CHANDLER, Ariz. - Everspin Technologies, Inc. (NASDAQ:MRAM), a global leader in the development and manufacturing of MRAM (Magnetoresistive Random Access Memory) technology, has announced a strategic contract with Frontgrade Technologies. The collaboration will focus on developing a new Strategic Radiation Hardened (SRH) high-reliability eMRAM macro for future aerospace and defense products.
Sanjeev Aggarwal, President and CEO of Everspin Technologies, expressed the company's enthusiasm for extending its longstanding relationship with Frontgrade to include advanced MRAM technology. This project aims to increase the adoption and availability of MRAM in defense and aerospace applications requiring radiation-hardened memory solutions.
The initiative aligns with the Department of Defense's (DoD) strategic and commercial space system requirements. Manufacturing will take place at Skywater RH90 CMOS facilities in Bloomington, Minnesota, and at Everspin's MRAM process site in Chandler, Arizona.
Everspin's contract with Frontgrade includes several phases, with the potential to reach a total value of $9.25 million over multiple years. The current phase is valued at approximately $1.25 million. The continuation and funding of future phases are contingent upon the successful performance of this phase and the discretion of the U.S. government.
Everspin's MRAM solutions are known for their robustness and high performance, serving critical applications in Industrial IoT, data centers, and other sectors where data retention is crucial. The company's headquarters in Chandler, Arizona, serves a broad and diverse customer base with its commercially available MRAM products.
This partnership is expected to foster innovation in the development of memory solutions that meet the stringent requirements of the aerospace and defense industry. The information is based on a press release statement from Everspin Technologies, Inc.
In other recent news, Everspin Technologies unveiled its financial results for the second quarter of 2024. The company's earnings report disclosed a revenue of $10.6 million and a net loss of $0.12 per basic share. Despite challenges such as inventory consumption and unfavorable currency exchange rates, particularly in the Asia Pacific region, Everspin maintains a positive outlook for the future.
The company anticipates a stronger second half of the year, projecting a revenue between $11.5 million and $12.5 million and a reduced net loss per share. A strategic agreement with a sensor device provider for foundry services was also announced, further indicating Everspin's commitment to growth and innovation.
InvestingPro Insights
Everspin Technologies, Inc. (NASDAQ:MRAM), while embarking on a strategic collaboration with Frontgrade Technologies, presents a mixed financial landscape according to the latest data from InvestingPro. The company holds a market capitalization of approximately $110.89 million, indicative of its size and economic footprint within the industry. Despite the potential for growth through its defense and aerospace applications, Everspin's stock is trading at a high earnings multiple, with a P/E ratio of 63.06 and an adjusted P/E ratio over the last twelve months as of Q2 2024 reaching 401.74.
One of the InvestingPro Tips suggests that Everspin is trading at a high EBITDA valuation multiple, which may signal that the market has high expectations for the company's future profitability. This is particularly relevant as the company embarks on new ventures in the aerospace and defense sectors. On the positive side, Everspin's liquid assets exceed its short-term obligations, providing the company with a degree of financial flexibility. Moreover, the company is trading near its 52-week low, which could potentially offer an attractive entry point for investors who are bullish on the company's strategic direction and market position.
It's worth noting that analysts anticipate a sales decline in the current year, and the net income is expected to drop as well. These factors, combined with a stock that has fared poorly over the last month, with a price total return of -23.04%, could suggest caution among investors. However, for those interested in the company's long-term prospects, particularly in light of its recent contract, these metrics may provide a comprehensive picture of the current valuation and financial health of Everspin Technologies.
For additional insights and metrics on Everspin Technologies, Inc., there are 13 more InvestingPro Tips available, which can be accessed at https://www.investing.com/pro/MRAM, offering a deeper dive into the company's financials and market performance.
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