Atomera Provides Second Quarter 2024 Results

Rhea-AI Summary

Atomera (NASDAQ:ATOM), a semiconductor materials and technology licensing company, reported its Q2 2024 financial results. Key highlights include:

- Announced availability of MST® RFSOI wafer substrates for cellular communication products
- Added new VP of Marketing and Business Development
- Submitted first proposal under the Chips and Sciences Act
- Net loss of ($4.4) million, or ($0.16) per share, compared to ($5.2) million, or ($0.21) per share in Q2 2023
- Adjusted EBITDA loss of ($3.6) million, improved from ($4.3) million in Q2 2023
- Cash, cash equivalents, and short-term investments of $18.3 million as of June 30, 2024
- 27.6 million total shares outstanding as of June 30, 2024

The company reports progress in technology development and commercial proposals, with expectations to convert opportunities into license revenue.

Positive

• Announced availability of MST® RFSOI wafer substrates solution for leading-edge cellular communication products
• Reduced net loss to ($4.4) million in Q2 2024 from ($5.2) million in Q2 2023
• Improved adjusted EBITDA loss to ($3.6) million from ($4.3) million year-over-year

Negative

• Continued net loss of ($4.4) million in Q2 2024
• Decrease in cash, cash equivalents, and short-term investments to $18.3 million from $19.5 million at the end of 2023

Insights

Financial Analyst

Atomera's Q2 2024 results reveal a mixed picture for investors. The company's net loss narrowed to $4.4 million ($0.16 per share) from $5.2 million ($0.21 per share) in Q2 2023, indicating some improvement in financial performance. However, the absence of revenue figures is concerning, suggesting the company is still in pre-revenue stage.

The reduction in adjusted EBITDA loss from $4.3 million to $3.6 million year-over-year is a positive sign, pointing to better cost management. Yet, the cash position declined from $19.5 million at the end of 2023 to $18.3 million as of June 30, 2024. This 6.2% decrease in cash reserves over six months raises questions about the company's burn rate and future funding needs.

The announcement of MST® RFSOI wafer substrates for cellular communication products could be a potential game-changer, but without concrete revenue projections or customer commitments, its impact remains speculative. The addition of a new VP of Marketing and Business Development might help in converting opportunities into revenue, but results are yet to be seen.

Investors should closely monitor Atomera's progress in converting its technological developments into tangible financial results. The company's ability to secure licenses and generate revenue in the coming quarters will be important for its long-term viability and stock performance.

Semiconductor Industry Expert

Atomera's Q2 2024 update highlights both progress and challenges in the semiconductor materials space. The introduction of MST® RFSOI wafer substrates for cellular communication products is a significant technological advancement. RFSOI (Radio Frequency Silicon-on-Insulator) is important for 5G and future 6G applications, offering improved performance and power efficiency. Atomera's solution could potentially address key challenges in this rapidly growing market segment.

However, the lack of specific customer announcements or revenue figures related to this new product is noteworthy. In the semiconductor industry, the path from technology development to mass production and revenue generation can be lengthy and uncertain. The company's mention of a "lead customer on the path to production" is promising, but without more details, it's difficult to gauge the timeline or potential impact.

The submission of a proposal under the CHIPS and Science Act is an interesting development. If successful, this could provide Atomera with government support and potential collaborations with major industry players. However, the competitive landscape for CHIPS Act funding is intense and the outcome remains uncertain.

Atomera's focus on technology development across multiple market segments demonstrates a diversified approach, which could mitigate risks. However, the company needs to show concrete progress in converting these developments into license revenue to prove the viability of its business model in the highly competitive semiconductor industry.

LOS GATOS, CA / ACCESSWIRE / July 30, 2024 / Atomera Incorporated (NASDAQ:ATOM), a semiconductor materials and technology licensing company, today provided a corporate update and announced financial results for the second quarter ended June 30, 2024.

Recent Company Highlights

• Announced the availability of an MST^® RFSOI wafer substrates solution for leading-edge cellular communication products

• Added a new VP of Marketing and Business Development, Shawn Thomas

• Submitted first proposal under the Chips and Sciences Act

Management Commentary

"Atomera continues to make good progress in technology development and commercial proposals across our targeted market segments, and with our lead customer on the path to production," said Scott Bibaud, President and CEO. "With the recent addition of our strong new leadership in business development, we expect to convert these opportunities and others into license revenue for the company."

Financial Results

The Company incurred a net loss of ($4.4) million, or ($0.16) per basic and diluted share in the second quarter of 2024, compared to a net loss of ($5.2) million, or ($0.21) per basic and diluted share, for the second quarter of 2023. Adjusted EBITDA (a non-GAAP financial measure) in the second quarter of 2024 was a loss of ($3.6) million compared to an adjusted EBITDA loss of ($4.3) million in the second quarter of 2023.

The Company had $18.3 million in cash, cash equivalents and short-term investments as of June 30, 2024, compared to $19.5 million as of December 31, 2023.

The total number of shares outstanding was 27.6 million as of June 30, 2024.

