Everspin Technologies, Inc. Implements Reorganization Plan Which Includes Reduction in Headcount of Approximately 15%; Announces Executive Changes, Effective on January 31, 2020
January 14, 2020 at 02:57 am IST
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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 Everspin's 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.
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 Everspin's principal financial and accounting officer on that date. As a result of the above, on January 31, 2020, Matthew Tenorio, Everspin's Corporate Controller, will become Everspin's Interim Chief Financial Officer and Everspin's principal financial and accounting officer. Mr. Tenorio, age 57, has served as Corporate Controller since November 2019 and as Operations Controller from July 2019 to November 2019.
Everspin Technologies, Inc. is engaged in providing magneto resistive random-access memory (MRAM) solutions. The Company's MRAM solutions offer non-volatile memory with the speed and endurance of random-access memory (RAM) and enable the protection of mission-critical data, particularly in the event of a power interruption or failure. Its portfolio of MRAM technologies includes Toggle MRAM and Spin-transfer Torque MRAM (STT-MRAM). Toggle MRAM products include industry standard interfaces, including Parallel, Serial Peripheral Interface (SPI) and Quad SPI (QSPI) interfaces. Its STT-MRAM technology delivers products in dynamic random-access memory (DRAM), SRAM and NOR Flash applications. It offers its products with DDR3 and DDR4 derivative interfaces, facilitating the replacement of battery-backed DRAM with STT-MRAM. Its 3D Tunnel Magneto Resistance (TMR) sensors provide high magnetic sensitivity in a single component that performs 3D magnetic field measurements in a monolithic solution.
Everspin Technologies, Inc. Implements Reorganization Plan Which Includes Reduction in Headcount of Approximately 15%; Announces Executive Changes, Effective on January 31, 2020