Atomera Provides Second Quarter 2020 Results
Atomera Incorporated (NASDAQ: ATOM) reported its second-quarter financial results, showing a revenue of $0, down from $70,000 in Q2 2019. The net loss stood at $3.8 million, or ($0.21) per share, compared to a net loss of $3.6 million, or ($0.24) per share, a year earlier. The company announced a record 17 customer engagements in Phase 3 of its technology development and completed a $10 million public offering. As of June 30, 2020, Atomera had $18 million in cash and equivalents, reflecting financial stability despite ongoing losses.
- Achieved record 17 customer engagements in Phase 3, indicating progress in technology adoption.
- Completed $10 million public offering, improving financial liquidity.
- Recent MST-SP technology results on customer silicon show promise for future applications.
- Reported $0 revenue for Q2 2020, a significant decline from $70,000 in Q2 2019.
- Net loss increased to $3.8 million from $3.6 million year-over-year.
- Adjusted EBITDA loss widened to $3.0 million compared to a loss of $2.9 million in the previous year.
LOS GATOS, Calif., Aug. 05, 2020 (GLOBE NEWSWIRE) -- Atomera Incorporated (NASDAQ: ATOM), a semiconductor materials and intellectual property licensing company focused on deploying its proprietary technology into the semiconductor industry, today provided a corporate update and announced financial results for the second quarter ended June 30, 2020.
Company Highlights
- Grew to a record 17 customer engagements in Phase 3
- Validated Atomera’s breakthrough MST-SP results on customer silicon
- Completed
$10 million public offering of common stock
Management Commentary
“We are very pleased to continue making significant technical progress toward license agreements with large semiconductor manufacturers. Despite some minor slowdowns due to the pandemic, we have strengthened our overall pipeline by adding a 17th customer engagement to the critical Phase 3 of our engagement cycle,” said Scott Bibaud, President and CEO. “With recent promising results of our MST-SP technology on customer silicon, we are increasingly optimistic that adoption in 5 volt power and analog chips is closer than ever.”
Second Quarter 2020 Financial Results
During the second quarter of 2020, revenue was
The Company had
The total number of shares outstanding was 19.8 million as of June 30, 2020.
Second Quarter 2020 Results Conference Call and Webcast
Atomera will host a conference call today to discuss its financial results and recent progress.
Date: Wednesday, Aug. 5, 2020
Time: 2:00 p.m. PT (5:00 p.m. ET)
Webcast: Accessible at www.atomera.com
Phone: (844) 263-8318 (domestic); +1 (213) 358-0960 (international)
Replay: Available until August 12, 2020; (855) 8592056 (domestic); +1(404) 537-3406 (international); passcode 921-6988.
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 has developed Mears Silicon Technology™ ("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 nanoscaling technologies already in the semiconductor industry roadmap.
