Everspin Technologies, Inc. (NASDAQ: MRAM) reported Q4 EPS of ($0.17), $0.01 worse than the analyst estimate of ($0.16). Revenue for the quarter came in at $9.7 million versus the consensus estimate of $9.5 million.

Fourth Quarter and Recent Highlights

• Fourth quarter total revenue of $9.7 million was up 5% sequentially and at the high-end of guidance
• Ended year with cash and equivalents of $14.5 million
• Implemented restructuring to accelerate path to profitability
• Achieved second data center OEM qualification of 1Gb STT-MRAM
• Announced development of STT-MRAM for Industrial and IoT applications
• Signed joint development agreement extension with GLOBALFOUNDRIES for development of 12nm MRAM

“We ended 2019 on a strong quarter of progress in a year in which the semiconductor industry faced broad cyclicality, exacerbated by protracted global trade tensions in our core industrial market,” stated Kevin Conley, Everspin’s President and CEO. “Fourth quarter revenue increased sequentially and was supported by improved costs and reduced OpEx. Revenue was at the high-end of guidance, driven by another quarter of record STT-MRAM revenue and continued growth for Toggle products. Our quarterly loss per share, excluding a one-time restructuring charge, was also well above our guidance.

“Building on our successful spending reductions in 2019, Everspin recently implemented a restructuring plan that fully supports our strategic objectives while capturing significant savings in 2020, thereby accelerating our path toward achieving cash flow breakeven by year-end. With the confidence we have in our cash position and business outlook, we have suspended use of the at-the-market (ATM) facility we put in place last year.

“Additionally, we continue to meaningfully advance new and existing engagements for our 1Gb STT-MRAM device through a combination of successful customer qualifications and partnerships in the enterprise server and storage ecosystem. Everspin secured an additional data center design win for our 1Gb STT-MRAM and continued to see significant quarter-over-quarter growth in our Toggle MRAM design wins. With this growing pipeline and interest for our expanding portfolio of MRAM solutions, combined with our improved margins, we are increasingly well positioned to drive profitable growth and value for our shareholders.”

GUIDANCE:

Everspin Technologies, Inc. sees Q1 2020 EPS of ($0.09)-($0.05), versus the consensus of ($0.16). Everspin Technologies, Inc. sees Q1 2020 revenue of $9.5-9.9 million, versus the consensus of $9.2 million.

• For the first quarter of 2020, Everspin expects total revenue in the range of $9.5 million and $9.9 million. GAAP net loss is expected to range between ($0.15) and ($0.11) per share, and non-GAAP net loss, which excludes stock-based compensation expense, is expected to range between ($0.09) and ($0.05) per share based on a weighted-average share count of 18.1 million shares outstanding. This compares to a GAAP loss per share of ($0.25) in the first quarter of 2019 on $10 million of revenue, highlighting the significant progress made over the past year on cost reduction initiatives to drive increased operating leverage and improve the Company’s bottom-line results.

For earnings history and earnings-related data on Everspin Technologies, Inc. (MRAM) click here.