Atomera(US:ATOM)2022-04-28 00:35Financial Data and Key Metrics Changes - The GAAP net loss for Q1 2022 was $4.1 million or $0.18 per share, compared to a net loss of $3.6 million or $0.16 per share in Q1 2021 [20] - Revenue in Q1 2022 was $375,000, down from $400,000 in Q1 2021, with no revenue recognized in Q4 2021 [20] - GAAP operating expenses in Q1 2022 were $4.3 million, compared to $4 million in Q1 2021 [20] - The cash balance at March 31, 2022, was $24.5 million, down from $28.7 million at the end of 2021 [21] Business Line Data and Key Metrics Changes - The company has 19 customers and 25 engagements in its pipeline, including 2 joint development agreements (JDAs) and 5 paid licenses [11] - The first JDA resulted in a milestone payment recognized as revenue in Q1 2022, while the second JDA is expected to accelerate the path to commercialization [22] Market Data and Key Metrics Changes - The semiconductor industry is experiencing a 21% forecast growth in 200-millimeter fab capacity to address chip supply shortfalls [16] - Industry-wide capital expenditures are forecast to grow by 24% in 2022, primarily in 300-millimeter wafer fabs [17] Company Strategy and Development Direction - The company aims to ship MST-based products to generate royalty payments, with a focus on moving customers towards commercialization quickly [7][12] - The company is expanding its total addressable market (TAM) as it works with more customers and unveils new capabilities [24] Management's Comments on Operating Environment and Future Outlook - Management believes that the current semiconductor industry conditions present exceptional opportunities for the company, with both near and long-term structural changes favoring MST adoption [18] - The company is optimistic about the momentum gained from recent JDAs and the favorable macro environment for MST technology [24] Other Important Information - The company has developed MSTcad simulation software in collaboration with Synopsys to help industry players understand MST integration [13] - The company is focusing on RF-SOI technology, which is critical for 5G cellular applications, and sees significant commercial potential in this area [15] Q&A Session Summary Question: Can you describe the differences between the first and second JDAs? - The second JDA is focused on a specific business unit, allowing for potentially faster movement to production compared to the first JDA, which went through a central engineering group [27][28] Question: What is the timeline for the second JDA? - The timeline for the second JDA is expected to be faster than the first, which took nearly a year to start [70] Question: Are royalty rates already negotiated for the second JDA? - Final royalty rates have not been negotiated yet, but discussions about expected ranges have occurred [72][73] Question: What is the status of early licensees? - Most licensees are progressing towards getting technology into production, with one licensee currently facing operational challenges due to a facility issue [56] Question: How is the company addressing hiring challenges? - The company is focused on adding engineering headcount to meet customer demand, with hiring efforts expected to ramp up in the second half of the year [62][66]