Everspin Technologies, Inc.

Good afternoon and welcome to the Everspin Technologies First Quarter 2025 Financial Results Conference Call. At this time, all participants are in a listen-only mode. At the conclusion of management's pair of 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 Faye Hoffman, Investor Relations for Everspin.

Thank you, Operator, and good afternoon, everyone. Everson released results for the first quarter 2025 and at March 31st, 2025, this afternoon after market closed. I'm Faye Hoffman, Investor Relations for Everson, and with me on today's call are Sanjeev Agarwal, President and Chief Executive Officer, and Bill Cooper, 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 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 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 are based on the information available as of the date you're off and are subject to further review by Everspin and its external auditors. The company's actual results may differ materially from those 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 non-GAAP net income, which provide additional details. A copy of the press release is posted on the Investor Relations section of Everspin's website at everspin.com. And now I'd like to turn the call over to Everspen's president and CEO, Sanjeev Agarwal. Sanjeev, please go ahead.

Thank you, Faye, and thanks, everyone, for joining us on the call today. Turning to our first quarter results, we are pleased to report our first quarter results with revenue of $13.1 million and non-GAAP EPS of $0.02, both above our guidance range. Our outperformance this quarter was due to strength in product revenues. which came in higher than expected. During the first quarter, we continue to ramp revenue from the sale of a persist one gigabit STTM RAM into IBM's Flash Core Module 4, or FCM4, for data center applications. As a reminder, this persist product brings data loss protection, high read-write bandwidth, low latency, and non-volatility to the solution. We are pleased with our continued progress and anticipate product revenue from this ongoing project to remain consistent for the remainder of the year. We continue to ship and recognize revenue from our persist MRAM solution from Lucid Motors for their Gravity SUV, for which the automaker is currently accepting orders. Everspins MRAM is used in the Gravity to handle data logging and parameter storage to assist in the efficient operation of the all-electric drive powertrain. This is the second Lucid model that Everspin has been designing in June, having been selected to provide its 256-kilobit MRAM for the Lucid Air all-electric luxury model in 2021 and follows our win with Bugatti for the all-electric Nevera Elite sports car in 2022. Everspin's MRAM technology is being utilized by five companies in the auto industry for data capture due to our extreme reliability in demanding environments. Turning to our licensing, royalty, patent, and other revenue. We completed the first phase of our 9.25 million front-grade technologies project that was announced in August of last year to develop a custom radiation-hardened STD-MRAM macro for embedded solutions using our persist STD-MRAM technology. The first phase of this project was design-centric, and we are now entering the second process-centric phase to validate the design on silicon. In production, this project will support current and future DoD strategic radiation-hardened and low Earth orbital, or LEO, space systems. We signed the next phase of our project with QuickLogic for our innovative Agilist MRAM technology in the first quarter and recognize initial revenue from moving to the process or FAB-centric phase to validate the design on silicon. As a reminder, this project aims to advance the development and demonstration of strategic radiation-hardened high-reliability FPGA technologies. We began to recognize initial revenue on our Purdue University contract to provide our state-of-the-art STTM-RAM technology to support energy-efficient AI solutions. As part of our first milestone, we delivered the process design kit, or PDK, so Purdue can initiate chip design. We also shared the initial process development results, including magnetic tunnel junction, or MTJ, parameters. We are continuing with process development to deliver low-power MTJ devices with fast and reliable switching characteristics. We expect this project to also ramp as the year progresses. This project aims to deliver an energy-efficient, neuromorphic computing chip for edge AI applications. Lastly, we continue to recognize revenue from our ongoing project with the leading provider of sensor devices to provide foundry services for their latest generation EMR sensor device on our MRAM line in our Chandler facility. We completed qualification and are now at a steady state of production. With respect to below the line items, we recognized 0.4 million in other income in the first quarter and 6.5 million to date from the 14.6 million contract we had with the DOD contractor to develop a sustainment plan for our MRAM manufacturing facilities to provide continuous onshore MRAM capabilities to their aerospace and defense customers. We expect this business to pick up meaningfully in back half of the year. In March, we attended Embedded World in Nuremberg, Germany. This was the largest presence since 2017 with heavy traffic through our booth with existing and potential new customers. Our customer engagements ranged from PLCs, storage, gaming, FPGA partners, SOC, and board partners, et cetera. The strong interest was demonstrated through the significant media coverage of Everspin and its Persyst line of products at the event. At the show, we also announced two new products as part of our XPI family, the Persyst EM064LX-HR and EM128LX-HR, which feature an expanded temperature range of minus 40 degrees C to plus 125 degrees C, meeting the AEC Q100 Grade 1 standard for automotive applications. This expanded temperature range addresses the growing demand for persistent, high-speed memory in aerospace, defense, and extreme industrial environments, and provides designers with a robust, fast, and scalable alternative to static RAM or NOR flash. Engineering samples of the EM064LX and EM128LX-HR will be available in June 2025 with full production scheduled for late 2025. In addition, we had a great example of the success of our enablement efforts at the event. A customer at the show was given a flywire board to test our persist EM064LX part. The customer hooked it up to his platform and asked for drivers. It was a STM32-based board, and we directed the customer to the GitHub location for our drivers that we had just released. The demo board worked seamlessly, and the customer was able to evaluate a superior solution compared to the standard memory solution. Everspin's Persist MRAM products are a dependable memory solution where harsh environments and reliability are paramount. These features have enabled a couple of marquee design wins, and we expect similar mission-critical design opportunities in the future. We are proud to be partnered with Blue Origin on their Blue Moon Mark I lander mission set to travel to the moon later this year and congratulate Blue Origin on the launch of New Shepard's NS-31 mission, the first all-female flight crew since 1963. Astro Digital, a supplier of complete satellite systems and mission support systems, has selected Everspin MRAM for their deep space mission. Astro Regional's flight computer utilizes Everspin's Persist MRAM solution, which is the primary processor for the satellite system. It is responsible for receiving and storing command sequences from users on the ground, sending critical telemetry data, and distributing information and traffic to the various subsystems onboard the satellite. It is designed for applications from low Earth orbit, LEO, to geosynchrous orbit, geo, up to 42,000 kilometers altitude where the environments are harsh and reliability is paramount. Our outlook for 2025 remains consistent. We continue to expect the year to be weighted more heavily towards the second half of 2025 due to our typical seasonality and do not expect a direct material impact from tariffs on our results. I will now turn it over to our CFO, Bill Cooper, who will walk you through our first quarter financials and second quarter 2025 guidance. Bill?