Second Quarter 2024 Results Webinar

Atomera will host a live video webinar today to discuss its financial results and recent progress.
Date: Tuesday, July 30, 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 Technology^TM (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 and we have not yet commenced principal revenue producing operations, thus subjecting us to all of the risks inherent in an early-stage enterprise; (2) the risk that STMicroelectronics does not proceed with qualification of MST in its manufacturing process or does not take MST-enabled products to market, (3) risks related to our ability to successfully complete the milestones in our joint development agreements or, even if successfully completed, to reach a commercial distribution license with our JDA customers; (4) risks related to our ability to advance licensing arrangements with our integration licensees to royalty-based manufacturing and distribution licenses or our ability to add other licensees; (5) 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; (6) our ability to protect our proprietary technology, trade secrets and know-­how and (7) 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, 2024. 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,				March 31,				December 31,
		2024				2024				2023
		(Unaudited)				(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents		$	14,484				14,806			$	12,591
Short-term investments			3,804				4,458				6,940
Accounts receivable			6				-				-
Unbilled contracts receivable			-				-				550
Interest receivable			74				73				79
Prepaid expenses and other current assets			578				328				244
Total current assets			18,946				19,665				20,404
Property and equipment, net			75				83				100
Long-term prepaid maintenance and supplies			91				91				91
Security deposit			14				14				14
Operating lease right-of-use asset			401				459				517
Financing lease right-of-use-asset			2,341				2,622				2,903
Total assets		$	21,868			$	22,934			$	24,029
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable		$	646			$	601			$	618
Accrued expenses			249				210				222
Accrued payroll related expenses			594				454				1,382
Current operating lease liability			256				263				264
Current financing lease liability			1,386				1,357				1,328
Deferred revenue			13				17				-
Total current liabilities			3,144				2,902				3,814
Long-term operating lease liability			137				194				295
Long-term financing lease liability			1,108				1,431				1,750
Total liabilities			4,389				4,527				5,859
Commitments and contingencies
Stockholders' equity:
Preferred stock $0.001 par value, authorized 2,500 shares; none issued and outstanding as of June 30, 2024, March 31, 2024 and December 31, 2023			-				-				-
Common stock: $0.001 par value, authorized 47,500 shares; 27,622 shares issued and 27,610 outstanding as of June 30, 2024; 26,905 shares issued and 26,885 outstanding as of March 31, 2024; and 26,107 shares issued and outstanding as of December 31, 2023			28				27				26
Additional paid-in capital			229,726				226,288				221,229
Other comprehensive income(loss)			(7	)			(1	)			-
Accumulated deficit			(212,268	)			(207,907	)			(203,085	)
Total stockholders' equity			17,479				18,407				18,170
Total liabilities and stockholders' equity		$	21,868			$	22,934			$	24,029

Atomera Incorporated
Condensed Statements of Operations
(Unaudited)
(in thousands, except per share data)

		Three Months Ended												Six Months Ended
		June 30,				March 31,				June 30,				June 30,
		2024				2024				2023				2024				2023
Revenue		$	72			$	18			$	-			$	90			$	-
Cost of revenue			(74	)			(33	)			-				(107	)			-
Gross margin			(2	)			(15	)			-				(17	)			-
Operating expenses
Research and development			2,589				2,858				3,192				5,447				6,228
General and administrative			1,832				1,811				1,775				3,643				3,517
Selling and marketing			207				350				393				557				782
Total operating expenses			4,628				5,019				5,360				9,647				10,527
Loss from operations			(4,630	)			(5,034	)			(5,360	)			(9,664	)			(10,527
Other income (expense)
Interest income			185				205				152				390				351
Accretion income			47				46				107				93				109
Interest expense			(35	)			(39	)			(51	)			(74	)			(104
Other income, net			72				-				-				72				-
Total other income (expense), net			269				212				208				481				356
Net loss		$	(4,361	)		$	(4,822	)		$	(5,152	)		$	(9,183	)		$	(10,171
Net loss per common share, basic and diluted		$	(0.16	)		$	(0.19	)		$	(0.21	)		$	(0.35	)		$	(0.42
Weighted average number of common shares outstanding, basic and diluted			26,467				26,038				24,677				26,253				24,171

Atomera Incorporated
Reconciliation to Non-GAAP EBITDA
(Unaudited)

		Three Months Ended												Six Months Ended
		June 30,				March 31,				June 30,				June 30,
		2024				2024				2023				2024				2023
Net loss (GAAP)		$	(4,361	)		$	(4,822	)		$	(5,152	)		$	(9,183	)		$	(10,171	)
Depreciation and amortization			13				17				20				30				40
Stock-based compensation			987				1,024				1,030				2,011				1,957
Interest income			(185	)			(205	)			(152	)			(390	)			(351	)
Accretion income			(47	)			(46	)			(107	)			(93	)			(109	)
Interest expense			35				39				51				74				104
Other income, net			(72	)			-				-				(72	)			-
Net loss non-GAAP EBITDA		$	(3,630	)		$	(3,993	)		$	(4,310	)		$	(7,623	)		$	(8,530	)

Investor Contact:

Bishop IR
Mike Bishop
(415) 894-9633
investor@atomera.com

SOURCE: Atomera, Inc

View the original press release on accesswire.com

FAQ

What was Atomera's (ATOM) net loss for Q2 2024?

Atomera (ATOM) reported a net loss of ($4.4) million, or ($0.16) per basic and diluted share, for the second quarter of 2024.

How much cash did Atomera (ATOM) have as of June 30, 2024?

Atomera (ATOM) had $18.3 million in cash, cash equivalents, and short-term investments as of June 30, 2024.

What new product did Atomera (ATOM) announce in Q2 2024?

Atomera (ATOM) announced the availability of an MST® RFSOI wafer substrates solution for leading-edge cellular communication products in Q2 2024.

How did Atomera's (ATOM) Q2 2024 results compare to Q2 2023?

Atomera's (ATOM) net loss improved to ($4.4) million in Q2 2024 from ($5.2) million in Q2 2023, and adjusted EBITDA loss improved to ($3.6) million from ($4.3) million year-over-year.