Q2 2025 Everspin Technologies Inc Earnings Call
All participants are in a listen only mode.
At the conclusion of managements prepared remarks instructions will be provided for the question and answer session.
As a reminder, this conference call is being recorded I would now like to turn the conference over to Monica Gould Investor Relations for ever spin. Thank you operator, and good afternoon, everyone ever spend released results for the second quarter 2025 ended June 32025. This afternoon after market close.
I'm Monica Gould Investor relations for ever spin and with me on today's call are Sanjiv, otherwise, President and Chief Executive Officer, and Bill Cooper Chief Financial Officer.
Before we begin I would like to remind you that today's discussion may contain forward looking statements regarding future events, including but not limited to the company's expectations for eversman future business financial performance and goals customer and industry adoption of M Ram technology successfully bringing to <unk>.
Market and manufacturing products and ever since design pipeline and executing on its business plan. These forward looking statements are based on estimates judgments current trends and market conditions and involve risks and uncertainties that may cause actual results to differ materially from those contained in the forward looking statements.
Speaker #2: Good afternoon and welcome to EVERSPIN TECHNOLOGIES second quarter 2025 financial results conference call. At this time, all participants are in a listen-only mode. At the conclusion of management's prepared remarks, instructions will be provided for the question and answer session.
We would encourage you to review the company's SEC filings, including the annual report on Form 10-K, and other SEC filings made from time to time in which the company may discuss risk factors associated with investing in ever spin.
Speaker #2: As a reminder, this conference call is being recorded. I would now like to turn the conference over to Monica Gold, investor relations for EVERSPIN.
All forward looking statements are made as of the date of this call and except as required by law. The company undertakes no obligation to update or alter any forward looking statements made on this call whether as a result of new information future events or otherwise.
Speaker #3: Thank you, operator, and good afternoon, everyone. EVERSPIN released results for the second quarter 2025 ended June 30, 2025, this afternoon after market close. I'm Monica Gould, investor relations for EVERSPIN, and with me on today's call are Sanjeev Aggarwal, president and chief executive officer, and Bill Cooper, chief financial officer.
Financial results discussed today reflect the company's preliminary estimates and are based on the information available as of the date hereof and are subject to further review by ever spent and its external auditors. The company's actual results may differ materially from these estimates as a result of the completion of financial closing procedures.
Speaker #3: Before we begin, I would like to remind you that today's discussion may contain forward-looking statements regarding future events, including but not limited to the company's expectations for EVERSPIN's future business, financial performance, and goals.
Final adjustments and other developments arising between now and the time that the financial results for this period are finalized additional.
Additionally, the company's press release and statements made during this conference call will include discussions of certain measures.
Speaker #3: Customer and industry adoption of MRAM technology, successfully bringing to market and manufacturing products in EVERSPIN's design pipeline, and executing on its business plan. These forward-looking statements are based on estimates, judgments, current trends, and market conditions, and involve risks and uncertainties that may cause actual results to differ materially from those contained in the forward-looking statements.
And financial information in GAAP and non-GAAP terms included in the company's press release are definitions and reconciliations of GAAP net income to non-GAAP net income, which provides additional details a copy of the press release is posted on the Investor Relations section of ever since website at www dot ever spend.
Speaker #3: We would encourage you to review the company's SEC filings, including the annual report on Form 10-K and other SEC filings made from time to time in which the company may discuss risk factors associated with investing in EVERSPIN.
Dot com.
And now I'd like to turn the call over to <unk>, President and CEO Sanjiv Agarwal.
<unk>. Please go ahead.
Thank you Monica and thanks, everyone for joining us on the call today.
Turning to our second quarter results.
Speaker #3: All forward-looking statements are made as of the date of this call and accept as required by law, the company undertakes no obligation to update or alter any forward-looking statement made on this call.
We are pleased to report second quarter results with revenue of $13 2 million and non-GAAP earnings per share of three.
With revenue towards the high end of our guidance range.
Speaker #3: Whether as a result of new information, future events, or otherwise. The financial results discussed today reflect the company's preliminary estimates and are based on the information available as of the date hereof.
Our performance this quarter was driven by strength across all products, specifically and data center industrial automation and lower orbital our legal obligations.
