Shares of Everspin Technologies Inc. (NASDAQ:MRAM) soared late Thursday after the Arizona-based memory-chip maker posted smaller-than-expected losses in the first quarter helped by record sales driven by increased licensing.
Everspin shares soared over 20% to close at US$8.94 on Thursday.
The chip-maker still lost money, but not as much as a year ago. For the quarter ended March 31, Everspin Technologies posted a loss of US$0.09, which was US$0.33 better than the analysts' estimates of US$0.42. Everspin’s revenue grew 88.5% on a year-over-year basis to US$14.9mln and US$5.5mln of licensing and royalty revenue.
“We’ve started out the year making notable progress driving increased adoption of our MRAM technology, while also increasing our cash reserves to help further fund and support our MRAM initiatives,” said Everspin Technologies CEO Kevin Conley.
MRAM is a form of digital memory that is used in computers and industrial equipment and retains its data without the need for a battery or capacitor.
Everspin has also increased its cash reserves to US$33.9mln, compared to US$13mln last quarter.
The company said it expects a second quarter loss of US$0.45 to US$0.41 per share on revenue of US$10.9 million to US$11.3 million. The current consensus estimate is a loss of US$0.35 per share on revenue of $10.8 million for the quarter ending June 30, 2018.
The semiconductor developer and manufacturer of digital memory silicon wafers said it has signed a long-term patent license agreement with Alps Electric.