Atomera Provides Third Quarter 2019 Results

Atomera Provides Third Quarter 2019 Results

October 30, 2019

LOS GATOS, Calif., Oct. 30, 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 third quarter ended Sept. 30, 2019.

Company Highlights

  • Signed integration license agreement with a new customer, a leading RF supplier
  • Achieved record quarterly revenue
  • Increased total customer engagements to 25 at 19 customers
  • Named Duy-Loan Le, 35-year veteran of Texas Instruments, to Board of Directors      

Management Commentary

“With record quarterly revenue, and a new license agreement executed with a leading RF provider, Atomera is capitalizing on recent technical advances and continuing to gain traction among the world’s largest semiconductor companies,” said Scott Bibaud, President and CEO. “We continue to grow our engagements with customers across important end markets including analog, RF and FinFET.”

Third Quarter 2019 Financial Results

During the third quarter of 2019, revenue was $254,000, compared with no revenue in the third quarter of 2018. The Company incurred a net loss of $(3.1) million, or ($0.19) per basic and diluted share, in the third quarter of 2019, compared to a net loss of $(3.4) million, or ($0.28) per basic and diluted share, for the third quarter of 2018. Adjusted EBITDA (a non-GAAP financial measure) in the third quarter of 2019 was a loss of ($2.4) million compared to an adjusted EBITDA loss of $(2.8) million in the third quarter of 2018.

The Company had $16.8 million in cash and cash equivalents as of Sept. 30, 2019, compared to $18.9 million as of Dec. 31, 2018.

The total number of shares outstanding was 17.1 million as of Sept. 30, 2019.

Third Quarter 2019 Results Conference Call and Webcast

Atomera will host a conference call today to discuss its financial results and recent progress.
Date: Wednesday, Oct. 30, 2019
Time: 2:00 p.m. PT (5:00 p.m. ET)
Phone: (844) 263-8318 (domestic); +1 (213) 358­0960 (international)
Replay: Available until Nov. 6, 2019; (855) 859­2056 (domestic); +1(404) 537­3406 (international); passcode 9661139.
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, 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 non­GAAP 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 three integration licensees, including 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
Condensed Balance Sheets
(in thousands, except per share data)

  September 30,  December 31, 
  2019  2018 
Current assets:        
Cash and cash equivalents $16,800  $18,933 
Accounts receivable  187   185 
Prepaid expenses and other current assets  179   170 
Total current assets  17,166   19,288 
Property and equipment, net  74   56 
Operating lease right-of-use asset  196    
Security deposit  13   13 
Total assets $17,449  $19,357 
Current liabilities:        
Accounts payable $205  $348 
Accrued expenses  266   224 
Accrued payroll related expenses  622   984 
Current operating lease liability  147    
Deferred revenue     55 
 Total current liabilities  1,240   1,611 
Long term operating lease liability  40    
Total liabilities  1,280   1,611 
Commitments and contingencies        
Stockholders’ equity:        
Preferred stock, $0.001 par value, authorized 2,500 shares; none issued and outstanding at September 30, 2019 and December 31, 2018      
Common stock, $0.001 par value, authorized 47,500 shares; 17,074 and 15,034 shares issued and outstanding at September 30, 2019 and December 31, 2018, respectively.  17   15 
Additional paid-in capital  148,368   139,693 
Accumulated deficit  (132,216)  (121,962)
Total stockholders’ equity  16,169   17,746 
Total liabilities and stockholders’ equity $17,449  $19,357 

Atomera Incorporated

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

  Three Months ended
September 30,
  Nine Months ended
September 30,
  2019  2018  2019  2018 
Revenue $254  $  $395  $96 
Cost of revenue  (204)      (224)  (113)
Gross margin  50      171   (17)
Operating expenses                
Research and development  1,746   1,922   5,930   5,350 
General and administrative  1,239   1,324   4,048   3,781 
Selling and marketing  240   237   712   695 
Total operating expenses  3,225   3,483   10,690   9,826 
Loss from operations  (3,175)  (3,483)  (10,519)  (9,843)
Other income                
Interest income  89   48   265   145 
 Total other income  89   48   265   145 
Net loss $(3,086) $(3,435) $(10,254) $(9,698)
Net loss per common share, basic and diluted $(0.19) $(0.28) $(0.66) $(0.80)
Weighted average number of common shares outstanding, basic and diluted  16,567   12,117     15,597   12,079 

Atomera Incorporated

Reconciliation to Non- GAAP EBITDA

  Three Months Ended
September 30
  Nine Months Ended
September 30,
  2019  2018  2019
Net loss (GAAP) $(3,086) $(3,435) $(10,254) $ (9,698)
Add (subtract) the following items:                
Interest income  (89)  (48)  (265)  (145)
Depreciation and amortization  12   8   33   24 
Stock-based compensation  798   630   2,280   1,796 
Adjusted EBITDA (non-GAAP) (2,365) (2,845)  $(8,206)  $   (8,023)

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


Source: Atomera Incorporated