Atomera Provides Fourth Quarter and Annual 2018 Results
LOS GATOS, Calif., Feb. 12, 2019 (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 fourth quarter and fiscal year ended December 31, 2018.
Recognized engineering services revenue as well as our first license revenue
Moved two customers into phase three, bringing the number of engagements in this critical phase to 13, with a total of 21 engagements at 17 customers
Strengthened balance sheet by raising $11.4 million in net proceeds though a public offering of common stock
“Atomera expanded its pipeline and recognized both license and engineering services revenue in the quarter,” said Scott Bibaud, President and CEO. “We are aggressively taking the necessary steps to implement MST into semiconductor foundries and IDMs globally, and our progress is evidence of our commitment to grow revenue and capture the opportunity. We are seeing excellent technical results with our internal wafer runs as well as increased traction with our customers, which we believe will lead to additional licenses and, more importantly, progress by our customers to commercialize MST.”
Fourth Quarter and Fiscal Year 2018 Financial Results
During the fourth quarter of 2018, revenue was $150,000, compared with $110,000 in the fourth quarter of 2017. The Company incurred a net loss of $(3.2) million, or ($0.22) per basic and diluted share, compared to a net loss of $2.6 million, or ($0.22) per basic and diluted share, for the fourth quarter of 2017. Adjusted EBITDA (a non-GAAP financial measure) in the fourth quarter of 2018 was a loss of $(2.7) million compared to an adjusted EBITDA loss of $(2.1) million in the fourth quarter of 2017.
For fiscal year 2018, revenue was $246,000, compared with $110,000 in fiscal 2017. Net loss was $(12.9) million, or ($1.02) per basic and diluted share, for fiscal 2018, compared to $(13.1) million, or ($1.11) per basic and diluted share in fiscal 2017. Adjusted EBITDA for fiscal 2018 was a loss of $(10.7) million compared to an adjusted EBITDA loss of $(9.1) million in fiscal 2017.
The Company had $18.9 million in cash and cash equivalents as of December 31, 2018, compared to $17.4 million as of December 31, 2017.
The total number of shares outstanding was 15.0 million as of December 31, 2018.
2018 Fourth Quarter and Fiscal Year 2018 Results Conference Call and Webcast
Atomera will host a conference call today to discuss its financial results and recent progress.
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, taxes, depreciation, amortization, stock-based compensation, the change in fair value of derivative liabilities, and the gain on the extinguishment of debt. 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 its 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.
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 a pre-revenue enterprise; (2) risks related to our ability to advance the licensing arrangements with our initial integration licensees, Asahi Kasei Microdevices and STM Microelectronics, to royalty-based manufacturing and distribution licenses; (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) our ability to protect our proprietary technology, trade secrets and know-how and (5) those other risks disclosed in the section "Risk Factors" included in our Prospectus Supplement Filed with the SEC pursuant to Rule 424(b)(5) on October 11, 2018. 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)
Cash and cash equivalents
Prepaid expenses and other current assets
Total current assets
Property and equipment, net
LIABILITIES AND STOCKHOLDERS’ EQUITY
Accrued payroll related expenses
Commitments and contingencies
Preferred stock, $0.001 par value, authorized 2,500 shares; none issued and outstanding at December 31, 2018 and December 31, 2017
Common stock, $0.001 par value, authorized 47,500 shares; 15,034 and 12,161 shares issued and outstanding at December 31, 2018 and December 31, 2017, respectively.
Additional paid-in capital
Total stockholders’ equity
Total liabilities and stockholders’ equity
Atomera Incorporated Condensed Statements of Operations (in thousands, except per share data)
Three Months Ended December 31,
Year Ended December 31,
Cost of revenue
Research and development
General and administrative
Selling and marketing
Total operating expenses
Loss from operations
Total other income/(expense), net
Net loss per common share, basic and diluted
Weighted average number of common shares outstanding, basic and diluted
Atomera Incorporated Reconciliation to Non- GAAP EBITDA