Atomera Provides Fourth Quarter and Annual 2018 Results

Atomera Provides Fourth Quarter and Annual 2018 Results

February 12, 2019

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.

Company Highlights

  • 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

Management Commentary

“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.

Date: Tuesday, Feb. 12, 2019

Time: 2:00 p.m. PT (5:00 p.m. ET)

Phone: (844) 263-8318 (domestic); +1 (213) 358-­0960 (international)

Replay: Available until Feb. 19, 2018; (855) ­859-2056 (domestic); +1 (404) 537­-3406 (international); passcode 3199098.

Webcast: Accessible at

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, 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.

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 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)

  December 31,  December 31, 
  2018  2017 
Current assets:        
Cash and cash equivalents $18,933  $17,369 
Accounts receivable  185   110 
Prepaid expenses and other current assets  170   248 
Total current assets  19,288   17,727 
Property and equipment, net  56   67 
Security deposit  13   13 
Total assets $19,357  $17,807 
Current liabilities:        
Accounts payable $348  $198 
Accrued expenses  224   239 
Accrued payroll related expenses  984   512 
Deferred revenue  55    
Total liabilities  1,611   949 
Commitments and contingencies        
Stockholders’ equity:        
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,
  15   12 
Additional paid-in capital  139,693   125,911 
Accumulated deficit  (121,962)  (109,065)
Total stockholders’ equity  17,746   16,858 
Total liabilities and stockholders’ equity $19,357  $17,807 

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

  Three Months Ended
December 31,
  Year Ended
December 31,
  2018  2017  2018  2017 
Revenue $150  $110  $246  $110 
Cost of revenue  (35)  (39)  (148)  (39)
Gross margin  115   71   98   71 
Operating expenses                
Research and development  1,968   1,324   7,318   5,826 
General and administrative  1,175   1,107   4,956   5,796 
Selling and marketing  262   292   957   1,659 
Total operating expenses  3,405   2,723   13,231   13,281 
Loss from operations  (3,290)  (2,652)  (13,133)  (13,210)
Other income/(expense)                
Interest income  91   42   236   148 
Other expense           (6)
Total other income/(expense), net  91   42   236   142 
Net loss $(3,199) $(2,610) $(12,897)  (13,068)
Net loss per common share, basic and diluted $(0.22) $(0.22) $(1.02)  $(1.11)
Weighted average number of common shares
outstanding, basic and diluted
  14,364   12,036   12,655   11,773 

Atomera Incorporated
Reconciliation to Non- GAAP EBITDA

  Three Months Ended
December 31,
  Year Ended
December 31,
  2018  2017  2018   2017  
Net loss (GAAP) $(3,199) $(2,610) $$(12,897) $(13,068) 
Add (subtract) the following items:                 
Interest income  (91)  (42)  (236)   (148)
Depreciation and amortization  9   6   33    19 
Stock-based compensation  629   524   2,425    4,078 
Adjusted EBITDA (non-GAAP) (2,652) (2,122)  $(10,675)  $  (9,119)

Investor Contact:
Bishop IR
Mike Bishop
(415) 894-9633


Source: Atomera Incorporated