Good afternoon, and welcome to Everspin Technologies' Second Quarter 2026 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. As a reminder, this conference call is being recorded. I would now like to turn the conference over to Monica Gould, Investor Relations for Everspin. Thank you, operator, and good afternoon, everyone. Everspin released results for the second quarter 2026, ended June 30th, 2026 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. Before we begin the call, 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, 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. 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. All forward-looking statements are made as of the date of this call, 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. The financial results discussed today reflect the company's preliminary estimates, are based on the information available as of the date hereof, and are 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 financial results for the period are finalized. Additionally, the company's press release and statements made during this conference call will include discussions of certain measures 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 provide additional details. A copy of the press release is posted on the investor relations section of Everspin's website at www.everspin.com. Now, I would like to turn the call over to Everspin's President and CEO, Sanjeev Aggarwal. Sanjeev, please go ahead. Thank you, Monica, and thanks, everyone, for joining us on the call today. We are pleased to report second quarter revenue of $18.7 million and non-GAAP EPS of $0.11. These results reflect the highest revenue quarter in Everspin's history, which exceeded our guidance range on both the top and bottom- line, driven by strong product revenue growth and the $40 million agreement we announced with a U.S. prime contractor on our last earnings call. During the quarter, we began to recognize non-product revenue under the two-and-a-half year agreement. As a reminder, Everspin is a subcontractor on an existing prime contract and is providing engineering services to develop and qualify Toggle MRAM process technology capabilities for U.S. defense industrial-based customers. In addition to this new contract, we also recorded strong product revenue growth, which rose 38% year-over-year and was up 9% sequentially. This growth was driven by strength in industrial automation, energy management, and aerospace and defense applications. Growth in industrial and energy management was driven by a continued recovery in customer demand, particularly in Japan and Europe, respectively. In aerospace and defense, we saw continued broad-based growth across our customer base, including several Low Earth Orbit customers who are expanding the mission profiles where Everspin MRAM delivers long-term reliability for mission-critical applications. Recently, Astro Digital selected Everspin's PERSYST 64Mb STT-MRAM for use on an upcoming Raven bus geosynchronous Earth orbit, or GEO, satellite mission. Our MRAM is deployed as a primary fail-safe memory for the system boot memory, which stores the essential code needed in case of power loss and fast access to initialize spacecraft electronics during startup or recovery. As we noted last quarter, our $14.6 million contract with the DoD contractor to develop a sustainment plan for our MRAM manufacturing facility to provide continuous onshore MRAM capabilities to their aerospace and defense customers is beginning to wind down. In the second quarter, we recognized $0.5 million in other income related to this contract and $13.3 million to date. We expect this business to continue to wind down over the coming quarters with estimated completion in the first half of 2027. Turning to some of our product development efforts. Our first [UNISYST] family of MRAM products, the 256Mb xSPI, is on schedule to tape out later this year. As a reminder, this is a test chip designed on 16- nanometer FinFET CMOS at TSMC. Engineering samples are expected to be available in early 2027, with ramp to production later in the year. The [UNISYST] family of products will serve the high-density standalone NOR flash market, which will expand our addressable market by approximately $3 billion. Our goal is to capture 5%-10% of this market in the early years and then grow further. We are pleased to announce that our high-density 128 Mb and 256Mb xSPI high-reliability parts were made available to our customers ahead of schedule. During the second quarter, we released 128 Mb high-reliability parts to production. Subsequent to the quarter end, we released all SKUs of xSPI 256 Mb density to production, including high-reliability parts. Customers now have these parts on hand to evaluate them in their designs. We kicked off our project with Microchip in April to build MRAM capabilities in their Gresham, Oregon fab. This project comprises two phases, with the first phase focused on Toggle MRAM and second phase on STT-MRAM. We are finalizing the installation of unique MRAM equipment and completing process gap analysis, if any, for the non-MRAM equipment. This project is on schedule with a goal to deliver the first qualified silicon in 18-24 months from project kickoff. We continue to see strong growth across our existing business while executing on our product pipeline and developing solutions that will further expand our addressable market and drive long-term growth. One of these future opportunities is focused on expanding our TAM in the data center