Up to 30 people could be losing their jobs as on its Linkedin page Everspin claims a headcount of between 50 and 200 people.
Everspin Technologies Inc. (Chandler, Ariz.) said the move was being made to maximize long-term sustainability, operational health and financial control and that it would take a one-time restructuring charge against its 4Q19 financial results.
In the first three quarters of 2019 Everspin made aggregate net loss of $11.7 million on revenues of $27.8 million. Sales have been consistently down on sales in the same quarters in 2018.
“As a continuation of the cost reduction efforts we initiated last year, today’s restructuring is designed to enable us to accelerate our achievement of cash flow breakeven, while maintaining investments in growing our MRAM product revenue and supporting our customers,” said Kevin Conley, CEO of Everspin, in a statement. “Reducing headcount is a difficult action because we value the contributions of every one of our employees.”
Everspin went public on the NASDAQ in 2016 as a way to raise funds despite being lossmaking at that time. Conley, previously a CTO at SanDisk, joined the board of directors of Everspin in March 2017 and was appointed CEO in August 2017.
In addition, Jeff Winzeler, who has served Everspin as CFO for the past five years, will step down to pursue other interests, and a search for a replacement is underway.
Everspin confirmed its previous 4Q19 revenue guidance of $9.3 million to $9.7 million and said expects to report 4Q19 financial results on March 11, 2020.
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