Speaker #3: And our subject to further review by EVERSPIN and its external auditors. The company's actual results may differ materially from these estimates as a result of the completion of financial closing procedures, final adjustments, and other developments arising between now and the time that the final results for this period are finalized.
We saw high single digit sequential growth in the data center business.
This growth was driven by strong demand on the redundant array of.
Independent desks or read from a broad selection of data center customers, including Doe Supermicro and others.
Speaker #3: Additionally, the company's press release and statements made during this conference call will include discussions of certain measures and financial information and GAAP and non-GAAP terms, included in the company's press release or definitions and reconciliations of GAAP net income to non-GAAP net income, which provide additional details.
We saw good momentum from our customers.
Industrial automation equipment.
<unk> programmable logic controllers for plc with sequential growth in excess of 20% from the fourth quarter.
<unk> has a significant historical business here and we are seeing momentum from current customers and recent design wins with our industrial.
Speaker #3: A copy of the press release is posted on the investor relations section of EVERSPIN's website at www.everspin.com. And now, I'd like turn the call over to EVERSPIN's president and CEO, Sanjeev Aggarwal.
Expired products.
We saw good traction in this space and aerospace segments that continue to value the benefits of AMRAAM as a reliable persistent non volatile memory for Leo deployments.
Speaker #3: Sanjeev, please go head.
Speaker #4: Thank you, Monica. And thanks, everyone, for joining us on the call today. Turning to our second quarter results, we are pleased to report our second quarter results with revenue of $13.2 million and non-gap earnings per share of $0.03.
During the second quarter, we reached a steady state of revenue from the sale of our persist one gigabit as CDM ROM into Ibm's Flash core module for <unk> for data center applications and continue to anticipate product revenue from this ongoing project.
Speaker #4: With revenue toward the high end of our guidance range. Our performance this quarter was driven by strength across all products, specifically in data center, industrial automation, and low Earth orbital or LEO applications.
To remain consistent for the remainder of the year.
We continue to ship and recognize revenue for our persist amiram solution from lucid motors for the gravity a few weeks and expect volumes to increase as the automaker ramps production.
Speaker #4: We saw a high single-digit sequential growth in the data center business. This growth was driven by strong demand on the undant array of independent disks or RAID, from a broad selection of data center customers including Dell, Supermicro, and others.
We shipped engineering samples for the two new products, we announced last quarter as part of our X by family the persist.
Speaker #4: We saw good momentum from our customers who build industrial automation equipment, like programmable logic controllers (PLCs), with sequential growth in excess of 20% from the first quarter.
064, Alex HR.
M <unk>.
This part feature and expanded Bembridge arrange to address the growing demand for persistent high speed memory in aerospace defense and extreme industrial environment and provide designers with a robust fast and scalable alternative to static ram or nor flash.
Speaker #4: EVERSPIN has a significant historical business year and we are seeing momentum from current customers and recent design wins with our industrial Xspire product. We saw good traction in the space and aerospace segments that continue to value the benefits of MRAM as a reliable persistent non-volatile memory for LEO deployments.
We remain on track to ramp to full production in late 2025.
Turning to our licensing royalty patterns on other revenue.
We completed the first phase of the front great projects successfully meeting all our deliverables in Q2.
Speaker #4: During the second quarter, we reached a steady state of revenue from the sale of a persist 1 Gigabit STT MRAM into IBM's FlashCore Module 4 (FCM4) for data center applications. We continued to anticipate product revenue from this ongoing project to remain consistent for the remainder of the year.
During this phase we recognize revenue related to delivering the process design kit or SDK.
This contract allows for the award of future optional phases based upon successful performance of all parties contributing to this phase and at the discretion of the U S government.
Speaker #4: We continue to ship and recognize revenue for our persist MRAM solution from Lucid Motors for their gravity SUV and expect volumes to increase as the production.
As a reminder, the goal of the project is to enable production of embedded radiation hard as CDM, Ron macros for use and aerospace applications.
We saw a sequential uptick in revenue from our contract with good logic for our innovative Agelaus MRI technology in the second quarter.
Speaker #4: We shipped engineering samples for the two new products we announced last quarter as part of our Xspire family: the persist EM064LX HR and EM128LX HR.
As a team we continue to advance the development and demonstration of strategic radiation hardened high reliability FPGA technology.
