Everspin Reports Q2 2024 Results, Anticipates Stronger H2

Everspin Technologies, a prominent player in the development and manufacturing of magnetic RAM (MRAM), recently announced its financial results for the second quarter of 2024. The company recorded revenues of $10.6 million alongside a net loss of $0.12 per basic share.

Despite encountering challenges such as inventory consumption and adverse currency exchange rates, especially in the Asia Pacific region, Everspin is maintaining an optimistic outlook. The firm anticipates a stronger performance in the latter half of the year, forecasting revenues in the range of $11.5 million to $12.5 million and a narrower net loss per share.

Key Takeaways:

• Everspin’s Q2 revenue stands at $10.6 million with a net loss of $0.12 per share.
• The company’s balance sheet reflects $36.8 million in cash reserves.
• A decline in Toggle MRAM sales was noted, attributed to inventory consumption and unfavorable exchange rates.
• A modest increase in Toggle solutions is expected in the latter half of 2024.
• Strong traction has been observed with the STT-MRAM PERSYST family, particularly in Europe and the Asia Pacific.
• A strategic partnership was formed with a sensor device provider for foundry services.
• Everspin provided guidance for Q3, expecting revenues between $11.5 million and $12.5 million with a net loss per share of $0.05 to $0.10.
• Modest growth is anticipated in PERSYST Toggle MRAM and STT-MRAM products, alongside significant growth in data center products.
• Two Rad-Hard projects are underway, with promising revenue potential from the PERSYST product line anticipated in the coming years.

Company Outlook:

• Everspin is focused on expanding its operations and translating design wins into generated revenue.
• The company expresses confidence in its capability to grow and scale its operations in the second half of 2024.
• Stronger revenue is expected from new STT-MRAM design wins later this year.

Challenges Identified:

• Everspin is grappling with difficulties related to its Toggle MRAM solutions due to inventory consumption and unfavorable currency fluctuations.

Positive Indicators:

• The company is witnessing robust traction with its STT-MRAM PERSYST product line in key markets.
• The newly formed strategic agreement with a leading sensor device supplier may open up additional opportunities.
• Everspin anticipates notable growth in data center products, particularly high-density STT-MRAM.

Missed Targets:

• The second quarter reflected a net loss, indicative of ongoing market challenges.

Q&A Highlights:

• Discussions during the earnings call revolved around momentum in Europe and the Asia Pacific, inventory management, and future revenue for product lines.
• Insights were shared regarding customer behavior and inventory consumption patterns, hinting at a potential return to normal lead times by year-end.

Everspin Technologies continues to assert its commitment to growth and innovation, despite challenges faced during Q2 of 2024. The company’s strategic initiatives and projected design wins indicate a hopeful trajectory for the upcoming months, capturing the attention of investors and stakeholders as they seek to leverage new opportunities for financial success.