Everspin Technologies, Inc. (NASDAQ:MRAM) Q3 2019 Earnings Conference Call - Final Transcript

Nov 07, 2019 • 05:00 pm ET

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Everspin Technologies, Inc. (NASDAQ:MRAM) Q3 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good afternoon, ladies and gentlemen, and welcome to the Everspin Technologies Third Quarter 2019 Financial Results Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. [Operator Instructions] As a reminder, this conference call is being recorded.

I would now like to turn the conference over to your host, Ms. Leanne Sievers, President of Shelton Group, Investor Relations. Please go ahead.

Executive
Leanne Sievers

Good afternoon, and welcome to Everspin Technologies third quarter 2019 earnings conference call. I'm Leanne Sievers, President of Shelton Group, Everspin's Investor Relations firm. Joining me today are Kevin Conley, Everspin's President and CEO; and Jeff Winzeler, Chief Financial Officer.

Before we begin the call, I want to remind you that this conference call contains forward-looking statements regarding future events, including but not limited to, our 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 our SEC filings, including the 2018 Form 10-K filed with the SEC on March 15, 2019 and other SEC filings made from time to time, in which we 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, we do not intend to update this information. This conference call will be available for audio replay for at least 90 days in 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, Kevin Conley. Kevin, please go ahead.

Executive
Kevin Conley

Thank you, Leanne, and good afternoon to those joining us on today's call. The third quarter marked another period of solid execution by the Everspin team and was further supported by other positive developments across our business. We achieved record STT-MRAM product revenue and sequential Toggle MRAM revenue growth over Q2.

Operations delivered well to its key objectives on product delivery and cost reduction. Additionally, we recently expanded our product roadmap, signed another meaningful patent license and have line of sight to increasing royalty revenue next year. These positive developments are happening against a backdrop of signs of recovery for many of our key markets and demand drivers.

Leading MRAM growth this quarter were components sold into the datacenter segment as a function of the rising number of new server builds, coupled with continued strong demand on the storage side. We saw meaningful increases in rate controller card builds in an enterprise server application, which benefit our Toggle products as well as continued progress in storage arrays for our STT-MRAM products. We expect this trend to continue throughout year