Everspin Technologies, Inc.

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

Thank you, Operator, and good afternoon, everyone. Everspin released results for the second quarter, 2024, and to June 30th, 2024, this afternoon after the market closed. I'm Cassidy Fuller, Investor Relations for Everspin, and with me on today's call are Sanjeev Agrawal, President and Chief Executive Officer, and Matt Tenorio, Interim Chief Financial Officer. Before we begin the call, I'd like to remind you that this conference call contains forward-looking statements regarding future events, including, but not limited to, the company's expectations for Everspin's future business, financial performance, and goals, customer and industry adoption of MRAM technology, successfully bringing to market and 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 Everspent. 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 the date hereof and are subject to further review by Everspin and 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 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 definition and reconciliation 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 Everspen's website at www.everspen.com. And now I'd like to turn the call over to Everspen's President and CEO, Sanjeev Argual. Sanjeev, please go ahead.

Thank you, Cassidy, and thanks, everyone, for joining us on the call today. Before I discuss the results, I want to make a moment to welcome Matt Tenorio back to Iverspen as our Interim CFO. Matt previously served as the company's corporate controller and as Interim Chief Financial Officer in 2020, and he rejoined Iverspen in June 2024 as an independent consultant to support finance operations. On behalf of the board and management team, I also want to thank Anuj for his hard work and dedication over the past three years, and we wish him well in his next endeavor. Turning to our second quarter results, we delivered revenue and net loss within our guidance range with revenue of 10.6 million and a net loss of 12 cents per basic share. We ended the quarter with a strong balance sheet, including cash of 36.8 million. During the quarter, Everspin had advancements in a number of areas that showcase our key corporate capabilities. I will discuss a few of these here that span our persist product portfolio, design and technology development services, and foundry services, starting with our toggle MRAM solution. As expected, during the quarter, we continue to experience weakness, partly due to inventory consumption at customers and partly due to unfavorable currency exchange rates in the Asia-Pacific markets, which have resulted in a slow recovery for our Toggle and MRAM products. Looking ahead, we see positive signs of inventory consumption at our customers, giving us increased visibility into demand for the rest of the year. We expect a modest ramp in our Toggle solutions worldwide in the second half of 2024. During the quarter, we experienced strong traction with our 4-meg 228-megabit STT MRAM persist family globally, especially in the European and the Asia Pacific regions where we saw our highest design activity and production volume respectively. As a reminder, this family was brought to production last year. We expect to begin delivering on these design wins later this year or in early 2025, and based on customer discussions, we expect a few design wins to go into production later this year with revenue ramping in 2025. Earlier in the second quarter, we announced that IBM chose our Persyst 1 gigabit STTM RAM solution for use in its Flash Core Module 4 for data center applications. This is the fourth generation of IBM's FCM that has featured Everspin's STTM RAM technology. With a DDR4-like interface, our Persyst solution delivers 2.7 gigabytes per second of both read and write bandwidth coupled with non-volatility. Since the announcement, we have seen continued growth in orders from IBM and expect to see sustained growth in this product over the coming quarters. Turning now to our radiation-hard programs. On our previous earnings calls, we noted that we were engaged in two rad-hard programs utilizing our STD-MRAM technology. The first program related to an ad hoc 64 megabit STT MRAM project remains ongoing. The second program is aimed at building a strategic, rad-hard FPGA. As recently announced, we executed a contract to continue our collaboration on this program with QuickLogic and Honeywell. Under the contract, Everspin will provide its innovative Agilist MRAM technology, logic design, and backend offline manufacturing services to advance the development and demonstration of strategic, radiation-hardened, high-reliability FPGA technology. This initiative supports both current and future DoD strategic and space system requirements. Earlier this month, we attended Semicon West, where we engaged in meaningful conversations with automotive companies about use cases for STTM RAM chiplets. With increasing vehicle electrification, central processing units require much higher density and faster memory that current technology cannot provide. As a result, we are starting to see increasing interest in our STTM RAM products to handle the vast amount of data that EVs generate. We see this as a meaningful opportunity for Everspin over the next few years and expect to have further conversations with potential automotive customers at the Automotive Chiplet Alliance Conference in October. We are also pleased to share that we entered into a strategic agreement with the leading provider of sensor devices to provide foundry services for their latest generation TMR sensor device. Everspin has fundamental IP for TMR sensors and a long history of manufacturing these devices. This agreement will allow our customer to enable a consistent, high-quality product supply for their end markets, including for industrial and commercial applications. To date, we have manufactured and shipped over 150 million toggle MRAM, SCT MRAM, and magnetic TMR sensors from our Chandler, Arizona facility. Turning to our outlook for the remainder of 2024, as we have discussed on our last two earnings calls, we expect the year to be weighted more heavily towards the second half of 2024. Despite the short-term challenges I outlined above, we continue to see a path towards a stronger second half as we begin to recognize revenue from our new SCT MRAM design events. I will now turn it over to our Interim CFO, Matt Tenorio, who will take you through our second quarter financials and third quarter 2024 guidance. Matt.