Atomera(US:ATOM)2021-10-29 02:31Financial Data and Key Metrics Changes - The GAAP net loss for Q3 2021 was $4.2 million, or $0.19 per share, compared to a net loss of $3.6 million, also $0.19 per share, in Q3 2020 [22][23] - Sequentially, the GAAP net loss increased from $3.7 million in Q2 2021 to $4.2 million in Q3 2021, reflecting a $424,000 increase in operating expenses [23] - Non-GAAP net loss in Q3 2021 was $3.4 million, up from $2.7 million in Q3 2020, indicating a $606,000 increase in non-GAAP operating expenses [26] Business Line Data and Key Metrics Changes - The company reported an increase in R&D expenses to $2.2 million in Q3 2021, up by $163,000 from Q2 2021, primarily due to amortization expenses related to new tools [26] - General and administrative expenses increased by $315,000 year-over-year, mainly due to higher legal expenses for patent filings [25] Market Data and Key Metrics Changes - The total IC market is forecasted to grow by 24% in 2021, indicating strong demand and investment in semiconductor technologies [9] - Industry CapEx growth in the next five years is expected to be 60% higher than the previous five years, driven by significant investments from major players [9] Company Strategy and Development Direction - The company aims to leverage the current semiconductor supply shortages to promote its MST technology, which is expected to be adopted more readily as companies invest in new fabs [10][12] - Atomera is focusing on expanding its customer base through joint development agreements (JDAs) and enhancing its patent portfolio, which has grown to 298 patents issued and pending worldwide [20][21] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the semiconductor industry's investment cycle, which is expected to create opportunities for MST adoption [21] - The company noted that customer engagement has been positive, with many customers eager to start work with MST technology despite current supply constraints [12][13] Other Important Information - The company has finalized the acceptance of a new Epi deposition tool, which will enhance its capabilities in delivering MST wafers to customers [19] - Cash balance as of September 30, 2021, was $31.8 million, down from $34.3 million at the end of Q2 2021, reflecting cash used in operating activities [27] Q&A Session Summary Question: What is driving the expanded pipeline in JDAs? - The expansion is driven by interest in key technologies like RF-SOI and MST SP, with customers wanting to start work ahead of the capacity crunch ending [32][33] Question: How do you characterize the phases of new JDAs? - There is a mix of customers in different phases, with some in Phase 3 and others in Phase 1 [35][36] Question: What is the expected timeline for moving to Phase 5? - The timeline is difficult to predict, but once the JDA is completed, it could take about nine months to move into production [57] Question: How does the fab build-out impact Atomera? - The build-out presents opportunities for Atomera as companies will need to differentiate and maximize capacity utilization, which MST can help achieve [50][52] Question: What is the motivation for hiring a PR firm? - The PR firm is intended to expand outreach beyond foundries and IDMs to fabless players, enhancing visibility in the market [53][54] Question: How long is the anticipated royalty stream? - The company expects to negotiate royalty streams that could last for eight to ten years or more, similar to industry practices [63]