market. We are planning to introduce some new products over the next three years based on the Compute Express Link, or CXL, interface. To provide a little background, in the memory hierarchy, there is 100X-1000X latency gap between storage, with a latency of approximately 100 microseconds, and main memory, with a latency of approximately 100 nanoseconds. CXL-attached random access memory can provide approximately 100X lower latency when compared to SSD solutions available today. We continue to advance our development work on CXL interface-based MRAM solutions, which will address the demand for nanosecond-class persistent memory solutions, bringing storage closer to XPU, enhancing compute and power efficiency, resulting in significant overall cost savings. We are targeting to improve XPU utilization from 60%-70% currently to as much as 90%-95%, especially from small writes, for example, meta or log data. We are currently working on developing proof of concept demo vehicles to validate the expected gains. Subsequent to quarter- end, we signed a contract with a high-performance data interface and controller company to develop and provide CXL controller IP for MRAM. We are collaborating on an AMD UltraScale+ FPGA-based platform using the CXL controller IP under development to connect to Everspin MRAM DIMMs dual inline memory modules. We plan to demonstrate this solution at the SNIA Developers Conference, or SDC, in September. We also recently announced that we signed a memorandum of understanding with MaxLinear to evaluate the use of Everspin CXL-attached MRAM with MaxLinear storage accelerators for next-generation storage and acceleration architectures. Together, we will assess opportunities to apply persistent, byte-accessible, low-latency MRAM to storage functions such as metadata, log data, write buffers, and caches with the goal of improving system performance, reliability, power efficiency, and data persistence in next-generation storage architectures. By combining Everspin's industry-leading MRAM with MaxLinear's storage accelerators, we believe we can enable new persistent memory solutions for hyperscale cloud, AI infrastructure, and enterprise Tier One customers. I will now turn it over to our CFO, Bill Cooper, who will walk you through our second quarter financials and third quarter 2026 guidance. Bill? Thank you, Sanjeev. During the second quarter, we delivered record revenue of $18.7 million, up 42% year-on-year, exceeding our guidance range of $15.5 million-$16.5 million, driven by both strong product and non-product revenue growth. MRAM product sales, which include both Toggle MRAM and STT-MRAM revenue, were $15.3 million, an increase of 38% over the second quarter of the prior- year and up 9% sequentially. Licensing, royalty, engineering services, and other revenue increased to $3.4 million from $2.1 million in Q2 of 2025, primarily due to initial revenue recognition on the $40 million subcontract agreement with the U.S. prime contractor we announced on our last earnings call. Our GAAP gross margin increased to 53.9% from 51.3% in the second quarter of 2025 due to a favorable mix from higher non-product revenue. GAAP operating expenses were $14.5 million, up from $8.7 million in the second quarter of 2025, due primarily to litigation costs of $4 million and $1.1 million of non-recurring engineering costs. Other income of $0.5 million decreased from $0.8 million in the prior- year quarter as our $14.6 million contract with the DoD contractor begins to wind down. We recorded second quarter non-GAAP net income of $2.9 million or $0.11 per diluted share based on 25.9 million weighted average diluted shares outstanding. This exceeded our guidance range of non-GAAP net income of $0-$0.03 per share and compares to non-GAAP net income of $0.7 million or $0.03 per share in the second quarter of 2025. Our reported non-GAAP results exclude the impact of stock-based compensation, litigation expenses, as well as non-recurring engineering expenses related to the build-out of the MRAM manufacturing line at Microchip's fab in Oregon. Our balance sheet remains strong and debt-free. We ended the quarter with cash and cash equivalents of $43.9 million, up $3.4 million from $40.5 million at the end of the prior- quarter. Cash flow generated from operations decreased to $0.2 million for the second quarter, down from $0.6 million in the first quarter, primarily due to litigation costs. We believe our cash and cash equivalents are sufficient to meet our anticipated capital requirements to continue to execute upon our foundry services agreement with Microchip, our subcontract agreement with the U.S. prime contractor, and continued investment in product development to support our future roadmap and enable the company to drive growth. Turning to guidance, we expect Q3 total revenue to be in the range of $19.5 million-$20.5 million and GAAP results per fully diluted share to be between a net loss of $0.05-$0.10 per share. On a non-GAAP basis, we anticipate earnings between $0.10 and $0.15 per fully diluted share. These non-GAAP figures exclude the impact of litigation costs and NRE related to the Microchip MRAM line and stock-based compensation expense. In summary, we are pleased with our solid performance this quarter and remain committed to maintaining financial discipline while focusing on scaling our business and converting additional design wins to revenue. I want to thank all of the Everspin employees for their continued contributions in supporting the company's growth. Operator, you