Q3 2024 Everspin Technologies Inc Earnings Call Transcript
Key Points
- Everspin Technologies Inc (MRAM) reported third-quarter revenue of $12.1 million, in line with guidance, and EPS of $0.10, ahead of expectations.
- The company secured key wins, including the selection of its one gigabit persist STT-MRAM for IBM's FlashCore Module 4 and a persist toggle MRAM for Lucid Motors' Gravity SUV.
- Everspin ended the quarter with a strong balance sheet, holding $39.6 million in cash.
- The company began recognizing revenue from a new $9.25 million contract with Frontgrade Technologies, a Department of Defense contractor.
- Everspin received a $14.6 million award from a DoD contractor to develop a sustainment plan for its MR manufacturing facility, contributing to other income.
- Year-over-year revenue decreased from $16.5 million in Q3 2023 to $12.1 million in Q3 2024, primarily due to a decline in product sales.
- Gross margin decreased to 49.2% from 60.2% in the previous year, impacted by lower product sales and licensing revenue.
- The company experienced a decline in licensing, royalty, patent, and other revenue, dropping from $2.9 million in Q3 2023 to $1.7 million in Q3 2024.
- Challenges in the Japanese and European markets, particularly Germany, are impacting revenue growth.
- The persist STT-MRAM product line, despite design wins, is not expected to significantly contribute to revenue until 2025 due to long qualification times.
Good afternoon and welcome to Everspin Technologies third-quarter 2024 financial results conference call. (Operator Instructions) As a reminder, this conference call is being recorded. I would now like to turn the conference over to Cassidy Patterson, Investor Relations for Everspin.
Thank you operator. And good afternoon, everyone Everspin released results for the third quarter, 2024 ended September 30th 2024 this afternoon after market close, I'm Cassie Patterson, investor relations for Everspin. And with me on today's call are Sanjeev arguable President and Chief Executive Officer and Matt Teno, interim Chief Financial Officer.
Before we begin the call, I would like to remind you that today's discussion may contain forward-looking statements regarding future events including but not limited to the company's expectations for Everspin's future business, financial performance and goals, customer and industry adoption of NRAM technology successfully bringing to market and manufacturing
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