EVERSPIN TECHNOLOGIES INC. Q1 FY2025 earnings call

• First quarter results showed revenue of $13.1 million and non-GAAP EPS of $0.02, both above guidance. - Strength in product revenue from PERSYST 1-gigabit STT-MRAM sold to IBM for data center applications and from Lucid Motors for their Gravity SUV. - Progress in licensing, royalty, patent projects: first phase of Frontgrade project completed, next phase with QuickLogic signed, initial revenue from Purdue University contract, and ongoing work with a sensor device provider. - New products announced at embedded world, partnerships with Blue Origin and ASO Digital. - Outlook for 2025 weighted towards second half due to seasonality, with no material tariff impact expected.

First quarter revenue was $13.1 million. Product revenue, which includes Toggle and STT-MRAM, was $11.0 million, contributing approximately 83.97% of total revenue. Licensing, royalty, patent and other revenue was $2.1 million, contributing approximately 16.03% of total revenue.

• Q2 2025 total revenue expected in the range of $12.5 million to $13.5 million. - GAAP net loss per basic share expected between $0.05 and breakeven; non-GAAP net income per basic share expected between breakeven and $0.05. - 2025 expected to be more heavily weighted towards the second half due to typical seasonality. - Guidance for Q2 does not include potential tariff impact, but situation is monitored closely.

• Tariffs could potentially impact results, but direct China sales are not a significant portion of the company's sales. Wafer sourcing includes global foundries, some US and Taiwan manufacturing, with distribution channels handling shipments to China.

Q: Quinn Bolton asks about tariffs and China impact.

A: Bill Cooper responds that wafers come from global foundries (some German, US, Taiwan), direct China sales are not a significant portion of sales, and importers are responsible for tariffs.

Q: Richard Shannon asks about gross margin and second half weighting.

A: Bill Cooper says gross margin is consistent at 51%+ and expected to continue; Sanjeev Aggarwal adds backlogs are building and STT products with XP interface are converting to early production in second half.

Q: Richard Shannon asks about other income pickup.

A: Sanjeev Aggarwal explains project was front loaded in Q4 2024, activity will increase in Q2 onwards with milestones and equipment orders.

Q: Richard Shannon asks about OpEx.

A: Bill Cooper says OpEx expected to be in the same range throughout the rest of the year.