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Atomera Provides Third Quarter 2019 Results

LOS GATOS, Calif., Oct. 30, 2019 (GLOBE NEWSWIRE) -- Atomera Incorporated (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 www.atomera.com

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  
    (Unaudited)        
ASSETS                
                 
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  
                 
LIABILITIES AND STOCKHOLDERS’ EQUITY                
                 
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
(Unaudited)
(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
(Unaudited)

    Three Months Ended
September 30
    Nine Months Ended
September 30,
 
    2019     2018     2019
      2018  
                                 
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
investor@atomera.com