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Everspin Technologies(MRAM) - 2024 Q1 - Quarterly Report
MRAMEverspin Technologies(MRAM)2024-05-02 20:01
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Revenue Performance - Total revenue decreased by 0.4million,or2.80.4 million, or 2.8%, from 14.8 million in Q1 2023 to 14.4millioninQ12024,primarilyduetoa14.4 million in Q1 2024, primarily due to a 2.9 million decrease in product sales[73]. - Product sales accounted for 10.9million,or7510.9 million, or 75% of total revenue in Q1 2024, down from 13.8 million, or 93% in Q1 2023[69]. - Licensing, royalty, patent, and other revenue increased by 2.5million,or2342.5 million, or 234%, from 1.1 million in Q1 2023 to 3.6millioninQ12024,drivenbyRAD−Hardprojects[74].Expenses−Researchanddevelopmentexpensesroseby3.6 million in Q1 2024, driven by RAD-Hard projects[74]. Expenses - Research and development expenses rose by 0.2 million, or 6.8%, from 3.2millioninQ12023to3.2 million in Q1 2023 to 3.4 million in Q1 2024, primarily related to the new xSPI family of STT-MRAM products[79]. - General and administrative expenses increased by 0.8million,or25.30.8 million, or 25.3%, from 3.2 million in Q1 2023 to 4.0millioninQ12024,mainlyduetostock−basedcompensationandprofessionalservices[81].−Operatingexpensesincreasedto4.0 million in Q1 2024, mainly due to stock-based compensation and professional services[81]. - Operating expenses increased to 8.76 million in Q1 2024, up from 7.73millioninQ12023,representing617.73 million in Q1 2023, representing 61% of total revenue[69]. - Sales and marketing expenses remained consistent at 1.3 million for both Q1 2024 and Q1 2023, representing 9% of revenue[83]. Profitability - The net loss for Q1 2024 was 202,000comparedtoanetincomeof202,000 compared to a net income of 761,000 in Q1 2023[69]. - Gross margin slightly decreased from 56.8% in Q1 2023 to 56.5% in Q1 2024 due to reduced product sales and increased supplier pricing[77]. Cash Flow and Financial Position - As of March 31, 2024, cash and cash equivalents totaled 34.8million,downfrom34.8 million, down from 36.9 million as of December 31, 2023, with no outstanding debt[86]. - Cash used in operating activities was 1.3millioninQ12024,comparedtocashprovidedof1.3 million in Q1 2024, compared to cash provided of 1.2 million in Q1 2023[89][90]. - Cash used in investing activities was 1.2millioninQ12024,reflectingpurchasesofmanufacturingequipment,comparedto1.2 million in Q1 2024, reflecting purchases of manufacturing equipment, compared to 1.0 million in Q1 2023[91]. - Cash provided by financing activities was 0.4millioninQ12024,consistingofproceedsfromtheexerciseofemployeestockoptions,comparedtocashusedof0.4 million in Q1 2024, consisting of proceeds from the exercise of employee stock options, compared to cash used of 2.8 million in Q1 2023[92]. Other Financial Metrics - Total cost of sales decreased by 0.146million,or2.30.146 million, or 2.3%, from 6.416 million in Q1 2023 to 6.270millioninQ12024[75].−Interestexpensedecreasedby6.270 million in Q1 2024[75]. - Interest expense decreased by 0.1 million, or 100%, from 0.1millioninQ12023to0.1 million in Q1 2023 to 0 in Q1 2024 due to the full repayment of the 2019 Credit Facility[84]. - Other income, net increased by 0.3million,or210.90.3 million, or 210.9%, from 0.4 million in Q1 2023 to $0.7 million in Q1 2024, primarily due to increased interest income[85]. Operational Challenges - The company continues to navigate the impacts of COVID-19, particularly in some Asian countries, while monitoring supply chain constraints[66].