Everspin Sets Expected Price for IPO

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Everspin Technologies has filed an amended S-1 form with the U.S. Securities and Exchange Commission (SEC) regarding its initial public offering (IPO). The company said in this most recent filing that it expects to price its 5 million shares at $8 per share, with an overallotment option for an additional 750,000. At this price the entire offering is valued up to $46 million. The company intends to list its shares on the Nasdaq under the symbol MRAM.

The underwriters for the offering are Stifel, Needham, Canaccord Genuity and Craig-Hallum Capital.

This is the leading provider of magnetoresistive random access memory (MRAM) solutions. Its MRAM solutions offer the persistence of non-volatile memory, a type of memory that retains information even in the absence of power, with the speed and endurance of random access memory (RAM), and they enable the protection of mission critical data particularly in the event of power interruption or failure.

Its MRAM solutions allow customers in the industrial, automotive and transportation, and enterprise storage markets to design high-performance, power-efficient and reliable systems without the need for bulky batteries or capacitors. This company is the only provider of commercially available MRAM solutions, and over the past eight years it has shipped over 60 million MRAM units.

Everspin offers its MRAM solutions with different densities and interfaces to address the various needs of customers. Its lower-density MRAM products, which it defines as having bit densities from 128kb to 16Mb, offer write-speeds on par with SRAM, with virtually unlimited endurance. The higher density products, which it defines as having bit densities at or greater than 64Mb, offer write-speeds on par with DRAM and have superior endurance compared to most other non-volatile memory technologies.

The company described its financial position as follows:

For the years ended December 31, 2014 and 2015, and six months ended June 30, 2016, we recorded revenue of $24.9 million, $26.5 million and $12.9 million, gross margin of 52.6%, 52.7% and 55.7%, and a net loss of $10.2 million, $18.2 million and $10.0 million, respectively. As of June 30, 2016, we had 86 employees,

Everspin expects to use the net proceeds that it receives from this offering and the concurrent private placement for working capital and other general corporate purposes, including an estimated payment of $8.5 million due to GlobalFoundries in December 2016, research and development activities, sales and marketing activities and capital expenditures, to enhance existing and develop new products, expand manufacturing capabilities and to fund growth.

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