• First-quarter revenue came in at $14.87 million, slightly above the $14.60 estimate.
• Everspin reported a loss of $0.01 per share, while analysts, on average, expected a profit of $0.09 per share.
• The firm’s executives claimed that its balance sheet is “strong,” enabling it to provide engineering and foundry services for products intended for the U.S. Department of War.

Shares of Everspin Technologies (MRAM) are on track to record their best single-day gains in four years if the premarket rally persists on Thursday.

The company reported its first-quarter results, which did not really turn heads on Wall Street, as revenue came in at $14.87 million, slightly above the $14.60 estimate, according to data from Fiscal AI. Moreover, Everspin reported a loss of $0.01 per share, while analysts, on average, expected a profit of $0.09 per share.

What’s Behind The Rally?

Everspin executives disclosed a new $40 million agreement with a U.S. prime contractor, under which the company will serve as a subcontractor, providing Toggle MRAM process technology capabilities and engineering services to its United States Defense Industrial Base customers.

The executives claimed that Everspin’s balance sheet is “strong,” which will enable it to provide engineering and foundry services for products meant for the U.S. Department of War through its recently announced Foundry Services Agreement with Microchip (MCHP).

Moreover, the company said it is seeing increased demand from data center customers for its products due to the ongoing artificial intelligence boom.

"We are going to provide a technology information, a recipe, a compendium, if you will, for mil and aerospace Toggle MRAM to this contractor, to this U.S. prime contractor," said Chief Executive Officer Sanjeev Aggarwal on the earnings call. “There is a new product that the U.S. government is actually planning to tape out. So the R&D for that product and the production support for that product would also be part of this contract.”

How Did Retail Traders React? 

On Stocktwits, retail sentiment about MRAM turned ‘extremely bullish’ from ‘bullish,’ while message volumes remained ‘extremely high’ over the last 24 hours.

One user on the platform thinks the stock will cross $20.

Another user wrote on the platform that MRAM has the potential to reach a $1 billion market cap.

MRAM has outperformed the benchmark S&P index so far this year and over the last 12 months.

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