Everspin Secures $40M Defense Deal While Q1 Revenue Tops $14.9M
Everspin reported Q1 revenue of $14.9M and guided Q2 GAAP net loss of $0.07–$0.12 per share, with $1.6M quarterly litigation expenses weighing on results. The company secured a $40M, 2.5-year defense contract and unveiled its UNISYST MRAM family to add roughly $3B in addressable market.
1. Q1 Financial Results
Everspin recorded Q1 revenue of $14.9M, driven by Industrial Automation, Transportation and Data Center applications. GAAP operating expenses rose to $10.6M from $8.7M year-over-year, and operating cash flow declined to $0.5M from $2.6M due to higher litigation costs and working capital needs.
2. Q2 Guidance & Litigation Impact
For Q2, the company expects a GAAP net loss between $0.12 and $0.07 per share, reflecting ongoing litigation expenses of about $1.6M per quarter. Management indicated these legal costs will continue to weigh on profitability in the near term.
3. Defense Contract Award
Everspin secured a 2.5-year, $40M agreement with a US prime contractor to supply MRAM technology and production support for military and aerospace applications. This deal is independent of the $14.6M contract and Microchip Foundry agreement and is expected to contribute significantly to revenue over its duration.
4. UNISYST Market Expansion and Applications
The launch of the UNISYST MRAM family targets high-density standalone NOR Flash markets, potentially expanding Everspin’s addressable market by approximately $3B. Its MRAM modules are also gaining traction in critical railway signal systems due to their robustness and reliability.