Everspin Technologies, Inc Oppenheimer 29th Annual Technology, Internet & Communications Conference

Thank you, Rick, for the introduction, and thanks to Oppenheimer for this opportunity. I have a few prepared slides that we can go through and then open it up for Q&A. To begin with, I have just mentioned that any forward-looking statements that I make in this presentation, we are not held liable for that. Anyway, after that, what is Everspin? Everspin is actually a semiconductor manufacturing company that makes memories using magnetic materials. Because of that, it is actually radiation-hardened. It is actually very fast access, and it is actually very reliable in extreme environments, whether it is radiation or extreme temperatures. We have been in business since 2008. We actually spun out of Freescale in 2008, and we have been building these memories for mission-critical applications in data center, in industrial automation applications, in IoT, in automotive, and like I mentioned, in radiation-hardened application as well.

We have a fab over here, an 8-inch factory that is housed in NXP. We recently made an announcement to increase our capacity. We actually signed a foundry services agreement with Microchip to duplicate our NXP fab that we have over here in Microchip, which is in Gresham, Oregon. We also have a joint development agreement with GlobalFoundries that was signed in 2014 timeframe. We use them as a foundry for our spin torque for our second-generation MRAM technology. At the end of this year, we are actually going to bring on TSMC as a foundry as well for STT MRAM. We will have a resiliency in our supply chain, both for Toggle MRAM and 8-inch STT MRAM as well as 12-inch STT MRAM with these two foundries across the world. Like Rick mentioned, we are about 20-plus years in production.

I have been with the company that long. We have shipped about 200 million-plus units since our inception. The good news over there is that we are very quality conscious, so we can actually count any returns, a handful of returns. It has been a very high quality technology and product that we have been shipping since 2008 timeframe. We have a diverse base of customers, 2,000-plus, and we are also very focused on our IP. We have about 700-plus patents and applications worldwide that we have licensed to various customers, including GlobalFoundries, to allow them to ship embedded MRAM while they build a standalone MRAM for us. On this chart over here, it basically shows you the various locations that Everspin has satellite offices. Our headquarters are actually over here in Chandler, Arizona.

We do have a design center in Austin, Texas, and then we have worldwide sales and marketing people. We have some people here in Singapore, which is where we manufacture our STT MRAM with GlobalFoundries. Very top-level highlights. One thing I would like to highlight is we are the singular domestic provider of MRAM for mission-critical applications. There is no company in the U.S. other than us that can actually build Toggle MRAM or spin-transfer torque MRAM for the U.S. government for mission-critical applications. Like I mentioned in the previous slide, we have a diversified customer base. It goes all the way from IBM, Siemens, Schneider Electric, to mention a few, Mitsubishi Electric. Pretty diversified blue-chip customers across markets and applications. We have a large market opportunity, about $4.3 billion by 2029.

It's a large TAM that we can actually address, and we have the products and technology available to actually address that market, and we'll get into that in the next slide. We have a proven management team with extensive expertise from various segments of the industry. Bill Cooper, for example, he comes to us from AMD. We have people that come to us from Samsung and LSI, like Khaldoun Barakat. He's our VP of operations. Then also our sales and marketing team that comes to us with experience from Intel, Marvell and such. We have a very strong financial position with zero debt. We have been cash flow positive from operations for the last few years, and we have about $43 million, $44 million in the bank, and Bill will get into that a little bit later in this presentation. This is what we bring to the table.

What is the value proposition of MRAM? For those of you that are technical, it's basically a CPU-attached memory, like an SRAM or DRAM that brings the nonvolatility of flash. It's a non-volatile memory, so it's persistent, so you don't need any batteries. You can turn the power off, come back after 10 years, and the information is still there. You can read and write to it unlimited number of times. It's basically very durable, strong endurance. Read/write cycles go all the way up to 1E12 to 1E16, so unlimited read/write cycles. In terms of performance, we are almost as fast as SRAM and DRAM. Some of the SRAMs go down to 5 nanoseconds, but we are in the order of 25 to 30 nanoseconds. Pretty comparable. Pretty fast read and write memory.

