Atomera (ATOM) Q2 2024 earnings summary

Executive summary

• Focused on MST® transistor enhancement technology for the $550B semiconductor market, with a high-margin IP licensing model and commercialization strategy centered on MST and MSTcad software.

• Engaged with 20 customers and 26 engagements, including 10 of the top 20 global semiconductor makers, with strong progress in power chips, SOI, memory, advanced nodes, and GaN.

• Announced MST RFSOI wafer substrates for advanced cellular communication and submitted the first CHIPS Act proposal targeting new materials and compound semiconductors.

• New VP of Marketing and Business Development hired to accelerate deal closures and revenue generation.

• Lead customer, including STMicroelectronics, progressing toward production, expected to form a revenue base starting next year.

Financial highlights

• Q2 2024 revenue was $72,000, up from $18,000 in Q1 2024 and $0 in Q2 2023, primarily from MSTcad licenses and consulting services.

• Q2 2024 GAAP net loss was $4.4 million ($0.16/share), improved from $5.2 million ($0.21/share) in Q2 2023.

• Adjusted EBITDA loss was $3.6 million in Q2 2024, compared to $4.3 million in Q2 2023.

• GAAP operating expenses fell to $4.6 million, down $730,000 year-over-year, mainly due to lower R&D and sales/marketing costs.

• Cash, equivalents, and short-term investments totaled $18.3 million at quarter-end.

Outlook and guidance

• Q3 2024 revenue expected to be approximately $20,000, primarily from MSTcad license revenue.

• 2024 non-GAAP operating expenses now forecast at $16.25–$16.75 million, lower than previous guidance.

• Management believes available working capital is sufficient to fund operations for at least the next 12 months.

• Additional hires planned in sales, marketing, and engineering to support growth and customer conversions.

• Customer pipeline remains robust, with ongoing engagements across all phases from planning to production.