Speaker #4: These parts feature an expanded temperature range to address the growing demand for persistent high-speed memory in aerospace, defense, and extreme industrial environments and provide designers with a robust, fast, and scalable alternative to static RAM or NOR flash.
At the end of this phase we will have validated the design on silicon.
Our contract with Purdue University to provide our state of the art as to the MRM technology to support energy efficient AI solutions as reached a steady state.
We are making good progress to develop low power magnetic tunnel junction RMT J devices and continue to share these results with Purdue University.
Speaker #4: We remain on track to RAM to full production in late 2025. Turning to our licensing royalty patent and other revenue, we completed the first phase of the front grade project successfully meeting all our deliverables in Q2.
Lastly, we continue to recognize revenue from our ongoing project with a leading provider of sensor devices to provide foundry services for their latest generation TMR sensor device on our MRM line in our Chandler facility.
Speaker #4: During this phase, we recognized revenue related to delivering the process design kit or PDK. This contract allows for the award of future optional phases based upon successful performance of all parties contributing to this phase and at the discretion of the US government.
With respect to below the line items, we recognized $8 million in other income in the second quarter and $7 4 million to date from the $14 6 million contract, we have with the Dod contractor to develop a sustainment plan for our MRI manufacturing facilities to provide continued.
Speaker #4: As a reminder, the goal of the project is to enable production of embedded radiation hard STT MRAM macros for use in aerospace applications. We saw a sequential uptick in revenue from our contract with QuickLogic for our innovative agilist MRAM technology, in the second quarter.
Onshore Amazon capabilities to the aerospace and defense customers.
We expect this business to pick up meaningfully in the fourth quarter.
In order to ensure that we meet the future demand for our products. We are expanding our executive team with the addition of a dedicated VP of sales, Sean Dowdy, who joined US recently from Endo with Sean tradition, David shrink who has been our VP of sales and business development for the last three.
Speaker #4: As a team, we continue to advance the development and demonstration of strategic radiation hardened high reliability FPGA technology. At the end of this phase, we will have validated the design on silicon.
Speaker #4: Our contract with Purdue University to provide our state-of-the-art STT MRAM technology to support energy-efficient AI solutions has reached a steady state. We are making good progress to develop low power magnetic tunnel junction or MTJ devices and continue to share these results with Purdue University.
We'll be able to focus his efforts exclusively on business development.
Our outlook for 2025 remains consistent.
We continue to expect the year to be weighted more heavily towards the second half of 2025 due to our typical seasonality and do not expect a direct material impact from tariffs on our results.
Speaker #4: Lastly, we continue to recognize revenue from our ongoing project with a leading provider of sensor devices to provide foundry services for their latest generation TMR sensor device on our MRAM line in our Chandler facility.
I will now turn it over to our CFO Bill Cooper, who will walk you through our second quarter financials, and third quarter 2025 guidance.
Bill.
Thank you Sandeep our results reflect the consistency of our execution during the second quarter, we delivered revenue of $13 2 million at the high end of our guidance range of $12 5 million to $13 5 million driven.
Speaker #4: With respect to below-the-line items, we recognized 0.8 million in other income in the second quarter and 7.4 million to date from the $14.6 million contract we have with the DOD contractor to develop a sustainment plan for our MRAM manufacturing facilities to provide continuous onshore MRAM capabilities to their aerospace and defense customers.
Driven by strength across all of our products.
MRM product sales in the second quarter, which include both toggle and <unk> <unk> revenue was $11 1 million compared to $9 9 million in Q2 dollars 24 up slightly from product sales of $11 million in the first quarter.
Speaker #4: We expect this business to pick up meaningfully in the fourth quarter. In order to ensure that we meet the future demand for our products, we are expanding our executive team with the addition of a dedicated VP of sales Sean Doherty, who joined us recently from Intel.
Licensing royalty patents and other revenue in the second quarter increased to $2 1 million compared to zero point $7 million in Q2 of 'twenty for this.
Speaker #4: With Sean's addition, David Schrank, who has been our VP of sales and business development for the last three years, will be able to focus his efforts exclusively on business development.
This increase was driven by the ramp in our contract with Purdue.
Turning to gross margin our GAAP gross margin was 51, 3% for the second quarter down slightly from 51, 4% in the first quarter and up from 49% in Q2 24.
