Atomera Provides Second Quarter 2018 Results

Atomera Provides Second Quarter 2018 Results

August 8, 2018

LOS GATOS, Calif., Aug. 08, 2018 (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 second quarter ended June 30, 2018.

Company Highlights

  • Grew the number of engagements in the Integration Phase to eleven
  • Recognized engineering services revenue
  • Working with 4 customers on multiple processes
  • 18 engagements underway with 14 customers
  • Announced results showing MST technology significantly improves High-K/Metal gate transistors

Management Commentary

“Atomera has deepened and extended its relationships with significant semiconductor fabs in the second quarter toward an end goal of licensing and royalty agreements,” commented Scott Bibaud, President and CEO.  “We continue to demonstrate the efficacy of MST and further engage in planning and integration with our prospective customers.” 

Second Quarter 2018 Financial Results

During the second quarter of 2018, the Company incurred a net loss of $3.2 million, or ($0.26) per basic and diluted share, compared to a net loss of $3.6 million, or ($0.31) per basic and diluted share, for the second quarter of 2017.  Adjusted EBITDA (a non-GAAP financial measure) in the second quarter of 2018 was a loss of $2.6 million compared to an adjusted EBITDA loss of $2.2 million in the second quarter of 2017.

The Company had $12.3 million in cash and cash equivalents as of June 30, 2018, compared to $14.5 million as of March 31, 2018 and $17.4 million as of December 31, 2017.

The total number of shares outstanding was 12,408,525 as of June 30, 2018.

2018 Second Quarter Results Conference Call and Webcast

Atomera will host a conference call today to discuss its financial results and recent progress.

Date: Wednesday, Aug. 8, 2018

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

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

Replay: Available until Aug. 15, 2018; 855­859­2056 (domestic); +1(404) 537­3406 (international); passcode 3855109.

Webcast: Accessible at

Note about Non­GAAP 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 non­GAAP financial measure. Adjusted EBITDA is determined by taking net loss and eliminating the impacts of interest, taxes, depreciation, amortization, stock­based 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 similarly­titled measures used by other companies. We believe that this non­GAAP 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 nano­scaling technologies already in the semiconductor industry roadmap.

Safe Harbor

This press release contains forward­looking 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 forward­looking 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 we have not yet commenced principal revenue producing operations or entered into a definitive agreement with regard to the licensing or commercialization of our MST technology, thus subjecting us to all of the risks inherent in a pre­revenue enterprise; (2) 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; (3) our ability to protect our proprietary technology, trade secrets and know­how and (4) those other risks disclosed in the section "Risk Factors" included in our Annual Report on Form 10-K for the year ended December 31, 2017 and filed with the SEC on March 6, 2018. We caution readers not to place undue reliance on any forward­looking 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.

Atomera Incorporated
Condensed Balance Sheets
(in thousands, except per share data)
  June 30,  December 31, 
  2018  2017 
Current assets:        
Cash and cash equivalents $12,254  $17,369 
Accounts receivable  96   110 
Prepaid expenses and other current assets  296   248 
Total current assets  12,646   17,727 
Property and equipment, net  65   67 
Security deposit  13   13 
Total assets $12,724  $17,807 
Current liabilities:        
Accounts payable $339  $198 
Accrued expenses  285   239 
Accrued payroll related expenses  338   512 
Total liabilities  962   949 
Commitments and contingencies        
Stockholders’ equity:        
Preferred stock, $0.001 par value, authorized 2,500 shares; none issued and
outstanding at June 30, 2018 and December 31, 2017
Common stock, $0.001 par value, authorized 47,500 shares; 12,408 and 12,161 shares
issued and outstanding at June 30, 2018 and December 31, 2017, respectively.
  12   12 
Additional paid-in capital  127,078   125,911 
Accumulated deficit  (115,328)  (109,065)
Total stockholders’ equity  11,762   16,858 
Total liabilities and stockholders’ equity $12,724  $17,807 

Atomera Incorporated
Condensed Statements of Operations
(in thousands, except per share data)
  Three Months ended
June 30,
  Six Months ended
June 30,
  2018  2017  2018 2017
Revenue $96  $  $96  $ 
Cost of revenue  (113)     (113)   
Gross margin  (17)     (17)   
Operating expenses                
Research and development  1,738   1,444   3,428   2,900 
General and administrative  1,254   1,712   2,457   3,315 
Selling and marketing  212   508   458   1,017 
Total operating expenses  3,204   3,664   6,343   7,232 
Loss from operations  (3,221)  (3,664)  (6,360)  (7,232)
Other income/(expense)                
Interest income  50   36   97   64 
Other expense     (2)     (6 )
Total other income/(expense), net  50   34   97   58 
Net loss $(3,171) $(3,630) $(6,263) $(7,174)
Net loss per common share, basic and diluted $(0.26) $(0.31) $(0.52) $(0.62)
Weighted average number of common shares outstanding, basic and diluted  12,078   11,616   12,060   11,594 

Atomera Incorporated
Reconciliation to Non- GAAP EBITDA
  Three Months ended
June 30,
 Six Months ended
June 30,
  2018  2017  2018 2017 
Net loss (GAAP) $(3,171) $(3,630) $(6,263) $(7,174)
Add (subtract) the following items:            
Interest income (50) (36) (97) (64)
Depreciation and amortization 8  4  16  9 
Stock-based compensation 621  1,428  1,166  2,638 
Adjusted EBITDA (non-GAAP) $(2,592) $(2,239) $ (5,178) $(4,591)

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

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Source: Atomera Incorporated