Atomera(US:ATOM)2024-04-26 03:07Financial Data and Key Metrics Changes - The GAAP net loss for Q1 2024 was $4.8 million or $0.19 per share, compared to a net loss of $5 million or $0.21 per share in Q1 2023 [22] - Revenues were $18,000 in Q1 2024, a decrease from $550,000 in Q4 2023 and an increase from $0 in Q1 2023 [22][26] - GAAP operating expenses were $5 million in Q1 2024, a decrease of approximately $148,000 from $5.2 million in Q1 2023 [22] - Non-GAAP net loss in Q1 2024 was $4 million, compared to a loss of $4.2 million in Q1 2023 [24] Business Line Data and Key Metrics Changes - The first announced customer, STMicroelectronics, is incorporating MST into the design of next-generation smart power products, with ST reporting $2.2 billion in APMS revenue for Q1 2024 [9] - A historically high number of proposals for licenses and JDAs were submitted, indicating increased customer interest [10] - The foundry licensee is interested in incorporating MST into their next-generation process nodes [12] Market Data and Key Metrics Changes - The semiconductor industry is expected to see modest growth, particularly in AI and DRAM sectors, while automotive markets are softening [7] - The GaN market is growing rapidly, with a reported 41% growth in 2023 and a projected CAGR of 46% over the next five years [17] Company Strategy and Development Direction - The company aims to help STMicroelectronics achieve high performance with MST and expedite production [9] - Atomera is exploring new applications in the compound semiconductor sector, including silicon carbide and gallium nitride [16] - The focus remains on converting proposals into licenses to establish a diversified technology leadership in the semiconductor industry [20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the semiconductor market's growth and the company's positioning to benefit from increased customer interest [8] - The company is confident in its ability to announce license deals that will solidify its business potential [28] - Management acknowledged the frustration of investors regarding the lack of immediate business announcements despite ongoing efforts [14] Other Important Information - The company has been evaluating potential R&D foundry partners and plans to recruit new marketing talent [20] - The balance of cash, cash equivalents, and short-term investments was $19.3 million as of March 31, 2024 [24] Q&A Session Summary Question: Significance of record number of proposals - Management clarified that proposals are generated only when customers express interest, indicating strong demand [30] Question: Timing for PDK from STMicro - Management confirmed they have visibility into STMicro's development process but cannot disclose specific timelines [34] Question: Outcome expectations for MST CAD license - The MST CAD license is a first step towards a manufacturing license, with expectations for continued engagement beyond the initial contract [39] Question: Engagement with JDA partners - Management expressed frustration over delays in decision-making from JDA partners despite meeting all specifications [41][42] Question: Replacement for TSI - Management indicated that discussions with potential replacements for TSI are progressing well, with multiple options available [53] Question: Business model for GaN market - The company is considering various approaches for entering the GaN market, including licensing and potential manufacturing [64]