may now open the line for questions. Thank you. At this time, we will conduct the question and answer session. As a reminder, to ask a question, you will need to press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. Please stand by while we compile the Q&A roster. Our first question comes from the line of Neil Young of Needham & Company. Your line is now open. Hey everyone. Thanks for letting me ask a question. The first question I wanted to ask was sort of on end market strength. I know you guys cited the industrial automation, energy management, and A&D as sort of the growth drivers. You talked a lot about in the aerospace and defense being driven by LEO. If I recall from some of your comments at conferences inter-quarter, I thought you guys talked a little bit about drones and maybe some strength you're seeing there. Maybe if you could just expand on anything that you're seeing outside of the LEO satellites within defense and, yeah. Thanks. Yeah. Thanks, Neil. What I would say is, certainly, right, we continue to engage in that sector. We haven't announced any particular specific deals on that area, and certainly, we still see very healthy demand across all segments of the business. Okay, thanks. The second one I wanted to ask was about the $40 million contract. Last quarter, you only had about, if I remember correctly, two months of that was recognized in the quarter. That's right. Should we expect maybe another step-up now in 3Q that it's a full- quarter, or is it not going to scale sort of in an evenly manner? Thanks. Yes, that's correct. It won't necessarily scale in a very linear manner. I would expect to see non-product in the similar area from Q2 to Q3. Okay, great. Thank you. Thank you. Our next question comes from the line of Richard Shannon of Craig-Hallum. Your line is now open. Great. Thanks, Sanjeev and Bill, for taking my questions as well. Maybe I'll ask a way of thinking about the last question more directly here in terms of the guidance for the quarter here, and thinking about it holistically here. I'd love to get a sense of the degree to which products versus licensing will be growing here. I guess I'd also love to get a sense of the quantify the amount of contribution in the second quarter from the $40 million contract so we can convey that over the third quarter as well. Let's start with that one. Thanks. Yeah. Hey, Richard. A couple of things. I would say, yes, definitely, the significant majority of the non-product revenue did come from the new $40 million subcontract and some of the revenue that was recognized for that. As Neil rightly pointed out, it was only for a partial quarter. Then, in terms of, again, as we go forward, it won't necessarily be linear, and so we'll see possibly something more like a bell curve in that as well. Okay. Fair enough then. As I oftentimes ask here, I noticed in the second quarter, your product gross margins were a bit lower than the first quarter, and kind of similar to the range that you had most of 2025. Want to get a sense of the forward outlook there. Is this the baseline to think, or can we get back towards that 50% level? Just to kind of high level here, how do you think about that? Yes. Good question. What I would say is definitely saw some headwinds in product costs, both in terms of in Q2. What we've always guided is, hey, we expect product gross margins to be in that mid-upper 40s range. Then in total, we expect the company to be north of 50% for total gross margins. Richard, just to add a little bit to that. We did see some headwinds, like Bill was saying, from price increases that we saw on the back end. I think that is impacting or directly showing up in the gross margins for our product revenue. Even though we might have made improvements from Q1 to Q2, some of them are lost in the price increases that we see with the back- end. By back- end, I mean packaging and in, at the OSATs. Right. Okay. That sounds like a sustainable dynamic here as well that you don't expect to improve any time soon. Is that fair, Sanjeev? Yeah. I mean, the price of gold, for example, right? It just keeps going up. Oh, that what it is. Okay. Yeah. Okay. Fair enough. Maybe one quick question for Bill, then maybe one or two for Sanjeev here. The difference here between the pro forma and the GAAP EPS here, I'm assuming this is mostly from legal expenses. I know you quantified this roughly $4 million in the second quarter. I didn't have time to do the math here, but is that a similar number that's baked into the third quarter as well, or how do you think about that? Yes, that's correct. We baked in a similar number. Okay, perfect. Sanjeev, I noticed that NXP has sold or has an agreement to sell the Chandler fab. Obviously noting that you've already have an agreement with Microchip to expand capacity here. How do you think about this in the context of your needs here? When the Chandler fab conveys over completely, do you expect to be out of there or not? And to what degree does Microchip alone or do you expect them to be able to cover your needs for the products that are possibly affected by the Chandler fab sale? Yeah. What we understand or what has been communicated to us, Richard, by NXP is or actually by Nokia's announcement, was that they would complete the acquisition of the Chandler facilities by Q1 of 2029. NXP retains the ownership through the end of 2028. One of the fabs, which is basically for gallium nitride, would be converted to indium phosphide through a lease that Nokia would get starting Q1 or Q2 of 2027. We