Atomera(US:ATOM)2021-02-11 04:45Financial Data and Key Metrics Changes - The GAAP net loss for the year ended December 31, 2020, was $14.9 million, or $0.79 per share, compared to a net loss of $13.3 million, or $0.84 per share in 2019, indicating a larger net loss due to higher operating expenses and lower revenue [24][25] - Revenue in 2020 was $62,000, a significant decrease from $533,000 in 2019 [24] - GAAP operating expenses in 2020 were $15 million, an increase of $1.1 million from $13.9 million in 2019 [24][25] - Cash balance at December 31, 2020, was $37.9 million, compared to $14.9 million at the end of 2019 [28] Business Line Data and Key Metrics Changes - The company has 25 engagements with 19 customers, with several having multiple engagements underway [8] - A newly completed Joint Development Agreement (JDA) with a major semiconductor company marks a critical step towards commercializing MST [10][13] - The release of MST CAD version 1.0 modeling software has received positive feedback and is expected to accelerate technology adoption [14][16] Market Data and Key Metrics Changes - The semiconductor industry is experiencing a turnaround, with manufacturing lead times increasing due to capacity constraints, but Atomera's customer base remains active in R&D wafer runs [7][8] - The rollout of 5G cellular technology is creating new market opportunities for MST SP and RF SOI technologies [17] Company Strategy and Development Direction - Atomera aims to move existing customers through the phases towards production while adding new customers as a secondary objective [8] - The company believes that joint development formats with customers will lead to more efficient results and faster adoption of MST technology [11][12] - The focus on expanding the patent portfolio is critical for the company's licensing business, with a 17% increase in patent count year-over-year [22] Management's Comments on Operating Environment and Future Outlook - Management is optimistic about 2021 being a breakout year for Atomera, with strong customer demand and a solid technology position [23][31] - The company anticipates that Q1 revenue will be $400,000 based on payments under the JDA, with potential for additional revenue from future milestones [29][57] Other Important Information - The company has made significant progress in building infrastructure, including a 300 millimeter epi deposition facility, which is expected to enhance development capabilities [21][19] - The JDA includes a manufacturing license, which will generate revenue for Atomera [29] Q&A Session Summary Question: Impact of semiconductor shortages on customer licensing - Management indicated that customers have been able to start new wafer runs successfully, suggesting that Atomera's technology remains a priority for them during shortages [34] Question: Speeding time to market for customers - Management noted that while immediate impacts may be limited, MST technology can help improve performance and capacity in the long term [37][38] Question: Progress of other licensees - One licensee faced setbacks due to a fire, but the others are progressing well with regular meetings [42] Question: Delays in epi tool acceptance - Delays are attributed to the complexity of setting up a lab that supports both 200 millimeter and 300 millimeter wafers, but engineers have been working on the tool in the meantime [44][45] Question: Future JDA opportunities - Management expressed optimism about several customers but refrained from forecasting specific timelines for new JDAs or licenses [50][55]