Atomera(US:ATOM)2022-11-10 01:25Financial Data and Key Metrics Changes - The GAAP net loss for Q3 2022 was $4.6 million or $0.20 per share, slightly up from a net loss of $4.5 million in Q2 2022, which was also $0.20 per share [19] - GAAP operating expenses in Q3 2022 were $4.7 million, an increase of approximately $210,000 over Q2 2022 [20] - The cash balance at September 30, 2022, was $23.3 million, compared to $21.8 million at the end of Q2 2022, reflecting an increase of $1.5 million [21] Business Line Data and Key Metrics Changes - The company continues to see strong interest in its two most mature MST solutions, MST-SP and MST for RF-SOI, with growing customer engagement [12] - Development activity by customers is increasing, leading to additional wafer runs and interest from new customers seeking competitive advantages [8] Market Data and Key Metrics Changes - The semiconductor industry is experiencing a softening of demand, leading to forecast reductions and some reductions in projected capital expenditures [7] - Despite the slowdown, there is still a plentiful allocation of CapEx budgets to support the acquisition of new technologies and equipment [8] Company Strategy and Development Direction - The company is focused on driving customers to adopt MST technology, particularly those who are further along in their development [8] - Atomera aims to leverage the current industry environment to increase licensing activity and move towards commercialization [18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the current industry cycle, believing it provides a favorable environment for Atomera to grow and adopt its technology [18] - The company is confident that the slowdown in the semiconductor industry will lead to increased interest in cost-reducing technologies like MST [44] Other Important Information - The company is not providing revenue guidance beyond the current quarter, consistent with past practices, and expects Q4 revenue to be zero [22] - The company has a diverse array of applications where customers need innovative breakthroughs, indicating a strong engagement pipeline [22] Q&A Session Summary Question: Expansion of JDA customer relationships - Management indicated that while they are not discussing expansion into different business units yet, they are working closely with existing customers and hope to reach license agreements soon [28] Question: Customer utilization and prioritization of R&D wafers - Management noted that customers are now able to plan new wafer runs without issues, indicating a positive shift in customer engagement [30] Question: Confidence in licensing gate-all-around technologies - Management expressed optimism about intersecting with future technology developments, believing their technology will be applicable even if not immediately adopted [34] Question: Exposure to the China market - Management stated that they currently have no significant exposure to China and are cautious due to IP concerns, but see potential opportunities if the trade situation improves [40] Question: Customer attitudes towards spending in 2023 - Management remains optimistic about customer spending, noting that while some have scaled back forecasts, they are still spending significantly more than in previous years [49] Question: Visibility on future revenue - Management acknowledged the frustration with zero revenue forecasts but indicated that several customers are close to obtaining manufacturing licenses, which would provide more visibility [52]