Speaker #4: Our look for 2025 remains consistent. We continue to expect the year to be weighted more heavily towards the second half of 2025 due to our typical seasonality and do not expect a direct material impact from our tariffs on our results.
The increase relative to the same period last year was due to a larger mix of high margin licensing and other revenue.
GAAP operating expenses for the second quarter of 2025 or.
Speaker #4: I will now turn it over to our CFO, Bill Cooper, who will walk you through our second quarter financials and third quarter 2025 guidance.
Were $8 7 million.
Flat as compared to $8 7 million in the first quarter and up from $8 8 million in the second quarter of 2024.
Speaker #4: Bill?
In the second quarter of 2025, the company recorded <unk> $8 million of other income related to the strategic award. We won in August of last year to develop a long term plan provide manufacturing services for aerospace and defense segments.
We recorded second quarter non-GAAP net income of <unk> 7 million or <unk> <unk> per diluted share based on $22 6 million weighted average diluted shares outstanding.
This was in line with our guidance range of non-GAAP net income of breakeven to <unk> <unk> per share.
And a significant improvement from a non-GAAP net loss of $1 6 million or a loss of <unk> <unk> per share in the second quarter of 2024.
As a reminder, non-GAAP results are calculated by removing the impact of stock based compensation.
We are pleased that our balance sheet remains strong and debt free and we ended the quarter with cash and cash equivalents of $45 8 million.
Up $2 8 million from $42 2 million at the end of the prior quarter.
Cash flow generated from operations increased to $5 8 million for the second quarter up from $1 4 million in the first quarter driven by improved accounts receivable collections.
We will continue to utilize our cash and developing new products enhancing our sales and marketing efforts and as an effective hedge against macroeconomic uncertainty.
We did not experience any tariff related impact on our results in the second quarter and do not expect any material tariff related impact in the coming quarters pending further guidance from the Trump administration.
As Sanjay mentioned, we continue to expect 2025 to be more heavily weighted towards the second half of the year, reflecting our typical seasonality.
Taking these factors into consideration, we expect Q3 total revenue in the range of $13 5 million to $14 5 million and GAAP net loss per fully diluted share to be between <unk> and breakeven.
On a non-GAAP basis, we anticipate net income per fully diluted share to be between <unk> and <unk>.
In summary, we are pleased with our solid results this quarter and remain committed to maintaining financial discipline, while focusing on scaling our business and converting additional design wins to revenue.
Operator, you May now open the line for questions.
Thank you.
At this time, we will conduct a question and answer session.
Please remember to ask a question you will need to press star one.
Telephone and wait for your name to be announced.
So with draw your question. Please press star one again.
Please standby, while we compile the Q&A roster.
Our first question comes from the line of Richard Shannon with Craig Hallum. Your line is now open.
Oh, great. Thanks, guys for letting me ask a few questions here.
I apologize I jumped on a little bit later in the call. So I may have missed some some topics here but.
As I typically do I'd love to ask about product gross margins in the quarter. If I did my numbers right. It seems like they're in line or a little bit lower than last quarter and kind of a bit lower than maybe what the trend. We've seen in the last several quarters here just wanted to get a sense of whether there's any yield or mixed dynamics going on in here.
They're earlier in the lifecycle so we.
We're always looking for ways to improve those gross margins and working with the foundries and.
Folks in manufacturing to improve.
<unk> improvement on the hills.
Yeah.
I guess.
Is there a path or a view to getting those product gross margins above 50% anytime soon.
Yes that is our that is our target we expect to be north of 50% and total for product gross margins, but.
As always those things take a little bit of time, so, but we do expect to be solidly in that 45 to 50 ish percent margin range for products.
Okay fair enough thanks for that update.
Would love to ask you about kind of progress in the new product area. Here I think you mentioned a couple of a couple of brief comments in this area but.
Does it sound like we should expect.
The notable increase here as we exit the year at the currency trades I heard users go into full volume production of these products late this year. So.
If I caught that right maybe you can help us understand what kind of contribution we should look for as we get into next year.
Yes, I think on those those newer products right.
Our ramping and they are kind of in the burgeoning.
Speaker #1: Seems like they're in line or a little bit lower than last quarter and kind of a bit lower than maybe what the trend we've seen in the last, several quarters here.