In terms of reliability, we have best-in-class robustness in extreme temperatures, in extreme environments, and we don't have a single failure because of any reliability issues. It's the only technology that actually delivers all these attributes, and therefore, I say it comes pretty close to universal memory. It's the only thing that does come close to that, although it is not a universal memory, but it's pretty close. With that, I'll hand it over to Bill to talk about our market opportunity.

Thank you, Sanjeev. What this chart represents on the left, you can see the classic market that Everspin has played in with its PERSYST products. The Toggle product is the originating product, then we moved into the STT product as well. You can see on the right, primarily those markets tend to be in industrial enterprise, casino gaming, transportation, those types of verticals. We are actually coming out with a new product, a UNISYST product, and that product will tape out later this year, and that is really geared toward going after the NOR flash market. As you can see in the chart on the right, that NOR flash market is significantly larger on the order of $3 billion-$4 billion. Everspin's product, the MRAM, is actually significantly faster. It's orders of magnitude faster than NOR flash.

It also is being much faster, but it also has better data retention properties as well. So we will bring out that new product. We expect to take that out later this year, and we'll bring it out next year. We'll start producing it in mid-next year, and we should start to see some revenues manifest themselves later in 2027. So pretty exciting for us in terms of bringing that product out to market. That product will actually be produced in conjunction with TSMC. So very pleased to see that. If we go to the next slide. One of the things that we've gone public about is Everspin has been in the $50 million-$55 million range of revenues for the last two years. But we expect to see that grow to $100 million or more by fiscal year 2029.

As you can see here, the mainstay products, the originating products, the PERSYST products, Toggle MRAM, STT MRAM, and that PERSYST family of products will form the base of that growth, and we have seen very good growth. We had the highest revenue quarter ever in Q2 of 2026 at $18.7 million, then we actually guided higher to $19.5 million-$20.5 million for Q3 of 2026. But as we look forward, we'd say we're on track to meet that $100 million target in 2029. Again, what you see is the PERSYST product, the UNISYST product that we're going to take out later this year and bring to market with production and revenue by later in 2027, that product will also contribute. One of the also very important areas is we do actually see licensing royalties as well as engineering service revenue.

That's under the NRE category. We just signed an agreement with a prime contractor to the U.S. government. We did that earlier this year in April of 2026. That's a $40 million agreement, and we'll recognize that over the next couple of years. But we expect that licensing and royalty and services revenue to be in the 10%-15% category. So even as we grow over time, we expect that to also grow with us. But at the end of the day, Everspin is a product company, and the PERSYST products as well as this UNISYST products form a really strong foundation. One thing that I just want to mention is the UNISYST family, the actual application of that particular product, is really geared toward the aerospace and the data center market.

We do have products in the PERSYST family that also play in those spaces, but the UNISYST part will open up new opportunities for us because it is going to be a higher density part, 256-megabit initially, and then we expect to scale that on up from 1 gigabit to 2 gigabit, and even higher. Finally, we want to show you some of the financial information here. As you can see, from fiscal year 2021 to 2023, we were in the pandemic area, saw a little bit of a drop in fiscal year 2024. On up to 2025, we saw growth there to $55 million in revenue plus $4 million in other income under a DoD contract. Starting to see that upturn, obviously, in 2026, we are on a path to do much better than that, much further north than the $60 million.

As you look at gross margins, again, very strong selling everything we could during the pandemic period 2021 to 2023. What we see here in 2024 and 2025 and what the company we have publicly committed to is we expect to see gross margins 50% or greater as we both today and as we go forward. On the right, the company has been very strong in spending off cash flow. We have seen some reduction in that. We have put in some additional capital into our Chandler facility, and then we have some capital requirements under the new deal that we signed, the foundry service agreement with Microchip. That capital, we feel like we are very well capitalized for all of the commitments that we have with $43.9 million, $44 million in the bank as of the end of Q2 2026, and no debt for the company.