EverSpin Technology Lists Amidst Strong MRAM Growth

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Photo Credit: Pete Brown/Flickr.com 

According to a report by Coughlin Associates, the annual shipping capacity of magnetoresistive random access memory (MRAM) market is expected to grow from 240 TB in 2014 to between 15 PB and 35 PB in 2020. During the same period, the researcher expects revenues for the industry to grow from $300 million to between $1.35 billion and $3.15 billion by 2020. The recently listed EverSpin Technologies (NASDAQ:MRAM) is counting on this high growth industry.

EverSpin’s Offerings

Chandler, Arizona-based EverSpin was founded in 2008 to deliver MRAM products. Its MRAM solutions offer a non-volatile type of memory that retains information even in the absence of power with the speed of random access memory. Traditional semiconductor memory technologies store data in the form of an electrical charge, whereas the MRAM technology stores it as a magnetic state. Thus, MRAM devices are able to retain mission critical data even in the event of power failure.

EverSpin’s products read and write data at speeds on par with most dynamic RAM (DRAM) and static RAM (SRAM). It offers MRAM solutions with different densities ranging from 128Kb to 64Mb. Its solutions are thus utilized by customers across multiple industries including industrial, automotive, transportation, and enterprise storage companies that leverage its products to design high performance, power efficient, and reliable systems without the need for bulky batteries. EverSpin is a pioneer in commercially available MRAM solutions. Since its founding, the company has shipped more than 60 million MRAM units to its more than 600 customers which include names like Honeywell, Nikkiso, Siemens, Airbus, Hyundai, Broadcom, Dell, IBM, and Lenovo.

EverSpin’s Financials

EverSpin earns revenues through product sales and licensing and royalty services. But despite the high growth in the industry, EverSpin’s own growth has been rather muted. For the year ended December 2015, EverSpin’s revenues grew a modest 6% to $26.5 million. For the six-month period ended June this year, revenues grew an even slower 1% to $12.9 million. During the same period, EverSpin has continued to suffer losses. Net loss increased from $10.2 million in 2014 to $18.2 million last year. For the six-month period ended June this year, it racked up losses of $10 million. The losses are attributed primarily to investment in research and development as nearly half of its workforce is engaged in R&D activities.

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