Atomera Provides Fourth Quarter and Fiscal 2023 Results
- Atomera reports revenue of $550,000 for the fourth quarter of 2023
- Net loss of ($4.6) million in the fourth quarter of 2023
- Adjusted EBITDA loss of ($3.8) million in the fourth quarter of 2023
- Revenue for fiscal year 2023 was $550,000, compared to $382,000 in fiscal 2022
- Net loss of ($19.8) million for fiscal year 2023
- Adjusted EBITDA loss of ($16.6) million for fiscal year 2023
- Cash, cash equivalents, and short-term investments of $19.5 million as of December 31, 2023
- Total shares outstanding were 26.1 million as of December 31, 2023
- None.
Insights
Reviewing the financial results of Atomera Incorporated, the revenue increase to $550,000 for the fourth quarter indicates a positive trajectory in the company's commercialization efforts for its MST technology. However, the persistent net loss, now at ($4.6) million, alongside a slight increase in the loss per share, suggests that the company is still in a heavy investment phase, which is common for emerging tech companies in the semiconductor industry. The year-over-year increase in revenue is a sign of progress, but the widening adjusted EBITDA loss from ($14.1) million to ($16.6) million raises concerns about the company's operational efficiency and cost management.
From a financial perspective, the cash reserves of $19.5 million provide a buffer for continued R&D and operational expenses. Yet, the decrease from $21.2 million the previous year indicates a burn rate that investors should monitor closely. The market will likely react to these results with a focus on the company's ability to convert technological milestones into sustainable revenue streams and eventually, profitability.
The semiconductor industry is known for rapid innovation and high competition. Atomera's MST technology installation in two customer fabs is a critical step that can potentially disrupt the market if it proves to scale effectively. The CEO's statement on the industry's readiness to adopt new technologies and the performance improvements MST offers is bullish. However, the actual market adoption rate and the subsequent impact on the company's financials will be key to understanding its future growth potential.
The technology's cost-effective advantages could position Atomera well within the industry, particularly among fabs and foundries looking to enhance their competitive edge. The strategic focus on moving customers toward the royalty phase is crucial, as it will determine the long-term revenue model and stability. Investors will be interested in the rate of customer conversion and the scalability of MST installations, which are pivotal for long-term success.
MST, or Mears Silicon Technology, is a proprietary technology that enhances the performance of semiconductor wafers. Atomera's progress in installing MST at two customer sites indicates a move from the developmental stage to practical, real-world applications. This transition is significant because it demonstrates not only technical viability but also initial market acceptance.
Given the complexity of semiconductor manufacturing, the adoption of MST technology could lead to improved semiconductor performance, which is highly valued in the industry. The ability to deliver cost-effective improvements in a competitive market like semiconductors is a strong selling point for Atomera. However, the industry will be looking for consistent results and evidence of long-term reliability before wider adoption can occur. The impact on business will depend on how quickly Atomera can move from these initial installations to widespread adoption, translating into a reliable and growing stream of royalty revenue.
Revenue in the Fourth Quarter Resulting from MST Installation at Licensee
LOS GATOS, CA / ACCESSWIRE / February 13, 2024 / Atomera Incorporated (NASDAQ:ATOM), a semiconductor materials and technology licensing company, today provided a corporate update and announced financial results for the fourth quarter and fiscal year ended December 31, 2023.
Recent Company Highlights
- Achieved revenue from commercial licensee for two milestones
- Second customer completed installation of MST technology
- Executed an MSTcad license with a large semiconductor manufacturer
Management Commentary
"There is clear evidence the company is executing on its strategy to commercialize MST. With our technology now installed at two customer fabs, we're focusing on moving additional customers along the engagement pipeline toward the royalty phase," said Scott Bibaud, President and CEO. "The semiconductor industry is currently in an ideal state to adopt new technology and the performance improvements enabled by MST are compelling to fabs and foundries seeking to gain cost-effective advantages in highly competitive markets."
Financial Results
Revenue for the fourth quarter of 2023 was
For fiscal year 2023, revenue was
The Company had
The total number of shares outstanding was 26.1 million as of December 31, 2023.
