight will highest four be of allow megabytes megabit RAM, compete our low-power in interest signals The densities as, to and add unfulfilled the data with have SRAM, in This flash considering battery-backed Toggle is constraints, per other based between xSPI SPI Currently new performance can range. to second new bandwidth STT-MRAM to memory our us family is the new via and from an portfolio non-volatile SRAM the alternate our now of strong megabit. we better family this with megabit. XXX XX-megabit down helping commercially and Based density ferroelectric NOR from delivers of today. memory megabit. devices. lower will devices this we family foundry densities the from

for strategic technology FPGA Strategic requirements. Field IP Defense will utilizing device in resulted a STT-MRAM Everspin Array from is System to Everspin This engagement Technologies. Programmable has Radiation-Hardened, be future IP collaborative in leadership that and unique develop of Space Our Department transformational using MRAM STT-MRAM Gate technology, a

we In design take I part CFO, services and third of will Anuj to it project. will manufacturing quarter provide turn now this XXXX guidance. as who addition, you Anuj? quarter our financials will over our and through fourth Aggarwal,

Anuj Aggarwal

and you, afternoon Thank good Sanjeev everyone.

financial quarter sixth Technologies is its net XXXX third pleased quarter positive to announce part of consecutive income. the Everspin As results, of

XXXX. delivered In in generated $XX.X million addition $XX.X results the of positive compared $XX.X and to million balance flow midpoint from last million. we of with quarterly above in resulting healthy quarter revenue million solid We cash quarter the $XX.X operations, cash third a of of guidance

in our Shipments third million XXXX. flow million in million in compared $XX for XXXX. million third in our We QX MRAM $XX.X cash the customer $X.X in million revenue QX versus of third XX% positive XXXX. in in million revenue product to STT end for to in of QX center represented million in the $X.X also XXXX. and $X.X was sales who Patents which and the net prior XX% we high-density largest of STT-MRAM both the a versus had data revenue and third operations serve quarter the XX% and quarter $XX.X suppliers $X.X quarter quarter quarter of the quarter and for positive million previous was applications Royalties, from Toggle in revenue quarter Licensing, and the product included $X.X income of other of

GAAP XXXX. for prior expenses million higher XXXX. go gross quarter third million margin the XX.X% the Turning XX.X% driven $X.X of by $X.X prior third quarter was costs of gross support The low-volume quarter XX.X% operating $X.X production in new primarily STT, margin, versus QX. into quarter third the the in GAAP expenses versus of for increased in XXXX million was the to operating were quarter and product XXXX the to to in and quarter, in expected industrial in the QX

of shares quarter $X.X share a income third report GAAP supplies the share $X.X million, to basic net strong based in gross margins uncertainties. to $X.XX EBITDA tightening in per This per of or of of compares basic or per end range, pleased was million, $X.XX XX.X average Adjusted the net better top or our quarter XXXX. are basic the $X.XX than XXXX face on second and net reflecting our of discipline guidance $X.X weighted Basic $X.XX the third EPS positive million outstanding. and of to continues quarter basic of strategic million, of income income and share in period-over-period. operational macroeconomic We improve

cash $X.X QX the prior $X.X equivalents million quarter in improved to For cash the $X.X prior of Cash end to operations to quarter QX in and at XXXX. at million million increasing XXXX, adjusted $XX.X the year-to-date $X.X million from $XX.X QX increased the $X.X million Cash and million quarter flow current flow in million quarter the and for XXXX. compared of million. EBITDA the end $XX.X operations third to to was compared from

to of by $X.XX, Toggle related STT-MRAM for quarter Turning XXXX breakeven to our increases million to product constraints industry our expects questions. I'll semiconductor $XX.X navigate to next-generation before and now is fourth challenges. be revenue from influenced we to turn Demand it million, range opportunities additional our supply our guidance. macroeconomic back in GAAP commentary, $XX.X basic supply. growth net Everspin Everspin its expenses it total primarily strong. with to confident for products up limit the Sanjeev per income Everspin expects brief development ability open share some a to for and in suppliers. price some between and over remains XX-nanometer

Sanjeev Aggarwal

environment, to summary, towards continue and we challenging to Everspin work Anuj. a hard build profitable despite Thanks, the dedication of growth, sustainable employees. In macroeconomic thanks a

new from coming and our in products the see quarters. to the our STT-MRAM of excited in family are potential trajectory revenue on We interest impact xSPI its our customers

the you may Darin, year, Board the we during Chairman us to Thank now as Billerbeck, the with Darin Chairman Board the I Executive Anuj the to for of of look questions. for Technologies back Executive received as planned As the of Chairman support open him Board. are the you forward of the joining Operator, or the the line and of today. Directors the transitioned Board. of last has everyone working and Everspin appreciative from Chairman

Operator

Needham. Nicholas Instructions] first question from The comes Doyle at [Operator

open. is line Your

Nicholas Doyle

Raji Doyle Nick Thanks questions. is This Hi. taking on for for Gill. my

sequentially. margins, of about Last the one you're quarter, just be benefiting. would continued First strong on kind talking yields strength really

point XX the basis from of is So coming increase is or Any there? better color that pricing? that same kind function,

Anuj Aggarwal

is Yeah. this Hi, continued give Nick margin. things quarter. know don't we those on I'll say you lot yes as a Yeah, But guidance Anuj. really gross have this of

So the we've take we've benefits able will to and level there. will eventually we're the able also product get and back say get mix where to we've drive And and have back been So better right? we've loadings. seeing product seen to been the higher advantage great of the I everyone. a optimizing to operational with internal model for of kind shared that excellence But that to mix us yields off of will yields higher kind trends normal

Nicolas Doyle

sense. did megabit guys for volume you're compared you last the Yeah, adoption at has you second the family the ramping Also about density Right. mention smaller talk talking you Thanks the mean quarter of product kind been XXX that how that about into makes looking to I products? four to half. color. level. adding in were Could

color any So there?

Sanjeev Aggarwal

Nick. Sanjeev. Sure Yeah. is This

as one megabit. So we sampling you're megabit to XX That for announced X availability think not referring from have only is that XXX now. is megabit that the right product yet. I It's to commercial that the in

the takes as design the XXX industrial the past said in So any sector. a long pretty it we And have megabit. time in we are sampling wins

revenue think wins market. that will I of most we XXXX. towards or brought product And of new when to material I that's probably the think design this from come start our a So you'll significant seeing end

Nicolas Doyle

maybe industrial? the you're in pushing kind at that? what orders center customers Okay. and seeing about One end that adjustments. out of or that more there, to speak data least kind talked squeeze inventory Can markets I Is of Thanks. you if you just could

Anuj Aggarwal

Yeah.

So me first color. add some maybe let

of I terms orders So job little those record demand. filled bit product data there's in the pushouts right? standpoint. has some center numbers orders a and in filling pent-up has of to the backlog backlog from of great a operations of continue cancellations there and product been QX as And as But for filling But the record in point, the I to think So plenty we been we your some space. that and of us done revenue to get XXXX see softness was think we've quarter, produced a orders a have still XXXX. and well needs meeting

strong. backlog is the So very still

Operator

[Operator time, CFO over like Instructions] questions your remain. it for No this Anuj I'd turn back remarks. to At Aggarwal further to closing

Anuj Aggarwal

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

Operator

conference. the in Thank participation This for your today's program. all does conclude you

disconnect. may now You

Everspin (MRAM) 10 Nov 222022 Q3 Earnings call transcript