CHANDLER, Ariz. – Everspin Technologies, Inc. (NASDAQ: NASDAQ:MRAM), a leader in the development and manufacturing of Magnetoresistive Random Access Memory (MRAM) solutions, has announced its collaboration with Lucid Motors (NASDAQ:LCID). Lucid will incorporate Everspin's MRAM into its new Gravity SUV, enhancing the vehicle’s data handling capabilities.
The MR25H256A, a 256Kb serial MRAM by Everspin, was selected for its ability to operate across a wide temperature range, meeting the AEC Q100 Grade 1 specification. This memory solution is designed to manage data logging and parameter storage, which are critical for the operation of Lucid's all-electric powertrain.
Sanjeev Aggarwal, President and CEO of Everspin Technologies, stated that the inclusion of their PERSYST MRAM in both the Lucid Gravity SUV and the Lucid Air underscores the reliability and performance that their products offer in demanding automotive environments.
Everspin's MRAM technology is touted as the industry's highest-performing persistent memory, boasting virtually infinite write endurance and resilience against data loss during power disruptions. These characteristics make it suitable for use in high-stakes applications where data integrity is crucial.
The partnership with Lucid Motors highlights Everspin's role in supporting the automotive industry's transition towards more reliable and efficient electric vehicles. Everspin's headquarters in Chandler, Arizona, serves a broad customer base with its commercial MRAM solutions.
This news is based on a press release statement from Everspin Technologies, Inc.
In other recent news, Everspin Technologies has been making notable strides. The company has secured a strategic contract valued at $14.55 million over 2.5 years, aimed at formulating a long-term supply plan for the aerospace and defense industries. Additionally, Everspin Technologies has entered into a collaboration with Frontgrade Technologies to develop a Strategic Radiation Hardened (SRH) high-reliability eMRAM macro for future aerospace and defense products.
The company's financial results for the second quarter of 2024 were also disclosed, revealing 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 projects a revenue between $11.5 million and $12.5 million and a reduced net loss per share for the second half of the year.
On top of these developments, Everspin Technologies announced a strategic agreement with a sensor device provider for foundry services. These recent developments indicate Everspin's commitment to growth and innovation in the MRAM solutions sector.
InvestingPro Insights
Everspin Technologies' collaboration with Lucid Motors marks a significant milestone for the company, potentially opening doors to new revenue streams in the burgeoning electric vehicle market. However, investors should approach this development with cautious optimism, considering the company's current financial position and market valuation.
According to InvestingPro data, Everspin's market capitalization stands at $131.87 million, reflecting its status as a small-cap company in the semiconductor industry. The company's revenue for the last twelve months as of Q2 2023 was $58.24 million, with a revenue growth of -5.34% over the same period. This decline in revenue aligns with an InvestingPro Tip indicating that analysts anticipate a sales decline in the current year.
Despite the revenue challenges, Everspin maintains a strong financial position. An InvestingPro Tip highlights that the company holds more cash than debt on its balance sheet, which could provide flexibility as it pursues growth opportunities like the Lucid Motors partnership. Additionally, the company's liquid assets exceed short-term obligations, suggesting a solid near-term financial footing.
Investors should note that Everspin is trading at a high earnings multiple, with a P/E ratio of 75. This valuation may reflect market expectations for future growth, possibly fueled by partnerships like the one with Lucid Motors. However, it also indicates that the stock may be priced at a premium compared to its current earnings.
For those interested in a deeper analysis, InvestingPro offers 11 additional tips for Everspin Technologies, providing a more comprehensive view of the company's financial health and market position.
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