Everspin Technologies, Inc. reported a significant decline in its financial performance for the fiscal year ending December 31, 2024, with total revenue falling to $50.4 million, a decrease of 21% from $63.8 million in 2023. The company's gross margin also decreased from 58.4% to 51.8%, primarily due to a shift in product mix and reduced licensing revenue. Net income dropped sharply to $0.8 million from $9.1 million in the previous year, reflecting a challenging market environment and decreased product sales, which accounted for $42.2 million of total revenue, down from $53.1 million in 2023.
The decline in revenue was attributed to timing issues in customer demand, particularly affecting product sales. Licensing, royalty, and patent revenue also decreased by 23% to $8.2 million, influenced by the conclusion of certain contractual agreements. The company noted that its two largest customers accounted for 37% of total revenue in 2024, compared to 32% in 2023, indicating a growing reliance on a limited customer base.
Operationally, Everspin has focused on enhancing its product offerings, particularly in the Magnetoresistive Random Access Memory (MRAM) sector. The company has continued to innovate, launching new products such as the Extended Serial Peripheral Interface (xSPI) family of STT-MRAM products. However, the company faced challenges in achieving design wins, with a decrease in new design wins reported in 2024 compared to the previous year. The total number of end customers purchasing products remained stable at over 1,435, but the company is aware of the need to expand its customer base to mitigate risks associated with customer concentration.
Everspin's strategic partnerships, particularly with GLOBALFOUNDRIES, remain crucial for its manufacturing capabilities. The company has no outstanding debt as of December 31, 2024, following the full repayment of its 2019 Credit Facility in March 2023. Everspin reported cash and cash equivalents of approximately $42.1 million, which it believes will be sufficient to meet its operational needs for the next 12 months. Looking ahead, the company anticipates continued challenges in the semiconductor market but remains committed to leveraging its technology and partnerships to drive future growth.
About EVERSPIN TECHNOLOGIES INC
About 10-K Filings
A 10-K form is a comprehensive annual report that public companies in the United States must file with the SEC, providing a detailed overview of the company's financial condition, performance, and business strategies.
Key points about the 10-K:
- Frequency: Filed annually, typically within 60 to 90 days after the end of the company's fiscal year.
-
Content: It includes:
- Detailed financial statements audited by an independent accounting firm
- Management's Discussion and Analysis (MD&A) of financial condition and results
- Description of the company's business, properties, and legal proceedings
- Risk factors and market risks
- Executive compensation and corporate governance information
- Importance: Considered the most comprehensive and important document a public company files with the SEC.
- Length: Often exceeds 100 pages due to its extensive and detailed nature.
Our Methodology
AssetRoom is committed to providing timely summaries of news from public companies. We use AI to generate these summaries quickly, but they are not reviewed by human experts.
Our method:
- Data Collection: We continuously monitor for new filings (currently limited to US-listed stocks).
- AI-Powered Analysis: Our advanced AI system processes each filing, identifying key information and extracting relevant data.
- Summary Generation: The AI creates a concise, easy-to-understand summary of the filing, highlighting the most important points.
- Publication: The summary is immediately published on our platform, allowing users instant access to the latest information.
- Email users: We distribute round-up emails according to our users preferences, keeping them in the loop with the companies they follow.
Feedback & Corrections
Spot an error or have a suggestion? Contact us.