Fourth Quarter and Fiscal Year 2023 Results Webinar
Atomera will host a live video webinar today to discuss its financial results and recent progress.
Date: Tuesday, Feb. 13, 2024
Time: 2:00 p.m. PT (5:00 p.m. ET)
Webcast: Accessible at https://ir.atomera.com
Note about Non-GAAP Financial Measures
In addition to the unaudited results presented in accordance with generally accepted accounting principles, or GAAP, in this press release, Atomera presents adjusted EBITDA, which is a non-GAAP financial measure. Adjusted EBITDA is determined by taking net loss and eliminating the impacts of interest, depreciation, amortization and stock-based compensation. Our definition of adjusted EBITDA may not be comparable to the definitions of similarly-titled measures used by other companies. We believe that this non-GAAP financial measure, viewed in addition to and not in lieu of our reported GAAP results, provides useful information to investors by providing a more focused measure of operating results. This metric is used as part of the Company's internal reporting to evaluate its operations and the performance of senior management. A table reconciling this measure to the comparable GAAP measure is available in the accompanying financial tables below.
About Atomera Incorporated
Atomera Incorporated is a semiconductor materials and technology licensing company focused on deploying its proprietary, silicon-proven technology into the semiconductor industry. Atomera has developed Mears Silicon TechnologyTM (MST®), which increases performance and power efficiency in semiconductor transistors. MST can be implemented using equipment already deployed in semiconductor manufacturing facilities and is complementary to other nano-scaling technologies already in the semiconductor industry roadmap. More information can be found at www.atomera.com.
Safe Harbor
This press release contains forward-looking statements concerning Atomera Incorporated, including statements regarding the prospects for the semiconductor industry generally and the ability of our MST technology to significantly improve semiconductor performance. Those forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause actual results to differ materially. Among those factors are: (1) the fact that, to date, we have only recognized minimal engineering services and licensing revenues thus subjecting us to all of the risks inherent in an early-stage enterprise; (2) the risk that licensees or JDA customers do not advance to royalty-based manufacturing and distribution licenses; (3) our ability to add other licensees and/or JDA customers; (4) risks related to our ability to raise sufficient capital, as and when needed, to pursue the further development, licensing and commercialization of our MST technology; (5) our ability to protect our proprietary technology, trade secrets and know-how and (6) those other risks disclosed in the section "Risk Factors" included in our Annual Report on Form 10-K filed with the SEC on February 15, 2023 and in our Quarterly Report on Form 10-Q filed with the SEC on November 1, 2023. We caution readers not to place undue reliance on any forward-looking statements. We do not undertake, and specifically disclaim any obligation, to update or revise such statements to reflect new circumstances or unanticipated events as they occur.
-- Financial Tables Follow --
Atomera Incorporated
Balance Sheets
(in thousands, except per share data)
| December 31, | December 31, | |||||||
| 2023 | 2022 | |||||||
| (Unaudited) | ||||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 12,591 | $ | 21,184 | ||||
Short-term investments | 6,940 | - | ||||||
Unbilled contracts receivable | 550 | - | ||||||
Interest receivable | 79 | - | ||||||
Prepaid expenses and other current assets | 244 | 418 | ||||||
Total current assets | 20,404 | 21,602 | ||||||
Property and equipment, net | 100 | 158 | ||||||
