Everspin Technologies, Inc. (NASDAQ:MRAM) Files An 8-K Results of Operations and Financial Condition
Item 2.02 Results of Operations and Financial Condition.
On January 13, 2020, Everspin reaffirmed its expectations for fourth quarter 2019 revenue of $9.3 million to $9.7 million.
This expectation is a forward-looking statement subject to risks and uncertainties, including that the fourth quarter of 2019 revenue expectations are preliminary and adjustments may be made during the audit process.
Item 2.05. Costs Associated with Exit or Disposal Activities.
On January 9, 2020, the senior management of Everspin Technologies, Inc. implemented a reorganization plan which includes a reduction in headcount of approximately 15%. This action was taken to reduce operating expenses and is designed to increase Everspins operating efficiency and enhance its ability to become profitable.
Everspin expects to substantially complete these actions by January 31, 2020. Everspin is currently assessing associated restructuring and other charges, the substantial majority of which Everspin expects to take in the fourth quarter of 2019. The total financial impact of the restructuring is currently expected to be approximately $780,000 to $815,000, including termination benefits (severance pay, health care coverage, and accelerated vesting of stock). Of this amount, the total future cash expenditures associated with the restructuring is currently expected to be approximately $780,000 to $800,000.
The statements set forth above regarding the timing of completion of the actions and the expected total cash impact of the actions are forward-looking statements under Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based upon Everspins current expectations and involve risks and uncertainties. Everspins actual results could differ materially from those anticipated in such forward-looking statements as a result of these risks and uncertainties, which include, without limitation, risks inherent in significant restructuring efforts, which may affect the timing of the completion of the actions and ultimate actual amounts of the financial and cash impacts. Everspin expressly disclaims any obligation or undertaking to release publicly any updates or revisions to these forward-looking statements, except as the law may require.
Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
On January 8, 2020, Everspin and Jeffrey Winzeler, Chief Financial Officer of Everspin, in connection with the restructuring discussed above, mutually agreed that Mr. Winzeler would cease to be an officer and employee of Everspin effective January 31, 2020, and therefore cease to be Everspins principal financial and accounting officer on that date. In connection with this determination, Everspin and Mr. Winzeler entered into a separation agreement dated the same date to which Mr. Winzeler will be entitled to: continue to receive his base salary for six months following the date of termination of employment; receive his bonus for 2019 once determined; paid COBRA premiums through July 31, 2020; and six months accelerated vesting of his equity awards and six months post separation to exercise his equity awards.
As a result of the above, on January 31, 2020, Matthew Tenorio, Everspins Corporate Controller, will become Everspins Interim Chief Financial Officer and Everspins principal financial and accounting officer.
Mr. Tenorio, age 57, has served as our Corporate Controller since November 2019 and as our Operations Controller from July 2019 to November 2019. From March 2000 to June 2019, Mr. Tenorio