Atomera(ATOM) - 2024 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Revenue for 2024 was $135,000, consisting of MST CAD licensing and NRE fees, compared to$550,000 in Q4 2023 [39] - GAAP net loss for 2024 was $18.4 million or$0.68 per share, an improvement from a net loss of $19.8 million or$0.80 per share in 2023 [39] - GAAP operating expenses decreased to $19.3 million in 2024 from$21.2 million in 2023, primarily due to a 1.5 million reduction in R&D expenses [39][40] - Cash, cash equivalents, and short-term investments increased to 26.8 million at the end of 2024 from $19.5 million at the end of 2023 [41] Business Line Data and Key Metrics Changes - The company reported a decline in sales and marketing expenses by$546,000 due to lower headcount costs, while G&A expenses increased by $191,000 due to higher payroll and legal costs [39] - Non-GAAP net loss for 2024 was$15.4 million, down from $16.6 million in 2023, reflecting a decrease in non-GAAP operating expenses [41] Market Data and Key Metrics Changes - The market for gate-all-around architecture is valued at approximately$150 billion in 2023, with significant opportunities in advanced logic IDMs and foundries [15] - The memory segment is projected to be worth over $125 billion in 2024, with a focus on low production costs [19] - The power semiconductor market is expected to exceed$52 billion in 2024, driven by AI and vehicle electrification [23] Company Strategy and Development Direction - The company aims to solidify its value proposition in four major high-growth semiconductor markets while exploring new opportunities for faster revenue generation [33] - The focus on gate-all-around and memory technologies aligns with the industry's push towards AI infrastructure [36] - The company is enhancing its R&D pipeline, with over 30 granted and pending patents in 2024 [34] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential for MST technology to drive performance improvements in semiconductors, particularly in AI applications [15][36] - The company is hopeful for the resumption of discussions with a transformative customer, emphasizing the value of their technology [12][14] - Management acknowledged the challenges in negotiations but remains confident in the long-term adoption of their technology [52][54] Other Important Information - The company plans to announce when it enters process qualification with STMicro, which will lead to recognizing license revenue [26] - The company raised approximately $21.3 million through the sale of shares under its ATM facility in 2024 [42] Q&A Session Summary Question: Dynamics of the transformative opportunity - Management confirmed that the sticking points in negotiations are not solely pricing but involve multiple decision-makers within the customer organization [50][52] Question: Progress with leading-edge logic and memory - Management noted increased engagement with advanced node and memory customers, highlighting the industry's shift towards gate-all-around technology [58][60] Question: Update on GaN progress - Management indicated that GaN is a new area with significant interest, and they expect to have electrical results soon that could lead to customer engagements [66][70] Question: STMicro process qualification timeline - Management explained that there has been a delay in the process due to logistics issues, but they are optimistic about moving forward soon [76][78] Question: Current stage of collaboration with DRAM customers - Management confirmed ongoing engagement with multiple memory customers, emphasizing the importance of high bandwidth memory for AI infrastructures [111][112]