Aerospace segment, that's that's one of the key segments key industries for that for that area and we definitely are starting to see some uptick in again.
Speaker #1: So I wanna get a sense of whether 's any yield or, or mixed dynamics, going in here.
Some good traction on some of the newer parts and products.
So I think we are.
We're moving along hopefully with those products.
Color to that Richard Hi, Sanjiv.
Speaker #2: you know, their earlier in the life cycle. So we, you ow, we're always, looking for ways to improve those, those gross margins and working with the, the foundries and the, folks in manufacturing to improve, continuous improvement on the yields.
Like we said in our prepared comments, we did see significant sequential growth rate almost 20% compared to.
Q1.
And a good portion of that is actually attributed to those new products of the <unk> family.
We brought to market over the last couple of years. So we are seeing good traction and we are seeing some volume pick up.
Speaker #1: I guess, do is there a, a, a path or a view to getting those product gross margins up, above 50% anytime soon?
How much it will be it's a little bit difficult for us to break that out, but I do think that youll see some.
Speaker #2: Yeah, that is our, that is our target. We expect to be north of 50%, in total for product gross margins. But, you know, as always, those things take a little bit of time.
Contribution on that and the projections for the revenue that we have for Q3 and going up into Q4.
Speaker #2: So we, but we do expect to be solidly in that 45 to 50-ish percent, margin range for products.
Okay fair enough.
Maybe I'll just ask on the product side here from an end market perspective, you mentioned, some nice dynamics here in datacenter and you've called out some stuff in automotive here, maybe maybe just talk about the dynamics youre seeing in the in the broader industrial markets and even by geographies as I think you've talked about from time to time in the past year.
Speaker #1: Okay. Fair enough. Thanks for that update. would love to ask about kind of progress in, the new product area here. I ink you mentioned, a uple, a couple of brief comments in this area, but, it doesn't sound like we should ect to, a notable increase here as we exit the year.
But the trends are looking like I think we're seeing.
Speaker #1: I ink, I think the phrase I heard used was, going to full volume production with these products late this year. So, if, if I caught that right, maybe you can help us understand what kind of contributions we should look for as we get into next year.
In a lot of moving parts, both up and down as we see other companies reporting so far and love to get your sense of what you are seeing.
Yes.
Good news.
For our spin from <unk> point of view is that we are actually seeing depletion of inventories at our customers.
Speaker #2: Yeah, I ink on those, those newer products, right? they are ramping and they are kind of in the burgeoning, aerospace, segment. That's, that's one of the key segments, key industries for that, for that area.
Almost all across the world specifically in the Asian region, where youre concerned about.
And when do you <unk>. So I think we are actually seeing some good.
Speaker #2: And we've, we definitely are starting to see some uptick. And in, some good traction on some of the newer part, parts and products. so I think we're, we're, you ow, we're, we're ing along healthily with those products.
Number of orders come in from from that region. So thats good and again most of these are.
Either in the.
Automation or in the data center and data center I mean the.
Great memory, Jonathan memory applications, so the Dallas the silver micros.
Speaker #1: And has that some, color to that, Richard? Hi, this is jeev. you know, like we said in our pared comments, we did see, significant, sequential growth, right?
On the Broadcom.
And then as far as automation and yes those are.
Sure.
Traditional customers from across the world that use them for a programmable logic controllers, so you're starting to see some uptick in that activity as well.
Speaker #1: Almost 20% compared , Q1. And, a good portion of that is actually attributed to this, new products of the Xpy family, that we brought to market over the last couple of years.
Okay, great to see and my last question I'm, just hunting through my notes here from the call I believe Bill you had mentioned something about a pick up.
Speaker #1: So we are seeing good traction. And we are seeing, some volume pickup. as to how much it'll be, it's a little bit difficult, for us to break that out.
In some specific contracts I apologize my handwriting here is pretty bad.
Speaker #1: but I do think that you'll see some, contribution of that in the, projection for the revenue that we have for Q3 and going up into Q4.
But something in a pick up in the fourth quarter, maybe you could repeat that and then describe a little bit more about what's going on there. Please thank you.
Speaker #1: Okay. Fair enough, en. maybe let's ask on the product side here from an end-market perspective. you mentioned some, nice dynamics here in, in data center and you pulled out, some stuff in automotive here.
