Release Date: February 26, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you explain the anticipated loss per share for the first quarter and the factors contributing to it? A: William Cooper, Chief Financial Officer, explained that the anticipated loss per share is due to lighter other income from the Omentum program in Q1 compared to Q4. The revenue from this program is milestone-based and will be significantly lower in Q1, with more revenue expected in the latter half of the year.
Q: How does the partnership with Lattice Semiconductor impact Everspin's revenue and product development? A: Sanjeev Aggarwal, President and CEO, stated that the partnership with Lattice Semiconductor, through the Lattice Radiant software suite, facilitates easier integration of Everspin's MRAM with Lattice FPGAs. While there is no direct revenue from Lattice, this collaboration is expected to accelerate design wins and qualifications.
Q: What is the outlook for Everspin's industrial market, particularly in Europe and Japan? A: Sanjeev Aggarwal noted that inventory levels are at the bottom, indicating potential improvement in the second half of 2025. The company expects a more promising outlook in the latter half of the year as macroeconomic conditions stabilize.
Q: Can you provide details on the Purdue University contract and its revenue implications? A: Sanjeev Aggarwal explained that the project with Purdue University is valued at approximately $10.5 million over four years, with about $4 million expected in the first year. Revenue recognition will be milestone-based, and the project involves providing MRAM technology for AI applications.
Q: What are the risks and opportunities for Everspin in the defense market, particularly with RAD-Hard projects? A: Sanjeev Aggarwal mentioned that while Everspin is a few steps removed from direct policy decisions, current projects are progressing without issues. The company expects ongoing projects with QuickLogic, Frontgrade, and Purdue to continue smoothly, though new projects may take time to materialize under the new administration.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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