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 and we have not yet commenced principal revenue producing operations or entered into a definitive royalty-based manufacturing and distribution license agreement with regard to our MST technology, thus subjecting us to all of the risks inherent in an early-stage enterprise; (2) risks related to our ability to advance the licensing arrangements with our initial integration licensees, Asahi Kasei Microdevices, ST Microelectronics and our fabless licensee, to royalty-based manufacturing and distribution licenses or our ability to add other licensees; (3) 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; (4) impact of the coronavirus pandemic on our customers, partners, internal operations and market conditions, including our ability to access financial markets on favorable terms, (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 Prospectus Supplement filed pursuant to Rule 424(b)(5) with the SEC on May 13, 2020. 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
Condensed Balance Sheets
(in thousands, except per share data)
| June 30, | December 31, | |||||||
| 2020 | 2019 | |||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 17,965 | $ | 14,871 | ||||
| Prepaid expenses and other current assets | 255 | 132 | ||||||
| Total current assets | 18,220 | 15,003 | ||||||
| Property and equipment, net | 53 | 63 | ||||||
| Operating lease right-of-use asset | 89 | 161 | ||||||
| Long-term prepaid rent | 450 | – | ||||||
| Security deposit | 13 | 13 | ||||||
| Total assets | $ | 18,825 | $ | 15,240 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 586 | $ | 315 | ||||
| Accrued expenses | 178 | 145 | ||||||
| Accrued payroll related expenses | 405 | 819 | ||||||
| Current operating lease liability | 78 | 152 | ||||||
| Deferred revenue | – | 37 | ||||||
| Total liabilities | 1,247 | 1,468 | ||||||
| Stockholders’ equity: | ||||||||
| Preferred stock, | – | – | ||||||
| Common stock, | 20 | 17 | ||||||
| Additional paid-in capital | 160,244 | 149,017 | ||||||
| Accumulated deficit | (142,686 | ) | (135,262 | ) | ||||
| Total stockholders’ equity | 17,578 | 13,772 | ||||||
| Total liabilities and stockholders’ equity | $ | 18,825 | $ | 15,240 | ||||
Atomera Incorporated
Condensed Statements of Operations
(Unaudited)
(in thousands, except per share data)
| Three Months ended June 30, | Six Months ended June 30, | |||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||
| Revenue | $ | — | $ | 70 | $ | 62 | $ | 141 | ||||||||
| Cost of revenue | — | (20 | ) | (13 | ) | (20 | ) | |||||||||
| Gross margin | — | 50 | 49 | 121 | ||||||||||||
| Operating expenses | ||||||||||||||||
| Research and development | 2,086 | 2,057 | 4,148 | 4.184 | ||||||||||||
| General and administrative | 1,480 | 1,488 | 2,925 | 2,809 | ||||||||||||
| Selling and marketing | 215 | 225 | 440 | 472 | ||||||||||||
| Total operating expenses | 3,781 | 3,770 | 7,513 | 7,465 | ||||||||||||
| Loss from operations | (3,781 | ) | (3,720 | ) | (7,464 | ) | (7,344 | ) | ||||||||
| Other income | ||||||||||||||||
| Interest income | 2 | 86 | 40 | 176 | ||||||||||||
| Total other income | 2 | 86 | 40 | 176 | ||||||||||||
| Net loss | $ | (3,779 | ) | $ | (3,634 | ) | $ | (7,424 | ) | $ | (7,168 | ) | ||||
| Net loss per common share, basic and diluted | $ | (0.21 | ) | $ | (0.24 | ) | $ | (0.43 | ) | $ | (0.47 | ) | ||||
| Weighted average number of common shares outstanding, basic and diluted | 17,975 | 15,423 | 17,367 | 15,104 | ||||||||||||
Atomera Incorporated
Reconciliation to Non-GAAP EBITDA
(Unaudited)
| Three Months Ended June 30 | Six Months Ended June 30, | ||||||||||||||||||||||||
| 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||
| Net loss (GAAP) | $ | (3,779 | ) | $ | (3,634 | ) | $ | (7,424 | ) | $ | (7,168 | ) | |||||||||||||
| Add (subtract) the following items: | |||||||||||||||||||||||||
| Interest income | (2 | ) | (86 | ) | (40 | ) | (176 | ) | |||||||||||||||||
| Depreciation and amortization | 11 | 11 | 21 | 21 | |||||||||||||||||||||
| Warrant modification | — | — | 139 | — | |||||||||||||||||||||
| Stock-based compensation | 766 | 788 | 1,395 | 1,482 | |||||||||||||||||||||
| Adjusted EBITDA (non-GAAP) | $ | (3,004 | ) | $ | (2,921 | ) | $ | (5,909 | ) | $ | (5,841 | ) | |||||||||||||
Investor Contact:
Bishop IR
Mike Bishop
(415) 894-9633
investor@atomera.com
FAQ
What were Atomera's financial results for Q2 2020?
How many customer engagements does Atomera have as of August 2020?
What is the significance of Atomera's MST-SP technology results?
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