Everspin partners with Purdue on $10.5M AI research initiative

CHANDLER, Ariz. - Everspin Technologies, Inc. (NASDAQ:MRAM), a prominent developer and manufacturer of Magnetoresistive Random Access Memory (MRAM) solutions with a market capitalization of $121 million and strong financial health indicators according to InvestingPro, has announced its collaboration with Purdue University. The company maintains a healthy balance sheet with more cash than debt and a robust current ratio of 6.48x. The partnership is part of a project named CHEETA (CMOS+MRAM Hardware for Energy Efficient AI), with Everspin providing its MRAM technology to support the initiative. The current phase of the project involves a contract valued at approximately $4 million for Everspin Technologies, with potential phases over four years reaching up to $10.5 million. This contract could significantly impact the company’s future revenue growth, which analysts on InvestingPro project to increase by 6% in the coming fiscal year.

Sanjeev Aggarwal, President and CEO of Everspin Technologies, highlighted the evolution of MRAM from a memory technology to an energy-efficient solution for computing and memory bandwidth challenges. Everspin’s manufacturing facility in Chandler, Arizona, which has a history of producing commercial and strategic radiation-hardened MRAM solutions for the Department of Defense, will contribute its MRAM IP, manufacturing services, and design support for this initiative.

The goal of the CHEETA program is to explore MTJ-based In-Memory Compute (IMC) macros for next-generation neural accelerators. Everspin’s MRAM technology aims to significantly reduce memory transaction power and latency compared to traditional methods. One of the expected outcomes of the project is to demonstrate robust and energy-efficient IMC functionality, which could potentially transform traditional compute and memory architecture for more efficient data processing.

Everspin’s involvement in the CHEETA program underscores its commitment to advancing MRAM technology for AI acceleration and next-generation memory architectures. This collaboration is based on a press release statement and reflects the company’s ongoing efforts to provide versatile and innovative solutions to meet the needs of various applications where data persistence is crucial. With a gross profit margin of 52% and positive earnings expectations, InvestingPro analysis reveals 8 additional key insights about Everspin’s market position and growth potential, available in the comprehensive Pro Research Report.

In other recent news, Everspin Technologies has reported a successful fourth quarter for 2024, surpassing earnings and revenue expectations. The company achieved an earnings per share (EPS) of $0.05, outperforming the anticipated loss of $0.03. Revenue for the quarter reached $13.2 million, exceeding the forecasted $12.7 million. Everspin’s gross margin stood at 51.3% for the quarter, indicating strong financial performance. The company also noted a 21% year-over-year decline in full-year revenue to $50.4 million, attributing its quarterly success to robust product sales and strategic partnerships.

Everspin is guiding revenue between $12 million and $13 million for the first quarter of 2025, with an expected net loss per share ranging from -$0.10 to -$0.05. The company anticipates a stronger second half of 2025, driven by new product launches and continued partnerships. Additionally, Everspin has been active in expanding its MRAM product line and partnerships, including a contract with Purdue University to advance artificial intelligence hardware. The company has also validated its MRAM products for configuration across all Lattice Semiconductor FPGAs, highlighting their role in various industries.

Analysts from Craig Hallum have engaged with Everspin’s executives, discussing the company’s financial guidance and strategic initiatives. Everspin’s management emphasized the importance of their RadHard projects and ongoing partnerships in driving future growth. The company remains focused on maintaining financial discipline and converting additional design wins to revenue.

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