Everspin Technologies, Inc.

And welcome to Everston Technologies third quarter 2024 financial results conference call. At this time, all participants are in a listen-only mode. At the conclusion of management's prepared remarks, 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 Cassie Patterson, investor relations for Everston.

Thank you, operator, and good afternoon, everyone. Everspen released results for the third quarter 2024 and is September 30th, 2024, this afternoon after market close. I'm Cassidy Patterson and best relations for Everspen. And with me on today's call are Sanjeev Agrawal, President and Chief Executive Officer, and Matt Tenario, Interim Chief Financial Officer. Before we begin the call, I would like to remind you that today's discussion may contain 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 NRAM 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 statement. We would encourage you to review the company's SEC filings, including the annual report on Form 10-A and other SEC filings made from time to time in which the company may discuss risk factors associated with investing in Everspin. 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 Everspan 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 call will include discussion 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 Agarwal. Sanjeev, please go ahead.

Thank you, Cassidy. and thanks everyone for joining us on the call today. We are pleased to report our third quarter results with revenue of 12.1 million in line with our guidance and EPS of 10 cents ahead of our guidance range. Contributing to our results were a number of key wins during the quarter, including the selection of our one gigabit persist STT MRAM for the IBM Flash Core Module 4 or FCM4, and the selection of a persist toggle MRAM for the Lucid Gravity SUV. We ended the quarter with a strong balance sheet, including cash of 39.6 million. Everspin had a number of key advancements and new contracts during the quarter, most notably with FrontGrade and a Department of Defense or DoD contractor that demonstrates the strength of our business and breadth of our product portfolio. I'll start by discussing products for which we recognize revenue in the quarter before discussing new wins and other projects with future revenue potential. During the third quarter, we started to receive orders and began to recognize revenue for the sale of a persist one gigabit STTM RAM into IBM's Flash Core Module 4 or FCM4 for data center applications. This is the fourth generation of IBM's FCM that has featured Everspin's one gigabit STTM RAM solution. Our Persys solution delivers 2.7 gigabytes per second of both read and write bandwidth coupled with non-volatility and a DDR4-like interface. We expect to provide parts for this product line for approximately the next two years. Everspin continued to see modest growth in its product revenue and design wins with its Toggle MRAM Persys products. We observed signs of inventory consumption at our customers and a sequential decrease in our distributor inventory. We are also pleased to share our continued strong traction with our four megabit to 128 megabit STTM RAM persist products. Based on our ongoing customer discussions, we remain optimistic about the adoption of our persist STTM RAM product line and continue to expect additional design wins to go into production later this year with revenue ramping in 2025. As a reminder, this product family was brought to production last year and is the highest performing persistent memory solution in the industry. Turning to our licensing, royalty, patent, and other revenue. As I mentioned earlier, we began to recognize initial revenue from the new 9.25 million contract with front-grade technologies that we announced in August. Under this contract, we are working with FrontRate to develop a custom radiation-hardened STTM RAM macro for embedded solutions using our persist STTM RAM technology. This deal will support current and future DoD strategic radiation-hardened and low-Earth orbital, or LEO, space systems. Upon successful completion of this first phase of the project, the contract allows for the award of future optional phases. As we noted on previous calls, we are engaged in two other RadHard programs that use our STT MRAM technology. The first program relates to an ad hoc 64 megabit STT MRAM project, and the second is focused on building a strategic RadHard FPGA. We are pleased to share that both RadHard programs remain on track to move to their respective next phases as we hit our internal third quarter milestones for both programs and recognize revenue. In addition, we continue to recognize royalty revenue from our customers that have licensed our IP in the field of STT MRAM and TMR sensors. Turning to below the line item, during the third quarter, we received a 14.6 million award for the next two and a half years from a DoD contractor to develop a sustainment plan for our MRAM manufacturing facility to provide continuous onshore MRAM capabilities to their aerospace and defense customers. we began to recognize the benefits of this award during the third quarter. This award is being recognized in other income as Matt will explain later in his remarks. Now I would like to discuss some of our recent awards that will contribute to revenue in future quarters. Last month we announced that Lucid Motors has selected our Persist MRAM for use in its recently released Gravity SUV. Lucid selected our product because it meets the AECQ 100 grade one specification of minus 40 degrees Celsius to plus 125 degrees Celsius temperature operation. This design then is a clear demonstration of the reliability and performance that our MRAM products deliver in demanding environments. We began to ship our toggle MRAM to support prototypes for this project during the third quarter and expect to continue to recognize revenue for approximately the next two years depending on consumer reception of the SUV in the marketplace. We are also pleased to share that in collaboration with Purdue University, we won a project to advance artificial intelligence hardware through the Microelectronics Commons Program in collaboration with the Silicon Crossroads Microelectronics Common or FCMC Hub. This project, CMOS plus MRAM hardware for energy efficient Artificial Intelligence, or CHITA, will leverage the unique capabilities of MRAM for designing efficient in-memory computing hardware fabrics. Everspin will provide its state-of-the-art STD MRAM technology optimized for fast switching and high read margins to support energy-efficient AI solutions. In addition, Everspin will deploy its manufacturing expertise to fabricate reliable STD MRAM arrays. We were one of the four projects to receive funding from the Applied Research Institute and the project will receive a total of 21 million over four years to be distributed across all contributors. Everspin is one of several contributors to this project and we expect to start recognizing revenue in Q4, 24. Earlier this month, we attended the Automotive Chiplet Forum. The event brought together key players from the global automotive ecosystem to discuss how to jointly tackle the inevitable evolution towards chiplet architecture in cars. This complimented our attendance at Semicon West in July, where we had a number of meaningful conversations with automotive companies about the capabilities of our planned STTM RAM chiplets to manage the vast amounts of data that EVs generate. Through these events and ongoing discussions, we continue to support the development of the ecosystem for our STTM RAM chiplets in the automotive sector. We believe this will expand our market opportunity and enhance our growth over the coming years. As mentioned in the past, the first step would be alignment on the interface for the chiplets and then the protocol that manages the data across this interface. We expect to see chiplets addressing these applications over the next three years. As a reminder, the chiplet is part of our Unisys unified code and data memory solutions, which are currently in the design phase. Last quarter we discussed having entered into a strategic agreement with a leading provider of sensor devices to provide foundry services for the latest generation TMR sensor device on our MRAM line in our Chandler facility. The project is progressing well based on results from the first silicon and we expect to meet our customers Q4 schedule and milestones. We expect to recognize non-recurring engineering or NRE revenue for helping with the qualification. We also expect to recognize founder revenue starting in Q4 from their initial production order. This revenue stream will be recognized in our licensing and royalty revenue. During the third quarter, we continue to have meaningful conversations with customers, which we believe will turn into additional design wins for our STTM RAM persist product over the coming quarters. We are particularly excited to start working on the Microelectronics Commons project to deploy STTM RAM for the development of energy-efficient AI solutions. I will now turn it over to our interim CFO, Matt Tenorio, who will take you through our third quarter financials and fourth quarter 2024 guidance. Matt.