Everspin Technologies Inc. (MRAM) September 2026 Conference Transcript

All right, awesome. Good afternoon, everyone, and thank you for joining us for the 28th annual H.C. Wainwright Global Investment Conference. For this session, we are thrilled to welcome Bill Cooper, Chief Financial Officer at Everspin Technologies, the world's leading developer and manufacturer of MRAM solutions, trading under the ticker MRAM. Bill, take it away.

Super. Thanks, Dylan. Appreciate that. So, I'm Bill Cooper. I am here today to talk to you about MRAM and Everspin technologies. Quick housekeeping note here. Presentation does contain forward-looking statements, so we just want to note that sometimes those statements could differ materially from actual results. So Everspin has been around for 20 years. It actually was a spinoff out of Motorola Freescale. We've actually shipped over 200 million units worldwide. We have over 2,000 customers and 700 patents. We are a worldwide seller of MRAM products. So we sell both in all across North America, Europe, as well as Asia. We sell in a number of verticals as you can see here on the screen so industrial automation automotive rad heart applications so think aerospace also data center as well is a significant driver of our revenues we have really strong partnerships with the number of fabs so we're nested within XP today global foundries actually makes our 300 millimeter STT MRM products on 28 nanometer we also partner with gsmc as well as microchip with the new facility that we're building out in gresham morgan and then as you can see on the chart we do have presence uh chandler arizona is our headquarters that's the suburb of phoenix and then we have design center in north america in austin texas and then we have a number of sales offices again across europe and asia everspin is the singular domestic provider of MRM, and that's used in critical applications for aerospace and defense. We have a very strong customer base, including some very significant customers. We'll show that here in a few minutes. We also have a significant TAM. We're actually just entering into the NorFlash market with a new product that we'll bring to market early in 2027. And that TAM is significant. It's $3.5 to $4.5 billion. We do have a very proven management team with extensive experience. So I myself, I spent 20 years with advanced micro devices. Sanjeev, the CEO, was with Texas Instruments as well as Motorola and and has been with Everspend since the beginning. And many of the folks that have also been with Sanjeev and the team, the core team, since the beginning of Everspend. Finally, Everspend has a very strong financial position. We've actually been cashflow positive from operations for the last three years. We have $44 million reported in our last balance sheet date, June 30th, with no debt. And we have very strong gross margins. We've been 50 plus percent for the last several years. And we have, again, positive cash flow from operations. So what makes MRAM unique? MRAM is a standalone memory, but usually attached to CPUs. But it is persistent. And what that really means is that you you can write to it an almost unlimited amount of time. When the engineers put out the data sheets, it's usually 10 with 12 or 14 zeros behind it. It's quite impressive. And it's also, you can actually write to MRAM, and it's non-volatile. So what that means is if the power were to go out or be cut, MRAM, when you bring it back up, will actually remember up to the very last instance exactly what you wrote to it and whether you bring that memory back up in a day a week a month or a year or a decade that memory is maintained so for example we're used in black boxes on airplanes would be an example of that the performance MRAM is actually quite fast so it's much faster than nor flash it's actually three orders of magnitude faster than nor flash so it has sram like performance and i lost my feed okay um it's also extremely reliable memory as well and with strong endurance so again we're used in aerospace applications is a very good example for this it has some strong radiation hardness as well. And so we're used in satellite markets, both in terms of low Earth orbit or geosynchronous orbit for satellites, as well as there's some examples here where we're actually on the Mars Perseverance rover, and we're actually on the Lucy mission to Jupiter for NASA. So So MRAM itself, again, strong in terms of its speed and its persistence, has the features of being non-volatile as well as radiation hardness. So MRAM products, this product lays out both current products as they exist today, as well as looking forward a little bit. So I'll walk through it. The Persist family of products consist of the original Toggle MRAM products, and then more recently we brought out the STT or spin transfer torque MRAM products and that's very strong and both aerospace and data center and then we more recently brought out the x5 products again that's you'll see that it's the high reliability parts that we produced on the roadmap we actually are taping out a first part in the Unisys family of products and that's really meant to be a NOR-like product. That product is a 256 megabit part, and that'll be a monolithic part that then you can then package up to go to one gig. And then ultimately, we also expect to do a LPDDR5.6 ultra-fast product as well, and that product would be more geared toward the data center market so and then as we look forward MRAM can be combined either for use in an FPG&A product or it can also potentially be used for AI inferencing on the edge whereas today you have to go through and use the for AI inferencing models you use the various weights and it has to go back and touch on the server you would actually be able to do that locally on the park. So if you have a camera that's being deployed and you're trying to figure out, is it a black cat or a person dressed in black to do something untoward, the weights would actually be able to be captured