Yes, yes, so that is the other income.
That we have from the momentum contract that we were awarded late last year.
<unk>.
We see activity in that contract in the back half of the year.
Speaker #1: maybe, maybe just talk about the, the dynamics you're eing in the, in the broader industrial markets and even by geographies as I think you've ked about from time to time in the past here.
Okay. So when you talk about a pick up there any way you can quantify what we're talking about are you relative to the third quarter or two and I think you had a fairly sizeable quarter in this contract sometime last year, maybe you can just kind of size that for us. Please.
Speaker #1: What the trends are looking like. I think we're eing, you know, a lot moving parts both up and down as we see other companies reporting so far.
Speaker #1: I'd love to get your sense what you're eing.
Speaker #3: Yeah, so the, good news, for EVERSPIN, from EVERSPIN's of view is that we are actually seeing depletion of inventories at our customers. almost, all across the world.
Yes, we had a we had a strong back half of last year, we will expect to see a strong second half and particularly.
More towards Q4 as well.
Speaker #3: specifically, in the Asian region where we were concerned , inventory overburden. So I think we are actually seeing some good, number of orders come in from, h, from that region.
Okay Alright.
I think that is all the questions for me. Thank you guys.
Okay. Thanks, Richard Thank you.
Speaker #3: So that's good. And again, most of these are, either in the, automation or in the data center and by data center, I mean, the RAID memory or general memory applications.
Thank you so much.
And please as a reminder.
<unk> a question. Please press star one on your telephone you will then hear an automated message advising our hand as ray. So withdraw your question. Please press star one again.
Speaker #3: So, you know, the Dell, the Supermicros, the Broadcoms, and then as far as, automation, you know, ose are our, you ow, traditional customers, from across the world that use them for programmable logic controllers.
One moment, while we compile our Q&A roster.
Speaker #3: So, we're ing to see some uptick in, in that activity as well.
Yes.
Speaker #1: Okay. great to see. And my last question, I'm just hunting through my notes here from the call. I believe Billy had mentioned something about a pickup in some specific contract to apologize.
Alright.
Our next question again comes from the line.
Richard Shannon with Craig Hallum. Your line is now open.
Alright, well I guess I could have just stayed in here.
Speaker #1: My, handwriting here is pretty bad. but something in a pickup in the fourth quarter. Maybe you could repeat that and then describe a little bit more about what's going on there, please.
What's your I guess two questions two questions for me.
First one is.
Speaker #1: Thank you.
In terms of the quick logic relationship there.
Speaker #3: yes. Yes. So that is the
Speaker #2: other income, that we have from the, the momentum contract. That we were awarded, late last year. And, activity, in that contract in the back half of the ar.
Maybe I'll call. It the language wrong here, but is this something that you're finished the current contract youre waiting for the new one or just wanted to get a sense of the timing and dynamics of where we are with the Alaska announced one please.
Yes so.
Speaker #1: Okay. So when you talk about a pickup there, any way they can quantify what we're talking about here relative to the third quarter or two, you know, I think ou had a fairly sizable quarter in this contract sometime, last year.
As far as the.
Completion of the phase I was referring to the Great project. Richard We did complete the first phase of that project in Q2, and now we are dependent on renewal of the project.
Speaker #1: Maybe you could just kind of size that for us somehow, please.
And that is actually funded I think frankly, it is actually funded through.
Speaker #2: Yeah, we had a, we had a strong, back half last year. We'll expect to see a strong, second half, and particularly, more, toward Q4 as well.
Through the careful so.
That's what we're waiting on next on the quick logic, we continue to deliver on the deliverables that we had signed up for in Q2. There is nothing significant to report over that except that we have at.
Speaker #1: Okay. I think that is all questions for me. Thank you, guys.
Speaker #3: Anytime, Richard.
Speaker #2: Thank you.
At our deliverables.
Speaker #4: Thank you so much. And please, as a reminder, to ask a question, please press star one-one on your telephone. You will then hear an automated message advising your hand is raised.
To work on future deliverables.
Okay. When do you expect that contract to complete.
A quick one I think the total value of the project.
In years.
