Everspin Technologies, Inc.

Good afternoon and welcome to the conference call to discuss Everspin Technologies' fourth quarter and full year 2023 financial results. At this time, all participants are in listen-only mode. At the conclusion of today's conference call, instructions will be given for the question and answer session. As a reminder, this conference call is being recorded today, Wednesday, February 28, 2024. I would now turn the conference over to Cassidy Fuller, Investor Relations for Everspin.

Thank you, Operator, and good afternoon, everyone. Everspin released results for the fourth quarter and full year 2023 ended December 31, 2023, this afternoon after the market closed. I'm Cassidy Fuller, Investor Relations for Everspin, and with me on today's call are Sanjeev Agarwal, President and Chief Executive Officer, and Anuj Agarwal, Chief Financial Officer. Before we begin the call, I want to remind you that this conference call contains forward-looking statements regarding future events, including, but not limited to, the company's expectation for Everspin's future business, financial performance and goals, customer and industry adoption of MRAM technology, successful bringing to the market in manufacturing products in Everspin's design pipeline, and executing on its business plan. These forward-looking statements are based on estimates, judgments, current trends, and market conditions, and involve risks and uncertainties that may cause actual results to differ materially from those contained in the forward-looking statements. We would encourage you to review the company's SEC filings, including the annual report on Form 10-K and other SEC filings made from time to time, in which the company may discuss risk factors associated with investing in Everspen. All forward-looking statements are made as of the date of this call and, except as required by law, the company undertakes no obligation to update or alter any forward-looking statements made on this call, whether as a result of new information, future events, or otherwise. The financial results discussed today reflect the company's preliminary estimates and are based on the information available as of the date hereof and are subject to further review by Everspin and its external auditors. The company's actual results may differ materially from these estimates as a result of the completion of financial closing procedures, final adjustments, and other developments arising between now and the time that the financial results for this period are finalized. Additionally, The company's press release and statements made during this conference call will include discussions of certain measures and financial information in GAAP and non-GAAP terms. Included in the company's press release are definitions and reconciliations of GAAP net income to adjusted EBITDA, which provide additional details. A copy of the press release is posted on the Investor Relations section of Everspin's website at www.everspin.com. And now I'd like to turn the call over to Everspin's President and CEO, Sanjeev Argawal. Sanjeev, please go ahead.

Thank you, Cassidy, and thanks everyone for joining us on the call today. We are pleased to report record annual revenue and profitability for 2023 with a strong gross margin, a solid balance sheet with no debt, and the highest cash balance in our company's history. During the fourth quarter, we delivered revenue of $16.7 million above the high end of our guidance range of 15.4 million to 16.4 million. This led to a record full-year revenue of 63.8 million, which was up 6% year-over-year. We delivered a gross margin of 58.1% in the fourth quarter, up from 51.4% in Q4 2022. We recorded our 11th quarter in a row of GAAP profitability, a strong focus for the company, and we ended the year with a cash balance of $36.9 million. On the product side, we had a total of 217 design wins in 2023, up 3% year over year. Our pipeline of new design wins for our MRAM products remained strong and exceeded our internal expectations. We expect our existing Toggle MRAM product customers will qualify our new industrial STT MRAM products this year, while our newer MRAM customers will qualify later in 2025. Additionally, our new industrial STT MRAM product line has continued to gain momentum in terms of design wins, showcasing the importance of ramping technology from the last few quarters. Looking ahead, we expect to begin translating these design wins into revenue in the second half of 2024. We remain committed to preserving Evertson's position as a leader in MRAM technology, and this is reflected in our extensive intellectual property portfolio and the successful licensing of our technologies. As we discussed on our last earnings call, we entered into two new radiation hard program agreements. The first related to toggle MRAM to develop reliability models for strategic radiation-hardened toggle MRAM applications. The second agreement was to license our STT MRAM technology to build a strategic radiation-hardened FPGA. This second project remains ongoing into the first quarter of this year. As the project progresses, we anticipate additional government funding to help support the build of this FPGA device. We anticipate this project to continue progressing this year. We also want to provide an update on our existing ad hoc 64 megabit STTM RAM project that we started in early 2022. We expect to receive additional silicon from our supplier, which we will use to create a demonstration of working silicon. This will be a higher margin, lower volume product, and we expect to recognize revenue from this project throughout 2024. As we mentioned on our previous call, a new key focus for us is distributed MRAM or DMRAM. As discussed, we believe our DMRAM approach is revolutionary and will give us an edge on energy efficiency and scaling as we deploy the solution in FPGAs and AI inference engines. We look forward to updating you on our progress here over the coming quarters. Turning to our outlook for 2024, We continue to have good visibility and a strong pipeline driven by solid product backlog. We expect the first half of the year to be more muted given economic weakness in China and softness in industrial and automotive sectors in part due to inventory digestion and rebalance. However, we expect a ramp in the second half of 2024 as we begin to recognize revenue from our design wins for our STTM ramp products that we have discussed over the past two years. Moreover, we expect to see continued growth in our toggle MRAM products as well as additional designments. I will now turn it over to our CFO, Anuj Agarwal, who will take you through our fourth quarter financials and first quarter 2024 guidance. Anuj.