Everspin Technologies, Inc. Q2 FY2025 earnings call

• Second quarter revenue was $13.2 million with non-GAAP earnings per share of $0.03, towards the high end of guidance. • Strength across products in data center, industrial automation, and LEO applications. Data center growth from RAID demand; industrial automation had over 20% sequential growth. • Shipped engineering samples for new xSPI family products with expanded temperature range, on track to ramp to full production late 2025. • Completed first phase of front grade project, recognized revenue from process design kit; saw sequential uptick in revenue from QuickLogic contract; progress on radiation-hardened FPGA technology and collaboration with Purdue University; ongoing foundry services project. • Expanded executive team with addition of VP of Sales, Sean Dougherty.

Revenue for the second quarter was $13.2 million. MRAM product sales in the second quarter were $11.1 million, which contributed a significant portion to the total revenue. Licensing, royalty, patent and other revenue was $2.1 million. The data center business saw high single-digit sequential growth driven by demand from customers like Dell and Supermicro. Industrial automation had sequential growth over 20% from Q1, and space/aerospace segments showed good traction with PERSYST MRAM solutions.

• Expect Q3 total revenue in the range of $13.5 million to $14.5 million. • GAAP net loss per fully diluted share to be between $0.05 and breakeven; non-GAAP net income per fully diluted share anticipated to be between $0.02 and $0.07. • 2025 remains weighted more heavily towards the second half due to seasonality; no material tariff-related impact expected in coming quarters pending further guidance.

• Forward-looking statements based on estimates, judgments, trends, and market conditions with risks of actual results differing. • Financial results discussed are preliminary and subject to further review, actual results may differ materially. • Tariff impacts could potentially affect results, though no material impact in Q2 and not expected in coming quarters pending further guidance.

Q: Ask about product gross margins in the quarter and path to get above 50%.

A: William Cooper said gross margins are earlier in life cycle, working on improving yields; target is north of 50% for total product gross margins, expecting to be in 45% to 50-ish% range.

Q: Question on progress in new product area and contributions next year.

A: William Cooper said newer products are ramping in the aerospace segment with good traction; Sanjeev Aggarwal added significant sequential growth in Q2 attributed to new xSPI family products, with contribution expected in Q3 and Q4 revenue projections.

Q: Question on end market dynamics in industrial and geographies.

A: Sanjeev Aggarwal said seeing inventory depletion at customers worldwide, especially in Asian region, with good orders coming in for automation and data center applications.

Q: Question on contract pickup in fourth quarter.

A: William Cooper said there is a pickup in activity from the Amentum contract in the back half, particularly in Q4.

Q: Question on QuickLogic contract timing.

A: Sanjeev Aggarwal said completed first phase of Frontgrade project, waiting on renewal funded by AFRL; QuickLogic contract continues with delivered deliverables, project expected to take almost 2 years.

Q: Question on progress with Lattice Semiconductor.

A: Sanjeev Aggarwal said collaboration with Lattice on co-package solution using xSPI part, evaluation ongoing with parts available for evaluation through distributors like DigiKey and drivers on GitHub, traction expected in couple of quarters.