Atomera Provides Fourth Quarter and Fiscal 2019 Results

Atomera Provides Fourth Quarter and Fiscal 2019 Results

February 12, 2020

LOS GATOS, Calif., Feb. 12, 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 fourth quarter and fiscal year ended December 31, 2019.

Company Highlights

  • Record amount of customer activity as measured by wafer shipments and phase 3 engagements
  • Strong technical results in each of Atomera’s focus areas
  • Strong cash position

Management Commentary

“Atomera has exited 2019 with very strong momentum, with more customer activity than at any time in our history,” said Scott Bibaud, President and CEO. “Our recent technology and customer advances give us confidence to increase investment in our business to accelerate our progress toward additional licenses and revenue growth.”

Financial Results

During the fourth quarter of 2019, revenue was $138,000, compared with $150,000 in the fourth quarter of 2018.  The Company incurred a net loss of $(3.0) million, or ($0.18) per basic and diluted share in the fourth quarter of 2019, compared to a net loss of $(3.2) million, or ($0.22) per basic and diluted share, for the fourth quarter of 2018.  Adjusted EBITDA (a non-GAAP financial measure) in the fourth quarter of 2019 was a loss of $(2.4) million compared to an adjusted EBITDA loss of $(2.7) million in the fourth quarter of 2018.

For fiscal year 2019, revenue was $533,000, compared with $246,000 in fiscal 2018.  Net loss was $(13.3) million, or ($0.84) per basic and diluted share for fiscal 2019, compared to $(12.9) million, or ($1.02) per basic and diluted share in fiscal 2018. Adjusted EBITDA for fiscal 2019 was a loss of $(10.7) million compared to an adjusted EBITDA loss of $(10.7) million in fiscal 2018.

The Company had $14.9 million in cash and cash equivalents as of December 31, 2019, compared to $18.9 million as of December 31, 2018.

The total number of shares outstanding was 17.1 million as of December 31, 2019.

Fourth Quarter and Fiscal Year 2019 Results Conference Call and Webcast

Atomera will host a conference call today to discuss its financial results and recent progress.
Date: Wednesday, Feb. 12, 2020
Time: 2:00 p.m. PT (5:00 p.m. ET)
Phone: (844) 263-8318 (domestic); +1 (213) 358­0960 (international)
Replay: Available until Feb. 19, 2020; (855) 859­2056 (domestic); +1(404) 537­3406 (international); passcode 8660938
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, depreciation, amortization and stock­based compensation. Our definition of adjusted EBITDA may not be comparable to the definitions of similarly­titled 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 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, 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 and STM Microelectronics, 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) our ability to protect our proprietary technology, trade secrets and know­how and (5) those other risks disclosed in the section "Risk Factors" included in our Prospectus Supplement filed with the SEC on May 30, 2019. 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.

-- Financial Tables Follow --

Atomera Incorporated
Balance Sheets
(in thousands, except per share data)

  December 31,  December 31, 
  2019  2018 
Current assets:        
Cash and cash equivalents $14,871  $18,933 
Accounts receivable     185 
Prepaid expenses and other current assets  132   170 
Total current assets  15,003   19,288 
Property and equipment, net  63   56 
Operating lease right-of-use asset  161    
Security deposit  13   13 
Total assets $15,240  $19,357 
Current liabilities:        
Accounts payable $315  $348 
Accrued expenses  145   224 
Accrued payroll related expenses  819   984 
Current operating lease liability  152    
Deferred revenue  37   55 
Total liabilities  1,468   1,611 
Commitments and contingencies        
Stockholders’ equity:        
Preferred stock, $0.001 par value, authorized 2,500 shares; none issued and outstanding at December 31, 2019 and December 31, 2018      
Common stock, $0.001 par value, authorized 47,500 shares; 17,117 and 15,034 shares issued and outstanding at December 31, 2019 and December 31, 2018, respectively.  17   15 
Additional paid-in capital  149,017   139,693 
Accumulated deficit  (135,262)  (121,962)
Total stockholders’ equity  13,772   17,746 
Total liabilities and stockholders’ equity $15,240  $19,357 

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

  Three Months Ended
December 31,
  Year Ended
December 31,
  2019  2018  2019  2018 
  (Unaudited)  (Unaudited)  (Unaudited)    
Revenue $138  $150  $533  $246 
Cost of revenue  (29)  (35)  (253)  (148)
Gross margin  109   115   280   98 
Operating expenses                
Research and development  1,818   1,968   7,748   7,318 
General and administrative  1,155   1,175   5,203   4,956 
Selling and marketing  242   262   954   957 
Total operating expenses  3,215   3,405   13,905   13,231 
Loss from operations  (3,106)  (3,290)  (13,625)  (13,133)
Other income                
Interest income  60   91   325   236 
Total other income  60   91   325   236 
Net loss $(3,046) $(3,199) $(13,300) $(12,897)
Net loss per common share, basic and diluted $(0.18) $(0.22) $(0.84) $(1.02)
Weighted average number of common shares outstanding, basic and diluted  16,606   14,364     15,852   12,655 

Atomera Incorporated
Reconciliation to Non-GAAP EBITDA

  Three Months Ended
December 31,
  Year Ended
December 31,
  2019  2018  2019   2018 
Net loss (GAAP) $(3,046) $(3,199) $(13,300) $(12,897)
Add (subtract) the following items:               
Interest income  (60)  (91)  (325)  (236)
Depreciation and amortization  11   9   44   33 
Stock-based compensation  649   629   2,929   2,425 
Adjusted EBITDA (non-GAAP) (2,446) (2,652)  $(10,652) $  (10,675)

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


Source: Atomera Incorporated