Long-term prepaid maintenance and supplies | 91 | 91 | ||||||
Security deposit | 14 | 14 | ||||||
Operating lease right-of-use asset | 517 | 700 | ||||||
Financing lease right-of-use-asset | 2,903 | 4,164 | ||||||
Total assets | $ | 24,029 | $ | 26,729 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 618 | $ | 397 | ||||
Accrued expenses | 222 | 173 | ||||||
Accrued payroll related expenses | 1,382 | 967 | ||||||
Current operating lease liability | 264 | 245 | ||||||
Current financing lease liability | 1,328 | 1,126 | ||||||
Total current liabilities | 3,814 | 2,908 | ||||||
Long-term operating lease liability | 295 | 521 | ||||||
Long-term financing lease liability | 1,750 | 2,986 | ||||||
Total liabilities | 5,859 | 6,415 | ||||||
Commitments and contingencies | - | - | ||||||
Stockholders' equity: | ||||||||
Preferred stock | - | - | ||||||
Common stock: | 26 | 24 | ||||||
Additional paid-in capital | 221,229 | 203,585 | ||||||
Accumulated deficit | (203,085 | ) | (183,295 | ) | ||||
Total stockholders' equity | 18,170 | 20,314 | ||||||
Total liabilities and stockholders' equity | $ | 24,029 | $ | 26,729 | ||||
Atomera Incorporated
Statements of Operations
(in thousands, except per share data)
| Three Months Ended | Year Ended | |||||||||||||
| December 31, | September 30, | December 31, | December 31, | |||||||||||
| 2023 | 2023 | 2022 | 2023 | 2022 | ||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||
| Revenue | $ | 550 | $ | - | $ | 5 | $ | 550 | $ | 382 | ||||
| Cost of revenue | (28) | - | - | (28) | (81) | |||||||||
| Gross margin | 522 | - | 5 | 522 | 301 | |||||||||
| Operating expenses | ||||||||||||||
| Research and development | 2,992 | 3,305 | 2,523 | 12,525 | 10,038 | |||||||||
| General and administrative | 1,875 | 1,683 | 1,559 | 7,075 | 6,441 | |||||||||
| Selling and marketing | 452 | 365 | 329 | 1,599 | 1,348 | |||||||||
| Total operating expenses | 5,319 | 5,353 | 4,411 | 21,199 | 17,827 | |||||||||
| Loss from operations | (4,797) | (5,353) | (4,406) | (20,677) | (17,526) | |||||||||
| Other income (expense) | ||||||||||||||
| Interest income | 195 | 177 | 189 | 723 | 340 | |||||||||
| Accretion income | 62 | 112 | - | 283 | - | |||||||||
| Other income (expense), net | 3 | 72 | - | 75 | - | |||||||||
| Interest expense | (43) | (47) | (55) | (194) | (255) | |||||||||
| Total other income (expense), net | 217 | 314 | 134 | 887 | 85 | |||||||||
| Net loss | $ | (4,580) | $ | (5,039) | $ | (4,272) | $ | (19,790) | $ | (17,441) | ||||
| Net loss per common share, basic and diluted | $ | (0.18) | $ | (0.20) | $ | (0.18) | $ | (0.80) | $ | (0.75) | ||||
| Weighted average number of common shares outstanding, basic and diluted | 25,404 | 25,255 | 23,538 | 24,755 | 23,157 | |||||||||
Atomera Incorporated
Reconciliation to Non-GAAP EBITDA
(Unaudited)
| Three Months Ended | Year Ended | |||||||||||||||||||
| December 31, | September 30, | December 31, | December 31, | |||||||||||||||||
| 2023 | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||
| Net loss (GAAP) | $ | (4,580 | ) | $ | (5,039 | ) | $ | (4,272 | ) | $ | (19,790 | ) | $ | (17,441 | ) | |||||
| Depreciation and amortization | 17 | 20 | 19 | 77 | 77 | |||||||||||||||
| Stock-based compensation | 1,015 | 1,041 | 893 | 4,013 | 3,367 | |||||||||||||||
| Interest income | (195 | ) | (177 | ) | (189 | ) | (723 | ) | (340 | ) | ||||||||||
| Accretion income | (62 | ) | (112 | ) | - | (283 | ) | - | ||||||||||||
| Other income, net | (3 | ) | (72 | ) | - | (75 | ) | - | ||||||||||||
| Interest expense | 43 | 47 | 55 | 194 | 255 | |||||||||||||||
| Net loss non-GAAP EBITDA | $ | (3,765 | ) | $ | (4,292 | ) | $ | (3,494 | ) | $ | (16,587 | ) | $ | (14,082 | ) | |||||
Investor Contact:
Bishop IR
Mike Bishop
(415) 894-9633
investor@atomera.com
SOURCE: Atomera, Inc
View the original press release on accesswire.com
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