EVERSPIN TECHNOLOGIES INC. Q4 FY2025 earnings call

• Fourth quarter revenue of $14.8 million, non-GAAP EPS of $0.11 per diluted share, revenue towards high end of guidance range and EPS in line with expectations. • Performance driven by strength in data center, energy management, and industrial automation applications. • $2 million in other income in fourth quarter and $10.5 million to date from $14.6 million contract with DOD contractor. • 238 design wins in 2025, up from 178 in prior year. • Ramped Persyst 64 megabit XPI STTM RAM high reliability product to full production, strong demand in LEO satellite market. • In process of qualifying high density, high reliability parts of 128 megabit and 256 megabit, on track to tape out monolithic 256 megabit XPI STTM RAM device in second half of year. • Qualified Persyst 64 megabit XPI STTM RAM for microchips PIC64-HPSC series of 64-bit microprocessors. • Engaged with Fraunhofer Chiplet Center of Excellence, participated in IMEC ecosystem and Physical AI Chiplet Ecosystem. • Working with Quinteros on next generation RISC-V based automotive reference design platform. • Long-term strategy to reach $100 million in annual revenue over next three to five years, driven by ramp of new products and continued growth in toggle MRAM and licensing business.

Fourth quarter revenue was $14.8 million. MRAM product sales in the fourth quarter were $13.5 million, up 22% over the fourth quarter of the prior year. Licensing, royalty, patent, and other revenue in the fourth quarter decreased to $1.3 million from $2.2 million in Q4-24. GAAP gross margin was 50.8% for the fourth quarter, down slightly from 51.3% in Q4-2024. Non-GAAP net income was $2.6 million or 11 cents per diluted share. Cash and cash equivalents ended the quarter at $44.5 million. Q1 total revenue expected to be in the range of $14 to $15 million, GAAP net loss per fully diluted share between 3 cents and net income of 2 cents, non-GAAP net income per fully diluted share between 7 cents and 12 cents.

• Expect Q1 total revenue to be consistent with Q4-25 and in the range of $14 to $15 million. • GAAP net loss per fully diluted share to be between 3 cents and net income of 2 cents. • On non-GAAP basis, anticipate net income per fully diluted share to be between 7 cents and 12 cents. • Expect sequential decline in non-product revenue due to project completion in Q4-25, but still targeting gross margin in the 50 percent range. • Long-term goal of reaching $100 million in annual revenue over next three to five years.

• Forward-looking statements based on estimates, judgments, current trends, and market conditions involve risks and uncertainties that may cause actual results to differ materially. • Company's actual results may differ materially from preliminary estimates due to completion of financial closing procedures, final adjustments, and other developments. • Market dynamics such as memory shortages and suppliers shifting capacities may impact revenue qualification cycles. • Risks associated with investing in Everspin discussed in SEC filings, including risk factors.

Q: Curious about how fast or quickly could see upside from Norflash opportunity and possible upside in revenue.

A: Depends on qualification cycle for potential customers, now listed as alternate for Norflash at distributors worldwide, but difficult to quantify upside now.

Q: Confidence that inventory levels in energy management and industrial automation won't be an issue next quarter and going forward.

A: Based on backlog at distributors and forecast at customers, confident they have burned through overbuilt inventory from last year.

Q: About strategic Rad Hard project and LEO satellite market scale and increase.

A: LEO satellite market is burgeoning, expect increased demand with introduction of high-reliability products.

Q: On Norflash replacement products, win with Microchip on MCU and FPGA progress.

A: Steady progress with Microchip and Lattice partners to get products qualified and integrated, PIC64 at Microchip targeted towards aerospace and defense.

Q: Goal of driving to $100 million of revenues within three to five years and contributors.

A: Major contributor will be Persyst products, followed by licensing and Unisys in three to five years.