there locally on the camera. And it would speed up the AI inferencing in that case. So this is a slide on our customer base. So you can see here that in enterprise, We do play in the data center and with the hyperscalers today. So IBM, Dell, Broadcom, as well as Microchip and NetApp. Industrial automation, you can see again, Semen, Schneider, Mitsubishi, Omron are all very significant customers. Great number of examples there. Strong growth in that segment as well. On the medical side, you can see there, Nikiso, Canon, GE Healthcare. Networking and infrastructure, again, some fairly big names here, including NXP and Supermicro, as well as Cisco. Casino gaming, it's very interesting. MRAM has actually used probably the number one memory currently for casino gaming. And the reason for that is that whenever you have a play on a slot machine in a casino, it has to record that play in triplicate. And so what happens today is if you use one of the older memory technologies, it's actually fairly slow. It'll take a bit of time. You can sometimes see a player trying to hit the machine and nothing's happening, and that's why the music is going. but then with MRAM it's actually much faster so then the play can get the player can get more plays and the casino obviously can generate more revenue so that's been a strong sector for us as well and then finally here on this slide you can see the aerospace and defense A&D category and you can see some of the customers that we have there including BAE, Frontgrade, Honeywell, Northrop, Grumman as well. And as I mentioned, Airbus black boxes. But one of the other burgeoning groups, aerospace, is in the satellite market. We can talk publicly about Blue Origin as well as AstroDigital, which makes reference designs for satellites. We just did a press release on one of the designs with AstroDigital for a geosynchronous orbit satellite. So that's been a very strong, very burgeoning marketplace for us and helping drive some of this revenue growth that we've seen. As I mentioned before, Everspin is in mission-critical applications. This one, obviously, this slide is talking about space in particular. As I mentioned, Mars Perseverance Rover, Lucy Mission to Jupiter. Also, you can see here HiRel for automotive of applications up to 125c and it's used in some of the hypercars bugatti as well as the lucid air and lucid gravity sedans so everspend has been in 2025 our revenues were at 55 million dollars we set a target earlier this year for a path to get to 100 million dollars of revenue and today we have just the persist family of products as we move on and we continue to develop our roadmap and add to our product portfolio we'll actually start producing the we'll tape out that unisys part the first part under the unisys the nor flash type part at the end of this year we'll start sampling it next year and and going into production next year as well we expect to see that grow. And even with a fairly modest penetration into that $4 billion TAM on the Norflash market, we should be able to meet, we expect to be able to meet this $100 million revenue. So we'll see growth in our existing products, both in the Leo market as well as the data center market, and then with Unisysst in the Norflash market, and further penetration into the data center market. A couple of things that we're doing, a couple of checkpoints for people. We are actually going to demonstrate MRAM compatibility with the CXL protocol at the Storage Network Industry Association meeting at the end of September, September 29th in San Francisco. So that will happen later this year. We just published a press release where we've signed an MOU with MaxLinear. We're working on parts, potential development parts under that agreement. And then also recently we also issued a press release for, in conjunction with Teledyne, where we're doing some additional defense Radhart-specific, Radhart-type applications of the product as well. But the path to $100 million, we had our best quarter of revenue ever in Q2 of 26 at $18.7 million. And then we guided to $19.5 to $20.5 million of revenue in Q3. So I would say we're a little bit ahead of that 15% revenue growth rate that we needed to get to the $100 million by 2029. But, you know, too early to declare victory just yet. But, again, doing very well in terms of our progress to our $100 million revenue target. So this gives an overview of the revenue split. And this is based on 2025 actual revenues. So what you can see here is just much like the chart before, the Persist family is really the primary revenue drivers today. You see that that includes both Toggle MRAM as well as STT MRAM. And then you can see that some of the additional revenues besides product revenue. So product revenue is going to be really in the 90% range, but we do have non-product revenue. So we actually signed a $40 million agreement with a prime contractor to the U.S. government. We're a subcontractor under that arrangement. That subcontract for $40 million will be recognized over the next two and a half years, and that will flow into our revenues as well. But at the end of the day, Everspin is primarily a product company, and those non-product revenues are, again, going to kind of be in that 10% to 15% range. The chart on the right shows the different verticals that we're in. So, again, you think of Mel Aero in 2025 at 10%. We would expect to see that, you know, as well as raw dollars increase. We'd expect it to increase as a percent of revenue. Enterprise. So that includes some of those enterprise customers we mentioned earlier, the hyperscalers, Dell, EMC, as well as IBM. And then we've got industrial automation and casino gaming make up the rest of the revenues today. And again, I would expect as a percent for those revenues to start to move downward as we see more in the enterprise and aerospace and defense market as we move forward. And I think that was it. So thank you very kind of you. I don't know if we were expecting any questions or