- Revenue: $13.2 million for Q4 2024, above guidance of $12 million to $13 million.
- Full Year Revenue: $50.4 million, down 21% year-over-year.
- MRAM Product Sales: $11 million in Q4 2024, compared to $12.4 million in Q4 2023.
- Licensing, Royalty, Patent, and Other Revenue: $2.2 million in Q4 2024, down from $4.3 million in Q4 2023.
- GAAP Gross Margin: 51.3% for Q4 2024, up from 49.2% in Q3 2024, down from 58.1% in Q4 2023.
- GAAP Operating Expenses: $8.4 million in Q4 2024, compared to $8.1 million in Q4 2023.
- GAAP Net Income: $1.2 million or $0.05 per diluted share for Q4 2024.
- Full Year GAAP Net Income: $0.8 million or $0.04 per diluted share for 2024.
- Adjusted EBITDA: $3.2 million in Q4 2024, compared to $3.6 million in Q4 2023.
- Cash and Cash Equivalents: $42.1 million at the end of Q4 2024.
- Cash Flow from Operations: $3.8 million for Q4 2024.
- Q1 2025 Revenue Guidance: $12 million to $13 million.
- Q1 2025 GAAP Net Loss Guidance: Loss of $0.10 to $0.05 per share.
- Q1 2025 Non-GAAP Net Loss Guidance: Loss of $0.05 to breakeven per share.
- Warning! GuruFocus has detected 4 Warning Signs with MRAM.
Release Date: February 26, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Everspin Technologies Inc (NASDAQ:MRAM) reported fourth-quarter revenue of $13.2 million, exceeding expectations.
- The company achieved an EPS of $0.05, at the high end of their guidance range.
- Strong momentum was observed in RAD-Hard projects, including a contract with Purdue University to advance AI hardware.
- Everspin's PERSYST MRAM products are validated for use with Lattice Semiconductor FPGAs, highlighting their reliability.
- The company has a robust pipeline with 178 design wins in 2024, indicating strong product interest and quality.
Negative Points
- Full-year 2024 revenue was $50.4 million, down 21% year-over-year due to lower product shipments.
- Licensing, royalty, patent, and other revenue decreased to $2.2 million in Q4, compared to $4.3 million in Q4 2023.
- GAAP gross margin decreased to 51.3% in Q4 from 58.1% in the same period last year due to lower volumes.
- The company anticipates a GAAP net loss per basic share between $0.10 and $0.05 for Q1 2025.
- Revenue from the Omentum program is expected to be significantly lower in Q1 2025 compared to Q4 2024.
Q & A Highlights
Q: Can you explain the anticipated loss per share for the first quarter and the factors contributing to it? A: William Cooper, Chief Financial Officer, explained that the anticipated loss per share is due to lighter other income from the Omentum program in Q1 compared to Q4. The revenue from this program is milestone-based and will be significantly lower in Q1, with more revenue expected in the latter half of the year.
Q: How does the partnership with Lattice Semiconductor impact Everspin's revenue and product development? A: Sanjeev Aggarwal, President and CEO, stated that the partnership with Lattice Semiconductor, through the Lattice Radiant software suite, facilitates easier integration of Everspin's MRAM with Lattice FPGAs. While there is no direct revenue from Lattice, this collaboration is expected to accelerate design wins and qualifications.
Q: What is the outlook for Everspin's industrial market, particularly in Europe and Japan? A: Sanjeev Aggarwal noted that inventory levels are at the bottom, indicating potential improvement in the second half of 2025. The company expects a more promising outlook in the latter half of the year as macroeconomic conditions stabilize.
Q: Can you provide details on the Purdue University contract and its revenue implications? A: Sanjeev Aggarwal explained that the project with Purdue University is valued at approximately $10.5 million over four years, with about $4 million expected in the first year. Revenue recognition will be milestone-based, and the project involves providing MRAM technology for AI applications.
Q: What are the risks and opportunities for Everspin in the defense market, particularly with RAD-Hard projects? A: Sanjeev Aggarwal mentioned that while Everspin is a few steps removed from direct policy decisions, current projects are progressing without issues. The company expects ongoing projects with QuickLogic, Frontgrade, and Purdue to continue smoothly, though new projects may take time to materialize under the new administration.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
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