Atomera Provides Third Quarter 2020 Results
Atomera Incorporated (NASDAQ: ATOM) reported its Q3 2020 financial results, showing no revenue compared to $254,000 in Q3 2019. The net loss increased to $3.6 million, or ($0.19) per share. Adjusted EBITDA also worsened, reporting a loss of $2.7 million against $2.4 million a year prior. While the company bolstered its balance sheet with $8.6 million from its At-The-Market equity program, its cash reserves grew to $25.3 million. Management highlighted advancements in customer and R&D developments, with plans for a joint development agreement to accelerate commercialization.
- Strengthened balance sheet with $8.6 million from ATM equity program.
- Increased cash reserves to $25.3 million from $14.9 million at year-end 2019.
- Progress towards a joint development agreement which could accelerate commercialization of MST.
- Revenue of $0 in Q3 2020 compared to $254,000 in Q3 2019.
- Net loss increased to $3.6 million in Q3 2020 from $3.1 million in Q3 2019.
- Adjusted EBITDA loss increased to $2.7 million from $2.4 million year-over-year.
LOS GATOS, Calif., Oct. 29, 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 third quarter ended Sept. 30, 2020.
Company Highlights
- Commenced MST deposition on 300mm wafers on new epi tool
- Achieved further gains on MST-SP’s industry leading performance
- Bolstered balance sheet with proceeds of At-The-Market (ATM) equity program
Management Commentary
“Atomera made excellent progress on customer and R&D developments in the third quarter,” said Scott Bibaud, President and CEO. “We believe we are drawing closer to a joint development agreement encompassing development, licensing and manufacturing, which we believe will decrease the time to commercialization of MST. As our 300mm wafer deposition capability comes online, paired with our new TCAD capabilities, we believe we are poised to accelerate customers’ time to production. With our ATM facility, we strengthened the balance sheet and positioned the Company for the next phase of growth.”
Third Quarter 2020 Financial Results
During the third quarter of 2020, revenue was
The Company had
Third Quarter 2020 Results Conference Call and Webcast
Atomera will host a conference call today to discuss its financial results and recent progress.
Date: Thursday, Oct. 29, 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); passcode 6268059
Replay: Available until Nov. 5, 2020; (855) 859-2056 (domestic); +1(404) 537-3406 (international); passcode 6268059.
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 nano-scaling 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 September 2, 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) | ||||||||
| September 30, | December 31, | |||||||
| 2020 | 2019 | |||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 25,297 | $ | 14,871 | ||||
| Prepaid expenses and other current assets | 181 | 132 | ||||||
| Total current assets | 25,478 | 15,003 | ||||||
| Property and equipment, net | 87 | 63 | ||||||
| Operating lease right-of-use asset | 735 | 161 | ||||||
| Long-term prepaid rent | 450 | — | ||||||
| Security deposit | 13 | 13 | ||||||
| Total assets | $ | 26,763 | $ | 15,240 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 563 | $ | 315 | ||||
| Accrued expenses | 234 | 145 | ||||||
| Accrued payroll related expenses | 511 | 819 | ||||||
| Current operating lease liability | 92 | 152 | ||||||
| Deferred revenue | — | 37 | ||||||
| Total current liabilities | 1,400 | 1,468 | ||||||
| Long term operating lease liability | 631 | — | ||||||
| Total liabilities | 2,031 | 1,468 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders’ equity: | ||||||||
| Preferred stock, | — | — | ||||||
| Common stock, | 21 | 17 | ||||||
| Additional paid-in capital | 170,975 | 149,017 | ||||||
| Accumulated deficit | (146,264 | ) | (135,262 | ) | ||||
| Total stockholders’ equity | 24,732 | 13,772 | ||||||
| Total liabilities and stockholders’ equity | $ | 26,763 | $ | 15,240 | ||||
| Atomera Incorporated Condensed Statements of Operations (Unaudited) (in thousands, except per share data) | ||||||||||||||||
| Three Months ended September 30, | Nine Months ended September 30, | |||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||
| Revenue | $ | — | $ | 254 | $ | 62 | $ | 395 | ||||||||
| Cost of revenue | — | (204 | ) | (13 | ) | (224 | ) | |||||||||
| Gross margin | — | 50 | 49 | 171 | ||||||||||||
| Operating expenses | ||||||||||||||||
| Research and development | 2,049 | 1,746 | 6,197 | 5,930 | ||||||||||||
| General and administrative | 1,322 | 1,239 | 4,247 | 4,048 | ||||||||||||
| Selling and marketing | 208 | 240 | 648 | 712 | ||||||||||||
| Total operating expenses | 3,579 | 3,225 | 11,092 | 10,690 | ||||||||||||
| Loss from operations | (3,579 | ) | (3,175 | ) | (11,043 | ) | (10,519 | ) | ||||||||
| Other income | ||||||||||||||||
| Interest income | 1 | 89 | 41 | 265 | ||||||||||||
| Total other income | 1 | 89 | 41 | 265 | ||||||||||||
| Net loss | $ | (3,578 | ) | $ | (3,086 | ) | $ | (11,002 | ) | $ | (10,254 | ) | ||||
| Net loss per common share, basic and diluted | $ | (0.19 | ) | $ | (0.19 | ) | $ | (0.61 | ) | $ | (0.66 | ) | ||||
| Weighted average number of common shares outstanding, basic and diluted | 19,337 | 16,567 | 18,028 | 15,597 | ||||||||||||
| Atomera Incorporated Reconciliation to Non-GAAP EBITDA (Unaudited) | ||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||
| Net loss (GAAP) | $ | (3,578 | ) | $ | (3,086 | ) | $ | (11,002 | ) | $ | (10,254 | ) | ||||
| Add (subtract) the following items: | ||||||||||||||||
| Interest income | (1 | ) | (89 | ) | (41 | ) | (265 | ) | ||||||||
| Depreciation and amortization | 11 | 12 | 32 | 33 | ||||||||||||
| Warrant modification | — | — | 139 | — | ||||||||||||
| Stock-based compensation | 829 | 798 | 2,224 | 2,280 | ||||||||||||
| Adjusted EBITDA (non-GAAP) | $ | (2,739 | ) | $ | (2,365 | ) | $ | (8,648 | ) | $ | (8,206 | ) | ||||
Investor Contact:
Bishop IR
Mike Bishop
(415) 894-9633
investor@atomera.com
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