Atomera(US:ATOM)2020-10-31 17:36Financial Data and Key Metrics Changes - The GAAP net loss for Q3 2020 was $3.6 million or $0.19 per share, compared to a loss of $3.1 million or $0.19 per share in Q3 2019 [24] - The increase in net loss was attributed to a rise in GAAP operating expenses by $354,000 and $50,000 less in gross margin, with no revenue recognized in Q3 2020 compared to $254,000 in Q3 2019 [24][25] - Non-GAAP adjusted EBITDA for Q3 2020 was a loss of $2.7 million, compared to a loss of $2.4 million in Q3 2019 [25] - Cash balance at September 30, 2020, was $25.3 million, up from $18 million on June 30 [27] Business Line Data and Key Metrics Changes - The company maintained 25 engagements with the same number of customers as the previous quarter, indicating stability in customer relationships despite the pandemic [9] - The company is focusing on joint development agreements (JDAs) with several large companies, although negotiations have been slowed by COVID-19 [11] Market Data and Key Metrics Changes - The semiconductor industry has seen an acceleration in R&D spending, with prospective customers financially capable of more expensive projects [8] - The company is experiencing challenges in acquiring new customers due to the inability to hold in-person meetings, which have historically been effective for customer acquisition [10] Company Strategy and Development Direction - The company is prioritizing engagements that have a better chance of advancing into Phase 4 over adding new customers into Phase 1 [10] - The introduction of MST CAD version 1.0 to beta customers is a significant technological achievement, aimed at optimizing semiconductor processes and reducing development cycles [15] - The company is excited about the opportunities presented by a new 300 millimeter Epi deposition tool, which is expected to enhance customer integration and accelerate time to revenue [19][20] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about customer engagement and the potential for licensing opportunities, despite the challenges posed by COVID-19 [34] - The company is well-positioned for growth, with a strong balance sheet and ongoing negotiations for JDAs that could lead to revenue recognition [23][29] Other Important Information - The company has received net proceeds of $8.5 million from an At-The-Market (ATM) equity program during Q3, totaling $13.5 million to date [28] - A fire at one of the company's partner's fabs may impact the completion schedule for integration wafer runs, but the extent of the impact is still uncertain [36] Q&A Session Summary Question: Cash generation from the ATM program - The cash generation from the ATM program was $8.5 million in Q3 and $13.5 million total to date [32] Question: Visibility on customer engagements - The company continues to move forward with customers in the pipeline, with delays primarily attributed to COVID-19 and normal operational timelines [34] Question: Impact of the fire at a partner's fab - The fire occurred in a facility with multiple fabs involved with the company, and the impact on scheduled wafers is still being assessed [36]