don't see any interruption to our operations, at least through the end of 2028. We are in conversations, or we have some planned conversations with Nokia to understand what are their plans for Everspin. We've heard positive things, but we haven't directly spoken to them yet. In an ideal case scenario, we would have both facilities. If the business requires us to keep both facilities, that'd be great. If not, then we obviously brought on Microchip Technology so that we can actually scale production if Nokia had other plans for the fab. Okay. Good to hear that you have some continuity here, so that's good to hear. Last question from me, Sanjeev. I didn't get a chance to ask you about this after the announcement with Astro, I forget their full name, with the win for GEO sat. Yeah. This is for GEO satellites. I think this is your first win in the GEO area after having talked about LEO satellites a lot. Let me get a sense of the importance of that win, and ultimately, do you see the opportunity here being bigger for GEO, LEO, MEO, or just kind of characterize the opportunity holistically in satellites, please? Yeah, that's a good question, Richard. You're right. This is our first design win for a GEO satellite mission using our commercially developed MRAM. Obviously, it's qualified for extended temperatures. We have not done any radiation hardening for these parts that Astro Digital has designed in their satellite mission. It's really good news. I think they have figured out a way of how to take advantage of our reliability. They're using it for exactly what we've been talking about for so long. The boot speed, reliability, recording the telemetry for the satellite. They must have somehow figured out how to use this non-radiation hardened or radiation-tolerant MRAM in this GEO application. There must be some redundancy or I don't really know what they're doing. Yes, it's huge for us if they have figured it out, and they have several customers, which means that it can actually perpetuate in the GEO, MEO, and LEO missions over there. Overall, we're very excited with this partnership. Okay. That sounds very interesting. Thanks for that detail. I will jump out of line. Thank you. Thank you, Richard. Thank you. As a reminder, to ask a question, you'll need to press star one one. Our next question comes from the line of Josh Sullivan of Jones Trading. Your line is now open. Hey, good evening. Just looking at the $40 million defense contract win, what does the pipeline look like in defense at this point? Josh, thank you for joining the call and asking the question. Do you mean what is the pipeline for future contracts, or how the revenue would be recognized from this $40 million contract? Your bid pipeline within similar applications. Yeah. As you know, we've had a few contracts now over the last five years with the U.S. government. We work very closely with them, keeping them informed of the technology development that we're doing at Everspin. Whenever there's an overlap between the goals of the U.S. government and Everspin's roadmap, it typically leads to, first, a small contract and then a bigger contract to actually do the development. We do have a few irons in the fire, but there's nothing concrete yet. I do think that we will continue to work with the U.S. government on various STT-MRAM, SOT-MRAM projects as well. Obviously, we are a subcontractor in all our contracts to a prime contractor. We're always a sub and not the prime. I guess, as far as the European market, growing drones and space exposure, what is your footprint as far as those markets? The European Space Agency, and the DoD, I think those are two of our primary customers in the aerospace and defense industry. We work very closely with both of them. I would say that we have a pretty good footprint for the LEO satellites as well as any helicopters, the helicopter taxis that we have, the eVTOLs, is the phrase that we have in our investor deck. I think those are the applications that we are designed in and have activity ongoing for the last couple of years. We expect them to grow. I guess just lastly, as far as the CXL interface and three-year product roadmap you mentioned, can you just provide some color on what that rollout might look like and kind of the external guidepoints we might see? I would say, first of all, that it's a huge market, and I think it's very well-suited for using MRAM technology. Having said that, I would also say that we are in the early stages of just building proof of concepts and prototypes, and that's what I mentioned in my prepared remarks. We'll have our first proof of concept here at the end of September. That'll actually, hopefully, successfully demonstrate the use of the CXL protocol using the MRAM technology. With that solution, then we'll actually be able to work with MaxLinear, for example, in their storage accelerator systems to improve the efficiency of the accelerators that they're using. We believe that we could actually impact the efficiency by almost 15%-25%. I think it's a huge market, but it's a little bit early for me to say how the revenue will build up over the next three years or so. I think once we have the prototypes working and we have a design identified, I think then we can talk about projections of revenue and percent of market capture. Great. Thank you for your time. Thank you. Thank you. This concludes the question and answer session. I'd like to thank you for your participation in today's conference. This does conclude the program, and you may now disconnect.