Atomera (ATOM) Q4 2019 earnings summary

Executive summary

• 2019 focused on MST technology development; 15 customer engagements were in integration, with more MST wafers at customers and a larger phase 3 customer base than ever before.

• Three new technical advances targeted analog power, 5G RF and optimization of advanced-node transistors; the patent portfolio exceeded 200 granted and pending patents worldwide.

Financial highlights

• Revenue was $533,000 in 2019 vs. $246,000 in 2018; cost of revenue was $253,000 vs. $148,000.

• Operating expenses totaled $13.9 million vs. $13.2 million; operating loss was $13.6 million vs. $13.1 million.

• Net loss was $13.3 million vs. $12.9 million; net loss per share was $0.84 vs. $1.02.

• R&D expense rose 6% to $7.7 million; G&A increased 5% to $5.2 million, while selling and marketing was nearly flat at $954,000.

Outlook and guidance

• Available working capital was expected to fund current plans and obligations for at least 12 months from the March 2020 filing date; ongoing operating losses and additional capital needs remained possible.

• Planned spending included increased R&D headcount and outsourced fabrication and testing; meaningful revenue timing depended on lengthy customer qualification and licensing cycles.

• Semiconductor customer qualification typically takes 18–36 months or longer; commercial royalties depend on successful high-volume integration and manufacturing and distribution licenses.