Speaker #4: To withdraw your question, please press star one-one again. One moment while we compile our Q&A roster. All right. Our next question again comes from the line of Richard Shannon with Craig Holland.
Almost another two years, if I'm not mistaken infrastructure got.
Got it okay.
My my last topic to touch on here is.
Following up on the press release with that you did with lattice semiconductor.
As a companion to the FPGA chips. They sell there wanted to get a kind of an update there on the progress I know this is something that was going to take a number of quarters to come to fruition, but love to get your update on that one so that's all for me. Thanks.
Speaker #4: Your line is now open.
Yes, so I mean.
Speaker #1: All righty. Well, I guess I could have just stayed in here. let's hear, I guess, two questions co two questions for me. first one is, in terms of the quick logic, relationship there, maybe I caught the language wrong here, but is this something that, that you're finished the, the current contract you're waiting for the new one?
As we talked about last time, we do have some activity going on with lattice where they're actually.
Doing a co package solution using our X by park.
I believe it's either 32 or 64 megabit density.
And I think that evaluation is ongoing and I think they are now and those parts are now available for our customers to evaluate through.
Speaker #1: Or just wanna get a sense of the, of the timing and, and dynamics of where we are with the last announced one, please.
Through different distributors for example, digi key.
Speaker #3: Yeah, so, as far as the completion of the phase, I was referring to the front-grade project, Richard. We did complete the first phase of that project in Q2.
Get the boards from there for evaluation and then also on Github, we have the drivers available to actually download the drivers to evaluate those parts. So I think the collaboration is going well just like you said, it's going to take a couple of quarters before you see any significant traction.
Speaker #3: And now we are dependent on, h, renewal of the, project, on that, is actually funded, I think front grade actually funded through, through the AFRL.
Okay.
Sure Alaska.
A couple of quarters on that we look forward to hearing more about that that's all from me guys. Thank you.
Speaker #3: So that's what we are waiting on next. On the quick logic, we continue to deliver on the deliverables that we had signed up for in Q2.
Thank you. Thank you.
Thank you so much.
Speaker #3: there's nothing, significant to report over there except that, we have, met our deliverables and continue to work on, future deliverables.
I am showing no further questions.
I would now like to turn the call over to Sanjay for closing remarks.
Speaker #1: Okay. When do you, when do you expect that contract to complete?
Thank you operator, I just wanted to thank everyone for joining the call today and look forward to giving you guys an update for next quarter. Thanks a lot.
Speaker #3: The quick logic one, I ink, the total value the project and the time is, almost another two years, if I'm not mistaken.
Okay.
Thank you.
Speaker #1: Got it. Okay.
Speaker #3: Yeah.
Does conclude today's call.
Speaker #1: My, my last topic to touch on here is, you know, following up on the press release with, that you did with Lattice. I mean, , as a companion to the FPGA chips, they sell there.
Thank you for your participation you may now disconnect.
Speaker #1: Wanted to get a, a, a kind of an update there on the progress. I know this is something that was gonna take a number of quarters to come to fruition, but I'd love to get your update that one, Sanjeev.
Speaker #1: That's all for me. Thanks.
Speaker #3: Yeah. Yeah, so, I an, as we talked about last time, we do have some activity ing on with, Lattice where they're ally, doing a co-package, solution using our, Xpy part of, I believe it's either 32 or 64 megabit, density.
Speaker #3: And I think that evaluation is ongoing. And I think they're now, those parts are available for our ustomers, to evaluate through, through different distributors, for example, Digi-Key, you can get the, boards from there for evaluation.
Speaker #3: And then also on GitHub, we have the drivers available to actually download the drivers to evaluate those parts. So I think the collaboration is going well.
Speaker #3: it's just, like you said, it's gonna take a couple of quarters. Before you see any significant, traction.
Speaker #1: Okay. I'm sure I'll k, in a couple of quarters on that. We look forward to hearing more about that. That's all for me, guys.
Speaker #1: Thank you.
Speaker #3: Thank you, Richard.
Speaker #2: Thank you.
Speaker #4: Thank you so much. I am showing no further questions. I would now like to turn the call over to Sanjeev for closing remarks.
Speaker #1: Thank you, operator. I just wanted to thank everyone for joining the call today and look forward to giving you guys an update, for next quarter.
Speaker #1: Thanks a lot.